global leadership forecast 2011
TRANSCRIPT
About the Global
Leadership Forecast
1,897 HR Professionals
12,423 Leaders
2,679 Organizations
74 Countries
HR = indicate responses from HR Professionals. All other results are from leaders.
Leadership Development Effectiveness 34%
2011 29%2009
33%2006
HR
LeadershipQuality
37%
20
09
38%
20
11
25%HR
18%Future Bench Strength
HR
Leadership Quality Impacts…
Confidenceof Future Business Success
4%
66%
Low Leadership Quality
High Leadership Quality
Retention 24%
70%
Low Leadership Quality
High Leadership Quality
Engagement9%
50%
Low Leadership Quality
High Leadership Quality
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
Passion7%
53%
Low Leadership Quality
High Leadership Quality
Performance:Top vs. Average
50%better
Cost of Leadership Performance
AVERAGE HIGHLOW
1 Leader X 10 Direct Reports
X $170,000 Revenue Per EE
$1.7 million
If the difference between an average leader and top-performing leader is 50%
$2.6 million
Time for a (R)evolution!
Enhanced Business
Impact
Quality of
Leadership
Enhanced People
Outcomes
Talent Systems & Practices
Leadership Development
Management Culture
Development Matters
Leadership Development
Talent Systems & Practices
Management Culture
EffectiveDevelopment =
Quality Leadership 13%
62%
Low Development Effectiveness
High Development Effectiveness
Leadership Development:What works today, may
not work tomorrow
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
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
Leadership Skill Effectiveness:
50 / 50 Value Proposition
(R)Evolution Point 1A Leader’s Role in Innovation
Lack of Understanding Stakeholders
Aversion to Risk
Failure to Execute
Innovation Challenges Culture of Innovation
Think Differently
Question Assumptions
Get Things Done
Experiment
Team Members
Lackluster Ideas
The Leader’s Role in Innovation
Inspire Curiosity
Drive Discipline
Leader
Challenge Current Perspectives
Create Freedom
Leadership Development
Methods
• Formal classroom training
• Special projects
• Coaching from your manager
• Moving positions
• Coaching from internal coaches
• Web-based, self-study learning
• Coaching from external coaches
• Virtual classroom
Formal classroom training
Special projects or assignments
Coaching from your manager
Moving positions
Coaching from internal coaches
Web-based learning
Coaching from external coaches
Virtual classroom
Which method is most effective?
Organizations that have effective programs use
more methods.
32%
HR
(R)Evolution Point 2Learning: From Event to Journey
10~20~70FORMAL COACHING ON-THE-JOB
= Assessments, Targeted Personal Dev elopment Focus
OrientationKick Off
Coaching
Form
al L
ea
rnin
g
April-June July-September October-December January-March
Action Learning
Ongoing Feedback and Support
Core Curriculum 3
Building High-Performing Teams
Driving Innovation
Supporting Leadership Development
2 days
Action Learning
Action Learning
Coaching Coaching
•Assessment: 360 and personality Inventories
•Prework
•Action Learning Kickoff
DevelopmentPlanningMeetings
(DDI Coach, Boss, Mentor)
Repeat 360 to Assess Behavior Change
DevelopmentPlanningMeetings
(DDI Coach, Boss, Mentor)
= Core Curriculum= Action Learning
& Ongoing Dev elopment
Job Growth Experiences
Info
rma
l L
ea
rnin
g, Fe
ed
bac
k,
an
d
On-t
he-j
ob
Exp
eri
en
ce
= Learning 2.0 components
Manager/Sr. Leader Kick-Off Webinar
Leader Blog: What leadership means to participant, how they will use new skills
Wikis: Tying leadership skills to business outcomes – how do they link together?
Discussion Board: Participants seek feedback from BU leaders on ideas,
best practices
A Sample Learning Journey
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
Talent Management Matters
Leadership Development
Management Culture
Talent Systems & Practices
Firing on all cylinders
Leadership Succession 77%
Performance Management 77%
Leadership Selection 79%
22%
42%
31%
30%
33%
31%
Programs & learning for mid-level leaders 76%
Programs & learning for senior leaders 74%
Programs & learning for frontline leaders 68%
Future Importance
Current Effectiveness
HR
1/3Use Validated Tools
Selection
HR
Hiring Failures:
1 in 3 72%
63%
28%
37%
External
Internal
Success Failure
HR
81% Tied to corporate goals
69% Balanced between “whats” and “hows”
56% Discussions provide clear direction for development
Performance Management
Succession 18%Rate Bench Strength Strong
HR
The Leadership Pipeline
64% of leaders made a leadership transition in the past 5 years
26% of organizations have effective programs to ensure smooth leadership transitions
BUT ONLY
(R)evolution Point 3Get it Right: Identifying Potential
There’s a Difference
Performance
Potential
Readiness
How one is performingnow in current role
One’s likelihood of leadership growth
One’s fit with a specific role, job or job family
LeadershipPotential
50%39%44%
37%
Identification of High Potentials
Growth of High Potentials
2009
2011
HR
Best Practices
88%
87%
60%
48%
46%
43%
Organizations with effective talent management systems
Organizations with ineffective talent management systems
19%
19%
13%
8%
3%
3%
HR
Talent Systems & Practices
Culture Matters
Leadership Development
Management Culture
“Right now, your company has 21st century Internet-enabled business processes, mid-20th-century management processes, all built atop 19th-century management principles.”
Culture Impacts
Passion 29%57%
81%
Low effectiveness of management culture
Medium effectiveness of management culture
High effectiveness of management culture
17%31%
51%
Culture Impacts The bottom line
Low effectiveness
of management culture
Medium effectiveness
of management culture
High effectiveness
of management culture
Management Culture Killers
61%
54%
Decisions are held closely by those in power
Organizations are siloed, rigid, hierarchical
44%
43%
41%
38%
37%
32%
Bureaucracy of management processes
Innovation opportunities for select few
Goals only focus on bottom-line growth
Power to those who value status quo
Influence based on position power
Values that are not meaningful
(R)evolution Point 4Innovating the Way We Manage
Management Culture
Revolutionized
• Management processes are a competitive advantage
• Values are shared and meaningful
• Merit-based influence
• Innovation opportunities for all
• Strategic decisions open for discussion
• Flexible, nimble structure
• Power held by those who value innovation
• Goals of growth, sustainability, and social significance
Enhanced Business
Impact
Quality of
Leadership
Enhanced People
Outcomes
Talent Systems & Practices
Leadership Development
Management Culture
68th Percentile Leadership Development Talent Management Management Culture
35th Percentile Leadership Development Talent Management Management Culture
24th Percentile Leadership Development Talent Management Management Culture
The Bottom Line
What do leaders need to weather these volatile and ambiguous times and to accelerate their
growth and development?
Learn the answer to that question—and others—with the largest benchmarking study.
www.ddiworld.com/GLFsurvey