Corporate Executives Views on Leadership, Employee Performance & Innovation A Survey Research Project

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1 Corporate Executives Views on Leadership, Employee Performance & Innovation A Survey Research Project

2 Table of Contents Background & Methodology 3 Overview 4 Summary of Results 7 1. Productivity & Performance 8 2. Leadership Investment/Innovation 13 Appendix 14 A. Detailed Tables 15 B. Respondent Profile 28 2

3 Background & Methodology This report highlights findings from a survey among senior executives at companies in the U.S. with revenue of $1 billion or more. Conducted on behalf of Gap International, questions explored perceptions regarding employee potential and performance, expected investment in innovation over the next year, and more. The survey was conducted online by Harris Interactive, between September 12 30, A total of 305 interviews were completed. Note that with a sample size of 305 interviews, the maximum error range surrounding results is +/- 5.6 percentage points (at a 95% Level of Confidence). Error range (or standard error) is provided to serve as a guideline. Such statistical applications only apply to true random probability samples. 3

4 Overview 4

5 Overview Attitudes about Employee Performance The vast majority of these corporate executives agree that (1) they have established methods to help their employees/teams consistently achieve success and (2) they can accurately predict if their teams will deliver the results they commit to achieving. Noteworthy, however: while over 90% at least somewhat agree with these statements, only about one-third strongly agree. Similarly, 91% at least somewhat agree that they often draw on other executives to help solve high level business problems but this number drops dramatically (to 38%) when one looks solely at the proportion that strongly agree with the statement. 72% agree that all employees in their organizations could exceed performance goals (with 19% strongly agreeing ). However, when asked in a slightly different way, executives surveyed felt that [an average of] 37% of their employees have the potential to be top performers. Only 19% of executives felt that more than 70% of their employees have the potential to be top performers. Leadership 85% consider it very important to maximize organizational talent and 83% consider it very important to effectively empower employees without having to resort to micro-managing. 77% think it is very important to build effective inter-departmental collaboration and 72% feel that increasing the capacity of the company leaders (such as expanding their thinking and capabilities) is very important. 5

6 Overview Investment/Innovation Executives were provided with a list of 6 corporate investment areas and asked in which ones the company would be investing most of its innovation efforts over the next 12 months. Leading the way was technology, with twothirds acknowledging that this would be an area of innovation investment effort. Incidences for the other five areas paled in comparison, although they still had fairly sizable proportions acknowledging that they would be areas of innovation investment: For example, 44% cited optimizing employee performance, 43% leadership training, 43% operations, and 41% research and development. Trailing these was cross-functional communications, with 34% feeling that this would be an area of innovation investment effort. 6

7 Summary of Results 7

8 Productivity & Performance 8

9 Productivity & Performance Attitudes about Employee Performance The overwhelming majority at least somewhat agree that they have established a method to help the team consistently replicate success. However, only a third strongly agree with this statement. Similarly, 32% strongly agree that they can accurately predict whether their teams will deliver results they commit to achieving. 72% at least somewhat agree that all employees could exceed their performance goals (i.e., 28% disagree with the statement). Nearly all (91%) agree on some level that they often draw upon others to help solve high-level business problems. % Strongly or Somewhat Agreeing with Statement % Strongly Agreeing with Statement I can accurately predict I can accurately if predict my team if my will team deliver will deliver the results they commit to the results they commit achieving to achieving I can accurately predict I can accurately if my predict team will if my deliver team 95% will deliver the results they the results they commit commit to achieving to achieving 32% I have established a I have established a method that method that helps my helps my team replicate their success team replicate their consistently success consistently I have established a I have established a method that method that helps my helps 94% my team replicate their team replicate their success consistently success consistently 33% I often draw upon other I often draw executives upon other thinking executives' to thinking to help me solve high-level help me solve high-level business problems business problems I often draw I often upon draw other upon other executives' executives thinking to thinking help me to 91% solve high-level help me business solve high-level problems business problems 38% All employees at my All employees at my organization organization could could exceed their corporate exceed their corporate performance goals performance goals All employees at my All employees at my organization organization could 72% could exceed their corporate exceed their corporate performance goals performance goals 19% Question: How much do you agree or disagree with the statement? Sample Size = 305 9

10 Productivity & Performance % of Employees That Have the Potential to be Top Performers These executives believe that on average 37% of their employees have the potential to be top performers. Roughly one quarter of executives believe that over half of their employees have such potential. % of Employees That Have Potential to be Top Performers 1-10% 16% 11-20% 28% 21-30% 14% 31-40% 41-50% 8% 8% Avg. = 36.8% of employees 51-60% 61-70% 3% 4% 71-80% 11% 81-90% % 4% 4% Question: What percentage of your employees has the potential to be top performers? Sample Size =

11 Leadership 11

12 Leadership % Rating Specific Leadership Challenges as Very Important 85% consider maximizing organizational talent very important. 83% consider effectively empowering employees without having to micromanage very important. Over three-quarters think it is very important to build effective collaboration and understanding across teams/departments. % Rating Specific Leadership Challenges as Very Important Maximizing the the talent in in my organization 85% Effectively empowering Effectively people to empowering perform without people to having perform to resort without to micro-managing having to resort to micro-managing 83% Creating Creating timely, timely, innovative solutions for for challenging problems 79% Building effective collaboration Building and effective understanding collaboration across and understanding teams departments across teams and departments 77% Increasing Increasing the capacity the capacity of the leaders of the leaders at my at company my company (e.g., expanding (e.g., expanding their thinking, their thinking, capabilities and/or bandwidth) 72% Question: How important are the following leadership challenges to you? Sample Size =

13 Investment/Innovation 13

14 Investment/Innovation Areas of Innovation Investment Over the next year, where do executives foresee investing in innovation? Twothirds say in technology, 44% in optimizing employee performance, 43% in leadership training,, 43% in operations, and 41% in R&D. Areas where Company will Invest its Innovation Efforts in next 12 months (Technology/Research & Development - NET) 77% Technology 67% Research & Development 41% Optimizing Employees Performance 44% Leadership training 43% Operations 43% Cross-functional communications 34% Question: In which of the following areas will your company invest most of its innovation efforts during the next 12 months? (Select all that apply) Sample Size =

15 Appendix 15

16 Appendix A / Detailed Tables Question 1 How much do you agree or disagree with this statement? I have established a method that helps my team replicate their success consistently. Q1: [How much do you agree or disagree with this statement?] I have established a method that helps my team replicate their success consistently. Strongly agree 33% Somewhat agree 62% Somewhat disagree 6% Strongly disagree 0% Sample Size =

17 Appendix A / Detailed Tables Question 1 How much do you agree or disagree with this statement? I can accurately predict if my team will deliver the results they commit to achieving. Q1: [How much do you agree or disagree with this statement?] I can accurately predict if my team will deliver the results they commit to achieving. Strongly agree 32% Somewhat agree 63% Somewhat disagree 5% Strongly disagree 0% Sample Size =

18 Appendix A / Detailed Tables Question 1 How much do you agree or disagree with this statement? All employees at my organization could exceed their corporate performance goals. Q1: [How much do you agree or disagree with this statement?] All employees at my organization could exceed their corporate performance goals. Strongly agree 19% Somewhat agree 53% Somewhat disagree 24% Strongly disagree 4% Sample Size =

19 Appendix A / Detailed Tables Question 1 How much do you agree or disagree with this statement? I often draw upon other executives thinking to help me solve high-level business problems. Q1: [How much do you agree or disagree with this statement?] I often draw upon other executives thinking to help me solve high-level business problem. Strongly agree 38% Somewhat agree 53% Somewhat disagree 9% Strongly disagree 0% Sample Size =

20 Appendix A / Detailed Tables Question 2 What percentage of your employees has the potential to be top performers? % of Employees That Has Potential to be Top Performers 1-10% 16% 11-20% 28% 21-30% 14% 31-40% 41-50% 8% 8% 51-60% 61-70% 3% 4% 71-80% 11% 81-90% % 4% 4% Sample Size =

21 Appendix A / Detailed Tables Question 3 How important is the following leadership challenge? Creating timely, innovative solutions for challenging problems. Q 3: [How important is the following leadership challenge?] Creating timely, innovative solutions for challenging problems. Extremely important 39% Very important 40% Important 18% Somewhat unimportant 3% Not at all important 0% Sample Size =

22 Appendix A / Detailed Tables Question 3 How important is the following leadership challenge? Building effective collaboration and understanding across teams and departments. Q 3: [How important is the following leadership challenge?] Building effective collaboration and understanding across teams and departments. Extremely important 42% Very important 35% Important 20% Somewhat unimportant 3% Not at all important 0% Sample Size =

23 Appendix A / Detailed Tables Question 3 How important is the following leadership challenge? Effectively empowering people to perform without having to resort to micro-management. Q 3: [How important is the following leadership challenge?] Effectively empowering people to perform, without having to resort to micro-management. Extremely important 46% Very important 38% Important 14% Somewhat unimportant 3% Not at all important 0% Sample Size =

24 Appendix A / Detailed Tables Question 3 How important is the following leadership challenge? Increasing the capacity of the leaders at my company. Q 3: [How important is the following leadership challenge?] Increasing the capacity of the leaders at my company. Extremely important 33% Very important 39% Important 25% Somewhat unimportant 3% Not at all important 0% Sample Size =

25 Appendix A / Detailed Tables Question 3 How important is the following leadership challenge? Maximizing the talent in my organization. Q 3: [How important is the following leadership challenge?] Maximizing the talent in my organization. Extremely important 42% Very important 42% Important 13% Somewhat unimportant 2% Not at all important 0% Sample Size =

26 Appendix A / Detailed Tables Question 4 In which of the following areas will your company invest most of its innovation efforts during the next 12 months? (Select all that apply) Q4: In which of the following areas will your company invest most of its innovation efforts during the next 12 months? (Select all that apply) (Technology/Research & Development - NET) 77% Technology 67% Research & Development Optimizing Employees Performance Leadership training Operations 41% 44% 43% 43% Cross-functional communications 34% Other Not investing during the next 12 months 1% 5% Sample Size =

27 Appendix A / Detailed Tables Question 5 Would you say that things in the country are going in the right direction, or have they pretty seriously gotten off on the wrong track? Q5: Would you say that things in the country are going in the right direction, or have they pretty seriously gotten off on the wrong track? Right direction 47% Wrong track 53% Sample Size =

28 Appendix A / Detailed Tables Question 6 When thinking about the state of affairs today in corporate America, would you say that things are going in the right direction, or have they pretty seriously gotten off on the wrong track? Q6: When thinking about the state of affairs today in corporate America, would you say that things are going in the right direction, or have they pretty seriously gotten off on the wrong track? Right direction 60% Wrong track 40% Sample Size =

29 Appendix B / Respondent Profile Respondent Profile Region # Northeast 104 Midwest 59 South 76 West 66 Company Gross Revenue $1 $4.9 billion 165 $5 $9.9 billion 40 $10+ billion 100 # of Employees <10, , Gender Male 222 Female 83 Average Age 47.1 Job Title C-Level/President/Chairman 122 VP 172 Other 11 Total

30 Gap International 700 Old Marple Road Springfield, PA USA gapinternational.com 2014 Gap International. All Rights Reserved.

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