Developing Leaders Beyond the Boardroom

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

Strategic Talent Management 1

Developing Leaders Beyond the Boardroom

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

Strategic Talent Management 2

Today’s Presenters

Anita Bowness Solutions Consultant

Halogen Software

Catherine Cormier Product Manager Halogen Software

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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What we’ll cover …

• Leadership investments

• Leadership outside of the boardroom

• HR’s evolving role in developing leaders

• Development as an element in succession planning

• How to leverage a talent management solution to help

• Questions and answers

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Poll

What is the state of your organization’s bench strength?

• We have individuals identified and ready to fill critical leadership and frontline manager roles, should the need arise

• We have identified individuals that have potential, but we aren’t really developing them as leaders

• We’re not sure what potential exists within the organization to fill key roles

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Investing in Leadership

Organizations worldwide spend $50 billion to develop leaders, yet only…

15% Of organizations have the supply and quality of

leaders to meet future business goals

46% Of critical leadership positions have ready-now

back-ups

1 in 4 HR professionals gives high marks to current

leaders in their organizations

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The disconnect

86% Of global HR & business leaders cite leadership as a top issue

Source: Global Human Capital Trends 2015. Leading in the new world of work. Bersin by Deloitte. Deloitte University Press.

6% Of organizations believe their leadership pipeline is ‘very ready’

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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What happens when organizations get leader development…

Right

• 20% Higher than average leadership quality and bench strength

• 26% More critical positions can be filled immediately

• 2.3 Times more likely to outperform other companies on financial metrics

Wrong

• 67% Lower than average leadership quality and bench strength

• 21% Fewer critical positions can be filled immediately

Source: Ready-Now Leaders: Meeting Tomorrow’s Business Challenges. Global Leadership Forecast 2014 l 2015

(The Conference Board, DDI)

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A generational shift

10K Boomers will enter retirement EVERY DAY for the next decade!

Millennials make up more than half the workforce

Source: Bersin by Deloitte. Global Human Capital Trends 2015. Leading in the new world of work. 2015

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Effective frontline managers

Source: Harvard Business Review: 2013. Frontline Managers: Are They Given the Leadership Tools to Succeed?

“Managers on the front line are critical to sustaining quality, service,

innovation, and financial performance.” Linda A. Hill

Wallace Brett Donham Professor of Business Administration Harvard Business School

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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The importance of frontline managers

70%

73%

76%

77%

78%

Contributing to effective communications

Achieving a high level of employee engagement

Achieving high levels of productivity

Helping your organization reach its business goals

Achieving a high level of customer satisfaction

Source: Harvard Business Review: 2013. Frontline Managers: Are They Give the Leadership Tools to Succeed?

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Frontline managers – Low marks on business competencies

19%

20%

21%

21%

27%

33%

Inspirational leadership

Developing talent

Innovative thinking

Strategic thinking

Organizational savvy/judgment

Business-based decision-making

Source: Harvard Business Review: 2013. Frontline Managers: Are They Give the Leadership Tools to Succeed?

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Retention of high-performing and high-potential employees

• Top performer differential is 2.5 - 10 x that of an average employee*

• “Superstars” produce up to 12 x more than an average employee**

• Cost of replacing a key role is 1.5 x burdened salary***

• Cost / day of operating without a key player in a strategic role is as high as $7,000 / day****

Source: *Sullivan, 2008. **Corporate Executive Board. ***HCI Research, 2008. ****Sullivan, 2005.

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Growing your own leaders pays off

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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HR’s evolving role

Source: Ready-Now Leaders: Meeting Tomorrow’s Business Challenges. Global Leadership Forecast 2014 l 2015 (The Conference Board, DDI)

How do HR professionals contribute to business?

18% Anticipator

Uses data to predict talent gaps in advance; provides insights about how talent relates to business goals.

60% Partner

Openly exchanges information with the business about current issues; collaboratively works towards mutual goals.

22% Reactor

Ensures compliance with policies/practices; responds to business needs by providing tools/systems when asked.

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Raise the bar

Link expectations to strategy

Define leadership competencies

Establish leadership competencies as foundation

Give feedback to leaders

Use a systematic process

Have highly effective development plans

Regularly review leadership development plans

Employ formal programs to ensure smooth leadership transition

Source: DDI Global Leadership Forecast 2014|2015

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Leadership development as part of succession planning…

Identification

Assessment

Development

Management

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Identification

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Dimension 1: identification

Identification of succession planning needs, linking needs to goals, and linking goals to strategic vision

Identification

Average Rating:

49% (FAIL)

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Dimension 1: identification Identification

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Identification

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Identification

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Dimension 1: identification Identification

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Assessment

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Assessment

Using the identification elements to assess needs and individual/department promotion potential

Average Rating:

47% (FAIL)

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Assessment

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Assessment

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Assessment

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Assessment

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Development

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Development

Working with individuals to shrink the development gaps, and moving forward to help each area develop talent pools

Average Rating:

49% (FAIL)

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What motivates employees

Source: DDI Global Leadership Forecast 2014|2015

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Development

Develop a plan for closing development gaps

Goal

Formal

Informal

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1:1 Exchange

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Development plan report

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Prepare for future responsibility

Use feedback tools for ongoing input

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Strategic Talent Management 36

Prepare for future responsibility

Offer job aids to reinforce new skills

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Provide great coaching and management tools

Prepare for future responsibility

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Strategic Talent Management 38

Measurement

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Management

Actively keeping senior management, department-level management, and individuals appraised of progress; encouraging participation in succession planning programming; and evaluating the program and responding to needed changes

Average Rating:

47% (FAIL)

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Management

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Management

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Management

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Identification Assessment

Development Management

Achieving your goals

Your workforce is your organization’s only sustainable competitive advantage and the

most critical means to achieve your company’s strategic goals

strategy

goals

workforce

development analysis

repeat

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© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

Poll

How may we follow up with you after today’s webcast?

• I’d like a free trial or personalized demo of Halogen TalentSpace™

• Please send me more information on Halogen TalentSpace™

• No information required, thanks

© Development Dimensions Int’l Inc., 2015. All rights reserved.

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© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

Questions?

Anita Bowness Solutions Consultant

Halogen Software

Catherine Cormier Product Manager Halogen Software

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Download your own copy …

www.halogensoftware.com/learn

© 2014 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

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Contact Information

Julie Harrison

Product Marketing Manager

jharrison@halogensoftware.com

Anita Bowness

Solutions Consultant

abowness@halogensoftware.com

Catherine Cormier

Product Manager

ccormier@halogensoftware.com

Thank You!