T H E F I F T H A N N U A L

2014/ 2015 RESEARCH

GLOBAL LEADERSHIP RESEARCHB Y C H A L L Y G R O U P W O R L D W I D E

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About the ResearchChally Group Worldwide presents the summary results from the Fifth Annual Global Leadership

Research Project. Designed as an ongoing research study, our analysis builds year over year on

insights shared, intelligence gained, and paradoxes revealed about the leadership development

practices of companies globally.

Each year, the project kicks off with an in-depth survey of approximately 300 Chief Executive

Officers (CEOs) and senior Human Resource (HR) leaders globally. The results from this survey

produce the annual Best Companies for Leaders, as published in the January/ February issue of

Chief Executive magazine. Our team of researchers then works with the survey data, in combination

with interviews conducted with senior consultants and CEOs who represent contemporary

thinking on leadership strategies, and present this report as the culmination of the research to date.

Research Objectives

The Global Leadership Research Project involves CEOs and Human Resource leaders directly in

the examination of evolving practices in leadership development and the recognition of the inno-

vative approaches and persistent challenges faced by companies committed to investing in their

own talent.

Recognizing Excellence in Leadership Development

The study defines multiple qualifying criteria for inclusion and final ranking in Chief Executive

Magazine’s “Best Companies for Leaders.” These include:

• The presence and quality of formal leadership development initiatives

• Commitment level of the CEO to the leadership development program as measured

• The depth of the leadership funnel as measured by the percentage of senior management

• Positions filled by internal candidates as well as the percentage of middle management

• Positions filled by internal candidates

• Reputation amongst peers for excellence in developing sought-after talent

• Long-term growth of market capitalization and shareholder value

This last criterion recognizes that impactful leadership development ties directly to strong

business performance. A reprint of the article summarizing the companies who made it to the top

40 public rankings and top 10 private rankings is available in this report.

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Table of Contents

The Fifth Annual Global Leadership Research Project Demographics 4

Chief Executive Magazine’s 2015 Best Companies For Leaders 8

Key Findings

Coaching / Mentoring continues to be the most popular

practice for developing leaders 15

Transformation is needed in Sales Leadership 16

Formal High-Potential Programs become Higher Priority 18

Top Causes of Leadership Derailment 19

Importance of Developing Millennials is Rising 20

Global Leadership Research Project Survey Response Summary 21

The Fifth Annual Global Leadership Research Project

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Organization Size

Annual Revenue in US Dollars (%)

Less than $25 million 27

$25 to $50 million 3

$50 to $100 million 2

$100 million to $500 million 15

$500 million to $1 billion 5

$1 to $5 billion 19

$5 to $10 billion 9

Over $10 billion 20

Number of Employees (%)

Fewer than 50 17

50 to 199 9

200 to 499 10

500 to 999 11

1,000 to 2,499 8

2,500 to 4,999 1

5,000 to 9,999 6

10,000 to 24,999 14

25,000 to 49,999 7

50,000 to 74,999 5

75,000 to 99,999 3

100,000+ 9

Sector (%)

Government 1

Non-Profit 2

Private 53

Public 44

The following information provides a high-level summarization of the research sample. This research represents responses from C-Level and Senior Human Resources and Development leaders. The percentages displayed in these tables constitute those respondents who completed the survey in its entirety.

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Industry

(%)

Other 19

Professional, Scientific and Technical Services 17

Manufacturing 15

Finance, Insurance, Real Estate 10

Health Care 10

Information, Media, Telecommunications 9

Wholesale Trade, Retail Trade 6

Transportation, Warehousing 5

Mining, Utilities, Construction 4

Agriculture, Forestry, Fishing 3

Arts, Entertainment, Recreation, Accommodation, Food Services 1

Administrative, Support 1

Industries Represented

Companies with International Operations

(%)

Yes 65

No 35

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Location of Company Headquarters

Regions

North America

South & Central AmericaMiddle East / Africa

EuropeSouth Asia

East AsiaOceana and Australia

84%

6%

1%

4%

3%

1.7%

Southeast Asia

2%

Chief Executive Magazine’s The 40 Best Companies For Leadersand 10 Best Private Companies For Leaders

This Executive Overview was published in the January/February 2015 issue of Chief Executive Magazine

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36 / CHIEFEXECUTIVE.NET / JANUARY/FEBRUARY 2015

THE 2015 BEST COMPANIES FOR LEADERS

Companies were scored on five key criteria:

Having a formal leadership process in place

The commitment level of the CEO to the leadership-development program as measured by the percent of time spent

The depth of the leader-ship funnel as measured by the percentage of senior management positions filled by internal candidates

The number of other companies that report recruiting from the company being evaluated

1

3

4

A shareholder value performance metric based on 10-year growth or decline in market capitalization

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GE RETURNS TO THE TOP… AGAINBY KEN CARROLL & J.P. DONLON

IN THE LEADERSHIP PIPELINE, management advisors Ram Charan, Stephen Drotter and Jim Noel deplore “the lack of effective talent development within organizations.” Today’s com-panies need effective leaders at every level and in every location. To deliver on results, CEOs can’t do it on their own. They need more fully performing leaders than ever before.

Each year since 2005, Chief Executive has sought to identify those companies that excel in leadership development. In partnership with Chally Group Worldwide (chally.com), a sales and leadership research and consulting firm headquartered in Dayton, Ohio, we canvas world-class companies through a questionnaire and interviews in order to learn what they are doing to identify and nurture people three or more levels down the chain from the CEO.

The final, top-40 ranking consists of public companies with more than $1 billion in revenue, and the top 10 on the list scored within several points of one another. Rankings are affected by a company’s reputation among its peers as a source for well-rounded talent. The percent of senior management recruited

from internal talent pools is another criterion. Similar to 2014, some attrition among last year’s winners accounts for why previous winners did not appear on the 2015 listing. Because it would be inappropriate to compare private companies with larger, public compa-nies that enjoy greater resources, we list separately the ranking of large, private organizations with in-depth, leader-ship-development programs. Of the companies surveyed, 85 percent have headquarters in North America and 64 percent have international operations. The majority of industries represented included professional, scientific, and technical services (20 percent); manufacturing (18 percent); informa-tion, media & telecommunications (16 percent); and finance, insurance, real estate (10 percent).

GE tops the 2015 list as the “Best Company for Leaders” with IBM coming in just a fraction below. P&G moves to No. 3, ranking at a very close range. In the top 10, moving up from the 2014 list are EMC Insurance (No. 4), Verizon (No. 5), VF Corporation (No. 6), Southwest Airlines (No. 7), and The Cooper Companies (No. 9), all of which

Continued on pg. 38

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Companies were scored on five key criteria:

1 General Electric / Jeffrey Immelt (3) 1 P&G / A.G. Lafley

2 IBM / Virginia Rometty (2) 2 IBM / Virginia Rometty

3 P&G / A.G. Lafley (1) 3 General Electric / Jeffrey Immelt

4 EMC Insurance / Bruce Kelley (26) 4 Accenture / Pierre Nanterme

5 Verizon Communications / Lowell McAdam (14) 5 Unilever / Paul Polman

6 VF Corporation / Eric Wiseman (11) 6 Dow Chemical / Andrew Liveris

7 Southwest Airlines / Gary Kelly (18) 7 McDonald’s / Donald Thompson

8 Wipro Ltd. / T. K. Kurien 8 Monsanto / Hugh Grant

9 Cooper Companies / Robert Weiss (36) 9 Hormel Foods / Jeffrey Ettinger

10 Dow Chemical / Andrew Liveris (6) 10 General Mills / Kendall Powell

11 3M / Inge Thulin (23) 11 VF Corporation / Eric Wiseman

12 Xerox / Ursula Burns 12 W.W. Grainger / James Ryan

13 Ingersoll Rand / Michael Lamach 13 Caterpillar / Douglas Oberhelman

14 General Mills / Ken Powell (10) 14 Verizon Communications / Lowell McAdam

15 Hormel Foods / Jeffrey Ettinger (9) 15 TJX Companies / Carol Meyrowitz

16 Esterline / Curtis Reusser (40) 16 Sprint / Daniel Hesse

17 Arthur J. Gallagher / J. Patrick Gallagher 17 Maxim Integrated / Tunc Doluca

18 Sprint / Marcelo Claure (16) 18 Southwest Airlines / Gary Kelly

19 Maxim Integrated / Tunc Doluca (17) 19 DENTSPLY International / Bret Wise

20 Accenture / Pierre Nanterme (4) 20 ADP / Carlos Rodriguez

21 Caterpillar / Douglas Oberhelman (13) 21 HNI / Stan A. Askren

22 Nielsen / Mitch Barnes 22 McKesson / John Hammergren

23 Hitachi Data Systems / Jack Domme 23 3M / Inge Thulin

24 Ball Corporation / John Hayes 24 Konecranes / Pekka Lundmark

25 Cardinal Health / George Barrett (27) 25 Ecolab / Douglas Baker, Jr.

26 Coca-Cola Enterprises / Muhtar Kent 26 EMC Insurance / Bruce Kelley

27 Huntington Bancshares / Stephen Steinor (37) 27 Cardinal Health / George Barrett

28 Dentsply International / Bret Wise (19) 28 Green Mountain Coffee Roasters / Brian Kelley

29 Royal Caribbean Cruises / Adam Goldstein 29 RPM International / Frank Sullivan

30 Salesforce / Marc Benioff 30 Emerson Electric / David Farr

31 Bristow Group / Jonathan Baliff 31 Comcast / Brian Roberts

32 HCL Technologies, Ltd. / Anant Gupta 32 Shoppers Drug Mart / Domenic Pilla

33 Tata Group / Cyrus Mistry 33 Barnes Group / Patrick Dempsey

34 Shoppers Drug Mart / Dominic Pilla (32) 34 Cash America International / Daniel Feehan

35 Hyatt Hotels / Mark Hoplamazian 35 Dangote Group / Aliko Dangote

36 Ecolab / Douglas Baker (25) 36 The Cooper Companies / Robert Weiss

37 Paychex / Martin Mucci (39) 37 Huntington Bancshares / Stephen Steinour

38 Hewlett-Packard / Meg Whitman 38 Citigroup / Michael Corbat

39 Harman / Dinesh Paliwal 39 Paychex / Martin Mucci

40 Monsanto / Hugh Grant (8) 40 Esterline / Curtis Reusser

TOP40BESTCOMPANIES

FORLEADERSIN 2015

2014 Ranking

Company / CEO 2015 Ranking

Company / CEO (2014 Rank)

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10 BEST PRIVATE COMPANIES FOR LEADERS

1 Deloitte / Frank Friedman (1) 1 Deloitte / Barry Salzberg

2 Hilti / Christoph Loos 2 PwC / Bob Moritz

3 Dell / Michael Dell (6) 3 Transplace / Thomas Sanderson

4 Transplace / Thomas Sanderson (3) 4 American Infrastructure / A. Ross Myers

5 MWH Global / Robert Moser, Jr. (9) 5 Clark Construction Group / Robert Moser

6 Black & Veatch / Steven Edwards (10) 6 Dell / Michael Dell

7 AlliedBarton Security / William Whitmore (7) 7 AlliedBarton Security / William Whitmore

8 Belron / Gary Lubner 8 Day & Zimmerman / Michael Yoh

9 Day & Zimmermann / Hal Yoh (8) 9 MWH Global / Alan Krause

10 NAACO Industries / Al Rankin 10 Black & Veatch / Len Rodman

2015 RankingCompany / CEO (2014 Rank)

2014 RankingCompany / CEO

38 / CHIEFEXECUTIVE.NET / JANUARY/FEBRUARY 2015

When asked methods in which CEOs are investing time devel-oping leaders, the majority of the participants said coaching and feedback for skill development is the main area of focus.

57%Coaching and feedback for skill development

48%Informal information- exchange sessions

43% Mentoring one-on-one

TOP 5 DEVELOPMENTAL OPPORTUNITIES

reported impressive leadership-devel-opment processes. New to the top-10 rankings this year is Wipro (No. 8), which made the list in prior years.

Except for 2009, where 3M led the list, and 2010, when the nod went to JPMorganChase, the top honor has been a back-and-forth contest between P&G and GE. After a three-year run, P&G has again been toppled by its GE rival. The difference, narrow as it is, lies in the number of other companies that report recruiting from these leadership incubators. (See Criteria No. 4.) For its part, developing people is embedded in GE’s culture and is integral to its growth. “It’s how we’ve sustained a 130-year record of innovation and reputation for leadership—and how we solve the toughest challenges for our customers and society. We invest significantly in

our employees to meet the needs of those we serve,” according to Susan Peters, GE’s SVP, human resources. The Fair-field, Connecticut conglomerate spends more than $1 billion on learning and development each year to help employ-ees at every level and career stage.

Crotonville, its global leadership institute, serves at the forefront of thinking in leadership, strategy and innovation; is the first corporate university in the U.S.; and is the epicenter of GE culture. Some of GE’s best-known initiatives—WorkOut, CAP, Six Sigma, Lean Six Sigma—took shape at Crotonville. Today, GE leaders are focused on speed, simplicity and impact. It offers multi-year rotational programs for emerging and experienced leaders to build functional expertise, global experience and a strong foundation

Continued on pg. 40

THE 2015 BEST COMPANIES FOR LEADERS

To deliver on results, CEOs can’t do it on their own. They need more fully performing leaders than ever before.”

Continued from pg. 36

Because private companies operate in a much different business environment than public companies, they have their own ranking. Deloitte once again takes the top position, followed by Hilti, which scored a fraction below. Dell moves up from No. 6 to ranking No. 3.

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Survey participants cited coaching and mentoring as the No. 1 development opportunity within a formal process. Here are the top five development programs:

52% Coaching and Mentoring

49% Action Learning/Developmental Assignments

39% Assessment and Feedback

34% High-Potential Programs

34% Exposure to Senior Executives

FORMAL PROCESSES

One technique for developing leadership talent falls outside the range of formal programs, and so it deserves special mention: positioning high-potential individuals to serve as board members for other organizations. Thirty-six percent of all companies surveyed place future leaders on the boards of other firms.

1 Deloitte / Frank Friedman (1) 1 Deloitte / Barry Salzberg

2 Hilti / Christoph Loos 2 PwC / Bob Moritz

3 Dell / Michael Dell (6) 3 Transplace / Thomas Sanderson

4 Transplace / Thomas Sanderson (3) 4 American Infrastructure / A. Ross Myers

5 MWH Global / Robert Moser, Jr. (9) 5 Clark Construction Group / Robert Moser

6 Black & Veatch / Steven Edwards (10) 6 Dell / Michael Dell

7 AlliedBarton Security / William Whitmore (7) 7 AlliedBarton Security / William Whitmore

8 Belron / Gary Lubner 8 Day & Zimmerman / Michael Yoh

9 Day & Zimmermann / Hal Yoh (8) 9 MWH Global / Alan Krause

10 NAACO Industries / Al Rankin 10 Black & Veatch / Len Rodman

2014 RankingCompany / CEO

How do leading companies make the most of potential talent within the organization? Nearly every organization today espouses some version of the mantra, “our people are a critical, competitive asset.” The most successful ones tend to take that statement literally, making sustained efforts to assess, manage and increase their stock of employee talent. In particular, many maintain formal programs to develop high-potential individuals for future leadership roles. But companies follow a range of approaches in choosing to adopt these programs and in the ways they implement them. What did the best companies identify as best practices for corporate high-potential programs?

High-Potential ProgramsBecause creating and maintaining a formal program represents a substantial investment of resources with largely long-

term benefits, the study looked at smaller firms (under $1 billion in revenue) and larger ones separately. Specific, high-potential programs prove to be not very common among smaller companies, with only 8 percent reporting them among the top three types of options favored for leadership development. In contrast, 56 percent of larger firms rank them in the top three. For reference, the most common categories overall are coaching and mentoring, action learning, assessment and high-potential programs.

Defining PotentialHigh-potential programs can vary widely in their scope, approach and degree of success. The initial challenge in making any program succeed is simply having a clear definition of “high potential.” Seventy-one percent of all companies surveyed and 83 percent of larger ones reported

having a definition for the term. While the study did not

investigate approaches taken by the firms that have not defined the concept, establishing a definition of “high potential” offers numerous benefits. Besides helping make the process fair to potential candidates, a formal definition provides a foundation for designing an effective program and makes it possible to measure results in a meaningful and consistent way.

Among all the companies studied, those whose leadership development efforts ranked in the top 15 percent grew their market capitalization by 122 percent over the 10 years ending in 2014—while those in the bottom 15 percent grew by only 37 percent. Given these figures, a closer investigation of how high-potential leadership programs are best implemented promises to pay substantial dividends for talent-focused organizations.

Best Practices for Identifying and Developing Leaders

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THE 2015 BEST COMPANIES FOR LEADERS

Comparing the long-term growth in market capitalization

of public companies with their final scores for leadership

development can offer justification for investment in

developing leaders. The comparison covered 2004 to 2014,

a period long enough to minimize short-term and situational

fluctuations. In terms of the contribution to growth potential,

the top leadership companies show greater growth than the

lowest as measured by market capitalization.

THE ROI OF LEADERSHIP DEVELOPMENT

Participant Companies*

Market Capitalization Growth 2014

Top 15 percent 122 %

Bottom 15 percent 37 %

SUMMARY 10-YEAR PERFORMANCE COMPARISONS

*Includes companies where public data is available for 2004 to 2014.

Survey participants were asked to list the three companies they would recruit from when there are insufficient internal candidates for openings in their organizations. The reputational stars for leadership development are still limited to a few at the top of their game. Here are the top target companies and some of the reasons behind their status as perceived by respondents:

GE

A multinational organization with complex business units and a strong reputation for developing leaders and leading innovation in technology.

IBM

A technology and solutions frontrunner with an excellent reputation for developing leaders, reinventing business models profitably and sharing success with global communities.

P&GKnown for outstanding technical leaders, marketing expertise and leadership know-how.

REPUTATIONAL LEADERS

Other top companies are recruiting targets, but GE, IBM and P&G are by far the most cited “reputational leaders.”

Continued from pg. 38for future leadership roles. Some 4,000 next-generation leaders are in the program today. One-third of GE’s senior leaders are program graduates.

Clearly, a CEO will reap the benefits of an organization that enjoys superior leadership development. But this oppor-tunity does not depend on having one’s own Crotonville. Part of the challenge is that organizations don’t know their people well enough to understand the strengths and weaknesses of their bench. But CEOs who take it upon themselves to tackle this challenge will realize the benefit in better, overall performance.

GE spends more than $1 billion on learning and development each year to help employees at every level and career stage.”

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Key Findings: Coaching and mentoring continues to be the most

popular practice for developing leaders

Transformation is needed in Sales leadership development to better focus on the new buyer

Having a formal High-Potential development program is rising in importance

Top cause for Leadership Derailment is reported to be Change Agility

The focus level of developing millennials is increasing

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Coaching and mentoring continues to be the most popular practice for developing leaders. Having High-Potential programs has moved up in importance from last year as companies are seeing the in-creased importance of identifying and developing employees with leadership qualities.

Coaching and Mentoring

64%

56%

Action Learning and Developmental Assignments

59%

49%

Assessment and Feedback

47%

45%

Exposure to Senior Executives

41%

39%

Formal Classroom Training

40%

37%

High-Potential Programs

41%

29%

Cross-Functional Team Projects

25%

24%

21%

24%

24%

International Assignments

8%

12%

Tuition Remission

9%

11%

Other

5%

6%

Exposure to Internal and External Thought Leaders

24%

2015 2014

Coaching and mentoring continues to be the most popular practice for developing leaders

Most popular practices for Developing Leaders

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An emerging area of leadership is in Sales Executives. While price, quality, innovative product features, and availability of products and services certainly influence customers’ buying decisions, none of these is the most influential factor. Rather, business-to-business customers rank salesperson effectiveness as the most important factor in their buy-ing decisions. Sales Leaders and senior executives must focus on sales effectiveness and the capabilities of their sales force to better serve their customers. Pursuant to this trend, CEOs and HR Executives were asked to rank sales leadership initiatives by Strongly Agreeing or Agreeing to several best practices. Below are the findings.

Understanding customer’s business, anticipating and addressing their needs and committing to a solution ranks as most important.

Transformation is needed in Sales leadership development to better focus on the new buyer

Customers are given a primary and backup contact who address their needs, commit to a result, and communicate decisions internally to execute the solution.

Managers and individual contributors throughout our organization judge the value of their contribution by how it impacts internal and external customers.

Members of functional groups like HR, IT and Marketing are available to form teams to support sales initiatives.

Customers believe our salespeople understand their business and rely on them to anticipate their needs and provide improvement solutions.

Our organization has a formalized sales process that is tracked to measure individual salesperson performance.

Our sales process is specifically designed to coincide with the way our customers wish to buy.

Our seasoned salespeople consistently share best practices with those who are in need.

Customer complaint tracking is done consistently and used to measure customer service effectiveness and continuous improvement objectives.

89%

86%

86%

85%

81%

79%

79%

Summary Findings:

RespondentsStrongly Agree

or Agree

78%

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Our sales selection process is a standardized system of interviewing, objective assessment and background checks which are uniformly applied to new candidates.

Sales managers are given interviewing training related to the specific competencies re-quired for the positions with periodic updates.

Our customers have significant flexibility of choices for how their transactions are managed so their processes are maximized.

Customer satisfaction is consistently measured against ‘best of breed’ and ‘best of show,’ with results tied to rewards.

When recruiting salespeople, the makeup of the customer base is taken into account and candidates with similar language and background are sought.

Our sales career ladder includes highly specialized, senior positions with customer contact responsibility as an alternative to reassignment to a functional or management role.

What percent of salespeople have an individual development plan?

Our post transaction evaluation is a formal process, done consistently and reviewed with the customer to reinforce satisfaction or make up short-fall.

HR and Training departments regularly meet with sales to review the tracking associated with the effectiveness of selection, onboarding and retention of salespeople.

We segment our customer base by size with a formal national accounts process and various classifications of customer by size used for account assignment & product offering mix.

All our salespeople, regardless of tenure, are required to have at least 20 hours of training per year.

Each of our salespeople is dedicated to either new account development or existing customer penetration.

Firm guidelines are in place for determining if a customer should be a strategic partner.

74%

70%

70%

69%

68%

68%

67%

65%

64%

63%

62%

61%58%

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Having a formal High-Potential development program is rising in importance

Importance of Sales Experience in selecting High PotentialsThe majority of respondants believe it is important for High-Potential talent to have sales experience.

CriticalVery ImportantImportantSomewhat ImportantNot Important

33%26%

6%5%

8%

Identifying and Developing High-Potential LeadersTop Processes in Identifying Top Internal Talent

Having a formal Succession PlanAnnual/Bi-Annual Talent Reviews9-Box Grid ReviewMulti-Rater EvaluationAssessment Tests/Centers

44%36%

31%29%

44%

Top-Ranked Companies Define High PotentialResponses from Top-Ranked companies when asked to define High-Potential Talent

• Consistent, strong performance over time • Aspiration to advance • Engagement and commitment to company • Demonstrated learning agility • Demonstrate eagerness to learn • Leadership and customer relationship skills • Proactively building a variety of job experiences • Inspires others to be their best • Ability to handle responsibility with greater scale and scope • Outperforming their peers

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• Consistent, strong performance over time • Aspiration to advance • Engagement and commitment to company • Demonstrated learning agility • Demonstrate eagerness to learn • Leadership and customer relationship skills • Proactively building a variety of job experiences • Inspires others to be their best • Ability to handle responsibility with greater scale and scope • Outperforming their peers

Top Five Causes of Leadership DerailmentWhy Do Leaders Derail?

Unwillingness to adapt to change

Lack of self-awareness and emotional

intelligence/arrogance

Lack of ability to make strategic decisions

Lack of cross-organizational collaboration

and leadership skills

Not embracing culture and values

1

2

3

4

5

20

Critical

30%

24%

2015 2014

The Importance of Developing Millennials is risingThe level of importance of focusing on the millennial generation is rising. The majority (81% in 2015 compared to 78% in 2014) of organizations find the attraction, development and retention of the millennial generation critical, very important or important for the organization.

“We source the majority of our talent from universities and have adapted our employment branding and recruiting messages to appeal to the millennial generation. We give new hires significant and challenging responsibilities early and then plan their assignments carefully over time to provide them the developmental experiences needed. We’re expanding flexible work arrangements to include work from home and location free arrangements.”

“We are providing education and training to managers concerning how they may need to adapt and modify their management style to appropriately motivate and connect to the millennial generation. We are also actively involved in analyzing and modifying our recruiting and on-boarding efforts to better attract and retain millennial workers.”

“It is clear that as baby boomers retire and we prepare gen x across the world that we need to appreciate the needs, motivations and expectations of a cadre of gen y employees about to join our sales teams and other aspects of operations.”

“Training upper level managers on generational differences, adjusting employment offerings to meet millennials needs (i.e., providing a flexible workplace), strategic and formal initiatives targeted at embracing diversity and inclusion of all employees.”

Very Important

30%

34%

Important

21%

20%

Somewhat Important

13%

16%

Not Important

6%

6%

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Global Leadership Research Project Survey Response Summary

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Rank the key performance measures your leadership tracks to determine the overall success of the organization. (1 as most important to 11 as least important; lower averages indicate most important)

Key Performance Measure %

Customer Satisfaction 3.6

EBITDA 3.9

Income Growth 4.0

Gross Profit 4.2

Customer Retention or Churn 4.6

Employee Retention 5.5

Costs 5.7

Market Share 6.1

Stock Price 7.9

Publications 9.1

Patents 9.4

What development opportunities are included in your organization’s leadership development program? (Select the three most frequently used.)

Development Opportunity (%)

Coaching and mentoring 64

Action learning and developmental assignments 59

Assessment and feedback 47

High-Potential programs 41

Exposure to senior executives 41

Formal classroom training 40

Cross-functional team projects 25

External workshops and training 24

Exposure to internal and external thought leaders 21

Tuition Remission 9

International assignments 8

Other 5

What percent of your current management team was recruited internally?Mean % Standard

Deviation

Engaging in others' development activities 33 20

On his/her own personal development activities 18 12

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What percent of your CEO’s time is spent:

Mean %Standard Deviation

Engaging in others' development activities 33 20

On his/her own personal development activities 18 12

What is the length of time your Top Executive (CEO, President or Chairman) has been in the office? (Years)

Mean %Standard Deviation

Current Executive 32.6 35.0

Former Executive 21.3 22.7

Of the following developmental activities, which two does your CEO spend the most time on?% Strongly Agree/Agree

Coaching and feedback for skill development 57

Informal information exchange sessions 48

Mentoring one-on-one 42

Guest appearances in training classes 26

Overseeing the design and development of leadership programs

25

Teaching formal training classes 20

Other 9

24

The following seven questions were rated on a scale of Strongly Disagree=1; Disagree=2; Neither Agree nor Disagree=3; Agree=4; Strongly Agree=5.

% Strongly Agree/Agree

Other companies actively try to recruit our organization's leaders.

83

My company has a sufficient number of qualified internal candidates who are ready to assume mid-level manager positions.

73

Mid-level managers recruited externally have been successful.

71

HR is an effective partner in the leadership development process.

67

My company has a sufficient number of qualified internal candidates who are ready to assume senior manager/executive positions.

63

Upper-level managers recruited externally have been successful.

63

Retention of key talent is a formal performance metric for our managers.

63

How would you rate your organization’s ability to develop leaders?

%Poor 5.5

Average 10.9

Good 18.7

Very Good 28.6

Excellent 36.2

What are the best practices to minimize leadership derailment?

Open-Ended

How important is sales experience in the selection of high potentials?

%

Not Important 5

Somewhat Important 6

Important 26

Very Important 33

Critical 8

25

Does your organization position outside board membership for high-potential candidates?

Yes (%) No (%)39 61

Does your organization position outside board membership for high-potential candidates in non-profit organizations?

Yes (%) No (%)

51 49

Does your CEO maintain personal relationships with:

Yes (%) No (%)

Major Customers 93 7

Major Vendors 74 26

Industry Associations 94 6

Does your organization have a formal definition of high potential?

Yes (%) No (%)

71 29

Which of the following are most predictive of leadership success? (Select all that apply.)

%

Fit with company values and culture 84

Interpersonal skills 76

Self-awareness 76

Motivation to lead 57

Learning agility/cognitive ability 56

Previous experiences 51

Lack of derailer 30

Political Savvy 27

Other 19

Educational background 16

26

What processes do you use to identify top internal talent? (Select all that apply.)

%

Annual/bi-annual talent reviews 44

Succession planning 44

9-Box 36

Multi-rater evaluation 31

Assessment Tests/Centers 29

Other 19

Team building exercises 15

Credentials 14

Peer Nominations 7

Appraisal Ratings; 5-Box Grid; Executive Team Assessments; Management Nominations

How far down in your organization do you go in identifying and tracking high-potential leaders?

%

Individual contributors 32

First-level supervisors 9

Middle managers 10

Upper-level managers 2

What on-boarding processes do you use for top-level leaders? (Select all that apply.)

%

Planned rotation of meeting key individuals 60

90-day transition structure and support 56

Assimilation meetings 52

Individual feedback and coaching of new executives

to learn about strengths and development areas51

Assigned a mentor 41

Short-term assignments in different functional areas 22

Job shadowing 19

No on-boarding processes in place 5

27

How critical is focusing on the attraction, training, and retention of the millennial generation for your company?

%

Not important 8

Somewhat important 13

Important 21

Very important 28

Critical 30

Chally Group Worldwide is a sales and leadership talent manage-

ment company that was founded in 1973 through a grant from the

United States Justice Department. Chally’s talent analytics have been

improving productivity and reducing turnover for customers in over

49 countries. Customers choose Chally’s talent measurement process

for improved candidate selection and employee and organizational

development. Chally continues to fund and develop comprehensive

research in sales and management development including Chief Executive’s “Best Companies for Leaders” and World Class Sales Research.

Chief Executive Group was founded in 1977 to create and foster op-

portunities for CEOs to share their experiences and expertise within a

community of peers. It serves its CEO audience in a variety of media

including print, in-person, and online, which in turn provides advertis-

ers and sponsors multiple opportunities to develop long-term relation-

ships at the Chief Executive level. In addition to publishing Chief Execu-

tive magazine and www.chiefexecutive.net, the Chief Executive Group

brings CEOs together through its annual CEO2CEO Conference, open

to C-suite executives, and its by-invitation-only CEO Roundtables,

Symposiums, and Global Events.

Chally Group Worldwide 3123 Research Blvd. Dayton, OH 45420

937.259.1200 800.254.5995 www.chally.com

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