An Organizational Analysis of Leadership Effectiveness and ... · Career management Uses effective...

An Organizational Analysis of Leadership Effectivenessand Development Needs

Prepared For

ABC Company (Standard Survey)

23 June 2009

©2009 Center for Creative Leadership. All Rights Reserved.

Purpose and Overview 2Assessing Leaders 3Leadership Competency Definitions 4

Respondent Profile 5Success Profile 6

Reflection Questions 7

Leadership Profile 9Reflection Questions 10

Leadership Gap Profile 12Leadership Gap - Now 13Leadership Gap - Future 14

Leadership Attention Index 15Potential Challenges 16

Assessing Derailment Potential 16Reflection Questions 17

Developmental Planning 18Additional Tables 23

TABLE OF CONTENTS

©2009 Center for Creative Leadership. All Rights Reserved. 1

PurposeandOverview

The Leadership Gap Indicator is a tool for assessing managers' views about their leadershipdevelopment needs. Managers assess the relative importance of select leadershipcompetencies for success and in the and rate their ability to perform on thesenow futurecompetencies. Gaps are exposed when these data reveal a deficit between managers' currentand desired state of leadership capability.

To better understand managers' perceptions of their development needs, the Leadership GapIndicator report presents answers to key questions about your organization's present state ofleadership.

Success Profile Which leadership competencies are critical for success inyour organization?

Leadership Profile How strong are your managers in these criticalcompetencies?

Leadership Gap Profile How aligned are your managers' strengths with what isconsidered important?

Leadership Attention Index Where should your organization focus its leadershipdevelopment efforts?

Potential Challenges What factors may lead to the derailment of leaders inyour organization?

The data in this report can be used to

Identify leadership strengths and development needs in your organizationBegin discussions about the impact of these strengths and development needs on theorganizationRank the importance of leadership competencies within the organizationInform training and development plans.

Purpose and Overview


AssessingLeaders

Assessing Leaders

All competencies in the Leadership Gap Indicator Library are part of the Center for CreativeLeadership's (CCL's) typology of leader competencies. These competencies were identifiedthrough multiple research projects aimed at understanding effective leadership. They arecharacteristics of managers, observable through behavior, and are related to effectiveleadership performance.

The competencies assessed in this survey are organized into 3 dimensions using the typologyof leader attributes - Leading the Organization, Leading Others, Leading Yourself.

Selected Leadership Competencies

Leading the Organization

• Being a quick learner• Change management• Decisiveness• Strategic perspective• Strategic planning

Leading Others

• Building collaborativerelationships

• Compassion & sensitivity• Confronting problem

employees• Employee development• Inspiring commitment• Leading employees• Participative management• Putting people at ease• Respect for differences

Leading Yourself

• Balancing personal life &work

• Career management• Composure• Culturally adaptable• Self-awareness• Taking initiative



Leadership Competency Definitions

Balancing personal life & work Balances work priorities with personal life.Being a quick learner Quickly masters new technical and business knowledge.

Building collaborative relationships Builds productive working relationships with co-workers andexternal parties.

Career management Uses effective career management tactics, includingmentoring, professional relationships, and feedback channels.

Change management Uses effective strategies to facilitate organizational changeinitiatives and overcome resistance to change.

Compassion & sensitivity Shows genuine interest in others and sensitivity to employees’needs.

Composure Demonstrates self-control in difficult situations.

Confronting problem employees Acts decisively and with fairness when dealing with problememployees.

Culturally adaptable Adjusts to ethnic/regional expectations regarding HumanResource practices and effective team process.

Decisiveness Prefers doing or acting over thinking about the situation.

Employee development Coaches and encourages employees to develop in theircareers.

Inspiring commitment Motivates others to perform at their best.Leading employees Attracts, motivates, and develops employees.Participative management Involves others, listens, and builds commitment.Putting people at ease Displays warmth and a good sense of humor.

Respect for differencesEffectively works with and treats people of varyingbackgrounds (culture, gender, age, educational background)and perspectives fairly.

Self-awareness Has an accurate picture of strengths and weaknesses and iswilling to improve.

Strategic perspective Understands the viewpoint of higher management andeffectively analyzes complex problems.

Strategic planning Develops long-term objectives and strategies; translates visioninto realistic business strategies.

Taking initiative Takes charge and capitalizes on opportunities.

LeadershipCompetencyDefinitions



RespondentProfile

Who completed the survey?

This report is based on the analysis of 10 responses. Below are demographics about themanagers who responded to the survey. Due to rounding, totals may not equal 100%.Age

Below 45 45 - 54 55 and Above

50.0%

30.0% 20.0%

Gender

Female Male

50.0%

50.0%

Years of Service

Up to 5 years 6 - 10 years 11 years or more

10.0%10.0%

80.0%

Level

Top Executive Upper Middle Middle Other

10.0%10.0%20.0%

20.0%

40.0%

Respondent Profile


Which leadership competencies are critical for success in your organization?

Managers rated how important each skill is for success in your organization right now and howimportant each skill will become for success over the next five years. Combining theseperspectives provides a comprehensive picture of the leadership competencies managersconsider to be of greatest importance. In the graph below, leadership competencies that fall inthe upper right quadrant are considered by managers to be important both now and in thefuture.

Leading the OrganizationA Being a quick learnerB Change managementC DecisivenessD Strategic perspectiveE Strategic planning

Leading OthersF Building collaborative relationshipsG Compassion & sensitivityH Confronting problem employeesI Employee developmentJ Inspiring commitmentK Leading employeesL Participative managementM Putting people at easeN Respect for differences

Leading YourselfO Balancing personal life & workP Career managementQ ComposureR Culturally adaptableS Self-awarenessT Taking initiative

More

ABC

D

E

FGH

I

J

K

L

M NO

PQ

R

S

T

Impo

rtant

Now

LessLess Important in the Future More

SuccessProfile

Success Profile


This graph, also based on the answers to the importance questions, shows the pattern ofratings for each competency over time. Each plot is based on the average score for the groupof managers who responded. The competencies are listed in descending order of theirimportance in the future. The range of possible ratings is from 1 (not at all important) to 7(critically important).

Important Now Important in the Future

1 2 3 4 5 6 7

Self-awareness

Strategic planning

Being a quick learner

Change management

Decisiveness

Confronting problememployees

Inspiring commitment

Respect for differences

Balancing personal life &work

Building collaborativerelationships

Career management

Composure

Taking initiative

Compassion & sensitivity

Employee development

Leading employees

Participative management

Putting people at ease

Culturally adaptable

Strategic perspectiveReflectionQuestions

Success Profile


Reflection Questions

How well do the importance ratings align with your organization's strategic direction?What is driving the importance of these ratings?What might account for some competencies becoming more or less important in thefuture? For example, are these changes related to changes in your organization'sstrategy, your industry, or the economy?How might changes in the importance of particular competencies impact your leaderselection and development practices?

Success Profile


How strong are your managers in these critical competencies?

Respondents rated (a) the overall amount of skill that managers at their level currentlydemonstrate and (b) what they need to demonstrate to be maximally effective on each of theleadership competencies. The graph below shows the difference between managers’perspectives of their current skill and their needed skill. The competencies are listed indescending order of skill gap magnitude.

Positive values indicate that needed skill is greater than current skill. Negative values indicatethat current skill is greater than needed skill. In other words, less skill is needed in the future tobe effective. The average skill gap is also presented in the table header as a benchmark. Therange of possible values is from -6 to +6, but in practice it is rare to see values exceed -3 to +3.

Average Difference: 1.40-3 -2 -1 0 1 2 3

Self-awareness 6.00

Composure 4.30

Taking initiative 3.90

Career management 3.70

Compassion & sensitivity 2.00

Building collaborative relationships 1.90

Change management 1.90

Decisiveness 1.80

Balancing personal life & work 1.60

Being a quick learner 1.50

Confronting problem employees 1.20

Putting people at ease 0.90

Inspiring commitment 0.80

Respect for differences 0.80

Participative management 0.70

Employee development 0.60

Leading employeesStrategic perspectiveStrategic planningCulturally adaptable -6.00

LeadershipProfile

Leadership Profile


This graph, also based on the answers to current and needed skill questions, shows the patternof ratings for each competency. Each plot is based on the average rating for the group ofmanagers who responded. The competencies are listed in descending order of their neededskill level. The range of possible ratings is from 1 (extremely small amount) to 7 (extremelylarge amount).

Current Skill Level Needed Skill Level

1 2 3 4 5 6 7

Self-awareness

Strategic planning

Balancing personal life &work

Being a quick learner

Change management


Compassion & sensitivity

Putting people at ease

Composure


Decisiveness

Respect for differences

Taking initiative

Employee development

Inspiring commitment

Career management

Leading employees

Participative management

Culturally adaptable

Strategic perspectiveReflectionQuestions

Leadership Profile



As a group, what do managers need to improve?For each area in need of development, describe specific behaviors that would indicatecompetence or effectiveness in that area.What specific behaviors describe ineffective leaders in these areas?

Leadership Profile


How aligned are your managers' strengths with what is considered important?

This section of the report gets at the heart of the survey - comparisons of managers' currentskill levels with the competencies they consider important now and in the future. Over the nexttwo pages, competencies are mapped in the appropriate quadrant based on their skill level andimportance ranking.

How to Read the Quadrants

Competencies that areconsidered strengths but

are less important.

Competencies that areconsidered strengths and

are important.

Over Investments On Track

Reserves Key Gaps

Stronger

Ski

llLe

vel

Weaker

Less Importance More

Competencies that are notconsidered strengths and

are less important.

Competencies that are notconsidered strengths but

are important.

LeadershipGapProfile

Leadership Gap Profile


The four-quadrant graph below overlays importance now rankings with strengths andweaknesses in managers' current skill levels, revealing areas of strong alignment and gaps thatmay need to be filled.




Stronger

A

B

C

D

E

FG

H

I

J

K

L

M

N

O

PQ

R

S

T

Cur

rent

Ski

llLe

vel

WeakerLess Important Now More

LeadershipGap-Now


How well are managers' skills aligned with what is important?Where do the majority of the competencies fall on the graph?What strategies - both short term and long term - can be employed to close the gaps?



This graph overlays current strengths with the competencies that are considered important inthe future. Like the previous graph, competencies in the lower right corner quadrant may be"red flags" because they represent leadership skills that are important for the future but arelacking strength.

Stronger

A

B

C

D

E

FG

H

I

J

K

L

M

N

O

PQ

R

S

T

Cur

rent

Ski

llLe

vel

WeakerLess Important in the Future More




LeadershipGap-Future


Are there competencies that are not gaps currently, but could become gaps in thefuture?What long term strategies could you employ to close the gaps?What targeted efforts can the organization undertake to gain a greater return for traininginvestments?



Where should your organization focus its leadership development efforts?

The Leadership Attention Index (LAI) helps answer this question. For each competency, the LAIreflects the amount of skill managers say they currently demonstrate, the amount of skill theysay they need to be effective, and their perception of the future importance of that skill. Scoreson the LAI can range from -50 to +50, but in practice it is rare to see values exceed -30 to +30.The LAI is best interpreted as a relative measure of priority among the skills identified asleadership gaps. A lower index score on a particular skill means that a small skill gap was foundand that the skill is not rated as important for the future. A higher index score means that theparticular skill requires more urgent attention since the skill was found to have a larger skill gapand was rated as more important for the future.

Score -30 -20 -10 0 10 20 30

Self-awareness 49.98

Composure 25.59

Taking initiative 23.21

Career management 22.02

Change management 13.79

Decisiveness 13.07

Compassion & sensitivity 11.66


11.31

Being a quick learner 10.89

Balancing personal life & work 9.52


8.00

Putting people at ease 5.25

Inspiring commitment 5.14

Respect for differences 4.95

Participative management 4.08

Employee development 3.50

Leading employees 1.75

Strategic perspective 0.00

Strategic planning 0.00

Culturally adaptable -7.14

LeadershipAttentionIndex

Leadership Attention Index


PotentialChallenges AssessingDerailmentPotential

What factors may lead to the derailment of leaders in your organization?

Assessing Derailment Potential

A derailed leader is one who was seen as a high potential candidate for a top job, but who losthis or her effectiveness as a leader over time and was eventually let go or removed fromconsideration for further promotion. Since 1983, CCL has studied people who reach the top oforganizations as well as those who derail, with the purpose of better understandingdevelopment needed for senior leadership positions. The five major problems that contribute toderailment are defined below.

Derailment Characteristics

Problem Areas Definition

Difficulty building andleading a team

Difficulties in selecting, developing, andmotivating a team.

Difficulty changing oradapting

Resistant to change, learning from mistakes,and developing.

Failure to meet businessobjectives

Difficulties in following up on promises andcompleting a job.

Problems withinterpersonal relationships

Difficulties in developing good workingrelationships with others.

Too narrow functionalorientation

Lacks depth to manage outside of one'scurrent function.

Potential Challenges


Managers rated the overall amount to which each of the following factors are problems formanagers at their level. The bar graph points out the perceived potential for derailment. Therange of ratings is from 1 (extremely small amount) to 7 (extremely large amount).

Lower Derailment Potential Higher Derailment Potential

1 2 3 4 5 6 7

Difficulty building and leading ateam 5.10

Difficulty changing or adapting 4.20

Failure to meet business objectives 4.20

Problems with interpersonalrelationships 4.70

Too narrow functional orientation 4.10


What are the implications of this information?How does derailment affect productivity, group performance, and morale?If these areas were strengths, how might things be different?

ReflectionQuestions

Potential Challenges


The Next Steps

How prepared are managers at ABC Company? Below are suggestions to close the leadershipgaps identified by the Leadership Attention Index. Competencies with a highest index score arestated followed by three types of suggestions to: sensitize managers to the importance of theleadership competency, enable the development of the skills, and support efforts towards skilldevelopment.

Self-awareness

This skill has a high LAI value.

This skill involves recognizing personal limits and strengths. Self-aware managers -Admit personal mistakes.Learn from mistakes.Seek feedback.Know themselves well (strengths and weaknesses).

To improve:

SensitizeImplement a 360-degree assessment in the organization.

EnableOffer a mentoring program that matches managers with higher level managers.

SupportAdopt best practices and lessons learned from within and outside the organization.

DevelopmentalPlanning

Developmental Planning


Composure


This skill involves demonstrating self-control in difficult situations. Managers with competencein this skill typically -

Do not become hostile when things are not going well.Do not blame others for mistakes.Spend more time offering solutions rather than complaining about problems.Remain calm when crises occur.

To improve:

SensitizeGive managers feedback on how they are perceived by others when they are understress.

EnableOffer stress management courses.Develop organizational norms that focus on creative solutions as opposed to problemidentification.Offer emotional intelligence assessments and classes.

SupportMake sure managers have support systems in place.Make sure managers have healthy avenues to release stress.



Taking initiative


Managers having high competence in this skill typically persevere under adverse conditions.They are able to take charge yet are open to learning from others.

To improve:

SensitizeHelp managers identify best practices for getting work done efficiently and effectively.

EnableEncourage managers to undertake a daily exercise program to increase energy andendurance.

SupportHelp managers adopt a “can-do” attitude when faced with challenges.Support managers by encouraging them to get involved in activities that make themfeel excited and motivated.Help managers delegate or trade tasks that no longer motivate them.



Career management


Managers who can manage their career well -Use mentoring relationships.Use coaches.Build networks.Develop professional relationships.

To improve:

SensitizeEncourage managers to seek honest feedback from others on a continual basis andinstruct them in techniques for giving and receiving feedback.Create an effective learning environment in the organization.

EnableHave managers review their performance development plans with a coach.

SupportAnticipate roadblocks that can sidetrack managers’ development, and makeadjustments.Create development partners to support development.



Change management


Managers who can manage change well use effective strategies to facilitate organizationalchange. Such managers -

View change positively.Adapt plans as necessary.Manage others’ resistance to change.Adapt to the changing external pressures facing the organization.Involve others in the design and implementation of change.

To improve:

SensitizeOffer change management classes.Train managers on the points of resistance to change and the positive outcomes ofchange.

EnableEncourage managers to involve others in decision making during organizationalchange.Create a “space” for managers to exchange creative ideas and solutions.

SupportEncourage innovation throughout the organization.Give managers permission to accept employees’ resistance to change and help themto develop strategies to deal with it.



These tables present the numbers used in the graphs.

Overall Mean ScoresCurrently

DemonstratingNeeds to

DemonstrateImportance

NowImportance in

the Future

Balancing personal life & work 5.10 6.70 4.50 5.00

Being a quick learner 5.20 6.70 4.10 6.10

Building collaborative relationships 4.60 6.50 4.60 5.00

Career management 2.10 5.80 3.10 5.00

Change management 4.80 6.70 4.10 6.10

Compassion & sensitivity 4.50 6.50 4.60 4.90

Composure 2.10 6.40 3.10 5.00

Confronting problem employees 5.10 6.30 5.00 5.60

Culturally adaptable 7.00 1.00 7.00 1.00

Decisiveness 4.50 6.30 4.10 6.10

Employee development 5.30 5.90 4.40 4.90

Inspiring commitment 5.10 5.90 5.40 5.40

Leading employees 5.50 5.80 4.60 4.90

Participative management 4.90 5.60 4.30 4.90

Putting people at ease 5.60 6.50 4.50 4.90

Respect for differences 5.30 6.10 4.50 5.20

Self-awareness 1.00 7.00 1.00 7.00

Strategic perspective 1.00 1.00 1.00 1.00

Strategic planning 7.00 7.00 7.00 7.00

Taking initiative 2.10 6.00 3.10 5.00

Leadership Skills

Leadership Skills LAI RankBalancing personal life & work 9.52 10

Being a quick learner 10.89 9

Building collaborative relationships 11.31 8

AdditionalTables

Additional Tables


Leadership Skills LAI RankCareer management 22.02 4

Change management 13.79 5

Compassion & sensitivity 11.66 7

Composure 25.59 2

Confronting problem employees 8.00 11

Culturally adaptable -7.14 20

Decisiveness 13.07 6

Employee development 3.50 16

Inspiring commitment 5.14 13

Leading employees 1.75 17

Participative management 4.08 15

Putting people at ease 5.25 12

Respect for differences 4.95 14

Self-awareness 49.98 1

Strategic perspective 0.00 18

Strategic planning 0.00 18

Taking initiative 23.21 3

Additional Tables


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