Leading in a global environment What Thai Leaders Can Learn from the Best Companies for Leadership 16 March 2012 Bundit Chamrastarangkool
Agenda 1 2 3 4 Latest survey findings Global trends and best practices Key insights for Asia and Thailand Conclusions: What we can learn from the best 2
01 Latest survey findings
The study results apply to all organizations Regional distribution Region Per cent Europe/Middle East/Africa 27.5 North America 26.6 South America 23.7 Asia 19.7 Pacific 2.6 Total 100.0 Source: 2010 Best Companies for Leadership study Revenue distribution Annual revenue in US$ Per cent Under 500 million 32.0 501 million to 1 billion 13.5 1 billion to 5 billion 16.4 6 billion to 10 billion 6.6 Over 10 billion 31.5 Total 100.0 Source: 2010 Best Companies for Leadership study 3,769 individuals participated in the study 4
Top 20 Best Companies for Leadership 1 General Electric 2 Procter & Gamble 3 Intel Corporation 4 Siemens 5 Banco Santander 6 The Coca-Cola Company 7 McDonald s Corporation 8 Accenture 9 Walmart 10 Southwest Airlines Brown = Consumer Goods and Services Blue = Technology = New this year 11 ABB Ltd 12 Microsoft 13 PepsiCo 14 Goldman Sachs 15 Hewlett-Packard 16 Unilever 17 Cisco Systems 18 FedEx 19 Pfizer Inc 20 BASF 5
Top 5 Asia s Best Companies for Leadership 1 Samsung Electronics 2 HSBC Holdings 3 Tata & Sons 4 Infosys Launching of 2012 Thailand BCL Twenty-minute online survey in Thai language starting in Q4 this year 5 Nissan Motors Honorable mentions Hai-er Group Huawei Technologies Lenovo Group LG Corporation Singapore Telecommunications 6
The best companies for leadership outperform others over the long run 7
Per cent Top 20 produce better shareholder returns than S&P 500 Top 20 vs S&P 500 20 15 14.42 13.84 10 5 6.17 1.27 Top 20 S&P 500 0 (5.0) (2.17) (0.17) (0.76) (10.0) (6.77) 1 year total return 3 year total return 5 year total return 10 year total return Source: S&P Compustat data as of 7/30/2010 8
Per cent of respondents Best Companies for Leadership create better leaders Develop and enable Include all employees Ensure successors 100 90 80 70 60 50 40 30 20 10 0 100 100 100 73 69 69 63 Leadership development programs enable employees to deliver on goals/strategies 66 69 All employees have the opportunity to develop and practice the capabilities needed to lead others 49 39 42 There are a sufficient number of internal candidates ready to assume open leadership positions Top 20 Asia Thailand Rest of World Source: Hay Group 2010 Best Companies for Leadership study 9
02 Global trends and best practices
Increasing challenges and opportunities for organizations Globalization Shift in the global economy Need to operate in global markets with local anchoring Leading virtual teams from different cultures Operating in a flatter, more matrixed environment Managing across functions and geographies without authority Increased use of technology Driving innovation while reducing costs Collaborating/partnering with outside constituents Focusing on initiatives that will provide the greatest value 11
Increasing challenges and opportunities for organizations New trends and demographic changes China and India will contribute an increasingly significant proportion of global talent Women make up over half of the global educated workforce Key leadership skills will be lost from the workplace as boomers exit the workforce There is a growing number of inexperienced young managers, who need to assume senior leadership roles without the requisite leadership skills, particularly the case in emerging economies Employees expect more from organizations Purpose driven leadership more than just generating profits Work/life balance while meeting the needs of the organization 12
What organizations value most in leaders Large gaps Inspiring leadership 27 15 Technical competence/expertise 23 Global Top 20 Asia Thailand Strategic thinking Execution 24 Ethics 16 25 Decision making Teamwork Capacity to learn 5 Social responsibility 3 2 30 20 20 12 10 37 40 35 39 37 35 33 36 45 54 60 60 64 Source: Hay Group 2010 Best Companies for Leadership study 13
Focus in the attraction and development of future leaders Focus of Top 20 Targeted leadership training and development 66 73 100 Stretch assignments 66 75 90 International opportunities 27 23 55 Mentoring programs 35 39 32 Early long-term incentive opportunities 15 13 10 Fast track promotion Higher pay and bonus opportunities 10 15 23 38 38 42 Global Top 20 Asia Thailand Popular in the past Source: Hay Group 2010 Best Companies for Leadership study 14
03 Key insights for Asia and Thailand
Percent of respondents Pitting Asia s best against the global top 20 Large gap 100 90 80 97 79 92 93 87 79 Global Top 20 Asia Top 5 70 60 65 50 40 44 30 20 10 0 Openness to new ideas Authority & delegation of power Purpose driven leadership Succession planning 16
Percent of respondents Openness to new ideas Large gaps 100 90 80 70 60 100 82 73 72 95 85 81 76 95 71 59 54 Global Top 20 Asia Top 5 Asia Rest of World 50 40 30 20 10 0 Employees are encouraged to learn in areas outside of their area of expertise Ideas that come from subsidiary leaders are just as likely to be implemented as those from headquarters Local leaders are encouraged to participate in decisions made at headquarters 17
Percent of respondents Authority & delegation of power Critical difference 100 90 80 70 60 50 40 95 38 77 90 50 47 59 Global Top 20 Asia Top 5 Asia Rest of World 30 20 19 10 0 You are expected to lead even if you do not have a formal position of authority Subsidiary leaders have the autonomy to decide on local key functional issues 18
04 Conclusions: What we can learn from the best
Depth of our research and data base 7 years of Best Companies for Leadership 14 years of Fortune World s Most Admired Companies 60 years of R&D 8 thousand organizations 40 thousand executives assessed 5 million assessments in data base 20
Question?
Additional resources: Best Companies for Leadership 01 02 03 Micro site www.haygroup.com/bestcompaniesforleadership Questions? (Client) Thachasha.Phuangpornsri@haygroup.com Bundit.Chamrastarangkool@haygroup.com Questions? (Media) Sirintip_Kudtiyakarn@haygroup.com 22