Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K...

2nd National HRD Leaders Retreat

Goa

24-26 July, 2014

Towards Inspirational Business

Leadership in Challenging Times

– The New HR Agenda

Dr. A.K.Balyan

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The Chanllenging Business Environment

Inspirational Leadership

The HR Agenda

Presentation Overview

Going Ahead :The New World Order of Business

Mistrust of big business

Far less stability in economic and political affairs

A shift in the centre of economic power away from the

traditional bastions of USA & Western Europe to other

economies, especially the BRIC countries

A far stricter regulatory environment

Much greater public-private-not for profit partnerships

Demand for addressing the triple bottom-line of profit, people

and planet.

___________________________________________________________

VUCA World : Volatile, Uncertain, Complex & Ambignous

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Levels of Uncertainty…

Source : Mckinsey & Co. 4

How Uncertain Are Companies

55

3028

24 24

0

10

20

30

40

50

60

Sales Customer Preference Availability/cost of funding Competitor Actions Regulatory Actions

% of companies less able to make satisfactory forecasts

Source : Mckinsey global survey on economic conditions 5

Striking the Balance: to Manage the New World

Order in Business

Manage the Present

Selectively

Forget the Past

Create the Future

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The HR Agenda


A Leadership Story

A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect sit for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

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A Leadership Story (contd.)

And shouts down to the assembled group below…

“Wrong Way!”

(Story adapted from Stephen Covey (2004) “The Seven

Habits of Highly Effective People”).

“Management is doing things right, leadership is doing

the right things”

(Warren Bennis and Peter Drucker)

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Leadership:Definitions

The only definition of a leader is someone who has followers.To gain followers requires influence , but doesn't exclude the lack of integrity in achieving this. Indeed, it can be argued that several of the world's greatest leaders have lacked integrity and have adopted values that would not be shared by many people today.

Peter F. Drucker, Management Guru

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Leadership is influence - nothing more, nothing less. This moves beyond the position defining the leader, to looking at the ability of the leader to influence others - both those who would consider themselves followers, and those outside that circle. Indirectly, it also builds in leadership character, since without maintaining integrity and trustworthiness, the capability to influence will disappear.

John C.Maxwell,(born 1947) Renowned ‘Leadership’ writer


Leadership is a function of knowing yourself, having a vision that

is well communicated, building trust among colleagues, and taking

effective action to realize your own leadership potential.

Warren Bennis, Noted ‘Leadership’ Thinker

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A true leader would like to leave behind a legacy of that he

made a difference that he improved the quality of life of the

people whom he served and that there was nothing that he did

which was in a manner speaking for himself,”

Ratan Tata, Chairman, Tata Group


We’ve got 25,000 people at Apple. About 10,000 of them are in the stores. And my job is to work with sort of the top 100 people, that’s what I do. That doesn’t mean they’re all vice presidents. Some of them are just key individual contributors. So when a good idea comes, you know, part of my job is to move it around, just see what different people think, get people talking about it, argue with people about it, get ideas moving among that group of 100 people, get different people together to explore different aspects of it quietly, and, you know – just explore things.”

Late Steve Jobs on on his role as leader at Apple

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*US 2008 Crisis: Lack of Leadership?

Mckinsey Survey of Corporate Leaders-2009

Why Leadership is important?

History has been crafted by leaders

The Progress of Human Development is a treatise on outstanding

leaders – with diverse motives & styles who created a remarkable

impact through their foresight, courage, charisma and influence.

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Leadership : The hidden key to variance in

performance

Similar Size

Similar product

portfolios and

price points

Similar market /

competitive

positions

Source : Hay Group

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50 years of Hay Group research into outstanding

leaders has proven that effective leaders impact

results, by creating a ‘climate for Success’

INDIVIDUAL

v Motives

v Competencies

Leadership

Styles

Job

Requirements

Organisational

Climate

DISCRETIONARY

EFFORT

70% 30%

Motives and Competencies

Influence natural Leadership

Styles (to an extent of 50 to 70%),

which in turn influences Climate

Climate contributes to 30% of the

variations in bottom – line

performance

ORGANISATIONAL

EFFECTIVENESS

(Measured in Profit,

Margin & Growth

Source : Hay Group

Set a Compelling Vision

Troubleshooting and Solving Problems

Enthuse People

Utilise the power of collaboration

Provide a Safety Net for their People

Lead and Manage Change

Act as Coach and Mentor

Lead by example

Accept Mistakes

They drive Motivation

What do Inspirational Leaders do ……….

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How Inspirational Leaders Make a Difference

Leadership Versus Management

Manager

Leader

1. Has a short-range perspective Has a long-range perspective

2. Plans how and when Asks what and why

3. Eyes the bottom line Eyes the horizon

4. Imitates others Originates

5. Accepts the status quo Challenges the status quo

6. Does things correctly Does the correct thing

7. Seeks continuity Seeks change

8. Focuses on goals for improvement Focuses on goals of innovation

9. Power is based on position or authority Power is based on personal influence

10. Demonstrates skill in technical competence Demonstrates skill in selling the vision

11. Demonstrates skill in administration Demonstrates skill in dealing with ambiguity

Demonstrates skill in supervision Demonstrates skill in persuasion

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Manager Leader

1. Works toward employee compliance Works toward employee commitment

2. Plans tactics Plans strategy

3. Sets standard operating procedures Sets policy

4. Relies on analytical decision-making style Relies on intuitive decision-making style

5. Is risk cautious Takes the necessary risks

6. Uses a “transactional” communication style Uses a “transformational” communication style

7. Mostly uses an informational base of data

and facts

Uses an informational base, including “gut”

feelings

8. Builds success through maintenance of

quality

Builds success through employee commitment

9. Does not want to experience anarchy Does not want to experience inertia

10. Plans, budgets, and designs details steps Develops the vision and the strategies to achieve

it

11. Sets standards of performance Sets standards of excellence

12. Develops the detailed plan to achieve

results

Develops the future direction by gathering future

trends

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How Inspirational Leaders Make a Difference

Leadership Versus Management

Leadership Company

Need to move from a Command- and- Control Company to a Leadership Company

Run with a network of leaders

No hierarchy

People free to speak their minds about company performance & thus people are more productive

Multiple first-among-equals leaders in a leadership company will make decisions of a consistently higher quality because many leaders and constituents will be involved in much of the decision making

Employees derive satisfaction from being involved in work that produces products or services that customers buy with increasing satisfaction

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Total Leadership

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“The process of becoming

a leader is similar, if not

identical, to becoming a

fully integrated human

being”

WARREN BENNIS

Leadership Guru

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REINVENTING LEADERSHIP

OLD LEADERSHIP

NEW LEADERSHIP

1. Economy : Profitability Ecology : Sustainability

2. Character : Situational Integrity : Unconditional

3. Talent : Compliance Talent : Commitment

4. Position Power Influence Power

5. Isolation / Separation Connection / Cause

6. Protective Custody Interdependency

Source : Drucker, Leadership Excellence 23

OLD LEADERSHIP DEVELOPMENT NEW LEADERSHIP DEVELOPMENT

1. Semi – academic Field Performance

2. Classes / Content Experience / application

3. Solo and site learning Social / mobile learning

4. Maps and charts Compass and context

5. Teacher / Consultant Coach and mentor

6. Skillsets / mindsets Social / Political savvy

7. Dominance / deference Cooperation / Synergy

8. Draw from business Disparate fields

9. Focus on managers Focus on followers

Source : Drucker, Leadership Excellence

REINVENTING LEADERSHIP DEVELOPMENT

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The HR Agenda


Imperatives for HR

Demographic Changes -

Multi-generational

workforce

Ageing Workforce-

talent crunch

Workforce diversity

Cultural Changes -

Personal and

professional life

balance

Social responsibility

and global

sustainability

Macro factors -

Economic Crisis

Lack of funding

Political uncertainty

Change in policy

framework

Entry of foreign players

Technology Evolution:-

IT enablement, internet and mobile

systems, GPS, ERP pervasiveness

Globalize

Retain Talent

Technology Renewal Pressure to innovate

Imperatives for HR

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GLOBAL HUMAN CAPITAL TRENDS 2014

CEO’s and HR Leaders consider Talent Management as a key for their organisation

growth

Survey : 2500 + organisations, 90+ countries

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Lead & Develop Attract & Engage Transform & Reinvent

(i) Leadership is top concern

- “Readiness Gap

(i) Change in Talent

acquisition, recruitment

(i) Reskill HR Team –

All-rounder –

Business Consultant

(ii) Globalise Leadership

Programmes

- New age & ways of

Learning and Development

(ii) Build Passion & Purpose

- “Talent Magnet”

(ii) Use HR Analysis

(iii) New Model of

Performance Management

- Replace ‘rank & yank’ with

coaching & development

(iii) Diversity as business

strategy

(iii) Globalise and localise -

- High impact and flexibility

(iv) Create a Global skill

supply chain

Source : Delloitte, NHRDN

INDIA TOP HUMAN CAPITAL TRENDS 2014

Survey : 1500 Business, HR Leaders

1. Leadership Pipelines and readiness

2. Talent Acquisition and access

3. Reskilling the HR function

4. Retention and engagement

5. HR Technology

6. Talent and HR Analytics

7. Performance Management

8. Work Force Capability

9. Diversity & inclusion

10. Learning & Development

____________________________________________________________

Level of preparedness (capability index) lags the expectations.

The “Capability gap” ranges 20% to 29% for most of the trends.

28 Source : Delloitte, NHRDN

Inspirational Leadership Competencies

1 . Dealing with uncertainties

Extrovert

Awareness of the External Environment

Unruffled

Risk assessment capability

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2. Manage Complex Teams

Have strong interpersonal skills

Networking capability

Negotiating ability

Communicate Clearly

Has the ability to promote team decision

making

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3. Managing Business using Analytics

Institutionalize Metrics /Analytics in all

Managerial domains

Uses latest tools and technology to

analyse business data

Has the ability to take sound decisions

based on analytics

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4. Management of Change & Work Environment

Create the environment necessary in the

organization to embrace proactive change

Be seen as a Change Champion – who

walks the talk

Create guiding coalitions at all levels to

take the change process forward

Reward the key people who have

successfully steered the change

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5. Capability to understand dynamics of

performance & strategy

Understanding of business

Can strategies effectively, leveraging

strengths and opportunities

Is able to deploy people at key positions –

right people for the right role

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6. Capable of Quick Decision Making

Can develop scenarios while taking a

decision

Ability to analyze objectively these

scenarios

Capable of creating a consensus on best

option

Understands when is the right time to

execute the decision

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7. Use and promote Technology

Understanding the nuances of changing

technology

Able to choose which technology has to

be adopted

Reward people who implement

technological change

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1. Defining Leadership Criteria

-Define the criteria of

Leadership

-Map the criteria in

performance appraisal

- Skill gap analysis

Actions:

Define KRAs

Structure the parameters

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Developing Inspirational Leadership Competencies : HR Agenda

2. Benchmarking Strengths and Weaknesses

Companies that excel in leadership development “ grow leaders as opposed to buying them”. HR should tell individuals know what they are doing well and what they can improve upon.

Actions:- Conduct Assessment Centres, Share the results and frame development plans

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Developing Inspirational Leadership Competencies :

HR Agenda

3. Training and Leadership Development

Great leaders and managers do not necessarily start off with the basic skills to make them great. Companies should consistently offer training in management and leadership for up-and-coming employees for them to be ready to take on added responsibility.

Actions:- Technical Trainings, Managerial Trainings, Job rotation, Stretch Assignments, etc

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Accountability for developing leadership skills falls upon the organization as well as the individual

Actions:- Engage with the identified potential leaders and make them accountable for their own development

4. Leadership Development: A Joint Effort

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5. Coaching & Mentoring

It can be a very formal program

where a more seasoned and

experienced employee is assigned

to a high-potential individual, or it

can be an informal relationship

that develops between two

employees who happen to work in

one area of the office.

Actions:- Identify people who can

be good coaches/mentors and the

potential employees who need to

be coached/mentored

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*

HR should sit down with senior management to examine people within the organization and talk about their potential and best fit role

Actions:- Have career conversations and deploy high potentials for critical assignments

6. Basic Career Pathing and Planning for an Organization

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Thank You

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Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K...

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