14/11 : Five Asian Companies Make It To The List of Top 20 Companies for Leaders StudyGlobal Leadership Study Finds Leadership Development Embedded into Culture of Top Companies
ASIA PACIFIC and China—India’s Hindustan Unilever, Infosys Technologies, ICICI Bank, WIPRO and Australia’s ANZ Bank have made it to the 2007 list of Global Top Companies for Leaders, as announced today. Sponsored by global human resources services company Hewitt Associates, in partnership with The RBL Group, a firm dedicated to helping clients increase quality of leadership and deliver the strategic HR agenda, and FORTUNE magazine, the Global Top Companies for Leaders were selected and ranked by an esteemed panel of judges based on criteria including leadership practices, company reputation, leadership culture and values and business performance. When comparing the Global Top Companies with more than 530 other companies around the world, Hewitt found one overarching characteristic that set them apart from the rest–Global Top Companies make leadership a critical part of the company’s organizational fabric. Specifically, the study found that leadership practices at Global Top Companies are an inherent part of the culture, and that developing future leaders is simply a way of operating that must be intertwined with running the business. “In this increasingly complex and global marketplace, companies must leverage talent and build leadership practices that have consistency throughout the world if they want to be successful,” said Bob Gandossy, principal and global practice leader of Hewitt’s Consulting business. “This requires dedicated focus, passion and commitment to leadership. The Global Top Companies for Leaders not only possess these characteristics -- they are embedded into the companies’ DNA. By having the right leadership practices and processes in place, maintaining a strict focus on critical talent at all levels, and having a continuous desire to improve, Global Top Companies have cultures that cultivate and nurture their talent, and a reputation for doing it well.” “These companies have shown a strong investment in building a leadership brand that sets them apart. They have strong reputations for developing exceptional leaders, often fulfilling both customer and investor expectations,” said Dave Ulrich, partner and founder of The RBL Group, and a professor of business at the Ross School of Business. Indraneel Roy, Global Head of Hewitt’s Leadership Consulting business, who is based in Singapore, elaborates on the Asian perspective, “This clearly indicates that having a world class attitude around Leadership Development is not the exclusive privilege of Western organizations. Asian companies who want to be global majors in their own right have showcased their intense focus on building an organizational DNA which is geared naturally to leadership development at all levels”. In addition to the Global Top Companies for Leaders, the Asia Pacific List of Top 10 companies showcases organizations from India, China, Australia and Malaysia. Regardless of geographic locations, Hewitt has identified five key areas that set the Global Top Companies apart from other companies around the world:
A Focus on Growth and Globalization. Almost 70 percent of Global Top Companies cited business growth as the single most pressing challenge over the next three-to-five years, compared to approximately half (51 percent) of all other companies participating in the survey. While there are many issues of overlapping priority, the Global Top Companies look beyond traditional boundaries to anticipate the next big wave of expansion and they actively prepare for it. Global Top Companies ranked expansion into new markets as their second biggest challenge, followed by globalization and cost pressures as third.
A Dedication to Developing a Global Talent Pipeline. The majority of Global Top Companies (85 percent) believe that they currently have the talent pipeline they need to be successful in the future, compared to just 42 percent of all other companies. “The future success of an organization rests in the hands of leaders who are equipped to manage and run an international company, which requires them to have a real development mindset,” said Michelle Salob, Hewitt’s global project leader for the 2007 Top Companies for Leaders Study. “Leaders at Global Top Companies understand this, and challenge their talent to stretch into new roles and/or take on new experiences – whether it is moving to a different geography, business line or function, or simply taking on greater responsibility.” In addition to formal assignments, leaders at the Global Top Companies take an active and personal interest in developing and preparing the next generation of leaders through informal mentoring.
A Strategic Business Commitment to Developing Leaders. Hewitt’s research reveals that Global Top Companies passionately believe that leadership should be closely tied into their business strategies. The majority (85 percent) ensure that the selection and development of leaders is aligned with their business strategies, compared with just a third (32 percent) of all other companies. In addition, 85 percent of Global Top Companies say leadership development is a high priority to senior management in the organization, compared to just 45 percent of other companies.
A Senior-Level Commitment to Developing Leaders. According to the study, senior leadership teams at the Global Top Companies, particularly CEOs, drive the leadership agenda, and the amount of time spent directly on leadership issues at all levels — from the Board of Directors to front line management — is significantly greater than at other companies. Eighty-five percent of senior management at Global Top Companies say they spend at least 20 percent of their time on leadership development initiatives, compared to just half (52 percent) of all other companies.
A Clear Expectation of Desired Leadership Behaviors. At Global Top Companies, the use of leadership competencies demonstrates clarity around expectations for leaders. Most (85 percent) believe that the desired leadership behaviors are well understood at all levels of the organization, compared to just 37 percent of other companies. These competency models are consistently applied across the organization, and expectations are reinforced through multiple mechanisms, including communications, performance management, compensation, education and high potential selection. “Today’s global companies face a number of unrelenting business challenges — including becoming a leaner organization and growing at double-digit rates in the midst of intensified competition, tightening demographics and a global business arena,” said Gandossy. “Today, leaders must have the capacity to lead complex organizations with global scope and scale, demonstrate visionary thinking, hold the highest standards of ethics and understand the business as a whole. Through our research, it is evident that Global Top Companies ingrain leadership in every aspect of the business — it’s not simply an action item on a ‘to do’ list. This mindset differentiates successful businesses from unsuccessful ones.” The Global Top Companies for Leaders Study is based on approximately 550 global organizations with an average employee size of nearly 27,000. Almost 70 percent of the participating companies had revenues of $500 million or more. Hewitt, The RBL Group and FORTUNE utilized a three-step screening process to identify the finalist companies. This included assessing survey responses, conducting in-depth interviews and analyzing financial performance in relation to industry. This information was then provided to a panel of expert judges in each region to select and rank a 2007 Top Companies for Leaders list in Asia-Pacific, Europe, Latin America and North America. A separate judging panel, composed of one representative from each regional panel, considered all regional Top Companies to select and rank a Global Top Companies for Leaders list. The Asia-Pacific Top Companies for Leaders country level lists are a derivative of the Top Companies for Leaders regional and global study. The country lists are additional lists that were added into the study. For these lists, the eligibility rules were relaxed such that subsidiaries (not separately traded, e.g. McDonalds China) could be part of the selection process. In addition, as it is relatively difficult to obtain accurate financials on certain local business units, the financial analysis was not part of the process. Aside from the above changes in eligibility at the country level, the global research methodology was maintained. A minimum participation level was established in order to select a country list, as well as a ratio that determined what size list could be selected.
Top Companies for Leaders — Greater China List Featured below is the list of Top Companies for Leaders in China, announced today in the October 1 issue of FORTUNE Magazine. Sponsored by Hewitt Associates in partnership with The RBL Group and FORTUNE Magazine, this list was selected by an esteemed judges panel consisting of world-renowned authors, professors, business executives and executive coaches:
- China Vanke
- 3M China
- China Mobile Group Shanghai
- Manulife International
- Agile Property Holdings
- McDonalds (China) Co. Ltd.
About Hewitt Associates With more than 65 years of experience, Hewitt Associates (NYSE: HEW) is the world’s foremost provider of human resources consulting and outsourcing services. The company consults with more than 2,300 organizations and administers human resources, health care, payroll and retirement programs on behalf of more than 340 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 24,000 associates. For more information, please visit www.hewittasia.com.
