Post on 02-Sep-2018
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The bottom line 52%
13%
Financial performance 2.8x
Customer satisfaction 4.6x
Productivity 4.7x
Quality of services 4.4x
Low Leadership Quality
High Leadership Quality
Cost of Leadership Performance
AVERAGE HIGH LOW
1 Leader
X 10 Direct Reports
X $170,000
Revenue Per EE
$1.7 million
If the difference between
an average leader and top-
performing leader is 50%
$2.6 million
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
Effective Development =
Quality Leadership 13%
62%
Low Development Effectiveness
High Development Effectiveness
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
1. Driving & managing change
2. Identifying/developing future talent
3. Fostering creativity & innovation
4. Coaching & developing others
5. Executing organizational strategy
Top Five Future
Critical Skills
Top Five Future
Critical Skills
1. Driving & managing change
2. Identifying/developing future talent
3. Fostering creativity & innovation
4. Coaching & developing others
5. Executing organizational strategy
“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
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
Leadership Development
Methods
• Formal classroom training
• Special projects
• Coaching from your manager
• Moving positions
• Coaching from internal coaches
• Web-based, self-study learning
• Coaching from external coaches
• Virtual classroom
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
= Assessments, Targeted Personal
Development Focus
Orientation Kick Off
Coaching
Fo
rma
l L
ea
rnin
g
April-June July-September October-December January-March
Action Learning
Ongoing Feedback and Support
Core Curriculum 3
Building High-Performing Teams
Driving Innovation
Supporting Leadership Development
2 days
Action Learning
Action Learning
Coaching
Coaching
•Assessment: 360 and personality Inventories
•Prework
•Action Learning Kickoff
Development Planning Meetings
(DDI Coach, Boss, Mentor)
Repeat 360 to Assess Behavior Change
Development Planning Meetings
(DDI Coach, Boss, Mentor)
= Core Curriculum = Action Learning
& Ongoing Development
Job Growth Experiences
Info
rma
l L
ea
rnin
g,
Fee
db
ac
k, a
nd
On
-th
e-j
ob
Ex
peri
en
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 1
Challenges of Transitions
Mastering EQ
Influencing
Courage
3 days
Core Curriculum 2
Cultivating Networks & Partnerships
Making Change Happen
Learning through Transitions
3 days
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
sound
decisions
High
• Customer
focus
• Developing
strong teams
• Executing
strategy
• Building
future talent
• Communicating
with impact
Select Develop
81% Tied to corporate goals
69% Balanced between
“whats” and “hows”
56% Discussions provide
clear direction for
development
Performance Management
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
There’s a Difference
Performance
Potential
Readiness
How one is performing now in current role
One’s likelihood of leadership growth
One’s fit with a specific role, job or job family
Leadership Potential
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
“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
Management Culture Killers
61%
54%
Decisions are held closely by those in power
Organizations are siloed, rigid, hierarchical
44%
43%
41%
38%
37%
32%
Bureaucracy of management processes
Innovation opportunities for select few
Goals only focus on bottom-line growth
Power to those who value status quo
Influence based on position power
Values that are not meaningful
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
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