Praise for Linkage Inc.’s Best Practices in Leadership Development Handbook

“This book has captured high-impact, state-of-the-art approaches to developing leaders and provides innovative, new ideas that leadership development professionals can immediately put to use.”—TIM FIDLER, worldwide director, Global Education and Training,Colgate-Palmolive Company

“This book captures some of the most unique and fascinating best-practices out there. The book provides an incredible variety of examples to learn from and shares great perspectives to help you adapt those learnings to your own leadership development efforts.”—ALBERT A. VICERE, president, Vicere Associates, Inc.; Executive Education Professor of Strategic Leadership, Smeal College of Business,The Pennsylvania State University

BEST PRACTICES BEST PRACTICES inin LEADERSHIP LEADERSHIP DEVELOPMENTDEVELOPMENTHANDBOOKHANDBOOK

Essential resources for training and HR professionals

Li nk age Inc .’s

C A S E S T U D I E S

I N S T R U M E N T S

T R A I N I N G

S E C O N D E D I T I O N

DAVID GIBER • SAMUEL M. LAM • MARSHALL GOLDSMITH • JUSTIN BOURKE

E D I T O R S

An Essential Knowledge Resource

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CASE STUDIES

INSTRUMENTS

TRAINING

LINKAGE INC.’S BEST

PRACTICES IN LEADERSHIP

DEVELOPMENT HANDBOOK

WHEN THE FIRST EDITION OF LINKAGE INC.’S BEST

Practices in Leadership Development Handbook was published

in 1999, it immediately became a popular resource for

anyone charged with leading or executing leadership

development initiatives.

The second edition of the bestselling handbook has been

updated to build on the previous edition with a synopsis

of the latest changes in the fi eld of leadership development.

This includes new benchmark case studies from the world’s

foremost companies; a wealth of proven guidelines, tools,

and models; and a presentation of the latest theories on

leadership.

This volume also puts the emphasis on “signature

experiences”—those initiatives that create a unique and

memorable impact on individuals, teams, and eventually the

organization. Filled with real-life examples from industry

leaders such as Bank of America, Dell, Macy’s, and McKesson,

these signature experiences show how it is possible to

create positive learning and behavioral change in any

organization.

The second edition of Linkage Inc.’s Best Practices in

Leadership Development Handbook outlines a six-phase

approach to leadership development, including new

information on vital topics such as:

Innovations in leadership models•

Product development•

Work team development•

Return-on-investment calculations•

Continuous assessment and• evaluation metrics

Managing knowledge•

Creating an integrated system •

Practical uses of leadership development • in a global workforce

With contributions from some of the most important

thought leaders in leadership development, this volume

offers a resource for designing, delivering, and evaluating

successful leadership development programs.

David Giber is a senior vice president at Linkage Inc. and designs leadership programs for organizations world wide.

Samuel M. Lam is the president of Linkage Asia.

Marshall Goldsmith is a prominent coach, speaker, and educator.

Justin Bourke is a program manager at Linkage.

Linkage Inc. is a global organizational development company that specializes in leadership development. We provide clients around the globe with integrated solutions that include strategic consulting services, customized leadership development and training experiences, tailored assessment services, and benchmark research. Linkage’s mission is to connect high performing leaders and organizations to the futures they want to create.

SECOND EDIT ION

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www.pfeiff er.comJoin Us atPfeiffer.com LEADERSHIPUSA $29.95 | Canada $30.95

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LINKAGE INC.’S BEST PRACTICES IN LEADERSHIP DEVELOPMENT HANDBOOK

Second Edition

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Join Us atPfeiffer.com

Register at www.pfeiffer.com/emailfor more information on our publications,authors, and to receive special offers.

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LINKAGE INC.’S BEST PRACTICES IN LEADERSHIP DEVELOPMENT HANDBOOK

Second Edition

Case Studies • Instruments • Training

EDITORS

David GiberSam LamMarshall GoldsmithJustin Bourke

Foreword by Warren Bennis

Y

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Copyright © 2009 by Linkage Inc. All rights reserved.

Published by PfeifferAn Imprint of Wiley989 Market Street, San Francisco, CA 94103-1741www.pfeiffer.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose. No war-ranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Readers should be aware that Internet websites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.

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Pfeiffer books and products are available through most bookstores. To contact Pfeiffer directly call our Customer Care Department within the U.S. at 800-274-4434, outside the U.S. at 317-572-3985, fax 317-572-4002, or visit www.pfeiffer.com.

Pfeiffer also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Acquiring Editor: Matthew DavisMarketing Manager: Brian GrimmProduction Editor: Mary Garrett/Susan GeraghtyEditorial Assistant: Lindsay MortonManufacturing Supervisor: Becky Morgan

Library of Congress Cataloging-in-Publication Data Linkage Inc.’s best practices in leadership development handbook: case studies, instruments, training / David Giber . . . [et al.], editors. — 2nd ed. p. cm. Includes bibliographical references and index. ISBN 978-0-470-19567-3 (cloth) 1. Leadership—Case studies. 2. Strategic planning—Case studies. I. Giber, David J. II. Linkage Inc. III. Title: Best practices in leadership development handbook. HD57.7.L564 2009 658.4'092—dc22 2008041910Printed in the United States of AmericaSECOND EDITION

HB Printing 10 9 8 7 6 5 4 3 2 1

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v

CONTENTS

Figures, Tables, and Exhibits vii

Foreword xiWarren Bennis

Introduction xvDavid Giber

PART ONE: DEFINING LEADERSHIP DEVELOPMENT 1

1 Context, Culture, and Complexities: Best Practices Versus Best Fit 3

2 Helping People Achieve Their Goals 21

3 Assessing the Leader 30

4 Leadership Development and Organizational Strategy 56

5 Developing the Innovative Leader 78

6 Developing Leaders in a Global Landscape 97

7 Investing in Women: Why It Is Critical for Companies in the Twenty-First Century 140

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PART TWO: BEST PRACTICES IN LEADERSHIP DEVELOPMENT 169

8 McKesson 171

9 Yahoo! 193

10 Johnson & Johnson 209

11 Cisco: Collaborative Leadership 231

12 Department of Treasury and Finance, Victoria, Australia: Creating High-Performing Teams 247

13 Macy’s 277

14 Bank of America: Executive On-Boarding 298

15 Humana: Advancing Strategy and Building Culture Through Leadership Development 315

16 Dell 336

17 Land O’Lakes: Leadership Edge Case Study 365

18 PricewaterhouseCoopers: A Global Leadership Development Program for High-Potential Staff 389

Appendix: Global Survey—How Organizations Practice Leadership 413

Sources 433

Index 439

About the Editors 451

About Linkage Inc. 455

vi Contents

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vii

FIGURES, TABLES, AND EXHIBITS

Figures 1.1 Aligning Leadership Development with Strategic HR

Components 5 1.2 Leadership Development Tools and Processes 13 4.1 Strategy: Moving from Current Reality to Desired Destination 58 4.2 Leaders as Strategic Architects, Translators, and Doers 59 6.1 The 4E’s Framework 126 6.2 The Role of Leadership in the 4E’s Framework 128 7.1 Steps in the Behavioral Coaching Process 153 7.2 Sample Development Plan 154 7.3 360-Degree Data on Leader Self-Perception 161 8.1 McKesson Leadership Development Path 176 8.2 Answers to Questions on Project Goal and Personal Targets 18612.1 Executive Team Development Program 25312.2 A Model of High-Performing Teams 25412.3 Team Iceberg 25912.4 Team Performance Curve 25912.5 Styles of Interaction 260

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12.6 Comparison of Staff and Executive Team Members’ Ratings of Team Capability 266

13.1 The Leadership Choice Model 28015.1 Learning Consortium Model: The Networked

Organizational Structure 32015.2 Leadership Development Compass 32315.3 Real World Work Sessions to Date 33015.4 Executive Coaching Cycle for Women in Leadership 33116.1 The Three Levels of Solutions to Leadership Development 34216.2 Strategic Contributions of Dell Leaders 34616.3 Global Leadership Curriculum 34816.4 Coach Satisfaction Survey to Date (N � 204) 35716.5 Coach Effectiveness Ratings 35817.1 The High Potential Leadership Development

Action Learning Process 37217.2 The Alignment Model 37617.3 Land O’Lakes High Potential Leadership

Development Action Learning Process 37918.1 Program Learning Objectives 401 A.1 Effectiveness of Organizational Leadership

Development Efforts 414 A.2 Age of Organizational Leadership Development Systems 415 A.3 CEO Involvement in Leadership Development 416 A.4 Budget Allocated Toward Leadership Development 417 A.5 Populations Targeted by Leadership Development 418 A.6 Areas of Greatest Profi ciency 419 A.7 Areas Requiring the Most Signifi cant Improvement 419 A.8 Participation in External Leadership Development Programs 421 A.9 Most Widely Recognized Leadership Competencies 422A.10 Frequency of Formal High-Potential Selection Systems 423A.11 Rate of Status Disclosure Among High-Potential Populations 424A.12 Importance of 360-Degree Feedback in Training Initiatives 425A.13 Most Widely Used Leadership Development Methodologies 427A.14 Most Underused Leadership Development Methodologies 428

viii Figures, Tables, and Exhibits

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Tables 1.1 Learning Experiences for Leadership Development 14 1.2 Rating Talent Management Tools and Processes 16 1.3 Rating Leadership Development Tools and Activities 17 1.4 Rating Performance Management Tools and Processes 18 5.1 Eight Ways to Organize to Innovate 85 6.1 The Global Leadership Framework 133 8.1 LTL Program Time Line of Events, 2007–2008 17913.1 A Store Manager’s Plan for Improving the Work Environment 29013.2 Leadership Choice Program Summary 29113.3 Merchant Leadership Development Program Study Summary 29317.1 Leadership Edge Agenda 37317.2 Action Learning Team Charter Example 37817.3 Leadership Edge Evaluation Results (Number of Responses) 381

Exhibits12.1 Department of Treasury and Finance Aspiration Statement 26912.2 Refl ection and Development Planning Tool 27012.3 Pulse Questionnaire 27112.4 Team Process Observation Guide 27514.1 Sections of the Written On-Boarding Plan 312

Figures, Tables, and Exhibits ix

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xi

FOREWORD

Warren Bennis

Developing leaders is an important activity, but it is elusive and diffi cult to pull off. In almost every aspect of the social sciences, “ develop-

ment ” is always the most challenging area, whether it is economic, human, political, or psychological. Development means that things are always mov-ing and evolving. We ’ ve come so far in leadership development, but there is still much to learn and so many possibilities. When I was coming up in this fi eld, I remember my mentor, Douglas MacGregor, would say that organizations are transitive. His point was that one job would prepare you for the transition to the next. I believe that these wise remarks were well placed at the time, but perhaps not so anymore in the current structure of more complex organizations and niche roles.

Today, being in job A may not only fail to prepare you for job B but may eventually lead to stagnancy and possible regression in the less spe-cifi c, more universal leadership competencies. In today ’ s world, real lead-ership is getting you ready for anything. The fundamental challenge of leadership development at this time is how to create adaptive capacity. How do you teach people to be ready for anything? I believe that the leadership curriculum of the future needs to help people develop some broad generalist capabilities. Leaders may be anchored in one area they

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know really well, but they have to be able to integrate multiple perspec-tives. Here ’ s a simple example: I have worked with the great department store Nordstrom, which has been around for over a hundred years and realizes that its winning capability is customer service. But in that orga-nization today, understanding service is not enough. It needs leaders who can integrate customer service with merchandising and an understand-ing of how to create the products it offers. Being great at one part of the business is not enough. Many of the outstanding programs described in this book are trying to tackle this challenge of creating adaptive, integra-tive leaders.

Leadership development thinkers like George Hollenbeck and Morgan McCall have said that strategy has to drive the leadership quali-ties or competencies that an organization needs. I recognize that strat-egy may have to precede competencies so that the organization begins to recognize and reward leadership behavior aligned to its strategy. All of the programs in this book are strategic in this sense. But great leadership development still must be anchored in understanding individuals and the crucibles they encounter at work and in life. I am impressed with the work that I see from leadership practitioners in trying to address funda-mental individual human elements like the need for self - understanding, judgment, or confi dent decision making. How do leaders, and indeed all of us, understand our talents, and not only what we are good at but what we love doing? This is the most basic formula for leadership success, and when this is achieved, one fi nds that as the great baseball athlete Nolan Ryan said, “ Even on your bad days, you win. ” Helping people and orga-nizations unlock their strengths is the most exciting part of our fi eld. Understanding the ingredients of core human activities and strengths such as how to foster adaptive capacity, judgment, and decision making is where leadership development has room to grow.

For all of us in this fi eld, it is a balance. On the one hand, we need to recognize the limitations of our leadership development practices in terms of all the variables and complexity we cannot control. On the other hand, we need to keep our aspirations high. At the University of Southern California, where I teach, we have followed more than fi ve

xii Foreword

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hundred people from my honors course over the past thirteen years. Our data show that this one course helped people by infl uencing their world-view, it helped determine their choices and decisions, and for some, it affected their career trajectory. The multifaceted programs examined in this book are ones that can and do make a difference, though we may have to track people over the long term to see what affected them and why. They provide great examples of how far we have come and set the challenge of how far we have to go.

◆ ◆ ◆

Warren Bennis is a distinguished professor of business administration and founding chairman of the Leadership Institute at the University of Southern California. He has authored numerous books in the fi eld of leadership development, most recently Judgment: How Winning Leaders

Make Great Calls with Noel Tichy, and Transparency with Danny Goleman and James O ’ Toole.

Foreword xiii

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xv

INTRODUCTION

David Giber

In 2000 Louis Carter, Marshall Goldsmith, and I organized the case studies for the fi rst edition of Linkage Inc. ’ s Best Practices in Leadership Devel-

opment Handbook. It is useful to refl ect on what we found then as we reviewed the outstanding case studies and research captured in that book. First, we found that the most signifi cant differences between those examples could be derived from a general preference for one of the following: the indi-vidual, the team, or the organization and its strategy.

Analyzing the programs in this new edition, we found that many more of them had incorporated common program ingredients that have been proven widely and continuously since 2000. Many were using at least one or more element (for example, assessment or coaching) to have an impact on the individual, while at the same time using other ele-ments (action learning, simulations) to have an effect on teamwork. Most leadership programs seem to include many, if not all, of the elements of assessment, coaching or mentoring, action learning (even if it is more individually based), use of internal leaders as faculty, and a global per-spective. The elements are used systematically and more fl uidly. The ubiquitous nature of these elements meant we had to dig deeper to fi nd programs that we felt were unique and had high impact. We looked for

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xvi Introduction

programs that quite often contained all of the core components gleaned from best practices but also emphasized at least one major element par-ticularly well. We took a different tack in this edition by including overall studies of such critical areas as assessment, developing women leaders, and global leadership. In addition, we have found that many programs have more focus on such areas as improving processes to drive change and innovation and to build networks.

The challenge to practitioners today that we believe this edition ’ s contributors have answered for their organizations is: How do I create a unique and memorable impact on individuals, teams, and eventually the organization? How can I take one avenue or aspect of experience and infuse it with something that creates learning and behavioral change?

This is what I call creating a signature experience. The experience has an impact on both the heart and the mind; it challenges and alters think-ing and embeds itself in the memory and behavioral repertoire of the participant. This edition presents outstanding examples of such signa-ture experiences. The socialization process at Bank of America is an outstanding example of an organization that has built a unique, multi-faceted approach to the challenge of on - boarding executives and accel-erating their transition to key roles. The chapter from Dell not only provides a multileveled approach to leadership development, but includes a description of an in - depth coaching program that was global and long-term in scope. The strategic team process at McKesson combines both leaders teaching leaders and a team - based, action learning process into a dynamic, high - impact combination. From a government perspective, the case study of the Victoria Department of Treasury and Finance pro-vides a thoughtful approach to connecting leaders to their mission and strategy through a well - structured process for team building and process improvement. The Executive Quality Leadership Development program of Johnson & Johnson, Action Learning Forums of Cisco Systems, and the cascading Real World Work process at Humana build depth in these organizations ’ strategic, quality, and problem solving, aiming at nothing less than transformational change. The Land O ’ Lake ’ s example contains not only an excellent use of action learning, but an innovative approach called the Leadership Edge, where participants grapple with a series of

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Introduction xvii

customer and market challenges. Yahoo! ’ s program incorporates most key best practices while focusing on reinforcing the corporate culture and keeping the unique values of Yahoo! alive. The Macy ’ s chapter shows a unique take on tailoring the design and implementation of vari-ous leadership development programs for different levels and functions in the organization and how these programs can tie in to create a high - performing system. Finally, the chapter from PricewaterhouseCoopers shows how a well - designed and effective leadership development experi-ence can elicit steadfast engagement and commitment from all levels of the organization.

The depth of these programs refl ects the increasing demand on lead-ership development practitioners to create impact and link leadership development to business results. In Chapter One , Rich Rosier identi-fi es the processes, mental models, and business considerations that weigh into the design of a leadership development system and shows the indi-vidual steps to creating a leadership development strategy that fully aligns with the organization ’ s values and objectives. And to take it to the next step, Chapter Two by Marshall Goldsmith and Kelly Goldsmith on help-ing people achieve their goals shows how to execute a leadership devel-opment strategy by making it easier for leaders to stay committed and tenacious in reaching their development goals.

To achieve lasting impact, the connection to succession and talent sys-tems must be strong. In Chapter Three , Stephen Miles provides a com-prehensive overview of the state of the assessment fi eld and the potential for connecting it to longer - term leadership bench strength issues.

These challenges are magnifi ed on the global level. In Chapter Six , Mick Yates ’ s brilliant and provocative discourse on leadership in a global world provides practical examples of leadership development in global organiza-tions while connecting them to larger questions of the qualities that leaders need to develop and foster in others. Yates raises the issue that leadership programs need to encourage innovation, engagement, and what he terms “ networks of trust. ” Today ’ s leadership development practitioner needs not only to develop high - impact experiences, but also to determine how to use the organization ’ s internal and external networks to share best prac-tices across disciplines and geographies. More important, these networks

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xviii Introduction

need to be, according to Yates, “ actionable, searchable, and trustworthy. ” Responding to pressures of this sort, Humana uses a consortium model to share learning, tools, and services. Chapter Five by Scott Anthony, Kevin Bolen, and associates from Innosight points out the measurable value of such networks in fostering innovation. This challenge of how to network learning so that the impact is multiplied is one we have only begun to address in this volume.

In addition to globalization comes an increase in diversity. This rep-resents a strong advantage for growing organizations, but also one that is strongly dependent on the ability of a leadership development system to meet the unique development needs of different demographics. Chapter Seven , by Maya Hu - Chan, Patricia Wheeler, and Tracey Wik, on invest-ing in women, shows how different groups face different challenges and how these challenges can be addressed, resulting in personal empower-ment and greater value for the organization.

Back in 2000, we had defi ned a six - phase approach to leadership development:

1. Business diagnosis 2. Assessment 3. Program design 4. Implementation 5. On - the - job support 6. Evaluation

Although this approach is still relevant, we fi nd much greater empha-sis and innovation today in the areas of assessment, creating interactive and highly challenging program designs, and making more means avail-able for follow - up support and evaluation of impact. In Chapter Four , Robert Fulmer and Jared Bleak provide support for these and other trends. They emphasize the focus of top companies on aligning their leadership development programs with succession management and on holding line management responsible for the results.

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Introduction xix

We hope that this second edition expands and extends the perspec-tive that many readers found useful in our fi rst collection. It is reward-ing to see that in some way, books such as these have spread the best practices of leadership development around the world. We thank all our contributors for sharing their learning and experience and for their will-ingness to be part of this global leadership development practitioner ’ s network.

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LINKAGE INC.’S BEST PRACTICES IN LEADERSHIP DEVELOPMENT HANDBOOK

Second Edition

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Y

PART ONE

DEFINING LEADERSHIP DEVELOPMENT

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3

YYCHAPTER ONE

CONTEXT, CULTURE, AND COMPLEXITIES

Best Practices Versus Best Fit

This chapter outlines the most proven approaches to leadership development and shows how to maximize the use of these approaches

by identifying the future needs of the organization and its leaders and leveraging this context to create an overall

strategy that is “ best - fi t, ” not just “ best - practice. ”

BUSINESS STRATEGY 5

FUTURE LEADERSHIP REQUIREMENT ANALYSIS 6

CURRENT LEADERSHIP CAPABILITY ANALYSIS 9

LEADER SELECTION AND RETENTION TOOLS AND PROCESSES 10

LEADERSHIP DEVELOPMENT TOOLS AND PROCESSES 12

PERFORMANCE MANAGEMENT TOOLS AND PROCESSES 14

CONCLUSION 15

ABOUT THE CONTRIBUTOR 20

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4 Linkage Inc.’s Best Practices in Leadership Development Handbook

When it comes to developing the leaders within an organization, the stakes are high, and the potential payoff is enormous. This chapter focuses on the creation of a systemic approach to leadership develop-ment that is aligned with an organization ’ s strategy, culture, and the criti-cal initiatives required for future competitiveness.

An effective leadership development system is crucial to the long - term success of any organization. It can build sustainable competitive advantage for organizations that take the time and make the effort to design and implement the system.

Since developing leaders takes years, the leadership development sys-tem needs to be built around the future leadership needs of the organi-zation and appropriately adjusted to refl ect changes in strategy. At the macrolevel, a systemic approach to leadership development is based on four strategic questions:

1. What capabilities will our leaders need to have in three to fi ve years? 2. What capabilities do our leaders currently have? What gaps do we need

to fi ll between our current capabilities and those required in the future? 3. What do we need to do to develop our leaders? 4. How do the components and processes of our overall human

resource (HR) system need to be aligned with our leadership devel-opment system for maximum return on investment?

Based on these questions, those who are designing a leadership devel-opment system need to:

1. Identify future leadership requirements 2. Assess current leadership capabilities to identify the gaps 3. Build and reconfi gure the tools, activities, and processes of leadership

development, talent management, and performance and succession management in order to develop the necessary leadership capability for the future

Figure 1.1 illustrates the step - by - step process for designing leadership development as well as the key HR processes that need to be aligned with the leadership development system.

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Context, Culture, and Complexities 5

Business Strategy

The design of a best practice leadership development system must begin with an assembly of the “ right people ” who are critical stakeholders in the overall architecture of the system. In best practice organizations, this “ leadership development council ” is typically made up of key members of the executive team, business unit and functional staff leaders, mem-bers of the board of directors, and in some instances key customer or supplier representatives. By involving these key stakeholders from the beginning, these organizations face fewer diffi culties with issues of “ buy - in ” and senior leader support that can plague organizations. In addition, involvement at this level leads to much easier adoption of another lead-ership development best practice: leaders teaching leaders.

The fi rst job of the leadership development council is to conduct a thor-ough review (if it already exists) or lead the construction (if it does not exist) of the organization ’ s future strategy. Although this chapter does not go into the details of creating a well - crafted strategy, the leadership development

32 1CurrentLeadershipCapabilityAnalysis

FutureLeadership

Requirement Analysis

Leader Selectionand Retention Tools

and Processes

LeadershipDevelopment Tools

and Processes

PerformanceManagement Tools

and Processes

BusinessStrategy

FIGURE 1.1. ALIGNING LEADERSHIP DEVELOPMENT WITH STRATEGIC HR COMPONENTS

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6 Linkage Inc.’s Best Practices in Leadership Development Handbook

council should address the following questions in analyzing the organiza-tion ’ s future “ business strategy ” :

What is the organization ’ s most desirable future state? (vision) Why does the organization exist? (mission) What will the organization do better than any other organization in the world? (strategy) How will the organization achieve its strategy? (business and operating plans) What future expectations exist among key stakeholders? (goals) What common factors guide all employees of the organization as they execute their work? (values)

Once there is clarity and agreement among the key stakeholders with respect to these questions, the leadership development council is ready to proceed to the next step in the process.

Future Leadership Requirement Analysis

The future leadership requirement analysis determines the critical capa-bilities required of leaders to deliver on the organization ’ s future strategy. Once these leadership capabilities are identifi ed, they serve as the foun-dation for the relevant HR processes that must be aligned with the lead-ership development tools and processes in order to deliver the leaders required to execute future strategy. Only if the analysis of the future leadership requirements is accurate will the rest of the leadership devel-opment system be built effectively and contribute to the future success of the organization.

The involvement of the leadership development council is critical in the future leadership requirement analysis. Research has shown that top - performing organizations are 35 to 50 percent more likely to have CEO and board - level involvement than average - performing com panies.

The work of conducting the future leadership requirement analysis can be summarized in three steps:

•••

•

••

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