What Leaders at top companies do to drive predictive performance and engagement.

Risk. Reinsurance. Human Resources

Aon Hewitt

HR Leads

“What leaders at top companies do

to drive predictive performance &

engagement” HR Leads June 2015

Presenter: Michael Gruber

2 HR Leads Aon | Working together

About HR Leads

• Continued initiative conducted quarterly across the region

• Intention is to provide a platform for the exchange of ideas between the HR leaders currently shaping the

future of human capital

• Each event is facilitated by a keynote speaker who will introduce the session with a thought-provoking

presentation

• Creates a unique networking opportunity for senior HR Professionals in the region


Overview

• Introduction

• The Business Case: Engaging Leaders, Predictive Performance and Results

• What differentiates Aon Hewitt Top Companies for Leaders

• Predictive Assessments – Challenges and Examples

• Knowledge Sharing and Discussion


DNA of a Aon Hewitt Top Company for Leaders®

3 Three Leader

Attributes

4 Four Disciplines

5 Five Fundamentals

Top

Companies

for Leaders®


3 Leader Attributes Leading in Today’s World

1. Self-aware leaders - tremendous

understanding of their personal strengths as

well as weaknesses AND use this information

to become more effective leaders of others.

2. Resilience in TCFL Leaders through inclusive

cultures. Multiple perspective and ideas are

expected to help the organization meet fast

changing business challenges.

3. Top companies are identifying and building

engaging leaders who are stabilizers,

ambidextrous, and connected to people and

events inside/outside their organization.


4 Disciplines What Differentiates Top Companies?

An integrated Talent Assessment & Development Framework makes it seamless,

continuous & sustainable

Leaders lead the way Practical and aligned programs and practices

Senior leaders have

a passionate and visible

commitment

to developing leaders 3 An intense focus

on talent permeates

every level of the

organization 4 1 2

Leadership strategy

clearly reflects the

overall business strategy

The development

of leaders is an

institutionalized practice

and mindset

Unrelenting focus on talent When leadership becomes a way of life


5 Fundamentals that Set Top Companies Apart in 2015

CEO, Board of Directors, and senior management involvement

Focus on the talent pipeline

Pervasive

Comprehensive

Integrated

Consistent

Simple and scalable

Sustainable

Leadership and talent mindset:

Adaptable

Innovative

Reinvention; raising the bar

Customer-centric

Impact and results

Clear alignment of business strategy to talent strategy and practices


Use of Predictive Assessments

Key Messages

“Assessments should have

results which are Simple,

Consistent, Objective & Clear”

“You want people to make talent

decision based on the data, not

their interpretation of the data”

Aon Hewitt’s Top Companies for Leaders study suggest that 80% top APAC companies assess

talent from various lenses. Hence they use multiple tools for assessment like Assessment

Centers, Psychometric Tools, 360 Degree Survey, etc.

Data-Driven

Fit to Role &

Organization

Efficient

Linked to ROI


The Business Case: Engaging Leaders, Predictive Performance and Results


The Relationship Between Strategic Clarity and Financial Performance

What is the financial impact of having a clear business case for leadership?

Percent Improvement in CAGR Operating Income Over 5 Years

103% Increase

120% Increase

.041

–.211

.007

Low Medium High

Degree of Clarity

Leaders having a strong reputation for cultivating talent

Holding leaders accountable for talent pipeline

Use of multiple data to inform strategic leadership decisions

Using specific leadership metrics

Relative importance of elements of business clarity

on improving CAGR operating income:

When looking at the relative

effects of the different ways

of creating a strong

business case, having

leaders with strong

reputation for cultivating

talent has the greatest

impact on financial results.


Business Case: Positive Perceptions of Senior Leaders improves Total

Shareholder Return

• Aon Hewitt’s ongoing Best EmployersTM research reports a high correlation (over 0.9) between senior leadership and many drivers of engagement. This leads us to a phenomenon that we often call the Multiplier Effect which states that improving perceptions of senior leaders will have a positive, indirect impact on the drivers of engagement.

Companies with Ineffective Leadership

Companies with Effective Leadership

Leader Effectiveness 32% 76%

Engagement 47% 72%

TSR 1% 19%

When satisfaction with senior leadership changes

from 32% to 76%

Engagement scores also change from 47% to 72%

TSR increases

from 1% to 19%

AON Hewitt Global Best Employer Research


The Cascade Effect: Engagement Starts at the Top

Quality of senior management has a strong impact on driving high financials of the organization.


Business Case: Relationship Between Predictive Talent Practices and

Financial Results

Relative Importance of Different Types

of Assessment • Delivering assessments at the

middle level is significantly

associated with CAGR EBIT.

• When comparing the mean

differences, the companies with a

high utilization rate of assessments

show 133% increase in CAGR EBIT

compared to those with a low

utilization rate.


What Differentiates the Top Companies


Top Companies Align Business Objectives with Talent Strategy

Action

speaks

louder

than words

Global top

companies All others

Leadership investments are not impacted

by financial performance 92% vs. 68% Leaders are held accountable (though

compensation, opportunities, and rewards)

for the strength of their talent pipelines 92% vs. 59%

Overall organizational performance

includes specific leadership metrics 96% vs. 74%

Senior leaders drive a culture of inclusion 96% vs. 79%

Clearly define their leadership strategy vs. 85% Have clearly communicated the leadership

and talent strategy to employees vs. 62%

Have stakeholders (e.g., board of directors,

executive committee) who understand how

leadership investments create value

vs. 90%

Include review of existing and future leadership

and talent needs into their business planning vs. 86%

Have senior leaders who are aligned to the

direction their business is heading vs. 90%

100% of top companies


Top Companies Have Formal Leadership Strategies for...

100% 100% 100% 100% 100% 100% 100% 100%

83%

95% 95% 90% 90% 89%

80% 84%

72% 74%

Rewardingleaders

Identifying highpotential/critical

talent

Selectingleaders

Developingleaders

Employeeengagement

Assessingleaders

Retainingleaders

Talent mobility(e.g., moving

talent todifferent

geographiclocations)

Diversity andinclusion

Global top companies All others


Leaders Involvement in Leadership and Talent

Data reflects practices of the Global Aon Hewitt Top Companies for Leaders

Leader Involvement in Core Talent Practices Board of Directors CEO Senior

Management

Middle

Management

Reviewing talent 88% 96% 100% 88%

Succession planning 92% 100% 100% 76%

Conducting performance discussions 52% 96% 96% 96%

Giving developmental feedback 60% 88% 100% 96%

Differentiating rewards based on performance 80% 92% 96% 96%

Demonstrating inclusive behaviors 80% 100% 100% 100%

Creating a collaborative environment 64% 96% 100% 100%

Percent of time spent on leadership and talent activities


What it Takes to Build Engaging Leaders

Supported by the organization, engaging leaders set the tone and see results

Global top

companies All others

Our organization has a strong reputation in the marketplace

for cultivating talent 100% vs. 73%

Our leaders have a strong reputation internally for cultivating

talent throughout the organization 100% vs. 66%

Business unit leaders actively drive interventions following

engagement survey results 96% vs. 77%

Leaders receive coaching and development on skills and

behaviors to engage others 96% vs. 70%

Leaders are formally held accountable for employee

engagement 84% vs. 70%

We have a strong group of leaders that create high

engagement levels among their direct reports and others

they interact with in our organization

96% vs. 68%

Employee engagement levels rose since last review 83% vs. 62%


Top Companies Use a Variety of Assessment Techniques

100% 96%

84%

64%

80%

88% 85%

77%

51%

71%

360 degree Feedback Competency basedassessments

Personality assessments Cognitive assessments Leadership styleinventories


Valid and objective feedback assessments help companies understand individual

capabilities, guide development and inform talent planning


Assessments – Targeting tools to talent practices

Global Top Companies use specific assessments for strategic purposes.

Pervasive execution of assessment at all levels

Data reflects practices of the Global Top Companies for Leaders

360 Degree Feedback

Competency

based

assessments

Personality

assessments

Cognitive

assessments

Leadership style

inventories

Succession planning 36% 64% 24% 20% 16%

Talent review 36% 64% 20% 16% 16%

High potential identification 32% 68% 24% 24% 24%

Global assignment selection 20% 40% 12% 16% 16%

External candidate selection 8% 60% 44% 60% 24%

Promotions 32% 60% 24% 28% 12%

Leadership development 96% 84% 80% 32% 72%

High potential development 88% 88% 72% 32% 60%

Coaching 92% 72% 64% 24% 56%

By Level Senior Middle Front Line

360 Degree Feedback 92% 92% 72%

Competency based assessments 92% 96% 72%

Personality assessments 84% 84% 68%

Cognitive assessments 40% 36% 44%

Leadership style inventories 76% 72% 44%


High Potentials – Transparent Practices

Transparency

76% We remove high potentials from the pool once they have

been selected (as appropriate) 59%

68% We consider diversity and inclusion implications when

evaluating high potential pools of talent 44%

64% We evaluate retention risks in our high potential pools

of talent

53%

56% We communicate to a person when he/she is no longer

designated as high potential 33% Data reflects practices of the Global Top Companies for Leaders

Global top

companies What they do differently…. All others

96% Others in the organization are aware that a high potential

classification exists 81%

88% Others in the organization are aware of the responsibilities,

opportunities, and expectations for high potentials? 64%

84% High potentials are aware of their status 63%

Evaluation


Leadership Development Practices at Top Companies

Development offered to all leaders at the following levels


Senior Middle Front-line Senior Middle Front-line

Developmental assignments 80% 76% 64% 52% 51% 37%

Special projects/teams 68% 72% 64% 46% 57% 44%

Coaching—internal provider 60% 80% 84% 35% 44% 32%

Structured opportunities for peer networking 68% 68% 60% 44% 45% 40%

Mentoring—internal provider 64% 76% 80% 35% 48% 47%

Leaders serving as teachers 80% 76% 56% 40% 42% 34%

Corporate philanthropy exercises (e.g., running

fundraiser, project management for relief effort) 68% 72% 72% 38% 40% 36%

Special assignments directly related to corporate

social responsibility strategy 56% 64% 56% 31% 28% 26%

Cross-cultural awareness training 72% 76% 68% 34% 38% 36%

Training on how to conduct performance discussions 100% 100% 100% 58% 74% 70%


Predictive Assessment Challenges and Examples


Criterion-Related Validity

In assessment the term Criterion-Related Validity is:

Presented as a correlation-coefficient (rxy)

Demonstrates the relationship between assessment scores and outcomes

9

8

7

6

5

4

3

2

1

Low High

Measure of Job

Performance

Outstanding

Acceptable

Deficient

Assessment Score

{

{

{

• Statistical relationship

measured via correlation

- 1.0 = perfect

relationship

- 0.0 = no relationship

• Perfect relationships are

never found

- No single test/test

battery can ever

predict job

performance perfectly

- Standard performance

measures are typically

unreliable indicators of

actual performance


Note: The ADEPT-15 personality model is based on the latest research in personality

psychology is built from the well accepted Five-Factor Model (FFM) of personality along with

additional leading concepts in workplace practices and research.

ADEPT-15TM


ADEPT-15TM

Using technology to control for faking and bias

Questions about Composure Questions about Drive Questions about Power

People say they can always count on

me to get things done right

I tell others what to do if they need

some direction

I tell others what to do if they need

some direction

I tend to think better in stressful

situations

I think I could be a strong leader for

an organization

I think I could be a strong leader for

an organization

Matched on Desirability

Agree Slightly

Agree Agree

Slightly

Agree


What About an Individual’s Own Personality & Engagement?

Cooperativeness &

Sensitivity

People who are agreeable and

enjoy working with people and are

compassionate about their team

members will likely demonstrate a

healthy amount of organizational

commitment

Personality can tell us which employees are more likely to be Engaged…four

Aspects of ADEPT-15 show a correlation to individual engagement:

ADEPT-15 Personality Model

6 BROAD WORKSTYLES

15 ASPECTS OF

PERSONALITY

1 TASK STYLE

2 ADAPTATION STYLE

3 ACHIEVEMENT STYLE

4 TEAMWORK STYLE

5 EMOTIONAL STYLE

6 INTERACTION STYLE

Note: The ADEPT-15 Personality Model is based on the latest research in personality

psychology is built from the well accepted Five-Factor model of personality along with


DRIVE relaxed vs. focused

STRUCTURE big picture vs. detail focus

CONCEPTUAL practical vs. innovative

FLEXIBILITY predictable vs. flexible

MASTERY doing vs. improving

AMBITION contented vs. striving

POWER contributor vs. leader

ASSERTIVENESS cautious vs. socially bold

LIVELINESS reserved vs. outgoing

COMPOSURE passionate vs. calm

POSITIVITY concerned vs. hopeful

AWARENES insulated vs. self-aware

COOPERATIVENESS independent vs. team oriented

SENSITIVITY stoic vs. compassionate

HUMILITY proud vs. humble

Drive

People ware are focused on

work are more likely to strive at

work despite obstacles, setbacks

and lack of managerial support

Positivity

Look for people who overcome obstacles and

demonstrate a hopeful perspective, they will share

positive stories about your organization with others

rxy = .19** rxy = .11*

rxy = .14*

rxy = .24**


An Engaging Leader as Defined by ADEPT-15

Cooperativeness &

Sensitivity

Engaging Leaders Connect with

others and demonstrate

compassion, they are willing to

Serve & Grow their team

members

Six Aspects of ADEPT-15 show a correlation to the types of behaviors that leaders

who drive engagement tend to display:

ADEPT-15 Personality Model

6 BROAD WORKSTYLES

15 ASPECTS OF

PERSONALITY

1 TASK STYLE

2 ADAPTATION STYLE

3 ACHIEVEMENT STYLE

4 TEAMWORK STYLE

5 EMOTIONAL STYLE

6 INTERACTION STYLE

Note: The ADEPT-15 Personality Model is based on the latest research in personality

psychology is built from the well accepted Five-Factor model of personality along with

















Drive

Engaging leaders are those who Step

Up and make sure work gets done

Positivity & Composure

Engaging leaders can Stay Grounded and navigate

obstacles and overcome challenges

Liveliness

Engaging leaders can Energize

others


Applying Competency / Personality to Assess Compliance

Humility & Cooperativeness Well Above Average

Humility is a key predictor of modeling integrity and the

willingness for someone to take accountability, act

appropriately and display modesty.

To use Personality effectively, start with a Specific Profile (e.g., Bayer Compliant)

6

Step 1. Select 5-6 of the 15 dimensions (aspects) relevant for Bayer Compliance

Step 2. Consider “how much” for each trait is needed for success at Bayer

1

Assertiveness & Liveliness Above Average

We need people to stand-up and say something if

they see someone not adhering to Bayer

Compliance standard. They need to take that

initiative.

4

Aon Hewitt Personality Model

6 BROAD

WORKSTYLES

15 ASPECTS OF

PERSONALITY

1 TASK STYLE

2 ADAPTATION STYLE

3 ACHIEVEMENT STYLE

4 TEAMWORK STYLE

5 EMOTIONAL STYLE

6 INTERACTION STYLE

Note: The Aon Hewitt Personality Model is based on the latest research in

personality psychology is built from the well accepted Five-Factor model of

personality along with additional leading concepts in workplace practices and

research.
















Structure & Drive Well Above Average

We have to make sure our team members are

comfortable with Structure and display a willingness

to follow rules. In addition, we want a healthy

amount of Drive.

Additional Area?


Fit Profile for XYZ

Aon Hewitt Personality Model

6 BROAD

WORKSTYLES

15 ASPECTS OF

PERSONALITY






AMBITION satisfied vs. striving





POSITIVITY worried vs. hopeful

AWARENESS insulated vs. self-aware

COOPERATION independent vs. team oriented



Mastery

• Deliver Excellence

• Value our People

Cooperation, Sensitivity

& Humility

• Put the Customer First

• Value our People

• Operate as One Team

• Act with Integrity

Unique configurations…

Executive or HiPo Feeder Positions: Ambition & Power

Sales Positions: Assertiveness & Liveliness

Customer-Facing: Composure

1 TASK STYLE

2 ADAPTATION STYLE

3 ACHIEVEMENT STYLE

4 INTERACTION STYLE

5 EMOTIONAL STYLE

6 TEAMWORK STYLE

2

6

Step 1. Select which of the 15 dimensions (aspects) align most closely with XYZ’s Culture & Values

Step 2. Consider how much of each is critical for Fit – prioritize

Drive

• Deliver Excellence

• Take Personal Accountability

• Put the Customer First

1

The Aon Hewitt Personality Model is based on the latest research in

personality psychology is built from the well accepted Five-Factor model of

personality along with additional leading concepts in workplace practices

and research.


Competencies include 43+ underlying “Enablers” created from extensive review of literature and client competency models

• Enablers are designed to be new “building blocks” for all leadership assessment

• Enablers can be mapped to an organization’s unique competencies

Sample Assessment Design based on validated competencies

Demonstrable behavior strands for

assessment identified for the Mid

Management level capability assessment

43 ENABLERS

for emerging

leaders

Competencies Robust set of tools

Applies Knowledge and Sound Judgment

Demonstrates Character and Integrity

Develops and Retains Talent

Establishes Direction and Shared Purpose

Interacts Effectively with Others

Manages Self

Works Productively and Drives Results


Michael Gruber’s Biography

Experience

Michael Gruber joined Aon Hewitt as a Partner Consultant in MENA in 2013. He was previously with the EMEA organization of Aon Hewitt

responsible for Leadership Consulting and Talent management. Before that, he gained Management experience in various organiza tions. His

last assignment prior to Aon Hewitt was Managing Director of a consulting firm with focus on Central Eastern Europe and ME.

With 20 years of Management and HR consulting experience, he is extending Aon Hewitt´s focus on Leadership Consulting in the Middle East.

His top priorities are developing the Leadership practice from an offering as well as a business development point of view.

Michael is a frequent inspirational speaker on leading HR and Leadership practices and pursues the mission: “to make the wor ld a better place

to work”.

Qualifications

Masters in Business Administration from Henley University, UK

Michael Gruber Partner – Aon Hewitt Middle East

Leadership Practice

[email protected]


Qudurat – an introduction

Qudurat, meaning ‘capabilities’ in Arabic, is the largest research project of its kind in the GCC.

Objectives of the study:

• Identify evidence-based solutions to mitigate talent risks in the Middle East region and drive higher engagement and productivity

• Enable organizations to examine the effectiveness of their nationalization efforts

• Explore what drives retention and engagement of talent in the Middle East

To date, the study has encompassed the views of over 23,000 respondents across seven countries (Bahrain, Egypt, Kuwait, Oman,

Qatar, Saudi Arabia and UAE), approximately half of which were nationals.

Qudurat is geared to research the implications of demographic and social changes on the region’s labor market:

• Increasing unemployment and saturation of jobs in the public sector

• Nationalization legislation and policy focus

• The entry of millennials into the workforce

• Increasing gender diversity in the workforce

• Aims to appreciate and identify regional solutions, dialogue and actions to key workforce issues arising from these changes

• Grounded in the latest theory and research in organizational behavior and is based on Aon Hewitt’s work with clients in the

region for over 11 years. It focuses on attributes of employees and their environment that can be influenced through intervention

The study is fully funded by Aon Hewitt as our investment in understanding the region’s HR challenges

Risk. Reinsurance. Human Resources

Aon Hewitt

HR Leads

THANK YOU.

What Leaders at top companies do to drive predictive performance and engagement.

Leadership & Management

Transcript of What Leaders at top companies do to drive predictive performance and engagement.