IBM, Procter & Gamble and General Mills head the 2009 list
of Global Top Companies for Leaders, the most comprehensive study
of organizational leadership in the world. The Global Top Companies
for Leaders study is conducted by Hewitt Associates, a global
consulting and outsourcing company, in partnership with The RBL
Group, a strategic HR and leadership systems advisory firm, and
Fortune. This year’s winners were selected and ranked by an expert
panel of independent judges based on criteria including strength of
leadership practices and culture, examples of leader development on
a global scale, impact of leadership in communities in which they
operate, business performance, and company reputation. The 2009
list, attached below, can be found on Fortune.com today and will
appear in the December 7 issue of Fortune, on newsstands November
23.
When comparing the Global Top Companies
with more than 500 companies around the world, Hewitt identified
one distinguishing characteristic that sets them apart from their
peers—even during the economic downturn, Global Top Companies
remained committed to building leadership capability within their
organizations. In other words, tighter budgets and fewer resources
forced these organizations to think and act smarter and more
creatively about what really mattered when it came to
leadership—but they didn’t lose focus.
“Strong leadership is a critical element in helping global
companies successfully compete, yet many organizations lack the
know-how and infrastructure to create a robust pipeline of leaders
for future success. Simply put, they lack the discipline to build
leaders,” said Robert Gandossy, global practice leader of
Leadership Consulting at Hewitt. “Our research and experience tells
us that while leadership talent is in short supply around the
world, the Global Top Companies for Leaders are still able to groom
a near-constant supply of world-class leaders...year after year and
regardless of economic conditions. This capability gives them a
unique advantage over their competitors and will poise them to
emerge stronger—and more quickly—out of the economic downturn.”
“The quality of the leadership within a company helps meet the
expectations of investors, customers and employees, and sets the
stage for growth,” said Norm Smallwood, co-founder of The RBL
Group. “So developing the next generation of effective leaders is
perhaps the most important undertaking of a forward-thinking
company. The Global Top Companies for Leaders understand the
urgency of a robust leadership culture and are learning to master
how to build and sustain one.”
Since the study’s inception in 2002, Hewitt has identified a set
of standard leadership characteristics embodied by companies that
possess a winning leadership culture, including the 2009 Global Top
Companies for Leaders. Leaders at these organizations are
passionate and committed. Their leadership programs are practical,
relevant and aligned with business goals. Top Companies have an
intense focus on talent, and they are deliberate about who they
hire, who they coach, who they promote, and who they reward.
Finally, leadership development at these organizations is an
institutionalized practice and mindset.
In addition to this standard set of leadership traits, Hewitt’s
research identified four other critical areas that set the 2009
Global Top Companies apart from other companies around the
world:
Leadership remains a critical priority—in good or bad
economic times. According to Hewitt’s research, all companies
ranked cost pressure as the single most pressing challenge over the
next three years. Stabilizing cash and debt positions and balancing
immediate cost pressures with long-term growth were key priorities
in 2009, and they will remain a top priority as the global economy
begins to recover. However, Global Top Companies also plan to have
an intense focus on ensuring they do not abandon key leadership and
talent efforts in favor of shortsighted goals. As A.G. Lafley,
chairman of the board at Global Top Companies winner Procter &
Gamble, explains, “All the value we create comes from our
people—that doesn’t change if we are in a recession or if we are
growing rapidly.”
Succession planning is deliberate and consistent. All
Global Top Companies have a formal succession planning process in
place, compared to only 72 percent of all other companies. Almost
all (95 percent) have developed succession plans specific to the
CEO or an emergency plan, compared to just under two-thirds (63
percent) of all other companies. Succession plans at Global Top
Companies are also more likely to offer specific elements to ensure
the capabilities and depth of their pipelines are strong.
Eighty-four percent of Global Top Companies identify a leader’s
current performance against his/her future potential, compared to
just 64 percent of all other companies. In addition, 88 percent
offer 360-degree feedback, compared to just over half (56 percent)
of all other companies.
Leaders clearly understand what is expected of them as
leaders. Leaders at the Global Top Companies understand what is
expected of them and are held accountable for their actions.
Seventy-two percent of Global Top Companies rate the ability to
effectively develop other leaders as one of the top five leadership
skills most critical to their firm’s success, compared to just 39
percent of other companies. More than three-quarters (76 percent)
also rate “demonstrating company missions and values” as one of the
top five most important factors in determining strong leadership
performance, compared to 57 percent of all other companies.
“We are a company that has succeeded in having its leaders take
responsibility for assessing talent, engaging talent in ‘what’s
next’ conversations and looking at moving talent across lines,
businesses, geographies, and functions. We think deeply about our
leaders of tomorrow,” said Ted Hoff, vice president, IBM Center for
Learning and Development.
Developing the next generation of leaders is a priority.
Hewitt’s research shows that Global Top Companies recognize that
the ability to attract, assess and develop leaders across roles,
functions and geographies is a necessary and differentiating
strategy. All Global Top Companies formally identify high-potential
talent, compared to 68 percent for all other companies. All of them
also have formal processes for developing leaders, (compared to 77
percent of other companies) and use leaders as teachers and mentors
(compared to 55 percent of all other companies) in these efforts.
As a result, 96 percent of Global Top Companies say they are
attracting the quality leadership talent they need to be
successful, compared to just 65 percent of all other companies. As
Dr. John C. Lechleiter, chief executive officer of Global Top
Companies for Leaders winner Eli Lilly, notes, "There were a lot of
people here to help us win the last war, but we need to develop
people to win the next war—all the while continuing to ground
ourselves in the company's values. We take the long view in respect
to people development; we still talk to people about building
careers here.”
About Hewitt Associates
Hewitt Associates (NYSE: HEW) provides leading organizations
around the world with expert human resources consulting and
outsourcing solutions to help them anticipate and solve their most
complex benefits, talent, and related financial challenges. Hewitt
works with companies to design, implement, communicate, and
administer a wide range of human resources, retirement, investment
management, health care, compensation, and talent management
strategies. With a history of exceptional client service since
1940, Hewitt has offices in more than 30 countries and employs
approximately 23,000 associates who are helping make the world a
better place to work. For more information, please visit
www.hewitt.com.
About The RBL Group
The RBL Group is a strategic HR and leadership systems advisory
firm. For over 25 years, its principals have collaborated with
leading global organizations to strategically align corporate and
business strategy to ensure sustainable high performance through
the integration of theory, applied research, and practice. The RBL
Group has trained and redesigned some of the best-managed companies
in the world, helping them achieve significant improvements in
bottom-line results. It is recognized internationally for
innovative research and publications on Leadership, Intangible
Assets and Strategic HR, including hundreds of articles, more than
400,000 books sold, numerous industry awards, and recognition as
outstanding educators and advisors by leading business
publications. For additional information about The RBL Group, its
principals and expertise, visit www.rbl.net.
Global Top Companies for
Leaders
Featured below is the list of Top 25 Global Companies for
Leaders, announced today on Fortune.com. Conducted by Hewitt
Associates in partnership with The RBL Group and Fortune, this list
was selected by an independent judges panel, consisting of
world-renowned authors, professors, business executives and
executive coaches:
1. IBM
2. The Procter & Gamble Company
3. General Mills, Inc.
4. McKinsey & Company
5. ICICI Bank Ltd.
6. McDonald’s Corporation
7. General Electric Company
8. Titan Cement Company S.A.
9. China Mobile Communications Corporation - Shanghai Ltd.
10. Hindustan Unilever
11. Natura Cosmeticos S.A.
12. Colgate Palmolive
13. TNT N.V.
14. Deere & Company
15. Whirlpool Corporation
16. 3M Company
17. Cargill, Incorporated
18. Olam International
19. Eli Lilly and Company
20. PepsiCo, Inc.
21. American Express Company
22. Lockheed Martin Corporation
23. Intel Corporation
24. Infosys Technology
25. FedEx Corporation
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