developing 21st century leaders who make a difference

Copyright © 2011 Bersin & Associates. All rights reserved.

Developing 21st Century Leaders Who Make a Difference 2011 Research Findings

Barb Loew-Arth, Analyst Leadership Development & Succession Management November 3, 2011 Sponsored by:


Today’s Speaker

Barb Loew-Arth Principal Analyst Bersin & Associates Responsible for: Leadership development and succession management research practices


Developing 21st Century Leaders Who Make a Difference 2011 Research Findings

Barb Loew-Arth, Analyst Leadership Development & Succession Management November 3, 2011 Sponsored by:


About Bersin & Associates Who We Are and Our Research Practices

Human Resources

Leadership Development

Learning & Development

Talent Acquisition

Talent Management

Success Drivers Strategy & Planning | Disciplines | Systems and Solutions | Benchmarking

Focus Areas More than 80 specific areas of expertise

Foundations Frameworks | Maturity Models | Factbooks® | High-Impact® Research Programs


Agenda

§ Our research approach

§ Why leadership development (LD)

§ What is LD – our framework

§ Key research findings •  LD maturity •  LD trends •  LD best practices

-  LD strategy -  21st century competencies -  Targeted leader levels -  Targeted solutions

§ The business impact of leadership development

§ Cases in point

Join us for IMPACT April 11-12, 2012

http://impact.bersin.com/


Our Research Approach

•  An extensive quantitative survey of more than 300 leadership development and L&D managers identifying key drivers, best practices, business challenges, and trends in leadership development;

•  Comprehensive briefings with almost 20 leadership development content and service providers on leadership development tools, programs, assessments, simulations, coaching, mentoring and other leadership development solutions; and

•  Detailed interviews with more than 20 leadership development and L&D managers responsible for high-impact enterprise-wide global leadership development strategy and programs.


Key Questions Answered

•  Is leadership development a real differentiator to an organization’s business goals? If so, what business impact does it return?

•  What are the components of modern-day leadership development?

•  What does leadership development maturity look like?

•  What are best practices for leadership development?

•  What are the key capabilities required for effective 21st century leaders?

•  Which leader levels are companies targeting for leadership development?

•  How important is a leadership development strategy to leadership

development?

•  How do effective organizations govern, communicate about and support

leadership development?


Why Leadership Development (LD) cited as the top HR priority

From Bersin’s TalentWatch 1Q2011


The Changed Landscape

Workplace Workforce

Interconnected Multi-Generational

Dynamic Global Performance-driven Interconnected

New Leadership Mobile

More Specialized Transient

New Models for Leadership Strategy New Models for LD Programs

Manager

Employee Mentor

Peer

Partner

Customer

Candidate


2011 Top Business Challenges Globalization, product expansion, innovation



2011 Top Talent Challenges



Talent Shortages by Job Role



Poll

Do you have leadership development solutions in place for all leader levels? 1. Supervisors Y or N 2. Mid level managers Y or N 3. Senior leaders Y or N 4. Executives Y or N 5. High-potentials Y or N


Case in Point Targeted leader levels – a focus on mid-level leader development

Industry: Banking Employees: 11,000 Development Challenges: §  Large leadership changes at the top at a time of great turmoil in banking §  Knew they needed to develop people at a time when they were reinventing themselves §  Committed to development at a time when the industry was just trying to stay whole §  Had to be prepared to contribute to the execution of their strategic plan

The Solution: §  Focus on mid-level leaders because they are the future of the company §  A mid level leader program that leverages a blend of formal and informal learning:

•  Leveraged DDI’s Business Impact Leadership®

The Impact: §  48% more said they can better implement strategy post-development §  70% more reported more productive coaching outcomes §  90% said there was immediate on-the-job applicability


Leadership Development Strategy

Leader Audiences

Dev

elop

men

t So

lutio

ns

Leadership Development Framework™ O

rgan

izat

ion

& G

over

nanc

e Evaluation and Sustainability

Emerging Leaders

Managing Self

Exe

cutiv

e S

pons

orsh

ip. S

teer

ing

Com

mitt

ees,

Per

form

ance

Con

sulta

nts,

C

hang

e M

anag

emen

t, G

loba

l and

Loc

al Im

plem

enta

tion

Program

Evaluation, K

ey Metrics, Leadership S

corecard, B

enchmarking, B

usiness Impact

High Potentials

Senior Leaders Managing a

Function or BU

Mid-Level Leaders

Managing Other Managers

Front-Line Leaders

Managing Others

Leadership Competencies/Capabilities Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements

Executives Managing an

Enterprise

Leadership Brand and Leadership Culture

Leadership Strategy Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment,

Strategy Assessment, Talent Management Integration

Curriculum Design Business Alignment, Competencies/Capabilities, Core Values, Multi-level,, “Signature” programs, Pre-requisites,

Leadership Transitions, Leaders as Teachers, Technology Strategy, Build vs Buy (LD Providers)

Formal ILT

Virtual Classroom e-learning

Assessments Onboarding Coaching Simulation

Informal (Social, Embedded, On-Demand)

Mentoring Communities of Practice

Blogs Wikis

Action Learning Ex-Pat Assignments Stretch Assignments

Job Rotations

Technology Strategy Infrastructure Systems Integration

Curriculum Delivery

College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Customized Content Leaders Teaching Leaders


Case in Point Leadership Strategy

Hewitt

Industry: world class HR consulting and outsourcing services organization Employees: 23,000 Development Challenge: §  To attract and build talent The Solution: §  Define a leadership strategy to include definition of:

•  How to identify/reward/manage talent based on performance and potential assessments •  Our process for holding managers accountable for developing talent •  Our commitment to career development options for employees and leaders •  Our philosophy on development options that grow the professional/technical/leadership capabilities of its

employees and leaders •  Our approach to designing development solutions that blend of learning solutions that leverage work

experience, performance feedback and formal education

The Impact: §  Enhanced engagement scores §  Reduced voluntary attrition rate


Case in Point Tailored leadership competencies – 21st century competencies

UnitedHealth Group

Industry: Health care Employees: approximately 80,000 LD Challenges: §  Align LD program content with business goals §  Maintain only those programs that are aligned with driving achievement of business

goals The Solution: §  Define a leadership competency model The Impact: §  Improvement in promotion rates, employee engagement scores and/or performance

scores.

“Success Factors” Competency Framework by Level Employee Leadership Senior Leadership

Acts as a team player

Lead and develop people

Lead and develop the organization

Focus on customers

Deliver value to customers

Deliver value to customers

Make fact-based decisions

Drive sound, disciplined decisions

Make strategic decisions

Delivery quality results

Drive high-quality execution

Achieve organizational goals

Support change and innovation

Lead change and innovation

Champion change and innovation

Communicate effectively



Act ethically Model and ensure ethical behavior

Model and ensure ethical behavior

Source: UnitedHealth Group, 2010


How does this align to the six Best

Practices of LD?

1.  Executive Engagement 2.  Business Alignment 3.  Leadership Competencies

4.  All Levels of Leadership 5.  Talent Management Integration 6.  Targeted Solutions

Leader Audiences

Org

aniz

atio

n &

Gov

erna

nce

Evaluation and Sustainability

Emerging Leaders

Managing Self

Exe

cutiv

e S

pons

orsh

ip. S

teer

ing

Com

mitt

ees,

Per

form

ance

Con

sulta

nts,

C

hang

e M

anag

emen

t, G

loba

l and

Loc

al Im

plem

enta

tion

Program

Evaluation, K

ey Metrics, Leadership S

corecard, B

enchmarking, B

usiness Impact

High Potentials

Senior Leaders Managing a

Function or BU

Mid-Level Leaders

Managing Other Managers

Front-Line Leaders

Managing Others

Leadership Competencies/Capabilities Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements

Executives Managing an

Enterprise

Leadership Brand and Leadership Culture

Leadership Strategy Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment,

Strategy Assessment, Talent Management Integration

1 4

31 2

4

3

1 2

1 2

1

5 62

1 2

5 6

Leadership Development Strategy

Dev

elop

men

t So

lutio

ns

Curriculum Design Business Alignment, Competencies/Capabilities, Core Values, Multi-level,, “Signature” programs, Pre-requisites,

Leadership Transitions, Leaders as Teachers, Technology Strategy, Build vs Buy (LD Providers)

Technology Strategy Infrastructure Systems Integration

College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Leaders Teaching Leaders

1 32 4 5 6

1 2 6

5 6

6

5

Informal (Social, Embedded, On-Demand)

Mentoring Communities of Practice

Blogs Wikis

Action Learning Ex-Pat Assignments Stretch Assignments

Job Rotations

Formal ILT

Virtual Classroom e-learning

Assessments Onboarding Coaching Simulation

College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Customized Content Leaders Teaching Leaders

Curriculum Delivery

3 4 5

1 63 4 52

2 6


Leadership Development Maturity Model™


Level 1

Key Attributes •  Senior management is not involved •  A catalog of courses, no development process •  Managers have to figure out what to do on their own •  Perceived as a benefit to the employee

Strategic Leadership Development Championed by Executives, Talent Management integration

Focused Leadership Development Culture setting, Future focused, Developing organization

Structured Leadership Training Core competencies, Well defined curriculum, Developing individuals

Inconsistent Management Training Content available, No development process, Benefit to employees


Level 2

Key Attributes •  Well defined curriculum for different levels •  Senior management supports concept •  Core leadership competencies are defined •  Some blended learning applied •  Individual leaders are developed






Level 3

Key Attributes •  Developing the organization •  Senior management participates and promotes •  Culture Setting •  Aligned with business strategy •  Future Looking






Level 4

Key Attributes •  Senior management is highly engaged •  Talent management integration •  Comprehensive learning approach •  Learning culture is engrained






Organizations Are Maturing Their LD


Business Impact of Maturity Levels


Business Impact By Maturity Level


Moving Up the Maturity Model From Level 1 to Level 2

§  Develop a set of core leadership competencies

§  Gain senior management’s support of concept and resources

§  Start to build a learning and a leadership culture •  Involve the managers of the leaders

•  Allow leaders time away from work

Strategic Focused

Structured Inconsistent

§ Create programs that target all levels of leadership § Apply blended learning format

§ Evaluate programs to ensure they are meeting objectives


From Level 2 to Level 3

§  Involve Senior Management in Promoting and Participating in Programs

§  Make programs relevant and teach to the competencies

§  Get the right people in the right programs

§  Hold people accountable for their own development

Moving Up the Maturity Model

§  Incorporate non-traditional learning activities into a blended learning solution

§ Allocate sufficient resources to develop and manage programs

Strategic Focused



From Level 3 to Level 4

§  Involve Senior Management in leadership strategy

§  Align content with business strategy and develop leaders for the future

§  Hold leaders accountable for developing others

§  Integrate leadership development into overall talent management system

Moving Up the Maturity Model

Strategic Focused


§ Utilize performance management for development and for defining learning needs

§ Review Succession planning data at aggregate level


A Summary View: Moving Up Levels With Bersin & Associates’ Clients’ Adaptations


Current State Maturity Assessment

Effectiveness

On a scale of 1 – 4, how effective do you believe your organization’s leadership programs are at… (1 – not effective at all, 4 – very effective)

1. Driving improved business results through leadership skills? 2. Increasing the quality and bench strength of the company’s leadership pipeline? 3. Increasing the engagement, retention and teamwork of the leaders themselves? 4. Improving overall employee retention through increased leadership skills and behaviors?

Self-Assessment

Select one that most closely characterizes leadership development in your organization. 1. Inconsistent Management Training - little or no management support, a catalog of courses with no formal development process, managers on their own to develop themselves and others. 2. Structured Leadership Training - senior management supports concept, core set of competencies defined, programs developed for different levels of management, training is required of employees. 3. Focused Leadership Development - management promotes leadership development, programs align with business strategy, blended learning approach is applied, future focused. 4. Strategic Leadership Development - management champions leadership development, future leaders are developed, talent management processes are integrated, an engrained learning culture.

Challenges

What are the top 2 challenges your organization faces regarding leadership development? 1.  Mobility of participants and time away from work 2.  Getting the right people in the right classes 3.  Leveraging technology 4.  Evaluating courses or programs 5.  Developing a leadership strategy 6.  Alignment with business strategy 7.  Unsatisfactory senior management support 8.  Application of the learning back on the job 9.  Holding people accountable for development


Current State Maturity Assessment

Tailored Leadership

Competencies

•  Does your company have defined leadership competencies? •  How often are these competencies reviewed and updated? •  Are your leadership programs closely aligned with these competencies?

All Levels of Leadership

•  What is the targeted audience of your leadership development strategy – IC; First-level Managers; Mid-level Managers; Senior Managers; Executives?

•  Are programs for each targeted level of the same quality?

Business Strategy

Alignment

•  How does your organization ensure leadership development is aligned with business strategies and will meet changing business needs? Such as: Needs analysis; meetings with line managers; L&D business plan; program measures; executive reviews; balanced scorecard

Strong Executive

Engagement

•  How would you best describe the level of senior management support for leadership development, including the CEO? In what ways do executives engage in or demonstrate their support for leadership?

•  In what ways does senior leadership get engaged in the leadership strategy? Leadership development strategy?

Targeted Solutions

•  Do your leadership programs include a blended learning strategy? •  Do your leadership programs include a combination of knowledge acquisition, experiential or application, and

reinforcement mechanisms? •  What kinds of delivery and learning mechanisms are applied to each leadership program?

Talent Management Integration

•  Do you have a well-defined and communicated talent management strategy? •  To what extent does your organization integrate leadership development with any of the following

talent management activities -- Performance Management; Succession Planning; Competency Management; Learning & Development; Recruiting; Compensation; Workforce Planning?


Today’s LD Trends •  Effective leadership development is critical for achievement of business

goals and is now being invested in more heavily than in past

•  Leadership development requires the definition of a strong leadership strategy, not only the implementation of leadership development programs

•  Leadership development is now targeting front line and mid level leader audiences, not just senior leaders and high potentials

•  Select competencies and capabilities must be developed to skill up leaders for effective 21st century leaders

•  Leadership development solutions are modernized

•  Leadership must be globalized •  Technology has an integral role in leadership development


21st Century LD Competencies 2010-2011 research data

Core 21st Century •  Integrity/Ethics – this is the foundation; you

must tell the truth and do the right thing •  Visioning/Strategy – leaders need to point

the way and develop compelling plans •  Results Focus – leaders must have a bias for

action and be relentless about getting things done

•  Judgment - a great differentiator – it seems you either have it or you don’t

•  Passion/Optimism – who doesn’t want to work for someone who exudes positive energy?

•  Building the Team – great leaders hire and surround themselves with great talent

•  People Development– people flock to leaders who have a reputation for growing talent

•  Accountability - leaders have to accept and create a culture of accountability

•  Innovation -- to think creatively while taking initiative and calculated risks; having vision beyond the immediate situation; exploring and integrating diverse perspectives and recognizing unexpected opportunities

•  Agility -- visionary, collaborative, creative , and proactive learning from prior experiences that enable leaders to direct sustained success

•  Global acumen --global business acumen, worldviews and perspectives, global people leadership and global business knowledge

•  Emotional intelligence -- recognizes and understand emotions, manages personal, individual and team performance using such awareness

•  Management of diverse (women and multi-generational) workforces -- how leaders perceive others and how those perceptions affect their interactions, communication, adaptability and change management


High-Value Development Model

70% Stretch assignments Rotational assignments Cross-functional assignments Special assignments Action Learning

Experiential Learning from others

20% Mentoring Coaching 360s Leadership styles inventories

Feedback Assessments

10% Workshops Classes Seminars Conferences Courses

Formal classroom E-Learning


Case in Point Targeted solutions – leveraging informal learning in a blended approach

Industry: Business services provider Employees: 19,000 Development Challenges: §  Improve leaders’ orientation of client-centricity §  Improve execution of client deliverables

The Solution: §  Use a blended approach to leadership development leveraging e-learning, virtual

learning, coaching, action learning, assessments, action planning, online discussion forums, fireside chats with senior leaders, and to face-to-face workshops.

§  Deliver LD solutions that are timely based on leaders’ needs and organizational goals §  Operate LD programs within budget

The Impact: §  List here the %, # etc of improved bench strength, mid level promotes, etc.

Mercer


Globalized LD

…thinking globally, acting locally

…thinking globally and acting globally


The PayOff From Globalized LD

From McKinsey’s 2008 study: Why MultiNationals Struggle to Manage Talent


10 Factors of Global Talent Management

Ensure global consistency in management practices Achieving cultural diversity Developing and managing global leaders Translating HR information into action Relocating work to locations with a good supply of talent Re-shaping corporate HR to effectively manage global talent Creating internal talent pools Managing overseas assignments Sourcing and recruiting global talent Responding to changes in the global talent market

From McKinsey’s 2008 study: Why MultiNationals Struggle to Manage Talent


LD Enabled With Technology

• Understand how the intelligent use of new technologies can help your organization’s leaders to lead globally; • Recruit, develop and maintain a network of technically competent leaders who can manage systems around the world; • Know how to make and manage investments in new technologies; and, • Be positive role models in leading the use of new technology that provides a global view and enables global management of an organization’s talent.


Case in Point: HP Leverages Technology for LD to Create…

•  More learner-driven development methods;

•  On-demand access to global leader development resources at the time of need; and,

•  More granular, development modules better aligned

with a global leaders’ work responsibilities.


Differentiators What differentiates 2010-2011 companies to make them tops in leadership

§  They are investing more in leadership development – for all leader levels – than any other talent process;

§  They are defining and implementing a leadership strategy before implementing leadership development programs;

§  They are ensuring that their leadership competencies are business-driven and reflective of their global business needs;

§  Their leadership development solutions are designed around the 70-20-10 model with an unwavering commitment to global experiential


Recipe for Success What the top leadership companies are doing to build great leaders and organizational capability •  Define and implement a leadership strategy and a leadership

development strategy aligned with business strategy •  Ensure that the selection and onboarding process aligns with the

development process all based on the same set of critical leadership competencies

•  Select only a handful of leadership competencies that drive your business goals

•  Define, identify, calibrate and develop high-potential talent •  Implement a succession management and talent mobility process that is

transparent •  Design leader development opportunities that are experiential and

embedded •  Define and track metrics that define desired business and talent results


www.bersin.com

High Impact LD for the 21st Century § Best Practices § Actionable Steps to Move

Up Maturity Model §  21st Century LD Trends § Business Impact

Published just last month!


What Else and What’s Next

§  Leadership Development Curriculum Model Report – April 2011

§  Leadership Development Framework Report– November 2011

§  How to Develop a Leadership Development Strategy --4Q 2011

§  High-Impact Leadership Development Experiences – 4Q 2011 §  High-Potential Leader Strategy – 1Q 2012


Q & A

Barb Arth Senior Analyst

[email protected]

For inquiries about obtaining slides: [email protected]


§ Members •  Go to research center

website at www.bersin.com

§ Non-Members •  Purchase at

www.bersin.com/Store

§ Join Bersin •  Go to

www.bersin.com/membership

How to Get Our HILD Research


Thank You!

§  Copies of today’s slides are available to members within 24 hours of broadcast; please log in to www.bersin.com.

§  For information about our WhatWorks® membership, please call

510-251-4400 or email [email protected].

§  Reports are available for purchase at our store.