Global Leadership Forecast 2011 Delaware SHRM April 10, 2012 The Talent Management Expert.

Global Leadership

Forecast 2011Delaware SHRMApril 10, 2012

The Talent Management Expert

Leadership Development Effectiveness 34%

2011 29%2009

33%2006

HR

LeadershipQuality

37%

2009

38%

2011

25%HR

18%Future Bench Strength

HR

Leadership Quality Impacts…

Confidenceof Future Business Success

4%

66%

Low Leadership Quality

High Leadership Quality

Retention 24%

70%



Engagement9%

50%



The bottom line52%

13%

Financial performance 2.8x

Customer satisfaction 4.6x

Productivity 4.7x

Quality of services 4.4x



Passion7%

53%



Performance:Top vs. Average

50%better

Time for a (R)evolution!

About the Global

Leadership Forecast

1,897 HR Professionals

12,423 Leaders

2,679 Organizations

74 Countries

Enhanced Business

Impact

Quality of

Leadership

Enhanced People

Outcomes

Talent Systems & Practices

Leadership Development

Management Culture

Development Matters



Management Culture

EffectiveDevelopment =

Quality Leadership 13%

62%

Low Development Effectiveness

High Development Effectiveness

Leadership Development:What works today, may

not work tomorrow

Top Five Past

Critical Skills

1. Driving & managing change

2. Executing organizational strategy

3. Coaching & developing others

4. Making difficult decisions

5. Improving employee engagement

Top FiveFuture

Critical Skills

1. Driving & managing change

2. Identifying/developing future talent

3. Fostering creativity & innovation

4. Coaching & developing others

5. Executing organizational strategy

Leadership Skill Effectiveness:

50 / 50 Value Proposition

“Our CEO coined how we need to think about innovation. He said, ‘I’d rather be 8 and 2 than 2 and 0 in terms of willingness

to try out something new’”.

Innovation Important

95%

90%

89%

72%

Budget Increases

80%

82%

73%

49%

Up The Value Chain

Boston Consulting Group 2010

(R)Evolution Point 1A Leaders Role in Innovation

Lack of Understanding Stakeholders

Aversion to Risk

Failure to Execute

Innovation Challenges Culture of Innovation

Think Differently

Question Assumptions

Get Things Done

Experiment

Team Members

Lackluster Ideas

The Leader’s Role in Innovation

Inspire Curiosity

Drive Discipline

Leader

Challenge Current Perspectives

Create Freedom

Formal classroom training

Special projects or assignments

Coaching from your manager

Moving positions

Coaching from internal coaches

Web-based learning

Coaching from external coaches

Virtual classroom

Effectiveness of Development Methods

Organizations that have effective programs use

more methods.32%

HR

(R)Evolution Point 2Learning: From Event to Journey

10~20~70FORMAL COACHING ON-THE-JOB

= Assessments, Targeted Personal Development Focus

OrientationKick Off

Coaching

Fo

rmal

Lea

rnin

g

April-June July-September October-December January-March

Action Learning

Ongoing Feedback and Support

Core Curriculum 3Building High-Performing

TeamsDriving Innovation

Supporting Leadership Development

2 days

Action Learning

Action Learning

Coaching Coaching

•Assessment: 360 and personality Inventories

•Prework•Action Learning

Kickoff

DevelopmentPlanningMeetings

(DDI Coach, Boss, Mentor)

Repeat 360 to Assess

Behavior Change

DevelopmentPlanningMeetings

(DDI Coach, Boss, Mentor)

= Core Curriculum= Action Learning

& Ongoing Development

Job Growth Experiences

Info

rmal

Le

arn

ing

, Fe

edb

ack

, an

d

On

-th

e-jo

b E

xpe

rien

ce

= Learning 2.0 components

Manager/Sr. Leader Kick-Off

Webinar

Leader Blog: What leadership means to participant, how they

will use new skills

Wikis: Tying leadership skills to business outcomes – how do they link together?

Discussion Board: Participants seek feedback from BU leaders on ideas,

best practices

Learning Mash-Up

Core Curriculum 1Challenges of

Transitions

Mastering EQ

Influencing

Courage3 days

Core Curriculum 2Cultivating Networks &

Partnerships

Making Change Happen

Learning through Transitions

3 days

Talent Management Matters


Management Culture


Firing on all cylinders

Leadership Succession 77%

Performance Management 77%

Leadership Selection 79%

22%

42%

31%

30%

33%

31%

Programs & learning for mid-level leaders 76%

Programs & learning for senior leaders 74%

Programs & learning for frontline leaders 68%

Future Importance

Current Effectiveness

HR

Development Can’t Fix Everything

Low• Arrogance

• Inquisitive

• Ambitious

• Volatile

• Learning Orientation

• Results Driven

Moderate• Risk-taker• Letting go• Making

sounddecisions

High• Customer

focus• Developing

strong teams• Executing

strategy• Building

future talent• Communicating

with impact

Select Develop

Hiring Failures:

1 in 3 72%

63%

28%

37%External

Internal

Success Failure

HR

81% Tied to corporate goals

69% Balanced between “whats” and “hows”

56% Discussions provide clear direction for development

Performance Management

Succession 18%Rate Bench Strength Strong

HR

64% of leaders made a leadership transition in the past 5 years

26% of organizations have effective programs

to ensure smooth leadership transitions

BUT ONLY

(R)evolution Point 3Get it Right: Identifying Potential

There’s a Difference

Performance

Potential

Readiness

How one is performingnow in current role

One’s likelihood of leadership growth

One’s fit with a specific role, job or job family

LeadershipPotential

50%39%44%

37%

Identification of High Potentials

Growth of High Potentials

2009

2011

HR

Best Practices

88%

87%

60%

48%

46%

43%

Organizations with effective talent management systems

Organizations with ineffective talent management systems

19%

19%

13%

8%

3%

3%

HR

Talent Systems & Practices Culture Matters


Management Culture

“Right now, your company has 21st century Internet-enabled business processes, mid-20th-century management processes, all built atop 19th-century management principles.”

Gary Hamel

Management Culture Killers

• Bureaucracy of management processes

• Values that are not meaningful

• Influence based on position power

• Innovation opportunities for select few

• Decisions are held closely by those in power

• Rigid structure

• Power held by those who value status quo

• Goals only focus on bottom-line growth

Culture Impacts

Passion 29%57%

81%

Low effectiveness of management culture

Medium effectiveness of management culture

High effectiveness of management culture

17%31%

51%

Culture Impacts The bottom line

Low effectiveness

of management culture

Medium effectiveness


High effectiveness


(R)evolution Point 4Innovating the Way We Manage

Management Culture

Revolutionized

• Management processes are a competitive advantage

• Values are shared and meaningful

• Merit-based influence

• Innovation opportunities for all

• Strategic decisions open for discussion

• Flexible, nimble structure

• Power held by those who value innovation

• Goals of growth, sustainability, and social significance

Reflection

Enhanced Business

Impact

Quality of

Leadership

Enhanced People

Outcomes



Management Culture

68th Percentile Leadership Development Talent Management Management Culture



The Bottom Line

NO!from

GO!to

Global Leadership Forecast 2011 Delaware SHRM April 10, 2012 The Talent Management Expert.

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