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AMA Research

AMA 2004 IMPORTANCE OF LEADERSHIP SURVEY


April 2004
The increasingly competitive business environment is overwhelmingly cited as the top reason leadership is more important than ever in a survey conducted among 225 AMA customers and members, on Friday, April 3 rd in all five AMA U.S. Executive Conference Centers. More decentralized decision making and a workforce with different generations and values were identified as the second and third most important reasons. Other current business trends, including globalization and more complex organizations, were also cited as important contributing factors in the current focus on leadership. In addition, the survey indicated that employees at all levels are devoting more time to leading. By nearly a 4 to 1 margin, respondents are spending more time, rather than less, leading than in the past.

Reasons Why Leadership Is More Important Than Ever


(Respondents chose top three)

Reason Increasingly Competitive Business Environment Flatter organizations with more decentralized decision making Workforce composed of different generations with different values Increasingly complex organizations Globalization Pressure to meet quarterly performance targets Uncertain times The shift from a manufacturing to a knowledge-based economy Increased government regulation of business activity Increased media scrutiny of executive behavior Other

% Selecting As One of Top Three 69% 34% 33% 30% 30% 25% 23% 16% 10% 10% 4%

www.amanet.org/research

Most Employees Spend Time Leading and Are Leading More


Time Spent Leading 19% of respondents say that more than 50% of their time is dedicated to leading and nearly half believe leadership activities account for at least 25% of their work day. % of Time Devoted to Leading More than 50% 26% 50% 11% - 25% 0% - 10% 19% 30% 34% 17% Cumulative Total 19% 49% 83% 100%

Using a conservative weighted average calculation (midpoint of three bottom groups and 50% for top group) respondents spend 28% of their day in leadership activities. Change in Time Spent Leading Nearly two -thirds of respondents (64%) said they are spending more time leading than in the past. Only 17% are spending less time. Overall, 83% are spending the same or more time leading now than in the past. % of Time Spent Leading vs. Past Greater Same Less 64% 19% 17% Cumulative Total 64% 83% 100%

Leaders Can Be Made


87% of respondents believe leaders can be made -- meaning that training, experience, coaching, mentoring, and circumstances can improve a managers capacity to lead. Leaders Are: Made Both Made and Born Born 18% 69% 13%

This study, and other AMA surveys on leadership, management and business topics, can be found at www.amanet.org/research.
Copyright 2004, American Management Association, New York, NY 10019

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