Hay Group and BusinessWeek.com earlier this week released the 2009 Best Companies for Leadership Study and Top 20 list.
For the first time, BusinessWeek.com partnered with Hay Group on its annual study, which ranks the best companies for leadership and examines how those companies develop leaders. General Electric ranked as the top company for leadership, followed by Southwest Airlines, 3M Company, Proctor & Gamble and Accenture.
The Top 20 companies continued to make leadership development a priority over the past year, in spite of the economy. Employees at these companies were asked to what degree in the last 12 months the urgency to develop leaders in the organisation had increased - the Top 20 indicated an 8.8% decrease, compared to a 13.8% decrease for all respondents.
"The Top 20 Best Companies for Leadership not only entered the recession with strong leadership in place, they maintained their commitment to preparing and retaining leaders - and are highly committed to developing leaders within their ranks," said Rick Lash, a senior consultant for Hay Group and co-leader of the team which conducted the research. "The study also revealed a shift over the past year in what these companies value in leaders. 'Strategic thinking' and 'Inspiring Leadership' are the most valued qualities in leaders this year, indicating that businesses are starting to dig out from the turmoil and are thinking more about their future long-term growth again."
The study also identifies a variety of factors that make the Top 20 Best Companies for Leadership stand out when it comes to identifying and developing great leaders. Ninety per cent of the Top 20 agreed that all employees at their company have the opportunity to develop and practice the capabilities needed to lead others, compared to 67% of all respondents. Nearly all (85%) of the Top 20 said that employees are expected to lead, regardless if they have a formal leadership position, compared with 57% of all respondents.
In addition, 86% of the Top 20 said that employees are encouraged to learn in areas outside their expertise, compared with 66% of all respondents.
"Rapid changes in the world are impacting how organisations do business, and as a result, the old rules of how organisations select, develop and retain good leaders have been turned upside down causing the future of leadership to look very different," said John Larrere, senior consultant at Hay Group and co-leader of the study. "For organisations to succeed, they will need to understand what key leadership elements are paramount in driving their organisation toward growth. It's more than just getting people to produce the right outcomes. It's about getting them to be passionate about their work and grooming them to handle the challenges ahead. The Best Companies for Leadership have already figured this out."
Among other study findings:
- 94% of the Top 20 actively manage a pool of successors for mission critical roles, compared with 60% of all respondents
- 80% of the Top 20 noted that people stay at the organisation primarily for growth opportunities, compared with 61% of all respondents
- 95% of the Top 20 use corporate social responsibility to recruit employees, compared with 60% of all respondents
- 66% of the Top 20 have a high proportion of women in senior leadership, compared with 37% of all respondents
- 91% of the Top 20 make it easy for people to work from home, compared with 46% of all respondents
- 87% of the Top 20 have a sufficient number of internal candidates ready to assume open
leadership positions, compared with 54% of all respondents
The 2009 survey included responses from 1,869 individuals from 1,109 organisations worldwide. The survey was based on the organisations response to an online questionnaire and peer nominations.