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2013 01-15 LPI Leadership Potential Indicator


Presentation about the Leadership Potential Indicator (LPI) published by

Presentation about the Leadership Potential Indicator (LPI) published by

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  • This is a self-playing presentation about the Leadership Potential Indicator which is provided by MySkillsProfile and the Executive Leadership Insititute.
  • In the next fifteen minutes, we will look at the purpose of the test, some different applications for it, how the test was developed and the model of leadership skills and competencies that lies behind the test. We will define what the scales measure, how an individual’s responses are transferred into standardized scores and the design and contents of the computer generated feedback report. In the final part of the presentation, we will cover the technical properties of the instrument.
  • The LPI assessment test has two purposes. First, at the individual level, the purpose of the instrument is to assess a person's management and leadership skills, style and competencies, and give them suggestions about how to improve their performance and reach their potential. Second, at the corporate or organizational level, the purpose of the instrument is to benchmark the skills and competencies of a group of executives, to, for example, help understand where their strengths and weaknesses lie, and to help design learning and development programs.
  • The test is suitable for different applications in recruitment, selection and development. Here are some examples. In selection, the test provides a framework of competencies to compare candidates against, and use as the foundation for competency-based interviews. In assessment centers, the LPI profile provides information about a candidate’s leadership level, style, strengths and development needs, to put alongside information from in-tray and group exercises. In executive education programs, the instrument will help students to understand and reflect on their strengths and development needs. In coaching, the interpretive report provides a structure for the coach and client, to jointly explore the client’s management and leadership skills and competencies. And in team building, sharing profiles will help the team to understand the range of skills and competencies that the team possesses, and it will help reveal gaps in the team’s capabilities. Finally, the data from a group of completed profiles will provide metrics about an organization’s management capability and training needs.
  • This is a summary of how the test was developed. Development started with a review of the literature on management and leadership, to identify characteristics of effective leaders. The authors then examined published competency frameworks, to identify the competencies that occurred frequently under management and leadership. These activities led to the generation of a concept model of management and leadership. The model is described in the next slide. The authors then wrote items for scales, and developed a trial questionnaire, which was made available as a free test on the internet. There followed an iterative process of analysis and revision until the questionnaire demonstrated acceptable reliability. Norms for the questionnaire were then developed and data on validity was collected.
  • The LPI questionnaire was designed around a five factor concept model of management and leadership: Managing Change, Planning & Organizing, Interpersonal Skills, Results Orientation, and Leadership.
  • This table defines what 12 of the twenty LPI scales measure. It covers three of the five areas in the LPI competency framework: managing change, planning and organizing, and interpersonal skills. You will find more detailed descriptions of the scales, and how to interpret scale scores, in the user manual.
  • This table is in the same format as the previous one. It shows what the remaining eight scales measure. These cover the key factors: results orientation, and leadership. These two tables show, that the LPI prides good coverage of the management and leadership competencies that occur frequently in company competency frameworks. Read chapter 3 of the user manual, to develop your understanding of the scales.
  • This is an example of the more detailed scale descriptions that you find in the user manual. This table shows how to interpret high, moderate, and low scores on the scale that measures a person’s ability to, initiate work activity. It gives examples of the scale items. It also shows which other scales this scale has strong correlations with. Initiating activity has highest correlations with: Persuading and Influencing, Learning and Developing, and Making Decisions. The user manual also gives information about the positive and negative implications of high and low scale scores.
  • In the LPI, raw scores are transformed into Standard Ten, or sten, scores, to indicate a test taker’s approximate position to other managers in the population. This table shows how to interpret sten scores, using percentiles, leadership levels, and definitions of competence. For example, a person who gets a sten score of 7 on a scale, has scored higher than about seventy five per cent of managers in the benchmark group. This is defined as level four, and it indicates a well-developed competency, and an emerging strength. Scores in the range of four to seven can be interpreted as average scores, with seven being high average, and four being low average. A sten of 8 or more suggests above average or outstanding performance, and a sten of 3 or less suggests below average, or low performance.
  • The LPI feedback report is written in the second person, self help style, and is a mixture of text and graphics. The introduction describes the purpose of the report and how to interpret scores. The second section defines what the scales measure. The report then provides a concise summary, of the executive’s leadership level and leadership style. The next five sections describe the respondent’s level, style and competencies in more detail, and there is a final section with suggested next steps. There is also a link in the final section to a downloadable performance improvement guide. The report gives a wide-ranging description of a person's style and competencies, but it is not overly long.
  • The LPI indicates an executive’s approximate leadership level using a five level model similar to the Level 5 Leadership framework developed by leadership author Jim Collins in his book Good to Great. In the LPI framework, a level 5 leader is defined as an outstanding leader who delivers exceptional performance through a combination of well-developed skills and competencies in management and leadership. At the other end of the continuum, a level one leader is defined as an individual contributor who needs to boost their management and leadership skills and competencies in order to join the management ranks. The leadership level indicator is based on an executive’s total score on the questionnaire. In order to achieve a level 5, you need to score in the top 10 per cent.
  • Creating and living a vision is the role of leaders in organizations. A successful vision gives a sense of the future, guides decision making and strategy, creates a shared purpose, provides guidelines that determine behaviour, inspires emotion and connects to values. The LPI classifies the test taker into one of four styles of vision building based on their competencies in managing change and planning and organizing. Modernizers challenge the old order and its way of doing things. Combining competencies in managing change and planning and organizing, modernizers come up with a specific vision for organizational change along with a plan with milestones for implementation. Originators come up with new ideas for research or technology or production for the organization. They operate best in environments that call for idea generation and creativity. They differ from Modernizers in lacking the planning and organizational skills to translate concepts and ideas into firm proposals for change. Implementers are skilled at setting up, scheduling and tracking projects. They have the skills and attributes to define tasks, identify dependencies between tasks and critical paths, produce Gantt charts and manage resources. They differ from Modernizers and Originators in finding it difficult to generate original ideas about new markets or products or technologies that provide the basis for vision building. Traditionalists are more comfortable in stable organizations that utilize tried and tested technologies. Traditionalists lack the competencies to lead the development of a vision in organizations operating in fast moving business environments.
  • Today's leaders need to be able to share information, and build understanding with bosses, peers, subordinates, and other groups of stakeholders such as shareholders and financial institutions. This includes information about the company's vision, goals, strategies, services, and financial performance. Sharing the goals requires leadership skills, and interpersonal skills. The LPI categorizes a test taker into one of four styles, based on their skills in these areas. Directors build understanding and ownership of the organization's vision and objectives, through a blend of strong leadership and communication skills. Directors provide direction and control, but they also have the interpersonal skills to inspire, persuade, and cajole employees to deliver the vision and strategy. Presenters have strong oral communication skills, and make good public speakers and chairpersons. They have the skills to communicate the vision, and build a shared understanding of company goals, based on an agreed script. Presenters can struggle, however, when employees look for direction, and there is not an agreed company position. Regulators are strong on setting the direction of travel and exercising control, but weaknesses on the interpersonal side, mean they lack the ability to, share the vision, goal, and objectives with others. Independent and socially reserved, regulators often rely on a task-oriented management style, to achieve objectives and deliverables. Followers operate best in team positions without managerial responsibilities. In managerial and leadership positions, followers require considerable support, to combat their natural reserve and unwillingness, to exercise leadership and control.
  • Today's leaders have to build support for change among their employees, their customers and their stakeholders such as shareholders and financial institutions. While the management team may be positive about change, more junior staff often feel threatened by change and worry about the implications for their jobs. Managing change requires initiating, scoping, communicating and project managing with other people. Leaders need good interpersonal skills to carry out these tasks successfully dealing with people's feelings and emotions.Catalysts increase the rate of change in an organization because they are people-oriented innovators. Catalysts are change agents who possess a creative style along with empathy and good interpersonal skills. Their empathy and interpersonal skills mean that they deal skilfully with other people's concerns and/or resistance to change.Explorers thrive on change and enjoying venturing into new territories. They are strongly focused on opening up new markets and taking the organization in new directions. Being very independent-minded, Explorers tend to expect others to see things the way they do and tend to underestimate the amount of effort needed to gain support for change.Adaptors are people managers who are most comfortable implementing change programmes initiated by other managers, for example, by headquarters. Adaptive leaders have the people skills to gain support for change but tend to lack the creativity and drive to personally initiate radical change in an organization.Defenders tend to be slightly more resistant to new ideas and initiatives particularly those brought about by new technology. In leadership positions, Defenders need to be convinced about the benefits of technology led change before they embrace it. Defenders tend to worry about our dependency on technology and that modern technology has evolved to control us rather than to serve us.
  • Delivering success requires a combination of careful planning and energy, dedication and commitment. Neither set of competencies is sufficient by itself. A carefully crafted strategy will not succeed without people with ambition and drive to implement it. Similarly, without planning and organization, energy and drive can be wasted on the wrong tasks. At the individual level, a person's scores on these two dimensions result in four characteristic styles.Corporate Managers are used to operating in large organizations where new initiatives tend to be planned by groups of people. They understand the importance of achieving corporate objectives, targets and deadlines in order to advance in the organization. This type of manager tends to operate in a systematic and organized manner and presents himself or herself as "a safe pair of hands". Corporate managers can find it unsettling to work in a fast moving environment where decisions need to be made on instinct and intuition and without the support of committees and steering groups.Individual Contributors operate best outside or on the fringes of traditional management structures. They are like entrepreneurs bringing creative proposals and ideas to projects. They operate best like consultants moving between different things rather than managing a large team or business unit. The individual contributor prefers to operate on his or her own and tends to get frustrated by project governance structures where decisions are made by committees and steering groups.Planners specialize in scheduling the implementation of new business processes and systems. They are good at working in groups drawing up project plans and organizing work activities in a methodical manner. They are at home working in corporate environments where decisions are taken in groups and alterations are subject to change control procedures. Planners are unsettled when people deviate from company policies and procedures or want to cut corners. They also lack the drive to identify new and innovative ways of doing things.Steady Workers work reliably and steadily and make systematic progress towards their goals over a long period of time. Most organizations need people who are sensible and dependable to carry out tasks that some people with a high level of ambition and drive struggle to find interesting and satisfying. Organizations need steady workers to grow progressively over a long time.
  • At the end of the feedback report, there is a graphic profile chart of the test taker’s sten scores. The profile chart shows the respondent’s sten scores on the twenty LPI primary scales and on the five LPI key factors This slide shows an extract of the LPI profile chart.
  • The LPI development guide contains practical tips and recommendations, and a development planning template, to help those who have taken the test, think about and plan development activities. The booklet contains reading recommendations and suggestions, for first-level, middle, and senior managers. This slide shows the type of suggestions and recommendations that appear in the booklet. There is a link to download the booklet in the next steps section of the feedback report.
  • The LPI was designed to meet the standards of a modern psychometric test. The LPI questionnaire has a median scale reliability of 0.71--in the range defined as adequate by the EFPA Review Model. The correlations between the competency scales and self-assessed job performance range from 0.05 to 0.30 with a median of 0.25. All the correlations were statistically significant. The best predictors of performance were the scales measuring Persuading and Influencing, Monitoring Quality, Planning and Prioritizing and Making Decisions. Altogether, 14% of the variability in job performance ratings was predicted by knowing the scores on these scales. The instrument is supplied with one set of international norms based on a sample of 20,000 respondents. The majority of respondents came from the USA, Canada, the UK, Australia and New Zealand. Although there are statistically significant differences related to gender, age, ethnic origin and nationality, the observed differences are very small, so there is no need for separate related to gender, age, ethnic origin or nationality.
  • If you are interested in using the LPI, but want to know more about it, reading the user manual and having a look at a sample report are a good place to start. You can also download these documents using the links below, and you can also get them from our website.Thank you for your interest in the LPI.


  • 1. LEADERSHIPPOTENTIAL INDICATORLeadership Assessment and Development Turn on your sound
  • 2. 16/01/2013 MySkillsProfile © 2012 2Contents• Purpose• Applications• Development approach• Concept model• What the scales measure• Scoring approach• Feedback report• Technical properties
  • 3. 16/01/2013 MySkillsProfile © 2012 3Purpose• Individual. Assess management and leadership style and competencies and provide recommendations for performance improvement.• Corporate. Benchmark group competencies and provide recommendations for organizational development.
  • 4. 16/01/2013 MySkillsProfile © 2012 4Applications• Selection interviews• Assessment centers• Executive education• Coaching• Team building• Training needs analysis/metrics
  • 5. 16/01/2013 MySkillsProfile © 2012 5Development Approach• Review of literature on management and leadership• Analysis of existing organizational competency frameworks• Development of concept model• Generation of items for scales• Online trial of draft questionnaire• Reliability and factor analysis• Revision of items and scales• Generation of norms
  • 6. 16/01/2013 MySkillsProfile © 2012 6Concept Model Planning & Managing Change Interpersonal Skills Organizing Results Orientation Leadership
  • 7. 16/01/2013 MySkillsProfile © 2012 7 LPI ScalesMANAGEMENT AND LEADERSHIP COMPETENCIES1 Managing Change Competency Requirements1.1 Initiating Activity Shows initiative, has positive attitude, self starter1.2 Taking Risks Takes risks, challenges accepted practice, bends rules to make progress1.3 Creating & Innovating Originates change, makes things better, produces creative ideas and solutions1.4 Adapting to change Adapts quickly to change, responds flexibly to people and situations2 Planning and Organizing Competency Requirements2.1 Analyzing & Interpreting Analyses situations carefully, makes rational judgments and logical decisions2.2 Making Decisions Decides quickly, displays confidence, acts independently when necessary2.3 Planning & Prioritizing Plans and prioritizes work activities, manages time effectively2.4 Monitoring Quality Takes pride in work, does job well, gets the detail correct3 Interpersonal Skills Competency Requirements3.1 Communicating Expresses views clearly, makes impact with presentations3.2 Listening & Supporting Sensitive to people’s needs, involves people in plans and decisions3.3 Relating & Networking Develops strong working relationships, builds rapport quickly3.4 Team Working Strong team player, works effectively with people
  • 8. 16/01/2013 MySkillsProfile © 2012 8More LPI ScalesMANAGEMENT AND LEADERSHIP COMPETENCIES4 Results Orientation Competency Requirements4.1 Achieving Goals Self motivated, driven to get ahead, prepared to do whatever it takes4.2 Meeting Customer Needs Applies customer concepts, focuses on quality and service4.3 Focusing on the Business Focuses on bottom line, controls costs, sets ambitious targets4.4 Learning & Developing Exploits opportunities for self development, energetic, self aware5 Leadership Competency Requirements5.1 Persuading & Influencing Has presence and authority, enjoys being in charge, takes lead5.2 Motivating & Empowering Empowers and motivates team members, delegates tasks effectively5.3 Coaching Others Coaches and develops team, gives regular feedback5.4 Coping with Pressure Handles pressure and stress, stays calm and in control
  • 9. 16/01/2013 MySkillsProfile © 2012 9Scale DescriptionSCALE 1.1. INITIATING ACTIVITYHigh ScorerCompetence LevelOriginates activities, tasks or managerial actions.Example scale itemI act independently when it is necessary.Moderate ScorerCompetence LevelDisplays as much initiative as the average manager.orDisplays initiative in some situations but not others.Low ScorerProcrastinates or waits for others to originate activities, tasks or managerial actions.Example scale itemI don’t usually take the first step.Relationships with Other Scales PositiveStrongest correlations with Persuading and Influencing Learning and Developing Making Decisions
  • 10. 16/01/2013 MySkillsProfile © 2012 10Scoring ApproachSten Percentile Meaning Level Competence A score of 8 is higher than about Very well-developed competency/key strength to8-10 5 90% of the comparison group capitalize on A score of 7 is higher than about 7 4 Well developed competency/emerging strength 75% of the comparison group A score of 5 is higher than about Moderately well developed competency/mid- 5-6 3 40% of the comparison group range skill A score of 4 is higher than about 4 2 Less developed competency/embryonic skill 25% of the comparison group A score of 3 is higher than about 1-3 1 Least developed competency/possible flaw 10% of the comparison group
  • 11. 16/01/2013 MySkillsProfile © 2012 11Feedback Report1. Introduction2. What the scales measure3. Executive summary4. Leadership level5. Developing the vision6. Sharing the goals7. Gaining support8. Delivering success9. Development advice
  • 12. 16/01/2013 MySkillsProfile © 2012 12Leadership Level Level Core Competencies Outstanding leader who delivers exceptional performance through a combination of well- 5 developed skills and competencies in management and leadership. Effective leader who possesses many well-developed skills and competencies in 4 management and leadership. Competent manager who possesses moderately well-developed skills and competencies 3 in management and leadership. Junior-level manager with some moderately well-developed skills and competencies in 2 management and leadership and some weaker areas and gaps. Individual contributor who needs to boost management and leadership skills and 1 competencies in order to join the management ranks.
  • 13. 16/01/2013 MySkillsProfile © 2012 13Developing the Vision Originators Modernizers Come up with new ideas for research or Challenge the old order and its way of technology or production for the doing things… organization... Managing Change Traditionalists Implementers Are more comfortable in stable Are skilled at setting up, scheduling and organizations that utilize tried and tested tracking projects… technologies… Planning and Organizing
  • 14. 16/01/2013 MySkillsProfile © 2012 14Sharing the Goals Presenters Directors Have strong oral communication skills Build understanding and ownership of and make good public speakers and the organizations vision and objectives chairpersons… Interpersonal Skills through a blend of strong leadership and communication skills... Followers Regulators Operate best in team positions without Are strong on setting the direction of managerial responsibilities… travel and exercising control but… Leadership
  • 15. 16/01/2013 MySkillsProfile © 2012 15Gaining Support Explorers Catalysts Thrive on change and enjoying venturing Increase the rate of change in an into new territories... organization because they are people- oriented innovators... Managing Change Defenders Adaptors Tend to be slightly more resistant to new Are people managers who are most ideas and initiatives particularly those comfortable implementing change brought about by new technology… programmes initiated by other managers... Interpersonal Skills
  • 16. 16/01/2013 MySkillsProfile © 2012 16Delivering Success Individual Contributors Corporate Managers Operate best outside or on the fringes of Are used to operating in large traditional management structures… organizations where new initiatives tend to be planned by groups of people… Results Orientation Steady Workers Planners Work reliably and steadily and make Specialize in scheduling the systematic progress towards their goals implementation of new business over a long period of time… processes and systems… Planning and Organizing
  • 17. 16/01/2013 MySkillsProfile © 2012 17LPI Profile Chart (extract)John SmithScale 1 2 3 4 5 6 7 8 9 10 High Score Meaning Shows initiative, has positive attitude, self-Initiating Activity < - > starter Takes risks, challenges accepted practice,Taking Risks < - > bends rules to make progress Originates change, makes things better,Creating and Innovating < - > produces creative ideas and solutions Adapts quickly to change, respondsAdapting to Change < - > flexibly to people and situations
  • 18. 16/01/2013 MySkillsProfile © 2012 18Development Tips1.1 Initiating ActivityFirst-level a Read HBRs 10 Must Reads on Managing Yourself (HBR Onpoint Collection) b Demonstrate a sense of urgency for achieving goals and resolving problems c Talk to your boss and mentor about behaviors’ that demonstrate drive and initiative d Act quickly when problems arise or circumstances change e Review whether your performance is suffering from too much multitaskingMiddle a Read HBRs 10 Must Reads on Managing Yourself (HBR OnPoint Collection) b Present proposals for change and improvement to your bosses c Encourage the team to demonstrate a sense of urgency for achieving goals and resolving problems d Use peers as a sounding board for ideas and proposals for change e Volunteer for new responsibilities and assignmentsSenior a Read HBRs 10 Must Reads on Managing Yourself (HBR OnPoint Collection) b Encourage the people you are responsible for to take the initiative and be proactive and inventive c Consider how the organization could make a greater contribution to the community d Identify potential candidates for additional responsibilities and assignments e Coach and mentor others in the behaviours that demonstrate enterprise and resourcefulness
  • 19. 16/01/2013 MySkillsProfile © 2012 19Technical Properties• Median scale reliability is 0.71• Median correlation between LPI scales and job performance ratings is 0.25• Median correlation of 0.77 between LPI scales and markers from Emotional Competence Framework• Norms based on international group of 20,000 respondents with equal numbers of men and women• 50% of respondents from the United States, about 20% from the United Kingdom, about 16% came from Canada, Australia and New Zealand• Mean age of the sample is 38 years
  • 20. 16/01/2013 MySkillsProfile © 2012 20Further Information• Download the User Manual--click here• Have a look at an example feedback report--click here• View a video presentation about the LPI--click here• Purchase an individual assessment--click here• Open an account to test a group--click here• More questions--email us