Making the Business Case for Building Effective Business Leaders
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Making the Business Case for Building Effective Business Leaders Jennifer McClure President, Unbridled Talent LLC @JenniferMcClure #SHRM14
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Great leaders can turn underperforming companies into success stories and revive businesses from the edge of extinction; however poor leaders can ruin even the best business plan. The most successful businesses return significant value to shareholders by developing a proven ability to effectively identify and develop successful leaders at all levels of the organization. In this presentation, Jennifer McClure (President of Unbridled Talent LLC) will help you understand how to create and sell a business case for an effective internal Leadership Development Program that will help your organization achieve optimum business results.
Transcript of Making the Business Case for Building Effective Business Leaders
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!
