How do leading organisations implement leadership development

The challenge for today’s business owners and executive leadership teams is to realize that they will never maximize their revenue and profit potential if they do not develop leaders at all levels. Recent studies have found that a staggering 95% of organizations do not spend any resources developing leadership capability below the senior executive level. This has resulted in over 80% of our employees having to report to a manager/supervisor that has not been trained or prepared for the responsibility of people management and leadership.

It is however seen that the companies that do implement a leadership development program and uses tools like 360-degree surveys have observed stupendous growth and are the leading organizations in their industries. Gallup CEO Jim Clifton in the summary accompanying his organization’s 2013 “State of the American Workplace” employee engagement study said

“The single biggest decision you make in your job—bigger than all the rest—is who you name manager. When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits—nothing.”

PepsiCo Phillips

PepsiCo is the world’s second-largest food and beverage business and the global snack leader. It employs over 285,000 people worldwide and has been using 360-degree feedback program for its global leadership population since the 1980s.

In a survey done at PepsiCo, up to 88% of its executives reported that using 360 feedback as a developmental tool was better than most previous developmental experiences. PepsiCo has benefitted from being able to measure employees across its global markets using the same leadership behaviours.

Philips is one of the world’s leading diversified technology companies, primarily focusing on healthcare, consumer technology, and lighting. The main business objective for Philips was to introduce a new feedback program that would better enable development of its employees.

Magdalena Bracco, HR Group Project Leader, Center for Expertise Leadership, Talent and Learning at Philips, explains: “We really believe in the power of feedback to grow our employees, and the 360 tool is the starting point for effective conversations and development plans.” Magdalena Bracco adds: “The business impact has been powerful in helping peoples’ development. For us as a business, it’s invaluable as great leadership is critical to our continued success.”


Other leading organizations that implement Leadership Development programs through 360-degree feedback are Tesco, McDonalds, Starbucks, BT Group and many more. It is clear that to push your company to the next level you need to make sure that a culture of leadership is present and this starts with 360 degree feedback.