PowerRank Measuring Importance and Relevance
Published: May 23, 2012 For more information contact: powerrank@tgleaders.com
PowerRank Measuring Importance and Relevance May 23, 2012
With the rapid rise in popularity of social networking sites like Facebook and LinkedIn, more and more people have begun leveraging these channels for business. Social media can help find new customers, suppliers, partners, investors, and employees. As social networks have continued to grow, so has interest in influence. As a result, a number of influence scoring sites, like Klout, have emerged in the online market. While these tools have many useful applications, their metrics and scores provide little value beyond social. There are very few tools currently available that measure offline influence, specifically in business. PowerRank is a new analytics tool designed to identify and evaluate key leaders in business based on their economic, education and network influence. What is PowerRank? PowerRank was developed with the idea that members of a group, like a group of business executives, can be arranged into a hierarchy defined by influence. PowerRank assigns a numerical weighting to each executive according to his or her relative economic, academic and network importance:
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Economic Importance: The amount of resources and people you influence
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Academic Importance: Your level of academic achievement
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Network Importance: The breadth of your network relationships
The PowerRank model and algorithms takes into consideration measures of revenue and profitability, market capitalization and assets, employees and position levels, degrees and teaching experiences, board and non-profit leadership roles, company affiliations, and places worked and lived. These factors are scored and index weighted against the relevant group population to assign a ranked number to each person, company or organization in the search group. A recent PowerRank search for the world’s most powerful business leaders resulted in a rank order list of over 90,000 executives. At the top and ranked number one and two are Jeff Immelt, Chairman and CEO of General Electric, and Warren Buffett, respectively. The top 10 most powerful business executives in the world, New York, in healthcare and from Harvard are shown as an example on attached Exhibit A. PowerRank is a fact based, quantitative measure of individual and group importance based on independently verified measures of economic, academic and network influence.
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How Can PowerRank be used? PowerRank is a way to identify and rank business executives and leaders who can be important and relevant to you or your company for business and professional development. It ranks executives based on their relevant economic, academic and network experiences. It can be used to find the right people to buy a product, lead a business, invest in your company, or join your organization. PowerRank can also be used as a professional development tool. By knowing your PowerRank score and that of the leaders in your field, you can understand what actions you need to take and development experience you need to have to progress within the industry or through an organization. Companies can use PowerRank to assess their collective PowerRank score compared with their customers and competitors. If for example your executives have an average PowerRank score of 10 and your biggest competitor has an average rank score of five (where the top score is one), you may have people development and skill issues that need to be addressed. PowerRank gives you a way to quickly find the right people and resources to help solve your business problems, and it gives you a way to tangibly compare yourself against competition and performance targets.
The Problem - An Example Your company has just launched a revolutionary new software program that can significantly improve a customer’s speed and productivity, giving them a competitive advantage. The new software product is so impactful and game changing that it needs to be sold into the highest levels of an organization. You are looking to build a target list of Chief Executive Officers (CEOs) from multiple industries and geographies with more than a billion dollars per year in revenue and employing more than a thousand people. You would also like to meet CEOs from other software companies who might want to partner with you. Microsoft is particularly interesting as a possible partner. You start by doing a Google search for “Chief Executive Officer”. Your hope is to get a good list of possible targets to pursue. Your Google search returns 70+ million results, which is many more than you can practically review. You decide to narrow down your search to “Software CEO”. This Google search results in 13+ million possible targets. Frustrated with the Google search you move on to LinkedIn. The LinkedIn search for current CEOs returns a list of 1.1 million people, many of whom don’t appear to be CEOs based on their resumes. You narrow down the LinkedIn search to only Fortune 50 companies and get back a list of 3,400 people who claim to be the current CEO of a Fortune 50 company, which doesn’t make sense. You then narrow down your LinkedIn search to find the names and background of the current CEO and Chairman of Microsoft (Steve Ballmer and Bill Gates, respectively). LinkedIn returns a list of 465 people who claim to be the CEO of Microsoft and 82 people who claim to be the current Chairman of Microsoft. Bill Gates and Steve Ballmer are not on this list. You have learned firsthand that web and social media searches are not very helpful because of voluminous data and inaccurate and irrelevant results with no ranking mechanism. You also realize that people searching for you and your company probably have the same problem. PowerRank
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You cannot find the right people and you cannot be found by the right people. The Answer - PowerRank Example You hear about a new system and measurement tool called PowerRank and you repeat the same searches. Through this search your list of CEOs is narrowed down from millions to less than 100,000. PowerRank identifies and rank orders the list based on the executives’ relevant economic, academic and network influence. The most relevant person shows up at the top of the list. You take a look at the PowerRank list and see that Jeff Immelt, the Chairman and CEO of General Electric, and Warren Buffett is at the top of the list, which makes sense to you (see Exhibit A). You then narrow the search down to find the most powerful people located in New York, from the healthcare industry and who went to Harvard. These lists also seem to make sense to you and they seem to be in the right rank order. You now have a short, actionable list of people you can reach out to about your company and new software product. You can refine the search by company, title, industry, geography, university, and many other elements to find the right people who are important and relevant to what you need. The PowerRank score shows where these executives fit into the hierarchy. You can also see where you, your employees, managers, customers, suppliers, and partners rank as a helpful tool to assess experiences and opportunities.
Other Examples
1. You’re looking to hire a new Chief Financial Officer. You have two possible candidates. Their PowerRank score can help you assess their relative experiences.
2. You’re considering joining two different companies. You can use the relative PowerRank score for the companies to see which one develops the best leaders.
3. You are thinking about investing in a company and are unsure about the experience base of the management team. The PowerRank score compared to competition can help in the evaluation process.
4. You are considering joining an organization or group, but are unsure if you fit in. PowerRank scores can help in the assessment.
5. You are merging your company with another company and are going through the leadership evaluation process. PowerRank scores can help you identify the right group of people to lead the merged company.
6. You are doing a strategic assessment of a business. PowerRank comparisons with competitors can help evaluate the opportunities and risks. PowerRank
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7. You are re-designing your compensation system and slotting managers into the new salary grids. PowerRank scores can help to differentiate levels.
8. You are considering spending advertising and marketing funds on a group of social media leaders. You know their Klout score, but don’t know how impactful they are from a business perspective. Blending the social media Klout score and the PowerRank scores can help to target your advertising budget.
9. You are a magazine or website trying to sell sponsorships. You are the smaller magazine competing against much larger magazines with a broader distribution. You can compare the PowerRank of your reader base with the PowerRank of your competitors’ readers to demonstrate that your readers are more important and relevant to a particular advertiser.
10. You are an executive search group competing with on-line search engines. You need a better tool to find candidates for jobs more effectively. PowerRank scores can help you identify and evaluate the best candidate more quickly and give you a competitive edge.
11. You are a hedge fund manager and want to find out what companies are picking up and losing the most talent in making your investment decisions. The PowerRank score can help show trends in senior level talent changes.
12. You run a market research department and want to conduct interviews of relevant leaders. PowerRank searches and scores can help to achieve the right experience and influence mix of interview candidates, which you can also market.
Other Information
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Some relevant statistics are shown on attached Exhibit B.
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Comparison to the Forbes 500 is on Exhibit C.
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A summary of the CEO LinkedIn search is on Exhibit D.
How can I get Access to PowerRank? PowerRank is available through The Global Leaders at www.tgleaders.com.
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Exhibit A - 1 The World’s Most Powerful Executives Below is a rank order list of the World’s 10 Most Powerful Executives as measured at May 15, 2012.
World PowerRank
Name
Company
Title
Age
1
Immelt, Jeffrey R.
General Electric Company
Executive Chairman
55
2
Buffett, Warren E.
Berkshire Hathaway Inc.
Chairman and Chief Executive Officer
81
3
Roberts, Brian L.
Comcast Corporation
Chairman
51
4
Brabeck-Letmathe, Peter
Nestlé S.A.
Chairman
67
5
Alierta Izuel, Cesareo
Telefonica, S.A.
Executive Chairman
66
6
Palmisano, Samuel J.
International Business Machines Corporation
Chairman of the Board and Chairman of Executive Committee
60
7
Walton, S. Robson
Wal-Mart Stores Inc.
Chairman
66
8
Stephenson, Randall.
AT&T, Inc.
Chairman
50
9
Guohua, Xi
China Mobile Limited
Chairman
59
10
McDonald, Robert A.
Procter & Gamble Co.
Chairman
58
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Exhibit A - 2 The World’s Most Powerful Executives Headquartered in New York
Below is a rank order list of the World’s 10 Most Powerful Executives who are headquartered in New York City.
New York PowerRank
World PowerRank
Name
Company
1
91
Camilleri, Louis C.
Philip Morris International, Inc. / Executive Chairman and Chief Executive Officer
120 Park Avenue | New York, New York | 10017 | United States
2
121
Murdoch, Keith Rupert
News Corp. / Chairman and Chief Executive officer
1211 Avenue of the Americas | New York, New York | 10036 | United States
3
138
Bewkes, Jeffrey L.
Time Warner Inc. / Chairman and Chief Executive Officer
One Time Warner Center | New York, New York | 10019-8016 | United States
4
157
Cornelius, James M.
Bristol-Myers Squibb Company / Non-Executive Chairman
345 Park Avenue | New York, New York | 10154 | United States
5
165
Logan, Don
Time Warner Cable Inc. / Director
60 Columbus Circle | New York, New York | 10023 | United States
6
168
Britt, Glenn A.
Time Warner Cable Inc. / Chairman and Chief Executive officer
60 Columbus Circle | New York, New York | 10023 | United States
7
170
Dimon, James
JPMorgan Chase & Co. / Chairman
270 Park Avenue | New York, New York | 10017 | United States
8
186
O'Neill, Michael E.
Citigroup, Inc. / Chairman of The Board
399 Park Avenue | New York, New York | 10043 | United States
9
188
Weill, Sanford I.
Citigroup, Inc. / Chairman Emeritus and Senior Advisor
399 Park Avenue | New York, New York | 10043 | United States
10
195
Fishman, Jay S.
The Travelers Companies, Inc. / Chairman
485 Lexington Avenue | New York, New York | 10017 | United States
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Business Address
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Exhibit A - 3 The World’s Most Powerful Executives Healthcare Industry
Below is a rank order list of the World’s 10 Most Powerful Executives who are in the Healthcare Industry.
HealthCare PowerRank
World PowerRank
Name
Company / Title / Country
1
11
Vasella, Daniel L.
Novartis AG / Chairman and Member of Chairman's Committee / Switzerland
$59,066
2
34
Lorch, George A.
Pfizer Inc. / Lead Independent Director / United States
$66,328
3
40
Weldon, William C.
Johnson & Johnson / Chairman of the Board and Chairman of Finance Committee / United States
$64,996
4
47
Read, Ian C.
Pfizer Inc. / Chairman / United States
$66,328
5
51
Weinberg, Serge
Sanofi / Non-Executive Chairman / France
$47,728
6
63
Burke, Richard T.
Unitedhealth Group, Inc. / Founder / United States
$103,712
7
64
Frazier, Kenneth C.
Merck & Co. Inc. / Chairman / United States
$48,198
8
66
Dehecq, JeanFrancois
Sanofi / Honorary Chairman and President of The Sanofi Espoir Foundation / France
$47,728
9
71
White, Miles D.
Abbott Laboratories / Chairman / United States
$39,267
10
73
Humer, Franz B.
Roche Holding AG / Chairman and Chairman of Presidium/Nomination Committee / Switzerland
$47,195
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Revenue ($mm)
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Exhibit A - 4 The World’s Most Powerful Executives Attended Harvard University Below is a rank order list of the World’s 10 Most Powerful Executives who attended Harvard University Healthcare Industry
Harvard PowerRank
World PowerRank
Name
Company / Title
1
1
Immelt, Jeffrey R.
General Electric Company / Executive Chairman
55
2
11
Vasella, Daniel L.
Novartis AG / Chairman and Member of Chairman's Committee
57
3
26
McNerney, W. James
The Boeing Company / Executive Chairman
62
4
49
Miller, Robert S.
American International Group, Inc. / Director
69
5
56
Kandarian, Steven A.
MetLife, Inc. / Chairman of The Board
59
6
64
Frazier, Kenneth C.
Merck & Co. Inc. / Chairman
56
7
65
Blake, Francis S.
The Home Depot, Inc. / Executive Chairman and Chief Executive Officer
61
8
119
McNally, Alan G.
Walgreen Co. / Chairman
66
9
155
Lechleiter, John C.
Eli Lilly & Co. / Chairman
57
10
166
Fanning, Thomas A.
Southern Company / Chairman of the Board
53
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Age
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Exhibit B The World’s Most Powerful Executives Interesting Questions and Insights for the Top 10,000
Finding the right people to help you get what you need done is important. We analyzed the background of the top 10,000 leaders in the world. Below are some statistics and answers to questions:
Measurement
Total of 10,000
Average per Executive
Comment
Market Capitalization
$46.5 Trillion
$5.2 Billion
85% of World’s market
Revenue
$50.1 Trillion
$5.1 Billion
70% of World’s GDP
Assets
$229.7 Trillion
$23.3 Billion
Employees
106 Million
13,100
Companies
8,812 Companies
Countries
104 Countries
Industries
154 Industries
94 Executives / Country
Question: Answer:
What business sectors have the most number of top executives? Financials (21%), Industrials (16%), Consumer Discretionary (14%), Information Tech (11%)
Question: Answer:
Of the 104 countries represented, which have the most number of executives represented? The USA (36%), the UK (6%), Japan (5%), China (5%), and Canada (5%)
Question: Answer:
What are the most popular cities? Tokyo (296), London (276), New York (188), Houston (170), Calgary (121)
Question: Answer:
What is the average age of these leaders? The average age is 60 (55 for women on the list). 508 (5%) are under 46 years old
Question: Answer:
Of the top 10,000 leaders, how many are women? Fewer than 500 (5%) are women.
Question: Answer:
What are the most common first names on the list? John (318), Robert (257), David (216), Michael (211), James (199), Mary (5)
Question: Answer:
How many doctors are on the list? There are 612 doctors (6%) and 21 professors in the list of 10,000
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Exhibit C Comparing the Fortune 500, PowerRank, LinkedIn and Twitter
Of the top 20 Fortune 500 Chief Executive Officers, only three are on LinkedIn and Twitter.
Fortune 500 Rank
World PowerRank
Name
1
39
Tillerson, Rex W.
2
7
3
Company
On LinkedIn?
On Twitter?
Exxon Mobil
No
No
Duke, Michael T.
Wal-Mart Stores
No
No
35
Watson, John S.
Chevron
No
No
4
77
Lance, Ryan M.
ConocoPhillips
No
No
5
21
Akerson, Daniel F.
General Motors
No
No
6
1
Immelt, Jeffrey R.
General Electric
No
No
7
2
Buffett, Warren E.
Berkshire Hathaway
Maybe *
Yes
8
2,079
Williams, Michael J.
Fannie Mae
Yes
No
9
33
Mulally, Alan R.
Ford Motor
No
No
10
16
Whitman, Margaret C.
Hewlett-Packard
Yes
Yes
11
8
Stephenson, Randall L.
AT&T
No
No
12
263
Klesse, William R.
Valero Energy
No
No
13
451
Moynihan, Brian T.
Bank of America Corp.
No
No
14
210
Hammergren, John H.
McKesson
No
No
15
38
McAdam, Lowell C.
Verizon Communications
No
No
16
170
Dimon, James
J.P. Morgan Chase & Co.
No
No
17
17
Cook, Timothy D.
Apple
No
Yes
18
50
Merlo, Larry J.
CVS Caremark
No
No
19
6
Rometty, Virginia M.
International Business Machines
No
No
20
186
Pandit, Vikram S.
Citigroup
No
No
* Multiple people with the same name and picture, indicating that person may not be real.
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Exhibit D Quality and Relevance Issues in Social Media Searches Trying to Find Influential and Relevant CEOs and Chairmen on LinkedIn A recent search of LinkedIn for current Chief Executive Officers (CEOs) and current Chairmen resulted in over a million hits, including over 3,000 people who came up a the possible CEOs of the 50 largest companies in the world and 82 people who came us the possible Chairman of Microsoft. How can there be more than 50 CEOs of the 50 largest companies, and how can there be more than one (Bill Gates) Chairman of Microsoft?
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For more information about PowerRank or to subscribe to PowerRank reports, contact The Global Leaders at powerrank@tgleaders.com.
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