Data Watch

Leadership Dearth to Leave Growth Strategies at Risk

More than 75% of HR leaders are concerned with their ability to develop future leaders, according to a recent IBM survey of more than 400 HR executives in 40 countries. Findings from the survey pinpoint the importance of the adaptable workforce as a precursor for future organizational success. The associated report, Unlocking the DNA of the Adaptable Workforce, identifies three critical success factors to developing such an adaptable workforce are the ability to predict future skills, locate experts, and foster collaboration.

Traditional means of talent acquisition, development, and management, authors of this Global Human Capital Study from IBM say, are undergoing fundamental changes as corporations are becoming more global, virtual and integrated. As a result of these important shifts, the study suggests that companies are placing their growth strategies at risk if they cannot identify and develop the next generation of leaders. The old rules no longer apply, and global business now faces a leadership crisis comprising three components:

1. The need to source talent and ideas wherever they reside in the world
2. The expansion of global operations in emerging economies
3. Increase in the number of senior leaders retiring as a result of the aging workforce

The study shows that leadership issues are surfacing worldwide, with organizations in every corner of the globe being impacted. Companies in the Asia Pacific region are most concerned with their ability to develop future leaders (88%). They are followed by Latin America (74%); Europe, Middle East and Africa, (74%); Japan (73%); and North America (69%).

Rotating employees across divisions and geographies is also an important way to hone future leadership talent. Yet, according to the study, 36% of HR executives state that rotating leadership talent is a significant challenge in developing future leaders. Another key challenge is the generation gap—passing on knowledge from older to younger employees (28%).

Furthermore, the study finds that 52% of HR executives say a significant workforce-related challenge facing their organizations is the inability to rapidly develop skills to address current and/or future business needs. In addition, employees' skills are often misaligned: More than one-third of study participants state that their employee skills are not aligned with current organizational priorities (36%).