The document summarizes the findings of a study by Hay Group on the best companies for leadership. Some key findings include: 1) The top companies focus on both operational excellence and driving innovation, with senior leaders encouraging risk-taking to support growth while also ensuring core businesses run smoothly. 2) These companies provide extensive leadership development programs and opportunities for middle managers to help enable future leaders. 3) Senior leadership plays a critical role in setting organizational values, communicating the need for change, and bridging the gap between operational excellence and innovation.

1. Best Companies for Leadership
Doing things differently….
NOVEMBER 13TH 2013
Hay Group Team

2. Agenda
01
Leadership challenge...
02
Global BCLs
03
What really makes a difference
04
Romanian BCLs
05
Insights & Take aways...
© 2013 Hay Group. All rights reserved
2

3. Times of Turbulence...
Global warming VOIP Aging population
Information age Technology bubble
Tsunami Millenials BRIC countries
TARP Leadership crisis Internet
EURO crisis
Financial crisis
Terrorism
9/11
Globalization Global debt
Social media
© 2013 Hay Group. All rights reserved
Too big to fail
3

4. The six megatrends for leadership
01
Globalization 2.0
02
Individualization
and value
pluralism
04
Climate change
and environmental
impact
© 2013 Hay Group. All rights reserved
05
Digital
lifestyle
03
Demographic
change
06
Technology
convergence
4

5. The market is becoming more volatile
and unpredictable
The average lifespan of a S&P
500 company has decreased
Shorter tenure of CEOs
Digital data explosion –
global digital information
created and shared
Growth has become
more unpredictable
10.0
80
5- year average revenue
growth volatility (%)
8
67
7
8.4
15
Zettabytes
6
5
4
3
2
60
40
322
20
1
© 2013 Hay Group. All rights reserved
2010
2000
1990
1980
1970
1960
1950
2015E
2013E
2011
2009
Average CEO tenure (years)
2000 2012
2007
Average lifespan S&P500 (years)
1920 2012
0
2005
0
…companies are facing large
changes in profitability
5

6. A worldwide survey of best practice
Regional distribution
Region
Worldwide
Number of
respondents
More than 18,000
Europe
More than 7,000
Romania
More than 1,600
More than 1,600
employees
participated in
the study in
Romania
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
6

7. The study results apply to a large number
of organisations
Over 18,000 individuals participated in the study from 2,200 organizations
Participation
125
from
countries
34.8%
15.9%
20.2%
7.5%
21.6%
Under
500 million*
501 million to
1 billion*
1 billion to
5 billion*
6 billion to
10 billion*
Over
10 billion*
Source: Hay Group 2013 Best Companies for Leadership study
Note:
*
Annual revenue in US$
© 2013 Hay Group. All rights reserved
7

8. Methodology
Who participates? Hay Group invites organizations from around the globe to
participate in the study. The survey is open to all employees of any organization.
Evaluation Methodology
Respondents assessed the leadership development practices at their own
organization on a critical items of leadership index.
Peer nominations. Respondents select three organizations that they believe are
the Best Companies for Leadership (organizations that are perceived to be
doing a good job of growing and developing their talent).
© 2013 Hay Group. All rights reserved
8

9. 2013 global top 20
Best Companies for Leadership
01 Procter & Gamble
11 Intel
02 Microsoft
12 Samsung
03 General Electric
13 3M
04 Coca-Cola
14 Nestlé
05 Unilever
15 Siemens
06 IBM
16 Oracle
07 Wal-Mart
17 Citigroup
08 McDonald's
18 Caterpillar
09 Telefónica
19 Toyota
10 Facebook
20 Ford Motor
© 2013 Hay Group. All rights reserved
9

10. The Best Companies for Leadership
provide higher shareholder returns
Total shareholder returns
Top 20
One year
16.0%
3.0%
1.7%
Ten years
*
14.0%
Five years
Note:
S&P 500
8.6%
7.1%
Average total shareholder returns for the BCL global top 20 versus the S&P 500
© 2013 Hay Group. All rights reserved
10

11. The Best Companies for Leadership
build talent for the future
The BCLs are better positioned for talent now and in the future
Leaders create a work
climate that motivates
employees to do their best
90
82
There are a sufficient
number of qualified internal
candidates who are ready
to assume open leadership
positions
73%
This organization actively
manages a pool of
successors for mission
critical roles
85
63
55%
Per cent of respondents
Global Top 20
Europe Top 10
© 2013 Hay Group. All rights reserved
All others
74
66
44%
All employees have the
opportunity to develop and
practice the capabilities
needed to lead others
73
51
47%
Source: Hay Group 2013 Best Companies for Leadership study
11

12. The Best Companies for Leadership
build talent for the future
The BCLs are better positioned for talent now and in the future
Leaders create a work
climate that motivates
employees to do their best
90
82
There are a sufficient
number of qualified internal
candidates who are ready
to assume open leadership
positions
83
This organization actively
manages a pool of
successors for mission
critical roles
85
63
© 2013 Hay Group. All rights reserved
66
66
All employees have the
opportunity to develop and
practice the capabilities
needed to lead others
74
Per cent of respondents
Global Top 20
Europe Top 10
74
Romania Top 10
73
51
53
Source: Hay Group 2013 Best Companies for Leadership study
12

13. A strong focus on global awareness and
environmental sustainability
89
73
61
86
Leaders are advocates for
environmentally responsible
business practices
71
48
66
59
Our leaders are change agents
who initiate change towards
higher environmental standards
34
83
We actively recruit
cultural minorities
79
56
Actively applies sustainable and
energy efficient policies
Per cent of respondents
Global Top 20
Europe Top 10
All others
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
13

14. A strong focus on global awareness and
environmental sustainability
89
73
86
86
Leaders are advocates for
environmentally responsible
business practices
71
48
66
90
Our leaders are change agents
who initiate change towards
higher environmental standards
42
83
We actively recruit
cultural minorities
79
84
Actively applies sustainable and
energy efficient policies
Per cent of respondents
Global Top 20
Europe Top 10
Romania Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
14

15. Best Companies are focused on creating
an engaged working environment
82
66
59
82
Employees are equipped with
the right tools to work
effectively outside the office
78
66
70
61
Leaders work hard to connect
people with projects that are
personally meaningful to them
55
When people move between
projects, we are still effective at
creating well-organized teams
84
77
64
Leaders are culturally savvy
and have the skills to work
effectively with diverse teams
Per cent of respondents
Global Top 20
Europe Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
15

16. Best Companies are focused on creating
an engaged working environment
82
66
60
82
Employees are equipped with
the right tools to work
effectively outside the office
78
66
70
83
Leaders work hard to connect
people with projects that are
personally meaningful to them
59
84
When people move between
projects, we are still effective at
creating well-organized teams
Per cent of respondents
Global Top 20
Europe Top 10
77
86
Leaders are culturally savvy
and have the skills to work
effectively with diverse teams
Romania Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
16

17. But what really makes them
different?

18. In order to
survive, organizations
need to continually
transform themselves –

19. In order to
survive, organizations
need to continually
transform themselves –
while still maintaining
excellence in their current
business –

20. In order to
survive, organizations
need to continually
transform themselves –
while still maintaining
excellence in their current
business – they need to
be ambidextrous

21. The Best Companies focus on
operational excellence
89
75
Senior leaders focus attention on
running established lines of
business profitably and smoothly
82
58
Utilizes rewards based on
rigorous measurements of
performance against goals
75
57
Provides incentives to encourage
operational efficiency
Per cent of respondents
Top 20
All others
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
21

22. The Best Companies focus on
operational excellence
89
83
89
Senior leaders focus attention on
running established lines of
business profitably and smoothly
82
67
77
75
Utilizes rewards based on
rigorous measurements of
performance against goals
Per cent of respondents
Global Top 20
Europe Top 10
63
69
Provides incentives to encourage
operational efficiency
Romania Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
22

23. And encourage and drive innovation
The Best Companies know operational excellence isn’t enough
87
69
Senior leaders are willing to take
business risks to support the
growth of the organization
80
78
55
Employees spend time discussing
customer’s future needs
56
Employees in new start-up or
innovation areas have equal
importance to those driving
operational improvement
77
58
Rewards employees for really
new and different business ideas
Per cent of respondents
Top 20
All others
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
23

24. And encourage and drive innovation
The Best Companies know operational excellence isn’t enough
87
82
84
78
Senior leaders are willing to take
business risks to support the
growth of the organization
80
68
71
70
Employees spend time discussing
customer’s future needs
84
77
Employees in new start-up or
innovation areas have equal
importance to those driving
operational improvement
Per cent of respondents
Global Top 20
Europe Top 10
67
77
Rewards employees for really
new and different business ideas
Romania Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
24

25. Senior leadership sets the tone and
bridges the gap…
Senior leaders at the Best Companies are champions
94
77
The top team has clearly articulated
a set of organizational values that
guide behavior
91
90
70
Senior leaders communicate the
firm’s survival depends on adapting
to evolving market trends
76
Senior management works together
to support the overall objectives of
the organization
90
73
Leaders create a work climate
that motivates employees to do
their best
Per cent of respondents
Top 20
All others
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
25

26. Senior leadership as change leaders …
Senior leaders at the Best Companies are champions
94
93
94
90
The top team has clearly
articulated a set of organizational
values that guide behavior
91
84
89
Senior leaders communicate the
firm’s survival depends on
adapting to evolving market trends
91
90
Senior management works
together to support the overall
objectives of the organization
Per cent of respondents
Global Top 20
Europe Top 10
86
82
83
Leaders create a work climate
that motivates employees to do
their best
Romania Top 10
Source: Hay Group 2013 Best Companies for Leadership study
© 2013 Hay Group. All rights reserved
26

27. And are focused on enabling the middle
Leadership development activities available for new to mid-level managers
Classroom-based leadership
training
80
55
72
Web-based leadership modules
39
360 degree feedback
assessments
70
41
Additional developmental
activities/special projects
69
49
Mentoring by senior manager/
executive
68
39
Coaching by a trained
internal coach
53
31
Company sponsored community/
volunteer assignments
51
28
32
Executive MBA program
19
0
10
20
30
40
50
60
70
80
90
Per cent of respondents
Top 20
All others
© 2013 Hay Group. All rights reserved
27

28. And are focused on enabling the middle
Leadership development activities available for new to mid-level managers
Classroom-based leadership
training
80
55
72
Web-based leadership modules
39
360 degree feedback
assessments
70
41
Additional developmental
activities/special projects
69
49
Mentoring by senior manager/
executive
68
39
Coaching by a trained
internal coach
53
31
Company sponsored community/
volunteer assignments
51
28
32
Executive MBA program
19
0
10
20
30
40
50
60
70
80
90
Per cent of respondents
Top 20
All others
© 2013 Hay Group. All rights reserved
28

29. And are focused on enabling the middle
Leadership development activities available for new to mid-level managers
65
Classroom-based leadership
training
72
54
Web-based leadership modules
72
56
360 degree feedback
assessments
65
55
Additional developmental
activities/special projects
62
50
Mentoring by senior manager/
executive
34
47
30
Company sponsored community/
volunteer assignments
0
Per cent of respondents
Global Top 20
Europe Top 10
© 2013 Hay Group. All rights reserved
10
69
53
32
4
Executive MBA program
73
51
25
14
70
68
55
Coaching by a trained
internal coach
80
20
30
40
50
60
70
80
90
Romania Top 10
29

30. And are focused on enabling the middle
Leadership development activities available for new to mid-level managers
65
Classroom-based leadership
training
72
54
Web-based leadership modules
72
56
360 degree feedback
assessments
65
55
Additional developmental
activities/special projects
62
50
Mentoring by senior manager/
executive
34
47
30
Company sponsored community/
volunteer assignments
0
Per cent of respondents
Global Top 20
Europe Top 10
© 2013 Hay Group. All rights reserved
10
69
53
32
4
Executive MBA program
73
51
25
14
70
68
55
Coaching by a trained
internal coach
80
20
30
40
50
60
70
80
90
Romania Top 10
30

31. 2013 Romania Top 10
Best Companies for Leadership
01
Coca-Cola
02
Vodafone
03
Unilever
04
IKEA
05
Siemens
06
Hewlett-Packard
07
Raiffeisen
08
Renault
09
OMV Group
10
ING
© 2013 Hay Group. All rights reserved
32

32. Summary findings
Focus on operational excellence
Smooth operations, high profitability levels, make decisions quickly
Do we promote Innovation enough?
Rewarding generation of new ideas
...but a “Hard” evaluation of projects...
Measuring process improvement
A growing culture of leadership and learning
Connecting people with meaningful projects
Generating loyalty ; Providing vision and inspiration
Opportunities to develop leadership abilities vs “formal” leadership
CSR is an important topic on leaders’ agenda
© 2013 Hay Group. All rights reserved
33

33. We need people who are
adept to thinking through
complex scenarios, and a
ere able to handle
ambiguity and complexity
EVP CHRO McDonald’s

34. Leaders are expected to
both build the business
and people within the
organisation – it is the
greatest part of our
performance evaluation
CHRO Procter & Gamble

35. What we can learn from the best
Are you an ambidextrous leader?
Senior leaders need to
be active champions
01
Encourage leaders to
develop the courage
and willingness to do
something different
04
© 2013 Hay Group. All rights reserved
Grow the right culture
that values expertise,
discipline,
collaboration and
customer centricity
Leadership Team
Bridges the gap
between operational
excellence and
innovation.
Lead with
agility, mindfulness
and speed
Actively “involve” and
develop the middle
02
05
03
06
36

36. Times have changed..
It is time that we do things
differently…

37. 05
Appendix: Romania’s responses to
all survey questions

38. While companies use differentiated
development approaches
Middle Managers
Senior Managers
Business courses (e.g.
75%
1 leadership skills
Classroom-based leadership
training programs
72%
360 degree feedback on
360 degree feedback on
71%
2
External leadership
development programs
65%
65%
3
Classroom-based leadership
training programs
57%
Additional developmental
activities / special projects
62%
4
Individual coaching by an
external coach
56%
External leadership
57%
Additional developmental
51%
1 finance, marketing)
2
3 leadership skills
4
5 development programs
© 2013 Hay Group. All rights reserved
5 activities/special projects
39

39. Response to all survey questions (1/4)
No.
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Question
Leaders create a work climate that motivates employees to do their best
Actively manages a pool of successors for mission critical roles
Has a high proportion of women in senior leadership positions
Other companies actively try to recruit my company's employees
You are only expected to lead when you have a formal position of authority
Makes it easy for people to work from home
Requires an appreciation of global issues as a key job requirement
There are a sufficient number of qualified internal candidates who are ready to
assume open leadership positions at all levels
Views helping employees achieve work-life balance as a priority
The top team has clearly articulated a set of organizational values that guide
behavior
Leadership development programs better enable employees to deliver on my
company's goals/strategies
Self-organizing project teams are the main way work is accomplished
Senior leaders personally spend time actively developing others
Employees are encouraged to learn in areas outside their area of expertise
Everyone at every level has the opportunity to develop and practice the
capabilities needed to lead others
Uses corporate social responsibility to recruit employees
Employees are equipped with the right tools to work effectively outside the
office
Male and female employees are paid the same rate for similar jobs
© 2013 Hay Group. All rights reserved
Very accurate/somewhat accurate
Global Top Europe Top
Romania
20
10
Top 10
Romania All
Other
90%
82%
83%
85%
63%
74%
59%
49%
62%
85%
73%
72%
29%
23%
32%
61%
45%
40%
79%
55%
63%
78%
62%
64%
58%
38%
27%
55%
74%
66%
66%
57%
65%
63%
61%
56%
94%
90%
93%
87%
84%
72%
80%
71%
61%
59%
43%
74%
65%
70%
70%
68%
77%
42%
71%
76%
73%
51%
53%
45%
68%
58%
61%
44%
82%
66%
60%
48%
81%
87%
87%
83%
40

40. Response to all survey questions (2/4)
No. Question
Q19 Our leaders are change agents who initiate change towards higher
environmental standards
Q20 We actively recruit cultural minorities
Q21 Has introduced an on-boarding program to help new parents return to the
workplace and focus on their careers
Q22 Has an organizational structure that favors quick communication paths
Q23 When people move between projects, we are still effective at creating wellorganized teams
Q24 Leaders have the ability to generate personal and organizational loyalty
Q25 More work between leaders is conducted when they are in different physical
locations
Q26 Has a 'family friendly' corporate culture to support employees raising children
Q27 Leaders are advocates for environmentally responsible business practices
Q28 Leaders work hard to connect people with projects that are personally
meaningful to them
Q29 Leaders are culturally savvy and have the skills to work effectively with
diverse teams
Q30 Actively applies sustainable and energy efficient policies
Q31 Uses new technologies (such as digitalization and web and video based
media) to cut costs and increase flexibility of communication
Q32 Focuses on older employees in order to avoid early retirement and keep them
motivated
Q33 Senior management works together to support the overall objectives of the
organization
Q34 People at my level often end up working at cross-purposes because
© 2013 Hay Group. All rights reserved
management gives us conflicting objectives
Very accurate/somewhat accurate
Global Top Europe Top
Romania
20
10
Top 10
Romania All
Other
86%
66%
90%
73%
71%
48%
42%
32%
43%
32%
30%
26%
78%
65%
71%
72%
78%
66%
59%
59%
84%
70%
68%
69%
58%
51%
48%
39%
65%
60%
68%
89%
73%
86%
62%
77%
82%
70%
83%
76%
84%
77%
86%
80%
83%
79%
84%
70%
86%
81%
87%
85%
42%
33%
21%
33%
91%
84%
91%
85%
30%
23%
14%
13%
41

41. Response to all survey questions (3/4)
No. Question
Q35 Management systems are flexible enough to allow us to find and address new
kinds of opportunities
Q36 Runs unprofitable projects to try new things
Q37 Groups/projects dedicated to exploring or starting up new kinds of products or
services are measured and rewarded using exactly the same metrics as
established lines of business
Q38 Encourages employees to spend much time discussing customers’ future
needs
Q39 Provides structured opportunities for younger employees to promote
innovative ideas to senior leaders
Q40 Treats failure (after a good effort) as a learning opportunity, not something to
be ashamed of
Q41 Recognizes or rewards employees for really new and different business ideas
Q42 Views employees in new start-up or innovation areas as having equal
importance to those driving operational improvement
Q43 Rewards and stimulates collaboration across business units to develop new
lines of business
Q44 Provides employees access to resources for innovation, even though success
is not guaranteed
Q45 Provides incentives to encourage operational efficiency
Q46 Rewards and stimulates collaboration across business units to improve
performance
Q47 Encourages people to use appraisals and other feedback to improve their
performance
Q48 Utilizes rewards or reprimands that are based on a rigorous measurement of
© 2013 Hay Group. All rights reserved
performance against goals
Very accurate/somewhat accurate
Global Top Europe Top
Romania
20
10
Top 10
Romania All
Other
71%
61%
56%
56%
48%
32%
12%
16%
55%
54%
59%
52%
78%
71%
70%
64%
71%
63%
70%
69%
72%
71%
67%
55%
77%
67%
77%
69%
80%
68%
84%
78%
76%
67%
69%
65%
68%
53%
54%
44%
75%
63%
69%
54%
81%
64%
67%
67%
89%
81%
94%
84%
82%
67%
77%
62%
42

42. Response to all survey questions (4/4)
No. Question
Q49 Provides people at my level with creative challenges rather than narrowly
defined tasks
Q50 Encourages people at my level to set challenging/aggressive goals
Q51 Provides business leaders at the frontline all the decision-making authority
they need to respond to changing market conditions
Q52 Senior leaders are effective at helping frontline employees understand our
long-term strategy and what it means for them
Q53 Senior leaders make the relative importance of established versus new lines
of business clear to everyone
Q54 Senior leaders communicate that the firm’s survival depends on adapting to
evolving market trends
Q55 Senior leaders focus attention on running established lines of business
profitably and smoothly
Q56 Senior leaders are willing to take prudent business risks, to support the growth
of the organization
© 2013 Hay Group. All rights reserved
Very accurate/somewhat accurate
Global Top Europe Top
Romania
20
10
Top 10
Romania All
Other
78%
65%
50%
36%
89%
75%
83%
65%
76%
65%
66%
58%
84%
76%
78%
67%
79%
63%
74%
65%
90%
86%
89%
77%
89%
83%
89%
84%
87%
82%
84%
76%
43