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Unformatted text preview: ess environment,
where boundaries between diﬀerent players are more
porous, competitors sometimes serve as collaborators,
and the range of stakeholders making demands on the
company has greatly expanded. ◊ Encouraging leadership training by, for instance, establishing or augmenting corporate “universities” Yet most companies report a shortage of future leaders
with the requisite capabilities. This shortage, which has
existed for certain highly skilled technical positions, is
now emerging at all levels of organizations. It will only
get more extreme in most Western countries and Japan
because of well-documented demographic shis.
Executives also worry that their leadership-development
programs have not kept pace with the new complexities.
Many such programs are disconnected from workforceplanning activities, divorced from explicit career paths, or
lacking transparent criteria for employee selection.
Companies will thus be pressed to advance their leadership development along several fronts:
C P A ◊ Devising better approaches to career development
conversations and plans, and to building the capabilities among high-potential employees to handle complexity
◊ Planning and organizing talent flows internally
and externally on a multinational—even global—
scale Leadership Talent Is in Short Supply
Our survey reveals a major gap for high-potential employees who will serve as the next generation of leaders. In
the leadership pipeline, we distinguish among four
groups: emerging potentials—young university graduates
who are likely to ﬂourish; high potentials—promising
employees who can be found at any level; and senior
manager and CEO successors—who have already advanced and have the potential for senior executive leadership.
Our survey respondents are most worried about the talent gap for senior manager successors, with 56 percent
citing a critical talent gap for this group. Fiy percent of
respondents are concerned about the gaps for CEO successors and high potentials, and 40 percent for emerging
potentials. A clear and well-structured leadership-talent strategy is
critical. Companies with such a strategy ﬁll roughly onethird more positions internally than do companies without a clear strategy, our survey ﬁnds. High-performing
companies, for instance, report ﬁlling 60 percent of top
executive positions with internal candidates, while low
performers ﬁll just 13 percent of those slots internally. The leadership talent shortage is most acute in IT and, to
a lesser extent, in support functions and in marketing
and sales. The regions with the biggest gap are the Commonwealth of Independent States (the former Soviet
Union), India, and South America. (See the sidebar “Stimulating Economies Through Talent Mobility.”) In Search of Homegrown
Talent High-performing MTR Corporation of Hong Kong, which
operates rail systems around the world,
companies fill most
maintains a pipeline with three levels of
seniority to meet the need for future le...
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- Fall '13