leadership development trends: findings and implications
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Leadership Development Trends: Findings and ImplicationsPresentation to the Leadership Symposium
Ian CullwickVice-President, Leadership and Human Resources Research The Conference Board of Canada
The University of WinnipegWednesday, October 30, 2013
2
Agenda
•Context - CEO Challenges and Strategies
•Leadership Development – An Overview
•Practices and Priorities
•Learning and Development Outlook 2013
•Implications and Conclusions
3
Context - CEO Challenges and StrategiesCEO Challenges
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Context - CEO Challenges and Strategies
Human capital and leadership underpin four of
the five top CEO strategies
CEO Strategies
5
• Unlike previous annual trends, CEOs are focused on operational and productivity-driven strategies.
• Canadian CEOs are adopting a “small business owner” approach to their leadership and management styles – spending time on the front lines.
• CEO focus on building high-performance organizations that are efficient and engaged.
• Growing talent internally is viewed as the number one human resources strategy for Canadian CEOs.
Context - CEO Challenges and Strategies
6
• A major Conference Board of Canada research initiative
• Examines leadership priorities and practices across 14 industry sectors
• Also identifies opportunities for improvement and better practices
• A two-phased initiative – broader Canadian overview and “deep dive” into select practices
Leadership Development – An OverviewLeadership Development in Canada – A Snapshot
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•HR governance
•Leadership capability and capacity
•Succession planning
•Talent management and engagement
•Increasing growth
Leadership Development – An Overview
Like today’s global CEOs, Canada’s human resources leaders are clearly concerned with improving internal capacity and developing talent, particularly leadership talent.
Business Issues Driving Leadership Development
8
Leadership Development – An Overview
30%
10%10%
10%
10%
Programs Reduced or Cut Back
Finding Ways of Fostering continued De-velopmnet with Less Money
People Have Less Time/Busy Work Envi-ronments
Dedicating Resources to Business Trans-formation Efforts
More Targeted - People and Business Outcome Focused
Many organizations have reduced or cut back their leadership development programs in response to fiscal challenges
Impact of Economic Environment on LeadershipDevelopment
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Practices and Priorities
Supervisors Middle Managers Senior Managers Executives First-Line Managers
High-Potential Employees
Critical Workforce Jobs
0
20
40
60
80
68
61 6158
52
39
32
(%)
Few Canadian organizations (39%) have a leadership development program for high potentials. This has significant implications for succession planning and talent management.
Leadership Development Programs by Employee Segment
Source: The Conference Board of Canada.
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Practices and PrioritiesOverall Leadership Development Practices Use and Effectiveness
0
20
40
60
80
100
71 72
84
70
88
6673
6863
7481
87 85
73
85 8478
71
87
69
Use Effectiveness
(%)
The leadership development activities perceived to be most effective are not necessarily the ones that are used most often.
Source: The Conference Board of Canada.
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Practices and Priorities Opportunities for High Potential Development
0
20
40
60
80
100
71 7284
7088
66 73 68 637481 87 85
7385 84 78 71
8769
Overall Use Overall EffectivenessLD Practices Used For High Potentials Effectiveness of LD Practices For High Potentials
(%)
Organizations are not using the most effective development activities for high potentials: Stretch Assignments, Planned career assignments, and Coaching.
Source: The Conference Board of Canada.
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Practices and Priorities Opportunities for Executive Development
0
20
40
60
80
100
71 7284
70
88
66 73 68 637481 87 85
7385 84 78 71
87
69
Overall Use Overall Effectiveness
LD Practices Used For Executives Effectiveness of LD Practices For Executives
(%)
Largest opportunity gaps for leadership development at the executive level: Job rotations, Facilitated leadership conversations, Coaching, Action learning and Planned career assignments
Source: The Conference Board of Canada
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About the LDO:
• The 12th edition of the Learning and Development Outlook• A total of 198 organizations completed the survey
• Provides an overview of the current state of learning and development practices and programs across Canada
Learning and Development Outlook 2013
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•Creating and maintaining a strong learning culture
•Ensuring that learning is a top priority
•Offering diverse learning delivery
•Providing learning supports
•Aligning learning with organizational strategy
Learning and Development Outlook 2013 Key Drivers of a Stronger Learning Environment
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Creating and Maintaining a Strong Learning Culture
Prioritize learningAlign learning with organizational objectivesPromote/Support the delivery of diverse learning methodsHave strong leadership support for learning
Learning and Development Outlook 2013
Organizations were categorized into weak, moderate and strong learning cultures based on survey responses to key drivers of learning culture.
• Learning culture is comprised of key factors that address the degree to which organizations:
Source: The Conference Board of Canada
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Learning and Development Outlook 2013 Effectiveness of Leadership Development Practices
2008 (n=218) 2012 (n=198)0
20
40
60
Effective Moderately effective Not effective
(%)
In 2012, only 32 per cent of organizations rated their leadership development practices as effective.
Source: The Conference Board of Canada
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Learning and Development Outlook 2013
Weak Moderate Strong0
20
40
60
80Effective Moderately effective Not effective
(%)
Organizations with strong learning cultures are far more likely to have effective leadership development practices.
Effectiveness of Leadership Development Practices by Learning Culture
Source: The Conference Board of Canada
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Learning and Development Outlook 2013
1
2
3
4
5
3.6 3.6 3.6 3.5 3.8 3.7 3.6 3.6
Overall MeanIneffective Leadership Development PracticesEffective Leadership Development PracticesSignificantly
better than competitors
Better
About the same
Worse
Significantly worse than
competitors
Organizations with effective leadership development practices rate their performance as superior to their competitors across all organizational performance areas.
Organizational Performance Relative to Competitors, by Effectiveness of Leadership Development Practices
Source: The Conference Board of Canada
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Learning and Development Outlook 2013
1
2
3
4
5
3.3 3.3 3.3 3.2
3.6 3.53.2
Overall organizational leadership performance same as competitorsOverall organizational leadership performance worse than competitorsOverall organizational leadership performance better than competitorsSignificantly
better than competitors
Better
About the same
Worse
Significantly worse than
competitors
Organizations with strong overall leadership performance rate their organization as superior to their competitors across all organizational performance areas.
Organizational Performance Relative to Competitors, by Overall Leadership Performance
Source: The Conference Board of Canada
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• Strong leadership is critical for organizational performance
• Organizations are not confident that current leadership development practices are effective
• While succession planning is a key driver of leadership development, high potential employee identification and development is not a top priority for many organizations
• Effective leadership development requires an integrated approach to learning, development and talent management
Conclusions and Implications
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Implications and Conclusions
Senior executives 0.44
Executives 0.70
Management 0.47
Mission critical positions 0.35
Source: The Conference Board of Canada.
Ratio of high potential successors to positions
Succession Planning
22
Source: Centre for Creative Leadership, “Blended Learning for Leadership: The CCL Approach,” 2013, 2 and 5.
Blended Strategy for Leadership Development
90% of development is informal
Implications and Conclusions
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