Korn Ferry Executive Survey Finds 30 Percent of Organizations Do Not Have a Bench of Next Generation Leadership
June 5, 2014
LOS ANGELES, June 5, 2014 — A global executive survey released by Korn Ferry (NYSE:KFY), a single source of leadership and talent consulting solutions, indicates that 30 percent of organizational leaders do not feel their organization is ready to promote its talent,
while 70 percent of executives feel their organizations are either ready now or somewhat ready.
Thirty-nine percent of those surveyed believe their organizations either mostly or fully have the right talent to succeed in today’s changing global environment and 46 percent believe the talent in their companies either mostly or fully have the right mindset required for global expansion.
However, survey respondents, who hail from 49 countries, noted a focus on leadership ownership, or buy-in to the importance of a global talent management approach, as the biggest factor detracting from talent management efforts. In fact, 28 percent cited this as the top issue, with only 12 percent citing lack of budget/funding.
“Global talent management is essential to an organization’s health,” said Andrés Tapia, senior partner, Leadership and Talent Consulting, Korn Ferry. “While many executives believe their talent programs are effective, continued focus needs to be on the way that leadership candidates are being developed and their ability to seamlessly lead across borders.”
Tapia continued, “Effective global succession management, or the practice of identifying up to the third generation of successors for a particular role, requires companies to promote and develop people not only based on ‘what they do’ but ‘who they are.’ That means finding and developing leaders who have a blend of the right competencies and experiences, as well as the right personal traits, such as assertiveness, risk taking and logic; plus motivators such as autonomy, status and challenge. When companies evaluate the full person, they will achieve greater success.”
About the Survey
The survey, which was conducted by the Korn Ferry Institute in March of 2014, covered more than 100 senior-level executives from 49 countries. The results were released at a recent gathering of Fortune 500 executives.
• Is your organization ready to promote its talent?
a. Ready now 34%
b. Somewhat ready 36%
c. Not ready at all 30%
• Perceived barriers and derailers – what are the most important factors detracting from your enterprise’s readiness?
a. Leadership ownership 28%
(or buy in to the importance of global talent management)
b. Organizational structure 20%
c. Cultural factors 20%
(e.g., the organization manages things more independently by region)
d. Talent issues 18%
(i.e., don’t have the right competencies, experiences and dispositions to manage the talent effectively)
e. Lack of budget/funding 12%
f. Technology issues 2%
• Do you feel your organization has the right talent to succeed in this changing, global environment?
a. Yes 16%
b. Mostly 23%
c. Somewhat 34%
d. No 27%
• Does your talent have the right experiences to help it succeed in the current business environment?
a. Yes 27%
b. Mostly 47%
c. Somewhat 20%
d. No 6%
• Does the talent in your company have the right mindset required for global role expansion?
a. Yes 19%
b. Mostly 27%
c. Somewhat 38%
d. No 15%
• What competency listed below is most critical to the success of your global organization?
a. Values differences 6%
b. Develops talent 17%
c. Attracts top talent 14%
d. Drives engagement 15%
e. Interpersonal savvy 1%
f. Collaboration 17%
g. Communicates effectively 12%
h. Global perspective 11%
i. Cultivates innovation 9%
About Korn Ferry
At Korn Ferry, we design, build, attract and ignite talent. Since our inception, clients have trusted us to help recruit world-class leadership. Today, we are a single source for leadership and talent consulting solutions to empower businesses and leaders to reach their goals. Our solutions range from executive recruitment and leadership development programs, to enterprise learning, succession planning and recruitment process outsourcing (RPO). Visit www.kornferry.com for more information on Korn Ferry, and www.kornferryinstitute.com for thought leadership, intellectual property and research.