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BEST PRACTICE

LEADERSHIP DEVELOPMENT PROGRAMS (LDPS)
Precursors to LDP
    • Cultural awareness and diagnostic tools for OD/HRD
    • Competency frameworks
    • Mature human resource function
    • Strong leadership commitment (implicit and explicit)
    • An SBU level independence of organizational LDP




1
LDP Development Phases
    • Business Diagnosis
        • Alignment with business vision, objectives, organizational culture and business
        impact areas
        • Objective definition and manifesto (Concept Document)
    • Assessment
        • Building an assessment tools inventory
    • Program Design
        • Defining operational details of the program
    • Implementation
        • Change management
    • On the job support
        • Creating support structures on the job for transference of learning
    • Evaluation



2
Business Needs Diagnosis for LDP
   Business Needs for LDP by                                    Assessment Methods by Usage
          Importance                                                    frequency
100%                                              120%
90%    95%
80%
                                                  100%
70%          75%                                         100%
                                                                94%
60%                                                                   89%
                                                  80%
50%
                   53%   52%
40%                                                                         72%
30%                                               60%
                               31%   Importance
20%
10%                                                                               50%
                                                  40%
 0%                                                                                                       Usage frequency

                                                  20%
                                                                                        22%
                                                                                              17%   17%

                                                   0%




   3
Leadership Frameworks
    • Developmental Strategies                Key Components of the LDPs
                                                     Action(able) learning
    (in order of the frequency of use)          Exposure to senior executives
                                                     Increasing awareness
                                                     Experiential learning
                                                     360-degree feedback
                                         Working from core individual values and vision
                                         Commitment to corporate vision and strategy
                                                   Simulation-based learning
                                                     Group interventions
                                                       Visioning sessions
                                                     Internal case studies
                                                           Modelling
                                                  Whole-scale interventions
                                                       Scenario planning
                                                  Cross-functional rotations
                                                      Assessment centers
                                         Organizational or corporate indicator models
                                                             Other




4
LDP content
    • Content of programs by Frequency   • Content of programs by Emphasis

              Content of LDPs                   Most Emphasised Content
              Teaming, teamwork                        Teaming, teamwork
         Giving and receiving feedback                  Customer service
         Results-based decision making                 Ethics and integrity
              Ethics and integrity               Giving and receiving feedback
               Customer service                 Results-based decision making
                    Coaching                                 Coaching
                   Innovation                           Business acumen
               Business acumen                       Emotional intelligence
             Emotional intelligence                         Innovation
                                                        Systems thinking
                                                Building networks and alliances
                                            Diversity (race, ethnicity, thinking styles,
                                                          or all forms)
                                                        Financial acumen
                                                           Productivity
                                                               Sales
                                                              Other
                                                       Stress management
                                                       Consensus building


5
Critical Success Factor : Leadership
behavior
               Critical Leadership Behavior for Success of LDP
                                                    Importance %


                Ties compensation to initiative             27


                   Articulates case for change                           67


         Participates in education and training                              73


              Facilitates education or training                    47


        Integrates initiative into strategic plan                       60


     Models behavior consistent with strategy                                73


               Allocates funds for the initiative                                 93




6
Critical Success Factor : LDP Design
• Eight-week follow-up on action plans

• Leadership development training, employee behaviour standards, measuring the important
things, accountability at all levels, communications at all levels

• Shared ownership of ideas, trust individual and group expression and Improvisation

• Dedicated internal coaches to participants

• Cross-functional strategic leadership teams

• Use of informal opinion leaders identified through survey and targeted behaviours for change

• Personal growth and behaviour/learning plan and written contract; post program reassessment nine
to twelve months following participation

• Development of a leadership strategy that is aligned with and helps drive the business strategy

• Building of effective networks and thinking without boundaries


  7
Business Impact: Measures of ROI
                             Measures of ROI
    100%
    90%
    80%    87%
    70%
                 73%
    60%                67%
    50%
                                 53%
    40%
    30%
                                       33%
    20%                                        27%
                                                          Frequency of Usage
    10%
                                                     7%
     0%




8
Best Practice: Food for Thought
• Best LDPs are strategically aligned to business needs
• LDPs are based on customized frameworks (many don’t have a competency
framework associated with it)
• Best LDPs are developmental and not evaluative in nature
• Best programs are evaluated and have a capability building objective (metric)
associated with it
• Internal controls over the quality of programs are important
• Best LDPs are constantly critically validated by OD/HRD departments
• ROI measures must be placed even though impact is difficult to measure
• Creating internal capability for LDPs
• Best LDPs are integrated with other OD initiatives like change and culture
management


9
Appendix I : The sample for study
                                                                       USD in Million
           Company                    Industry             Employees
                                                                        (*,in Billion)
           Agilent Inc.       Technologies, Electronics      36,000        $6,010.0
             Corning             Communications              23,300        $3,164.0
         Delnor Hospital            Health care               1,382         $235.1
             Emmis            Communications, Media           3,080         $533.8
     First Consulting Group      Business services            1,775         $282.7
            GE Capital                Finance               315,000+       $131.7 *
         Hewlett-Packard        Computer hardware           1,41,000      $56,588.0
                               Aeorspace Technology,
           Honeywell
                                   manufacturing            100,000+      $22,274
              Intel
                              Manufacturing, electronics     78,700       $26,764.0
        Lockheed Martin         Aerospace, defense          1,25,000      $26,578.0
             Mattel             Consumer products            25,000       $4,885.3
     McDonald’s Corporation      Leisure, restaurant        4,13,000      $15,405.7
              MIT                    Education                9,400       $1,664.7
            Motorola            Telecommunications           97,000       $26,679.0
             Praxair                 Chemicals               25,010       $5,128.0
       St. Luke’s Hospital           Healthcare               5500          $424
           StorageTek          Computer Hardware              7,100       $2,039.6
     Windber Medical Center          Healthcare                427          $54

10
Appendix II : Ldp Practices
           Company                   Leadership Competencies                Developmental Approach
                                    Builds equity in the Agilent brand
                                     - Practices strategic portfolio
                                                                        360 Degree feedback: one annual and
                                              management
                                                                           three quarterly mini feedbacks
                                        - Promotes a global brand
                                 - Creates a boundary less organization

                                       Practices active leadership
                                                                       Coaching & Mentoring Programs: Eight
                                             - Leads people
                                                                        week review for each of the parallel
                                        - Actively manages talent
                                                                       approaches. Mentors are matched with
                                         - Models accountability
     Agilent Inc. (Excellence)                                          psychometric tools & developmental
                                 - Models trust, respect, and teamwork
                                                                                      needs.
                                   - Models uncompromising integrity

                                    Delivers superior market-driven
                                               performance             Five Camps: A five stage classroom &
                                 - Focuses externally on the customer experiential learning approach. Each
                                           - Drives for results            camp is followed by a project.
                                             - Models speed           Movement to the next camp only after
                                             - Models focus                  coach's recommendation.
                                          - Models innovation




11
Ldp Practices contd.
                       Functionally aligned internally developed
                        framework called five stage innovation &
                          Leadership model across the company
                            focussing on entrepreneurial and          Only one offsite for classroom
Corning (Innovation
                                 Innovation competencies.           learning. Completely on the job
 Management and
                                       - Road mapping               learning model with a coach. No
      growth)
                                    - Managing Portfolio                        mentoring.
                                 - Innovation Management
                                - Customer Understanding
                                      - Self Leadership
                      Nine Principles, no competency frameworks
                              besides 4 EQ competencies. No
                      competencies measured. 5 Business impact
                          areas ( Service, Quality, Cost, People,
                             Growth) measured through nine          Two day leadership development
                                   behaviours/principles.            offsite annually. Strong project
                                    Commit to excellence             based leadership development
  Delnor Hospital
                              Build a culture around service       through entrepreneurial practice.
  (Service Quality
                                                                  Coaching and Stakeholder feedback
    Excellence)                      Build accountability
                                                                      akin to 360 feedback used for
                                Create and develop leaders
                                                                    development purposes only. LDP
                              Recognize and reward success
                                                                  integrated with balanced scorecard.
                              Focus on employee satisfaction
                              Measure the important things
                                 Communicate at all levels
                          Align behaviors with goals and values

 12
Ldp Practices contd.
                              Eight Core competencies: Informed
                            decision making, Innovation & agility,
                                                                        Three day LDP integrated with
                          Passion for excellence, personal integrity,
                                                                              balanced scorecard.
Emmis (Developing Talent teamwork and collaboration, customer
to be competitive, Change focus, vision into action, accountability.
       management)        Five additional Leadership competencies:
                          Strategic perspective, motivation, building    Leadership coach and project
                             and leading teams, managing talent,         based developmental plans.
                                efficient resource management
                         Leadership competencies unclustered and          360 degree feedback based
                              divided into key behaviours in five     assessment annually and coaching
                                        proficiency levels.                       bimonthly.
                                        Business acumen                Project based learning with coach
                                     Business development              Mentoring for women candidates
                                           Citizenship                       Development centres
 First Consulting Group                Client relationships
                                                                       Psychometrics for self awareness
   (Talent development)                      Courage
                                                                                and regulation
                                     Emotional competency
                                         FCG operations
                                            Motivation
                                              Sensei                           Harvard programs
                                            Team play
                                              Vision



   13
Ldp Practices contd.
    GE Capital (Change      360 degree based analysis and coaching and organizational analysis based
 management and retention )       feedback. 5 day offsite program akin to a development centre.
   Hewlett-Packard (M&A)                         Quarterly LDPs focussing on EQ
                                                                    EQ based programs usually self
                             No separate leadership competency
                                                                  nominated or supervisor nominated.
  Honeywell (Six Sigma as a  framework. Measures of leadership
                                                                      Psychometrics used for self
          mindset)           as impact to business metrics used
                                                                 awareness and mentoring as a major
                                           instead.
                                                                             leadership tool.
                                                                   Completely project based approach.
                                                                   To reach a level of WOW project an
                              Performance in special projects used
                                                                   employee is required to exhibit the
Intel (project management and as a measure of leadership. Special
                                                                   required behaviours in the project.
       efficient innovation)       focus on team building and
                                                                     20 days comprehensive activity
                                          management.
                                                                    based programs with 12 hours of
                                                                          classroom training.
                                                                 Two separate programs for both the
                            Innovative two pronged program. One leaders types. One concentrating on
                               for formal leaders and second for      transactional and the other
                               informal leaders. Formal leaders      transformational leadership.
Lockheed Martin (change and    assessed by change management          Psychometrics used for EQ
    capability building)        prowess while informal leaders   development. BEI used for assessing
                              assessed by partnership/support/ levels. Fast track LDPs with projects
                                 customer relationship driven            depending on coaches
                                        competencies.            recommendation. Full time coaches
                                                                               employed.
     14
LDP Practices contd.
                                                               Purely coaching based approach
Mattel (Organizational Culture
                                 No leadership competencies.   and on the job development with
         Sustenance)
                                                               twelve week Platypus programs.
                              Three key competency clusters
                                                            Four phased program followed by
                                    divided into fifteen
                                                              a second line manager driven
                                 competencies along with
                                                                  program for leadership
   McDonald’s Corporation       balanced scorecard based
                                                             development. Leadership coach
(Cultural and customer service metric system used to assess
                                                            used through out the program but
          excellence)                     impact.
                                                             no mentoring. High importance
                                      Thinking skills
                                                               placed in peer and internal
                                       People skills
                                                                   customer feedback.
                                 Business understanding




15

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Ldp best practice open

  • 2. Precursors to LDP • Cultural awareness and diagnostic tools for OD/HRD • Competency frameworks • Mature human resource function • Strong leadership commitment (implicit and explicit) • An SBU level independence of organizational LDP 1
  • 3. LDP Development Phases • Business Diagnosis • Alignment with business vision, objectives, organizational culture and business impact areas • Objective definition and manifesto (Concept Document) • Assessment • Building an assessment tools inventory • Program Design • Defining operational details of the program • Implementation • Change management • On the job support • Creating support structures on the job for transference of learning • Evaluation 2
  • 4. Business Needs Diagnosis for LDP Business Needs for LDP by Assessment Methods by Usage Importance frequency 100% 120% 90% 95% 80% 100% 70% 75% 100% 94% 60% 89% 80% 50% 53% 52% 40% 72% 30% 60% 31% Importance 20% 10% 50% 40% 0% Usage frequency 20% 22% 17% 17% 0% 3
  • 5. Leadership Frameworks • Developmental Strategies Key Components of the LDPs Action(able) learning (in order of the frequency of use) Exposure to senior executives Increasing awareness Experiential learning 360-degree feedback Working from core individual values and vision Commitment to corporate vision and strategy Simulation-based learning Group interventions Visioning sessions Internal case studies Modelling Whole-scale interventions Scenario planning Cross-functional rotations Assessment centers Organizational or corporate indicator models Other 4
  • 6. LDP content • Content of programs by Frequency • Content of programs by Emphasis Content of LDPs Most Emphasised Content Teaming, teamwork Teaming, teamwork Giving and receiving feedback Customer service Results-based decision making Ethics and integrity Ethics and integrity Giving and receiving feedback Customer service Results-based decision making Coaching Coaching Innovation Business acumen Business acumen Emotional intelligence Emotional intelligence Innovation Systems thinking Building networks and alliances Diversity (race, ethnicity, thinking styles, or all forms) Financial acumen Productivity Sales Other Stress management Consensus building 5
  • 7. Critical Success Factor : Leadership behavior Critical Leadership Behavior for Success of LDP Importance % Ties compensation to initiative 27 Articulates case for change 67 Participates in education and training 73 Facilitates education or training 47 Integrates initiative into strategic plan 60 Models behavior consistent with strategy 73 Allocates funds for the initiative 93 6
  • 8. Critical Success Factor : LDP Design • Eight-week follow-up on action plans • Leadership development training, employee behaviour standards, measuring the important things, accountability at all levels, communications at all levels • Shared ownership of ideas, trust individual and group expression and Improvisation • Dedicated internal coaches to participants • Cross-functional strategic leadership teams • Use of informal opinion leaders identified through survey and targeted behaviours for change • Personal growth and behaviour/learning plan and written contract; post program reassessment nine to twelve months following participation • Development of a leadership strategy that is aligned with and helps drive the business strategy • Building of effective networks and thinking without boundaries 7
  • 9. Business Impact: Measures of ROI Measures of ROI 100% 90% 80% 87% 70% 73% 60% 67% 50% 53% 40% 30% 33% 20% 27% Frequency of Usage 10% 7% 0% 8
  • 10. Best Practice: Food for Thought • Best LDPs are strategically aligned to business needs • LDPs are based on customized frameworks (many don’t have a competency framework associated with it) • Best LDPs are developmental and not evaluative in nature • Best programs are evaluated and have a capability building objective (metric) associated with it • Internal controls over the quality of programs are important • Best LDPs are constantly critically validated by OD/HRD departments • ROI measures must be placed even though impact is difficult to measure • Creating internal capability for LDPs • Best LDPs are integrated with other OD initiatives like change and culture management 9
  • 11. Appendix I : The sample for study USD in Million Company Industry Employees (*,in Billion) Agilent Inc. Technologies, Electronics 36,000 $6,010.0 Corning Communications 23,300 $3,164.0 Delnor Hospital Health care 1,382 $235.1 Emmis Communications, Media 3,080 $533.8 First Consulting Group Business services 1,775 $282.7 GE Capital Finance 315,000+ $131.7 * Hewlett-Packard Computer hardware 1,41,000 $56,588.0 Aeorspace Technology, Honeywell manufacturing 100,000+ $22,274 Intel Manufacturing, electronics 78,700 $26,764.0 Lockheed Martin Aerospace, defense 1,25,000 $26,578.0 Mattel Consumer products 25,000 $4,885.3 McDonald’s Corporation Leisure, restaurant 4,13,000 $15,405.7 MIT Education 9,400 $1,664.7 Motorola Telecommunications 97,000 $26,679.0 Praxair Chemicals 25,010 $5,128.0 St. Luke’s Hospital Healthcare 5500 $424 StorageTek Computer Hardware 7,100 $2,039.6 Windber Medical Center Healthcare 427 $54 10
  • 12. Appendix II : Ldp Practices Company Leadership Competencies Developmental Approach Builds equity in the Agilent brand - Practices strategic portfolio 360 Degree feedback: one annual and management three quarterly mini feedbacks - Promotes a global brand - Creates a boundary less organization Practices active leadership Coaching & Mentoring Programs: Eight - Leads people week review for each of the parallel - Actively manages talent approaches. Mentors are matched with - Models accountability Agilent Inc. (Excellence) psychometric tools & developmental - Models trust, respect, and teamwork needs. - Models uncompromising integrity Delivers superior market-driven performance Five Camps: A five stage classroom & - Focuses externally on the customer experiential learning approach. Each - Drives for results camp is followed by a project. - Models speed Movement to the next camp only after - Models focus coach's recommendation. - Models innovation 11
  • 13. Ldp Practices contd. Functionally aligned internally developed framework called five stage innovation & Leadership model across the company focussing on entrepreneurial and Only one offsite for classroom Corning (Innovation Innovation competencies. learning. Completely on the job Management and - Road mapping learning model with a coach. No growth) - Managing Portfolio mentoring. - Innovation Management - Customer Understanding - Self Leadership Nine Principles, no competency frameworks besides 4 EQ competencies. No competencies measured. 5 Business impact areas ( Service, Quality, Cost, People, Growth) measured through nine Two day leadership development behaviours/principles. offsite annually. Strong project Commit to excellence based leadership development Delnor Hospital Build a culture around service through entrepreneurial practice. (Service Quality Coaching and Stakeholder feedback Excellence) Build accountability akin to 360 feedback used for Create and develop leaders development purposes only. LDP Recognize and reward success integrated with balanced scorecard. Focus on employee satisfaction Measure the important things Communicate at all levels Align behaviors with goals and values 12
  • 14. Ldp Practices contd. Eight Core competencies: Informed decision making, Innovation & agility, Three day LDP integrated with Passion for excellence, personal integrity, balanced scorecard. Emmis (Developing Talent teamwork and collaboration, customer to be competitive, Change focus, vision into action, accountability. management) Five additional Leadership competencies: Strategic perspective, motivation, building Leadership coach and project and leading teams, managing talent, based developmental plans. efficient resource management Leadership competencies unclustered and 360 degree feedback based divided into key behaviours in five assessment annually and coaching proficiency levels. bimonthly. Business acumen Project based learning with coach Business development Mentoring for women candidates Citizenship Development centres First Consulting Group Client relationships Psychometrics for self awareness (Talent development) Courage and regulation Emotional competency FCG operations Motivation Sensei Harvard programs Team play Vision 13
  • 15. Ldp Practices contd. GE Capital (Change 360 degree based analysis and coaching and organizational analysis based management and retention ) feedback. 5 day offsite program akin to a development centre. Hewlett-Packard (M&A) Quarterly LDPs focussing on EQ EQ based programs usually self No separate leadership competency nominated or supervisor nominated. Honeywell (Six Sigma as a framework. Measures of leadership Psychometrics used for self mindset) as impact to business metrics used awareness and mentoring as a major instead. leadership tool. Completely project based approach. To reach a level of WOW project an Performance in special projects used employee is required to exhibit the Intel (project management and as a measure of leadership. Special required behaviours in the project. efficient innovation) focus on team building and 20 days comprehensive activity management. based programs with 12 hours of classroom training. Two separate programs for both the Innovative two pronged program. One leaders types. One concentrating on for formal leaders and second for transactional and the other informal leaders. Formal leaders transformational leadership. Lockheed Martin (change and assessed by change management Psychometrics used for EQ capability building) prowess while informal leaders development. BEI used for assessing assessed by partnership/support/ levels. Fast track LDPs with projects customer relationship driven depending on coaches competencies. recommendation. Full time coaches employed. 14
  • 16. LDP Practices contd. Purely coaching based approach Mattel (Organizational Culture No leadership competencies. and on the job development with Sustenance) twelve week Platypus programs. Three key competency clusters Four phased program followed by divided into fifteen a second line manager driven competencies along with program for leadership McDonald’s Corporation balanced scorecard based development. Leadership coach (Cultural and customer service metric system used to assess used through out the program but excellence) impact. no mentoring. High importance Thinking skills placed in peer and internal People skills customer feedback. Business understanding 15