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Leadership and talent management pays off: BCG report

Xinhua, March 16, 2015 Adjust font size:

Companies with strong leadership and talent management practices increase their revenues 2.2 times faster and their profits 1.5 times faster than companies with weak practices, said a report released here by the Boston Consulting Group (BCG) Monday.

The report entitled "The Global Leadership and Talent Index: The Smart Way to Improve Capabilities and Create Value" is the result of a recently completed survey of 1,263 CEOs and HR directors of global companies.

BCG's study divided leadership and talent management into 20 specific capabilities, which are grouped into six categories. Based on the assessment of a company's relative strength of each of these capabilities by the executives, BCG created six levels of leadership and talent management maturity, such as "talent magnets", "average performers", and"talent laggards".

In this way, the study generated the Global Leadership and Talent Index (GLTI), one of the first tools of its kind, which allows companies to accurately assess their leadership and talent capabilities and also lays out a specific roadmap to help them improve. "Leaders have long known that people are their most important asset but have not known how to quantify their impact," said Vikram Bhalla, a senior partner and managing director at BCG and a co-author of the report. "The GLTI gives them the ability to assess their leadership and talent management capabilities and to make changes that will improve their business performance."

The report also revealed that three capabilities, the ability to translate leadership and leadership plans into clear and measurable initiatives, significant time devoted to leadership and talent management by leaders, and leadership accountability for talent development, correlate strongly with business performance.

By using the index as a benchmark, companies can discover how they compare with their peers, define a structured path to building outstanding leadership and talent management capabilities, and quantify the value of doing so. Endi