RESPONSIBLE LEADERSHIP ROAD MAP

THE GLOBAL BENCHMARK

YOUR REPORT ON RESPONSIBLE LEADERSHIP IN AUSTRALIA

This paper contains the research findings of the first ever benchmark to determine the maturity of Responsible Leadership practices and technologies in business and organisations in Australia. It uses a unique methodology to quantify Responsible Leadership implementation across different components of Leadership, and across many industry sectors. Responsible Leadership is a large and complex subject, and increasingly important as more people understand the role Responsible Leadership can take in enabling sustainable business practices, performance and profitability.

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Responsible Leadership ROAD MAP:

THE GLOBAL BENCHMARK

A REPORT ON RESPONSIBLE LEADERSHIP FROM AUSTRALIA AND OVERSEAS

All rights reserved. The content of this report represents our interpretation and analysis of information gathered from various sources, but is not guaranteed as to accuracy or completeness. Reproduction or disclosure in whole or in part to other parties, by any means whatsoever, shall be made only upon the written and express consent of Total Executive.

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RL ROAD MAP: THE GLOBAL BENCHMARK

EXECUTIVE

SUMMARY

This report examines the Responsible Leadership maturity of businesses and organisations in Australia. It is based on a detailed survey with over 1000 executive respondents and further interviews with over 100 CEOs, business owners and executive leaders. The research methodology allows Responsible Leadership implementation to be quantified and compared, between industry sectors into the future across other countries in planning, including USA, the United Kingdom, and India with ongoing research.

Responsible Leadership is rapidly being observed as providing future impact and benefit for all stakeholders in business including;

Community
Customers
Employees
Shareholders

The underlying important factors of Responsible Leadership emerged through all survey respondents and interviewees as;

Accountability and
Long term focus.

91% of executive respondents agree they do NOT have Responsible Leadership as part of the core values within their business.

96% of C-Level executives interviewed to date agree Responsible Leadership is core to their business future.

As global knowledge increases with social media and other digital communications, accountability of leadership that is responsible and leadership that is irresponsible will become mainstream knowledge.

The Responsible Leadership 2010 Research and Responsible Leadership ROAD MAP (RL ROAD MAP) provides the research and knowledge of where we start…

RL ROAD MAP: THE GLOBAL BENCHMARK

EXECUTIVE

BACKGROUND

Intergenerational responsibility and balancing the three key elements of responsibility and business sustainability (economic, social and environmental) presents both challenges and opportunities to the way we live today. With rapid population growth and the increasing impact of our knowledge of the global climate in business and how we can act now.

IT is a key facilitator that enables us to enact change. Leadership via communication and development of people are the other two key enablers.

The subject of Responsible Leadership has been discussed for years. This report shows that developments have been disappointing. There has been some action, but the data shows there is much more to be done.

Australia, as one of the most economically successful countries financially through the Global Financial Crisis was the first country interviewed and surveyed, results show there is vast room for improvement in responsible leadership...

The Responsible Leadership ROAD MAP will be properly measured and monitored. Globally we look forward to support via our networks in this research and application of skills unearthed.

Responsible Leadership is not a fad. Making business more responsible helps ensure sustainability of business long term.

Responsible leaders leverage benefits outlined in The Responsible Leadership ROAD MAP to make the organisation more effective. Associated benefits will be increasingly important with trends in the years to come.

This report shows that a start has been made, but it also shows we have a long way to go…

RL ROAD MAP: THE GLOBAL BENCHMARK

METHODOLOGY

This report uses the methodology developed by Total Executive on behalf of Responsible Leadership.

The Responsible Leadership Index will grow globally, starting in Australia. The results will allow the development of an overall index for business understanding of Responsible Leadership - using organisations in any industry or country.

The methodology allows separate indices to be calculated for each of five key components of Responsible Leadership:

Business Focus
Core Values
Executive Consideration
Appreciation of Need
Time Focus

These areas are outlined in detail in The RL ROAD MAP Framework. The data was gathered through online surveys of organisations in most industry sectors across Australia, which asked respondents at executive level about Responsible Leadership. Surveys were conducted between 2010 and 2012.

Most questions in the online surveys were asked on a 0-5 scale 0 = Strongly Agree and 5 = Strongly Disagree. This methodology ensures quantitative comparisons between respondents. The result is what we believe to be the most comprehensive analysis ever undertaken of the relative maturity of Responsible Leadership within Australia with knowledge for a number of important global markets.

The results in each area of the Responsible Leadership ROAD MAP, and overall, are compared between each business sector surveyed. A total of over 1,000 respondents. The breakdown of respondent numbers by industry sector is shown in Figure 1 below.

RL ROAD MAP: THE GLOBAL BENCHMARK

WHAT IS RESPONSIBLE LEADERSHIP?
Responsible Leadership 2010

What is Responsible Leadership? Why is it important to business longevity and sustainability?

There are three key aspects to Responsible Leadership that emerged from Total Executive Responsible Leadership research:

Accountability
Consider all stakeholders
Focus on the Long Term

Via our interviews and the global Responsible Leadership 2010 Conference and associated surveys we asked executives to provide a definition of Responsible Leadership.

Here is the most popular definition:

RESPONSIBLE LEADERS ESTABLISH ENDURING STANDARDS

The second most popular definition of Responsible Leadership:

Responsible Leaders ensure moral and ethical conduct in everyone they empower…

Dozens of additional components to the definition were added via the Responsible Leadership global conference and associated research.

The RL ROAD MAP utilises this research to formulate a structure that can be customised for every entity to help them improve their performance, productivity and profit through engaging responsible leadership into the future.

RL ROAD MAP: THE GLOBAL BENCHMARK

Respondents by Industry Sector

Executives from the following industry sectors responded to our research:

Figure 1: Responsible Leadership Research Respondents by Industry Sector

For Further detail of respondents Contact Us

RL ROAD MAP: THE GLOBAL BENCHMARK

KEY
FINDINGS

The research provides a number of valuable insights into the comparative RL ROAD MAP performance of organisations between industry sectors within Australia. The most significant finding is the relative lack of maturity of RL ROAD MAP practises – in every industry sector. While some industries do better than others, the overall performance is not high – a bare pass mark in most cases.

Key Finding 1: Overall RL ROAD MAP Maturity is comparatively low

The overall picture illustrated in this report is one of comparatively low RL ROAD MAP maturity. The overall Responsible Leadership index across all industries is 52.7 (out of 100).

In some sectors surveyed for the index it drops into the low 40s, indicating a profound lack of awareness of many of the basic precepts of Responsible Leadership.

Figure 2: Responsible Leadership Index by Sector

The other side of that coin, of course, is that there is substantial room for improvement. The findings show that RL ROAD MAP practices in most organisations are often quite rudimentary. It is possible to improve them substantially with comparatively little effort.

There are many different components to the RL ROAD MAP index. This report examines the 3 core components, indicating the strengths and weaknesses of each. There is great variability between components (see Key Finding 3), indicating a lack of coherence or coordination in most organisations’ RL ROAD MAP strategy at an executive level.

RL ROAD MAP: THE GLOBAL BENCHMARK

Key Finding 2: Education / Health / Community is the best performing industry sector, Manufacturing is the worst

Figure 2 above shows the relative performance of each industry sector, and compares them to the overall RL ROAD MAP Index across all industries.

The best performing industry sector is Education / Health / Community and the worst Manufacturing. There are significant differences of over 20% by industry sector.

As the RL Road Map research expands across different continents, we look forward to viewing global comparisons.

RL ROAD MAP: THE GLOBAL BENCHMARK

Key Finding 3: RL ROAD MAP Appreciation does best, Values by far the worst

Figure 3: Responsible Leadership Index by Component

The chart shows the overall RL ROAD MAP Responsible Leadership Index and its five constituent components:

Business Focus
Core Values
Executive Consideration
Appreciation of Need
Time Focus

The aspirational component does best, consistently across all respondents. This is the component under the control of future executive decisions, with the support of shareholders. It asks simply; Should there be more responsible leadership across our planet? 89% of leaders and executives agree. This is measured as the Appreciation of a need for Responsible Leadership component.

Time is the 2^nd most popular component. 75% of Executives and Leaders believe long term should be the focus rather than short term for responsible leadership.

By far the worst component is Values – only 9% of executives and leaders believe their business, enterprise, government department or organisation has Responsible Leadership included within their core values.

Other components are both reasonably equal – sharing pro’s and against at nearly 50 / 50.

Executives and Business Leaders are close to equal in terms of believing across industries in:

Their business focus includes responsible leadership
Our leaders regularly consider ways to be responsible

The total of all components averages out at 52.7%.

RL ROAD MAP: THE GLOBAL BENCHMARK

FULL
RESULTS

There are many more insights available from the Responsible Leadership White Paper.

These results are providing the foundations for the RL ROAD MAP - The Global Benchmark that provides business, enterprise, government departments and organisations with analysis of where they currently sit in the field of Responsible Leadership.

The RL Road Map also provides a structure that can be customised for every entity to help them improve their performance, productivity and profit through engaging responsible leadership into the future.