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Nissan’s Virtual Classroom Leadership 20 Vijay Govindarajan on Reverse Innovation 24 Celebrating Asia’s Best 26 Great People. Great Organizations. Great Results. 2012 Vol. 9, No. 1 How Employees View Leaders 10 Learning is Power ! A model corporate university drives success at Westinghouse Electric Company page 4 Westinghouse Electric Company’s Christof Paulischta, Mike Naughton, and Jim Ice.

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Page 1: Learning is Power! - Leadership Development & …€¦ · That’s how I met Carlos Ghosn, chairman & CEO of Nissan, and Dr. Pailin ... - Leadership & Workforce Development ... A

Nissan’s Virtual Classroom Leadership 20

Vijay Govindarajan on Reverse Innovation 24

Celebrating Asia’s Best 26Great People. Great Organizations. Great Results.

2012 Vol. 9, No. 1

How Employees View Leaders 10

Learning is Power! A model corporate university drives success at Westinghouse Electric Company page 4

Westinghouse Electric Company’s Christof Paulischta, Mike Naughton, and Jim Ice.

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Last November, CNBC’s Asia Business Leaders Awards (ABLA), the premier

awards competition for executives in the Asia-Pacific region, marked its 10th anniversary.

For most of those years, DDI has proudly served as the ABLA research partner. I have

had the privilege of participating, with my colleagues, in the award-selection process by

interviewing the finalists and serving on the panel of judges.

That’s how I met Carlos Ghosn, chairman & CEO of Nissan, and Dr. Pailin

Chuchottaworn, president & CEO of PTT. These two extraordinary leaders were

among the 2011 ABLA winners, each having demonstrated an incredible proficiency

in formulating and executing strategy, managing talent, and driving innovation.

But what impressed me most about them was how they guided their organizations’

responses to devastating humanitarian crises. Under Ghosn, Nissan donated vehicles,

money, and staff time to aid relief efforts in the wake of the 2011 earthquake and

tsunami in Japan. Dr. Pailin, meanwhile, led the way as PTT and its people were on

the front lines of search, rescue, and clean-up work after last year’s flooding in Thailand.

Both of these men, when faced with natural disasters, shifted their priorities overnight.

That says a lot about them. They recognized the right thing to do, and they took

action—an admirable, if intangible quality that marks the difference between a strong

leader and a great leader. And they did what they did by not only leading from the

front, but by encouraging and inspiring all of their employees to get involved.

You can read about Ghosn and Dr. Pailin beginning on page 26 of this issue of GO.

Here you also can read about Westinghouse Electric’s impressive corporate university,

and about another side of Nissan: its innovative approach to developing its far-flung

leadership talent. You’ll also get a new perspective on innovation from Vijay

Govindarajan, see eye-opening new research showing how employees view their lead-

ers, and get a sneak peak at Spark!, a collection of inspiring stories from our clients.

All good stuff to consider as you strive to do good in your job each and every day.

Keep it up!

Rich Wellins

Sr. Vice President, DDI

2

PUBLISHER

Richard S. Wellins, Ph.D.

MANAGING EDITORCraig Irons

CREATIVE DIRECTORSusan Ryan

PRODUCTION MANAGERRachel Moody

CONTRIBUTING WRITERElizabeth Speed Kabus

Editorial and Circulation:

GOc/o Development Dimensions Intl.

1225 Washington Pike

Bridgeville, PA 15017-2838

Telephone: 412-257-0600

[email protected]

ABOUT DDIFor over 40 years, DDI has helped the most successful companies aroundthe world close the gap between wheretheir businesses need to go and the talent required to take them there.

Our areas of expertise span every level,from individual contributors to theexecutive suite:

- Success Profile Management

- Selection & Assessment

- Leadership & Workforce Development

- Succession Management

- Performance Management

DDI’s comprehensive, yet practicalapproach to talent management startsby ensuring a close connection of oursolutions to your business strategies,and ends only when we produce theresults you require.

You’ll find that DDI is an essentialpartner wherever you are on your jour-ney to building extraordinary talent.

© Development Dimensions International, Inc.MMXII. All rights reserved.

ReadySet...RICH WELLINS

Rich Wellins talks about DDI’sinvolvement with CNBC’s Asia Business Leaders Awards.

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contentsGO VOLUME 9 • NUMBER 1

F E A T U R E S4 The Power of Development

Westinghouse Electric Company built an award-winningcorporate university to keep its people at the forefront of the nuclear power industry.

10 Are Leaders Lacking? Employees Think So!

A new global DDI study of employees reveals that manyleaders lack essential skills.

13 Bully-proofing the Workplace

The best way to deal with bullies is to not hire them in the first place. Here’s how.

18 Sparking Change, Touching Lives

Our new book celebrates how the science behind DDItransforms lives in and out of the workplace.

20 Driving Connections

Nissan has employed DDI’s Virtual Classroom technology to develop—and connect—high-potential leaders in important global markets.

26 Celebrating the Best!

CNBC’s Asia Business Leaders Awards have been recognizing the top leaders in Asia for 10 years.

D E PA R T M E N T S9 Perspective

DDI’s Evan Sinar shares job performance data researchconfirming that Millennials are ready to lead.

15 Trend Tracker

A new DDI study explores the connection between leadersand innovation.

16 What’s GOing On

Improved pre-employment tests are on the way, and DDI’s awards shelf fills up.

24 Coffee on the GO

Best-selling author Vijay Govindarajan predicts the next big innovation will come from an emerging market.

3

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420

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18

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26

© Development Dimensions International, Inc. MMXII. All rights reserved.

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4

GREAT ORGANIZATIONS

© Development Dimensions International, Inc. MMXII. All rights reserved.

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Westinghouse Electric Company built an award-winning corporate university to keep its people at the forefront of the nuclear power industry.

Jim Ice has drawn the line of a graph on a white board in a conference room at

Westinghouse Electric Company’s global headquarters just north of Pittsburgh. It starts short

and flat on the left before giving way to a long, steep, upward slope. It looks like a hockey stick.

Five years ago, he explains, this was the shape of the age distribution of talent in the nuclear

power industry.

“If you looked at our employee population, a very significant segment of our employees were

near the end of their careers.” This presented a significant business challenge, says Ice,

Westinghouse’s director of talent management, because “we are currently experiencing a resur-

gence of nuclear power to support the growing need for power across the globe.”

Nuclear power is again a growing industry. It produces a lower carbon footprint than coal and

natural gas, and is a more reliable source for providing baseload electricity than other renew-

able energy sources, such as solar and wind. And, Westinghouse is in a leading position. New

plants, drawing on Westinghouse technology, are planned or being explored in several countries

around the world. Of the more than two dozen nuclear reactors under construction in China,

four are the revolutionary Generation III+ Westinghouse-designed AP1000 reactor. Also, earlier

this year the U.S. Nuclear Regulatory Commission approved the construction of four AP1000

reactors for plants in Georgia and South Carolina, the first new reactor construction approved in

the U.S. since 1978.

The growing demand for power is only part of the story. Westinghouse, as the technology

leader of the nuclear industry, is maintaining this position by aggressively focusing on flattening

out the hockey stick, so to speak, by bringing new talent into the organization and changing

the demographic make-up of its workforce. Maybe even more important is the approach Ice

and his team have taken to developing that talent: building and implementing an award-winning

corporate university that’s tightly linked with Westinghouse’s overall business strategy.

THE POWER OFDEVELOPMENT

5

Jim Ice and histeam designed theuniversity to meetWestinghouse’s business strategy.

© Development Dimensions International, Inc.

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6

A DIFFERENT APPROACH TO TALENT MANAGEMENT

From its founding in 1886, Westinghouse

produced everything from kitchen

appliances, to locomotives, jet engines,

elevators, and light bulbs, and along

the way the company built a reputa-

tion for innovation.

Today, nuclear power is Westinghouse’s

sole focus: designing, servicing, and

manufacturing fuel for operating

plants across the globe. But the com-

pany’s innovation legacy shines on.

The AP1000 reactor is an excellent

example. Designed with passive safety

systems that rely on natural forces—

gravity, natural circulation, and convec-

tion—to cool the reactor without the

need for external sources of power,

the AP1000 nuclear plant design is

safer than existing nuclear power

plants. This is a welcome advance-

ment in reactor safety, especially in

the wake of events at the Fukushima

plant following the earthquake and

tsunami in Japan in March 2011.

While this leading technology posi-

tioned Westinghouse to dominate the

market, it needed the right talent—and

adopted an aggressive talent acquisi-

tion management strategy to get it.

“We were lucky in that Tony Greco,

our senior vice president of human

resources and corporate relations,

had a vision for what we needed to do

in terms of both hiring and developing

our employees to meet the business

demands,” says Ice. “As a result, we

were able to get a head start on

addressing these needs four to five

years ago, ahead of most companies

and competitors in the industry.”

From 2008 to 2011, Westinghouse

hired 5,000 people around the world,

culling the best candidates from

among the more than 40,000 résumés

it receives annually. It also ramped up

campus recruiting and hosted more

than 200 interns annually.

The hires increased Westinghouse’s

headcount to just over 13,000 employ-

ees, while also providing an influx of

young, talented, and motivated work-

ers. To get the new hires up to speed

and contributing at a high level, how-

ever, they needed development.

“You’ve got all these new employees,

most of which are new to our industry,”

says Ice. “And this is an industry that

requires you to understand safety,

quality, and human performance prin-

ciples, meaning how to reduce errors.”

In addition to industry and technical

knowledge, Ice points out that those

experienced individuals hired into

leadership positions also needed tar-

geted development to grow into their

roles. And he also says that during the

years when the company wasn’t in

growth mode, the organization’s three

business units—nuclear plant design,

service, and fuel manufacturing—

became segregated, tending to operate

as three separate companies instead of

as one unified Westinghouse.

“When we looked at both the hiring

demand and the need to train people

across very different businesses—that

had created their own ways of doing

things—we made a conscious choice to

break down those artificial barriers.

That’s when our corporate university, as

a concept, was born.”

SUBSTANTIAL ANDSOPHISTICATED

Westinghouse’s university is both sub-

stantial in its offerings and sophisticat-

ed in its design. Its formation started

with careful planning that included

researching best practices and bench-

marking other corporate universities.

But rather than copy what worked

elsewhere, Ice and his team designed

the university to meet Westinghouse’s

business strategy. Additionally, they

developed a leadership model based

on the unique leadership challenges

within Westinghouse. The model

includes four leadership levels, and

targets the unique types of organiza-

tional leaders (technical, project,

manufacturing, business) and main

capability areas (interpersonal, leader-

ship, management, functional) required

for role success. Each level has a

unique strategy for assessment and a

guide for capability development.

At the outset, Westinghouse identified

objectives for the university in multiple

areas: leadership development, busi-

ness impact, delivery excellence,

learning technology, reinforcing a

common culture, targeted curriculum

development, managing the return on

the training investment, and developing

qualified talent.

GR

EA

T O

RG

AN

IZA

TIO

NS

“We looked at both

the hiring demand

and the need to train

people across very

different businesses.”

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Further influencing the university’s

design, Westinghouse moved to a

corporate-center design for its HR

functions, including both talent acqui-

sition and development.

“We brought together training leaders

from across the organization, and

they designed the university with the

intent of breaking down the silos

between the individual businesses,”

says Ice. “This makes sense when

you consider that many of the defined

education and training needs revolved

around similar learning objectives

across all employees, regardless of

their business unit.”

This realization helped inform the cre-

ation of seven distinct colleges within

the university: Project Management,

Technical, Leadership, Business,

Behavioral (i.e., human performance

and continuous improvement), Manu-

facturing, and Commercial (i.e., content

for customers/suppliers).

“The idea is that an employee, in con-

sultation with his or her manager, can

create a custom development plan

leveraging content across these

seven colleges based on that employ-

ee’s specific role and performance

expectations,” says Ice. He also points

out that the university helps the

organization improve training efficiency,

eliminate redundancies, and realize

cost savings.

Each college has a dean—a subject

matter expert from the business to

help define, structure, and deliver the

curriculum—so that learners get the

training they need when they need it.

Associate deans may support specific

content areas within each college.

In addition, the university includes a

team of learning consultants that have

their fingers on the pulse of the busi-

ness and the organization’s develop-

ment needs.

“Our learning consultants are out

there helping the business leaders

determine the learning strategies that

need to be in place and how the uni-

versity can help provide the right

design and development services,”

says Mike Naughton, manager of

Westinghouse’s university operations.

The real meat of the university is its

broad array of assessment and devel-

opment resources, many of which

come from DDI, including the

Leadership Mirror® multirater assess-

ment tool and Manager Ready®, an

online frontline leader assessment

(see page 8). The university also draws

on DDI’s Interaction Management®

system to develop leaders.

Curt Lawhead, manager, organiza-

tional development, and dean of the

university’s Leadership College, says

that Westinghouse believes strongly

in the strategic importance of connect-

ing assessment and development.

“There’s a direct correlation between

assessment and development at all

three levels because, from a develop-

mental perspective, we can make

sure we’re hitting the mark based on

what the specific identified needs are.

For instance, at the business level

where we use an assessment like

Leadership Mirror, we have also cre-

ated a talent audit process—survey-

ing the workforce to find out the skills

or knowledge areas that people

already have, to assess how they map

against current and future needs and

workforce plans.”

Another defining characteristic of

Westinghouse’s university is the com-

bination of approaches and modalities

employed to deliver high-quality,

impactful learning.

“For one course, we might have a

web-based-training pre-work that

goes out to give participants a primer

on the course content,” explains Mike

Corrigan, team lead for the design

services group within the university.

“Then there might be a two-hour live

or recorded webinar where the facili-

tator walks through the content at

greater depth. Then the third compo-

nent of this development program

might be a one-hour online Q&A ses-

sion during which the facilitator is live

on the phone to answer questions and

provide feedback. It’s an opportunity

to leverage all these technologies to

their fullest potential.”

7

An employee

can create a custom

development plan

leveraging content

across seven

colleges.

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8

“I CAN’T WAIT TO GET MORE DEVELOPMENT”

All of the hard work that went into

visioning, planning, and launching

Westinghouse’s university has paid off

in direct business impact of integrated

development offerings, reduced overall

spending, and coordinated develop-

ment of employees and leaders. The

training and development community

has noticed. The Corporate University

Xchange honored Westinghouse with

the Alliances Award for how it has

aligned the university with the overall

objectives of the business and leader-

ship development programming. The

university was awarded the 2011

Corporate University Best-in-Class

award runner-up in the “Best New

Corporate University” category. And

earlier this year Westinghouse was

named a Top Learning Organization

and featured in Elearning! magazine.

“When Westinghouse decided to

implement the university in 2010, we

began with best practices,” says

Christof Paulischta, a Paris-based

learning and development manager for

Europe, Middle East, and Africa. “So,

our goal is to build a state-of-the-art

corporate university designed to meet

the unique need of our business and,

quite frankly speaking, we’ve got a

great start.”

Paulischta says that while the

outside accolades are nice, what has

most impressed him is the reaction

from Westinghouse employees. “The

employees are excited about this won-

derful opportunity to learn and develop

and to grow. When we started to roll

out the university it amazed me how

individuals said, ‘I can’t wait to get

more development.’”

Read more about Westinghouse Electric’suniversity and learn about Manager Ready.

TARGETING THE DEVELOPMENT NEEDS OF NEW LEADERSAmong the assessment tools Westinghouse Electric Company relies on to guide the development of its people is DDI’s Manager Ready®, an online frontline leader assessment designed to deliver the same quality of diagnosis and benefits as a full-blown assessment center at a fraction of the cost. Manager Ready uses more than 30 realistic behavioral situations to assess frontline leaders and leadership candidates against thecompetencies most needed for role success. Highly skilled DDI assessors evaluate the quality of participantresponses against specific behavioral anchors and provide in-depth insight and feedback reports. ManagerReady was named the 2011 Human Resource Executive® Top HR Product of the Year.

Westinghouse has used Manager Ready to target the development of leaders in both the U.S. and China, andplans to use it for leaders in additional countries, as well.

“Manager Ready is a very effective means of assessing the management team, and we are excited about theopportunity to assess our leadership talent remotely,” says Christof Paulischta.

“The feedback has been great. It’s a very rigorous assessment,” says Curt Lawhead. “It meets our needsbecause we were looking for something that we could do quickly and easily, and that matched our leadershipcapabilities.”

Lawhead also observes that the situations used in Manager Ready give individuals a realistic preview ofwhat’s required to be an effective manager. “In many respects, they come out of the assessment thinking that they have a lot to learn. In reality, new leaders often do have a lot to learn.”T

HE

P

OW

ER

O

F

DE

VE

LO

PM

EN

T

Curt Lawhead serves as dean of the university’s Leadership College.

In his design services role, Mike Corriganstrives to leverage technology to its fullestpotential.

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Generation Y is growing up, and as the oldest of them approach

their 30s, many are in line for (or already holding) supervisory

and management positions. But is this group well-equipped to

assume leadership roles? Or are the images of helicopter par-

ents and their entitled children true depictions—leaving organ-

izations with an acute shortage of talent that’s ready to be

called “boss?” We examined that question with a look into our

performance data.

To validate the DDI test you use, we collect extensive data

about the job performance of leaders. It’s the result of a

process where we ask existing employees to take the test,

and compare their scores to managers’ evaluations of these

same employees. When the results match up, we can validate

the test. And, as an outcome of doing so much of this

research, we accumulated recent and precise performance

data on about 4,000 leaders from 23 organizations.

So, what happens if we look at leaders’ competency profi-

ciencies and compare them by generation? The accompany-

ing graph plots the collective leadership abilities related to

eight common competencies for which we have robust data.

We looked at the first step up the management ladder—front-

line leaders—in two generations: Millennials (born 1982-2000)

and Generation X (1965-1981). A data point plotted closer to

the center of the graph shows lower performance, while one

plotted toward the outside shows higher performance.

As this graph illustrates:

• The Millennial generation performs well when it comes

to Adaptability and Customer Focus.

• They show some relative weakness when it comes to

ability-related competencies, such as Decision Making and

Planning and Organizing, and on the motivation-related

competency of Work Standards.

• Millennials and Generation Xers are very similar in key

leadership and interpersonal skills, including Developing

Others, Gaining Commitment, and Communication.

So, this set of data indicates that Millennials are, in fact, a

viable talent pool for your open leadership positions.

Of course each individual within a population will have differ-

ent strengths and different reasons why they’ve developed a

strength—but the general assumption that Millennials lack

what it takes to develop and motivate others is not supported

by our data.

Because the strengths of Millennial and Generation X leaders

often complement each other, it’s beneficial for all involved to

create opportunities for leaders of different ages to work

together and learn from one another, such as on a project

team or task force, or in a mentoring relationship.

In considering this generational data, it’s worth pointing out

that an individual’s readiness to lead must be evaluated in the

context of your specific role and specific business situation

with well-defined competencies, knowledge, experience, and

personal attributes.

How are leadership competencies changing over time? Read our research and analysis.

Is the Millennial Generation Ready to Lead?Research by Evan Sinar, Ph.D.

PERSPECTIVE

Evan Sinar, Ph.D., is a manager inDDI’s assessment technology group.

9 © Development Dimensions International, Inc. MMXII. All rights reserved.

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10

ARE LEADERS LACKING?EMPLOYEES THINK SO!

A New Global DDI Study of Employees Reveals that Many Leaders Lack Essential Skills.

By Pete Weaver and Simon Mitchell

As organizations continue to adapt to the com-

plexity and dynamic demands of the global

economy, one aspect of the 21st century work-

place remains unchanged: the necessity of strong

boss/employee relationships.

To explore the current strength of these

relationships, in 2011 we partnered with Harris

Interactive to survey 1,279 workers around the

world to tell us about their everyday interactions

with their leaders. The results of this survey are

captured in our new study, Lessons for Leaders

from the People Who Matter: How Employees

Around the World View Their Leaders.

On the following pages, we discuss some of the

findings from this revealing study.

© Development Dimensions International, Inc. MMXII. All rights reserved.

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WORKERS AREN’T CONFIDENT IN THEIR BOSSES’ SKILLS

One important intangible of the manager/employee relationship is the level of respect employees have fortheir leaders—the belief that their boss is a skilled leaderworthy of respect and loyalty. Our survey revealed that this is an area where leaders not only fall short—they fall a long way short. One in three respondents (34 percent) said they don’t consider their manager to beeffective at his or her job.

By any definition, a competent leader must be able tomotivate employees to give their best effort and do theirbest work. But again, more than one-third of employeessay their leaders are deficient in this category, as well.When asked if they feel motivated to give their best totheir leader, 37 percent said only sometimes or never.

Predictably, this dim view of leader capability con-

tributes to turnover. Two out of every five employees

(39 percent) surveyed said they have left a job primarily

because of their leader, while more than half (55 per-

cent) said they have considered leaving a job because of

their leader.

WORKERS OFTEN FEEL HURT AND DEMOTIVATED BY THEIR BOSSES’ ACTIONS

Being a leader is a tough job that many do well. But onthe other hand it seems a great many don’t. When askedif their leaders handle workplace conflict effectively, 42 percent of employees surveyed for ourstudy responded either only sometimes ornever. Similarly, 35 percent responded onlysometimes or never when asked if their leaderslisten to their work-related concerns. This isimportant, of course, because listening has tobe the first step in addressing any problem.

Additionally, according to the survey, 54 per-cent involve employees in making decisionsthat affect the employee’s own, or the employ-ee’s team’s, work. Those decisions are madewithout much explanation, either: 43 percentof employees say that their bosses rarely, ifever, explain the rationale for their decisions.

Also troubling is that so many bosses (34 per-cent) are cited for most of the time or alwayssingling out certain employees as their

favorites—a practice that poisons morale, sabotagesteam effectiveness, and discourages those who aren’t theboss’ favorites from putting forth their best effort.

LEADERS ARE LACKING IN FUNDAMENTAL LEADERSHIP SKILLS

DDI has conducted research and worked with leadingorganizations around the world for more than 40 years,during which time we have developed a deep under-standing of what makes leaders effective. We have foundthat one of the most important and defining traits of aneffective leader, at any organizational level, is his or herconsistent use of what we refer to as InteractionEssentialsSM. Interaction EssentialsSM are those behaviorsthat enable a leader to address both the personal andpractical needs of the individuals with whom he or sheis interacting, whether it’s a formal discussion (e.g., aperformance review), or an informal discussion such asa coaching situation. The Interaction Essentials thatmeet personal needs include those related to listening,empathy, and knowing how to best involve and supportothers. Practical needs, meanwhile, are met through theconsistent use of an interaction process that makes surethat the tasks at hand are achieved with the maximumefficiency.

We asked employees about leaders’ use of theInteraction Essentials. Their responses (Figure 1) pointto many of the deficiencies that leaders have in criticalleadership skill areas.

11

51% 49%

53% 47%

55% 45%

59% 41%

60% 40%

64% 36%

1. Does your manager ask for your ideas about how to solve problems?

2. Does your manager help you solve problems withoutsolving them for you?

3. Does your manager give you sufficient feedback on your performance?

4. In conversation, does your manager ask questions to ensure he/she understands what you are saying?

5. Does your manager adequately recognize your efforts/contributions?

6. Does your manager handle work conversations efficiently?

OnlySometimes

or Never

Most ofthe Timeor Always

QUESTIONS

Figure 1: Leaders’ Use of Interaction Essentials

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1 Recognized me appropriately

2 Supported me without taking over

3 Involved me in decisions

4 Listened to me

5 Took time to explain rationale for decisions

6 Took care to maintain my self-esteem

(top mentions in descending order)

Figure 2: What Leaders Do That Makes Them the Best

12

Figure 3: The Impact of Leader Quality

100%

80%

60%

40%

20%

0%

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11%

98%94%100%

80%

60%

40%

20%

0%

5%

Consistent use of the Interaction Essentials is key to

leader effectiveness. Given the very high proportion of

employees feeling that their leader only sometimes or

never uses these essentials, it is no wonder employees

often feel that their leader is doing more harm than good.

These skills aren’t called essential for no reason.

Employees of leaders who focus on the Interaction

Essentials consider their leaders more effective, are

more motivated, and are more likely to be productive.

“MY CURRENT BOSS JUST CAN’T COMPARE WITH MY BEST-EVER BOSS”

We asked employees to compare their current boss with

the individual they would identify as their best-ever

leader. We asked a simple but powerful question:

“Thinking about the best manager you ever had, what

did he/she do that made them the best?” Respondents

consistently told us that what set their best-ever leader

apart was a propensity for recognition and for providing

the right degree of support without stepping in and

taking over. They also said that their best-ever leader

was adept at involving team members when making

decisions (Figure 2).

Perhaps not surprisingly, employees stated clearly

they are not looking for their leader to be a friend:

“Took time to socialize with me” and “Asked about my

hobbies and interests” came at the bottom of the list of

behaviors that set best-ever leaders apart.

The survey results revealed significant gaps in perform-

ance between current and best-ever leaders (Figure 3).

The best leaders are consistent and demonstrate positive

leadership behaviors and, as the research demonstrates,

employees respond by being more motivated.

The biggest gap in performance between employees’

current leaders and their best-ever leaders is in helping

employees be more productive. Only 56 percent of

employees reported that their current leader helps them

be more productive, whereas 79 percent reported that

their best-ever leader helped them be more productive.

These findings and others are included in the full Lessons for

Leaders from the People Who Matter study. The study also discusses the implications of the findings and provides key take-aways for HR and OD professionals.

Patterson S. (Pete) Weaver is DDI’s senior vice president of leadership solutions and chief learning officer. Simon Mitchell is DDI’s European marketing director.

WHY MOST EMPLOYEES DON’T WANT TO BE LEADERS

While only about half (45 percent) of employees surveyed think

they could be more effective than their boss, just 46 percent

would actually want their boss’ job.

Among the reasons they cited:

• “Far too much stress. Being expected to produce more

and more results with fewer and fewer resources (people,

supplies, etc.).”

• “Some of my coworkers are hard to work with. I would

not want to manage them.”

• “It involves many aspects of running this business that I am

not interested in. I think his job would be terribly boring and,

frankly, I find that quite off-putting.”

• “Not worth the stress.”

• “I don't want that much responsibility. I like my 8-5 job.”

I feel motivated to give my

best to my managerMy manager does a good job

helping me be more productive

Employees of WORST managers* (bottom 20%)

Employees of BEST managers* (top 20%)

*Best/Worst managers based on employee perception.

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13

BULLY-PROOFING THE WORKPLACEThe best way to deal with bullies is to not hire them in the first place.

Here’s how.

Gossip.

Snide remarks in front

of others.

An “in crowd” that

excludes others.

Spreading untrue rumors.

These are classic bullying tactics that

most of us have, unfortunately, experi-

enced at some point in our adoles-

cence, and the things that make many

glad to have their high school years

behind them. But what happens when

these bullying tactics jump from the

high school hallways to the cubicle

maze? From lunchroom to board-

room? After all, bullies do get older—

and not all “grow up.”

Workplace bullying is a very real, and

often serious, problem. It is defined by

the Workplace Bullying Institute as

“repeated, health-harming mistreat-

ment of one or more persons (the tar-

gets) by one or more perpetrators that

takes one or more of the following

forms: verbal abuse, offensive con-

duct/behaviors (including non-verbal)

which are threatening, humiliating, or

intimidating, or work interference—

sabotage—which prevents work from

getting done.” A 2010 survey by the

same organization found that 35 per-

cent of adults experienced some form

of bullying, and an additional 15 per-

cent reported witnessing it happening

to others, meaning that half of all

employees have had personal expo-

sure to these damaging events.

For the targets of bullying, the effects

of this stress can impact both their per-

sonal lives and their physical and

mental health. Research done on hos-

pital workers in the U.K. revealed that

nurses reporting to a supervisor who

lacked respect, fairness, or sensitivity

had a 20 percent greater risk of heart

disease than those reporting to a con-

siderate and empathetic supervisor.

Another large-scale study found that

bullying by supervisors or co-workers

lowered job satisfaction, generated

emotional exhaustion and depression,

and led them to consider quitting.

While it’s difficult to estimate a dollar

amount of lost productivity because

of bullying, as talent management

professionals, we know unequivocally

that the effects of low engagement,

turnover, and team dysfunction have a

direct correlation to an organization’s

bottom line.

One of the challenges of workplace

bullying is that it can be subtle and dif-

ficult to prove. If the supervisor is the

bully, the employee may be reluctant

to even raise the issue with HR for fear

of retaliation or job loss. If the bully is

a peer, it becomes a matter of one

employee’s word against another’s

and, even then, the behavior is sub-

jective. Was it bullying or warranted

constructive criticism? Good natured

ribbing or mean-spirited degradation?

For any organization that values its

employee morale and wants to avoid

becoming a workplace that workers

dread coming to each day, bullying is

an issue that needs to be considered

and addressed by leaders at all levels.

In fact, legislation has been proposed

in more than a dozen U.S. states

to address the phenomenon and

increase accountability. Internationally,

several countries, including Australia,

have enacted laws that include jail

time for bullies.

The most effective way to bully-proof

your organization is to simply not hire

bullies. The more non-bullies in your

company directory, the less likely bul-

lying behavior will be tolerated. But, of

course, everyone is on their best

behavior during the hiring process,

and in real life, bullies just aren’t as

easy to spot as the cartoon variety,

with menacing scowls and slingshots

BY SCOTT ERKER, PH.D. AND EVAN SINAR, PH.D.

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in their back pockets. Myopic hiring

tools that look only at what someone

has achieved but that ignore how they

got there can even favor bullies whose

success has come at others’ expense.

Armed with a good selection system

and an understanding of what bully-

prone attributes, experiences, and

behaviors look like, we contend that

you can, in fact, select out bullies.

There are two key strategies when

using your selection system to flag

bullies: identify characteristics that are

predictive of bullying, and identify

characteristics that are opposite of, or

counter to, bullying behaviors. And,

like with any selection situation, a

multi-faceted approach using a mix of

tools (pre-employment assessments,

job simulations, and interviews) is

most successful.

PRE-EMPLOYMENT ASSESSMENTS

Pre-employment assessments (or

tests) can be an effective tool for col-

lecting predictive information about

bullying behaviors by looking for anti-

bullying behavior, such as identifying

evidence that the candidate enjoys

building relationships and supporting

coworkers and customers.

For situational judgment assessments,

which assess a candidate’s approach

to solving work-related problems, they

can be scored to select those who

choose alternatives more supportive

of a collaborative environment.

If you use personality assessments, in

which candidates report about their

attitudes toward work and others, cer-

tain characteristics can be measured

that generally identify people who will

get along well with others, aren’t prone

to bursts of anger, work well under

stress, and care about co-workers.

JOB SIMULATIONS

Job simulations can be especially

effective at identifying productive work

behaviors. Job candidates, however,

are keenly aware of their actions and

will be on their best behavior—they

most likely aren’t going to berate the

assessors or the role players (although,

amazingly, we have seen it happen).

But you can present situations that

provide a chance for the candidate to

demonstrate counter-bullying behav-

iors, such as teamwork and relation-

ship-building behaviors. For example,

what do they do when a coworker or

direct report makes a mistake that

angers a customer? A non-bully-prone

candidate will likely respond to the sit-

uation with behaviors illustrating

empathy and understanding prior to

jumping in to solve the problem.

INTERVIEWS

The interview can also be tailored to

assess bullying. We know that past

behavior predicts future behavior, and

a behavior-based interviewing system

is therefore the most effective type of

interview for predicting job success.

For the same reasons, it can also be

an accurate predictor of bullying.

Questions such as “Tell me about a

time when you had conflict with a

team member. How did you resolve

the situation?” are ways to bring to

light bullying tendencies. A more pos-

itive spin would be to ask a question

about a time or situation in which the

candidate recognized that a co-worker

needed help.

As with any other selection objective,

selecting to avoid bullies is about risk

reduction, and it’s impossible to

reduce that risk to zero. But if you set

the bar high on interpersonal skills

and look across your selection data

for illustrations of a candidate’s empa-

thy, agreeableness, emotional stability,

and relationship building skills, your

selection system becomes a powerful

tool in creating a more positive and

productive work environment.

Learn more about DDI’s testing and simu-lation solutions, as well as our TargetedSelection® behavioral interviewing system.

About the authors

14

Scott Erker, Ph.D., is DDI’s senior vice president of selection solutions.

Evan Sinar, Ph.D., is a manager in DDI’s assessment technology group.

Check out The Essential Guide to Interaction Essentials.

This guide shows how to get your leaders “back to basics” and

develop the skills they need most. Get your FREE COPY.

© Development Dimensions International, Inc. MMXII. All rights reserved.

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15

Leaders Think They Exhibit Innovation Behaviors. Employees Disagree.

On every set of leader behaviors linked

to the innovation challenges, leaders

reported agreement ratings considerably

higher than employees rated their own

leaders. The leader-employee gap

in agreement ranged from a massive

29 percent for behaviors reflecting

Challenge Current Perspectives and

Drive Discipline, to a still troublingly high

23 percent for behaviors associated with

Inspire Curiosity.

We asked all respondents to rate theirorganization’s commitment to innovation,ranging from “Very Strong” to “Very Weak.”We then compared these answers with theratings of leaders’ innovation-related behaviorsby the leaders themselves and by employees.Predictably, when organizational commitmentto innovation is high, leaders give themselveshigh ratings—and employees rate leadershighly, as well.

Telling Number:

58TRENDTRACKER

Your Biggest Barrier to Innovation:More Ideas or Better Leaders?DDI partnered with LUMA Institute to identify four critical innovationchallenges—Inspire Curiosity, Challenge Current Perspectives, CreateFreedom, and Drive Discipline—and 20 leader behaviors directlyrelated to those challenges. To gauge the prevalence of thesebehaviors, we surveyed 513 leaders and 514 non-leader employees in the U.S. The complete findings are included in the study report,Creating the Conditions for Sustainable Innovation: The LeadershipImperative.

✪ The full report can be downloaded at www.ddiworld.com/GO.

OrganizationalCommitment Is Critical

Percent of first-level leaders who agreethat they engage in behaviors thatencourage their people to InspireCuriosity. By comparison, 71 percentof senior-level leaders agree that theythemselves engage in these behaviors.

Source: Creating the Conditions forSustainable Innovation: The LeadershipImperative

AGREEMENT RATINGS OF LEADERS AND EMPLOYEES BY INNOVATION CHALLENGE

80%

70%

60%

50%

40%

30%

20%

10%

0%

Very Weak Weak Mixed Strong Very Strong

Leaders % Agree Employees % Agree

ORGANIZATIONAL COMMITMENT TO INNOVATION AND PREVALENCE OF LEADER INNOVATION-RELATED BEHAVIORS

80%

70%

60%

50%

40%

30%

20%

10%

0%

Inspire Curiosity Challenge Current

Perspectives

Create Freedom Drive Discipline

Leaders % Agree Employees % Agree

64%

71% 69% 69%

41% 42% 41% 40%

© Development Dimensions International, Inc. MMXII. All rights reserved.

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DDI ONTWITTERWWW.TWITTER.COM/DDIWORLD

DDI’SAWARDSSHELF FILLS UP!Forgive us if we toot our own

horn, as DDI is proud to have

been recognized by multiple third

parties in recent months for our

work with clients and our innova-

tions. Here’s a rundown of the

awards YOU helped us win!

Taleo’s 2012 Partner of The YearDDI was named the recipient of Taleo’s 2012 Partner of the Year award, in recog-

nition of DDI and Taleo’s lengthy history of collaboration. This award acknowledges

the degree to which our clients count on us for seamless and easy integration with

their Taleo systems.

DDI and Taleo have worked together since 2003, pairing technology and content

to offer the best products available from two industry leaders renowned for their

best practices solutions. “Taleo and DDI are the best kind of partners—we each

have our own strengths that support each other’s mutual goal of building extraor-

dinary talent,” says Bruce Marks, director of global strategic partnerships for DDI.

Each year more than 1 million DDI assessments are delivered through Taleo

Passport integrations.

Additionally, DDI provides its industry-leading competency library to Taleo. The

DDI competencies work across the Taleo platform, including the recruiting,

performance, learning, and succession modules. They form a foundation on which

to build a solid talent management solution for companies around the world.

WHAT’S GOING ON

16

✪ Podcasts

✪ Research Reports

✪ Video

✪ Bonus Content

Visit www.ddiworld.com/GOGO

DEE

P!

Top 20 LeadershipTraining Companies

DDI has been named a Top 20 Leadership Training Company

by TrainingIndustry.com. The “Top 20” list includes those leaders

in the training industry that demonstrate experience and excellence in pro-

viding leadership training services to a variety of clients. Selection of the Top

20 Leadership Training Companies was based on multiple criteria, including

thought leadership and influence on the leadership training industry, industry

recognition and innovation, breadth of programs and audiences served, and

delivery methods offered.

© Development Dimensions International, Inc. MMXII. All rights reserved.

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Chief Learning Officer Magazine’sExcellence in E-Learning Award DDI’s Virtual Classroom technology was announced as a silver winner of ChiefLearning Officer’s Learning in Practice Award for Excellence in E-learning. This

award is presented to a provider that has recently rolled out an innovative and

effective e-learning program for a client. We were recognized for helping

Nissan train 60 high-potential leaders from various business functions in more

than 25 countries with no travel budget. Thanks, Nissan, for making Virtual

Classroom the next best thing to being there. Check out the story on our work

with Nissan on page 20.

GOAN “AWARD-WINNING”MAGAZINE

GO won a prestigious “Gold”

Hermes Creative Award from

the Association of Marketing and

Communication Professionals

(AMCP). Judges reviewed 4,700

entries from throughout the world.

Less than 20 percent were awarded

the “Gold” ranking, which, according

to the industry-expert AMCP judges,

is deemed to “exceed the high

standards of the industry norm.”

17

IMPROVE QUALITY OF HIRES with DDI’s Improved Pre-employment TestsLooking to reduce early turnover and improve the quality of your new hires and promotions? Getting the right

people into the right positions has tremendous impact on the success of an organization, and adding tests to

your selection system is one of the most efficient ways to improve new-hire performance. Tests increase hir-

ing efficiency by getting the best candidates in front of hiring managers faster.

We’re proud to announce the release of our new approach to pre-employment assessment, coming in late 2012.

Built with the candidate in mind, DDI’s tests feature improved new content. Each test question previews for

the candidate important job information and creates an engaging assessment experience—all while providing

a realistic preview of an applicant’s performance. Plus, our tests are hosted by a new technology engine

designed for flexibility and easy customization, enabling you to maintain your employment brand throughout

the selection process.

See information on our new assessment solutions. ✪

Top Training Supplier, TopRecommended Training Company in China DDI China recently earned the “Top Recommended Training Company Award

2011” from the HR Association, and was also recognized as a top training

supplier in China by Universal Ideas, a training directory publisher.

© Development Dimensions International, Inc. MMXII. All rights reserved.

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18

Our new book celebrates how the science behind DDI transforms lives in and out of the workplace.

SPARKING CHANGE,TOUCHING LIVES

Bob Rogers, DDI’s president, often tells of an encounter he

had at a client golf outing more than three decades ago.

A man approached him at the first tee and, upon learning that

Bob was with DDI, gave him a hug and said, “DDI saved

my life.”

That story, which Bob shares in its entirety, leads off his intro-

duction to SPARK! a just-published collection of true stories

gathered from our clients and associates. The stories all

share one thing in common: They tell of individuals who

transformed their work and personal lives in a meaningful way

by using skills taught by DDI.

Here’s a sneak peak at some of the transformational

stories included in SPARK!

Now looking back at my childhood and life, I always

loved to see others develop and work out problems for

themselves. Now I have a job that allows me to be me

and help to inspire development in others. I found my

calling and DDI was the one to show me it was possible.

DECLAN BRANIGAN, TRAINING AND DEVELOPMENT MANAGER, AMSTERDAM, THE NETHERLANDS

DDI helped one of my first-line managers through the

workshop Coaching for Improvement. The first-line

manager had a direct report who was very resistant to

advice or suggestions for improvement. After attending

the training, the first-line manager implemented the

Discussion Planner in his team. By using the planner in a

couple of coaching sessions, the direct report’s mindset

totally changed. He showed tremendous improvement in

his attitude and sales, and he is helping his manager in

supporting other coworkers. Thanks to DDI for chang-

ing the lives of both associates.

A CLIENT FROM A PHARMACEUTICAL COMPANYKARACHI, PAKISTAN

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We spent long days and late nights learning about and

presenting DDI programs. I was dead tired after a stress-

ful and grueling week, sitting on the plane returning

home when it struck me—I could use the Key Principles

to improve my relationships and interactions at work

and at home. It was literally a life-changing revelation. I

continue to this day to do my best to model these Key

Principles. I’m not guaranteeing that you will have the

same life-changing experience. I can tell you that every

time I get into trouble with my wife, I look back and say

to myself, “If only I had been more empathetic, or I

should have asked her for ideas, why didn’t I do a better

job of maintaining her self-esteem, etc.”

RICK BLACKSTONE, SPHR, MS, EVENFLO COMPANY, INC., DAYTON, OHIO, USA

I was asked to facilitate a course on building com-

mitment for a group of directors and physicians at a

health care system I worked for before I began my

career at DDI.

One of the physicians was not only someone I knew, but

also someone I knew didn’t want to be in the session.

He pushed back throughout the session by not using the

skills, tools and, most especially, the Discussion

Planner with his patients. Two weeks after the training I

received an e-mail from the physician, saying:

“I just wanted to write to let you know of something

that occurred after the class I participated in. I have a

15-year-old son who has numerous behavior problems

that we have not been able to deal with. We were

getting ready to create an intervention for him to save

him from his destructive tendencies. The night I came

home from your class, my wife and I were discussing

the steps in the intervention with heavy hearts.

“As I opened my briefcase, the form [Discussion

Planner] we practiced lay on top. I pulled it out and

completed each section as if I were talking to him. I

focused on listening first and asking him how he felt. I

recognized that I did not do that well in the past. I went

to my son’s room and started the dialogue. In the past

two weeks, there have been more conversations than

have occurred in our entire relationship. I know I was

a difficult student, but I wanted you to know that his

behavior has turned around 100 percent. I have a new

son, and there will be no intervention. I do believe that

this can work.”

The physician told me that he would not use the

Discussion Planner with his patients, but I have heard

him on many occasions use Key Principles when com-

municating with patients and family members.

DIANA POWELL, DDIKENTUCKY, USA

SPARK! also includes numerous stories from people

who used skills and concepts learned in DDI programs

to make a difference in their communities, in settings

such as churches, non-profits, a youth camp, and a

write-in campaign for school board, among others.

HAVE A SPARK! STORY TO SHARE? WE WANT TO HEAR IT!

Do you have a great story to tell about how DDI training changed your life or other’s lives?We encourage you to share it so we can consider it for inclusion in a future edition ofSPARK! or on our web site. Share your story atwww.ddiworld.com/SPARK.

Access an ELECTRONIC COPY

of SPARK!

19 © Development Dimensions International, Inc. MMXII. All rights reserved.

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GO TO WORK

20

Shahnawaz Mehdi and Nadia Trimmel are rising

operational leaders within Nissan: Mehdi is an IT and

logistics manager, while Trimmel is a senior product man-

ager for commercial vehicles. Both were participants in

Nissan’s Global Organizational Leadership Development

(GOLD) program for high-potential leaders, which impart-

ed critical leadership skills, such as coaching, conducting

effective conversations, and managing performance.

What’s especially intriguing about Mehdi and Trimmel

aren’t these similarities. It’s this: Mehdi lives and works

in Dubai, United Arab Emirates; Trimmel nearly 4,000

miles away in Pretoria, South Africa. And while both are

among the 60 leaders from around the world who have

participated in the GOLD program, they did so without

ever leaving their home countries.

Many organizations turn to e-learning to save time and

money; however, the GOLD program is a fully interac-

tive leadership development curriculum that combines

e-learning with DDI’s Virtual Classroom technology to

deliver courses that are led remotely by a live facilitator.

It’s an innovation that makes it possible for Nissan to do

what was only a dream a few years ago: bring together a

geographically dispersed population of leaders, provide

an effective leadership development program, and give

them opportunities to interact with each other in real

time—with no travel costs.

Nissan has employed DDI’s Virtual Classroom technology to develop—and connect—high-potential leaders in important global markets.

DRIVING CONNECTIONS

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21

A NEED TEMPERED BY A LIMITED BUDGET

One of the world’s largest car companies, Nissan has

31 production facilities in 16 countries and sales in 160

countries. To grow further, Nissan is targeting emerging

global markets, where it needs to have strong leaders.

It has identified 60 high-potential operational leaders

who could, with some development, move into demand-

ing higher-level leadership roles in the future. These

leaders are based in more than 25 countries covering a

broad range of regions, including Latin America, Europe,

Africa, Asia, and Australia.

Though their levels, locations, and functions

are diverse, as a group they require a uni-

form set of leadership skills that are

consistent with Nissan’s vision, values,

and culture, and which support Nissan’s

global business.

The talent champion behind the GOLD

program was Darci Padilha, who was

Nissan’s Africa, Middle East, and India

Regional HR manager before departing the compa-

ny earlier this year, and who started work on designing

the program in 2010 from Nissan Headquarters in Japan.

She says Nissan recognized the importance of developing

the high-potential leader population.

“We needed a program to help all of the leaders be at the

same level of expertise,” she says. “We also wanted to be

able to take them to the next level of leadership through a

program where we could bring them together and help

them create connections.”

But, she says, because the leaders were tucked away in all

corners of the globe, it was logistically challenging, pro-

hibitively expensive, and time-consuming to bring every-

one together for training.

She also points out that a robust leadership development

curriculum would require them to gather for multiple

sessions, with time built in between the sessions for them

to practice, apply, and hone their new skills through

on-the-job application.

“All our budgets for travel were frozen and we needed to

do something,” Padilha recalls. “So, we started looking

for alternatives to develop our talent.”

OPTIMAL TRAINING EFFICIENCY

Padilha and her team engaged DDI to help design the

GOLD program. It was built around a curriculum of

courses from DDI’s award-winning Interaction

Management®: Exceptional Leaders . . . Extraordinary

Results® leadership development system. These courses

would provide the skills Nissan’s high-potential leaders

needed to be optimally effective and establish a

common leadership language across locations.

Three of the courses, Setting Performance

Expectations, Reviewing Performance

Progress, and Developing Others, were

tabbed to be delivered as web-based

courses supported by virtual practice

labs, where participants engage in inter-

active activities with their peers and receive

facilitator guidance and coaching, along with

valuable peer feedback on their skills. The other

four courses, which included Essentials of Leadership,

Leading Change, Reaching Agreement, and Motivating

Others, were slated to be delivered in real-time using

DDI’s Virtual Classroom technology.

DDI’s innovative Virtual Classroom is a synchronous learn-

ing environment designed to mirror the live presentation

and participant interaction of an actual classroom.

Participants connect from their location via a web-con-

ferencing platform, and experience the course as it is

facilitated in real time by a DDI facilitator.

During the course, they can ask and respond to questions,

just as in a live classroom. They also can interact using

feedback tools, such as virtual white boards, annotation

tools, and online polling questions. The Virtual

Classroom platform even enables the facilitator to parti-

tion participants into small groups to complete team exer-

cises, and engage in role plays.

“Because it wasreally dynamic,the technologyallowed for lotsof interaction.”

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GO

TO

WO

RK

Best of all is that the Virtual Classroom is designed to

drive behavior change, just as effectively as a traditional

classroom course or a self-paced web-based course. DDI

research shows that courses delivered through the Virtual

Classroom are equally effective at changing behavior.

Another important component built into the GOLD pro-

gram was DDI’s Leadership Mirror® multirater feedback

tool. Participants were able to use this tool prior to going

through the courses to identify their own individual

strengths and development opportunities. This helped

them target the specific skills imparted in the courses that

they most needed to develop.

“EXCITING AND INTERESTING”

The 60 high-potential leaders were divided

into three cohort groups of 20 that met

virtually eight times, about once a month,

in 2011. Prior to the first session, the

participants completed a 30-minute orien-

tation session on the Virtual Classroom

platform.

The 20 leaders who made up the first cohort group

hailed from 10 different countries and none of them had

ever met one another. Each leader was asked to introduce

himself or herself to the cohort group, and also provide a

photo that was uploaded to the virtual classroom platform

so that participants could associate a face with a name and

a voice during the course sessions.

Even though the courses were delivered virtually, the

relationship-building proved real, as participants began

interacting and networking with one another.

“We had people from Australia who started the modules at

8 p.m. their time and finished at midnight. I was really

concerned for how to keep them motivated using remote

technology for four hours, when they were starting that

late,” recalls Padilha. “But because it was really dynamic,

the technology allowed for lots of interactions, and the

facilitator really pushed everyone to participate.”

Padilha says that participants developed such a high levelof comfort with the virtual classroom experience and witheach other that they would even engage in off-topic

conversations—with their co-participants that they hadnever actually met—in the time they were waiting for thecourse sessions to begin.

“While e-learning is common in Nissan, I can tell you thatthe virtual classroom approach that we applied in theGOLD program was viewed as especially exciting andinteresting,” says Padilha.

Mehdi felt that the virtual classroom captured many of theadvantages of a live course. “Most of the time we did notfeel the distance between the teacher and the learners. Itfelt like all of us were sitting in the same classroom. That

was helpful. You are able to measure yourselfimmediately in terms of where you stand.”

“You could interact in real time even

though you were in different countries,”

says Trimmel. “You could see what oth-

ers were putting on the board. You had

the functionality of working with a group

of three, four, five people at time. You also

could learn about their roles in the different

countries.”

RESULTS COMPARABLE TO THE CLASSROOM

Nissan worked with DDI to measure the program’s effec-

tiveness at changing leader behavior in targeted skill areas

such as listening, providing feedback, and having effective

conversations. These results were compared with the aver-

age measured behavior change realized from classroom

delivery of DDI leadership courses.

After the training, there was a 31-point improvement in

the percentage of participants who said they displayed the

targeted leadership behaviors (from 54 to 85 percent). This

was almost equal to the 32-percentage-point improvement

that had been realized in the average classroom delivery.

Observer ratings showed an even more dramatic differ-

ence. Observers said the percentage of leaders displaying

the targeted behaviors jumped by 30 percentage points

(from 57 to 87 percent) after the Virtual Classroom train-

ing. This was much higher than the 17 percentage-point

average gain in observer ratings for leaders who completed

the courses in a traditional classroom setting.

22

“I would say this program was

nearly perfect.”

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The impact of the training goes beyond the numbers,

Padilha insists.

“When we talked with the leaders in person, we received

good feedback. The participants were motivated because

Nissan was investing in them and they could apply what

they learned to both their jobs and their lives.”

Mehdi says that the courses had a definite impact on how

he does his job. “The training has helped me when meet-

ing with my subordinates who are having some difficulty,”

he says. “I get specific feedback from my subordinates

and they say they like my management style and they are

comfortable working with me.”

Trimmel says that what she found most valuable was how

the GOLD program reinforced the importance of interact-

ing effectively with and working through others.

“It’s the people around you who make it possible to achieve

goals. They actually give you the results that you want.”

Looking back on the effectiveness of the GOLD program,

Padilha is understandably proud of the results.

“From my point of view, I would say that this program

was nearly perfect, as it addressed all of our goals we had

set initially for our talent in the growing regions.”

To learn more about Virtual Classroom, Interaction Management®:Exceptional Leaders . . . Extraordinary Results®, and LeadershipMirror®.

23

HOW TO . . .

MAKE E-LEARNINGWORKWhen asked about advice to others

considering implementing an initiative

such as Nissan’s GOLD program, Darci

Padilha offers the following:

1. GOOD COMMUNICATION.

And good software. “We worked with the

individual IT departments to confirm

everyone could access the Virtual

Classroom courses and troubleshoot

issues in advance. Then we went the

extra mile to orient participants and make

sure they were comfortable with using the

technology. That made a big difference.”

2. CREATE WARMTH.

To make the virtual training environment

more friendly and personable, partici-

pants submitted photographs of them-

selves for display on-screen during the

course sessions. Padilha also says that

participants were encouraged to interact

with one another, both during and outside

of the course sessions. “We sought to

create a warm environment where people

would feel connected and not a cold envi-

ronment where they would just feel like

they were sitting in their office alone with

their computer.”

3. DON’T FEAR THE NEW.

“Don’t be afraid to test things. The orga-

nization’s culture will determine whether

or not you will be successful. But people

should be encouraged to at least try the

new approach and then they can form

their own opinions about the technology.”

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The author of Reverse Innovation predictsyour next big innovation will come froman emerging market—and that you needto manage talent differently to make ithappen.

Vijay Govindarajan is a Dartmouth College business professor,

acclaimed author, and former “chief innovation consultant” at GE.

He’s made news over the past few years as one of the central

figures in a movement to come up with design ideas for a $300

house for impoverished countries. The goal is to design, build,

and deploy a simple dwelling that keeps a family safe from the

weather, allows them to sleep at night, and gives them a bit

of dignity. The $300 house project is a social strategy, but organ-

izations are looking at creating new products for developing

countries as business strategies. And it’s out of that mindset that

Govindarajan is turning his focus to innovating innovation—but

this time, doing it in reverse.

Whereas many organizations look for the next big product idea

to come from—and to serve—the most developed economies,

Govindarajan thinks the markets with the most promise are in

developing ones. As he points out, the products designed for the

“poor world” are a promising profit center, and even marketable

in the richer ones. He calls this concept “reverse innovation,”

and it’s both the topic and the title of his newest book.

To be successful at reverse innovation: “The whole game is HR,”

Govindarajan says. Attracting, developing, and retaining talent in

emerging markets is the most critical factor to driving innovation

there. Reverse Innovation is packed with examples of compa-

nies such as Logitech, P&G, GE, PepsiCo and Deere &

Company that have done it well. In this interview with GO, he

offers additional insights into how HR can support these efforts

and be catalysts of reverse innovation.

GO: What is reverse innovation?

Govindarajan: Historically, multinationals innovated in rich

countries and tried to sell those same products in poor countries.

Reverse innovation is doing exactly the opposite. An example I

give in my book is Deere & Company. They originally tried to sell

their American tractors to Indian farmers. It wasn’t until they

used a locally based team to design a smaller, cheaper tractor

that served more purposes that they had success in India. And

Coffee on the GO withVIJAYGOVINDARAJAN

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COFFEE ON THE GO

the tractor that they designed for that

market is the basis of new product lines

for China and other markets.

GO: Tell us more about HR’s role.

Govindarajan: To support this kind of

innovation, it’s about building the orga-

nizational capability through talent. And

that’s up to HR professionals. Building

R&D capability, marketing capability,

supply chain capability, and others in

poor countries is going to be the single

biggest HR challenge going forward.

And in countries like India and China,

it’s a paradox because there is scarcity

amongst plenty. For example, even

though there are a lot of engineers who

are graduating in India and China, the

top engineers are the same engineers

everybody wants. The scarcity is even

more acute at the management level

and leadership level if you want to

recruit somebody who’s got 10 to 15

years’ experience. There is a tremen-

dous war for talent and winning the war

is the key to success in reverse innova-

tion—and it’s the complete responsibility

of HR people. And therefore, a compa-

ny’s human resource function has to be

at the cutting edge.

GO: What are some of the otherconsiderations for HR to address tohelp drive innovation in developingcountries?

Govindarajan: In the U.S., it takes

about four months to place all of our

MBA students from top schools like

Harvard and Wharton in jobs. In India,

it takes just four hours to place all their

top graduates. You can’t do multiple

interviews; you have to make your deci-

sion very fast. And consider this:

Infosys in India recruits 40,000 software

engineers every year: 40,000! Imagine

how you develop this huge group!

The recruits in India have tremendous

technical talent, but they lack what I

call “the last mile.” They don’t have

good interpersonal, problem-solving, or

critical-thinking skills, so you have to

have your own corporate university

to develop these skills.

GO: You propose the creation oflocal growth teams (LGTs) to drivereverse innovation. These are cross-functional, entrepreneurialunits located in the targetedemerging market. How can HRsupport this approach?

Govindarajan: HR needs to step up

and be keepers of the talent. The LGT

is nothing more than building teams in

poor countries. So it’s all about HR. The

whole game is HR!

GO: What are some of the keyskills necessary for an LGT teammember?

Govindarajan: Actually, HR people can

play a role in picking leaders for three

roles related to LGTs. Number one is

the leader of the LGT. They have to be

picked carefully because the leader of

the LGT should not be just technically

competent, but also a humble person

who can work in partnership with the

global organization. The second is lead-

ers of the global teams the LGTs will

work with, such as a global business

unit leader. These leaders typically

command greater resources and are

more extensively connected within

an organization, but sometimes their

interests can seem in conflict. So they

also have to be someone who is willing

to work with the LGT. And third is the

leader who supervises both of these

people—typically a senior vice presi-

dent. That person has to be able to

resolve conflict because no matter who

you put in charge of an LGT or a global

business unit, you’re going to have con-

flicts. So, conflict resolution is a critical

requirement for the leader at the top.

GO: In your book you talk about thevalue of technical experts: eitherlocal people who provide a uniqueview of the market’s specific needs,or traveling experts who bring theexpertise needed to help a localteam solve the problem. Do youthink there’s a missed opportunityto focus on high potential experts?

Govindarajan: Absolutely. They are

prime candidates for expat assign-

ments to drive reverse innovation.

When we move the technical people,

they take their knowledge and capability

with them. It also builds a sense

of humility because the technical

expert/expat begins to understand and

build a global mindset. I always say,

move them to countries that are as

disconnected as possible. I don’t mean

physical distance; I mean cultural,

economic, linguistic, and linguistically

diverse countries that are as distant

from each other as possible so it really

doubles up that global mindset, which is

what is critical for reverse innovation.

Vijay Govindarajan’s latest book,Reverse Innovation, is available now at bookstores and through major online book retailers.

View a video of VijayGovindarajan talking about reverse innovation.

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CNBC’s Asia Business Leaders Awards have been recognizing the top leaders in Asia for 10 years.

Last year marked the 10th anniversary of CNBC’s Asia

Business Leaders Awards. The annual awards celebrate

and recognize vision, excellence, and the spirit of achieve-

ment of business leaders across the Asia-Pacific region.

As CNBC’s Research Partner, DDI conducts in-depth,

face-to-face interviews with CEOs shortlisted by The

University of Chicago Booth School of Business on a

number of financial indicators. The interviews assess

the CEOs’ leadership qualities based on criteria such as

strategy formulation and execution, talent management,

innovation, and sustainability. Each year, DDI interviews

dozens of CEOs in China, India, Indonesia, Japan, Korea,

Malaysia, the Philippines, Singapore, Taiwan, and Thailand.

Two of the winners honored last November at the awards

ceremony in Singapore include Carlos Ghosn, chairman

and CEO of Nissan; and Dr. Pailin Chuchottaworn,

president and CEO of PTT, who was nominated for the

award in his role as president of IRPC PCL. Both men are

a testament not only to the quality of the award winners,

but also to the high level of leadership talent in the region.

CNBC Asia Business Leaders AwardCarlos Ghosn, Chairman & CEO,Nissan Motor Co., Ltd.

An exceptional example of the quality

of executives found at the top of some

of the leading organizations in Asia,

Carlos Ghosn has been lauded for his

visionary and impactful leadership of

Nissan. He was named the 2011

CNBC Asia Business Leaders Award

recipient “for inspiring growth for his

company, while keeping in step with

global trends.”

At the time of Ghosn’s arrival in 1999, Nissan was a car

company in trouble, facing numerous challenges: including

a steep mountain of debt, shrinking market share, high

costs, overcapacity, outdated models, and a declining

brand. Through a series of successfully executed strategic

plans, Ghosn led one of the most amazing turnarounds in

the history of the global automotive industry.

CELEBRATING THE BEST!

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27

Today, Nissan (which maintains a strategic global alliance

with Renault, for which Ghosn also serves as chief execu-

tive) is operating from a position of strength and has ambi-

tious growth plans, especially in emerging global markets.

In addition, under Ghosn, Nissan has become one of

the world’s most environmentally conscious automakers,

introducing the Nissan LEAF, the world’s first mass-market

zero emission electric vehicle, and rolling out several envi-

ronmentally friendly initiatives.

Nissan’s ability to look confidently to the

future under Ghosn is on display in the

Nissan Power 88 business plan, which was

announced in June 2011 and is intended to

accelerate the company’s growth across new

markets and segments. Through the Power

88 strategy Nissan is taking a leadership

position in innovation by introducing 66 new

vehicles in six years covering 92 percent of all markets and

segments, and more than 90 new, advanced technologies.

Nissan also will continue its emphasis on “sustainable

mobility,” through the production and sales of zero-emis-

sion vehicles and low-emission technologies, and further

promote “mobility for all” through the introduction of dedi-

cated new cars and light commercial vehicles developed

for entry-level segments and emerging markets. “Nissan

Power 88 is the roadmap for our company’s profitable

growth,” Ghosn says.

Perhaps the best example of Ghosn’s strong leadership

came in the wake of the earthquake and tsunami that

devastated Japan in 2011. Under his direction, Nissan

contributed to the recovery effort by providing emergency

cash assistance, and also provided vehicles, supplies, and

humanitarian aid. In addition, the company began efforts

almost immediately to rebuild its damaged factories and

restore them to full capacity within a month after the

disaster—efforts that showed Nissan’s commitment to the

community, its employees, and its customers.

The information he shared with the Asia Business Leader

Award selection committee, as part of the awards process,

helps to illuminate what makes this remarkable executive

one of Asia’s—and the world’s—best.

STRATEGY AND EXECUTION

Ghosn’s ability to drive successful execution can be

attributed to his widely regarded reputation for setting high

performance expectations and ensuring that they are

achieved. Each strategic plan has clear lead/lag measures

that are rolled down from the top of the organization, and

he keeps his senior team focused on a small number of

key metrics. Also, he stresses the importance of attaining

buy-in on key strategies. He personally does

“road shows” to talk to senior managers/

employees throughout Nissan’s global oper-

ations and leverages Nissan’s internal web

site as an active communication vehicle.

“Strategic goals just don’t appear on day

one,” Ghosn says. “Before they are ever

announced, key internal leaders and other

stakeholders are aware of and help craft

many of the elements of the strategy. So, by the time the

strategy is introduced, there is already considerable buy-in.”

INVOLVING ALL LEVELS

The introduction of 66 new vehicles over a six-year period

under the Nissan Power 88 plan demonstrates the compa-

ny’s ability to innovate. While Ghosn ultimately is the one

responsible for driving innovation, he understands that the

executive suite isn’t—and can’t be—the sole source of

innovation.

“Ideas do not just come from leaders at the top. They come

from employees at all levels.”

DEVELOPING STRONG TALENT

Under Ghosn, Nissan developed a competency model that

serves as the basis for numerous HR systems, including

recruiting, development, succession, and performance

management. The organization also implemented leader-

ship development programs for leaders at all levels, from

executives down to frontline leaders, with what he calls

“a rich and active curriculum” combining basic leadership

skills with the development required for success in each

employee’s organizational function (manufacturing, market-

ing, engineering, etc.) One such program, the Global

Organizational Leadership Development program, is featured

in “Driving Connections” on page 20.

“Ideas do not just

come from leaders

at the top.

They come from

employees at

all levels.”

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BLUE CITIZENSHIP

“More than a manufacturer of cars, we see ourselves first

and foremost as a citizen of the earth,” says Ghosn. “We

call this way of thinking ‘Blue Citizenship.’”

Nissan conducts a variety of activities under the Blue

Citizenship banner, all tied to the company’s desire to pre-

serve “the blue Earth” and to be a corporate citizen that

coexists in harmony with the Earth and the people who

inhabit it. These activities, which are supported through

the Nissan Power 88 plan, range from actions on global

issues such as the conservation of the environment; proac-

tively giving back to the communities where employees live

and work, and where the company sells its products; pro-

moting diversity within Nissan as an intrinsic strength to

meet the diverse needs of customers; making personal

mobility available to as many people as possible; and

focusing on “real-world safety,” with a goal of significantly

reducing accident fatality rates.

Nissan’s response to the earthquake and tsunami crisis

was an excellent example of Blue Citizenship in action.

In addition to working quickly to bring its factories back

online, Ghosn says that the company made more than 100

vehicles available to support recovery efforts, contributed

150 million yen to relief efforts and also matched employee

donations—netting more than 450 million yen total.

These efforts not only made Nissan a shining example of

what organizations can and should do when faced with a

humanitarian crisis, but underscored why Ghosn is such an

admired business leader both in Asia and around the world.

CNBC Asia Business LeadersAwardDr. Pailin Chuchottaworn, President & CEO, PTT

Dr. Pailin Chuchottaworn understands

what it means to be a true talent

champion. He proved it as president

of IRPC, Asia’s first integrated petro-

chemical business, and he’s contin-

ued to reinforce it since becoming

president and CEO of PTT, IRPC’s

parent company and the national

energy company of Thailand. After

being named to the top spot at PTT in 2011, Dr. Pailin not

only demonstrated his deep commitment to talent but also

to people when Thailand was hit by devastating flooding.

During his tenure at IRPC, Dr. Pailin led a dramatic turn-

around, guided by a comprehensive and integrated strate-

gy that he formulated along with IRPC’s senior executives.

The strategy called for the restructuring of the organiza-

tion’s business into four core areas and set in motion proj-

ects aimed at increasing production efficiency, enhancing

asset utilization, developing environmentally friendly prod-

ucts, and expanding production of high-profit products.

Dr. Pailin drove strategy execution with an eye toward

change management and a strong emphasis on innova-

tion. But he also led with an especially strong focus on

IRPC’s talent. He put forth the vision that “every person

has the potential to grow and rise to the highest possible

position depending on his or her competency or intention,”

made talent a major priority in discussions among the

organization’s senior team, personally delivered courses

for mid-level leaders, and served as a mentor to three

executive vice presidents.

In addition, he also championed the creation of a formal

and systematic process for identifying, assessing, and

developing executive talent. Using the assessment data

gathered as part of this process, IRPC implemented a

highly successful development program, constructed as a

“learning journey,” for 29 vice presidents.

“In the last decade, we’ve seen growth,volatility, and uncertainty impact markets

across the globe. During these times, we’vealso seen stellar individuals whose vision and

strength has led corporate Asia forward.”

Satpal Brainch, president and managing director, CNBC International

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His efforts paid off. In addition to measurable improve-

ments attributable to the development programs, IRPC

swung from a loss of 18 billion baht in 2008 to a strong

position of profitability beginning in 2009.

When Dr. Pailin moved to the role of CEO of PTT (IRPC’s

parent company and largest shareholder), he brought with

him his strong track record and exceptional leadership

ability, as well as his emphasis on talent.

“One of the first things I announced to our management

team was that I am the owner of the human resource work

of PTT,” Dr. Pailin recalls. “I declared my intention to make

PTT a Fortune Global 100 company on the strength of

our people.” The DDI associates working with PTT on its

talent initiatives readily agree that Dr. Pailin backs up these

words with action.

But while he set about demonstrating his

commitment to PTT’s talent, his first months

on the job proved to be defined by a major

crisis: the worst flooding to hit Thailand in

50 years.

Under Dr. Pailin’s leadership, PTT took the

lead in alerting both the government and the

public to the severity of the flooding and also became

involved in meeting the challenges presented by the crisis.

“Literally, we were the first to alert the government that

there would be a big disaster coming,” he says.

PTT’s headquarters was used as an emergency manage-

ment center, and during the critical first days of the flood-

ing Dr. Pailin directed the company to devote its full

resources to addressing the crisis.

Sixty-five of Thailand’s 77 provinces experienced flooding,

and more than 800 people were killed. By the time the

waters had subsided, 12.8 million people had been affect-

ed, including about half of PTT’s workforce.

“Our first priority was to ensure security for the whole coun-

try, and the second was to do what we could to help those

who were affected,” Dr. Pailin says.

PTT was at the forefront in working to restore power to

stricken areas. Employees, meanwhile, volunteered for

rescue teams and participated in various aid initiatives,

including distributing food and supplies.

PTT’s focus was not only on providing assistance, but also

on helping Thailand recover. The company enacted a

recovery plan to address basic needs including sanitation,

public health, and habitation. Among the projects initiated

under the plan were restoring of temples, schools, and

public parks; dispatching mobile clinic units; the repair of

electrical appliances; car and agricultural engine inspec-

tion and reparation; and improving the quality of floodwa-

ter. PTT also made significant monetary contributions to

multiple relief funds.

“Our people united and met the crisis,” he says. “The com-

mitment of our people was on display, showing the public the

strength of our beliefs, our values, and the

quality of our people. We stand together in a

time of crisis.”

Dr. Pailin acknowledges that PTT’s highly vis-

ible efforts to do the right thing during the flood

crisis helped improve the organization’s public

image which, as a highly profitable energy

company, had been traditionally negative.

But behind all that PTT did during the flood relief and

recovery efforts was the strength of a leader who under-

stands the importance of his role, and the responsibility

that comes with it. With the floods now in the past, Dr.

Pailin is pleased to be able to focus on initiatives such as

PTT’s university that it created to develop “first-class man-

agers and leaders within PTT.” He also is personally

involved in launching an academy, which will educate lead-

ers from other companies on energy and conservation,

and establishing a leading public engineering and technol-

ogy research institute for Thailand.

“A leader is one who commits to lead the organization to its

goals,” Dr. Pailin says. “And it’s a commitment of a lifetime.

I know that some leaders see a leadership role as reward

for their hard work. But I feel that becoming a leader is just

the beginning of the hard work.”

See a video on the 10th annual Asia BusinessLeaders Awards at www.ddiworld.com.

“I feel that

becoming a leader

is just the

beginning of

the hard work.”

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3030

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ON-THE-GONow you can access and read GO on your mobile device. Same great articles and thought leadership . . . wherever you are!

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DDI Talent Management intelligence

>>> Barry Stern, Ph.D., on Driving and Sustaining the Work RevolutionIn a three-part, multimedia series, Barry sits down with his friend Julie

Clow, author of The Work Revolution: Freedom and Excellence for All, to

hear why she thinks we need a work revolution and how you can start one.

“The notion of creating an ‘idea-testing, rather than an idea-judging, culture’

resonates strongly for me, and yet I am struck by how few leaders I’ve

known through the years who seem truly dedicated to creating the space

for their folks to do just that without some fear of repercussion.”

>>> Evan Sinar, Ph.D., on Diversity, Innovation, Analytics, andImpact: Emerging Themes from the 2012 SIOP Conference

In his two-part blog, Evan offers up his insights on the many important

talent management topics covered at the annual Society for Industrial

and Organizational Psychology (SIOP) conference held earlier this year.

“The conference has also become increasingly practical in its focus, par-

ticularly in its investigations of leading-edge approaches and technologies.

In many cases, SIOP is the only reliable source for deep and data-driven

insights about the value produced by—and unrecognized risks of—these

new methods. These factors have contributed to enhanced interest in the

conference from talent management professionals.”

>>> Jennifer Pesci-Kelly on Fear of Failure: Lessons Learned at 2012 Bersin Impact conferenceJennifer shares her thoughts on some of the key themes discussed

at this thought-provoking industry event held in April.

“But the key is that leaders can shift the way they lead, the way they

listen, respond to ideas, relate to their teams and give permission to

fail to feed organizational agility—and the innovation journey.”

Follow DDI’s blog, Talent Management Intelligence, by visiting blogs.ddiworld.com

and sign up to receive the RSS feed via e-mail or through your favorite RSS reader.

Enjoy GO? Find out what else DDI has to say on our blog:

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