BCL 2010 | External webinar PPT | Leading in a global

Leading in a global environment 2010 Best Companies for Leadership June 21, 2011

Erin Lap and Rob Stolk

Agenda 1

2010 survey findings: facts/figures

2

The changing environment

3

Globalization and collaboration

© 2010 Hay Group. All rights reserved

2

01 2010 survey findings: facts/figures

The study results apply to all organizations Regional distribution Region

Revenue distribution Per cent

Annual revenue in US$

Per cent

Europe/Middle East/Africa

27.5

Under 500 million

32.0

North America

26.6

501 million to 1 billion

13.5

South America

23.7

1 billion to 5 billion

16.4

Asia

19.7

6 billion to 10 billion

6.6

Pacific

2.6

Total

100.0

Source: 2010 Best Companies for Leadership study

Over 10 billion

Total

31.5

100.0

Source: 2010 Best Companies for Leadership study

3,769 individuals participated in the study

© 2010 Hay Group. All rights reserved

4

2010 Top 20 Best Companies for Leadership World Wide

1

General Electric

11

ABB Ltd

2

Procter & Gamble

12

Microsoft

3

Intel Corporation

13

PepsiCo

4

Siemens

14

Goldman Sachs

5

Banco Santander

15

Hewlett-Packard

6

The Coca-Cola Company

16

Unilever

7

McDonald’s Corporation

17

Cisco Systems

8

Accenture

18

FedEx

9

Walmart

19

Pfizer Inc

Southwest Airlines

20

BASF

10

© 2010 Hay Group. All rights reserved

5

The best companies for leadership outperform others over the long run © 2010 Hay Group. All rights reserved

6

Top 20 produce better shareholder returns than S&P 500 Top 20 vs S&P 500 20 15

14.42

13.84

Per cent

10 6.17

Top 20

5

S&P 500

1.27

0 (0.17) (2.17)

(5.0)

(0.76)

(6.77)

(10.0)

1 year total return

3 year total return

5 year total return 10 year total return

Source: S&P Compustat data as of 7/30/2010

© 2010 Hay Group. All rights reserved

7

Best Companies for Leadership create better leaders

100

100

100

Per cent of respondents

100 90 80

73

69

70 60 50

42

Top 20 All others

40 30 20 10 0 Leadership development All employees have the There are a sufficient programs enable employees opportunity to develop and number of internal to deliver on practice the capabilities candidates ready to assume goals/strategies needed to lead others open leadership positions

Source: Hay Group 2010 Best Companies for Leadership study

© 2010 Hay Group. All rights reserved

8

Best companies for leaders focus 

Collaboration

Diversity Sustainability



Leadership Practices – systems

Programs

© 2010 Hay Group. All Rights Reserved

9

02 The changing environment

Innovation, efficiency and emerging markets will pave the way for future growth © 2010 Hay Group. All rights reserved

11

Increasing challenges and opportunities for organizations Globalization 

Shift in the global economy



Need to operate in global markets with local anchoring



Leading virtual teams from different cultures

Operating in a flatter, more matrixed environment 

Managing across functions and geographies without authority



Increased use of technology

Driving innovation while reducing costs 

Collaborating/partnering with outside constituents



Focusing on initiatives that will provide the greatest value

© 2010 Hay Group. All rights reserved

12

Increasing challenges and opportunities for organizations New trends and demographic changes 

China and India will contribute an increasingly significant proportion of global talent



Women make up over half of the global educated workforce



Key leadership skills will be lost from the workplace as boomers exit the workforce



There is a growing number of inexperienced young managers, who need to assume senior leadership roles without the requisite leadership skills, particularly the case in emerging economies



Employees expect more from organizations 

Purpose driven leadership – more than just generating profits



Work/life balance while meeting the needs of the organization

© 2010 Hay Group. All rights reserved

13

Future leaders have to inspire, mobilize a diverse workforce to innovate and grow

© 2010 Hay Group. All rights reserved

14

What organizations value most in leaders Global top 20 vs all others Strategic thinking

52

Execution

60

35

Ethics

45

19

Inspiring leadership

40

28

Technical competence/expertise

26 30

Decision making Teamwork

20

Capacity to learn

20

7

Social responsibility

3 0

60

Top 20 All others

35 35

32

10 10

20

30

40

50

60

70

80

90

100

Per cent of respondents

Source: Hay Group 2010 Best Companies for Leadership study

© 2010 Hay Group. All rights reserved

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03 Globalization and collaboration

How BCL drive collaboration 

Everyone, at all levels, has to lead and to bring value



Actively seek out and disseminate innovative ideas, successful practices



Reward structures that encourage collaboration

© 2010 Hay Group. All Rights Reserved

17

How the best companies prepare more effective collaborative leaders Best Companies for Leadership are more proactive and focused in preparing employees to be effective in a global matrix 100

100

95

100

Per cent of respondents

90

90

80

80 66

70 60 50

43

48

40

Top 20 All others

30 20 10 0 Programs designed to develop leaders who can creatively bring together resources across the organization

Use collaborative technologies to encourage information sharing across business units

Expat program that deals Company recruits cultural with blending expats with minorities the local culture

Source: Hay Group 2010 Best Companies for Leadership study

© 2010 Hay Group. All rights reserved

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How to make leaders more effective in a global environment © 2010 Hay Group. All rights reserved

19

BCL: gain value from diversity 

Global views and direction applied differently to meet local needs



Hire and develop potentials from regions and constituencies, that they see as future markets



Programs and practices to help employees manage competing demands work-life

© 2010 Hay Group. All rights reserved

20

Diversity

© 2010 Hay Group. All rights reserved

21

BCL: sustainable work force Changing values new generation 

Contribute to society



Energy efficiency



Social responsibility

 Combine initiatives with development  Flexible career paths  Purpose driven leadership

© 2010 Hay Group. All rights reserved

22

Responsible practices

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23

Focus in the attraction and development of future leaders Global top 20 vs all others Targeted leadership training and development

100

73

Stretch assignments

90

64

International opportunities

55

31 35 35

Mentoring programs 15

Fast track promotions

15 14 10

Early long-term incentive opportunities Higher pay and bonus opportunities 0

10

20

Top 20 All others

27

29 30

40

50

60

70

80

90

100

Per cent of respondents

Source: Hay Group 2010 Best Companies for Leadership study

© 2010 Hay Group. All rights reserved

24

The future leaders of organizations are looking for a job that allows one to live a meaningful life and have a life © 2010 Hay Group. All rights reserved

25

Per cent of respondents

Best Companies for Leadership continue to adapt to employees needs

80 70 60

100

95

100 90

92

84 61

50 40 30 20

60 Top 20 All others

43 32

10 0 Introduced an on It is easy for people to Leaders are change boarding program to work from home agents towards help new parents higher enviromental return to the standards workplace

Company pays male and female employees the same rate

Source: Hay Group 2010 Best Companies for Leadership study

© 2010 Hay Group. All rights reserved

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Leadership must keep pace with organizational change 

Competencies have been adapted to meet future challenges



Focus on preparing leaders to manage a global, divers workforce



Leadership development is a priority at the highest level in the organisation



Leadership development co-creation between top leaders and professionals

© 2010 Hay Group. All rights reserved

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