Leaders and HR executives in 74 countries gave their leaders a failing grade in the five most critical skills of a leader.
In a study by DDI, a talent management firm, 12,500 leaders and nearly two-thousand HR professionals were asked about the effectiveness of their leaders. They rated them based on 5 critical skills. The percentages to the right are how the leaders rated their performance on a scale of 1-100, 100 being excellent.
- Driving and managing change. 43%
- Identifying and developing future talent. 43%
- Coaching and developing others. 43%
- Fostering creativity and innovation. 50%
- Executing organizational strategy. 40% DDI’s Global Leadership Forecast 2011
Critical skills # 2 and 3, Identifying and developing future talent as well as fostering creativity and innovation, are the two newest skills of a leader. DDI says:
“The ‘war for talent’ is back on with leaders realizing they will need to spend more time as ‘talent managers.’ And innovation, in every country, is being viewed as the fuel to stay competitive.”
In fact, there is a close correlation between good leadership and its ability to predict the financial performance of a company. 52% of organizations outperformed competitors when their leadership quality ranked in the top 1/3 for the five skills. This compares with only 13% outperforming competitors when their leadership quality ranked in the bottom 1/3.
What’s interesting to note is that DDI is now measuring a leader’s “passion to lead.”
Passion simply means that those in leadership positions are committed to, and enjoy their roles as leaders for the right reasons: helping see their company, teams and each individual they manage succeed.
Already they’ve found : 53% of organizations that ranked in the top 1/3 for leadership quality had passionate leaders. Only 7% of organizations ranking in the bottom third had passionate leaders.