What Makes a Company Great at Producing Leaders?

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GE is well known as an “academy company” — a talent incubator that exports effective leaders to other organizations and even industries.

To better understand which companies are top talent incubators today, the authors worked with the Official Board, a firm that provides data on corporate organizational charts and executive movement, to survey of 853 executives and interview executive search consultants.

Among the top 25 most mentioned companies, four were consultants and five were technology companies. Another search consultant was more positive about technology companies as sources of talent “because they’ve had to navigate the digital challenges, and… cycle changes that have been much faster than some of the traditional academy companies.”Survey respondents were asked, “When considering the companies you listed above, what specific things do they do to make themselves academy companies?” as an open-ended question to which they could respond in their own words, at length.

However, these companies anticipate a certain degree of attrition. One search consultant suggested that a key practice is “about keeping the best and letting the rest go.” Since “the rest” go to positions in all sorts of industries, talent incubators maintain “strong alumni networks,” which can be a great strategic advantage for an organization.

Talent incubators “have the resources and determination to constantly invest in the development of their leaders.” These resources include sufficient money to invest in training programs; a solid HR function; and a scale that is “big enough to have many positions to learn from, and breadth across industry.”

How do talent incubators strike this balance? An emphasis on long-term thinking and core value propositions keeps them grounded. Meanwhile, they are constantly in dialogue with customers/clients, the broader environment, and their own employees, taking input and creating new models.

 

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