Korn Ferry Executive Survey Finds 30 Percent of Organizations Do Not Have a Bench of Next Generation Leadership

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.

Survey results

• 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.