leadership map for future by mr faridun dotiwala & navin unni at round table organised by ispe
TRANSCRIPT
Creating
Leadership map for tomorrowtomorrow
August 28, 2009
8th Oil and Gas HR Round Table
CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
What an opportunity for leadership!
Demand – capacity gap: immense growth
potential and opportunities
Maturing fields and downstream assets
New technology and scale challenges in deep
water, EOR, CBM, etc.water, EOR, CBM, etc.
Climate change imperatives – energy
productivity and efficiency, renewables
Greater regulatory pressure, in context of intense
competition
Growing international operations and related
challenges
Higher bar for leadership performance
Higher levels of ambiguity and
risk
Entrepreneurship and global
perspective
Leadership asks
A leadership
‘engine’ that can
attract,
accelerate
What is needed
Ability to build
Retention of existing personnel
Ability to work with communities and regulators
accelerate
develop and
retain leaders in a
self sustaining
manner
3 elements of a leadership engine
Self- ▪ Integrated people
▪ Accelerating development of a critical mass of leaders for the organisation
Individual leader development
1
+Self-sustaining leadership engine
▪ Pervasive development culture: feedback, mentoring and coaching culture
Leadership culture
3
▪ Integrated people development, review and opportunity matching systems
Leadership systems
2
+
=
Invest in developing people as part of their real work1
What this will accomplish
▪ Provide razor-sharp focus
on core business challenges
▪ Achieve stretch
performance with a safety
Principles
Link leadership to
business strategy
Develop people in
stretch roles on the
Structured Structured approach to approach to
create create
awareness, awareness, performance with a safety
net
▪ Accelerate the
development of leaders significantly
▪ Take a business driven
systematic view of leadership development
stretch roles on the
job
Combine reflective
and fieldwork sessions
Make mentoring and
role modeling a ‘way of life’
instill instill motivation, motivation,
provide inputs provide inputs
and on the job and on the job practice and practice and
feedbackfeedback
Typical approach
Guide
Developmental
Stretch individual, deliver business impact and build confidence through on-the-job business challenges
Identification of learning edges and creation of action plans
B
C
E
Forums
Identify participants and match to specific challenges
A
• Superior, not in reporting hierarchy• Supports participant development through- Engaging with superiors and stakeholders- Coaching participant- Adding org context
1
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Developmental feedback from different sources (270o
Feedback)
Month 7
Structured inputs on different topics through- Forums input tailor-made, just-in-time knowledge and skills- On-the-job coaching to accelerate learning and track individual progress
Continued developmental feedback from different sources
D
F
Leadership systems2
Recruiting
Harnessing
▪ Structured process to decide on new
roles
▪ Use creative approaches to recruiting
▪ Volunteers and nominations for
positions
▪ Internal marketplace for talent
Matching
Performance
management
▪ Internal marketplace for talent
▪ Match portfolio of opportunities with
portfolio of leaders
▪ Enable X-business, functional mobility
▪ Ensure developmental focus to
performance management
▪ Make developing leaders a KPI
The vital few desired shifts in performance culture can be
influenced by interventions on 5 dimensions
The organization’s culture will shift if . . .
Understanding and conviction
‘…I know what is expected of me, I
agree with it, and it is meaningful’
Role-modeling
‘…I see leaders, peers and reports behaving in the new way’
Personal
3
Reinforcement mechanisms
‘…The systems reinforce the
change in behaviour I am being asked to
make’
Skills required for change
‘…I have the skills, capabilities and opportunities to behave in a new way’
Personal choice
‘…I choose to make a
difference’
Leadership development case studies
High-tech machinery
and equipment
company (60,000
employees, USD 17
billion revenue)
Leading retailer in
Latin America
Large retail bank
(26,000 employees,
20 geographies)
▪ Deep cultural diagnostic,
training and on-the-job coaching,
focus on top 100
▪ Rise in leadership abilities,
USD 500 million EBIT gap
▪ Leadership Academy launched
– core programme for top 250,
wider in focus for top 750
▪ Increased customer satisfaction,
8% increase in EBIT
▪ Developed critical mass of
leaders – focus on deep
personal transformation
▪ 20% drop in cost to income ratio:
strong external recognitionUSD 500 million EBIT gap
closed
8% increase in EBIT strong external recognition
Regional energy
powerhouse (USD 60
billion sales across
oil, gas, retail,
petchem)
Leading oil & gas
company (USD 40
billion sales, 2,000
employees)
Global chemicals
and materials
manufacturer
▪ High profile breakthrough
projects and ongoing capability
building
▪ USD 1.2 billion annual EBIT
improvement, new culture
▪ High impact fieldwork projects;
on-the-job coaching
▪ Sustainability achieved – nearly
30% of all employees
supporting projects
▪ Frontline training linked to daily
work
▪ USD 100 million savings in
6 months; improved leadership
capabilities
Learning from case studies
Go beyond training to holistic development
Develop a common leadership model
Work with the eco-system, not just the leadersWork with the eco-system, not just the leaders
Establish ownership with the business units
Focus on development instead of evaluation