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Global Innovations  

                                                  October  23,  2012    

Measuring Leadership  

PowerRank Leadership  Rankings  –  October  23,  2012     Do  you  know  where  you  rank  and  why  it  matters?  

www.global–innovation.com


Global Innovations  

     Measuring  Leadership  

ASK YOURSELF?     • What  is  leadership?   • How  is  leadership  measured?   • What  tools  are  available  to  measure  leadership?   • How  do  you  compare  with  competitors?   • Are  your  leaders  viewed  as  a  strength  or  weakness?        

1. WHAT IS  LEADERSHIP?    

Leadership is  a  complex  process  of  social  influence  in  which  one  person  can  enlist  the  aid   and  support  of  others  in  the  accomplishment  of  a  common  task.     “Leadership:  The  art  of  getting  someone  else  to  do  something  you  want   done  because  he  wants  to  do  it.”       Dwight  D.  Eisenhower     “No  man  is  good  enough  to  govern  another  man  without  that  other's   consent.”       Abraham  Lincoln     “A  leader  is  a  dealer  in  hope.”   Napoleon  Bonaparte     "In  God  we  trust;  all  others  must  bring  data."   W.  Edwards  Deming    

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Global Innovations  

     Measuring  Leadership  

2. HOW IS  LEADERSHIP  MEASURED?    

Leadership is  complex  process  of  social  influence  to  accomplish  a  common  task.       Measuring  leadership  requires  tracking  and  monitoring  various  “hard”  (quantitative)  and   “soft”  (qualitative)  factors.    The  mix  of  these  factors  depends  on  the  individual  business,   industry,  geography,  and  position.  

   

3. WHAT TOOLS  ARE  AVAILABLE  TO  MEASURE  LEADERSHIP?     PowerRank  is  an  analytical  tool  designed  to  identify  and  evaluate  business  leaders  based  on   their  economic,  leadership,  education,  and  network  influence.          

Economics:  What  assets  and  resources  do  you  influence?  

Leadership:  What  management  and  leadership  roles  have  you  held?  

Academics:  What  are  your  academic  achievements?  

Network:  How  broad  is  your  business  network?  

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October 23,  2012  

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Global Innovations  

     Measuring  Leadership  

PowerRank is  a  proprietary  model  and  algorithms  that  take  into  consideration  thousands  of   measurements  of  business,  leadership,  academic  and  network  influence.    PowerRank   assigns  a  numerical  weighting  to  each  executive  according  to  his  or  her  relative  influence   and  importance  in  the  measurement  group.        

PowerRank is  broad,  deep,  verified  information,  with  time  trending,  all  import  component   of  evaluation  the  influence  and  relevance  of  a  leader  and  their  organization.   •

Data Source:    Public  company  information  and  information  provide  by   companies  and  leaders  about  themselves  

Comparisons:  All  companies  in  the  major  market  indexes,  including  the   S&P  500  

Coverage:  Over  800,000  leaders  from  over  100,000+  companies  serving   150+  industries  in  100+  countries  

Trending Period:    Three  years  of  historical  information  by  quarter  

     

PowerRank is  a  number  ranging  from  zero  to  100  (highest).    It  represents  where  an   individual,  company  or  organization  ranks  within  a  group.      

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October 23,  2012  

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Global Innovations  

     Measuring  Leadership  

 

4. HOW DO  DOES  YOUR  LEADERHIP  COMPARE  WITH  COMPETITION?    

Companies, executives  and  investors  compare  many  different  measures  to  history,  plan   (budget,  forecasts  and  projections)  and  against  external  benchmarks  like  industry  averages   and  competition.    Common  measurements  include:        

Market Share  and  Ratings  (e.g.,    Nielsen  Ratings)  

Revenue, Profitability  and  Assets  (e.g.,  Moody’s  Rating)  

Productivity, Quality  and  Speed  (e.g.,    ISO  9000)  

Innovation and  Awards  (e.g.,  Forbes  Most  Innovative  Companies)  

Competition, leadership  and  measurements  are  well  documented.    Relatively  little   information  is  available  on  competitive  leadership  measurements.    Following  are  the   number  of  results  from  a  resent  Google  key  word  search:          

1. Competitive                                                                                                                              659  million  (100%)   2. Leadership                                                                                                                                    588  million        (89%)   3. Measurement                                                                                                                          354  million      (53%)   4. Competitive  Leadership  Measurement                                    13  million          (  2%)  

 

PowerRank is  an  independent,  quantitative  measurement  of  leadership.    It  can  be  used  to   compare  one  company  with  another  and  one  leadership  group  with  another.        

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Global Innovations  

     Measuring  Leadership  

 

5. ARE YOUR  LEADERS  VIEWED  AS  A  STRENGHT  OR  WEAKNESS  BY  THE  FINANCIAL   MARKETS?   •

High PowerRank  scores  are  indicative  of  good  business  performance.    Lower  scores   indicate  that  the  management  and  leadership  teams  have  less  leadership  experience   than  their  peers.  

• •

We analyze  the  stock  market  performance  over  the  last  five  and  ten  year  for   companies  with  an  average  PowerRank  score  above  90  (the  top  Decile  performers)   and  for  those  with  an  average  PowerRank  score  below  50  (the  lowest  half).   The  analysis  shows  that  the  better  managed  companies  significantly  outperform  the   market  indexes  over  a  ten  year  period.    It  also  shows  that  weak  companies   underperformed  the  market  indexes  by  a  significant  amount  during  the  previous  five   years  of  financial  turmoil.  

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October  23,  2012  

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Global Innovations  

     Measuring  Leadership  

  Below  is  an  index  of  the  companies  led  by  the  top  500  Power  Ranked  executives  as  of  October  23,  2012.     A  list  of  the  top  20  Power  Ranked  executives  is  on  the  next  page.   The  PowerRank  500  outperformed  the  S&P  500  by  over  400%  over  the  past  10  years.    

PowerRank 500  Led  Companies  Outperform  the  S&P  500  over  10  years   600.00%

PowerRank 500   Company  Index  

500.00% 400.00% 300.00% 200.00% 100.00%

+400% S&P  500  Company   Index  

0.00% -100.00%

Data  Source:    Stand  &  Poor’s.    PowerRank  500  index  calculated  based  on  equal  weighting  of  component   companies.  

• •

PowerRank 500  =  The  500  companies  that  the  top  ranked  business  leaders  manage.   S&P  500  =  The  Standard  and  Poor’s  index  of  500  companies  

Better leadership  results  in  better  performance.   Leadership  can  be  measured  through  PowerRank.     Contact  George  Bickerstaff  for  more  information  (George@global-­‐innovation.com)       Page   |  7   www.global-­‐innovation.com    

October  23,  2012  

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Global Innovations  

     Measuring  Leadership  

Comparison  stock  market  index  charts  of  PowerRank  500  companies  versus  S&P  500  companies  over   different  periods  ended  October  23,  2012  are  shown  below.            

Companies managed  by  executives  and  b oards  with  high   PowerRank  scores  outperform  market  averages,  particularly   in  periods  of  economic  crisis.        

    One  Month  Comparison

One  Year  Comparison  

PowerRank  of  -­‐1.2%    vs.  S&P  of    -­‐3.0%   PowerRank  Outperformed  the  S&P  by  1.8   percentage  points  

  PowerRank  of  11.7%    vs.  S&P  of    12.7%   S&P  Outperformed  PowerRank  by  1.0  percentage   points     Five  Year  Comparison  

Three  Year  Comparison    

PowerRank  of  37.5%    vs.  S&P  of    32.4%   PowerRank  Outperformed  the  S&P  by  5.1   percentage  points    

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  PowerRank  of  17.3%    vs.  S&P  of    -­‐6.7%   PowerRank  Outperformed  the  S&P  by  24.0   percentage  points  

October 23,  2012  

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Global Innovations  

     Measuring  Leadership  

The  top  500  PowerRank  executives  include  216  (43%)  executives  who  lead  S&P  500  companies  which   are  mostly  located  in  North  America  and  Europe.    The  PowerRank  500  executives  are  more  global  and   with  a  more  balanced  sector  mix  then  the  S&P  500  company  leaders.            

Leadership and  geographic  coverage  and  experiences  are  key   attributes  factored  into  calculating  a  PowerRank  score.    This   diversification  has  helped  in  business  performance.  

 

    PowerRank  500  Market  Capitalization  by  Region  

Average  Company  Market  Capitalization  of    $2.48  billion           S&P  500  Market  Capitalization  by  Region  

  Average  Company  Market  Capitalization  of    $4.48  billion  

PowerRank  500  Market  Capitalization  by  Sector    

Average  Company  Market  Capitalization  of    $1.27  billion       S&P  500  Market  Capitalization  by  Sector  

  Average  Company  Market  Capitalization  of     $1.34  billion    

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October 23,  2012  

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Global Innovations  

     Measuring  Leadership  

The  Top  20  Power  Ranked  leaders  as  of  October  23,  2012.    These  leaders  are  included  in  the   PowerRank  500  index  chart  on  the  prior  page.  

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October  23,  2012  

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Global Innovations  

     Measuring  Leadership  

About  Global  Innovations      

Global Innovations   • Super  incubator   • Blend  ideas,  money  and  people   • Employ  teams,  technology  and   networks   • Diverse  and  experienced   leadership

Unique Model   • Build  great  new  businesses   • Drive  Innovations  that  matter   • Create  new  leadership  roles   • Employ  best  technologies   • Leverage  social  media

 

 

Contact Information    

George Bickerstaff   Founder  and  Executive  Chairman     george@global-­‐innovation.com   (c)  +1.203.570.0478  

Rana Arefieg   Founder  and  President     rana@global-­‐innovation.com   (c)  +1.914.588.1213  

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October 23,  2012  

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Measuring Leadership | PowerRank  

PowerRank Leadership Rankings - October 23, 2012

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