P&G named 'best company for leadership'

According to a study by Hay Group, a global management consulting firm, the “Best Companies for Leadership” are purposeful and strategic in developing, enabling and motivating leaders throughout the organisation to do their best. 

In fact, 73 per cent of the top 20 companies reported giving everyone at every level of the organisation the opportunity to develop and practise the capabilities needed to lead others, compared with only 47 per cent of all other companies. 

These future-focused companies also look ahead to what roles are – and will be – mission-critical to their success, and then intentionally identify and develop leaders with the right skills to fill those roles. 

To facilitate this process, the top 20 companies reported doing more to develop their population of new and mid-level managers, with higher usage rates of Web-based leadership modules (72 per cent vs 39 per cent at all other companies), classroom-based leadership training (80 per cent vs 55 per cent) and mentoring by a senior manager or executive (68 per cent vs 39 per cent).

“The Best Companies for Leadership recognise that many of the skills once required solely for senior leadership roles – high levels of emotional intelligence, commitment to continuous learning, analytical thinking – are now critical at every level of the organisation,” said Ruth Malloy, global managing director of Hay Group’s leadership and talent practice and co-leader of the Best Companies for Leadership Study. 

“To excel in today’s highly complex and competitive business environment, the ‘Best Companies’ are taking deliberate steps to develop and reward these competencies to enable their organisations to achieve operational excellence today, while driving innovation for tomorrow.”

In fact, 82 per cent of the Best Companies for Leadership use rewards or reprimands that are based on rigorous measurements of performance against goals, compared with only 58 per cent of all other companies. Similarly, 89 per cent of the top 20 companies encourage employees to set challenging or aggressive goals, versus only 69 per cent of all other companies.

At the same time, the Best Companies for Leadership foster cultures that encourage innovation. Seventy-six per cent of the top 20 reward and stimulate cross-business-unit collaboration to develop new business lines, compared with only 54 per cent of all other companies. 

The top 20 companies are also more likely to encourage employees to learn in areas outside of their areas of expertise (70 per cent vs 48 per cent) and to recognise and reward employees for really new and different business ideas (77 per cent vs 58 per cent).

“It’s becoming harder to create and run profitable businesses in traditional ways,” said Rick Lash, director in Hay Group’s Leadership and Talent practice and co-leader of the Best Companies for Leadership Study. 

“Organisations have to think differently about how they relate to their markets. The ‘Best Companies’ are adept at anticipating and meeting client needs at multiple points along the consumer spectrum. They’re shifting from selling products and services to becoming integrated business partners that can help their customers solve for pressing needs.”

In fact, 78 per cent of the top 20 companies reported that their organisation encouraged employees to spend much time discussing customers’ future needs, compared with only 55 per cent of all other companies.

Correspondingly, 90 per cent of the top 20 reported that senior leaders communicated that the firm’s survival depended on adapting to evolving market trends, compared with 70 per cent at all other companies.

“In times of rapid change, many companies lose their focus, failing to adequately engage and enable their current workforces as the organisations shift to achieve short-term or immediate objectives,” Lash said. 

“Those companies that simultaneously execute on immediate priorities while aligning their employees with a shared sense of purpose, and develop leaders at all levels to contribute and act on innovative ideas, have a better chance at financial success.”