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.

Extracted from an article by: Geoff Colvin, Fortune Senior Editor-At-Large
September 20 2007

Fortune has teamed up with Hewitt, the world’s largest human resources outsourcing and consulting firm, and RBL Group, a consulting firm specializing in leadership development, to conduct new research into ways companies around the world are developing leaders and which are doing it best.

9 Best Practices adopted in creating world-class leadership development:

1. INVEST TIME AND MONEY	6. DEVELOP TEAMS, NOT JUST INDIVIDUALS
Time investment up to 50% of CEO’s time has been noted in people development. Funding of leadership programmes and the facility are also critical and considered one of the best investments.	The whole team is involved in the development. For example in GE, the whole team is trained and they work on making real business decisions. The focus is on leadership rather than leaders.
2. DENTIFY PROMISING LEADERS EARLY	7. EXERT LEADERSHIP THROUGH INSPIRATION
Nurturing future leaders start early in these companies.	The secret of leadership is "inspire". The development programs include `Inspirational Leadership’ as in P&G. These companies realize that they inspire through a sense of mission.
3. CHOOSE ASSIGNMENTS STRATEGICALLY	8. ENCOURAGE LEADERS TO BE ACTIVE IN THEIR COMMUNITIES
Leadership development comprises a combination of approaches such as mentoring, coaching, classroom training, job assignment etc.	Most companies adopted values such as integrity, respect for individuals and good citizenship. When company leaders also become leaders of nonprofit boards or organizations, they show their commitment to those values.
4. DEVELOP LEADERS WITHIN THEIR CURRENT JOBS	9. MAKE LEADERSHIP DEVELOPMENT PART OF THE CULTURE
A technique by giving short-term work assignments, where the managers do not leave their jobs but take on an additional assignment outside their field of expertise or interest, has been adopted.	Developing leaders is not a program; it is a way of living. Culturing norms cannot be dictated, but encouraged and accepted.
5. BE PASSIONATE ABOUT FEEDBACK AND SUPPORT
The companies combine frequent, honest assessment with plenty of mentoring and support (programs and coaching).