Leadership Impacts the Bottom Line...Is leadership development a key component of your overall...
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Transcript of Leadership Impacts the Bottom Line...Is leadership development a key component of your overall...
Discover Truth. Get Coached. Lead Powerfully.
www.ArsethInsights.com
Leadership Impacts the Bottom Line ...Is leadership development a key component of your overall strategy?
Discover Truth. Get Coached. Lead Powerfully.
www.ArsethInsights.com
The impact of a leader can’t be underestimated
“Apple stock recovers from initial shock of Steve Jobs resignation”~ Huffington Post Headline
02
Discover Truth. Get Coached. Lead Powerfully.
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03Could your company’s leaders be holding you back?
A conclusive link exists between a company’s leadership practices and enhanced financial returns.
Hewitt 2002
Discover Truth. Get Coached. Lead Powerfully.
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04Leadership impacts employee productivity
There is a statistically significant correlation between high-performance work practices and intermediate employee outcomes such as turnover, productivity, and overall corporate financial performance.
Huselid, M., A. (1995). The Impact of Human Resource Management Practices on
Turnover, Productivity, and Corporate Financial Performance. Academy of
Management Journal. Volume 3 8 Number 3 , pp. 635 -672.
Discover Truth. Get Coached. Lead Powerfully.
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05Leadership impacts employee turnover
People leave organizations for a variety of reasons closely related to leadership competencies including:
1. Lack of respect from or support of supervisor (13%)
2. Supervisor’s lack of leadership skills (9%)
3. Poor employee relations with a supervisor (4%)
4. Lack of recognition (4%)
5. Supervisor incompetence (2%)
Saratoga Institute
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06
Leadership practices which lead to higher employee satisfaction scores translated into higher customer satisfaction scores, and subsequently into bottom line impact.
Leadership impacts customer satisfaction
Harvard Business Review “The Employee-Customer-Profit Chain at Sears”
Anthony Rucci, Steven Kirn, and Richard Quinn
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07
Organizations who prioritize leadership development realize more impact on their business
more effective at raising
quality and bench strength of
their leadership pipeline
84% increase in employee retention73%
increase in leaders’ ability
to engage and work
collaboratively
67% improvement in
business results66%
Bottom line - leadership development pays
High-Impact Leadership Development, Bersin & Associates, 2008
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08
Engage and Inspire Constantly evaluate
performance and strategy
Develop long-range
course of actionRecruit, Develop, Retain
The job of a leader
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09
Reaching across mediums and
geographies
Handling uncertainty and reacting
quickly to new opportunities
Fostering a climate
of innovation
Collaborating across boundaries
In addition, the new skill set for leaders includes:
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10Effective leadership now requires interdependence
The role of the single heroic leader is no longer effective
Increased complexity, uncertainty, speed of
technology, innovation, and breadth of scope,
all with a global emphasis, requires a different
approach
It’s more and more difficult for leaders to solve these
complex challenges with their own resources
HBR Panel 2010, CCL white paper 2009, DDI white paper 2008
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11Interdependence, as the new norm, creates a need for different leadership skills
Managing across
horizontal boundaries• 71% of executive leaders see
managing through silos, turf battles,
and matrix management as the
biggest challenge in this new
environment
• 86% of senior executives said
collaborating across boundaries is
extremely important, only 7% said
they did it effectively
Driving innovation across
the organization• When asked about the top 10 trends
to impact organizational strategy over
the next 5 years, the drive for
innovation was number one (92%)
• There is a direct correlation ...
integrating expertise and experience
across all functions is a powerful route
to innovation
CCL Survey, 2009
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12
Leadership can be developed
Discover Truth. Get Coached. Lead Powerfully.
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13Developing leadership talent for the future
Start at the top Senior management defines what is needed
Assess
Strategy Development
Monitor & Measure
Reward
Evaluate the current talent pool
Develop a strategy to fill gaps and prepare for opportunities
Assess progress and individuals frequently
Differentiate compensation to reward leadership
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Demand Pull Demands of the job
pull the leader to
develop new skills
Learning ExperiencesMost impactful include:
On-the-Job (70%)
Relationships (20%)
Classes & Training (10%)
BalanceBuild capabilities for
new ways of working with a
balance between individual
competencies and the
collective capabilities
of teams
Variety & ChallengeSuccessful leaders
have a variety of specific
and challenging work
and disorienting
experiences
PrioritizeThe right
experiences to
those most likely
to advance and
mission -critical
employees
14
Strategy All leadership
development activities
should align with
company strategy
Key principles of leadership development
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15The most impactful leadership development experiences
TOP
101. Empowered decision-making
2. Customized development plans
3. Robust feedback
4. Skill training in people management
5. Work in a new line of business
6. Peer interaction and learning
7. Sessions with an executive coach
8. Lead high-quality direct reports
9. 360 feedback
10. Turn around a struggling business
CLC 2001
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16Getting to yes – gaining the support of management
Provide data to support a change in approach• Share statistics, research, or case studies that substantiate your recommendation
• Quantify the implications if no action is taken
• Conclude with ROI
Present recommendations in light of the business strategy and challenges• Talk their language
• Explain how your recommendations advance the company strategy
• Articulate why this is the right time
Make it easy to say yes• Start small by using pilots
• Minimize cost by doing what you can internally and focusing on critical components
• Build credibility through a grass roots approach
• Introduce solutions whenever possible that support a more comprehensive strategy
Have a clear call to action• Make it clear what you want them to do
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17www.arsethinsights.com
Thank You !
Suzann ArsethExecutive Coach
To learn more about executive coaching and leadership development, contact Suzann for a complimentary consultation