Leadership Development Benchmarking Study - Best Practices, LLC

Leadership DevelopmentBenchmarking Study: Identifying& Preparing LeadersInternet Benchmarking SurveyBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts workbased on the simple yet profound principle that organizations can chart acourse to superior economic performance by studying the best businesspractices, operating tactics and winning strategies of world-class companies.This sample is an excerpt drawn from a benchmarking survey designed touncover directional indicators of Leadership Development trends.Global Benchmarking Council Members can sponsor two customized surveys ayear as a benefit of membership. To learn more about Global CouncilMembership, contact:Kristen Smithwick1-888-331-5766ksmithwick@best-in-class.comwww.globalbenchmarking.com2Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Leadership DevelopmentBenchmarking Study: OverviewBest Practices, LLC administered this survey and compiled the resultson behalf of the Global Benchmarking Council.Study ObjectiveKey Topic AreasThe goal of this survey wasto determine how companiesidentify lower-levelemployees with leadershippotential and develop theminto future leaders.• Leadership IdentificationProcesses• Leadership IdentificationCriteria• Leadership DevelopmentActivities3Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Formal Identification CriteriaThe majority of benchmark partners do not have an established set ofcriteria they use to spot leadership potential in lower-level employees.The benchmark company that does have a formal set of criteria looksat academic background and demonstrated leadership skills.Does your company have a formal set of criteriafor identifying leadership potential in employeesthat are below director level?1YesNo48Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Leader Identification CriteriaStrategic thinking emerged as the most important quality in futureleaders. Establishing and executing plans is also an importantleadership quality among the benchmark class.Leadership QualitiesThinking strategicallyEstablishing and executing plansInfluencing othersLeading courageouslyCommunicating informationCustomer orientationAnalytical skillsBuilding & sustaining relationshipsIntellectual curiosityBusiness senseParticipating as a team memberDemonstrating adaptabilityDecision-making skillsLeveraging diversityWhat are the most important qualities used inidentifying these potential leaders?001111122233349N=50 1 2 3 4 5# of CompaniesCopyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Formal Development ProcessMore than half of the benchmark class has a formal process fordeveloping lower-level employees into company leaders.Once potential leaders are identified,does your company have a formal process fordeveloping these employees?23YesNo10Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Developing LeadersBenchmarked companies indicated they have multiple activities fordeveloping leaders. Two companies use all four activities to developleaders, and the other three companies use a combination of twoleader development activities. Of all companies, internal and externalfeedback is the most popular development activity.What activities does your companyundertake to develop these future leaders?Provide with internal andexternal feedback4ActivitiesLeadership classes/retreatsJob rotationsMentoring334N=50 1 2 3 4 5# of Companies11Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Leadership DevelopmentCommentsBenchmark companies that have established processes for identifyingand developing leaders proactively search for leadership potential inemployees.“There is full analysis ofperformance/potential ofall managers by seniorstaff in group meetings.Feedback is thenprovided to individuals bya cognizant director.”“We actively identify HighPotentials and try to do agood job to see they getexposed to mentoring, jobrotation and careercounseling.”- Company D- Company C12Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE

Capability SummaryThis presentation was drawn from primary research conducted onthe behalf of a Global Benchmarking Council member.Executives at top companies turn to Best Practices, LLC foractionable and insightful solutions based on the world-classoperations of other leading organizations.Let our researchers uncover the next great insights for youroperation through our Internet surveys.Kristen Smithwick1-888-331-5766ksmithwick@best-in-class.comwww.globalbenchmarking.com13Copyright Best Practices, LLCBEST PRACTICES, LLCACCESS AND INTELLIGENCE FOR ACHIEVING WORLD-CLASS EXCELLENCE