Making the Business Case for Building

Effective Business Leaders Jennifer McClure President, Unbridled Talent LLC

@JenniferMcClure #SHRM14

A QUESTION FOR YOU.

$$$

LIKE 13x LESS MONEY. Organizations with the highest quality leaders were 13x more likely to outperform

their competition in key bottom-line metrics such as financial performance.

DDI Global Leadership Forecast, 2011

GOT YOUR ATTENTION?

IT’S A GLOBAL ISSUE.

Deloitte, Global Human Capital Trends, 2014

Top Global Human Capital Trends

By Perceived Urgency

   48%

52%

53%

51%

38%

25%

26%

24%

Urgent Important

Leadership

Reskilling the HR Function

Talent Acquisition & Access

Retention & Engagement

86%

   

Global

   

Trend

 Consumer  Business

 Energy  &  Resources

 Financial  Services

Life  Sciences  &  Healthcare

   

Manufacturing

 Professional  Services

 Public  Sector

Technology  Media  &  Telecom

1) 86% Leadership  

1 1 1 1 1 1 1 1

2) 79% RetenBon  &  Engagement

2 2 2 4 2 2 5 2

3) 77% Reskilling  the  HR  FuncBon

3 2 3 2 3 4 4 3

4) 75% Talent  AcquisiBon  &  Access

7 3 4 4 6 3 8 2

By Industry

Top Global Human Capital Trends

Deloitte, Global Human Capital Trends, 2014

WHY DOES LEADERSHIP MATTER?

10-year performance comparisons

91%

58%

Top 15%

Bottom 15%

Market Capitalization Growth

Chief Executive, 40 Best Companies for Leaders 2013

Impact of Great Leadership

10-year performance comparisons

91%

58%

Top 15%

Bottom 15%

Market Capitalization Growth

Chief Executive, 40 Best Companies for Leaders 2013

Best Companies outperform the

S&P 500 almost 2x over 10 years!

Hay Group

Impact of Great Leadership

DDI, The State of Frontline Leadership

69%

65%

59%

57%

40%

32%

26%

   

   

   

   

   

   

   

Loss of team member Engagement

Loss of productivity

Leader left organization

Team members left organization

Forced to demote

Loss of leader engagement

Loss of profit

Impact of Poor Leadership

DDI, The State of Frontline Leadership

69%

65%

59%

57%

40%

32%

26%

   

   

   

   

   

   

   

Loss of team member Engagement

Loss of productivity

Leader left organization

Team members left Organization

Forced to demote

Loss of leader engagement

Loss of profit

Impact of Poor Leadership

•  Improved Customer Metrics

•  Higher Profitability

•  Increased Productivity

•  Higher Quality

•  Lower Turnover

•  Less Absenteeism

•  Less Shrinkage (Theft)

•  Fewer Safety Incidents Harvard Business Review, 2014

Gallup has discovered links between employee engagement and vital performance indicators:  

MAKE THE BUSINESS CASE.

IMPLEMENTATION PLAN DEFINE SUCCESS METRICS MAKE RECOMMENDATION

PROPOSE SOLUTIONS PROVIDE ANALYSIS

DEFINE THE PROBLEM EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

DEFINE THE PROBLEM

PROVIDE ANALYSIS

PROPOSE SOLUTIONS

MAKE RECOMMENDATION

DEFINE SUCCESS METRICS

IMPLEMENTATION PLAN

CRITICAL COMPONENTS.

CREATE A STRATEGY

“Our research shows that enduring business performance is really driven at much deeper

levels: a focus on leadership strategy.

Long term business performance comes from leadership culture and careful and continuous

development of leadership at all levels. Josh Bersin, Forbes

Best Companies for Leadership, 2013

Hay Group, 2013

Top  20  Best  Companies  for  Leadership:  

Best Companies for Leadership, 2013

Hay Group, 2013

100% of top 20 companies had CEOs who were actively involved in developing leadership talent.

Top  20  Best  Companies  for  Leadership:  

Change in probability of

being a top-tier leadership

organization

Senior Executives are good role models for

developing employees

Executives believe development is important

Line Managers make development a priority

84.1

70.3

54.2

Corporate Executive Board

The Power of Leading by Example

DEFINE COMPETENCIES

9%

11%

13%

7%

9%

12%

7%

9%

9%

11%

Decision-­‐Making  

Problem-­‐Solving  

PrioriBzaBon  

Technical  ExperBse  

Influence  

Teamwork  

Learning  Agility  

ProacBvity  

Self-­‐Awareness  

OrganizaBonal  Awareness  

Adapt to Change

Work Collaboratively

Apply Judgment

The Corporate Executive Board

10 Competencies That Drive Performance

HIRE FOR TALENT

LEADER

Gallup Inc,

1 in 10 people possess the inherent talent to manage.

Choose Leaders Based Upon Talent

LEADER

TRUE LEADER

82% of the time, companies choose wrong.

Choose Leaders Based Upon Talent

Gallup Inc,

IBM CEO Study

Success Factors: Future Potential

IBM CEO Study

Success Factors: Future Potential

IDENTIFY POTENTIAL

Corporate Executive Board

6% to 9%

Harvard Business Review, June 2014

“…new era of talent spotting - one in which our evaluations of one another are based not on brawn, brains, experience, or competencies, but on potential.”

Although experience and development are important, we believe they account for about

30% of leadership success.

The rest we attribute to talent — and the assessment of predictive talent is where so

many companies fall short. Gallup Inc, 2012

DEVELOP LEADERS

Leaders: Born or Made?

“People often describe certain individuals as ‘natural-born leaders’, but the truth is that

business leaders are made, not born - shaped through the assignments they receive and

the experiences they have.” �Diana O’Brien & Alice Kwan, Fast Company

LEADERSHIP DEVELOPMENT PROGRAM

Job  Assignments  

Special  Projects  

Team  Work  

Mentors  

Coaches  

Customized  Learning  

COMPREHENSIVE LEARNING APPROACH Experiential Learning Approach

Experiential Learning Approach

LEADERSHIP DEVELOPMENT PROGRAM

Job  Assignments  

Special  Projects  

Team  Work  

Mentors  

Coaches  

Customized  Learning  

70

10 20

SUCCESSION PLANNING

65%

DDI Research

of organizations don't have a formal process to identify & grow the talent that they need.

65%

DDI Research

R A W

Ready Able Willing

•  Prioritize hard-to-fill positions or scarce skill-sets

•  Identify current risk of turnover

•  Account for changing business needs

•  Incorporate organizational goals (ex. Diversity)

Key Succession Planning Considerations

LEADERSHIP DOES MAKE A DIFFERENCE.

“The truth is that no one factor makes a company admirable; but if you were

forced to pick the one that makes the most difference - you’d pick leadership.”

Thomas A. Stewart, Author & former managing editor Harvard Business Review

ACTION STEPS

Action Plan

Define the

Problem Create a Strategy

Define Competencies

Hire & Promote based upon TALENT

Identify High Potential Employees

Develop Leaders

Plan for Succession

TO DO

CONTINUOUSLY EVALUATE!

Jennifer McClure

unbridledtalent.com

@JenniferMcClure

THANK YOU!