ddi leadership audit (india highlights)

GLOBAL LEADERSHIP FORECAST2008|2009INDIA HIGHLIGHTS> D Rajiv Krishnan > Richard S. Wellins, Ph.D.

IND_Hilights0809_CV:Highlights Cover 2/3/2010 2:37 PM

GLOBAL LEADERSHIP FORECAST 2008|2009INDIA HIGHLIGHTS> D Rajiv Krishnan > Richard S. Wellins, Ph.D.

A Welcome from DDI IndiaWe are pleased to present this profile of the current status of

leadership and leadership development within the India business

community. This report grew out of a larger study, the GlobalLeadership Forecast 2008|2009, the fifth in DDI’s research series on

global leadership issues and practices. The results presented here

contrast the responses from HR professionals and organizational

leaders in India with their counterparts on the world stage.

This research could not be more timely. As organizations extend their

reach around the globe and the pace of work life quickens, leadership

has become an increasingly complex and demanding responsibility.

Worldwide, executives in the study identified improving and leveraging

talent as their top business priority. Never before has the development

of the highest-quality leaders been more important to organizational

success.

The current Global Leadership Forecast and this report address

several issues in addition to the state of leadership today. What’s

working and what’s not in developing tomorrow’s leaders? How are

organizations managing their leadership pipeline and successions?

How well are managers prepared to lead across national borders?

Although no single approach to leadership development is right for

every organization or every country, DDI believes that there are sound

practices that work in most situations. We are confident that this

report will offer you new ideas and insights into leadership

development. Hopefully, it will also stimulate your own ideas about

ways that you can significantly enhance the capabilities of the leaders

in your organization.

D Rajiv Krishnan, Managing Director, DDI India

IND_Hilights0809:Highlights 2/3/2010 2:33 PM Page 1

2 India Highlights

ABOUT DDIIn today’s grow-or-die marketplace, having the right

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you will need to execute tomorrow’s business strategy.

We excel in two areas:

• Designing and implementing selection systems that enable you

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• Identifying and developing exceptional leadership talent critical

to creating a high-performance workforce.

DDI is all about giving you the kind of business impact you want over the

long term—that’s what we call realization. The work we do together is

tied to your organization’s strategies and becomes part of your business

and your culture.

Additionally, if your business is multinational, DDI has the kind of global

resources you need to implement your talent initiatives effectively and

consistently worldwide.

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CONTENTS4 STUDY PARTICIPANTS

5 LEADERSHIP TODAY

5 Business Priorities

6 Evaluating Leaders

6 DEVELOPING LEADERS

6 Evaluating Leadership Development

Programs

7 Development Methods

8 Executing Leadership Development

Programs

9 HIGH-POTENTIAL LEADERS

9 Identifying High-Potential Leaders

9 Evaluating High-Potential Development

Programs

10 Executing High-Potential Development

Programs

11 Succession Planning

12 MULTINATIONAL LEADERS

12 Identifying Multinational Leaders

12 Treatment of Multinational Leaders

13 CONCLUSIONS AND RECOMMENDATIONS

14 APPENDIX

14 Demographics

15 About the Authors

15 Acknowledgments

3


STUDY PARTICIPANTSThis report is based on survey responses from 966 human resource

professionals and leaders based in India. One HR professional filled in a

survey for each organization or major organizational business unit. The

HR professionals invited representative samples of their organization’s

leaders to complete leader surveys. Respondents from India are

compared in this report to the total group of HR professionals and leaders

from 76 countries in the Global Leadership Forecast (see Table 1).

The organizations in India were slightly smaller on average than those in

the global sample; that is, there were more small organizations (1,000

employees or less) and fewer medium-sized and large organizations (see

Figure 1). Most organizations (70 percent) were multinationals (i.e., they

owned, operated, or had affiliate offices in multiple countries); in the

global sample, 61 percent were multinationals.

The India sample differed from the global average with respect to

leaders’ management level. There were fewer first-level leaders and

more senior-level leaders in the India sample (see Figure 2). Additional

information about the organizations and leaders in India is in the

demographics section of this report.

4 India Highlights

Sample Size

India GlobalHR Professionals 38 1,493Leaders 928 12,208TOTAL 966 13,701

10,001 or more

1,001 to 10,000

1 to 1,000

GLOBAL

10,001 or more

1,001 to 10,000

1 to 1,000

INDIA

34%

18%

47%

24% 38%

39%

FIGURE 1 Organization Size

INDIAExecutive-level

First-level

Senior-level

Mid-level

GLOBAL Executive-level

First-level

Senior-level

Mid-level

13% 15%

35%

36%

10%

27%

37%

26%

FIGURE 2 Management Level of Leaders

TABLE 1


LEADERSHIP TODAYBusiness PrioritiesLeaders were asked to identify the most important

business priorities for their organization; they could

select any of the items that applied. We focused

on the perspectives of executives, whose thinking

best represents where their organizations are

headed. Figure 3 lists the items from highest to

lowest priority according to executives worldwide.

The top priorities for executives in India were

growth, improving and leveraging talent, and

improving customer relationships. These

priorities reflect the great need for managing

India’s rapidly growing economy. Few executives

in India considered international presence or

new acquisitions to be high priorities for their

organizations. Given their organizations’ high rate

of growth in recent years, the executives seem to prefer

strengthening the leadership and management of their

organizations than introducing additional uncertainties

through expansion.

The top priorities forexecutives in India were

growth, improving andleveraging talent, and

improving customerrelationships.

5

0% 20% 40% 60% 80% 100%

Improve or leverage talent

Growth

Improve customer relationships/service

Control costs

Improve production/operating efficiency

Identify ways to improve quality

Improve company culture

Define a clear or new company strategyDevelop new technology and/or

processes (innovation)Build new company capabilities

Improve market image or reputation

Enter new marketsExpand or strengtheninternational presence

Manage new acquisitions or mergers

77%75%

79%69%

74%66%

67%64%

58%59%

60%58%

53%57%

47%54%

53%49%

46% 50%

43%

35%

24% 25%

39%

19%

India Global

52%

18%

FIGURE 3 Executives’ Business Priorities


6 India Highlights

Evaluating LeadersWhen asked to rate the overall quality of leaders in their organization,

slightly more than half of the leaders in India rated them very good or

excellent. The sum of these two ratings was higher than the global

sample (see Figure 4). Figure 4 also shows the percentage of HR

professionals indicating high confidence in leaders’ ability to assure the

success of the organization. Significantly more leaders in India inspired

high confidence among HR professionals than did leaders worldwide.

DEVELOPING LEADERSThis section looks at how organizations in India approach leadership

skills and how well leadership development programs are executed.

Evaluating Leadership Development ProgramsAlmost half of the leaders in India were satisfied with what their

organizations offered to develop their leadership capabilities (see

Figure 5). This proportion was slightly greater than the global norm,

which had declined from DDI’s 2005–2006 Leadership Forecast.Nevertheless, only a little more than one-fourth of the HR professionals

in India gave high ratings to the quality of their leadership development

programs (identical to the global average).

FIGURE 4 Evaluating Leaders

FIGURE 5 Evaluating Leadership Development Programs

hum

anre

sour

ces Confidence in leaders (high)

50%

35%

India

Global

lead

ers

Quality of leaders (very good/excellent)

52%

37%

India

Global

hum

an

reso

urce

s High-quality development programs

29%

29%

India

Global

lead

ers

Satisfied with development opportunities

45%

41%

India

Global


Development MethodsHR professionals were asked to review a list of

development methods and indicate how often

they used them on a four-point scale ranging

from “not at all” to “extensively.” Figure 6 shows

the average ratings for each method for Indian

and global respondents. The methods are

arranged on a continuum that ranges from

passive, external activities (e.g., reading) to

active methods integral to the job (e.g., special

projects within a job). Leaders in the global

sample typically found the active methods on

the right side of the graph more effective than

the more passive ones on the left.

The organizations in India made slightly more

use of active leadership development methods

than did those in the global study; for example,

they made greater use of moving to a new

position, expatriate assignments, and special projects outside

the job. The only active method that rated higher globally than

in India is special projects within a job.

Organizations in Indiamade slightly more use

of active leadershipdevelopment methodsthan did those in the

global study.

7

3.3

3.1

2.9

2.7

2.5

2.3

2.1

1.9

1.7

1.5

Read

ing

Comp

uter-b

ased

lear

ning

Diag

nosti

c ass

essm

ent

Exter

nal c

oach

Inter

nal c

oach

Form

al wo

rksho

ps

Move

to ne

w po

sition

Ex

patria

te as

signm

ent

Spec

ial pr

ojects

outsi

de jo

b Sp

ecial

proje

cts w

ithin

job

India

Global

Passive Active

Aver

age U

se (4

-poi

nt S

cale)

Ratings by HR professionals

FIGURE 6 Use of Leadership Development Methods


Executing Leadership Development ProgramsDDI advocates actions in five key areas to assure that a development

program is executed in a manner that will lead to desired business results.

Items relating to each of these five areas—communication, accountability,

skills, alignment, and measurement—were included in the GlobalLeadership Forecast surveys. Respondents indicated whether important

steps to assure sound execution were taken; they rated each item on a

five-point scale ranging from “strongly disagree” to “strongly agree.”

Figure 7 shows the percentage of HR professionals in India and those in

the global sample who agreed or strongly agreed with key questions

around execution. The items are listed in order from the highest to

lowest endorsement by the global sample.

Organizations in India were much better at clearly communicating the

importance of leadership development than others around the world.

They also were more likely to regularly monitor leadership development

programs. In general, these organizations showed stronger execution

of their leadership development programs than the typical organization

worldwide. The exceptions were slightly fewer organizations in India

holding leaders accountable for developing their own skills and negligibly

fewer holding senior managers accountable for leadership development

programs. Overall, their approach should put organizations in India in a

better position to benefit from their leadership development efforts and

help raise the quality of their leaders over time.

8 India Highlights

FIGURE 7 Executing Leadership Development Programs

0% 20% 40% 60% 80%

Aligned with business priorities

Accountable for developing own skills

Clear communication of importance

Aligned with performance management

Managers held accountable

Managers have support tools/knowledge

Consistent deployment across locations

Senior management held accountable

Regularly monitored

Results formally measured

63%60%

53%57%

70%53%53%

52% 50%

49% 47%

39% 42%

37% 34%

35%42%

29% 29%

26%

India GlobalRatings by HR professionals

Percent Agree or Strongly Agree


HIGH-POTENTIAL LEADERSHigh-potential employees were defined as those designated

by the organization as having the potential to assume high-

level leadership roles and who are put into a special pool.

Typically, these employees are placed in accelerated

development programs to prepare them for their future roles.

Identifying High-Potential LeadersCompared to the worldwide sample, a larger proportion of

organizations in India (61 percent) had a process for identifying

high-potential leaders (see Figure 8). About 4 in 10 leaders in

India identified themselves as being in a high-potential program,

a greater proportion than in the global sample.

Evaluating High-Potential DevelopmentProgramsTwo in five organizations in India (42 percent) had a program

to accelerate the development of their high-potential leaders,

slightly more than the typical organization in the global sample

(39 percent). Worldwide, those in high-potential programs

were much more positive about their development programs

than leaders who were not in such a special group. This was

also true in India (see Figure 9).

othe

r le

ader

s 36%

35%

India

Global

Ratings by leaders

high

- po

tent

ials

Percent high or very high

53%

48%

India

Global

hum

an

reso

urce

s Process to identify high-potentials

61%

50%

India

Global

lead

ers

Leader is a high-potential

41%

25%

India

Global

About 4 in 10 leaders in India identified

themselves being as ina high-potential

program, a greaterproportion than being

in the global sample.

9

FIGURE 9 Quality of High-Potential Development Programs

FIGURE 8 Identifying High-Potential Leaders


Figure 10 shows a similar pattern for leaders’ satisfaction with their

leadership development offerings. The high-potential leaders in India

and worldwide were significantly more pleased than those who were not

in the special program. Both high-potential and other leaders in India

were similarly satisfied with their development programs as the typical

leader in the global sample.

Executing High-Potential Development ProgramsPerhaps one reason leaders are more satisfied with high-potential

programs is that they perceive them to be much better executed than

programs designed for typical leaders. A comparison of Figure 11 with

Figure 7 (Executing Leadership Development Programs) shows that this

is the case for India as well. With regard to high-potential programs,

organizations in India do a better job than organizations elsewhere of

holding managers and senior management accountable for the program,

consistently deploying programs across locations, and aligning their

high-potential programs with business priorities.

othe

r le

ader

s 37%

37% Global

Ratings by leaders

high

- po

tent

ials

Percent agree or strongly agree

57%

55%

India

India

Global

10 India Highlights

FIGURE 10 Satisfaction with Development Offerings

FIGURE 11 Executing High-Potential Development Programs

0 20 40 60 80

Aligned with business priorities Consistently deployed

across locations Managers accountable

Senior management accountable

Regularly monitored

75%71%

56%49%

63%54%

63%44%

50%49%

India Global




11

As Figure 11 shows, HR professionals in India were much more

positive about the execution of their high-potential programs than

the typical HR representative worldwide. Similarly, the views of

the high-potential leaders in these organizations were also more

positive (see Figure 12). While slightly fewer high-potential

leaders in India had participated in a formal assessment, those

that did reported receiving feedback about their performance and

manager support and having greater alignment in their program

than did high-potentials around the world.

Succession PlanningA high-potential program is often one aspect of an organization’s

succession-planning process. Organizations in India were more

likely to have succession plans for higher-level managers

compared to the average organization worldwide (see Figure 13).

At the same time, organizations in India

were less likely than others to have

succession plans at lower levels. The best

way to assure a qualified cadre of leaders

in the pipeline is to begin at the bottom.

Failure to assure that those with the

greatest potential will rise into the next rung

of management could leave organizations

with a less than optimal pool of candidates

for higher-level positions.

FIGURE 13 Prevalence of Defined Succession Plans

0 20 40 60 80 100

Participated in a formal assessment

Clear communication of importance

Aligned with performance management Manager helps me feel personally

connected to organization Manager is committed to my development

Get sufficient feedback about my performance

Have specific written plan for my development

65%68%

76%69%

81%75%

79%73% 74%

70% 77%

64% 59%

58%

India Global Ratings by leaders


FIGURE 12 Executing High-Potential Development Programs

24%

0

10%

20%

30%

40%

50%

60%

70%

53%

47%

62%

32%

47% 48% 49%

38%

28%

Top-level managers (e.g., CEO, CFO, COO) Multifunction managers Department, function, or project managers First-level functional supervisors (e.g., team leader) Individual contributors (e.g., professionals, frontline)

GLOBAL INDIA


Organizations in Indiawere more likely to

have succession plansfor higher-level

managers compared to the average

organizationworldwide.


MULTINATIONAL LEADERSMultinational leaders were defined as leaders who work on projects,

assignments, or business units that require a great deal of collaboration

with associates in multiple countries. Multinational leaders may be

located outside the home office country (i.e., expatriates) or inside that

country. Multinational leaders include regional, international, and global

leaders. Although national organizations claimed to have a small

proportion of multinational leaders, we focus here on the experiences

of those in multinational organizations.

Identifying Multinational LeadersAmong multinational organizations around the world, only two in five

had a formal process for identifying potential multinational leaders. This

proportion was slightly higher for organizations in India (see Figure 14).

Compared to the worldwide average, a slightly larger percentage of leaders

in India identified themselves as having multinational responsibilities.

Treatment of Multinational LeadersAlthough 44 percent of multinational organizations in India had a process

to identify multinational leaders, only 26 percent had a process to

develop them (compared to 29 percent worldwide).

Half of the multinational leaders in India described their preparation for their

assignments as fair or poor. Although this was better than that reported by

the worldwide sample of multinational leaders (see Figure 15), it is not a

positive finding. Development of multinational leaders appears to be a

universal problem.

12 India Highlights

FIGURE 15 Preparation and Support of Multinational Leaders

FIGURE 14 Identifying Multinational Leaders

hum

an

reso

urce

s Process to identify multinational leaders

44%

40%

India

Global

lead

ers

Leader is a multinational

23%

18%

India

Global

0

20

40

60

80

100

India Global India Global Preparation Support

Poor/Fair Good Very good/Excellent

23%

26%

51%

12%

27%

61%

28%

38%

35%

19%

33%

48%

Ratings by leaders


Although 44 percent of multinational

organizations in Indiahad a process to identify

multinational leaders,only 26 percent had a

process to develop them.

13

Support for multinational leaders in their assignments was not

much better than their preparation. Once again, the leaders in

India rated their experience better than the typical global

leader, but one-third of leaders calling their support poor or fair

still suggests that this is a problem area that deserves more

management attention.

CONCLUSIONS AND RECOMMENDATIONSThe primary business priorities for organizations in India,

according to their top executives, are growth and improving

and leveraging their talent. Economic developments in India

have put the focus on how to develop and prepare leaders to

manage in the growing economy. The good news is that the

quality of leaders in India and the confidence in them is

higher compared to the global average, but it hardly seems

satisfactory when only half of the leaders in India are rated

as very good or excellent.

The leaders in India were more positive than HR professionals

about their leadership development programs. Nearly half the

leaders were satisfied with their development opportunities, but

only slightly more than one-fourth of the HR professionals rated

development programs as high quality. The methods used to

develop leaders in India differed in only small ways from those

in organizations worldwide. However, organizations in India

might get more from their development efforts because their

programs are executed better. Compared to the typical

organization in the global sample, organizations in India were

more likely to communicate about the importance of leadership

development and regularly monitor their programs—signs of

good program execution that increase the likelihood of positive

results down the line.

High-potential programs in India also were rated more

effective than programs around the world. HR professionals

used processes to identify high-potentials with greater

frequency in India, and slightly more programs were rated

higher in India compared to worldwide. Organizations in India

were particularly adept at holding senior management and

managers accountable and aligning their programs with

business priorities. They also were more likely to have

formal succession plans at top levels, but less likely than

organizations worldwide to have succession plans at lower

levels. Organizations in India would benefit from paying

attention to managing progression from the lower levels if

they want to optimize the quality of their leadership pipeline.

Similar to organizations around the world, organizations in

India also could benefit from more focus on multinationals.

Half of multinationals rated their preparation for global

assignments as poor or fair. Although multinational leaders

in India were more positive about their experiences than the

typical multinational leader elsewhere, over a third of them

rate the support they receive for multinational assignments as

poor or fair. Organizations in India could greatly benefit from

creating and implementing a strong development strategy for

this seemingly forgotten group of leaders.


APPENDIXDemographicsOrganizations38 Number in sample

Number of Employees

0% 1–10

0% 11–50

0% 51–100

19% 101–200

12% 201–500

12% 501–1,000

19% 1,001–5,000

12% 5,001–10,000

8% 10,001–20,000

8% 20,001–50,000

8% 50,001 or more

Presence in the Global Market

30% National

70% Multinational (own,

operate, or have affiliate

offices outside own

country)

Leaders928 Number in sample

Management Level

15% First-level (supervisor,

team leader, foreman,

etc.)

35% Mid-level (leader of first-

level leaders)

36% Senior-level

(leader/manager of

mid-level leaders)

13% Executive-level (leader in

a policy-making position)

Organizational Tenure

5% Less than 6 months

7% 6–11 months

19% 1–2 years

27% 3–5 years

19% 6–10 years

9% 11–15 years

13% More than 15 years

Age

4% Less than 25

31% 26–35

44% 36–45

15% 46–55

5% 56–65

1% More than 65

Gender

90% Male

10% Female

14 India Highlights

APPE

ND

IX

NOTE: Numbers may not add up to 100 percent because of rounding.


About the AuthorsRajiv Krishnan is Managing Director of DDI

India. A well-known name in talent management

and leadership training, Rajiv’s knowledge and

experience is sought after by DDI’s clients, such

as Volkswagen, Microsoft, Citibank, Aditya Birla

Group, HSBC, Mahindra, and two of the top four IT service

companies. Rajiv also has helped many DDI clients craft

effective selection and development solutions. Under his

leadership DDI India has completed over 10,000 assessments

and 250 days of leadership training. Rajiv has spoken at

various industry and HR forums and is a frequent commentator

in national, HR, and business media.

Richard S. Wellins, Ph.D., is Senior Vice

President at DDI. Rich is responsible for leading

DDI’s global research programs, launching new

solutions, building strategic alliances, and

executing marketing strategies. During his

tenure at DDI, Rich has authored five books on leadership

and teams and written for more than 20 publications on global

talent management. Rich designs leadership development

programs and provides executive coaching services to

organizations including AXA, Texas Children’s Hospital, and

Nissan Motors.

AcknowledgmentsThis study was a true global effort, and the authors would like to

acknowledge the invaluable contributions of the following people.

Research AdvisorBob Rogers is President of DDI. In addition

to overseeing day-to-day operations, Bob

continues to consult with clients and is a

recognized expert in assessment leadership,

performance management, and organizational

change who presents at major conferences around the world.

In his 30 years at DDI, he has authored and coauthored

numerous articles, monographs, and books, including

Organizational Change That Works: How to Merge Cultureand Business Strategies for Maximum Result and Realizingthe Promise of Performance Management.

15


International PartnersPhilippe Cavat, Rajiv Krishnan, Elmar Kronz, Vic Magdaraog, Steve

Newhall, Ricardo Padilla, Vina Pendit, Kiyoyuki Takeuchi, David

Tessmann-Keys, Bruce Watt.

Project ManagementJulie Hogan

Participant RecruitmentDwiputri Adimuktini, Malu Arredondo, Mary Ann Buffington, Mark Busine,

Monica Chen, Lorena Contreras, Cheryl de la Porte, Nikki Dy-Liacco,

Andrew Eisenhauer, Barbara Endemann, Denise Flaherty, Ramon

Fontaine, Dylan Gleue, Lisa Han, Kumiko Hashimoto, Rodrigo Infante,

Claudette Johnson, Arati Karve, Michelle Lai, Doris Lam, Dorothy Lo,

Yvonne McGowan, Simon Mitchell, Mary Etta Nader, Stephanie Nam,

Panmanee Ong-Art, Marianne Peterson, Zig Rabara, Dr. Devashis Rath,

Dian Rosdiana, Dr. Arunima Shrivastava, Mehzabeen Sitabkhan, Lily

Sun, Julie Vedrinne, Jane Viehman, Christien Winter, DDI sales and

consulting associates globally.

Research TeamJazmine Boatman, Stephanie Neal

EditorialMike Crawmer, Shawn Garry

Graphic DesignMike Lawley, Susan Ryan, Janet Wiard

Web TeamNoelle Conover, Mark Hamilton

16 India Highlights


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