Finding and Developing Emerging LeadersGrow Your Own

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Today’s Presenters:

AGENDA

Leadership matters

Frontline leaders are a top priority

Developing leaders: what the research shows

WHAT Know what you need

WHO Know who you have

HOW Grow them into leaders

The Leader of Tomorrow

WHAT ARE SOME OF YOUR OBJECTIVES

IN ATTENDING THIS SESSION?

Interactive

WHAT ARE SOME OF THE KEY DRIVERS OF

BUSINESS SUCCESS IN YOUR ORGANIZATION?

Leadership Quality Impacts…

Why are frontline leaders

so important?

Engagement9%

50%

Low Leadership Quality

High Leadership Quality

BETTER LEADERS = BETTER ENGAGEMENT

Retention 24%

70%

Low Leadership Quality

High Leadership Quality

BETTER LEADERS = BETTER RETENTION

The bottom line52%

13%

Financial performance 2.8x

Customer satisfaction 4.6x

Productivity 4.7x

Quality of services 4.4x

Low Leadership Quality

High Leadership Quality

BETTER LEADERS=BETTER RESULTS

Confidenceof Future Business Success

4%

66%

Low Leadership Quality

High Leadership Quality

BETTER LEADERS=MORE CONFIDENCE IN THE FUTURE

Leadership Gaps

Companies say they are finding they don't have

the managers to spearhead new projects or step in

for departing executives, a problem as companies

try to shift into growth mode.

― Leadership Training Gains Urgency Amid

Stronger Economy, The Wall Street Journal

BUT COMPANIES ARE NOT FINDING THE

MANAGERS TO EXECUTE THESE NEW STRATEGIES

Succession 18%Rate Bench Strength Strong

IN FACT, VERY FEW HAVE SUFFICIENT BENCH

STRENGTH TO ENSURE FUTURE SUCCESS

The Numbers are Against Us

65+

› Part-time

› Consulting

55-64

› Experienced leaders

› Leadership prime

› Prepping next gen

35-54

› Experience building

› -2% growth… ouch!

› Pool is way too small25-34 35-44 45-54 55-64 65-74

age of workers

http://hbr.org/2004/03/its-time-to-retire-retirement/ar/1

74+

15%

8%

-10%

52%

30%

21%

And We Can’t Tap Emerging Markets

https://www.mckinseyquarterly.com/Sizing_the_emerging_global_labor_market_1635

Countries in survey:

› BRIC countries

› Eastern Europe

› Asia Pac

› Poland

› Mexico

Of 100 college grads…

› On average 13 hire-able

› Lack of skills, culture fit

› Location to major cities

› Domestic competition

ONLY 13 OF 100 ARE HIRE-ABLE, FAR FEWER ARE LEADERS

IF WE CAN’T FILL TODAY’S FRONTLINE LEADERS

WHO ARE GOING TO BE OUR FUTURE EXECS?

HOW DO WE ACCELERATE DEVELOPMENT

OF FRONTLINE LEADERS TO CLOSE GAPS ?

Leadership Development

The Critical Human Capital Issues of 2011, Institute for Corporate Productivity (i4cp)

5th European HR Barometer, Hewitt Associates study for European Club for human resources (EChr)

Working Beyond Borders, IBM, 2010 Talent Edge 2020: Blueprints for the new normal, Deloitte, December 2010

#1 ISSUE IN 2010 & 2011 IN THE IC4P STUDY

ISSUE FROM 2010-2012 IN HEWITT

ASSOCIATES STUDY OF EUROPEAN EXECUTIVES

ISSUE IN 2010 & 2011 CHRO STUDIES BY IBM

Focus is on Leadership Development & Retention

Deloitte survey:

› 71% of executives expect to increase the focus on developing high-

potential employees and emerging leaders

› 64% of survey participants plan to increase their focus on accelerated

leadership programs

› 64% have a high or very high fear of losing high-potential talent and

leadership

› 81% of companies with retention plans are increasing their focus on

emerging leaders

Source: Talent Edge 2020: Blueprints for the new normal, Deloitte, December 2010

THERE IS CLEAR BUSINESS RECOGNITION OF THE

NEED FOR FRONTLINE LEADERS

DO YOU FEEL THAT WE ARE DOING A GOOD JOB

OF PREPARING EMERGING LEADERS?

Leadership Development Effectiveness 34%

2011 29%2009

33%2006

HR

Three Steps to Leadership Development

WHAT

WHO

HOW

Interactive: What are the top predictors of leadership success?

› Competencies

› Previous experience and knowledge

› Personal attributes

› Alignment with organizational goals / direction

› Alignment with organizational culture

› Similarity to existing successful leaders

SAMPLE SUCCESS PROFILE: Frontline Sales Manager

What people KNOW

› Core Product

Knowledge

› Knows strategic

selling principles

What people HAVE DONE

› Led a team of sales

associates

› Held Budget

Responsibility

What people CAN DO

› Customer Focus

› Raising the Bar

Who people ARE

› Enjoys being

responsible for

achieving difficult

sales targets

› Continuous Learning

Managing Relationships Competency and Key Actions

Managing Relationships. Understanding and meeting the personal needs of

individuals in order to build trust, encourage two-way communication, and

strengthen relationships.

› LISTENS AND RESPONDS WITH EMPATHY—Acknowledges others’ feelings and

circumstances when they express emotion verbally or nonverbally.

› MAINTAINS OR ENHANCES SELF-ESTEEM—Shows others that they

are valued by acknowledging their contributions, successes, and skills.

› ASKS FOR HELP AND ENCOURAGES INVOLVEMENT—Leverages others skills and

gains their support by asking for their ideas and opinions.

Connecting to Organizational Goals and Objectives

› What strategies are driving the business?

› Is the organization expanding into new markets requiring managers to have

global acumen?

› Is it trying to instill a service culture or a heightened customer focus?

› Is the company in an established industry or a fast-growing one?

› Is the company moving toward increasing numbers of virtual teams and

workers, or is there an increasing focus on talent density in a geographic

area?

R&D strategies in emerging economies: McKinsey Global Survey results, McKinsey Quarterly, April 2011

Three Steps to Leadership Development

WHAT

WHO

HOW

Hiring Failures:

1 in 3vs

1 in 472%

63%

28%

37%

External

Internal

Success Failure

HR

WHAT’S THE BUSINESS IMPACT OF 9% IMPROVEMENT

IN LEADERSHIP HIRING?

Internal Hires are Better Hires

Internally promoted leaders have 50% faster time to productivity

Internal leaders are respected more than external leaders

Higher percent of external hires in middle management results in higher

turnover and higher absenteeism

―Rock star‖ hires rarely have the impact you expect

› Star Wall St. analysts who change firms almost inevitably crash and burn

› As much as 90 percent of the information employees take action on comes

from people in their network

› Often rock star success is situational, highly dependent on

network, culture, and reputation within a particular organization

Grow Your Own CEO, Taleo Research

IBM Enterprise Business Services Study

Rob Cross -- http://www.robcross.org/pdf/roundtable/high_performer_networks_and_traps.pdf

SOCIOECONOMIC PRESSURES ARE ―FORCING‖

ADOPTION OF BEST PRACTICES

Finding the First Rung, DDI

Too Many Leaders External…Very Few Developed From Within

62%

Source: DDI’s Finding the First Rung

I felt ―prepared‖

42%

The transitionwas ―easy‖

© Development Dimensions Int’l, Inc., MMXI. All rights reserved.30

Top 10 Situations New Managers Aren’t Ready For

Reprimanding an underperformer

Firing someone

Going from co-worker to boss

Learning the ropes

Dealing with senior management

Handling customer complaints

HR issues such as sexual harassment

Coaching or managing others

Resolving conflicts

Layoffs

Source: DDI’s Finding the First Rung

© Development Dimensions Int’l, Inc., MMXI. All rights reserved.31

Talent Audits: Critical Data in Talent Intelligence

Managing

Relationships

3

Guiding

Interactions

4

Coaching for

Success

4

Coaching for

Improvement

2

Influencing

5

Scenario #1

Chen needs to lead an experienced, high-

performing team.

Is he a good fit?

Managing

Relationships

3

Guiding

Interactions

4

Coaching for

Success

4

Coaching for

Improvement

2

Influencing

5

Scenario #2

Chen needs to lead a team characterized by

a history of under performing.

Is he a good fit?

Managing

Relationships

3

Guiding

Interactions

4

Coaching for

Success

4

Coaching for

Improvement

2

Influencing

5

Scenario #3

Chen needs to lead a team in EMEA. What

else might you want to know?

› What if Chen’s job history showed several years of

experience in EMEA?

› What if Chen’s profile showed a willingness to relocate?

Managing

Relationships

3

Guiding

Interactions

4

Coaching for

Success

4

Coaching for

Improvement

2

Influencing

5

Scenario #4

Chen needs to lead a team where morale is

low and disengagement is high. What else

might you want to know?

› What if Chen’s performance review information indicated

motivation as a strength?

› What if Chen had outside experience as a coach or

motivational speaker?

Managing

Relationships

3

Guiding

Interactions

4

Coaching for

Success

4

Coaching for

Improvement

2

Influencing

5

Final Scenario

Chen needs to lead a team with weak political

ties to related departments. What else might

you want to know?

› What if Chen showed an internal job history of overcoming

challenging political situations?

› What if Chen had strong connections to key influencers in

other departments?

Employee Talent Intelligence Foundation

› Full employee job history including roles, companies, self-identified

experiences and areas of expertise

› Employee career ambitions and core HR data: role, compensation, job

code, willingness to relocate, location, manager

› Deep performance reviews that include support for peer reviews, matrix

review models, and real-time reviews

› Learning history, certifications, and real-time updating of

skill, competency, and expertise profile

› Professional relationships, organizational connections, links to

partners, suppliers, customers, analysts, trade groups etc…

› Development plans, succession plans, potential, flight risk

KNOW YOUR PEOPLE, GROW YOUR BUSINESS

Translates to Organizational Talent Intelligence

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Performance Plans Aligned to Goals

Succession Bench Strength

Top Performers NOT on succession plans

Risk of loss for critical employees/positions

Top performers with NO career path

Competency/skills gap analysis

Important or Very Important Access to Reliable Data

Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

<25% HAVE ACCESS TO PEOPLE INSIGHTS

MOST ORGANIZATIONS LACK KEY INFO ON EMPLOYEES

WHEN THEY HAVE IT, MANAGERS DON’T

Three Steps to Leadership Development

WHAT

WHO

HOW

Leadership Development: Theory

ASSESS APPLY

ACQUIRE

S U P P O R T

21%

89% have at least

ONE Blind Spot

9%

14%

9%11%

22%

15%

© Development Dimensions Int’l, Inc., MMXI. All rights reserved.43

Source: DDI’s Finding the First Rung

NUMBER OF BLIND SPOTS

54 6-720 1 3

44

67%“My manager and I have NOT

agreed to a specific, written

development plan.”

Source: DDI’s Finding the First Rung

WHAT

HOW

MEASUREMENT

RESULTS

Leadership Development: Theory

ASSESS APPLY

ACQUIRE

S U P P O R T

© Development Dimensions Int’l, Inc., MMXI. All rights reserved.48

Source: DDI’s Finding the First Rung

My manager has the knowledge and tools to support my development.56%

I get sufficient feedback about my performance.49%My manager is committed to my development.46%

―I’m all alone.‖

The Role of the Manager

• Listen openly

• Ask questions that lead to self-discovery

• Discuss potential barriers & challenges

• Help identify application opportunities

• Offer support and encouragement

Leadership Done Right Impacts the Bottom Line

Relationship between management development and Profit / FTE

THE OLD WAY WAS EASY…ONE METHOD

= Assessments, Targeted Personal

Development Focus

Orientation

Kick Off

FO

RM

AL

LE

AR

NIN

G

APRIL-JUNE JULY-SEPTEMBER OCTOBER-DECEMBER JANUARY-MARCH

Action Learning

Core Curriculum 3

Building High-Performing Teams

Driving Innovation

Supporting Leadership Development

2 days

Action Learning

Action Learning

COACHING

Development

Planning

Meetings

(DDI

Coach, Boss, M

entor)

= Core Curriculum= Action Learning

& Ongoing Development

Job Growth Experiences

INF

OR

MA

L L

EA

RN

ING

, F

EE

DB

AC

K,

AN

D

ON

-TH

E-J

OB

EX

PE

RIE

NC

E

= Learning 2.0 components

Manager/Sr. Leader Kick-Off Webinar

Wikis: Tying leadership

skills to business

outcomes – how do they

link together?

Discussion Board: Participants seek

feedback from BU

leaders on ideas,

best practices

Leadership Development Now Reflects Reality

Core Curriculum 1

Challenges of Transitions

Mastering EQ

Influencing

Courage

3 days

Core Curriculum 2

Cultivating Networks & Partnerships

Making Change Happen

Learning through Transitions

3 days

COACHING

COACHING

ONGOING FEEDBACK AND SUPPORT

Leader Blog: What leadership means to participant, how they

will use new skills

•Assessment:

360 and

personality

Inventories

•Prework

•Action Learning

Kickoff

Development

Planning

Meetings

(DDI

Coach, Boss, M

entor)

Repeat 360

to Assess

Behavior

Change

Interactive: Discussion

› What are some of the ways you develop emerging leaders today?

› What’s working?

› What isn’t working? challenges

Leadership Development:What works today, may

not work tomorrow

NOW THAT WE HAVE THE INFRASTRUCTURE IN PLACE,

WHAT IS IT THAT LEADERS NEED TO BE LEARNING?

What will a leader look like in the near future?

Top Five Past

Critical Skills

1. Driving & managing change

2. Executing organizational strategy

3. Coaching & developing others

4. Making difficult decisions

5. Improving employee engagement

1. Driving & managing change

2. Identifying/developing future talent

3. Fostering creativity & innovation

4. Coaching & developing others

5. Executing organizational strategy

Top Five Future

Critical Skills

Top FiveFuture

Critical Skills

1. Driving & managing change

2. Identifying/developing future talent

3. Fostering creativity & innovation

4. Coaching & developing others

5. Executing organizational strategy

Source: McKinsey Quarterly, Harnessing the power of informal employee networks, 2007

Summary

› Leadership is critical to business success.

› Emerging leaders are a lynchpin to optimizing talent and building long-term

leadership capability in the organization.

› Organizations are not developing this group of leaders very effectively.

› Key elements to successful development of emerging leaders include:

› Identification of existing talent

› Identification of ―ideal‖ talent profiles based on org goals and exemplars

› Development programs that include a variety of training modalities

› Tailor the mix of training to the person and the org

› Look for leadership characteristics not just for today, but tomorrow too.

Discussion

› Where are folks struggling the most?

› Defining leadership profiles?

› Identifying leaders?

› Developing leaders?

› What are some best practices from participants?