CASE E: LEADERSHIP FACTORIES

Chok Yan YongJalinee SriramanakumarMuhammad Khalid Bin Raja Abd AzizTan Yean Sang

Presented by:

1st December 2011

2. Do you think so-called leadership factories are also better places for non-leaders to work? Why or why not? Yean Sang, Jalinee

3. Assume you had job offers from the two companies that differed only in how often they produced CEOs. Would this different affect your decision? Yean Sang, Jalinee

4. Do these data give any credence to the value of leader selection and leader development? Why or why not? Khalid

1. How big is the factor do you think composition of the workforce is in likelihood of producing a CEO? Yan Yong

Top Ten Companies

2. Do you think so-called leadership factories are also better places for non-leaders to work? Why or why not? Yean Sang, Jalinee

3. Assume you had job offers from the two companies that differed only in how often they produced CEOs. Would this different affect your decision? Yean Sang, Jalinee

4. Do these data give any credence to the value of leader selection and leader development? Why or why not? Khalid

1. How big is the factor do you think composition of the workforce is in likelihood of producing a CEO? Yan Yong

Source: http://www.usatoday.com/money/companies/management/2008-01-08-ceo-companies_N.htm

McKinsey & Co.

Characteristics General Electric

11,000 (10) Size (employees) 300,000 (1)

16 (2) CEOs produced 26 (1)

690:1 (1) Odds 11,540:1 (10)

Leadership Factories

McKinsey & Co. Characteristics General Electric

One of the most prestigious firms in the management consulting industry

Overview World second largest company

A global management consulting firm

Nature of work Energy and technology infrastructure, entertainment, and finance industry

Higher composition of white-collar professionals

Composition of workforce

Just half of its employees are white-collar professionals

Source:http://www.sideroad.com/Management/best-ceo-great-ceo.html

SIMILARITIESFair

Resourcefulness Willingness to look at risk

Foresight

CEO and Manager

Source:http://www.sideroad.com/Management/best-ceo-great-ceo.html

4. Do these data give any credence to the value of leader selection and leader development? Why or why not? Khalid

1. How big is the factor do you think composition of the workforce is in likelihood of producing a CEO? Yan Yong

2. Do you think so-called leadership factories are also better places for non-leaders to work? Why or why not?

3. Assume you had job offers from the two companies that differed only in how often they produced CEOs. Would this different affect your decision?

Yean Sang, Jalinee

Yean Sang, Jalinee

Leadership Factories

Sustainable financial performance

Leadership development

Technical training

Career development

Some useful facts about GE

CEO factories land the best graduates right out of school, but that's largely because they have established a track record of executive success.

GE's alumni include the CEOs of Boeing (BA), Fannie Mae (FNM) and Pfizer (PFE). Other prominent GE alumni who did not make the list were Peter Loescher, CEO of German giant Siemens (a non-U.S. company) with 470,000 employees, and Tom Tiller, CEO of Polaris Industries (PII) 

GE is well known for its 52-acre leadership campus, known as Crotonville.

Source:http://www.usatoday.com/money/companies/management/2008-01-08-ceo-companies_N.htm

Normal Company

Focus on technical aspect

No proper leadership training program

Limited career advancement

Less personal satisfaction

Q2 Leadership factories are better places for non-leaders to work

Q3 Select company that are more often in producing CEOs

The Answer

Reasons

• Behavioral TheoriesPeople can be trained to be leaderBehavior can be improved

• Leadership is a must for career advancement

• Expanded skills and competencies

• Greater ownership

• More personal satisfaction with work

• That is reason we are learning HRM

What they say?

"The Top 20 Best Companies for

Leadership not only entered the

recession with stro

ng

leadership in place, they

maintained their commitm

ent to

preparing and retaining leaders –

and are highly committed to

developing leaders within their

ranks," said Rick Lash, Director in

Hay Group's Leadership

“For organizations to succeed, they will need to understand what key leadership elements are paramount in driving their organization toward growth. It’s more than just getting people to produce the right outcomes. It’s about getting them to be passionate about their work and grooming them to handle the challenges ahead. The Best Companies for Leadership have already figured this out,” said John Larrere, National Director of Hay Group's Leadership and Talent Practice

However….

Higher competitive Stressful workplace More effort is needed Personality

Picture : Poverty by Picasso 1903

4. Do these data give any credence to the value of leader selection and leader development? Why or why not?

1. How big is the factor do you think composition of the workforce is in likelihood of producing a CEO? Yan Yong

2. Do you think so-called leadership factories are also better places for non-leaders to work? Why or why not?

3. Assume you had job offers from the two companies that differed only in how often they produced CEOs. Would this different affect your decision?

Yean Sang, Jalinee

Yean Sang, Jalinee

Khalid

Top Ten Companies

With their deep pools of talent and vaunted leadership training, General Electric (GE), and Procter & Gamble (P&G) have long been popular places to poach talent.

Breeding Grounds for New CEOsBy Jena McGregor, April 30, 2009,http://www.businessweek.com/magazine/content/09_19/b4130038113861.htm "Every year, we have regretted

losses. Every year, we lose people we want to keep," says P&G CEO A.G. Lafley.

But Lafley takes some pride in P&G's alumni who have left, because it proves "We are a leadership engine and a talent machine."

Some Firms' Fertile Soil Grows Crop of Future CEOsBy Del Jones, USA TODAYhttp://www.usatoday.com/money/companies/management/2008-01-08-ceo-companies_N.htm?POE=click-refer

•Initiating Structure•Goal

Driven•Consider

ation•EQ

Behavioural Theories

•Work outside field of interest / expertise

Versatility / Adaptabilit

y

Sources:Generating leaders GE style, HR Managementhttp://www.hrmreport.com/article/Generating-leaders-GE-style/

Organization Behavior TextbookChapter 12, Leadership, page 414

Leadership Selection Program

Invest Time and Money

Identify Promising Leaders Early

Mentoring

Leadership Development as Part of their Organisation Culture

Leadership Development Program

Source:Lessons in leadership development from the worlds best….by George Ambler on Monday, October 8, 2007http://www.thepracticeofleadership.net/2007/10/08/lessons-in-leadership-development-from-the-worlds-best/

Q&A