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%
Low Leadership Quality
High Leadership Quality
Engagement9%
50%
Low Leadership Quality
High Leadership Quality
The bottom line52%
13%
Financial performance 2.8xCustomer satisfaction 4.6xProductivity 4.7xQuality of services 4.4x
Low Leadership Quality
High Leadership Quality
Passion7%
53%
Low Leadership Quality
High Leadership Quality
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
Leadership Development
Talent Systems & Practices
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 change2. Executing organizational strategy3. Coaching & developing others4. Making difficult decisions5. Improving employee engagement
Top FiveFuture
Critical Skills
1. Driving & managing change2. Identifying/developing future talent3. Fostering creativity & innovation4. Coaching & developing others5. 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
Form
al L
earn
ing
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
Lea
rnin
g, F
eedb
ack,
and
On-
the-
job
Expe
rienc
e
= 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
TransitionsMastering EQ
InfluencingCourage3 days
Core Curriculum 2Cultivating Networks &
PartnershipsMaking Change Happen
Learning through Transitions
3 days
Talent Management Matters
Leadership Development
Management Culture
Talent Systems & Practices
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
Leadership Development
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
of management culture
High effectiveness
of management culture
(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
Talent Systems & Practices
Leadership Development
Management Culture
68th Percentile Leadership Development Talent Management Management Culture
35th Percentile Leadership Development Talent Management Management Culture
24th Percentile Leadership Development Talent Management Management Culture
The Bottom Line
NO!from
GO!to