Harry meintassis bcl romania results_v5

Best Companies for LeadershipDoing things differently….

NOVEMBER 13TH 2013 Hay Group Team

2© 2013 Hay Group. All rights reserved

Agenda

Leadership challenge...

Global BCLs

What really makes a difference

Romanian BCLs

Insights & Take aways...

01

02

03

04

05


Times of Turbulence...

Global warming

Terrorism9/11

Internet

Technology bubble

Financial crisis

Tsunami BRIC countries

Globalization Global debt

EURO crisis

Social media

TARP

VOIP Aging population

Too big to fail

Information age

MillenialsLeadership crisis


The six megatrends for leadership

Climate change

and environmental

impact

Globalization 2.0

01Individualization

and value

pluralism

02Demographic

change

03

04Digital

lifestyle

05Technology

convergence

06


The market is becoming more volatileand unpredictable

10.0

8.4

Average CEO tenure (years)

2000 2012

Shorter tenure of CEOs

67

15

Average lifespan S&P500 (years)1920 2012

The average lifespan of a S&P

500 company has decreased

Growth has become

more unpredictable

0

20

40

60

80

19

50

19

60

19

70

19

80

19

90

20

00

20

10

5-

ye

ar

ave

rag

e r

eve

nu

eg

row

th v

ola

tility

(%

)

…companies are facing largechanges in profitability

322

Digital data explosion –

global digital information

created and shared

0

1

2

3

4

5

6

7

8

20

05

20

07

20

09

20

11

20

13

E

20

15

E

Zettabyt

es


A worldwide survey of best practice

Region

Number of

respondents

Worldwide More than 18,000

Europe More than 7,000

Romania More than 1,600

Regional distribution

Source: Hay Group 2013 Best Companies for Leadership study

More than 1,600

employees

participated in

the study in

Romania


The study results apply to a large number of organisations

501 million to

1 billion*

15.9%

Under

500 million*

34.8%

1 billion to

5 billion*

20.2%

6 billion to

10 billion*

7.5%

Over

10 billion*

21.6%


Note: * Annual revenue in US$

Participation

from 125countries

Over 18,000 individuals participated in the study from 2,200 organizations


Methodology

Who participates? Hay Group invites organizations from around the globe to

participate in the study. The survey is open to all employees of any organization.

Evaluation Methodology

Respondents assessed the leadership development practices at their own

organization on a critical items of leadership index.

Peer nominations. Respondents select three organizations that they believe are

the Best Companies for Leadership (organizations that are perceived to be

doing a good job of growing and developing their talent).


2013 global top 20 Best Companies for Leadership

01 Procter & Gamble

02 Microsoft

03 General Electric

04 Coca-Cola

05 Unilever

06 IBM

07 Wal-Mart

08 McDonald's

09 Telefónica

10 Facebook

11 Intel

12 Samsung

13 3M

14 Nestlé

15 Siemens

16 Oracle

17 Citigroup

18 Caterpillar

19 Toyota

20 Ford Motor


The Best Companies for Leadership provide higher shareholder returns

Total shareholder returns

14.0%

8.6%

3.0%

16.0%

7.1%

1.7%

Top 20 S&P 500

Ten years

Five years

One year

Note: * Average total shareholder returns for the BCL global top 20 versus the S&P 500


All employees have the

opportunity to develop and

practice the capabilities

needed to lead others

This organization actively

manages a pool of

successors for mission

critical roles

There are a sufficient

number of qualified internal

candidates who are ready

to assume open leadership

positions

Leaders create a work

climate that motivates

employees to do their best

The Best Companies for Leadership build talent for the future

The BCLs are better positioned for talent now and in the future

74

66

73

51


85

63

90

82

Global Top 20 Europe Top 10

Per cent of respondents

73% 44%

55% 47%

All others


All employees have the

opportunity to develop and

practice the capabilities

needed to lead others

This organization actively

manages a pool of

successors for mission

critical roles

There are a sufficient

number of qualified internal

candidates who are ready

to assume open leadership

positions

Leaders create a work

climate that motivates

employees to do their best

The Best Companies for Leadership build talent for the future

The BCLs are better positioned for talent now and in the future

74

66

73

51


85

63

74

66

53

90

82

83



Romania Top 10


6686

Our leaders are change agents

who initiate change towards

higher environmental standards

7983

Actively applies sustainable and

energy efficient policies

Leaders are advocates for

environmentally responsible

business practices

7389

We actively recruit

cultural minorities

4871

A strong focus on global awareness and environmental sustainability




61

59

34

56

All others


6686

Our leaders are change agents

who initiate change towards

higher environmental standards

7983

Actively applies sustainable and

energy efficient policies

Leaders are advocates for

environmentally responsible

business practices

7389

We actively recruit

cultural minorities

4871

A strong focus on global awareness and environmental sustainability


86

42

90

84



Romania Top 10


Best Companies are focused on creating an engaged working environment

Leaders work hard to connect

people with projects that are

personally meaningful to them

Leaders are culturally savvy

and have the skills to work

effectively with diverse teams

Employees are equipped with

the right tools to work

effectively outside the office

When people move between

projects, we are still effective at

creating well-organized teams


6682

66787784

7082



59

61

55

64


Best Companies are focused on creating an engaged working environment

Leaders work hard to connect

people with projects that are

personally meaningful to them

Leaders are culturally savvy

and have the skills to work

effectively with diverse teams

Employees are equipped with

the right tools to work

effectively outside the office

When people move between

projects, we are still effective at

creating well-organized teams


6682 60

6678 597784 86

7082 83



Romania Top 10

But what really makes them different?

In order to survive, organizations need to continually transform themselves –

In order to survive, organizations need to continually transform themselves –while still maintaining excellence in their current business –

In order to survive, organizations need to continually transform themselves –while still maintaining excellence in their current business – they need to be ambidextrous


The Best Companies focus on operational excellence

Senior leaders focus attention on

running established lines of

business profitably and smoothly

7589

Utilizes rewards based on

rigorous measurements of

performance against goals

5882

5775

Provides incentives to encourage

operational efficiency

Top 20 All others




The Best Companies focus on operational excellence


Senior leaders focus attention on

running established lines of

business profitably and smoothly

Utilizes rewards based on

rigorous measurements of

performance against goals Provides incentives to encourage

operational efficiency

8389 89

6782 77

6375 69



Romania Top 10


And encourage and drive innovation

The Best Companies know operational excellence isn’t enough

Senior leaders are willing to take

business risks to support the

growth of the organization

6987

Employees in new start-up or

innovation areas have equal

importance to those driving

operational improvement

5680

5578

Employees spend time discussing

customer’s future needs

5877

Rewards employees for really

new and different business ideas

Top 20 All others




And encourage and drive innovation

The Best Companies know operational excellence isn’t enough


Senior leaders are willing to take

business risks to support the

growth of the organization

Employees in new start-up or

innovation areas have equal

importance to those driving

operational improvement

Employees spend time discussing

customer’s future needs

Rewards employees for really

new and different business ideas

8287 84

6880 84

6777 77

7178 70



Romania Top 10


Senior leadership sets the tone and bridges the gap…

The top team has clearly articulated

a set of organizational values that

guide behavior

7794

Senior management works together

to support the overall objectives of

the organization

7691

7090

Senior leaders communicate the

firm’s survival depends on adapting

to evolving market trends

7390

Leaders create a work climate

that motivates employees to do

their best

Senior leaders at the Best Companies are champions

Top 20 All others




Senior leadership as change leaders …

The top team has clearly

articulated a set of organizational

values that guide behavior

Senior management works

together to support the overall

objectives of the organization

Senior leaders communicate the

firm’s survival depends on

adapting to evolving market trends

Leaders create a work climate

that motivates employees to do

their best

Senior leaders at the Best Companies are champions


9394 94

8491 91

8290 83

8690 89



Romania Top 10


19

28

31

39

49

41

39

55

32

51

53

68

69

70

72

80

0 10 20 30 40 50 60 70 80 90

And are focused on enabling the middle

Leadership development activities available for new to mid-level managers

Classroom-based leadership

training

Web-based leadership modules

360 degree feedback

assessments

Additional developmental

activities/special projects

Mentoring by senior manager/

executive

Coaching by a trained

internal coach

Company sponsored community/

volunteer assignments

Executive MBA program

Top 20 All others



19

28

31

39

49

41

39

55

32

51

53

68

69

70

72

80

0 10 20 30 40 50 60 70 80 90




training


360 degree feedback

assessments




executive


internal coach




Top 20 All others



4

25

47

55

62

65

56

72

32

51

53

68

69

70

72

80

14

30

34

50

55

73

54

65

0 10 20 30 40 50 60 70 80 90




training


360 degree feedback

assessments




executive


internal coach






Romania Top 10


4

25

47

55

62

65

56

72

32

51

53

68

69

70

72

80

14

30

34

50

55

73

54

65

0 10 20 30 40 50 60 70 80 90




training


360 degree feedback

assessments




executive


internal coach






Romania Top 10


2013 Romania Top 10 Best Companies for Leadership

01 Coca-Cola

02 Vodafone

03 Unilever

04 IKEA

05 Siemens

06 Hewlett-Packard

07 Raiffeisen

08 Renault

09 OMV Group

10 ING


Summary findings

Focus on operational excellence

Smooth operations, high profitability levels, make decisions quickly

Do we promote Innovation enough?

Rewarding generation of new ideas

...but a “Hard” evaluation of projects...

Measuring process improvement

A growing culture of leadership and learning

Connecting people with meaningful projects

Generating loyalty ; Providing vision and inspiration

Opportunities to develop leadership abilities vs “formal” leadership

CSR is an important topic on leaders’ agenda

We need people who are adept to thinking through

complex scenarios, and a ere able to handle

ambiguity and complexity

EVP CHRO McDonald’s

Leaders are expected to both build the business

and people within the organisation – it is the

greatest part of our performance evaluation

CHRO Procter & Gamble


Are you an ambidextrous leader?

What we can learn from the best

Senior leaders need to

be active champions

Grow the right culture that values expertise, discipline, collaboration and customer centricity

Leadership Team Bridges the gap between operational excellence and innovation.

01 02 03Encourage leaders to

develop the courage

and willingness to do

something different

Lead with agility, mindfulness and speed

Actively “involve” and develop the middle

04 05 06

Times have changed..It is time that we do things differently…

Appendix: Romania’s responses to all survey questions

05


While companies use differentiated development approaches

Senior Managers

1360 degree feedback on leadership skills 71%

2External leadership development programs 65%

3Classroom-based leadership training programs 57%

4Individual coaching by an external coach 56%

5Additional developmental activities/special projects 51%

Middle Managers

1Business courses (e.g. finance, marketing) 75%

2Classroom-based leadership training programs 72%

3360 degree feedback on leadership skills 65%

4Additional developmental activities / special projects 62%

5External leadership development programs 57%


Response to all survey questions (1/4)

No. Question

Very accurate/somewhat accurate

Global Top

20

Europe Top

10

Romania

Top 10

Romania All

Other

Q1 Leaders create a work climate that motivates employees to do their best 90% 82% 83% 78%

Q2 Actively manages a pool of successors for mission critical roles 85% 63% 74% 62%

Q3 Has a high proportion of women in senior leadership positions 59% 49% 62% 64%

Q4 Other companies actively try to recruit my company's employees 85% 73% 72% 58%

Q5 You are only expected to lead when you have a formal position of authority 29% 23% 32% 38%

Q6 Makes it easy for people to work from home 61% 45% 40% 27%

Q7 Requires an appreciation of global issues as a key job requirement 79% 55% 63% 55%

Q8 There are a sufficient number of qualified internal candidates who are ready to

assume open leadership positions at all levels74% 66% 66% 57%

Q9 Views helping employees achieve work-life balance as a priority 65% 63% 61% 56%

Q10 The top team has clearly articulated a set of organizational values that guide

behavior94% 90% 93% 87%

Q11 Leadership development programs better enable employees to deliver on my

company's goals/strategies84% 72% 80% 71%

Q12 Self-organizing project teams are the main way work is accomplished 61% 59% 43% 42%

Q13 Senior leaders personally spend time actively developing others 74% 65% 70% 71%

Q14 Employees are encouraged to learn in areas outside their area of expertise 70% 68% 77% 76%

Q15 Everyone at every level has the opportunity to develop and practice the

capabilities needed to lead others73% 51% 53% 45%

Q16 Uses corporate social responsibility to recruit employees 68% 58% 61% 44%

Q17 Employees are equipped with the right tools to work effectively outside the

office82% 66% 60% 48%

Q18 Male and female employees are paid the same rate for similar jobs 81% 87% 87% 83%



No. Question


Global Top

20

Europe Top

10

Romania

Top 10

Romania All

Other

Q19 Our leaders are change agents who initiate change towards higher

environmental standards86% 66% 90% 73%

Q20 We actively recruit cultural minorities 71% 48% 42% 32%

Q21 Has introduced an on-boarding program to help new parents return to the

workplace and focus on their careers43% 32% 30% 26%

Q22 Has an organizational structure that favors quick communication paths 78% 65% 71% 72%

Q23 When people move between projects, we are still effective at creating well-

organized teams78% 66% 59% 59%

Q24 Leaders have the ability to generate personal and organizational loyalty 84% 70% 68% 69%

Q25 More work between leaders is conducted when they are in different physical

locations58% 51% 48% 39%

Q26 Has a 'family friendly' corporate culture to support employees raising children 65% 60% 68% 62%

Q27 Leaders are advocates for environmentally responsible business practices 89% 73% 86% 77%

Q28 Leaders work hard to connect people with projects that are personally

meaningful to them82% 70% 83% 76%

Q29 Leaders are culturally savvy and have the skills to work effectively with

diverse teams84% 77% 86% 80%

Q30 Actively applies sustainable and energy efficient policies 83% 79% 84% 70%

Q31 Uses new technologies (such as digitalization and web and video based

media) to cut costs and increase flexibility of communication86% 81% 87% 85%

Q32 Focuses on older employees in order to avoid early retirement and keep them

motivated42% 33% 21% 33%

Q33 Senior management works together to support the overall objectives of the

organization91% 84% 91% 85%

Q34 People at my level often end up working at cross-purposes because

management gives us conflicting objectives30% 23% 14% 13%



No. Question


Global Top

20

Europe Top

10

Romania

Top 10

Romania All

Other

Q35 Management systems are flexible enough to allow us to find and address new

kinds of opportunities71% 61% 56% 56%

Q36 Runs unprofitable projects to try new things 48% 32% 12% 16%

Q37 Groups/projects dedicated to exploring or starting up new kinds of products or

services are measured and rewarded using exactly the same metrics as

established lines of business

55% 54% 59% 52%

Q38 Encourages employees to spend much time discussing customers’ future

needs78% 71% 70% 64%

Q39 Provides structured opportunities for younger employees to promote

innovative ideas to senior leaders71% 63% 70% 69%

Q40 Treats failure (after a good effort) as a learning opportunity, not something to

be ashamed of72% 71% 67% 55%

Q41 Recognizes or rewards employees for really new and different business ideas 77% 67% 77% 69%

Q42 Views employees in new start-up or innovation areas as having equal

importance to those driving operational improvement80% 68% 84% 78%

Q43 Rewards and stimulates collaboration across business units to develop new

lines of business76% 67% 69% 65%

Q44 Provides employees access to resources for innovation, even though success

is not guaranteed68% 53% 54% 44%

Q45 Provides incentives to encourage operational efficiency 75% 63% 69% 54%

Q46 Rewards and stimulates collaboration across business units to improve

performance81% 64% 67% 67%

Q47 Encourages people to use appraisals and other feedback to improve their

performance89% 81% 94% 84%

Q48 Utilizes rewards or reprimands that are based on a rigorous measurement of

performance against goals82% 67% 77% 62%



No. Question


Global Top

20

Europe Top

10

Romania

Top 10

Romania All

Other

Q49 Provides people at my level with creative challenges rather than narrowly

defined tasks78% 65% 50% 36%

Q50 Encourages people at my level to set challenging/aggressive goals 89% 75% 83% 65%

Q51 Provides business leaders at the frontline all the decision-making authority

they need to respond to changing market conditions76% 65% 66% 58%

Q52 Senior leaders are effective at helping frontline employees understand our

long-term strategy and what it means for them84% 76% 78% 67%

Q53 Senior leaders make the relative importance of established versus new lines

of business clear to everyone79% 63% 74% 65%

Q54 Senior leaders communicate that the firm’s survival depends on adapting to

evolving market trends90% 86% 89% 77%

Q55 Senior leaders focus attention on running established lines of business

profitably and smoothly89% 83% 89% 84%

Q56 Senior leaders are willing to take prudent business risks, to support the growth

of the organization87% 82% 84% 76%

Harry meintassis bcl romania results_v5

Business

qualified

energy efficient

firms survival

operational

running established

level managers

organization

future leaders