Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K Balyan


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Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K Balyan

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Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K Balyan

  1. 1. 2nd National HRD Leaders Retreat Goa 24-26 July, 2014 Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda Dr. A.K.Balyan
  2. 2. 2  The Chanllenging Business Environment  Inspirational Leadership  The HR Agenda Presentation Overview
  3. 3. Going Ahead :The New World Order of Business  Mistrust of big business  Far less stability in economic and political affairs  A shift in the centre of economic power away from the traditional bastions of USA & Western Europe to other economies, especially the BRIC countries  A far stricter regulatory environment  Much greater public-private-not for profit partnerships  Demand for addressing the triple bottom-line of profit, people and planet. ___________________________________________________________ VUCA World : Volatile, Uncertain, Complex & Ambignous 3
  4. 4. Levels of Uncertainty… Source : Mckinsey & Co. 4
  5. 5. How Uncertain Are Companies 55 30 28 24 24 0 10 20 30 40 50 60 Sales Customer Preference Availability/cost of funding Competitor Actions Regulatory Actions % of companies less able to make satisfactoryforecasts Source : Mckinsey global survey on economic conditions5
  6. 6. Striking the Balance: to Manage the New World Order in Business Manage the Present Selectively Forget the Past Create the Future 6
  7. 7. 7  The Chanllenging Business Environment  Inspirational Leadership  The HR Agenda Presentation Overview
  8. 8. A Leadership Story  A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect sit for a port.  The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.  Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree. 8
  9. 9. A Leadership Story (contd.) And shouts down to the assembled group below… “Wrong Way!” (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People”). “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker) 9
  10. 10. Leadership:Definitions The only definition of a leader is someone who has followers.To gain followers requires influence , but doesn't exclude the lack of integrity in achieving this. Indeed, it can be argued that several of the world's greatest leaders have lacked integrity and have adopted values that would not be shared by many people today. Peter F. Drucker, Management Guru 10 Leadership is influence - nothing more, nothing less. This moves beyond the position defining the leader, to looking at the ability of the leader to influence others - both those who would consider themselves followers, and those outside that circle. Indirectly, it also builds in leadership character, since without maintaining integrity and trustworthiness, the capability to influence will disappear. John C.Maxwell,(born 1947) Renowned ‘Leadership’ writer
  11. 11. Leadership:Definitions Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential. Warren Bennis, Noted ‘Leadership’ Thinker 11 A true leader would like to leave behind a legacy of that he made a difference that he improved the quality of life of the people whom he served and that there was nothing that he did which was in a manner speaking for himself,” Ratan Tata, Chairman, Tata Group
  12. 12. Leadership:Definitions We’ve got 25,000 people at Apple. About 10,000 of them are in the stores. And my job is to work with sort of the top 100 people, that’s what I do. That doesn’t mean they’re all vice presidents. Some of them are just key individual contributors. So when a good idea comes, you know, part of my job is to move it around, just see what different people think, get people talking about it, argue with people about it, get ideas moving among that group of 100 people, get different people together to explore different aspects of it quietly, and, you know – just explore things.” Late Steve Jobs on on his role as leader at Apple 12
  13. 13. *US 2008 Crisis: Lack of Leadership? Mckinsey Survey of Corporate Leaders-2009
  14. 14. Why Leadership is important? History has been crafted by leaders The Progress of Human Development is a treatise on outstanding leaders – with diverse motives & styles who created a remarkable impact through their foresight, courage, charisma and influence. 14
  15. 15. 15 Leadership : The hidden key to variance in performance Similar Size Similar product portfolios and price points Similar market / competitive positions Source : Hay Group
  16. 16. 16 50 years of Hay Group research into outstanding leaders has proven that effective leaders impact results, by creating a ‘climate for Success’ INDIVIDUAL v Motives v Competencies Leadership Styles Job Requirements Organisational Climate DISCRETIONARY EFFORT 70% 30%  Motives and Competencies Influence natural Leadership Styles (to an extent of 50 to 70%), which in turn influences Climate  Climate contributes to 30% of the variations in bottom – line performance ORGANISATIONAL EFFECTIVENESS (Measured in Profit, Margin & Growth Source : Hay Group
  17. 17.  Set a Compelling Vision  Troubleshooting and Solving Problems  Enthuse People  Utilise the power of collaboration  Provide a Safety Net for their People  Lead and Manage Change  Act as Coach and Mentor  Lead by example  Accept Mistakes  They drive Motivation What do Inspirational Leaders do ………. 17
  18. 18. How Inspirational Leaders Make a Difference Leadership Versus Management Manager Leader 1. Has a short-range perspective Has a long-range perspective 2. Plans how and when Asks what and why 3. Eyes the bottom line Eyes the horizon 4. Imitates others Originates 5. Accepts the status quo Challenges the status quo 6. Does things correctly Does the correct thing 7. Seeks continuity Seeks change 8. Focuses on goals for improvement Focuses on goals of innovation 9. Power is based on position or authority Power is based on personal influence 10. Demonstrates skill in technical competence Demonstrates skill in selling the vision 11. Demonstrates skill in administration Demonstrates skill in dealing with ambiguity Demonstrates skill in supervision Demonstrates skill in persuasion 18
  19. 19. Manager Leader 1. Works toward employee compliance Works toward employee commitment 2. Plans tactics Plans strategy 3. Sets standard operating procedures Sets policy 4. Relies on analytical decision-making style Relies on intuitive decision-making style 5. Is risk cautious Takes the necessary risks 6. Uses a “transactional” communication style Uses a “transformational” communication style 7. Mostly uses an informational base of data and facts Uses an informational base, including “gut” feelings 8. Builds success through maintenance of quality Builds success through employee commitment 9. Does not want to experience anarchy Does not want to experience inertia 10. Plans, budgets, and designs details steps Develops the vision and the strategies to achieve it 11. Sets standards of performance Sets standards of excellence 12. Develops the detailed plan to achieve results Develops the future direction by gathering future trends 19 How Inspirational Leaders Make a Difference Leadership Versus Management
  20. 20. Leadership Company Need to move from a Command- and- Control Company to a Leadership Company Run with a network of leaders No hierarchy People free to speak their minds about company performance & thus people are more productive Multiple first-among-equals leaders in a leadership company will make decisions of a consistently higher quality because many leaders and constituents will be involved in much of the decision making Employees derive satisfaction from being involved in work that produces products or services that customers buy with increasing satisfaction 20
  21. 21. Total Leadership 21
  22. 22. “The process of becoming a leader is similar, if not identical, to becoming a fully integrated human being” WARREN BENNIS Leadership Guru 22
  23. 23. REINVENTING LEADERSHIP OLD LEADERSHIP NEW LEADERSHIP 1. Economy : Profitability Ecology : Sustainability 2. Character : Situational Integrity : Unconditional 3. Talent : Compliance Talent : Commitment 4. Position Power Influence Power 5. Isolation / Separation Connection / Cause 6. Protective Custody Interdependency Source : Drucker, Leadership Excellence23
  24. 24. OLD LEADERSHIP DEVELOPMENT NEW LEADERSHIP DEVELOPMENT 1. Semi – academic Field Performance 2. Classes / Content Experience / application 3. Solo and site learning Social / mobile learning 4. Maps and charts Compass and context 5. Teacher / Consultant Coach and mentor 6. Skillsets / mindsets Social / Political savvy 7. Dominance / deference Cooperation / Synergy 8. Draw from business Disparate fields 9. Focus on managers Focus on followers Source : Drucker, Leadership Excellence REINVENTING LEADERSHIP DEVELOPMENT 24
  25. 25. 25  The Chanllenging Business Environment  Inspirational Leadership  The HR Agenda Presentation Overview
  26. 26. Imperatives for HR Demographic Changes -  Multi-generational workforce  Ageing Workforce- talent crunch  Workforce diversity Cultural Changes -  Personal and professional life balance  Social responsibility and global sustainability Macro factors -  Economic Crisis  Lack of funding  Political uncertainty  Change in policy framework  Entry of foreign players Technology Evolution:- IT enablement, internet and mobile systems, GPS, ERP pervasiveness Globalize Retain Talent Technology Renewal Pressure to innovate Imperatives for HR
  27. 27. GLOBAL HUMAN CAPITAL TRENDS 2014 CEO’s and HR Leaders consider Talent Management as a key for their organisation growth Survey : 2500 + organisations, 90+ countries 27 Lead & Develop Attract & Engage Transform & Reinvent (i) Leadership is top concern - “Readiness Gap (i) Change in Talent acquisition, recruitment (i) Reskill HR Team – All-rounder – Business Consultant (ii) Globalise Leadership Programmes - New age & ways of Learning and Development (ii) Build Passion & Purpose - “Talent Magnet” (ii) Use HR Analysis (iii) New Model of Performance Management - Replace ‘rank & yank’ with coaching & development (iii) Diversity as business strategy (iii) Globalise and localise - - High impact and flexibility (iv) Create a Global skill supply chain Source : Delloitte, NHRDN
  28. 28. INDIA TOP HUMAN CAPITAL TRENDS 2014 Survey : 1500 Business, HR Leaders 1. Leadership Pipelines and readiness 2. Talent Acquisition and access 3. Reskilling the HR function 4. Retention and engagement 5. HR Technology 6. Talent and HR Analytics 7. Performance Management 8. Work Force Capability 9. Diversity & inclusion 10.Learning & Development ____________________________________________________________ Level of preparedness (capability index) lags the expectations. The “Capability gap” ranges 20% to 29% for most of the trends. 28 Source : Delloitte, NHRDN
  29. 29. Inspirational Leadership Competencies 1 . Dealing with uncertainties Extrovert Awareness of the External Environment Unruffled Risk assessment capability 29
  30. 30. Inspirational Leadership Competencies 2. Manage Complex Teams  Have strong interpersonal skills  Networking capability  Negotiating ability  Communicate Clearly  Has the ability to promote team decision making 30
  31. 31. Inspirational Leadership Competencies 3. Managing Business using Analytics  Institutionalize Metrics /Analytics in all Managerial domains  Uses latest tools and technology to analyse business data Has the ability to take sound decisions based on analytics 31
  32. 32. Inspirational Leadership Competencies 4. Management of Change & Work Environment  Create the environment necessary in the organization to embrace proactive change  Be seen as a Change Champion – who walks the talk  Create guiding coalitions at all levels to take the change process forward  Reward the key people who have successfully steered the change 32
  33. 33. Inspirational Leadership Competencies 5. Capability to understand dynamics of performance & strategy  Understanding of business  Can strategies effectively, leveraging strengths and opportunities Is able to deploy people at key positions – right people for the right role 33
  34. 34. Inspirational Leadership Competencies 6. Capable of Quick Decision Making  Can develop scenarios while taking a decision Ability to analyze objectively these scenarios  Capable of creating a consensus on best option Understands when is the right time to execute the decision 34
  35. 35. Inspirational Leadership Competencies 7. Use and promote Technology  Understanding the nuances of changing technology  Able to choose which technology has to be adopted  Reward people who implement technological change 35
  36. 36. 1. Defining Leadership Criteria -Define the criteria of Leadership -Map the criteria in performance appraisal - Skill gap analysis Actions: Define KRAs Structure the parameters 36 Developing Inspirational Leadership Competencies : HR Agenda
  37. 37. 2. Benchmarking Strengths and Weaknesses Companies that excel in leadership development “ grow leaders as opposed to buying them”. HR should tell individuals know what they are doing well and what they can improve upon. Actions:- Conduct Assessment Centres, Share the results and frame development plans 37 Developing Inspirational Leadership Competencies : HR Agenda
  38. 38. 3. Training and Leadership Development Great leaders and managers do not necessarily start off with the basic skills to make them great. Companies should consistently offer training in management and leadership for up- and-coming employees for them to be ready to take on added responsibility. Actions:- Technical Trainings, Managerial Trainings, Job rotation, Stretch Assignments, etc 38 Developing Inspirational Leadership Competencies : HR Agenda
  39. 39. Accountability for developing leadership skills falls upon the organization as well as the individual Actions:- Engage with the identified potential leaders and make them accountable for their own development 4. Leadership Development: A Joint Effort 39 Developing Inspirational Leadership Competencies : HR Agenda
  40. 40. 5. Coaching & Mentoring It can be a very formal program where a more seasoned and experienced employee is assigned to a high-potential individual, or it can be an informal relationship that develops between two employees who happen to work in one area of the office. Actions:- Identify people who can be good coaches/mentors and the potential employees who need to be coached/mentored 40 Developing Inspirational Leadership Competencies : HR Agenda
  41. 41. * HR should sit down with senior management to examine people within the organization and talk about their potential and best fit role Actions:- Have career conversations and deploy high potentials for critical assignments 6. Basic Career Pathing and Planning for an Organization 41 Developing Inspirational Leadership Competencies : HR Agenda
  42. 42. Thank You 42