Which 40 Companies Are Best for Leaders? In his Psychology Today Blog, Professor Riggio Points to Chief Executive Magazine’s Annual List
Ronald E. Riggio. the Henry R. Kravis Professor of Leadership and Organizational Psychology and former director of the Kravis Leadership Institute at Claremont McKenna College, directs readers of his Psychology Today blog to an annual list of “40 Best Companies for Leaders.” The list, compiled by Chief Executive magazine, ranks companies based on the investment they make in developing their leaders.
“Perhaps the most dramatic finding,” Riggio notes in his May 23 entry, “is that companies that invest in leadership development generate dramatically greater market value over time than companies with weak leader development programs.”
Riggio says companies are rated on four criteria: (1) Having a formal leadership development process; (2) the CEO’s commitment to leadership development; (3) the percentage of leadership positions that are filled by internal candidates; (4) the number of other companies that recruit leaders from the company.
The top companies, he says, are no surprise: Procter & Gamble, IBM, GE, 3M, and Southwest Airlinesall companies that are known for their leadership development programs.
Blogs Riggio: Here’s what Chief Executive says about top-ranked Procter & Gamble: “Quite simply, P&G executives are considered the Navy SEALs of management.” That’s because, he says, the company has its own “college” for internal leader development, and has ongoing formal and informal leadership development programs.
Concludes Riggio: Leadership matters, and caring for your employees also matters. Companies that care for and invest in their employees have greater financial success.