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Top Companies for Leaders 2011 Study Insights and Best Practices Asia Pacifi C

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Top Companies for Leaders 2011 Study Insights and Best Practices Asia Pacifi C Consulting Talent & Rewards Top Companies for Leaders 2011 Study Insights and Best Practices Asia Pacifi c Aon Hewitt I Consulting 1 About Aon Hewitt's Top Companies for Leaders (TCFL) study is one of the the Study most comprehensive studies on organizational leadership practices around the globe. 478 organizations participated in the 2011 global study. Our fi rst study results, published in 2002, uncovered a link between fi nancial success and great leadership practices and identifi ed differentiating elements found only in Top Companies. We conducted this study again in 2003, 2005, 2007 and 2009. The data derived from these fi ve studies provided the foundation for our 2011 study which we believe to be the most comprehensive global study available on leadership to date. Aon Hewitt conducted the 2007, 2009 and 2011 Top Companies for Leaders studies in partnership with FORTUNE and The RBL Group. 2 Top Companies For Leaders 2011 Study Executive Organizations that have great leadership practices demonstrate strong fi nancial results over the long term. Leadership is the single most valuable competitive advantage today. While it helps in gaining an Summary edge over competition, it proves to be even more valuable as economies go through ups and downs. It was within this economic context that Aon Hewitt and its study partners - The RBL Group and FORTUNE - undertook the 2011 Top Companies for Leaders study. Globally, 478 companies participated in the research of which 152 companies were from Asia Pacifi c (APAC). A comprehensive evaluation process comprising of a scan of leadership practices and policies of organizations, in-depth interviews with HR leaders, CEOs and senior leaders, and fi nally blind judging from the shortlist, culminated in the Global Top Companies for Leaders. This research suggests that the biggest business challenge that organizations in Asia Pacifi c are grappling with today is 'Business Growth'. More than half the participating organizations rated 'Business Growth' as the most pressing challenge currently. 'Margin Pressures' and 'Increased Competition' are the two other top business challenges being faced by organizations in the region. A strong workforce, yet untapped business potential, enabling governments, entrepreneurial spirit and a large domestic demand for consumption defi ne the economies of APAC. It also explains the challenge of business growth. Organizations in the region have realized the need to develop a leadership pipeline that will enable this growth. Our research shows that the Top Companies have succeeded in creating and sustaining quality leadership. These Top Companies consider leadership development as a way of doing business. A comprehensive study of their leadership development practices brings out fi ve key themes that differentiate them from others: 1. Building a Leadership Brand: All of the Top Companies intentionally build a strong leadership brand and invest in opportunities for its senior leaders to cascade this leadership brand internally through various institutionalized processes. Top Companies also ensure external visibility of their leadership brand in order to attract top talent from the market. 2. Unrelenting Focus on Talent Assessment: All of the Top Companies have an institutionalized talent review process as compared to many of the other participants that do not have such a process. The Talent Review Process rigorously measures competencies, values and potential of the employees. They assess talent through multiple lenses and with great rigor. 3. Customized Learning Opportunity: Top Companies provide accelerated and customized learning for their top talent. One size does not fi t all for them. They emphasize one-to-one development interventions, such as exposure, coaching, mentoring, and action learning projects. 4. Taking Top Talent Out of Their Comfort Zone: Senior leaders encourage their top talent to take up new challenges outside of their comfort zones in order to create additional long-term value for the organization. To them, it is important to create a “creative tension” in the organization and bring out the best in their talent. 5. Diversity of Thought: Top Companies work toward increasing the diversity of their leadership group as part of the leadership strategy. These organizations make conscious efforts to build an inclusive workplace promoting cultural agility, global mindset and diverse experiences. Aon Hewitt I Consulting 1 Importantly, the study fi nds that the key to success at Top Companies is a maniacal focus on execution for all their leadership programs and processes. The CEO scorecard carries measures against leadership development. The top leaders are seen to champion each of these systems. The Board of Directors reviews the progress in board meetings and actually gets involved in strategic leadership development initiatives. Indices are used to measure effectiveness of the programs at frequent intervals. At Aon Hewitt, our take from the study is that leadership development is no longer an informal discussion in corner offi ces or board rooms. It has clearly evolved as a science. During the process of evaluating and shortlisting the Best of Asia Pacifi c organizations, we witnessed a passion, drive and a smart process for building a strong pipeline of leaders at the Top Companies. Clearly, a strong leadership development process creates a sustainable and diffi cult-to-replicate competitive advantage - a necessity for evolving high-growth businesses in growth economies of this region. 2 Top Companies For Leaders 2011 Study Contents Page 4 Top Companies for Leaders 2011 5 Business Challenges in Asia Pacifi c 6 Asia Pacifi c Top Companies for Leaders Study Highlights • Building a Leadership Brand • Unrelenting Focus on Talent Assessment • Customized Learning Opportunity • Taking Top Talent Out of Their Comfort Zone • Diversity of Thought 32 Leadership Development Health Review Questionnaire 33 How the Top Companies Were Selected 34 Asia Pacifi c Judges’ Panel 35 Research Partners 36 Top Companies for Leaders Study Reports, Info-share and Strategy Sessions Aon Hewitt I Consulting 3 Top Companies Global – Top 25 for Leaders 2011 1. IBM Corporation 14. Deere & Company 2. General Mills, Inc. 15. 3M Company 3. The Procter & Gamble Company 16. Eli Lilly and Company 4. Aditya Birla Group 17. McKinsey & Company 5. Colgate-Palmolive Company 18. L’Oréal 6. Hindustan Unilever Limited 19. Unilever plc 7. ICICI Bank Limited 20. Siemens AG 8. McDonald’s Corporation 21. Intel Corporation 9. Whirlpool Corporation 22. China Vanke Co., Ltd. 10. PepsiCo, Inc. 23. Wipro Limited 11. General Electric Company 24. Bharti Airtel Limited 12. Banco Bilbao Vizcaya Argentaria S.A. (BBVA) 25. Novartis AG 13. Natura Cosméticos S.A. Asia Pacifi c – Top 20 1. Aditya Birla Group 11. Advanced Info Service PLC 2. Hindustan Unilever Limited 12. HNA Group 3. ICICI Bank Limited 13. S P Setia Berhad 4. China Vanke Co., Ltd. 14. Kasikorn Bank PLC 5. Infosys Technologies Limited 15. Coca-Cola Amatil Limited 6. Wipro Limited 16. Oil & Natural Gas Corporation Ltd. 7. Mahindra & Mahindra Limited 17. Mindtree Limited 8. Bharti Airtel Limited 18. Marico Limited 9. Whirlpool of India Ltd. 19. NZ Refi ning 10. Kotak Mahindra Bank Ltd. 20. Commonwealth Bank of Australia Asia Pacifi c - Special Recognition • 3M China Limited • Accenture India • Aegis Limited • Pitney Bowes Software India • Schneider Electric India • Titan Industries Limited 4 Top Companies For Leaders 2011 Study Business Business leaders in Asia Pacifi c are witnessing paradoxical times. On one hand, the region is full of opportunities; on the other hand, the global business scenario throws up signifi cant challenges. In Challenges course of the TCFL study 2011 we asked companies to share their top challenges. in Asia Pacifi c The following top 5 business challenges emerged: 1. Business Growth: In these times of economic uncertainty, managing business growth is the most pressing challenge for organizations across Asia Pacifi c. Growth continues to be the primary strategy for this region. 2. Margin Pressure: As more and more companies vie for the same opportunity in this market, margin pressure is a big challenge that business leaders are facing. Post 2008, companies no longer want growth at any cost and therefore productivity and profi tability are cornerstones of the growth strategy for corporates today. 3. Increased Competition: As large parts of the globe witness continued economic uncertainty and more companies look at Asia for growth, Asian companies see increased competition as inevitable. Companies that manage to consistently delight the customers will be able to leverage the growth opportunity better. 4. Globalization: Local businesses are either going global or are facing increased competition from global fi rms. This region is expected to be a major source of business growth for many multinational corporations (MNCs). Globalization is a pressing challenge for both local as well as MNCs in APAC today. 5. Quality of Leaders: In a way this challenge emerges out of the four business challenges above. Companies are realizing that they need to develop quality of leaders who can grow the business profi tably, create distinctive competitive advantage, and manage cross-cultural operations. Most organizations realize that they currently are not built to grow quality leaders fast enough to meet these challenges. However Top Companies have succeeded in addressing these challenges and are taking immediate actions to move ahead in the talent race. The next section, the Asia Pacifi c Top Companies for Leaders Study Highlights, describes in more detail what these Top Companies are doing differently to develop leaders and leadership pipelines that help them combat the above challenges. Aon Hewitt I Consulting 5 Asia Pacifi c The winners of the Top Companies for Leaders study are well positioned to face the challenges mentioned in the earlier section. They do this by developing a robust leadership pipeline. These Top Companies leading organizations - with a mix of focus, diligence, perseverance, diversity, creativity and for Leaders innovation - are not shying away from their leadership agenda amid the complexities of a rapidly growing economy.
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