Global Leadership Forecast 2011

The Talent Management Expert

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NO!

Leadership Development Effectiveness 34%

2011 29% 2009

33% 2006

HR

NO!

Leadership Quality

37%

20

09

38%

20

11

25% HR

NO!

18% Future Bench Strength

HR

Leadership Quality Impacts…

Confidence of Future Business Success

4%

66%

Low Leadership Quality

High Leadership Quality

Retention 24%

70%

Low Leadership Quality

High Leadership Quality

Engagement 9%

50%

Low Leadership Quality

High Leadership Quality

The bottom line 52%

13%

Financial performance 2.8x

Customer satisfaction 4.6x

Productivity 4.7x

Quality of services 4.4x

Low Leadership Quality

High Leadership Quality

Passion 7%

53%

Low Leadership Quality

High Leadership Quality

Performance: Top vs. Average

50% better

Cost of Leadership Performance

AVERAGE HIGH LOW

1 Leader

X 10 Direct Reports

X $170,000

Revenue Per EE

$1.7 million

If the difference between

an average leader and top-

performing leader is 50%

$2.6 million

Time for a (R)evolution!

About the Global

Leadership Forecast

1,897 HR Professionals

12,423 Leaders

2,679 Organizations

74 Countries

Enhanced Business

Impact

Quality of

Leadership

Enhanced People

Outcomes

Talent

Systems &

Practices

Leadership

Development

Management

Culture

Development Matters

Leadership

Development

Talent

Systems &

Practices

Management

Culture

Effective Development =

Quality Leadership 13%

62%

Low Development Effectiveness

High Development Effectiveness

Leadership Development: What works today, may

not work tomorrow

Top Five Past

Critical Skills

1. Driving & managing change

2. Executing organizational strategy

3. Coaching & developing others

4. Making difficult decisions

5. Improving employee engagement

1. Driving & managing change

2. Identifying/developing future talent

3. Fostering creativity & innovation

4. Coaching & developing others

5. Executing organizational strategy

Top Five Future

Critical Skills

Top Five Future

Critical Skills

1. Driving & managing change

2. Identifying/developing future talent

3. Fostering creativity & innovation

4. Coaching & developing others

5. Executing organizational strategy

Leadership Skill Effectiveness:

50 / 50 Value Proposition

“Our CEO coined how we need to think

about innovation. He said, „I’d rather be

8 and 2 than 2 and 0 in terms of willingness

to try out something new’”.

Innovation

Important

95%

90%

89%

72%

Budget

Increases

80%

82%

73%

49%

Up The Value Chain

Boston Consulting Group 2010

(R)Evolution Point 1 A Leader’s Role in Innovation

Lack of Understanding

Stakeholders

Aversion to Risk

Failure to Execute

Innovation Challenges Culture of Innovation

Think Differently

Question

Assumptions

Get Things Done

Experiment

Team Members

Lackluster Ideas

The Leader’s Role in Innovation

Inspire Curiosity

Drive Discipline

Leader

Challenge Current

Perspectives

Create Freedom

Leadership Development

Methods

• Formal classroom training

• Special projects

• Coaching from your manager

• Moving positions

• Coaching from internal coaches

• Web-based, self-study learning

• Coaching from external coaches

• Virtual classroom

Formal classroom training

Special projects or assignments

Coaching from your manager

Moving positions

Coaching from internal coaches

Web-based learning

Coaching from external coaches

Virtual classroom

Effectiveness of Development Methods

Organizations that

have effective

programs use

more methods.

32%

HR

(R)Evolution Point 2 Learning: From Event to Journey

10~20~70 FORMAL COACHING ON-THE-JOB

= Assessments, Targeted Personal

Development Focus

Orientation Kick Off

Coaching

Fo

rma

l L

ea

rnin

g

April-June July-September October-December January-March

Action Learning

Ongoing Feedback and Support

Core Curriculum 3

Building High-Performing Teams

Driving Innovation

Supporting Leadership Development

2 days

Action Learning

Action Learning

Coaching

Coaching

•Assessment: 360 and personality Inventories

•Prework

•Action Learning Kickoff

Development Planning Meetings

(DDI Coach, Boss, Mentor)

Repeat 360 to Assess Behavior Change

Development Planning Meetings

(DDI Coach, Boss, Mentor)

= Core Curriculum = Action Learning

& Ongoing Development

Job Growth Experiences

Info

rma

l L

ea

rnin

g,

Fee

db

ac

k, a

nd

On

-th

e-j

ob

Ex

peri

en

ce

= Learning 2.0 components

Manager/Sr. Leader Kick-Off Webinar

Leader Blog: What leadership means to participant, how they

will use new skills

Wikis: Tying leadership

skills to business

outcomes – how do they

link together?

Discussion Board: Participants seek

feedback from BU

leaders on ideas,

best practices

Learning Mash-Up

Core Curriculum 1

Challenges of Transitions

Mastering EQ

Influencing

Courage

3 days

Core Curriculum 2

Cultivating Networks & Partnerships

Making Change Happen

Learning through Transitions

3 days

Talent Management Matters

Leadership

Development

Management

Culture

Talent

Systems &

Practices

Firing on all cylinders

Leadership

Succession 77%

Performance

Management 77%

Leadership

Selection 79%

22%

42%

31%

30%

33%

31%

Programs & learning

for mid-level leaders 76%

Programs & learning

for senior leaders 74%

Programs & learning

for frontline leaders 68%

Future Importance

Current Effectiveness

HR

Development Can’t Fix Everything

Low • Arrogance

• Inquisitive

• Ambitious

• Volatile

• Learning

Orientation

• Results

Driven

Moderate

• Risk-taker

• Letting go

• Making

sound

decisions

High

• Customer

focus

• Developing

strong teams

• Executing

strategy

• Building

future talent

• Communicating

with impact

Select Develop

1/3 Use Validated Tools

Selection

HR

Hiring Failures:

1 in 3 72%

63%

28%

37%

External

Internal

Success Failure

HR

81% Tied to corporate goals

69% Balanced between

“whats” and “hows”

56% Discussions provide

clear direction for

development

Performance Management

A new perspective on performance discussions

Atlassian

Succession 18% Rate Bench Strength Strong

HR

64% of leaders made a leadership transition in the past 5 years

26% of organizations have effective programs

to ensure smooth leadership transitions

BUT ONLY

(R)evolution Point 3 Get it Right: Identifying Potential

There’s a Difference

Performance

Potential

Readiness

How one is performing now in current role

One’s likelihood of leadership growth

One’s fit with a specific role, job or job family

Leadership Potential

50% 39% 44%

37%

Identification of

High Potentials

Growth of High

Potentials

2009

2011

HR

Best Practices

88%

87%

60%

48%

46%

43%

Organizations with effective talent management systems

Organizations with ineffective talent management systems

19%

19%

13%

8%

3%

3%

HR

Talent

Systems &

Practices Culture Matters

Leadership

Development

Management

Culture

“Right now, your company has 21st

century Internet-enabled business

processes, mid-20th-century management

processes, all built atop 19th-century

management principles.”

Gary Hamel

Management Culture Killers

• Bureaucracy of management processes

• Values that are not meaningful

• Influence based on position power

• Innovation opportunities for select few

• Decisions are held closely by those in power

• Rigid structure

• Power held by those who value status quo

• Goals only focus on bottom-line growth

Culture Impacts

Passion 29% 57%

81%

Low effectiveness of management culture

Medium effectiveness of management culture

High effectiveness of management culture

17% 31%

51%

Culture Impacts The bottom line

Low

effectiveness

of management

culture

Medium

effectiveness

of management

culture

High

effectiveness

of management

culture

Management Culture Killers

61%

54%

Decisions are held closely by those in power

Organizations are siloed, rigid, hierarchical

44%

43%

41%

38%

37%

32%

Bureaucracy of management processes

Innovation opportunities for select few

Goals only focus on bottom-line growth

Power to those who value status quo

Influence based on position power

Values that are not meaningful

(R)evolution Point 4 Innovating the Way We Manage

Management

Culture

Revolutionized

• Management processes are a

competitive advantage

• Values are shared and meaningful

• Merit-based influence

• Innovation opportunities for all

• Strategic decisions open for discussion

• Flexible, nimble structure

• Power held by those who value innovation

• Goals of growth, sustainability, and

social significance

Enhanced Business

Impact

Quality of

Leadership

Enhanced People

Outcomes

Talent

Systems &

Practices

Leadership

Development

Management

Culture

68th Percentile Leadership Development Talent Management Management Culture

35th Percentile Leadership Development Talent Management Management Culture

24th Percentile Leadership Development Talent Management Management Culture

The Bottom Line

NO! from

GO! to