3 out of 4 companies in Latin America has a leadership strategy

74% of Latin American companies have defined a strategy of leadership , according data released by global HR consultancy Mercer.

"This indicates that it is high on the agenda of most organizations in Latin America, as are the development of leadership as a key to business success," said Valeria Urbina, head of Climate and Talent Argentina.

Mercer's study on "Best Practices in Leadership" reveals key learnings and best practices collected in leadership development in the region .Was conducted in late 2013 and information was surveyed over 280 organizations in Latin America.

"Designing a model for developing successful leaders need to think holistically. Shall integrated to address leadership issues a strategic approach," said Urbina.

Mercer's approach to designing a successful leadership model includes the definition of the strategy; leadership that is aligned with business needs. The leadership strategy includes the philosophy and tactics of the organization around the definition of leadership competencies required, assessment methods, development strategies and the process of succession.

Strategy

The companies claim not be entirely successful mainly due to lack of time and resources to develop leadership. The 51% say they do not invest enough time in development. 40%, funds / investment are insufficient for development.

Evaluation

The evaluation of leadership is common and usually related to the past performance of the employee . Competency assessments and 360 feedback are the most common tools, although only measure the past and present performance.

Over 90% of organizations share the assessment results with their leaders. Meanwhile 80% links the results of the assessment with the individual development plan.

"The evaluation should use the various tools and tailored solutions to measure the talent-based strategy and competencies / profile success," Urbina said.

And He added: "This ensures that the evaluation is not only suitable to an end, but also suitable for the appropriate level of leadership leadership assessments from multiple sources improves decision making.".

Development

The axis of development as part of the strategic approach involves generating Mercer leadership development experiences of great impact. "Developing leadership skills helps to improve the level of performance, manage risk of the pipeline, and a positive impact on retention," said the consultant.

Companies in Latin America use a wide range of methods to develop their leaders, such as development opportunities that challenge ; classroom training; individual development plans;learning programs; experiences in horizontal movements; coaching by external trainers; MBA or other graduate programs; international assignments; defined career plans for the development of leaders, among others.

Of these methods, firms consider the most effective are international assignments, development opportunities that challenge and experience in horizontal movements.

Succession

Of the companies with a defined strategy, only 44% are concerned with projecting the future leadership pipeline.

Consequently, only 19% of companies reported having successors ready to take on all the critical positions of leadership. While 32% have successors ready for some critical leadership positions; 37% have but few leadership positions, and 12% have no successors.

In Mercer's approach, the sequence involves managing performance and succession planning. "The impact of investment leadership is closely related to what is rewarded and promoted within the organization," said Urbina.

"Decisions related to succession are essential for the development of the pipeline, but also support the development culture within an organization. Companies that actively manage talent pools, which provide lists of succession to key roles, and automate their processes repeatedly outperform the competition, "said

Finally, the survey also shows that organizations believe that the skills related to strategy and operations, such as creating the strategy; inspire others, promote innovation, promote outcomes, customer focus, are the most critical to develop in the coming years, rather than personal skills.