What does it take to become a great CEO? There are many studies out there that compare
training programs to MBA schools. There
are profiles of great leaders and their key personality traits. But who are these people? Why is their influence so great in the
business world? How did they get to
where they are?
In going through the Harvard Business Review’s list of the 100
best CEOs, certain characteristics start to emerge. I would like to preference the following list
with saying that I am not implying that any of these are indicative of a good
leader. The list just shows the
breakdown of characteristics using percentages.
-
98% are male
-
97% are married
-
63% do not wear glasses
-
99% have a bachelors degree
-
Only 29% have MBAs
-
79% were promoted from within
That last figure is striking. 79% of the world’s leading CEOs were promoted
from within the company. That would
indicate that it is important to have a strong executive leadership-training
program. So who has the best executive
leadership program? According to the
Chally Group, a management consultancy firm, there are five companies that do
it the best. They looked at four
indicators:
1.
Having a formal leadership process in place
2.
The commitment level of the CEO, as measured by
the time and quality of involvement with the leadership process and development
program
3.
The depth of the leadership funnel as measured
by the percentage of senior management positions filled by internal candidates
as well as the percentage of middle management positions filled by internal
candidates
4.
The number of other companies that report
recruiting from the company being evaluated.
According to these measures, P&G ranks at the top. They are considered the “Navy Seals” of
management. Their focus on internal
development is highlighted by a unique promotion system. You cannot get promoted until the people who
work for you are ready to be promoted.
This creates a system and culture that promotes management refinement at
all levels. IBM ranks number 2 on the
list. Its Basic Blue for IBM Leaders,
Shades of Blue and Accelerate Executive Leaders Program for New Executives, and
Executive Insights for Newly Hired or Acquired Executives are all training/development
programs. Combined, these schools
develop 60,000 high potential mangers.
America’s top CEOs have done extraordinary things. They are usually rewarded well for their
efforts. But money is not the only
indicator of a good leader. Amazon’s
CEO, Jeff Bezos, made $1.4 million in total compensation last year. His salary was a humble $81,840. He also brought a 30% return on investments
for shareholders. The worst rated CEO, Michael
Fraizer from Genworth Financial, made $10.5 million a year. His return to investors was -19%.
A lot of debate has done into the idea that a good leader
can influence the outcomes for a company.
Evidence shows that a good boss does have a significant impact on the
work culture and profitability. There is
a profile of good leaders, but it is not all-inclusive. Having an MBA does not make you a great
leader. Often internal promotion is the
way to the top. Compensation for good
leaders does not indicate their level of success in the market place. While there are some common characteristics
of great CEOs, there is a lot of diversity in the top 100 leaders
Sources:
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.