360 study wye

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IRS 360IRS 360° Assessment Study:° Assessment Study:Developing Great LeadersDeveloping Great Leaders

Jim TrinkaJim TrinkaDirector, Leadership and Organizational EffectivenessDirector, Leadership and Organizational Effectiveness

IRS Strategic Human ResourcesIRS Strategic Human Resources

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Motivations for this StudyMotivations for this StudyFeedback showed that while we had leaders Feedback showed that while we had leaders

complete 360° assessments, we did not do a complete 360° assessments, we did not do a great job of either interpreting the results or great job of either interpreting the results or customizing developmental improvementscustomizing developmental improvements

In a tight budget environment, we needed to In a tight budget environment, we needed to focus developmental efforts to achieve the focus developmental efforts to achieve the greatest impact on behavior and resultsgreatest impact on behavior and results

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Leadership Effectiveness Impacts Balanced Measures Leadership Effectiveness Impacts Balanced Measures

Data from The Extraordinary Leader, by Jack Zenger and Joe Folkman

19

14

9

02468

101214161820

Ave

rage

Per

cent

Tur

nove

r

Poor Leaders Good Leaders Great Leaders

Great leaders have lower

turnover

Employee Satisfaction

-1.2

2.4

4.5

-2

-1

0

1

2

3

4

5

Net

Inco

me

(mill

ions

)


Great leaders generate higher

net income

Business Results

39

49

68

0

10

20

30

40

50

60

70

Cus

tom

er S

atis

fact

ion

(%)


Great leaders havemore satisfied

customers

Customer SatisfactionLeadership Effectiveness – 360Assessed (Insurance Co.)

Leadership Effectiveness – 360Assessed (High Tech Co.)

Leadership Effectiveness – 360Assessed (Mortgage Bank)

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Leadership Effectiveness Impacts Employee Leadership Effectiveness Impacts Employee EngagementEngagement

22

30

3843 45

52 54

70

8084

10

20

30

40

50

60

70

80

90E

mpl

oyee

Eng

agem

ent

10 20 30 40 50 60 70 80 90 100

Data from The Extraordinary Leader, by Jack Zenger and Joe Folkman

Great leaders makea great difference

Good leaders havean adequate impact

Poor leaders createdissatisfaction

Finding: Finding: It takes a substantial change in leadership It takes a substantial change in leadership effectiveness (perceived by 360effectiveness (perceived by 360 assessments) to greatly assessments) to greatly impact balanced measures and employee engagement impact balanced measures and employee engagement (i.e., the relationship is not incremental)(i.e., the relationship is not incremental)

Leadership Effectiveness – 360 Assessed (High Tech Co.)

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IRS Leadership Competency ModelIRS Leadership Competency ModelLeadershipLeadership Employee Employee

SatisfactionSatisfactionCustomer Customer

SatisfactionSatisfactionBusiness Business ResultsResults

EEO and EEO and DiversityDiversity

Adaptability Adaptability (AD)(AD)

Continual Continual Learning (CL)Learning (CL)

Customer Focus Customer Focus (CF)(CF)

Achievement Achievement Orientation (AO)Orientation (AO)

*Supporting *Supporting Compe-Compe-tenciestencies

Communication* Communication* (CO)(CO)

Developing Developing Others* (DO)Others* (DO)

Entrepreneurship Entrepreneurship (EN)(EN)

Business Business Acumen (BA)Acumen (BA)

Decisiveness Decisiveness (DC)(DC)

Diversity Diversity Awareness* (DA)Awareness* (DA)

External External Awareness (EA)Awareness (EA)

Political Savvy Political Savvy (PS)(PS)

Integrity/Integrity/Honesty* (I/H)Honesty* (I/H)

Group Group Leadership* (GL)Leadership* (GL)

Influencing/ Influencing/ Negotiating* (I/N)Negotiating* (I/N)

Problem Problem Solving* (PR)Solving* (PR)

Service Service Motivation (SM)Motivation (SM)

Teamwork (TW)Teamwork (TW) Partnering* (PA)Partnering* (PA) Technical Technical Credibility (TC)Credibility (TC)Strategic Strategic

Thinking (ST)Thinking (ST)

• A daunting list of 21 competencies for IRS leaders to become A daunting list of 21 competencies for IRS leaders to become proficient in to increase overall perceived leadership effectivenessproficient in to increase overall perceived leadership effectiveness

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Traditional Incremental Development ApproachTraditional Incremental Development Approach

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AO AD BA CM CL CF DC DO DA EN EA GL I/N I/H PA PS PR SM ST TW TC

Prof

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IRS Leadership Competencies (in alphabetical order)

Traditional developmental approach would primarily focus on Traditional developmental approach would primarily focus on circled weaknesses (a 10% rise in these 3 competencies would circled weaknesses (a 10% rise in these 3 competencies would improve this executive’s effectiveness to the 55improve this executive’s effectiveness to the 55thth percentile with a percentile with a corresponding increase of only 3% in employee engagement!)corresponding increase of only 3% in employee engagement!)

• Here is an IRS executive with an overall leadership effectiveness Here is an IRS executive with an overall leadership effectiveness rating at the 50rating at the 50thth percentile assessed through a 360 percentile assessed through a 360 evaluation evaluation

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IRS 360IRS 360 Assessment Methodology Assessment Methodology Rigorous statistical analysis of the 360Rigorous statistical analysis of the 360° assessment ° assessment

data from 785 IRS managersdata from 785 IRS managers– 101 Executives101 Executives– 498 Senior Managers498 Senior Managers– 186 Front-line Managers186 Front-line Managers

Compare “great” IRS leaders (top 10%)* to the Compare “great” IRS leaders (top 10%)* to the bottom 10% to determine what others perceive are bottom 10% to determine what others perceive are the key competencies that put them above the restthe key competencies that put them above the rest

Compare developmental approaches of building key Compare developmental approaches of building key strengths vs. correcting weaknesses of IRS leaders strengths vs. correcting weaknesses of IRS leaders to determine which approach most increases to determine which approach most increases perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)*percentile ranked by average “Total Others” scores across all 21 competencies for each leader*percentile ranked by average “Total Others” scores across all 21 competencies for each leader

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Key Competencies that Set Apart Great IRS LeadersKey Competencies that Set Apart Great IRS Leaders

LeadershipLeadership Employee Employee SatisfactionSatisfaction

Customer Customer SatisfactionSatisfaction

Business Business ResultsResults

EEO and EEO and DiversityDiversity

Communication*Communication* Developing Developing Others*Others*

External External AwarenessAwareness

Business Business AcumenAcumen

*Supporting *Supporting CompetenciesCompetencies

Service Service MotivationMotivation

Group Group Leadership*Leadership*

Influencing/ Influencing/ Negotiating*Negotiating*

Political Political SavvySavvy

Strategic Strategic ThinkingThinking

Problem Problem Solving*Solving*

Technical Technical CredibilityCredibility

Comparing the top 10% of IRS leaders to the bottom 10% yields a Comparing the top 10% of IRS leaders to the bottom 10% yields a much more manageable list of what others perceive are the key much more manageable list of what others perceive are the key competencies that put “great” IRS leaders well above the restcompetencies that put “great” IRS leaders well above the rest

Finding:Finding: The list balances 2-4 key competencies in each IRS Core The list balances 2-4 key competencies in each IRS Core Management Responsibility (many support EEO and Diversity)Management Responsibility (many support EEO and Diversity)

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Impact of Displaying Strengths in Key IRS CompetenciesImpact of Displaying Strengths in Key IRS Competencies IRS leaders who display profound strengths in key differentiating IRS leaders who display profound strengths in key differentiating

competencies (scores competencies (scores 3.95) achieve much higher levels of overall 3.95) achieve much higher levels of overall perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)

Finding:Finding: IRS leaders who build just 1 more profound strength in IRS leaders who build just 1 more profound strength in a key competency experience a 10-95% improvement in overall a key competency experience a 10-95% improvement in overall perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)

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6572

8090

0102030405060708090

100

0 Strengths

1 Strength

2 Strengths

3 Strengths

4+ Strengths

Lea

ders

hip

Eff

ectiv

enes

s – 3

60 A

sses

sed

Number of Profound Strengths in IRS Key Competencies

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Build Strengths in Key Differentiating CompetenciesBuild Strengths in Key Differentiating Competencies

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Building existing strong competencies to very high levels (raising Building existing strong competencies to very high levels (raising circled strengths just 5%) could increase this executive’s overall circled strengths just 5%) could increase this executive’s overall perceived effectiveness to about the 80perceived effectiveness to about the 80thth percentile (+62%) and percentile (+62%) and employee engagement scores to about 72% (+60%)employee engagement scores to about 72% (+60%)

• Same IRS executive, different approach – build key strengths Same IRS executive, different approach – build key strengths

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Impact of “Fatal Flaws” on Leadership EffectivenessImpact of “Fatal Flaws” on Leadership Effectiveness This IRS leader displays 2 key competency strengths (should score This IRS leader displays 2 key competency strengths (should score

at at 7272ndnd percentile), yet only scores at the 49 percentile), yet only scores at the 49thth percentile due to a percentile due to a pronounced weakness or “fatal flaw” (scores pronounced weakness or “fatal flaw” (scores 3.0 out of 4.0) 3.0 out of 4.0)

Finding:Finding: IRS leaders must fix “fatal flaws” to achieve marked IRS leaders must fix “fatal flaws” to achieve marked increase (increase ( 50%) in overall perceived leadership effectiveness 50%) in overall perceived leadership effectiveness

2.93

3.13.23.33.43.53.63.73.83.9

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Prof

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360

Ass

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d

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““Fatal Flaws” for IRS LeadersFatal Flaws” for IRS Leaders

26 25

1816

14

0

5

10

15

20

25

30

Perc

ent o

f Lea

ders

Tech Cred Bus Acu Infl/Neg Dev Oth Comm

““Fatal flaws” typically include Technical Credibility, Business Fatal flaws” typically include Technical Credibility, Business Acumen, Influencing/Negotiating, Developing Others, and Acumen, Influencing/Negotiating, Developing Others, and Communication (5 of 11 key differentiating competencies)Communication (5 of 11 key differentiating competencies)

Effects of fixing “fatal flaws” on overall perceived leadership Effects of fixing “fatal flaws” on overall perceived leadership effectiveness not as dramatic as building profound strengthseffectiveness not as dramatic as building profound strengths

Finding: Finding: Leaders should build profound strengths unless they have Leaders should build profound strengths unless they have “fatal flaws”“fatal flaws”

Most Often Occurring Weaknesses in IRS Leadership Competencies

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New Insight for Competency DevelopmentNew Insight for Competency Development Competencies are interdependent, so increasing proficiency in Competencies are interdependent, so increasing proficiency in

competency companions (i.e., those with high correlations) has competency companions (i.e., those with high correlations) has an additive effect on raising scores in the targeted competencyan additive effect on raising scores in the targeted competency

Finding:Finding: Strongest increases in proficiency scores on targeted Strongest increases in proficiency scores on targeted competencies achieved by developing competency companionscompetencies achieved by developing competency companions

Competency Competency CompanionCompanion

TargetedTargetedCompetencyCompetency

Competency Competency CompanionCompanion

StrongStrongStrategic Strategic ThinkingThinking

GreatGreatTechnicalTechnicalCredibilityCredibility

PoorPoorTechnicalTechnicalCredibilityCredibility

WeakWeakDevelopingDeveloping

OthersOthers

StrongStrongDevelopingDeveloping

OthersOthers

WeakWeakStrategicStrategicThinkingThinking

Prof

icie

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Scor

es -

360

Prof

icie

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Scor

es -

360

Ass

esse

d A

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The Power of Perception

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Competency Companions for Developing Key Competency Companions for Developing Key StrengthsStrengths

Targeted Key Targeted Key CompetenciesCompetencies Competency Companions*Competency Companions*

CommunicationCommunication AdaptabilityAdaptability Diversity AwarenessDiversity Awareness Group LeadershipGroup Leadership

Service MotivationService Motivation PartneringPartnering Technical CredibilityTechnical Credibility Strategic ThinkingStrategic Thinking

Strategic ThinkingStrategic Thinking Problem SolvingProblem Solving External AwarenessExternal Awareness Technical CredibilityTechnical Credibility

Developing OthersDeveloping Others Group LeadershipGroup Leadership Achievement Orient.Achievement Orient. Diversity AwarenessDiversity Awareness

Group LeadershipGroup Leadership Developing OthersDeveloping Others CommunicationCommunication DecisivenessDecisiveness

External AwarenessExternal Awareness Continual LearningContinual Learning Business AcumenBusiness Acumen Strategic ThinkingStrategic Thinking

Influence/NegotiateInfluence/Negotiate External AwarenessExternal Awareness PartneringPartnering Group LeadershipGroup Leadership

Business AcumenBusiness Acumen External AwarenessExternal Awareness Political SavvyPolitical Savvy Problem SolvingProblem Solving

Political SavvyPolitical Savvy PartneringPartnering Problem SolvingProblem Solving

Problem SolvingProblem Solving DecisivenessDecisiveness AdaptabilityAdaptability

Technical CredibilityTechnical Credibility Strategic ThinkingStrategic Thinking Service MotivationService Motivation Developing OthersDeveloping Others

List of statistically significant (List of statistically significant (pp > .001) competency companions > .001) competency companions to develop to dramatically increase the proficiency scores (360to develop to dramatically increase the proficiency scores (360 assessed) on targeted key competenciesassessed) on targeted key competencies

*Development of 5 in circles yields greatest influence on targeted competencies (each listed as 3 companions)

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How to Build Strengths in Key CompetenciesHow to Build Strengths in Key Competencies

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Same IRS executive, new approach – develop competency companions Same IRS executive, new approach – develop competency companions


Developing competency companions just 2% builds this executive’s Developing competency companions just 2% builds this executive’s targeted areas by 5% and indirectly improves several other targeted areas by 5% and indirectly improves several other competencies (creating a “halo” effect) to easily increase overall competencies (creating a “halo” effect) to easily increase overall perceived effectiveness to the 90perceived effectiveness to the 90thth percentile (+80%) and employee percentile (+80%) and employee engagement to about 80% (+78%)engagement to about 80% (+78%)

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SummarySummaryGood does not equal great and we need more Good does not equal great and we need more

great leadersgreat leadersGreat leaders are not superheroesGreat leaders are not superheroesGreat leaders get the power of perception Great leaders get the power of perception

working for them, not againstworking for them, not againstBuilding strengths raises perceptions of overall Building strengths raises perceptions of overall

leadership effectiveness much more than sealing leadership effectiveness much more than sealing “performance perforations”“performance perforations”

One of the keys to building leadership strengths One of the keys to building leadership strengths is leveraging a leader’s passionsis leveraging a leader’s passions

When building strengths, sometimes the best When building strengths, sometimes the best way is to build around themway is to build around them

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How to Operationalize FindingsHow to Operationalize Findings Arm instructors/coaches/counselors with Arm instructors/coaches/counselors with

information to easily interpret a leader’s 360° information to easily interpret a leader’s 360° assessment and design individually customized assessment and design individually customized developmental efforts to achieve huge developmental efforts to achieve huge behavioral improvements in key differentiating behavioral improvements in key differentiating competencies and balanced measure resultscompetencies and balanced measure results

Use information to design core foundational Use information to design core foundational leadership courses at each level to achieve huge leadership courses at each level to achieve huge behavioral improvements in key differentiating behavioral improvements in key differentiating competencies and balanced measures resultscompetencies and balanced measures results

Provide baseline for further statistical workProvide baseline for further statistical work– Measure actual results against predicted resultsMeasure actual results against predicted results– Ongoing look into 360° results against performance Ongoing look into 360° results against performance

evaluations, promotions, mobility, etc.evaluations, promotions, mobility, etc.

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IRS Leadership Development FrameworkIRS Leadership Development Framework

Front-line Manager

Core Curriculum

Senior ManagerCore

Curriculum

ExecutiveCore

Curriculum

Front-line Leader Readiness

Senior Manager Readiness

Executive Readiness

Entry Mastery

Entry Mastery

Entry Mastery

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IRS Leadership Competencies IRS Leadership Competencies Arrayed By Leadership LevelArrayed By Leadership Level

ExecutiveLeader

Senior Leader

Front LineLeader

Employee

• Entrepreneurship• External Awareness• Group Leadership • Political Savvy• Service Motivation• Strategic Thinking

• Achievement Orientation• Business Acumen• Continual Learning• Decisiveness• Developing Others• Influencing/Negotiating

• Adaptability• Communication• Partnering• Problem Solving• Teamwork• Technical Credibility

• Customer Focus• Diversity Awareness• Integrity/Honesty

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Impact of Manager’s Response/Follow-Up Impact of Manager’s Response/Follow-Up on Overall Leadership Effectivenesson Overall Leadership Effectiveness

18 18 23

45

7486

0102030405060708090

Perc

ent I

mpr

ovem

ent

No/None

Yes/Non

e

Yes/Litt

le

Yes/Som

e

Yes/Freq

uent

Yes/Con

sisten

t

Amount of Response/Follow-up