
Effective Leadership: Bottom-Line Results
To answer questions about who’s doing it right and the leadership development practices that should be implemented, the Hay Group, in partnership with Chief Executive magazine, surveyed 1,279 top companies worldwide. Of these, 564 completed the survey.
Research conducted over the last 60 years shows good leadership is reflected in bottom-line results.
In the top 20 companies cited, each had more leaders than the average, were happier with their quality and were more committed to leadership development. Astonishingly, the five-year shareholder return for the top 20 versus their peer groups showed the best companies for leaders outperformed the S&P significantly. The companies that excelled at leadership development showed a return of 4.07% versus the peer group at 0.54%.
The top 20 companies for leaders in 2006 were:
1.
General Electric
11.
Dell
2.
Procter & Gamble
12.
Microsoft
3.
PepsiCo
13.
Novartis
4.
Citigroup
14.
Verizon Communications
5.
Johnson & Johnson
15.
Nestle
6.
HSBC Holding
16.
Lockheed Martin
7.
BASF
17.
GlaxoSmithKline
8.
Home Depot
18.
Amgen
9.
IBM
19.
Hewlett-Packard
10.
Coca-Cola
20.
BAE Systems