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2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
The Critical Role of Behaviorin Management Success
Predicting Success in Management Careers
Presentation to the HEC School of Management
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
An Important Observation
“Research clearly shows that the vast majority of executives who fail in their job do so because of behavioral or cultural issues, not because of lack of skill or experience.
It therefore seems odd that most of the emphasis in business education, succession planning and hiring still focuses almost exclusively on skills and experience.”Warren Bennis
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
Drivers of Management Success
X =
BehaviorsLeadership StylesThinking StylesEmotions
Knowledge Education Skills Experience
Values Motives Expectations
Situation
Aptitudes Motivation Success
StrategyOrganizationCulture/Value SystemJob Requirements
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
What Styles Are and
What Styles Aren’t
It’s all about Situational Fit – no absolute “goods” or “bads”
• Different from traditional IQ and Aptitude assessments
• Habits of thinking and deciding
Unrelated to general intelligence Formed through experience
• Experience with other people - culture• Direct experience with information and decisions
Styles can and do change Effectiveness depends on the situation
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
Key Dimensions of Decision Styles
Information Use• Amount of information actually used in the process of
making decisions and solving problems
Solution Focus• Zeroing-in on a limited number of clear-cut solutions or
courses of action vs. identifying multiple solutions and/or alternate courses of action
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Decision Dynamics © Decision Dynamics LLC
Korn/Ferry Behavioral Assessment Model
data
MULTI FOCUSEDSTYLE
UNI FOCUSEDSTYLE
data
data
MULTI FOCUSEDSTYLE
UNI FOCUSEDSTYLE
UNI FOCUSEDSTYLE
data
Dimension II: Solution Focus
Dimension I: Information Use
Level ofUnderstanding
Amount of information Used
High
High
Low
Low
Maximizer
Satisficer
Level ofUnderstanding
Amount of information Used
High
High
Low
Low
Maximizer
Satisficer
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Decision Dynamics © Decision Dynamics LLC
Two Faces of StylesLeadership (Interpersonal) Style and Thinking (Task
Performance) Style
Leadership Styles• Styles used when people are watching themselves -
attempting to behave as they believe they should behave
Thinking Styles• Styles used when people are not watching
themselves and not thinking about how they should behave -- when they are focusing on a task or situation or are absorbed in a problem
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
KFI Decision Style Assessment Information Use
Thinking
Lead
ers
hip
QuickSteady
ProductiveEfficient
TerseClearFocusedDirective
Thinking
Lead
ers
hip
Quality-orientedData-driven
Thorough
LogicalSeriousDominant
Thinking
Lead
ers
hip
ExploratoryAnalyticCreative
Patient
InquisitiveListeningTeam-oriented
Thinking
Lead
ers
hip
IntuitiveFast
ChangeableAdaptive
OpenInformalOutgoingHumorous
Social/Flexible Participative/Creative
Task/Action-FocusedIntellectual/ComplexLow/Mod High
Mu
lti-
Focu
sed
Un
i-Focu
sed
Focu
s
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Decision Dynamics © Decision Dynamics LLC
Emotional Competency Definitions
Ambiguity Tolerance: The capacity to deal with uncertainty and unanticipated change
Composure: The capacity to remain cool in the face of adversity or frustration
Confidence: The willingness to take on challenges and risk
Empathy: The ability to objectively perceive other’s strengths and weaknesses
Energy: The capacity to handle demanding tasks without tiring or losing motivation
Humility: The capacity to see or do things in different ways without imposing one’s preferred way
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Decision Dynamics © Decision Dynamics LLC
Decision Styles: Getting Down to theROOTS of Behavioral Competencies
Action Style
Participative Style
Complex Style
MeetingCommitments
OrganizingEvents
Respondingto Others
Adaptingto Change
Productivity
Flexible/ Social Style
Delegating
BehavioralCompetencies
DecisionStyleRoots
Creativity
InitiatingRelationships
Listening
Cooperating
Resolving Conflicts
Generating Ideas
ArticulatingIdeas
CommunicatingExpectations
RecognizingTrendsPlanni
ng
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Validation Research
We randomly selected 110,000 managers/executives from our assessment database of over 500,000 individuals
We divided sample into five management levels
Supervisor Director Executive – “C” Level
Manager Vice President
We split each level into the most and least successful and compared the decision styles of both groups
Key findings
• Behavioral competency scores were markedly different between the two groups and between management levels
• Successful executives have markedly different leadership and thinking styles
• Results offer insights that challenge traditional competency theory – namely, required behavioral competencies differ materially by level and role
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Decision Dynamics © Decision Dynamics LLC
Leadership Styles by Management Level
Statistical probability that style differences between levels could have occurred by chance (ANOVA results): Decisive Operating Style = 0.00% Flexible Operating Style = 0.00% Hierarchic Operating Style = 0.00% Integrative Operating Style = 0.00%
Most Successful Managers and Executives
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
Supervisor Manager Director Vice President Executive
Ave
rage
d S
tand
ardi
zed
Ass
essm
ent
Sco
res
Task Social Intellectual Participative
(N = 21,355)
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
Thinking Styles by Management Level
Statistical probability that style differences between levels could have occurred by chance (ANOVA results):
Decisive Operating Style = doesn’t differ significantly between levels Flexible Operating Style = 0.0% Hierarchic Operating Style = 1.3% Integrative Operating Style = 3.4%
Most Successful Managers and Executives
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0.0
0.1
0.2
0.3
0.4
Supervisor Manager Director Vice President Executive
Avera
ged
Sta
nd
ard
ized
Ass
ess
ment
Sco
res
Action Flexible Complex Creative
(N = 21,355)
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Decision Dynamics © Decision Dynamics LLC
Leadership Role Styles by Mgmt LevelContrasts: Top 20% vs. Total Sample vs. Bottom 20%
Top 20%
- 2.00
- 1.50
- 1.00
- 0.50
0.00
0.50
1.00
1.50
2.00
Supervisor (n =1,258)
Manager (n = 7,358) Director (n = 6,061) Vice President (n =4,622)
Sr. Executive (n =4,486)
DECISIVE FLEXIBLE HIERARCH INTEGRAT
Average
- 2.00
- 1.50
- 1.00
- 0.50
0.00
0.50
1.00
1.50
2.00
n = 6,275(Supervisor)
n = 36,680 (Manager) n = 30,102 (Director) n = 23,057 (VicePresident)
n = 22,475 (Sr.Executive)
DECISIVE FLEXIBLE HIERARCH INTEGRAT
Bottom 20%
- 2.00
- 1.50
- 1.00
- 0.50
0.00
0.50
1.00
1.50
2.00
Supervisor (n =1,612)
Manager (n = 7,102) Director (n = 5,987) Vice President (n =4,614)
Sr. Executive (n =4,684)
DECISIVE FLEXIBLE HIERARCH INTEGRAT
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
Leadership Role Styles by Mgmt LevelContrasts: Top 20% vs. Total Sample vs. Bottom 20%
Top 20%
- 0.60
- 0.40
- 0.20
0.00
0.20
0.40
0.60
0.80
Supervisor (n =1,258)
Manager (n = 7,358) Director (n = 6,061) Vice President (n =4,622)
Sr. Executive (n =4,486)
DECISIVE FLEXIBLE HIERARCH INTEGRAT
Average
- 0.60
- 0.40
- 0.20
0.00
0.20
0.40
0.60
Supervisor (n =6,275)
Manager (n = 36,680) Director (n = 30,102) Vice President (n =23,057)
Sr. Executive (n =22,475)
DECISIVE FLEXIBLE HIERARCH INTEGRATBottom 20%
- 0.80
- 0.60
- 0.40
- 0.20
0.00
0.20
0.40
0.60
0.80
1.00
Supervisor (n =1,612)
Manager (n = 7,102) Director (n = 5,987) Vice President (n =4,614)
Sr. Executive (n =4,684)
DECISIVE FLEXIBLE HIERARCH INTEGRAT
2 0 0 2 D e c i s i o n D y n a m i c s L L C
Decision Dynamics © Decision Dynamics LLC
A Multi-Cultural Perspective – Leadership Styles
-0.40
-0.30
-0.20
-0.10
0.00
0.10
0.20
0.30
0.40
0.50
Entry Middle Senior
Management Level
Task (Decisive) Social (Flexible Intellectual (Hierarchic) Participative (Integrative)
North America – Leadership Styles by Mgmt Level
Latin America – Leadership Styles by Mgmt Level
-0.30
-0.20
-0.10
0.00
0.10
0.20
0.30
Entry Middle Senior
Management Level
Task (Decisive) Social (Flexible Intellectual (Hierarchic) Participative (Integrative)
-0.40
-0.30
-0.20
-0.10
0.00
0.10
0.20
0.30
0.40
Entry Middle Senior
Management Level
Task (Decisive) Social (Flexible Intellectual (Hierarchic) Participative (Integrative)
Australia,New Zealand – Leadership Styles by Mgmt Level
-0.25
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
Entry Middle Senior
Management Level
Task (Decisive) Social (Flexible Intellectual (Hierarchic) Participative (Integrative)
UK, Northern & Western Europe - Leadership Styles by Mgmt Level
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A Multicultural Perspective – Thinking Styles
North America – Leadership Styles by Mgmt Level
-0.10
-0.05
0.00
0.05
0.10
0.15
Entry Middle Senior
Management Level
Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative)
Latin America – Leadership Styles by Mgmt Level
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
Entry Middle Senior
Management Level
Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative)
Australia,New Zealand – Leadership Styles by Mgmt Level
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
Entry Middle Senior
Management Level
Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative)
UK, Northern & Western Europe - Leadership Styles by Mgmt Level
-0.10
-0.08
-0.05
-0.03
0.00
0.03
0.05
0.08
0.10
Entry Middle Senior
Management Levell
Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative)
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Matching Values to Organizational Culture
The Basis of Cultural Fit
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Four Different Career Patterns and their Motives
Learning Lateral movement
thru different but related occupations
Competitive Fast progression up
the ladder
Expert Life-long focus on
one specialty
Entrepreneurial Frequent moves
between very different kinds of work
Power & Influence Achievement Many other motives
Expertise Stability & Security
Personal Growth Creativity
Novelty Independence People Involvement
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Maintain shareIncrease quality
Flat & functionalBroad span of
control
AccuracyReliabilityTechnical expertise
Fringe benefitsTech trainingRecognition
awardsBudget authority
Immediate targets of
opportunity
"Ad Hocracy"Temporary
teams
SpeedAdaptabilityRecognizing opportunities
Cash bonusesSpecial
assignmentsJob rotation
Independence
Strategy
Structure
ValuedPerformance
Factors
Rewards
GrowthMarket share
Tall pyramidNarrow span of
control
Cost reductionLeadership skillsLogistics mgmt
skills
PromotionMgmt
incentivesMgmt training
Diversificationbased on core
technology
Matrix structureOpen systems
High involvement
CreativitySkill diversityTeam skills
Lateral assignmentsJob rotationEducation
Creative latitude
Competitive Expert Learning Entrepreneur
Career Concepts & Corporate Cultures
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Decision Dynamics © Decision Dynamics LLC
Leadership Style ComparisonSales and Marketing Executive
2.35
5.82
3.39
5.03
3.46
4.18
3.87
3.59
1
2
3
4
5
6
7
Task Focused Social Intellectual Participative
Sr. Marketing Executive
Sr. Sales Executive
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Decision Dynamics © Decision Dynamics LLC
Thinking Style ComparisonSales and Marketing Executive
2.87
3.91
5.44
5.75
4.06
2.04
5.24
4.18
1
2
3
4
5
6
7
Action Flexible Complex Creative
Sr. Marketing Executive
Sr. Sales Executive
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Decision Dynamics © Decision Dynamics LLC
Emotional Profile ComparisonSales and Marketing Executive
5.52
4.41
5.565.46
4.344.49
4.40
4.13
4.57
4.17
3.84
4.43
1
2
3
4
5
6
7
AmbiguityTolerance
Composure Empathy Mental Stamina Humilty Confidence
Sr. Marketing Executive
Sr. Sales Executive