The executives leading Americaâs businesses are not very confident in the managers that report to them, a new report shows.
Fifty-two percent of top company executives say their direct reports lack the leadership know-how to make it to their level, according to a new survey by Deloitte Consulting. One rung down the corporate ladder, the view of the management pipeline is even bleaker: 59 percent of the managers in line for the top corporate posts (Deloitte labels this group CXOWs, short for C-suite executives-in-waiting) concede that their subordinates donât have the leadership chops to move up.
Many managers donât even want a promotion, at least according to their bosses. Almost half of the C-suite executives (44 percent) surveyed say a âlack of personal ambition and motivationâ is holding back their direct reports. Meanwhile, 50 percent of the CXOWs say âlittle or no access to leadership trainingâ is the biggest obstacle stifling their careers.
The Deloitte report offers a dismal view of the management bench available to run U.S. companies. âWeâre all in the talent business,â says Jim Moffatt, chairman and CEO of Deloitte Consulting. âHow you cultivate that talent will decide if you succeed, but I donât see companies being very thoughtful about that.â
U.S. companies need succession plans, Moffatt says, that rotate managers at all levels into new, more challenging jobs to expand their experience. Business school programs, like an MBA or EMBA, are ânot enoughâ to develop the next generation of leaders, he says.
Moffatt has a message for employers hiring B-school grads: âIf youâre trading a higher GMAT score for someone with leadership experience, youâre making the wrong trade.â
Thereâs also a message for future business leaders: Donât expect much help from your employer. Just under half (49 percent) of those eager to move into the C-suite say they get the training they need to advance their careers. That makes sense, given that only 49 percent of C-suite execs care about developing the leadership skills of their people.