Developing 21st Century Leaders Who Make a Difference
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Transcript of Developing 21st Century Leaders Who Make a Difference
Copyright © 2011 Bersin & Associates. All rights reserved.
Developing 21st Century Leaders Who Make a Difference 2011 Research Findings
Barb Loew-Arth, Analyst Leadership Development & Succession Management November 3, 2011 Sponsored by:
Copyright © 2011 Bersin & Associates. All rights reserved.
Today’s Speaker
Barb Loew-Arth Principal Analyst Bersin & Associates Responsible for: Leadership development and succession management research practices
Copyright © 2011 Bersin & Associates. All rights reserved.
Developing 21st Century Leaders Who Make a Difference 2011 Research Findings
Barb Loew-Arth, Analyst Leadership Development & Succession Management November 3, 2011 Sponsored by:
Copyright © 2011 Bersin & Associates. All rights reserved.
About Bersin & Associates Who We Are and Our Research Practices
Human Resources
Leadership Development
Learning & Development
Talent Acquisition
Talent Management
Success Drivers Strategy & Planning | Disciplines | Systems and Solutions | Benchmarking
Focus Areas More than 80 specific areas of expertise
Foundations Frameworks | Maturity Models | Factbooks® | High-Impact® Research Programs
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Agenda
§ Our research approach
§ Why leadership development (LD)
§ What is LD – our framework
§ Key research findings • LD maturity • LD trends • LD best practices
- LD strategy - 21st century competencies - Targeted leader levels - Targeted solutions
§ The business impact of leadership development
§ Cases in point
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Our Research Approach
• An extensive quantitative survey of more than 300 leadership development and L&D managers identifying key drivers, best practices, business challenges, and trends in leadership development;
• Comprehensive briefings with almost 20 leadership development content and service providers on leadership development tools, programs, assessments, simulations, coaching, mentoring and other leadership development solutions; and
• Detailed interviews with more than 20 leadership development and L&D managers responsible for high-impact enterprise-wide global leadership development strategy and programs.
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Key Questions Answered
• Is leadership development a real differentiator to an organization’s business goals? If so, what business impact does it return?
• What are the components of modern-day leadership development?
• What does leadership development maturity look like?
• What are best practices for leadership development?
• What are the key capabilities required for effective 21st century leaders?
• Which leader levels are companies targeting for leadership development?
• How important is a leadership development strategy to leadership
development?
• How do effective organizations govern, communicate about and support
leadership development?
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Why Leadership Development (LD) cited as the top HR priority
From Bersin’s TalentWatch 1Q2011
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The Changed Landscape
Workplace Workforce
Interconnected Multi-Generational
Dynamic Global Performance-driven Interconnected
New Leadership Mobile
More Specialized Transient
New Models for Leadership Strategy New Models for LD Programs
Manager
Employee Mentor
Peer
Partner
Customer
Candidate
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2011 Top Business Challenges Globalization, product expansion, innovation
From Bersin’s TalentWatch 1Q2011
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2011 Top Talent Challenges
From Bersin’s TalentWatch 1Q2011
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Talent Shortages by Job Role
From Bersin’s TalentWatch 1Q2011
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Poll
Do you have leadership development solutions in place for all leader levels? 1. Supervisors Y or N 2. Mid level managers Y or N 3. Senior leaders Y or N 4. Executives Y or N 5. High-potentials Y or N
Copyright © 2011 Bersin & Associates. All rights reserved.
Case in Point Targeted leader levels – a focus on mid-level leader development
Industry: Banking Employees: 11,000 Development Challenges: § Large leadership changes at the top at a time of great turmoil in banking § Knew they needed to develop people at a time when they were reinventing themselves § Committed to development at a time when the industry was just trying to stay whole § Had to be prepared to contribute to the execution of their strategic plan
The Solution: § Focus on mid-level leaders because they are the future of the company § A mid level leader program that leverages a blend of formal and informal learning:
• Leveraged DDI’s Business Impact Leadership®
The Impact: § 48% more said they can better implement strategy post-development § 70% more reported more productive coaching outcomes § 90% said there was immediate on-the-job applicability
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Leadership Development Strategy
Leader Audiences
Dev
elop
men
t So
lutio
ns
Leadership Development Framework™ O
rgan
izat
ion
& G
over
nanc
e Evaluation and Sustainability
Emerging Leaders
Managing Self
Exe
cutiv
e S
pons
orsh
ip. S
teer
ing
Com
mitt
ees,
Per
form
ance
Con
sulta
nts,
C
hang
e M
anag
emen
t, G
loba
l and
Loc
al Im
plem
enta
tion
Program
Evaluation, K
ey Metrics, Leadership S
corecard, B
enchmarking, B
usiness Impact
High Potentials
Senior Leaders Managing a
Function or BU
Mid-Level Leaders
Managing Other Managers
Front-Line Leaders
Managing Others
Leadership Competencies/Capabilities Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements
Executives Managing an
Enterprise
Leadership Brand and Leadership Culture
Leadership Strategy Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment,
Strategy Assessment, Talent Management Integration
Curriculum Design Business Alignment, Competencies/Capabilities, Core Values, Multi-level,, “Signature” programs, Pre-requisites,
Leadership Transitions, Leaders as Teachers, Technology Strategy, Build vs Buy (LD Providers)
Formal ILT
Virtual Classroom e-learning
Assessments Onboarding Coaching Simulation
Informal (Social, Embedded, On-Demand)
Mentoring Communities of Practice
Blogs Wikis
Action Learning Ex-Pat Assignments Stretch Assignments
Job Rotations
Technology Strategy Infrastructure Systems Integration
Curriculum Delivery
College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Customized Content Leaders Teaching Leaders
Copyright © 2011 Bersin & Associates. All rights reserved.
Case in Point Leadership Strategy
Hewitt
Industry: world class HR consulting and outsourcing services organization Employees: 23,000 Development Challenge: § To attract and build talent The Solution: § Define a leadership strategy to include definition of:
• How to identify/reward/manage talent based on performance and potential assessments • Our process for holding managers accountable for developing talent • Our commitment to career development options for employees and leaders • Our philosophy on development options that grow the professional/technical/leadership capabilities of its
employees and leaders • Our approach to designing development solutions that blend of learning solutions that leverage work
experience, performance feedback and formal education
The Impact: § Enhanced engagement scores § Reduced voluntary attrition rate
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Case in Point Tailored leadership competencies – 21st century competencies
UnitedHealth Group
Industry: Health care Employees: approximately 80,000 LD Challenges: § Align LD program content with business goals § Maintain only those programs that are aligned with driving achievement of business
goals The Solution: § Define a leadership competency model The Impact: § Improvement in promotion rates, employee engagement scores and/or performance
scores.
“Success Factors” Competency Framework by Level Employee Leadership Senior Leadership
Acts as a team player
Lead and develop people
Lead and develop the organization
Focus on customers
Deliver value to customers
Deliver value to customers
Make fact-based decisions
Drive sound, disciplined decisions
Make strategic decisions
Delivery quality results
Drive high-quality execution
Achieve organizational goals
Support change and innovation
Lead change and innovation
Champion change and innovation
Communicate effectively
Communicate effectively
Communicate effectively
Act ethically Model and ensure ethical behavior
Model and ensure ethical behavior
Source: UnitedHealth Group, 2010
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How does this align to the six Best
Practices of LD?
1. Executive Engagement 2. Business Alignment 3. Leadership Competencies
4. All Levels of Leadership 5. Talent Management Integration 6. Targeted Solutions
Leader Audiences
Org
aniz
atio
n &
Gov
erna
nce
Evaluation and Sustainability
Emerging Leaders
Managing Self
Exe
cutiv
e S
pons
orsh
ip. S
teer
ing
Com
mitt
ees,
Per
form
ance
Con
sulta
nts,
C
hang
e M
anag
emen
t, G
loba
l and
Loc
al Im
plem
enta
tion
Program
Evaluation, K
ey Metrics, Leadership S
corecard, B
enchmarking, B
usiness Impact
High Potentials
Senior Leaders Managing a
Function or BU
Mid-Level Leaders
Managing Other Managers
Front-Line Leaders
Managing Others
Leadership Competencies/Capabilities Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements
Executives Managing an
Enterprise
Leadership Brand and Leadership Culture
Leadership Strategy Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment,
Strategy Assessment, Talent Management Integration
1 4
31 2
4
3
1 2
1 2
1
5 62
1 2
5 6
Leadership Development Strategy
Dev
elop
men
t So
lutio
ns
Curriculum Design Business Alignment, Competencies/Capabilities, Core Values, Multi-level,, “Signature” programs, Pre-requisites,
Leadership Transitions, Leaders as Teachers, Technology Strategy, Build vs Buy (LD Providers)
Technology Strategy Infrastructure Systems Integration
College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Leaders Teaching Leaders
1 32 4 5 6
1 2 6
5 6
6
5
Informal (Social, Embedded, On-Demand)
Mentoring Communities of Practice
Blogs Wikis
Action Learning Ex-Pat Assignments Stretch Assignments
Job Rotations
Formal ILT
Virtual Classroom e-learning
Assessments Onboarding Coaching Simulation
College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Customized Content Leaders Teaching Leaders
Curriculum Delivery
3 4 5
1 63 4 52
2 6
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Leadership Development Maturity Model™
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Level 1
Key Attributes • Senior management is not involved • A catalog of courses, no development process • Managers have to figure out what to do on their own • Perceived as a benefit to the employee
Strategic Leadership Development Championed by Executives, Talent Management integration
Focused Leadership Development Culture setting, Future focused, Developing organization
Structured Leadership Training Core competencies, Well defined curriculum, Developing individuals
Inconsistent Management Training Content available, No development process, Benefit to employees
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Level 2
Key Attributes • Well defined curriculum for different levels • Senior management supports concept • Core leadership competencies are defined • Some blended learning applied • Individual leaders are developed
Strategic Leadership Development Championed by Executives, Talent Management integration
Focused Leadership Development Culture setting, Future focused, Developing organization
Structured Leadership Training Core competencies, Well defined curriculum, Developing individuals
Inconsistent Management Training Content available, No development process, Benefit to employees
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Level 3
Key Attributes • Developing the organization • Senior management participates and promotes • Culture Setting • Aligned with business strategy • Future Looking
Strategic Leadership Development Championed by Executives, Talent Management integration
Focused Leadership Development Culture setting, Future focused, Developing organization
Structured Leadership Training Core competencies, Well defined curriculum, Developing individuals
Inconsistent Management Training Content available, No development process, Benefit to employees
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Level 4
Key Attributes • Senior management is highly engaged • Talent management integration • Comprehensive learning approach • Learning culture is engrained
Strategic Leadership Development Championed by Executives, Talent Management integration
Focused Leadership Development Culture setting, Future focused, Developing organization
Structured Leadership Training Core competencies, Well defined curriculum, Developing individuals
Inconsistent Management Training Content available, No development process, Benefit to employees
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Organizations Are Maturing Their LD
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Business Impact of Maturity Levels
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Business Impact By Maturity Level
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Moving Up the Maturity Model From Level 1 to Level 2
§ Develop a set of core leadership competencies
§ Gain senior management’s support of concept and resources
§ Start to build a learning and a leadership culture • Involve the managers of the leaders
• Allow leaders time away from work
Strategic Focused
Structured Inconsistent
§ Create programs that target all levels of leadership § Apply blended learning format
§ Evaluate programs to ensure they are meeting objectives
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From Level 2 to Level 3
§ Involve Senior Management in Promoting and Participating in Programs
§ Make programs relevant and teach to the competencies
§ Get the right people in the right programs
§ Hold people accountable for their own development
Moving Up the Maturity Model
§ Incorporate non-traditional learning activities into a blended learning solution
§ Allocate sufficient resources to develop and manage programs
Strategic Focused
Structured Inconsistent
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From Level 3 to Level 4
§ Involve Senior Management in leadership strategy
§ Align content with business strategy and develop leaders for the future
§ Hold leaders accountable for developing others
§ Integrate leadership development into overall talent management system
Moving Up the Maturity Model
Strategic Focused
Structured Inconsistent
§ Utilize performance management for development and for defining learning needs
§ Review Succession planning data at aggregate level
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A Summary View: Moving Up Levels With Bersin & Associates’ Clients’ Adaptations
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Current State Maturity Assessment
Effectiveness
On a scale of 1 – 4, how effective do you believe your organization’s leadership programs are at… (1 – not effective at all, 4 – very effective)
1. Driving improved business results through leadership skills? 2. Increasing the quality and bench strength of the company’s leadership pipeline? 3. Increasing the engagement, retention and teamwork of the leaders themselves? 4. Improving overall employee retention through increased leadership skills and behaviors?
Self-Assessment
Select one that most closely characterizes leadership development in your organization. 1. Inconsistent Management Training - little or no management support, a catalog of courses with no formal development process, managers on their own to develop themselves and others. 2. Structured Leadership Training - senior management supports concept, core set of competencies defined, programs developed for different levels of management, training is required of employees. 3. Focused Leadership Development - management promotes leadership development, programs align with business strategy, blended learning approach is applied, future focused. 4. Strategic Leadership Development - management champions leadership development, future leaders are developed, talent management processes are integrated, an engrained learning culture.
Challenges
What are the top 2 challenges your organization faces regarding leadership development? 1. Mobility of participants and time away from work 2. Getting the right people in the right classes 3. Leveraging technology 4. Evaluating courses or programs 5. Developing a leadership strategy 6. Alignment with business strategy 7. Unsatisfactory senior management support 8. Application of the learning back on the job 9. Holding people accountable for development
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Current State Maturity Assessment
Tailored Leadership
Competencies
• Does your company have defined leadership competencies? • How often are these competencies reviewed and updated? • Are your leadership programs closely aligned with these competencies?
All Levels of Leadership
• What is the targeted audience of your leadership development strategy – IC; First-level Managers; Mid-level Managers; Senior Managers; Executives?
• Are programs for each targeted level of the same quality?
Business Strategy
Alignment
• How does your organization ensure leadership development is aligned with business strategies and will meet changing business needs? Such as: Needs analysis; meetings with line managers; L&D business plan; program measures; executive reviews; balanced scorecard
Strong Executive
Engagement
• How would you best describe the level of senior management support for leadership development, including the CEO? In what ways do executives engage in or demonstrate their support for leadership?
• In what ways does senior leadership get engaged in the leadership strategy? Leadership development strategy?
Targeted Solutions
• Do your leadership programs include a blended learning strategy? • Do your leadership programs include a combination of knowledge acquisition, experiential or application, and
reinforcement mechanisms? • What kinds of delivery and learning mechanisms are applied to each leadership program?
Talent Management Integration
• Do you have a well-defined and communicated talent management strategy? • To what extent does your organization integrate leadership development with any of the following
talent management activities -- Performance Management; Succession Planning; Competency Management; Learning & Development; Recruiting; Compensation; Workforce Planning?
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Today’s LD Trends • Effective leadership development is critical for achievement of business
goals and is now being invested in more heavily than in past
• Leadership development requires the definition of a strong leadership strategy, not only the implementation of leadership development programs
• Leadership development is now targeting front line and mid level leader audiences, not just senior leaders and high potentials
• Select competencies and capabilities must be developed to skill up leaders for effective 21st century leaders
• Leadership development solutions are modernized
• Leadership must be globalized • Technology has an integral role in leadership development
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21st Century LD Competencies 2010-2011 research data
Core 21st Century • Integrity/Ethics – this is the foundation; you
must tell the truth and do the right thing • Visioning/Strategy – leaders need to point
the way and develop compelling plans • Results Focus – leaders must have a bias for
action and be relentless about getting things done
• Judgment - a great differentiator – it seems you either have it or you don’t
• Passion/Optimism – who doesn’t want to work for someone who exudes positive energy?
• Building the Team – great leaders hire and surround themselves with great talent
• People Development– people flock to leaders who have a reputation for growing talent
• Accountability - leaders have to accept and create a culture of accountability
• Innovation -- to think creatively while taking initiative and calculated risks; having vision beyond the immediate situation; exploring and integrating diverse perspectives and recognizing unexpected opportunities
• Agility -- visionary, collaborative, creative , and proactive learning from prior experiences that enable leaders to direct sustained success
• Global acumen --global business acumen, worldviews and perspectives, global people leadership and global business knowledge
• Emotional intelligence -- recognizes and understand emotions, manages personal, individual and team performance using such awareness
• Management of diverse (women and multi-generational) workforces -- how leaders perceive others and how those perceptions affect their interactions, communication, adaptability and change management
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High-Value Development Model
70% Stretch assignments Rotational assignments Cross-functional assignments Special assignments Action Learning
Experiential Learning from others
20% Mentoring Coaching 360s Leadership styles inventories
Feedback Assessments
10% Workshops Classes Seminars Conferences Courses
Formal classroom E-Learning
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Case in Point Targeted solutions – leveraging informal learning in a blended approach
Industry: Business services provider Employees: 19,000 Development Challenges: § Improve leaders’ orientation of client-centricity § Improve execution of client deliverables
The Solution: § Use a blended approach to leadership development leveraging e-learning, virtual
learning, coaching, action learning, assessments, action planning, online discussion forums, fireside chats with senior leaders, and to face-to-face workshops.
§ Deliver LD solutions that are timely based on leaders’ needs and organizational goals § Operate LD programs within budget
The Impact: § List here the %, # etc of improved bench strength, mid level promotes, etc.
Mercer
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Globalized LD
…thinking globally, acting locally
…thinking globally and acting globally
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The PayOff From Globalized LD
From McKinsey’s 2008 study: Why MultiNationals Struggle to Manage Talent
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10 Factors of Global Talent Management
Ensure global consistency in management practices Achieving cultural diversity Developing and managing global leaders Translating HR information into action Relocating work to locations with a good supply of talent Re-shaping corporate HR to effectively manage global talent Creating internal talent pools Managing overseas assignments Sourcing and recruiting global talent Responding to changes in the global talent market
From McKinsey’s 2008 study: Why MultiNationals Struggle to Manage Talent
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LD Enabled With Technology
• Understand how the intelligent use of new technologies can help your organization’s leaders to lead globally; • Recruit, develop and maintain a network of technically competent leaders who can manage systems around the world; • Know how to make and manage investments in new technologies; and, • Be positive role models in leading the use of new technology that provides a global view and enables global management of an organization’s talent.
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Case in Point: HP Leverages Technology for LD to Create…
• More learner-driven development methods;
• On-demand access to global leader development resources at the time of need; and,
• More granular, development modules better aligned
with a global leaders’ work responsibilities.
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Differentiators What differentiates 2010-2011 companies to make them tops in leadership
§ They are investing more in leadership development – for all leader levels – than any other talent process;
§ They are defining and implementing a leadership strategy before implementing leadership development programs;
§ They are ensuring that their leadership competencies are business-driven and reflective of their global business needs;
§ Their leadership development solutions are designed around the 70-20-10 model with an unwavering commitment to global experiential
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Recipe for Success What the top leadership companies are doing to build great leaders and organizational capability • Define and implement a leadership strategy and a leadership
development strategy aligned with business strategy • Ensure that the selection and onboarding process aligns with the
development process all based on the same set of critical leadership competencies
• Select only a handful of leadership competencies that drive your business goals
• Define, identify, calibrate and develop high-potential talent • Implement a succession management and talent mobility process that is
transparent • Design leader development opportunities that are experiential and
embedded • Define and track metrics that define desired business and talent results
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www.bersin.com
High Impact LD for the 21st Century § Best Practices § Actionable Steps to Move
Up Maturity Model § 21st Century LD Trends § Business Impact
Published just last month!
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What Else and What’s Next
§ Leadership Development Curriculum Model Report – April 2011
§ Leadership Development Framework Report– November 2011
§ How to Develop a Leadership Development Strategy --4Q 2011
§ High-Impact Leadership Development Experiences – 4Q 2011 § High-Potential Leader Strategy – 1Q 2012
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Q & A
Barb Arth Senior Analyst
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