Developing 21st Century Leaders Who Make a Difference
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Developing 21st Century Leaders Who Make a Difference

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TLNT Webinar from 11/3/11, presented by Barb Arth.

TLNT Webinar from 11/3/11, presented by Barb Arth.

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  • 1. Developing 21st Century LeadersWho Make a Difference2011 Research FindingsBarb Loew-Arth, AnalystLeadership Development & Succession ManagementNovember 3, 2011 Sponsored by:Copyright © 2011 Bersin & Associates. All rights reserved.
  • 2. Today’s Speaker Barb Loew-Arth Principal Analyst Bersin & Associates Responsible for: Leadership development and succession management research practices Copyright © 2011 Bersin & Associates. All rights reserved.
  • 3. Developing 21st Century LeadersWho Make a Difference2011 Research FindingsBarb Loew-Arth, AnalystLeadership Development & Succession ManagementNovember 3, 2011 Sponsored by:Copyright © 2011 Bersin & Associates. All rights reserved.
  • 4. About Bersin & AssociatesWho We Are and Our Research Practices Human Leadership Learning & Talent Talent Resources Development Development Acquisition Management Success Drivers Strategy & Planning | Disciplines | Systems and Solutions | Benchmarking Foundations Frameworks | Maturity Models | Factbooks® | High-Impact® Research Programs Focus Areas More than 80 specific areas of expertise Copyright © 2011 Bersin & Associates. All rights reserved.
  • 5. Agenda Join us for IMPACT§  Our research approach April 11-12, 2012 http://impact.bersin.com/§  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 Copyright © 2011 Bersin & Associates. All rights reserved.§  Cases in point
  • 6. 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. Copyright © 2011 Bersin & Associates. All rights reserved.
  • 7. 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? Copyright © 2011 Bersin & Associates. All rights reserved.
  • 8. Why Leadership Development (LD)cited as the top HR priority From Bersin’s TalentWatch 1Q2011 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 9. 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 Candidate Manager Peer Partner Mentor Customer Employee Copyright © 2011 Bersin & Associates. All rights reserved.
  • 10. 2011 Top Business ChallengesGlobalization, product expansion, innovation From Bersin’s TalentWatch 1Q2011 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 11. 2011 Top Talent Challenges From Bersin’s TalentWatch 1Q2011 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 12. Talent Shortages by Job Role From Bersin’s TalentWatch 1Q2011 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 13. 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 14. Case in PointTargeted leader levels – a focus on mid-level leader developmentIndustry: BankingEmployees: 11,000Development 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 planThe 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 15. Leadership Development Framework™ Leadership Strategy Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment, Strategy Assessment, Talent Management Integration Leadership Competencies/Capabilities Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements Executive Sponsorship. Steering Committees, Performance Consultants, Leader Audiences Program Evaluation, Key Metrics, Leadership Scorecard, Emerging Front-Line Mid-Level Senior Executives High Evaluation and Sustainability Change Management, Global and Local ImplementationOrganization & Governance Leaders Leaders Leaders Leaders Managing an Potentials Managing Self Managing Others Managing Other Managing a Enterprise Managers Function or BU Benchmarking, Business Impact Leadership Development Strategy 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) Development Solutions Curriculum Delivery Informal Formal (Social, Embedded, On-Demand) ILT Mentoring Virtual Classroom Communities of Practice e-learning Blogs Assessments Wikis Onboarding Action Learning Coaching Ex-Pat Assignments Simulation Stretch Assignments Job Rotations College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs Off-the Shelf Content Customized Content Leaders Teaching Leaders Technology Strategy Infrastructure Systems Integration Copyright © 2011 Bersin & Associates. All rights reserved. Leadership Brand and Leadership Culture
  • 16. Hewitt Case in Point Leadership StrategyIndustry: world class HR consulting and outsourcing services organizationEmployees: 23,000Development Challenge:§  To attract and build talentThe 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 educationThe Impact:§  Enhanced engagement scores§  Reduced voluntary attrition rate Copyright © 2011 Bersin & Associates. All rights reserved.
  • 17. UnitedHealth GroupCase in PointTailored leadership competencies – 21st century competenciesIndustry: Health careEmployees: approximately 80,000LD Challenges:§  Align LD program content with business goals§  Maintain only those programs that are aligned with driving achievement of business goals “Success Factors” Competency Framework by Level Employee Leadership Senior LeadershipThe Solution: Acts as a team Lead and develop Lead and develop the§  Define a leadership competency model player people organization Focus on Deliver value to Deliver value to customers customers customers Make fact-based Drive sound, Make strategic decisions disciplined decisions decisions Delivery quality Drive high-quality Achieve results execution organizational goals Support change Lead change and Champion change and innovation innovation and innovation Communicate Communicate Communicate effectively effectively effectivelyThe Impact: Act ethically Model and ensure Model and ensure ethical behavior ethical behavior§  Improvement in promotion rates, employee engagement scores and/or performance scores. Source: UnitedHealth Group, 2010 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 18. How does this align 1.  Executive Engagement 4.  All Levels of Leadership to the six Best 2.  Business Alignment 5.  Talent Management Integration Practices of LD? 3.  Leadership Competencies 6.  Targeted Solutions Leadership Strategy 1 2 3 4 5 6 Business Goals, Quantity of Leaders, Leadership Vision, Global Considerations, Strategy Owner, Strategy Sustainment, Strategy Assessment, Talent Management Integration 1 2 3 Leadership Competencies/Capabilities 1 2 Global, Functional, Cultural, Diversity, Core Values, Exposure, Experiences, Role Requirements 1 2 Executive Sponsorship. Steering Committees, Performance Consultants, 1 4 Leader Audiences Program Evaluation, Key Metrics, Leadership Scorecard, Evaluation and Sustainability Emerging Front-Line Mid-Level Senior Executives HighOrganization & Governance Change Management, Global and Local Implementation Leaders Leaders Leaders Leaders Managing an Potentials Managing Self Managing Others Managing Other Managing a Enterprise Managers Function or BU Benchmarking, Business Impact 1 2 3 4 5 6 Leadership Development Strategy 1 2 3 4 5 6 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) Development Solutions 1 2 3 4 5 6 Curriculum Delivery Informal Formal (Social, Embedded, On-Demand) ILT Mentoring 5 6 Virtual Classroom Communities of Practice e-learning Assessments 5 6 Blogs Wikis Onboarding Action Learning Coaching Ex-Pat Assignments Simulation College Professors Experts Pundits Portfolio Strategy Stretch Assignments Coaching Books Articles Blogs Job Rotations 2 6 Off-the Shelf Content Leaders Teaching Leaders College Professors Experts Pundits Portfolio Strategy Coaching Books Articles Blogs 6 Off-the Shelf Content Customized Content Leaders Teaching Leaders 5 Technology Strategy Infrastructure Systems Integration Copyright © 2011 Bersin & Associates. All rights reserved. 1 2 Leadership Brand and Leadership Culture
  • 19. Leadership Development Maturity Model™ Copyright © 2011 Bersin & Associates. All rights reserved.
  • 20. 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 21. 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 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 22. Level 3 Key Attributes •  Developing the organization •  Senior management participates and promotes •  Culture Setting •  Aligned with business strategy •  Future Looking 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 23. Level 4Key Attributes•  Senior management is highly engaged•  Talent management integration•  Comprehensive learning approach•  Learning culture is engrained 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 24. Organizations Are Maturing Their LD Copyright © 2011 Bersin & Associates. All rights reserved.
  • 25. Business Impact of Maturity Levels Copyright © 2011 Bersin & Associates. All rights reserved.
  • 26. Business Impact By Maturity Level Copyright © 2011 Bersin & Associates. All rights reserved.
  • 27. Moving Up the Maturity ModelFrom 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§  Create programs that target all levels of leadership§  Apply blended learning format Strategic Focused§  Evaluate programs to ensure they are Structured meeting objectives Inconsistent Copyright © 2011 Bersin & Associates. All rights reserved.
  • 28. Moving Up the Maturity ModelFrom 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§  Incorporate non-traditional learning activities into a blended learning solution Strategic§  Allocate sufficient resources to develop and Focused manage programs Structured Inconsistent Copyright © 2011 Bersin & Associates. All rights reserved.
  • 29. Moving Up the Maturity ModelFrom 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§  Utilize performance management for development and for defining learning needs Strategic Focused§  Review Succession planning data at Structured aggregate level Inconsistent Copyright © 2011 Bersin & Associates. All rights reserved.
  • 30. A Summary View: Moving Up LevelsWith Bersin & Associates’ Clients’ Adaptations Copyright © 2011 Bersin & Associates. All rights reserved.
  • 31. Current State Maturity 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 competenciesSelf-Assessment 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. 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? Effectiveness 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? 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 Challenges 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 32. Current State Maturity Assessment Strong •  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? Executive •  In what ways does senior leadership get engaged in the leadership strategy? Leadership developmentEngagement strategy? Tailored •  Does your company have defined leadership competencies? •  How often are these competencies reviewed and updated? Leadership •  Are your leadership programs closely aligned with these competencies?Competencies •  How does your organization ensure leadership development is aligned with business strategies and will Business meet changing business needs? Strategy Such as: Needs analysis; meetings with line managers; L&D business plan; program measures; executive Alignment reviews; balanced scorecard •  What is the targeted audience of your leadership development strategy – IC; First-level Managers; Mid-levelAll Levels of Managers; Senior Managers; Executives? •  Are programs for each targeted level of the same quality?Leadership Talent •  Do you have a well-defined and communicated talent management strategy? •  To what extent does your organization integrate leadership development with any of the followingManagement talent management activities -- Performance Management; Succession Planning; Competency Integration Management; Learning & Development; Recruiting; Compensation; Workforce Planning? •  Do your leadership programs include a blended learning strategy? Targeted •  Do your leadership programs include a combination of knowledge acquisition, experiential or application, and reinforcement mechanisms? Solutions •  What kinds of delivery and learning mechanisms are applied to each leadership program? Copyright © 2011 Bersin & Associates. All rights reserved.
  • 33. 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 34. 21st Century LD Competencies2010-2011 research data Core 21st Century •  Integrity/Ethics – this is the foundation; you •  Innovation -- to think creatively while taking must tell the truth and do the right thing initiative and calculated risks; having vision •  Visioning/Strategy – leaders need to point beyond the immediate situation; exploring and the way and develop compelling plans integrating diverse perspectives and •  Results Focus – leaders must have a bias for recognizing unexpected opportunities action and be relentless about getting things •  Agility -- visionary, collaborative, creative , and done proactive learning from prior experiences that •  Judgment - a great differentiator – it seems enable leaders to direct sustained success you either have it or you don’t •  Global acumen --global business acumen, •  Passion/Optimism – who doesn’t want to worldviews and perspectives, global people work for someone who exudes positive leadership and global business knowledge energy? •  Emotional intelligence -- recognizes and •  Building the Team – great leaders hire and understand emotions, manages personal, surround themselves with great talent individual and team performance using such •  People Development– people flock to leaders awareness who have a reputation for growing talent •  Management of diverse (women and multi- •  Accountability - leaders have to accept and generational) workforces -- how leaders create a culture of accountability perceive others and how those perceptions affect their interactions, communication, adaptability and change management Copyright © 2011 Bersin & Associates. All rights reserved.
  • 35. High-Value Development Model70% Stretch assignments Rotational assignments Experiential Cross-functional assignments Learning from others Special assignments Action Learning20% Mentoring Coaching Feedback 360s Assessments Leadership styles inventories10% Workshops Classes Formal classroom Seminars E-Learning Conferences Courses Copyright © 2011 Bersin & Associates. All rights reserved.
  • 36. MercerCase in PointTargeted solutions – leveraging informal learning in a blended approachIndustry: Business services providerEmployees: 19,000Development Challenges:§  Improve leaders’ orientation of client-centricity§  Improve execution of client deliverablesThe 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 budgetThe Impact:§  List here the %, # etc of improved bench strength, mid level promotes, etc. Copyright © 2011 Bersin & Associates. All rights reserved.
  • 37. Globalized LD …thinking globally, acting locally …thinking globally and acting globally Copyright © 2011 Bersin & Associates. All rights reserved.
  • 38. The PayOff From Globalized LD From McKinsey’s 2008 study: Why MultiNationals Struggle to Manage Talent Copyright © 2011 Bersin & Associates. All rights reserved.
  • 39. 10 Factors of Global TalentManagement 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 40. LD Enabled With Technology• Understand how the intelligent use of new technologiescan help your organization’s leaders to lead globally;• Recruit, develop and maintain a network of technicallycompetent leaders who can manage systems around theworld;• Know how to make and manage investments in newtechnologies; and,• Be positive role models in leading the use of newtechnology that provides a global view and enablesglobal management of an organization’s talent. Copyright © 2011 Bersin & Associates. All rights reserved.
  • 41. Case in Point: HP LeveragesTechnology 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. Copyright © 2011 Bersin & Associates. All rights reserved.
  • 42. DifferentiatorsWhat 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 43. Recipe for SuccessWhat the top leadership companies are doing to build great leaders andorganizational 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 44. 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! www.bersin.com Copyright © 2011 Bersin & Associates. All rights reserved.
  • 45. 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 46. Q&A Barb Arth Senior Analyst Barb.arth@bersin.comFor inquiries about obtaining slides: sales@bersin.com Copyright © 2011 Bersin & Associates. All rights reserved.
  • 47. How to Get Our HILD Research§ 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 Copyright © 2011 Bersin & Associates. All rights reserved.
  • 48. 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 info@bersin.com.§  Reports are available for purchase at our store. Copyright © 2011 Bersin & Associates. All rights reserved.