Wednesday, March 9th, 2011 - The Executive Connection (TEC)
New research, released today for the first time, demonstrates the quantifiable impact that leadership training and development can have on the fortunes of Australian businesses.

The research shows that during the 2008-09 financial year – when the GFC was having its greatest impact – SMEs whose leaders participated in CEO leadership programs, significantly outperformed their national peers in both income and employment growth.

During the 2008-09 financial year, members of The Executive Connection (TEC), averaged an annual revenue growth of 7.6 per cent, compared with a decline of -0.8 per cent for comparable organisations as reported in the Australian Bureau of Statistics*.

“The Global Financial Crisis was the biggest threat to businesses around the world in decades and many organisations experienced falling revenues or had to significantly cut back on staff,” said Chris Gorman, Chief Executive of TEC, Australia’s leading Chief Executive Organisation for more than 1200 business leaders.

“Yet we found that there was an identifiable group of organisations that defied the expectations and actually grew their revenues and staff numbers over the same period. In fact, while the national average of SME employment growth was -3.01 per cent per annum, businesses whose leaders were engaged in peer-group mentoring, managed to buck the trend and actually grow their staff numbers on average by 3.3 per cent per annum.”

Mr Gorman said while there were a number of factors that could have come into play, the one thing that linked them together, was that they were all members of a leadership peer group.

“At times of crisis, trying to lead a business on your own can be extremely difficult and for many it is an impossible task. But sharing challenges with other business leaders, working through problems, building important networks or just having someone to talk to can make the difference for many business leaders.”

Mr Gorman said a by-product of successful companies during a tough financial period was winning awards for business achievement.

“In 2010, TEC member companies received over 90 awards for business excellence around Australia, including representation in the Ernst & Young Entrepreneur of the Year Awards, the Telstra Business Awards, the Australian Business Awards, the BRW 100 Fast Starters, the Standard and Poor’s Fund Awards and the Smart 50 Awards.

“While it’s fantastic to see so many TEC companies winning national awards, the real thrill is seeing them outperform their competitors – that’s the edge that leadership programs provide.”

ENDS

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The Executive Connection (TEC)


TEC is the Australian affiliate of Vistage International, Inc. with more than 14,500 members in 16 countries worldwide. As part of the world’s leading Chief Executive Organisation, TEC has been increasing the effectiveness of CEOs in Australia since 1986. The core TEC program has three key components: a monthly peer group session where members from different industries share information and successful strategies about challenging issues, a monthly presentation by a highly trained expert in a relevant area, and a monthly one-to-one coaching session with an experienced ex-CEO who leads the group.
Julia Loughlin
P: (08) 8114 6166
W: www.ppr.com.au

The TEC Member Performance Survey


National business performance data for SMEs were extracted from the Australian Bureau of Statistics Publication Australian Industry (ABS 8155.0) for the latest available years – 2008 and 2009 – and growth rates of total income and total employment were calculated. Total income and employment information for the same years were collected from TEC SME members, and for these members the average growth rates between these year ends were calculated. The TEC data were then compared with their national industry peer group and the resulting comparison showed a significant outperformance per annum by TEC members for both income growth and employment growth.

* PricewaterhouseCoopers has performed certain procedures, as agreed with TEC ("Agreed Upon Procedures"), in relation to the data analysis included in the report. TEC designed these procedures to ensure the integrity of the data.

Keywords

leadership, The Executive Connection, peer support, senior managers, GFC, growth, employment, mentoring programs, CEO

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