BUSINESS IMPACTRELATIONSHIPS BETWEEN LEADERSHIP DEVELOPMENT, EMPLOYEE ENGAGEMENT AND BUSINESS PERFORMANCE

November 6-7, 2014

Zurich

STRIM GROUP OF COMPANIESWHO WE ARE

Many years of experience

as globally acting senior

executives in the design and

implementation of strategies

High quality references as

executive coaches with a focus

on sales, marketing, finance and

HR - partly in international

environments

Scientific foundation, balance

of internal and external evidence

due to various teaching and

research activities

Specialists in SWP and (HR/

Workforce/Sales) Analytics –

partly with the involvement

of Outsourcing

Development of innovative

business models with a constant

view on culture and

leadership

Empathy in large organizations

connected with down-to-earth-

ness and expertise in

execution (conventions)

November 7, 2014 2xxx

November 6-7, 2014

Zurich

KEY CHALLENGES AND STRATEGIES

November 7, 2014 3The Conference Board: CEO Challenge Report 2014

Managerial

Leader-

ship

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLINKAGES TO BUSINESS IMPACT

November 7, 2014 4In accordance with: Nick Bontis und Jac Fitz-Enz, The Conference Board, Mark A.

Huselid, Brian E. Becker, Richard W. Beatty, J.+P. Phillips

Business

Perfor-

mance

Resignation

Risk

R2=44,1%

-0,372

Managerial

Leadership

TrainingHuman

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Motivation Risk

Failure and Availability Risk

Occupational

Skill Risk

Integrity

Risk

Alignment

Risk

0,506

0,442

0,530 0,326 0,360

R2=68,2%

R2=28,5%

R2=28,5%

0,751

0,3580,307

0,475

0,327

-0,337

0,439

0,456 0,4290,394

0,430

0,285 -0,233

0,262

Retention

of Key

People

Human

Capital

Depletion

Employee

BehaviorCustomer

Impression

Return on Assets

Operating Margin

Revenue Growth

Customer

Retention

A compelling Place to Work A compelling Place to Shop A compelling Place to Invest

Leader-

ship Skills

& Comp.

Leader-

ship

Behaviors

Leader-

ship

Develop-

ment

Leader-

ship

Culture

Integrity

Global mindset/thinking

engagement

retention

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLINKAGES TO BUSINESS IMPACT – BACKUP

November 7, 2014 5Source: Investing in People. Financial Impact of Human Resource Initiatives. Wayne

Cascio and John Boudreau. P. 283 ff.

Business

Perfor-

mance

Resignation

Risk

R2=44,1%

-0,372

Managerial

Leadership

TrainingHuman

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Motivation Risk

Failure and Availability Risk

Occupational

Skill Risk

Integrity

Risk

Alignment

Risk

0,506

0,442

0,530 0,326 0,360

R2=68,2%

R2=28,5%

R2=28,5%

0,751

0,3580,307

0,475

0,327

-0,337

0,439

0,456 0,4290,394

0,430

0,285 -0,233

0,262

Retention

of Key

People

Human

Capital

Depletion

Employee

BehaviorCustomer

Impression

Return on Assets

Operating Margin

Revenue Growth

Customer

Retention

A compelling Place to Work A compelling Place to Shop A compelling Place to Invest

Leader-

ship Skills

& Comp.

Leader-

ship

Behaviors

Leader-

ship

Develop-

ment

Leader-

ship

Culture

Integrity

Global mindset/thinking

engagement

retention

The logic of talent-development effects

Source: Investing in People. Financial Impact of Human

Resource Initiatives. Wayne Cascio and John Boudreau. P. 287

LEADERSHIP DEVELOPMENTWHY USE IMPACT AND ROI ANALYSIS?

REACTIVE

►Show contributions of selected

programs

►Justify/defend budgets

► Identify inefficient programs that need

to be redesigned or eliminated

PROACTIVE

►Aligns learning to business needs

►Earn respect of senior management /

administrators

► Improve support for projects

►Enhance design and implementation

processes

► Identify successful programs that can

be implemented in other areas

►Earn a “seat at the table”

November 7, 2014 6

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTWHAT NOW

November 7, 2014 7

63%of leaders rated the quality

of their organization´s

development program

as poor or very poor

of HR professionals

view their organization´s

leaders as high quality

of leaders are considering

themselves highly effective

in leading across countries

and cultures

of leaders say that senior

management is not involved

enough in their development

25%

34% 46%

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP READINESS

25%of organizations

report their leaders

are not VUCA-capable

Organizations whose leaders

are VUCA-capable are three

times more likely to have

financial performance

commensurate with the

top 20 percent.

3X

1Managing and

introducing change

2Building consensus

and commitment

3Inspiring others toward a

challenging future vision

4 Leading across generations

November 7, 2014 8

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP DEVELOPMENT EXPERIENCES

On-the-

Job

Learning

Learning

from

Others

Formal

Learning

70 : 20 : 10

50 : 30 : 20

1 Mentoring

2 Action learning initiatives

3 Rotational programs

4 International assignments

5 Executive coaching

6 Informal coaching/feedback

7 Participation in taskforce

November 7, 2014 9

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP SKILLS & COMPETENCIES

33%of organizations are currently

focused on developing their

leaders´ ability to foster

innovation

Organizations that have been

focussing on developing these

skills, and whose leaders are

now more effective, are three

times more likely to rank in the

top 20 percent for financial

performance.

3X

1 Integrity

2 Global thinking/mindset

3 Leading change

4 Retaining/developing talent

5 Influence

6 Collaboration

7 Self-awareness

November 7, 2014 10

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP BEHAVIORS

There are strong links between several Skills & Competencies and three outcomes:

1 Engagement

2 Employee Development Focus

3 Retention

Leader-

ship

Behaviors

Leader-

ship Skills

& Comp.

November 7, 2014 11

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTTHE ROI PROCESS MODEL

November 7, 2014 12

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTTHE ROI V MODEL

November 7, 2014 13Source: Jack Phillips, Patricia Pulliam Phillips, Rebecca L. Ray: Measuring Leadership

Development. Quanify Your Program´s Impact and RoI on Organizational Performance, 2012.

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP CULTURE

► Decentralized teams as a driver

of creativity, collaboration and

change

► Leadership used for identity

formation, team coaching and

empowerment

Maturity Level 3

Maturity Level 2

Maturity Level 1

3

2

1

► self-organizing networks as a

favored model for the future

► Use of social media

► Transformation to enterprise 2.0

► attractive vision and agreed

binding guidelines - increasing

volatility, decreasing predictability

► Leadership used for the definition

of basic conditions and learning

the contexts of meaning

► Embedding of corporate activities

in a stabilizing canon of values

► Ability to cooperate has priority

over the sole return fixation

► Personal commitment is

associated with esteem, decision-

making autonomy and ownership

► Value orientation of an solidary

stakeholder action

► Executives strive for a paradigm

shift in leadership culture

November 7, 2014 14

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTLEADERSHIP INDEX METRICS

November 7, 2014 15Source: PwC Saratoga. Managing people in a changing world. Key trends in human capital, a

global perspective, 2010.

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTBUSINESS IMPACT

Leadership development practices affect the organization´s financial performance.

November 7, 2014 16

Financial

Impact

Leader-

ship Skills

& Comp.

Leader-

ship

Behaviors

Leader-

ship

Develop-

ment

8,8x

7,4x

6x

9x

Business

Perfor-mance

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTSUCCESS FACTORS (1/2)

►Align the program to business measures in the beginning

► Identify specific behavior changes needed for the target audience

► Identify learning needs for the target audience

►Establish application an dimpact objectives for LD programs

► Involve the right people at the right time

►Design leadership development for successful learning and application

►Create expectations to achieve results and provide data

►Address the learning transfer issue early and often

November 7, 2014 18

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTSUCCESS FACTORS (2/2)

►Establish supportive partnerships with key managers

►Select the proper data sets for the desired evaluation level

►Build data collection into the process and position it as an application tool

►Always isolate the effects of the program on impact data

►Be proactive and develop impact and ROI analyses for major programs

►Use data collected at different levels for adjustments and improvements

November 7, 2014 19

November 6-7, 2014

Zurich

LEADERSHIP DEVELOPMENTCORE STATEMENTS

►Establish or reinforce the business case for prioritized and high-quality leadershipdevelopment.

►Achieving improved leadership skills & competencies and leadership behavior –leader engagement/retention – along with the resulting financial impact will bemuch more challenging without an integrated and solidly reinforced strategy forleader growth.

►Measure the effectiveness of current talent programs with a focus on improvingthe top 3-4 leadership skills & competencies. The more engaged, developed, andempowered your leaders are, the more they can help drive business outcomes.

►Direct your organization´s efforts toward future-focused and business-centricanalytics that generate foresight about talent gaps and drive talent alignment withstrategic goals.

November 7, 2014 20

November 6-7, 2014

Zurich

CONVENTIONS 2015MOTTO: „ANALYTICS MEETS EXECUTION“

Talent Relationship Management: May 21

Human Capital Analytics: October 15

Talent Relationship Management : June 11

Human Capital Analytics : October 29

Talent Relationship Management : June 25-26

Human Capital Analytics : November 5

November 7, 2014 30

YOUR CONTACT PERSON

► President and CEO at STRIMgroup AG in Zurich http://www.strimgroup.com

► Senior Fellow Human Capital at The Conference Board in New York http://www.conference-board.org

► Associate Professor at HTWG Constance / LCBS – MBA in Human Capital Management http://www.lcbs.htwg-konstanz.de

► Selected professional positions:

► Global Head of HR Analytics at Deutsche Bank AG, and

► Senior Manager hrs at PricewaterhouseCoopers AG.

845 Third Avenue

New York, NY 10022-6600

Phone: +49 (0)172 7590 688

volker.mayer@conference-board.org

Gütschstrasse 22

CH-8122 Binz (Zurich)

Phone: +41 (0)43 366 05 58

volker.mayer@strimgroup.com

21November 7, 2014