Ddi Leadership Audit (India Highlights)


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Ddi Leadership Audit (India Highlights)

  1. 1. GLOBAL LEADERSHIP FORECAST 2008|2009 INDIA HIGHLIGHTS > D Rajiv Krishnan > Richard S. Wellins, Ph.D.
  2. 2. GLOBAL LEADERSHIP FORECAST 2008|2009 INDIA HIGHLIGHTS > D Rajiv Krishnan > Richard S. Wellins, Ph.D. A Welcome from DDI India We are pleased to present this profile of the current status of The current Global Leadership Forecast and this report address leadership and leadership development within the India business several issues in addition to the state of leadership today. What’s community. This report grew out of a larger study, the Global working and what’s not in developing tomorrow’s leaders? How are Leadership Forecast 2008|2009, the fifth in DDI’s research series on organizations managing their leadership pipeline and successions? global leadership issues and practices. The results presented here How well are managers prepared to lead across national borders? contrast the responses from HR professionals and organizational Although no single approach to leadership development is right for leaders in India with their counterparts on the world stage. every organization or every country, DDI believes that there are sound This research could not be more timely. As organizations extend their practices that work in most situations. We are confident that this reach around the globe and the pace of work life quickens, leadership report will offer you new ideas and insights into leadership has become an increasingly complex and demanding responsibility. development. Hopefully, it will also stimulate your own ideas about Worldwide, executives in the study identified improving and leveraging ways that you can significantly enhance the capabilities of the leaders talent as their top business priority. Never before has the development in your organization. of the highest-quality leaders been more important to organizational success. D Rajiv Krishnan, Managing Director, DDI India
  3. 3. ABOUT DDI In today’s grow-or-die marketplace, having the right talent strategy is crucial for an organization’s success. Development Dimensions International will help you systematically and creatively close the gap between today’s talent capability and the people you will need to execute tomorrow’s business strategy. We excel in two areas: • Designing and implementing selection systems that enable you to hire better people faster. • Identifying and developing exceptional leadership talent critical to creating a high-performance workforce. DDI is all about giving you the kind of business impact you want over the long term—that’s what we call realization. The work we do together is tied to your organization’s strategies and becomes part of your business and your culture. Additionally, if your business is multinational, DDI has the kind of global resources you need to implement your talent initiatives effectively and consistently worldwide. © Development Dimensions International, Inc., MMX. Pittsburgh, Pennsylvania. All rights reserved under U.S., International, and Universal Copyright Conventions. Reproduction in whole or part without written permission from DDI is prohibited. 2 India Highlights
  4. 4. CONTENTS 4 STUDY PARTICIPANTS 13 CONCLUSIONS AND RECOMMENDATIONS 5 LEADERSHIP TODAY 14 APPENDIX 5 Business Priorities 14 Demographics 6 Evaluating Leaders 15 About the Authors 6 DEVELOPING LEADERS 15 Acknowledgments 6 Evaluating Leadership Development Programs 7 Development Methods 8 Executing Leadership Development Programs 9 HIGH-POTENTIAL LEADERS 9 Identifying High-Potential Leaders 9 Evaluating High-Potential Development Programs 10 Executing High-Potential Development Programs 11 Succession Planning 12 MULTINATIONAL LEADERS 12 Identifying Multinational Leaders 12 Treatment of Multinational Leaders 3
  5. 5. STUDY PARTICIPANTS FIGURE 1 Organization Size This report is based on survey responses from 966 human resource INDIA GLOBAL professionals and leaders based in India. One HR professional filled in a 10,001 10,001 or more or more survey for each organization or major organizational business unit. The 18% 24% HR professionals invited representative samples of their organization’s 1 to 1,000 1 to 1,000 38% 47% leaders to complete leader surveys. Respondents from India are 34% compared in this report to the total group of HR professionals and leaders 39% from 76 countries in the Global Leadership Forecast (see Table 1). 1,001 to 10,000 1,001 to 10,000 TABLE 1 Sample Size India Global The India sample differed from the global average with respect to HR Professionals 38 1,493 leaders’ management level. There were fewer first-level leaders and Leaders 928 12,208 more senior-level leaders in the India sample (see Figure 2). Additional TOTAL 966 13,701 information about the organizations and leaders in India is in the demographics section of this report. The organizations in India were slightly smaller on average than those in the global sample; that is, there were more small organizations (1,000 FIGURE 2 Management Level of Leaders employees or less) and fewer medium-sized and large organizations (see INDIA GLOBAL Figure 1). Most organizations (70 percent) were multinationals (i.e., they Executive-level Executive-level owned, operated, or had affiliate offices in multiple countries); in the 13% 10% First-level First-level global sample, 61 percent were multinationals. 15% 26% Senior-level Senior-level 36% 27% 35% 37% Mid-level Mid-level 4 India Highlights
  6. 6. LEADERSHIP TODAY FIGURE 3 Executives’ Business Priorities Business Priorities Improve or leverage talent 77% 75% Growth 79% Leaders were asked to identify the most important 69% Improve customer relationships/service 74% 66% business priorities for their organization; they could Control costs 67% 64% select any of the items that applied. We focused 58% The top priorities for Improve production/operating efficiency 59% on the perspectives of executives, whose thinking Identify ways to improve quality 60% executives in India were 58% best represents where their organizations are Improve company culture 53% growth, improving and 57% headed. Figure 3 lists the items from highest to Define a clear or new company strategy 47% leveraging talent, and 54% lowest priority according to executives worldwide. Develop new technology and/or processes (innovation) 49% 53% improving customer 52% The top priorities for executives in India were Build new company capabilities 46% relationships. Improve market image or reputation 50% 43% growth, improving and leveraging talent, and 39% Enter new markets 35% improving customer relationships. These Expand or strengthen 25% international presence 24% priorities reflect the great need for managing Manage new acquisitions or mergers 18% 19% India’s rapidly growing economy. Few executives 0% 20% 40% 60% 80% 100% in India considered international presence or India Global new acquisitions to be high priorities for their organizations. Given their organizations’ high rate of growth in recent years, the executives seem to prefer strengthening the leadership and management of their organizations than introducing additional uncertainties through expansion. 5
  7. 7. Evaluating Leaders DEVELOPING LEADERS When asked to rate the overall quality of leaders in their organization, This section looks at how organizations in India approach leadership slightly more than half of the leaders in India rated them very good or skills and how well leadership development programs are executed. excellent. The sum of these two ratings was higher than the global sample (see Figure 4). Figure 4 also shows the percentage of HR Evaluating Leadership Development Programs professionals indicating high confidence in leaders’ ability to assure the Almost half of the leaders in India were satisfied with what their success of the organization. Significantly more leaders in India inspired organizations offered to develop their leadership capabilities (see high confidence among HR professionals than did leaders worldwide. Figure 5). This proportion was slightly greater than the global norm, which had declined from DDI’s 2005–2006 Leadership Forecast. FIGURE 4 Evaluating Leaders Nevertheless, only a little more than one-fourth of the HR professionals Quality of leaders (very good/excellent) in India gave high ratings to the quality of their leadership development leaders India 52% programs (identical to the global average). Global 37% FIGURE 5 Evaluating Leadership Development Programs Satisfied with development opportunities resources Confidence in leaders (high) leaders India 45% human India 50% Global 41% Global 35% resources High-quality development programs human India 29% Global 29% 6 India Highlights
  8. 8. Development Methods FIGURE 6 Use of Leadership Development Methods HR professionals were asked to review a list of Passive Active development methods and indicate how often 3.3 they used them on a four-point scale ranging 3.1 2.9 Average Use (4-point Scale) from “not at all” to “extensively.” Figure 6 shows 2.7 the average ratings for each method for Indian India 2.5 and global respondents. The methods are Global 2.3 arranged on a continuum that ranges from 2.1 passive, external activities (e.g., reading) to 1.9 active methods integral to the job (e.g., special 1.7 projects within a job). Leaders in the global 1.5 ing g t ach ch ps n t e job job smen nmen learnin positio al coa rksho Read sample typically found the active methods on nal co within outsid asses assig al wo Intern to new ased the right side of the graph more effective than Exter jects jects triate ostic Form uter-b the more passive ones on the left. ial pro Move ial pro Expa Diagn Comp Organizations in India Spec The organizations in India made slightly more Spec use of active leadership development methods made slightly more use Ratings by HR professionals than did those in the global study; for example, of active leadership they made greater use of moving to a new development methods position, expatriate assignments, and special projects outside than did those in the the job. The only active method that rated higher globally than global study. in India is special projects within a job. 7
  9. 9. Executing Leadership Development Programs Organizations in India were much better at clearly communicating the DDI advocates actions in five key areas to assure that a development importance of leadership development than others around the world. program is executed in a manner that will lead to desired business results. They also were more likely to regularly monitor leadership development Items relating to each of these five areas—communication, accountability, programs. In general, these organizations showed stronger execution skills, alignment, and measurement—were included in the Global of their leadership development programs than the typical organization Leadership Forecast surveys. Respondents indicated whether important worldwide. The exceptions were slightly fewer organizations in India steps to assure sound execution were taken; they rated each item on a holding leaders accountable for developing their own skills and negligibly five-point scale ranging from “strongly disagree” to “strongly agree.” fewer holding senior managers accountable for leadership development programs. Overall, their approach should put organizations in India in a Figure 7 shows the percentage of HR professionals in India and those in better position to benefit from their leadership development efforts and the global sample who agreed or strongly agreed with key questions help raise the quality of their leaders over time. around execution. The items are listed in order from the highest to lowest endorsement by the global sample. FIGURE 7 Executing Leadership Development Programs Aligned with business priorities 63% 60% Accountable for developing own skills 53% 57% Clear communication of importance 70% 53% Aligned with performance management 53% 52% Managers held accountable 50% 49% Managers have support tools/knowledge 47% 39% Consistent deployment across locations 42% 37% Senior management held accountable 34% 35% Regularly monitored 42% 29% Results formally measured 29% 26% 0% 20% 40% 60% 80% Percent Agree or Strongly Agree India Global Ratings by HR professionals 8 India Highlights
  10. 10. HIGH-POTENTIAL LEADERS Evaluating High-Potential Development Programs High-potential employees were defined as those designated Two in five organizations in India (42 percent) had a program by the organization as having the potential to assume high- to accelerate the development of their high-potential leaders, level leadership roles and who are put into a special pool. slightly more than the typical organization in the global sample Typically, these employees are placed in accelerated About 4 in 10 leaders (39 percent). Worldwide, those in high-potential programs development programs to prepare them for their future roles. in India identified were much more positive about their development programs than leaders who were not in such a special group. This was themselves being as in Identifying High-Potential Leaders also true in India (see Figure 9). a high-potential Compared to the worldwide sample, a larger proportion of program, a greater organizations in India (61 percent) had a process for identifying FIGURE 9 Quality of High-Potential Development Programs proportion than being high-potential leaders (see Figure 8). About 4 in 10 leaders in in the global sample. India identified themselves as being in a high-potential program, Percent high or very high potentials a greater proportion than in the global sample. India 53% high- FIGURE 8 Identifying High-Potential Leaders Global 48% resources Process to identify high-potentials leaders human India 61% India 36% other Global 50% Global 35% Ratings by leaders Leader is a high-potential leaders India 41% Global 25% 9
  11. 11. Figure 10 shows a similar pattern for leaders’ satisfaction with their Executing High-Potential Development Programs leadership development offerings. The high-potential leaders in India Perhaps one reason leaders are more satisfied with high-potential and worldwide were significantly more pleased than those who were not programs is that they perceive them to be much better executed than in the special program. Both high-potential and other leaders in India programs designed for typical leaders. A comparison of Figure 11 with were similarly satisfied with their development programs as the typical Figure 7 (Executing Leadership Development Programs) shows that this leader in the global sample. is the case for India as well. With regard to high-potential programs, organizations in India do a better job than organizations elsewhere of FIGURE 10 Satisfaction with Development Offerings holding managers and senior management accountable for the program, Percent agree or strongly agree consistently deploying programs across locations, and aligning their potentials high-potential programs with business priorities. India 57% high- FIGURE 11 Executing High-Potential Development Programs Global 55% Aligned with business priorities 75% 71% leaders Consistently deployed 56% India 37% across locations 49% other Managers accountable 63% 54% Global 37% Senior management accountable 44% 63% Ratings by leaders Regularly monitored 50% 49% 0 20 40 60 80 Percent Agree or Strongly Agree India Global Ratings by HR professionals 10 India Highlights
  12. 12. FIGURE 12 Executing High-Potential Development Programs At the same time, organizations in India were less likely than others to have Participated in a formal assessment 65% 68% succession plans at lower levels. The best 76% Clear communication of importance 69% way to assure a qualified cadre of leaders Aligned with performance management 81% 75% in the pipeline is to begin at the bottom. Manager helps me feel personally 79% connected to organization 73% Failure to assure that those with the Organizations in India Manager is committed to my development 74% 70% greatest potential will rise into the next rung were more likely to Get sufficient feedback about my performance 77% 64% 59% of management could leave organizations have succession plans Have specific written plan for my development 58% with a less than optimal pool of candidates for higher-level 0 20 40 60 80 100 Percent Agree or Strongly Agree for higher-level positions. managers compared India Global Ratings by leaders to the average organization worldwide. As Figure 11 shows, HR professionals in India were much more FIGURE 13 Prevalence of Defined Succession Plans positive about the execution of their high-potential programs than 70% the typical HR representative worldwide. Similarly, the views of 60% 62% the high-potential leaders in these organizations were also more 53% 50% 49% positive (see Figure 12). While slightly fewer high-potential 47% 48% 47% 40% leaders in India had participated in a formal assessment, those 38% that did reported receiving feedback about their performance and 30% 32% 28% 24% manager support and having greater alignment in their program 20% than did high-potentials around the world. 10% Succession Planning 0 INDIA GLOBAL A high-potential program is often one aspect of an organization’s Top-level managers (e.g., CEO, CFO, COO) Multifunction managers succession-planning process. Organizations in India were more Department, function, or project managers First-level functional supervisors (e.g., team leader) likely to have succession plans for higher-level managers Individual contributors (e.g., professionals, frontline) compared to the average organization worldwide (see Figure 13). Ratings by HR professionals 11
  13. 13. MULTINATIONAL LEADERS Treatment of Multinational Leaders Although 44 percent of multinational organizations in India had a process Multinational leaders were defined as leaders who work on projects, to identify multinational leaders, only 26 percent had a process to assignments, or business units that require a great deal of collaboration develop them (compared to 29 percent worldwide). with associates in multiple countries. Multinational leaders may be located outside the home office country (i.e., expatriates) or inside that Half of the multinational leaders in India described their preparation for their country. Multinational leaders include regional, international, and global assignments as fair or poor. Although this was better than that reported by leaders. Although national organizations claimed to have a small the worldwide sample of multinational leaders (see Figure 15), it is not a proportion of multinational leaders, we focus here on the experiences positive finding. Development of multinational leaders appears to be a of those in multinational organizations. universal problem. Identifying Multinational Leaders FIGURE 15 Preparation and Support of Multinational Leaders Among multinational organizations around the world, only two in five 100 had a formal process for identifying potential multinational leaders. This 12% 23% 19% proportion was slightly higher for organizations in India (see Figure 14). 28% 80 27% Compared to the worldwide average, a slightly larger percentage of leaders 26% 33% in India identified themselves as having multinational responsibilities. 60 38% FIGURE 14 Identifying Multinational Leaders 40 61% 51% 48% resources Process to identify multinational leaders 20 35% human India 44% 0 India Global India Global Global 40% Preparation Support Poor/Fair Good Very good/Excellent Ratings by leaders Leader is a multinational leaders India 23% Global 18% 12 India Highlights
  14. 14. Support for multinational leaders in their assignments was not more likely to communicate about the importance of leadership much better than their preparation. Once again, the leaders in development and regularly monitor their programs—signs of India rated their experience better than the typical global good program execution that increase the likelihood of positive leader, but one-third of leaders calling their support poor or fair results down the line. still suggests that this is a problem area that deserves more High-potential programs in India also were rated more management attention. effective than programs around the world. HR professionals used processes to identify high-potentials with greater CONCLUSIONS AND frequency in India, and slightly more programs were rated RECOMMENDATIONS higher in India compared to worldwide. Organizations in India Although 44 percent were particularly adept at holding senior management and of multinational The primary business priorities for organizations in India, managers accountable and aligning their programs with organizations in India according to their top executives, are growth and improving business priorities. They also were more likely to have had a process to identify and leveraging their talent. Economic developments in India formal succession plans at top levels, but less likely than multinational leaders, have put the focus on how to develop and prepare leaders to organizations worldwide to have succession plans at lower only 26 percent had a manage in the growing economy. The good news is that the levels. Organizations in India would benefit from paying process to develop them. quality of leaders in India and the confidence in them is higher compared to the global average, but it hardly seems attention to managing progression from the lower levels if satisfactory when only half of the leaders in India are rated they want to optimize the quality of their leadership pipeline. as very good or excellent. Similar to organizations around the world, organizations in The leaders in India were more positive than HR professionals India also could benefit from more focus on multinationals. about their leadership development programs. Nearly half the Half of multinationals rated their preparation for global leaders were satisfied with their development opportunities, but assignments as poor or fair. Although multinational leaders only slightly more than one-fourth of the HR professionals rated in India were more positive about their experiences than the development programs as high quality. The methods used to typical multinational leader elsewhere, over a third of them develop leaders in India differed in only small ways from those rate the support they receive for multinational assignments as in organizations worldwide. However, organizations in India poor or fair. Organizations in India could greatly benefit from might get more from their development efforts because their creating and implementing a strong development strategy for programs are executed better. Compared to the typical this seemingly forgotten group of leaders. organization in the global sample, organizations in India were 13
  15. 15. APPENDIX APPENDIX Leaders Age 928 Number in sample 4% Less than 25 Demographics Management Level 31% 26–35 Organizations 15% First-level (supervisor, 44% 36–45 38 Number in sample team leader, foreman, 15% 46–55 etc.) 5% 56–65 Number of Employees 35% Mid-level (leader of first- 1% More than 65 0% 1–10 level leaders) 0% 11–50 36% Senior-level 0% 51–100 (leader/manager of Gender mid-level leaders) 90% Male 19% 101–200 13% Executive-level (leader in 10% Female 12% 201–500 a policy-making position) 12% 501–1,000 19% 1,001–5,000 12% 5,001–10,000 Organizational Tenure 8% 10,001–20,000 5% Less than 6 months 8% 20,001–50,000 7% 6–11 months 8% 50,001 or more 19% 1–2 years 27% 3–5 years 19% 6–10 years Presence in the Global Market 9% 11–15 years 30% National 13% More than 15 years 70% Multinational (own, operate, or have affiliate offices outside own country) NOTE: Numbers may not add up to 100 percent because of rounding. 14 India Highlights
  16. 16. About the Authors Acknowledgments Rajiv Krishnan is Managing Director of DDI This study was a true global effort, and the authors would like to India. A well-known name in talent management acknowledge the invaluable contributions of the following people. and leadership training, Rajiv’s knowledge and experience is sought after by DDI’s clients, such Research Advisor as Volkswagen, Microsoft, Citibank, Aditya Birla Bob Rogers is President of DDI. In addition Group, HSBC, Mahindra, and two of the top four IT service to overseeing day-to-day operations, Bob companies. Rajiv also has helped many DDI clients craft continues to consult with clients and is a effective selection and development solutions. Under his recognized expert in assessment leadership, leadership DDI India has completed over 10,000 assessments performance management, and organizational and 250 days of leadership training. Rajiv has spoken at change who presents at major conferences around the world. various industry and HR forums and is a frequent commentator In his 30 years at DDI, he has authored and coauthored in national, HR, and business media. numerous articles, monographs, and books, including Organizational Change That Works: How to Merge Culture Richard S. Wellins, Ph.D., is Senior Vice and Business Strategies for Maximum Result and Realizing President at DDI. Rich is responsible for leading the Promise of Performance Management. DDI’s global research programs, launching new solutions, building strategic alliances, and executing marketing strategies. During his tenure at DDI, Rich has authored five books on leadership and teams and written for more than 20 publications on global talent management. Rich designs leadership development programs and provides executive coaching services to organizations including AXA, Texas Children’s Hospital, and Nissan Motors. 15
  17. 17. International Partners Research Team Philippe Cavat, Rajiv Krishnan, Elmar Kronz, Vic Magdaraog, Steve Jazmine Boatman, Stephanie Neal Newhall, Ricardo Padilla, Vina Pendit, Kiyoyuki Takeuchi, David Tessmann-Keys, Bruce Watt. Editorial Mike Crawmer, Shawn Garry Project Management Julie Hogan Graphic Design Mike Lawley, Susan Ryan, Janet Wiard Participant Recruitment Dwiputri Adimuktini, Malu Arredondo, Mary Ann Buffington, Mark Busine, Web Team Monica Chen, Lorena Contreras, Cheryl de la Porte, Nikki Dy-Liacco, Noelle Conover, Mark Hamilton Andrew Eisenhauer, Barbara Endemann, Denise Flaherty, Ramon Fontaine, Dylan Gleue, Lisa Han, Kumiko Hashimoto, Rodrigo Infante, Claudette Johnson, Arati Karve, Michelle Lai, Doris Lam, Dorothy Lo, Yvonne McGowan, Simon Mitchell, Mary Etta Nader, Stephanie Nam, Panmanee Ong-Art, Marianne Peterson, Zig Rabara, Dr. Devashis Rath, Dian Rosdiana, Dr. Arunima Shrivastava, Mehzabeen Sitabkhan, Lily Sun, Julie Vedrinne, Jane Viehman, Christien Winter, DDI sales and consulting associates globally. 16 India Highlights
  18. 18. THE AMERICAS EUROPE, MIDDLE WORLD HEADQUARTERS EAST & AFRICA PITTSBURGH Offices include 412.257.0600 Cape Town, Durban, Düsseldorf, Istanbul, Other offices include Johannesburg, Atlanta, Calgary, Chicago, London, Moscow, Dallas, Detroit, Lima, Paris, Port Elizabeth, Mexico City, Monterrey, Poznań, and Safat Montreal, New York, San Francisco, ASIA-PACIFIC Santiago, São Paulo, Offices include and Toronto Auckland, Bangkok, Beijing, Christchurch, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Mumbai, Seoul, Shanghai, Singapore, Sydney, Taipei, Tokyo, and Wellington HIRING & DEVELOPING UNLEASHING TO LEARN MORE: PROMOTING E X T R A O R D I N A RY EXECUTIVE THE BEST LEADERS TA L E N T EMAIL: INFO@DDIWORLD.COM WWW.DDIWORLD.COM © Development Dimensions International, Inc., MMX. All rights reserved. INDIA HIGHLIGHTS 1/10