leadership impacts the bottom line...is leadership development a key component of your overall...

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Leadership Impacts the Bottom Line ...Is leadership development a key component of your overall strategy?

http://www.ArsethInsights.com



The impact of a leader can’t be underestimated

“Apple stock recovers from initial shock of Steve Jobs resignation”~ Huffington Post Headline

02




03Could your company’s leaders be holding you back?

A conclusive link exists between a company’s leadership practices and enhanced financial returns.

Hewitt 2002




04Leadership impacts employee productivity

There is a statistically significant correlation between high-performance work practices and intermediate employee outcomes such as turnover, productivity, and overall corporate financial performance.

Huselid, M., A. (1995). The Impact of Human Resource Management Practices on

Turnover, Productivity, and Corporate Financial Performance. Academy of

Management Journal. Volume 3 8 Number 3 , pp. 635 -672.




05Leadership impacts employee turnover

People leave organizations for a variety of reasons closely related to leadership competencies including:

1. Lack of respect from or support of supervisor (13%)

2. Supervisor’s lack of leadership skills (9%)

3. Poor employee relations with a supervisor (4%)

4. Lack of recognition (4%)

5. Supervisor incompetence (2%)

Saratoga Institute




06

Leadership practices which lead to higher employee satisfaction scores translated into higher customer satisfaction scores, and subsequently into bottom line impact.

Leadership impacts customer satisfaction

Harvard Business Review “The Employee-Customer-Profit Chain at Sears”

Anthony Rucci, Steven Kirn, and Richard Quinn




07

Organizations who prioritize leadership development realize more impact on their business

more effective at raising

quality and bench strength of

their leadership pipeline

84% increase in employee retention73%

increase in leaders’ ability

to engage and work

collaboratively

67% improvement in

business results66%

Bottom line - leadership development pays

High-Impact Leadership Development, Bersin & Associates, 2008




08

Engage and Inspire Constantly evaluate

performance and strategy

Develop long-range

course of actionRecruit, Develop, Retain

The job of a leader




09

Reaching across mediums and

geographies

Handling uncertainty and reacting

quickly to new opportunities

Fostering a climate

of innovation

Collaborating across boundaries

In addition, the new skill set for leaders includes:




10Effective leadership now requires interdependence

The role of the single heroic leader is no longer effective

Increased complexity, uncertainty, speed of

technology, innovation, and breadth of scope,

all with a global emphasis, requires a different

approach

It’s more and more difficult for leaders to solve these

complex challenges with their own resources

HBR Panel 2010, CCL white paper 2009, DDI white paper 2008




11Interdependence, as the new norm, creates a need for different leadership skills

Managing across

horizontal boundaries• 71% of executive leaders see

managing through silos, turf battles,

and matrix management as the

biggest challenge in this new

environment

• 86% of senior executives said

collaborating across boundaries is

extremely important, only 7% said

they did it effectively

Driving innovation across

the organization• When asked about the top 10 trends

to impact organizational strategy over

the next 5 years, the drive for

innovation was number one (92%)

• There is a direct correlation ...

integrating expertise and experience

across all functions is a powerful route

to innovation

CCL Survey, 2009




12

Leadership can be developed




13Developing leadership talent for the future

Start at the top Senior management defines what is needed

Assess

Strategy Development

Monitor & Measure

Reward

Evaluate the current talent pool

Develop a strategy to fill gaps and prepare for opportunities

Assess progress and individuals frequently

Differentiate compensation to reward leadership




Demand Pull Demands of the job

pull the leader to

develop new skills

Learning ExperiencesMost impactful include:

On-the-Job (70%)

Relationships (20%)

Classes & Training (10%)

BalanceBuild capabilities for

new ways of working with a

balance between individual

competencies and the

collective capabilities

of teams

Variety & ChallengeSuccessful leaders

have a variety of specific

and challenging work

and disorienting

experiences

PrioritizeThe right

experiences to

those most likely

to advance and

mission -critical

employees

14

Strategy All leadership

development activities

should align with

company strategy

Key principles of leadership development




15The most impactful leadership development experiences

TOP

101. Empowered decision-making

2. Customized development plans

3. Robust feedback

4. Skill training in people management

5. Work in a new line of business

6. Peer interaction and learning

7. Sessions with an executive coach

8. Lead high-quality direct reports

9. 360 feedback

10. Turn around a struggling business

CLC 2001




16Getting to yes – gaining the support of management

Provide data to support a change in approach• Share statistics, research, or case studies that substantiate your recommendation

• Quantify the implications if no action is taken

• Conclude with ROI

Present recommendations in light of the business strategy and challenges• Talk their language

• Explain how your recommendations advance the company strategy

• Articulate why this is the right time

Make it easy to say yes• Start small by using pilots

• Minimize cost by doing what you can internally and focusing on critical components

• Build credibility through a grass roots approach

• Introduce solutions whenever possible that support a more comprehensive strategy

Have a clear call to action• Make it clear what you want them to do




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Thank You !

Suzann ArsethExecutive Coach

[email protected]

To learn more about executive coaching and leadership development, contact Suzann for a complimentary consultation


http://www.arsethinsights.com

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