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Leadership Practices Scoreboard

Global Leadership Forecast 2018

Across 2,400+ organizations, which practices have the strongest payoffs for leadership and financial performance? 

The chart below identifies practices that global organizations frequently use and how those practices relate to the organizations’ Financial Performance (based on composite of operating margin, EBITDA, revenue growth, and return on equity).

Leadership Practice
(sorted in order of highest to lowest frequency of organizational use)
Financial Performance Financial Composite Percent Used Percent Using
Leaders practice and receive feedback on key skills with their managers.
61%
Leadership competencies serve as the foundation for multiple leadership talent management systems. 61%
Talent review processes have a reputation for being fair and objective.
61%
Competencies required for success in key leadership positions are clearly defined.
58%
Information from assessments and simulations is used to guide leader development plans.
53%
Information from assessments and simulations is used to make leadership hiring and promotion decisions. 50%
Systematic processes (e.g., strategic talent planning) are used to identify the quantity and quality of leadership required to drive future business success.
50%
We know the up-to-date status of our leadership talent capability across the organization.
48%
Leaders are offered a library or learning system from which they can choose on- demand courses. 48%
Leaders regularly review their development plan with their managers.
47%
Leadership development modules are positioned with leaders as a planned sequence rather than as independent events.
45%
We have a dedicated learning experience manager (someone who designs and sequences personalized, engaging learning for leaders).
37%
We use a formal process for identifying employees who could become global/multinational leaders.
36%
We use formal programs to ensure smooth leadership transitions at all levels.
36%
Formal mentoring programs are available for leaders.
35%
Our leaders have high quality, effective development plans. 35%
Ratings have been eliminated from our performance management process.
19%

No circle = nominal impact

= moderate impact

= strong impact

Some practices are not enough

Checking the box on leadership practices is simply not enough. It’s about what you do with those practices that matters most. And the data here goes to show it. Some examples to compare include:

  • Having leaders who have high quality, effective development plans = Nominal Impact
    Having leaders who regularly review their development plan with their manager = Moderate Impact
  • Using assessments and simulations for traditional hiring and promotion decisions = Nominal Impact
    Using assessments and simulations to inform leadership development plans = Moderate Impact
  • Offering an on-demand learning library = Nominal Impact
    Having a dedicated learning experience manager = Strong Impact
  • Having leadership competencies serve as the foundation for multiple leadership talent management systems = Nominal Impact
    Clearly defining competencies required for success in key leadership positions = Moderate Impact

So, does this mean to stop practices that are not significantly linked to financial success? Certainly not. But, you may think about ways to advance those practices to create more value for your organization. The examples above are not mutually exclusive, so you may just need to augment your practices in some areas. Or you may decide to stop one practice to make more time and resources for another that can benefit the company more ways.  

The full Global Leadership Forecast 2018 compares 34 leadership practices for Financial Performance (as shown above), as well as Program Quality (aggregate leader-rated quality of assessment, development, and performance management programs) and Bench Strength (supply of capable leaders for critical leadership roles within the next three years). Download the full report to see the results. www.ddiworld.com/glf2018

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