How top companies breed stars
The world's best companies realize that no matter what business they're in, their real business is building leaders. Here's how the champs do it.
By Geoff Colvin, Fortune senior editor-at-large
September 20 2007: 10:02 AM EDT
Excerpts
Most companies maintain their office copiers better than they build the capabilities of their people, especially the ones who are supposed to be future leaders, and for decades they've gotten away with it.
"Organizations need talented people a lot more than talented people need organizations."
It seems young people understood the new nature of today's economy before a lot of CEOs did, and they insist on jobs that will keep making them better.
Companies are finding that the advantages of building a reputation for developing talent are greater than they may have thought.
"Companies that provide people with opportunities to learn and grow become talent magnets, drawing scarce talent in droves."
Lots of companies claim they're interested in developing leaders, but the University of Michigan's Noel Tichy, a top authority on the subject, says that checking their commitment is easy: "Just show me the CEO's calendar."
...nurturing future leaders earlier than other companies creates a competitive advantage that lasts for decades, as their talent pipelines become bigger, better, and more reliable.
About two-thirds of leadership development comes from job experience, about one-third from mentoring and coaching, and a smidgen from classroom training.
"you learn ten times more in a crisis than during normal times."
Many CEOs report new tension between the need to develop people by moving them through different jobs and the need to develop their expertise in certain domains by leaving them put.
One technique: short-term work assignments. Managers don't leave their jobs, but they take on an additional assignment outside their field of expertise or interest.
The companies on our list combine frequent, honest assessment with plenty of mentoring and support. So when people are told what skills they need to improve, they're also offered programs or coaching for doing it.
GE takes whole teams and puts them through Crotonville together, where they make real decisions about their business. Result: "There's no excuse for not doing it."
"The command-and-control model of leadership just won't work 99% of the time."
Encourage leaders to be active in their communities.
At General Mills it's an explicit part of many employees' development plans to serve on a nonprofit board.
Good as these companies are, not one of them is satisfied with the way it develops leaders.
Excerpts
Most companies maintain their office copiers better than they build the capabilities of their people, especially the ones who are supposed to be future leaders, and for decades they've gotten away with it.
"Organizations need talented people a lot more than talented people need organizations."
It seems young people understood the new nature of today's economy before a lot of CEOs did, and they insist on jobs that will keep making them better.
Companies are finding that the advantages of building a reputation for developing talent are greater than they may have thought.
"Companies that provide people with opportunities to learn and grow become talent magnets, drawing scarce talent in droves."
Lots of companies claim they're interested in developing leaders, but the University of Michigan's Noel Tichy, a top authority on the subject, says that checking their commitment is easy: "Just show me the CEO's calendar."
...nurturing future leaders earlier than other companies creates a competitive advantage that lasts for decades, as their talent pipelines become bigger, better, and more reliable.
About two-thirds of leadership development comes from job experience, about one-third from mentoring and coaching, and a smidgen from classroom training.
"you learn ten times more in a crisis than during normal times."
Many CEOs report new tension between the need to develop people by moving them through different jobs and the need to develop their expertise in certain domains by leaving them put.
One technique: short-term work assignments. Managers don't leave their jobs, but they take on an additional assignment outside their field of expertise or interest.
The companies on our list combine frequent, honest assessment with plenty of mentoring and support. So when people are told what skills they need to improve, they're also offered programs or coaching for doing it.
GE takes whole teams and puts them through Crotonville together, where they make real decisions about their business. Result: "There's no excuse for not doing it."
"The command-and-control model of leadership just won't work 99% of the time."
Encourage leaders to be active in their communities.
At General Mills it's an explicit part of many employees' development plans to serve on a nonprofit board.
Good as these companies are, not one of them is satisfied with the way it develops leaders.
