FORTUNE has joined the human resources (HR) consulting firm Hewitt Associates and the HR services firm RBL Group to identify companies around the world that are best at attracting, developing and keeping business leaders. It's no coincidence that they turn out to be many of the world's top performing companies.
Developmental assignments are among the most important tools that great companies like IBM (No.1) use to build leaders - and that average companies rarely use at all. The importance of such assignments and how they're being adapted to pay off in today's global economy are two of the strongest messages emerging from the research behind Fortune's new ranking of the world's Top Companies for Leaders.
There’s no better time than the current Global Financial Crisis (GFC) to push people outside their comfort zone, yet downturns are precisely when some companies cut back on this valuable tool. Developmental assignments are an investment, so they incur costs before they pay a return.
The best companies tailor 'stretch' assignments to the future business environment, which is why "global" development has become the major theme among virtually all the companies in this ranking. Many of them--including Pacific & General (No. 2 on the list), GE (No.7), Colgate-Palmolive (No.12), and PepsiCo (No.20)--get most of their revenue from outside their home country.
"The next frontier in developmental assignments," says Hewitt principal Robert Gandossy, "is experiences that are more socially responsible."
Developing a broad program of stretch assignments isn't easy. Many corporate cultures are so addicted to the short term that they couldn't bear putting dollars into a new category of investment that will pay off only later.
But perspective is key.
Most of FORTUNE's Top Companies for Leaders have been around a long time. They all understand that leadership development is a long-term game. "We can't afford not to do this," says (No.14) Deere's HR executive Richard McAnally. "We're 172 years old. We're not just looking at the next year, but at the next several decades."
Most of FORTUNE's Top Companies for Leaders have been around a long time. They all understand that leadership development is a long-term game. "We can't afford not to do this," says (No.14) Deere's HR executive Richard McAnally. "We're 172 years old. We're not just looking at the next year, but at the next several decades."
How are you developing your people? Do you give them ‘projects’ that stretch them and that they can ‘own’?
Whether you are a small, medium or large business, development projects or, assignments work for the individual and the business.
Whether you are a small, medium or large business, development projects or, assignments work for the individual and the business.
Source: FORTUNE, December 7, 2009
