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GO Magazine 2015 Vol. 13, No. 2


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Read stories on Cardinal Health’s innovative development program for its leaders and how Elevations Credit Union unified its talent processes and won the Malcolm Baldrige National Quality Award. You’ll also learn from DDI’s Tacy Byham and Rich Wellins, authors of Your First Leadership Job, how to build your leadership brand, and rethink the yearly performance appraisal cycle with Andrew Gill.

This issue also includes best practices for career pathing, a snapshot of key manufacturing findings from the Global Leadership Forecast 2014 ǀ 2015, and a conversation about innovation with author David Robertson.

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GO Magazine 2015 Vol. 13, No. 2

  1. 1. — Table of Contents — Great People. Great Organizations. Great Results. Build Your Leadership Brand 9 Reviewing Performance Appraisals 14 David Robertson Redefines Innovation 26 Elevations Credit Union On Top 20 Cardinal Health Looks Forward The health care giant is taking giant steps to strengthen its leaders. Page 4 Cardinal Health’s Lisa George 2015Vol.13,No.2 — Table of Contents —
  2. 2. — Table of Contents — No career transition is more difficult or disorienting than becoming a leader for the first time. Coworkers who may have been longtime friends now report to you. Getting your own work done isn’t enough—now you also have to focus on your team’s work and manage their performance. Problems that once fell to someone else to solve now land on your desk. Recognizing just how hard it all can be, my colleague Rich Wellins and I wrote a book. It’s called Your First Leadership Job: How Catalyst Leaders Bring Out the Best in Others, and we filled it with practical advice, guidance, tools, and coaching to help new leaders navigate the unfamiliar territory of their new role. While the book is perfect for new leaders, it’s also a great resource for aspiring leaders, as well as seasoned leaders who may want to push the reset button. We were careful, though, not to write a “survival manual” akin to how to stay alive if you get lost in the woods. Because, after all, becoming a leader shouldn’t be viewed as an ordeal, but as an opportunity. Once you make the rookie mistakes (many of which the book helps new leaders avoid), get your bearings, and begin learning and practicing the craft of leadership, it’s fully possible to come through the other side appreciating just how rewarding it can be to be a leader. That truth is at the center of Your First Leadership Job. In this issue of GO, we feature an excerpt of Your First Leadership Job that deals with the importance of creating your leadership brand—something about which too few leaders give much thought. Also here you will learn about how Cardinal Health is developing leaders who develop trust and build morale, and how Eleva- tions Credit Union’s focus on its people helped it become the first credit union to win the Malcolm Baldrige National Quality Award. Plus you can get a new take on career paths from Evan Sinar, rethink performance appraisals with Andrew Gill, see new manufacturing findings from the Global Leadership Forecast, and get insights on innovation from Wharton School professor and author David Robertson. Happy reading! Tacy M. Byham, Ph.D., CEO, DDI Volume 13 • Number 2 • 2015 PUBLISHER Richard S. Wellins, Ph.D. MANAGING EDITOR Craig Irons CREATIVE DIRECTOR Susan Ryan CONTRIBUTING WRITER Terri Sota SENIOR GRAPHIC ARTIST Mike Lawley Editorial and Circulation: GO c/o Development Dimensions Intl. 1225 Washington Pike Bridgeville, PA 15017-2838 Telephone: 412-257-0600 ABOUT DDI DDI is one of the top talent manage- ment consultancies. Forty-five years ago, we pioneered the field; today we remain its chief innovator. We help companies transform the way they hire, promote, and develop their leaders and workforce. The outcome? People ready to instigate, understand, and execute business strategy, and address challenges head-on. Our clients are some of the most successful companies on earth. They’re Fortune 500s and multina- tionals, doing business across a vast array of industries. We serve clients from 42 DDI-owned or closely affiliated offices. The principles and skills we teach don’t just make people better em- ployees, they are at the heart of what makes for happier and more fulfilled human beings—better family mem- bers, better neighbors, better friends. © Development Dimensions International, Inc., 2015. All rights reserved. Tacy and co-author Rich Wellins invite you to visit for videos, excerpts, and additional content related to the book. Ready Set...
  3. 3. 3© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Contents GO Volume 13 • Number 2 • 2015 FEATURES 4 Cardinal Health Nurtures Leadership Growth Innovative development programs care for leaders of people, projects, and processes. 9 Building Your Leadership Brand There’s no one perfect way to be a leader, but there are identifiable practices that define a truly effective one. 14 Managing Performance in Real Time The yearly performance appraisal cycle should be only a starting point. 20 “The Best Place You Have Ever Worked” Unified talent processes helped Elevations Credit Union win the prestigious Malcolm Baldrige National Quality Award. 28 When Building Career Paths, Think Milton Bradley—Not Rand McNally A career isn’t a map: Why organizations need to change how they think about career paths. DEPARTMENTS 13 Trend Tracker New manufacturing findings from the Global Leadership Forecast 2014 ǀ 2015 data. 18 What’s GOing On Introducing the Service Ready support portal, Mind- marker training reinforcement bolsters DDI courses, exciting changes to Business Impact LeadershipSM , and Are You In the List? again recognizes India’s rising HR stars. 26 Coffee on the GO with David Robertson The innovation expert and author of a book on LEGO discusses the human side of innovation. 31 Information You Can Use! New DDI research and thought leadership to spark your thinking about talent management. 4 9 14 2820 26
  4. 4. 4© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — “Our message to employees: Stay curious, try new things, and stretch your thinking—we can all make a difference in the future of health care.” - Lisa George, VP, global talent management
  5. 5. 5© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Cardinal Health rigorously monitors the pulse of its workforce. With the aid of its annual Voice of the Employee (VOE) survey, the multinational health care product and service provider routinely charts manager effectiveness, inclusion, and employee engagement. In 2009 the survey data indicated room for improvement on trust and morale measures and a need to continue to strengthen basic leadership skills. Cardinal Health executives point to the company’s history as contributing to the VOE scores. For close to 40 years, Cardinal Health was a holding company for a diverse port- folio of companies. Founded as a food distributor in 1971, the company branched into pharmaceuticals eight years later. Acquisitions followed; Cardinal Health added more than 50 businesses to its growing health care segment. Then in the mid-2000s, almost a decade after divesting its food-related interests, Cardinal Health transitioned from a holding company to an integrated operating organization. “The pace of change in the health care marketplace is un- precedented and requires us to be innovative, adaptable, and nimble. In order to do this, we have to have the best talent focused on our customers and a culture that allows that talent to grow and develop. We want all talent to see Cardinal Health as the place they want to contribute and grow their career,” says Carole Watkins, CHRO. As a first step, the company translated its values into actions. Cardinal Health created eight broad leadership competencies known as the Leadership Essentials, which embody its organizational leadership expectations for those managing people, processes, and projects. “We in- tegrated the Leadership Essentials into all of our HR pro- cesses—from selection to rewards—and rolled them out with a strength-based approach that offered all employees opportunities to build additional capabilities around lead- ership,” says Lisa George, vice president, global talent management. CONNECTING VALUES TO DEVELOPMENT “Through a robust needs assessment process, we uncov- ered that we also lacked development and critical skills at the first level of management. Given that these leaders influence the greatest number of people, we focused our initial development efforts on our frontline supervisors and managers,” says Julie Blust, director, learning man- agement. Cardinal Health desired training content not only to build capabilities and strengthen engagement, but also to align with its values and Leadership Essentials, and connect to its corporate mission—“Essential to care™.” CARDINAL HEALTH NURTURES LEADERSHIP GROWTH Innovative development programs care for leaders of people, projects, and processes 5© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  6. 6. 6© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — The organization’s HR team found the solution it was look- ing for within DDI’s Interaction Management® : Exceptional Leaders Series (IM: ExLSM ). Courses from the series serve as the foundation for Core Management Skills (CMS) 100, a two-day program focused on developing fundamental skills for effective workplace interactions. Topics covered in CMS 100 include building strategic work relationships, communi- cation, coaching, and aligning performance for success. Interest in the program grew rapidly by word of mouth; leaders completing the program at one site would share their experiences with colleagues at another. The executive team was also busy buzzing about the new program. George Bar- rett, Cardinal Health’s chairman and CEO, recorded a video message that introduced CMS 100. On screen, he reinforced the importance of leadership development by sharing per- sonal stories of influential leaders who’d shaped his career. MAKING IT THEIR OWN “We were able to customize the training examples to offer real-world scenarios—things that happen on the floor of a distribution or manufacturing center, in a nuclear pharmacy or call center, out in the field, or at our corporate headquar- ters. The flexibility to add our own examples, based on where we were facilitating the courses, worked so well. Plus, since we began training our own trainers, the courses have a very distinctive Cardinal Health connection,” says Julie Holbein, director, global talent management. Program participants were particularly pleased with the link between the training and Cardinal Health’s perfor- mance review process. Because individual performance is evaluated equally based on goal accomplishment, the company’s values, and the competencies comprising the Leadership Essentials, the course content really resonated with learners and advanced the goals of the organization. “With CMS 100, we aimed to make managers more ac- countable for the performance of their employees through better communication and coaching. Some of our facilities have workers that span three generations,” says Enrique Alvelais, HR director. “One of the main breakthroughs we made with the program was to get our supervisors to un- derstand that they need different leadership behaviors and styles to address the different generations. Our people with 40-plus years of seniority don’t have the same expectations as our millennials.” FABULOUS FEEDBACK As the number of CMS 100 graduates grew, the HR team asked leaders to identify the capability and training needs that remained. “We did balanced data mining of our talent and performance reviews, looked at gaps in succession, and conducted a 360 assessment, talking with managers, their direct reports, as well as their management teams to see how they were viewing one another,” says Blust. “This was critical to ensure the capabilities we were building Chairman and CEO George Barrett has been a champion of the Core Management Skills program. 6© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  7. 7. 7© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — aligned to our culture, were linked to our business needs to drive our strategy, and took into account the people side— employees, customers, and, ultimately, patients. DDI was of great help in our deep-dive analysis into the data.” In response to all the collected feedback, the HR team part- nered with the business and created a second, follow-up course series: CMS 200. The focus this time was on en- gaging and motivating employees, and creating an envi- ronment of trust. Whereas CMS 100 develops foundational leadership skills for improving manager-employee inter- actions, CMS 200 course content offers skills for manag- ing teams. Once again, selections from DDI’s IM: ExLSM leadership series anchor the two-day program. To optimize learning and allow for on-the-job application, HR asked participants to allow 90 days between the two programs. “We got fabulous feedback on the practicality of the tools in our CMS programs,” says Holbein. “The fact that our leaders received tools that they could take right out of the classroom and use immediately was something we were missing before.” “After every class I facilitate, I give everyone about five minutes to reflect on everything we talked about and then identify two to three takeaways that they’re going to implement back on the job,” says Jill Macinko, senior consultant, learning delivery. “I think that has been im- pactful, and I encourage them to share those things with class members and their managers so they have some supportive accountability.” DRAMATIC INCREASES IN MANAGER EFFECTIVENESS In 2013 DDI surveyed CMS 100 and 200 participants and observers (peers, direct reports, etc.) to measure behavior change—before and after training. Across the behavior- al objectives of the six CMS/IM: ExLSM courses (Essen- tials of Leadership, Coaching for Success, Coaching for Improvement, Adaptive Leadership, Building an Envi- ronment of Trust, and Motivating Others), the percent of leaders who said they “often” or “almost always” display effective leadership behaviors rose by 49 percent. Observ- ers, meanwhile, witnessed a 30-percent improvement in leader effectiveness on the same objectives. Leaders also gave high marks to their post-development job performance. On a scale of 0 to 100 (with 100 being the highest rating), trainees rated their overall performance at 91 points (an increase of approximately 10 percent). Looking at team-level results that were specifically attributed to the CMS programs, leader effectiveness and communica- tion between leaders and team members improved 62 and 63 percent, respectively. Employee efficiency, productivity, engagement, morale, and inclusion in decision-making im- proved between 53 and 61 percent. “If you look at our business results since we first implement- ed these programs, we wouldn’t have been able to accom- plish all that we have as an organization without improving the capabilities of our leaders,” says Barbara Hess, director, global talent management. “Our Voice of the Employee sur- veys show dramatic increases in manager effectiveness and employee engagement since the outset of these programs.” When first launched, participation in CMS 100 and 200 was voluntary; today, it is a welcomed requirement. The pro- grams are now being delivered outside the U.S., at sites in Canada, Malta, Thailand, China, and Latin America. LEADERS OF PROCESS AND PRODUCT Delighted by the CMS feedback from frontline leaders, Cardinal Health turned its attention to individual contribu- tors—process and project managers without direct reports. The result was Maximizing Interactions (MI) 100 and 200. Courses were chosen from DDI’s Interaction Management® : Exceptional Performers Series (IM: ExPSM ) and include: Communicating with Impact, High-Impact Feedback and “Ultimately the companies that win in the marketplace are the companies that have the talent to win in the market- place. We are deeply committed to talent development inside Cardinal Health. We believe this is the secret to competitive advantage.” George Barrett Chairman and CEO, Cardinal Health 7© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  8. 8. 8© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —© Development Dimensions International, Inc., 2015. All rights reserved. 8 Listening, Navigating Beyond Conflict, and Influencing Others. The two-day programs aimed not only to cas- cade the learning and language acquired by participants’ managers (in CMS 100 and 200), but also to standardize workplace interactions for higher levels of engagement, self-satisfaction, and performance. “One of the things I took away from the training was the importance of getting to know my associates better on a more human, person- al level,” says Robert Moore, lead associate, warehouse operations. “I listened to their pain points, learned to dis- agree respectfully…keeping it neutral and not making it about me. It’s about the team, the company, and that we’re all connected.” “I am always looking to cut waste, be more lean,” says Jessenia Gaitan, also a lead associate in warehouse oper- ations. “Shortly after training I came up with a waste-cut- ting idea, but instead of taking action and instructing my teammates to follow along, as had been my style, I went to them and asked for their input. We agreed to roll it out, as a pilot, to allow us all to evaluate how it was going to impact the team and our customers. It was gratifying to see the team take ownership of the project, make it theirs, collaborate on tweaking the process, and make it even better.” To see videos about Cardinal Health’s development initiative, and learn more about Interaction Management® , Manager Ready® , and Leader3 Ready® visit JOURNEYS TO THE FUTURE As its commitment to development continues to evolve, Cardinal Health is planning a series of learning journeys to deliver finely targeted development across more levels of leadership. “From our CMS participants, we would hear, ‘Why isn’t my leader going through this?’” says Pamela Henry, senior consultant, learning delivery. “The learning journeys will put all leaders and their direct reports on the same page, speaking the same language.” Four development stages comprise the two-year journeys. The customized content is tailored to meet the needs of new and long-time employees, internal and external hires, and both people managers and highly valued individual contributors (many of whom lead without direct authority). To identify these needs, Cardinal Health is capitalizing on assessment. All people-leader journeys will begin with either Manager Ready® or Leader3 Ready® , DDI’s online assessments for frontline and mid-level managers, respectively. With these diagnostic tools, development needs can be identified before leaders embark on their prescriptive, skill-building learning journeys. Krista Juras, a sales supervisor who participated in a Manager Ready® pilot program says: “The feedback report was so beneficial. It identified specific skills that I need to work on—and am working on every day!” “In the near future, everyone at every level will have expanded and targeted development opportunities,” says Blust. “There will be required, foundational training and experiences, as well as ‘elective’ offerings that individuals can self-select based on assessment results, development planning, feedback discussions, career aspirations, etc. It’s the most exciting part—the ability to create your own personalized learning path which becomes more flexible as you progress in your career.” — Table of Contents —
  9. 9. — Table of Contents —9© Development Dimensions International, Inc., 2015. All rights reserved. Most people will experience moments when they regret something they said, did, or failed to do. It’s part of being human. But for a freshly minted leader, those human moments can accumulate quickly and do real damage if you’re not careful. This can happen for many reasons, including underestimating just how profound the transition is from individual contributor to leader. You’re probably approaching the first encounters with your new team with a sense of anxious anticipation and armed with a mental checklist of the unique value you have always brought to your work. As your new team looks to you for the first time, they are understandably worried about how that value will make things harder for them. The people who now report to you will form an early judgment about your leadership capabilities that will de- fine your reputation in ways that may not serve you well, particularly when you’re also mastering the full scope of your new job. Consider the simple truth that consumers face: If their experience with a product is not good, they won’t use it again. And they’ll most likely complain about it to other people. The dark cloud spawned by poor word of mouth can dampen a product’s prospects in the mar- ketplace for a long time. So, whether you’re 30 seconds into your leadership job or have been in place a while and could use a reputational do-over, you’ll need to develop and consistently operate within a broader framework of how you think about your new role. Here we introduce you to three attributes that will help you create a positive leadership brand—one that cultivates trust and truly re- flects your authentic self. What’s in a Leadership Brand? While there’s no one perfect way to be a leader, there are clearly identifiable practices that set apart truly effective leaders from average or poor ones. Research has shown that successful leaders demonstrate three key attributes— we call them leadership differentiators—that help them gain confidence and skill in leading a group. Embrace them and you will be successful out of the gate. They are: • Be Authentic. • Bring Out the Best in People. • Be Receptive to Feedback. Clearly, these attributes are commendable for everyone, whatever their life’s work. Good leaders eventually real- ize their true value—some earlier and some later—during their career. Research clearly shows that these differenti- ators can predict future success, as well. That’s important information for you on two other fronts. While as a leader BUILDING YOUR LEADERSHIP BRANDThere’s no one perfect way to be a leader, but there are identifiable practices that define a truly effective one. By Tacy M. Byham, Ph.D., and Richard S. Wellins, Ph.D. — Table of Contents —
  10. 10. — Table of Contents — you’ll be coaching others, you also might be in a position to help select future peers and team members. Look for these attributes in others. Furthermore, even if you are not a leader yet, these skills will help you make your mark as an individual contributor and distinguish yourself as a strong candidate for advancement. And people will want to work with you more. Which is a good thing! Be Authentic Being authentic means that your actions mirror what you believe and feel, and that there is no contradiction between what you do and what you say. You demonstrate authenticity when you: • Do what’s right, even in difficult situations. • Treat people with respect. • Promote trust among others. • Keep promises and commitments. • Admit mistakes. • Give credit when it’s due. • Disclose by sharing your thoughts, feelings, and rationale, when appropriate. • Display confidence but avoid arrogance. Conversely, leaders who are inauthentic can have a debili- tating effect on the teams they lead. These leaders tend to: • Hoard information. • Pit team members against each other or play favorites. • Disregard team members who don’t agree with them. • Ignore tensions and workplace conflict. • Blame others for their missteps. • Take credit. • Radically change their behavior to sound more leaderly. • Pretend to know everything. With these behaviors in mind, it should come as no sur- prise to learn that in our many focus groups with senior executives, the importance of authenticity in leaders re- ceived some of the most resounding affirmations—across cultures, industries, and professional sectors. Executives worry about how their leaders are perceived, and so should you. Why? Authenticity is fueled by integrity, which in turn fosters trust—the fundamental catalyst in the most-admired workplaces. Most-admired workplaces have happier, more engaged, productive, and creative employees. When people trust you, it’s not just good for your reputation—it’s good for business, too. Bring Out the Best in People We’ve found that the best leaders have the innate ability to make everyone around them better. Management tomes and business magazines correctly tout our current era as an age of collaboration—an optimistic time where solutions are crowd-sourced, opportunities are designed, and far-flung teams work together creatively at all hours of the day from every corner of the globe. While it is true that new technologies enable new ways of working together, it’s also true that the type of leader who thrives in this environment—one who resists traditional command and control structure—has always existed. And it is precise- ly this type of person who will thrive as a leader today. Don’t worry if you’re not a natural at this; you can learn. One key is to ask smart questions and listen to the answers. It takes win-win thinking to help others be the best they can be. Great leaders possess this outlook. They know that their own success relies on the success of the people they lead and that one of their chief responsibilities is to foster their team members’ skills, abilities, interests, and efforts. It’s never too early to establish this positive philosophy and put it into action. We’ve found that the best leaders have the innate ability to make everyone around them better. 10© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  11. 11. — Table of Contents — To bring out the best in people: • Encourage your team to try new things. • Cultivate and optimize others’ talents and capabilities. • Take the time to find out what motivates your team and assign work in line with people’s skills and interests. • Compliment people on their efforts. • Give people input on things that affect them. • Trust in the strengths of others. • Allow them to safely learn through failure, so they can take appropriate risks. • Unite others toward common goals. Be Receptive to Feedback For this last differentiator, we’ll explore how team members and other workplace associates can reciprocate and bring out the best in you by giving you feedback. Leadership research bears out what USA Olympic gymnas- tics coach Mary Lee Tracy recognizes as a distinguishing characteristic of elite athletes: “Athletes are no different than other people in that they will make mistakes. What is so important and what I look for in future elite athletes is how they respond to failure. It’s so important they don’t continue to fail, but fail forward.” One of the variables that over time has shown to predict leadership success is an individual’s “receptivity to feed- back.” Those who generally seek and use feedback from others and view mistakes as learning opportunities tend to be more successful in leadership roles. The fail-forward concept should be adopted for all leaders. But it only works if you’re willing to seek and accept the feedback of people who are in a position to evaluate your work. First, Ask . . . We know from experience that what we’re asking you to do is harder than it sounds. Most leaders find seeking feedback to be pretty difficult. Nobody wants to show weakness, par- ticularly in business. Part of it is personality based: Recep- tivity to feedback is learned early in life and can be difficult to develop as an adult if you don’t make an effort. But seek- ing growth is not showing weakness. Leaders who are never wrong typically suffer the ripple effects of low morale and high turnover (which is bad for business). And they keep making the same mistakes again and again, which can cause real problems for an organization. But anyone can master the practice of seeking and using feedback. The first steps, of course, are up to you. To show your receptivity to feedback: • Ask for and use feedback about your leadership from multiple sources. • Accept and act on developmental feedback. • Acknowledge your shortcomings. • Display humility. • Hold yourself to high expectations. Then, Widen the Circle With feedback it’s not a “less is more” but a “more is more” opportunity. The more perspectives you gather, the more likely you are to get the true message people are sending. Consider asking: • Your manager for perspective on how you’re leading the team, how you’re communicating back up to him, and how well you work with peers. • Your peers to provide perspectives on your interdepart- mental collaborations and insights from customers. • Your direct reports, who can let you know if you’re communicating your expectations clearly and appropri- ately seeking their input in your decision making. • Your customers to share their perspectives on your and your team’s performance. Leaders who are open to feedback begin by thanking the giver for sharing and then asking questions to gather the specifics. These are the leaders who will succeed. © Development Dimensions International, Inc., 2015. All rights reserved. 11 — Table of Contents —
  12. 12. — Table of Contents — • Senior leaders are less likely to ask for feedback. Super- visors will seek feedback for improvement 64 percent of the time, while senior leaders seek it only 43 percent of the time. Consistent failure to seek feedback on your brand can have a negative impact on your career. In a study of 462 leaders in a Fortune 500 company, 77 leaders, average age of 50, were asked to leave their organizations, after an average tenure of 18 years. An analysis of 360-degree feedback data collected two years prior to their dismissal found a significant difference on a measurement of the extent to which leaders made a constructive effort to change based on feedback from others. My Legacy, My Brand Think about the legacy you want to build and how the dif- ferentiators might help you build that brand reputation. And, while business results are important, the only way to achieve them is through people. This article is adapted from the recently published book Your First Leadership Job: How Catalyst Leaders Bring Out the Best in Others (John Wiley Sons, Inc., 2015). It is available through bookstores and major online booksellers. Tacy M. Byham, Ph.D., is CEO, and Richard S. Wellins, Ph.D., senior vice president at DDI. Finally, Receive with Gratitude Saying that you’re open to receiving feedback is one thing. Actually welcoming it is another matter, especially if the feedback challenges you in unexpected ways. It can feel like very bad news. But you can train yourself to see feedback as the gift it truly is. Leaders who are open to feedback begin by thanking the giver for sharing and then asking questions to gather the specifics. And these are the leaders who will succeed. Don’t like feedback surprises? Try asking team members for feedback as a regular part of team or individual meet- ings. This signals that you’re trying to build an environment of trust and continuous improvement. And acting on feed- back is even better; it demonstrates that you have room for improvement, which makes you more approachable and human. Researchers Jack Zenger and Joseph Folkman analyzed the feedback-seeking behavior of 51,896 leaders over three years. They discovered that: • Leaders who seek more are viewed as stronger. Leaders who actively sought feedback and looked for opportu- nities to improve were viewed as 86 percent effective. They topped the list. Leaders who fell lowest on the sur- vey in terms of openness to feedback were rated as only 15 percent effective. • Feedback-seeking behaviors decline with age. Most people seek more early in their career, but the tendency diminishes over time. 12© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  13. 13. — Table of Contents — TRENDTRACKER Manufacturing Leaders Aren’t Ready to Deliver The rich trove of data gathered for the Global Leadership Forecast 2014 ǀ 2015 included responses from 3,143 leaders and 322 human resources executives in manufacturing organizations across 48 countries. DDI has analyzed this data and compiled the results into a new study report, Ready-Now Leaders: Meeting Tomorrow’s Manufacturing Talent Challenges. The report highlights the top talent-related barriers to revenue growth and also identifies 10 proven talent practices to reduce costs and increase revenue. To download the report, visit Telling Number: 9Times more likely companies with high leadership quality and engagement are to outperform their peers financially. Source: Global Leadership Forecast 2014 ǀ 2015 We examined how various industries have changed in the past few years and what leadership readiness trends have emerged since 2011 (the date of the previous Global Leadership Forecast). Manufacturing is at the bottom of the list in terms of leader readiness to take on current and future challenges. To better understand the gap between talent analytics practices and recognized value to the manufacturing plant or business unit, we focused on several forms of leadership analytics, ranging from basic to ad- vanced. We found that 47 percent of organizations don’t do any form of leadership analytics well. Only one in 20 does all forms well. Manufacturing Isn’t Leveraging Talent Analytics Manufacturing Leaders Get Last Place © Development Dimensions International, Inc., 2015. All rights reserved. 13 Percent of manufacturers that do each of the five types of analytics well. Percent of leaders rating overall leader quality as high. — Table of Contents —
  14. 14. 14© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Managing Performance inReal TimeThe yearly performance appraisal cycle should be only a starting point. By Andrew Gill 14© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  15. 15. — Table of Contents — the year, a mid-year progress update, and an end-of-year review. The problem with this discussion frequency, apart from the often-questionable accuracy and completeness of the data discussed, is that any learning moment has been lost or delayed beyond its point of usefulness. As a result, any “coaching” gets lost and the leader falls back on a discussion of the results rather than how they were achieved or not achieved—and what could have been done differently to ensure success. 2. Data bias. When there are only two or three per- formance discussions a year, it becomes difficult to prepare. This is because, with the exception of the beginning-of-the-year planning discussion, they are backward-looking and demand both leaders and em- ployees to keep excellent records throughout the year or to reconstruct performance from up to 12 months ago. This requires significant effort on everyone’s part and invariably leads to performance appraisal discus- sions being based on limited or incomplete data. Even if the data is complete, performance data that is up to a year old is, well, old. Much changes from week to week and month to month, and a discussion devoted in part to recounting what happened up to a year ago can border on irrele- vant. Just as bad is when recent performance overshad- ows the evaluation of a year’s worth of performance, such as when a successful—or unsuccessful—project at year end is given too much weight when evaluating an individual’s performance for a 12-month period. 3. Polluting the performance discussion with com- pensation. Then there is the all-too-common practice of lumping together the performance appraisal and compensation discussions. This lethal combination can inhibit open and holistic discussion about performance, as the employee is likely to see the size of his pay in- crease as the only metric that matters when it comes to judging how well (or not well) he did during the year. Also, any opportunity for a meaningful development discussion is overshadowed by the discussion around compensation—the real purpose of the meeting, in the employee’s view. A sound performance management system is an invaluable asset to an organization. It cascades strategic priorities down through the ranks, spells out the whats and hows that define effective performance, promotes account- ability, and enables leaders and employees to track and monitor how they are performing. But, unfortunately, even when a performance management system is correctly focused, properly streamlined, and functioning as intended, most leaders and employees are not as engaged in the process as they could be. They don’t recognize its full value and, often, don’t like going through it. Instead, they grudgingly participate by dutifully spending hours compiling and filling out their performance manage- ment documentation and sitting through a biannual per- formance discussion with their leader. In this discussion they find themselves justifying their ratings, defending their “mistakes,” and explaining away their missed targets and goals. In the end, they get their overall performance rating, their leader signs off, and they learn what their pay increase (if any) will be. For their part, leaders often lack the timely and relevant data needed to evaluate a full year’s worth of performance accurately. The leader hopes to get through the discus- sion without the employee voicing concerns or objections when the leader disagrees with a rating or highlights the employee’s need for improvement or development. It’s all such fun! And nobody ends up looking forward to doing it again next year. HOW DID WE GET HERE? It’s a shame that an important process, one that offers an opportunity to improve employee motivation and capabil- ity is all too often seen as a challenging, time-consuming, “check the box” biannual obligation. Yet, that’s the current view of the performance appraisal process in most orga- nizations. So, how has it come to this? There are multiple reasons: 1. Infrequent discussions. Most performance appraisal discussions occur two to three times per year—a typical cycle includes a planning discussion at the beginning of 15© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  16. 16. 16© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — other words, annual and biannual performance discussions need to be the culmination of, not a substitute for, fre- quent, timely feedback and performance coaching. Does this mean leaders should have their direct reports’ performance plans handy at all times, so they can have a performance discussion at the drop of a hat? Do leaders need to have more frequent formal performance reviews with employees? Do employees need to keep better per- formance records? The answers are “No,” “No,” and “Not at all.” But there are some quick tips and best practices that will make performance feedback and coaching more useful—and the formal performance appraisal discussions less painful: Be timely. The most valuable feedback and coaching are provided in real time—immediately after, or even before, an event or task. For example, feedback and coaching on a poorly handled meeting is best provided immediately after the fact, when the experience is fresh in the minds of both the employee and the leader. This also allows the employee to begin taking steps to improve as soon as pos- sible. Better yet is to have a coaching discussion with the employee before he leads the meeting to ensure a higher likelihood of success. Twice a Year vs. Every Day CONVERSATIONS! DEVEL OPMENT PERFOR MANCE DEVELO PMENT PERFOR M ANCE Your goals will help us... Need help? Let’s discuss what happened... What did you learn? What’s next? Mid-year What do you want to learn? How are you doing? End-of-year Employee:“I should have done WHAT three months ago?!!!” Leader:“Didn't we revise your goals six months ago?” 4. The process overshadows the discussion. Because an annual performance appraisal requires so much preparation, it is easier for leaders and employees to fall into the trap of focusing on the process and forms rather than on the discussion. This is especially likely when a leader has numerous direct reports. Given the challenges with the data, it is often easier to see the performance appraisal process as an exercise in satisfy- ing organizational expectations than as an opportunity to have a meaningful performance discussion—a fact reinforced by the frequent email reminders sent by HR to leaders and employees to complete these discussions by the designated deadline date. MAKING PERFORMANCE APPRAISAL BETTER Despite all the issues described above, the annual perfor- mance appraisal cycle isn’t going away anytime soon— it’s too deeply entrenched in most organizations. To make the most of their organization’s performance appraisal process, however, leaders need to break free from the strictures of talking to their people about their job perfor- mance just two or three times a year and incorporate per- formance discussions into their day-to-day interactions. In
  17. 17. 17© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Organizations with Effective Performance Management: The Bottom Line on Conversations goals six months ago?” 14xmore likely to have high-leadership strength (DDI, GLF 2014 | 2015) 1.8xmore likely to be in top third of financial performers (DDI, GLF 2014 | 2015) increase in customer retention, revenue, and engagement 1 to 20% (or more) (Brandon Hall Group, 2015) Be specific and feed it forward. Vague feedback and coaching open the door to misunderstanding and future disagreement. There were some things in the meeting you could have done better may be a good way to open a feedback and coaching discussion, but the conversation then needs to zero in on what specifically could have been improved upon—and to discuss specific actions the employee can take to improve. Explain benefits or implications. Because the dis- cussion needs to motivate the individual to take action, the leader needs to “sell” the importance of the feed- back—i.e., the potential implications if the feedback isn’t acted upon and the potential benefits if it is. Group feed- back sessions where an entire team reflects on a recent task or project can be an effective approach to promote ownership and buy-in. In these settings the leader can build on what is shared by the group, rather than being the first to speak and leading the discussion. Be interactive. Balancing telling and asking offers multiple benefits. For one, it allows the leader to uncover information about the situation she may not be aware of: I had only been given the data to share with the group right before the meeting. It also provides an opportunity for the employee receiving the feedback and coaching to self-reflect and identify where he could improve. How do you feel you could have handled that meeting more effectively? makes it more probable that the employee will accept the need to develop in that area. PERFORMANCE DISCUSSIONS SHOULD NEVER END! To be more effective when discussing employee perfor- mance, leaders need to stop relying solely on the annual performance discussion and mid-year check-in. Instead, they need to initiate multiple and ongoing conversations with their people about their performance—and provide timely feedback and coaching that continues to move the employee forward in growth and development. These ongoing conversations are immediately relevant and useful and, as such, they can feel supportive and personal. Plus, a benefit of these conversations is that, when the dreaded annual performance appraisal meeting comes around, there are no surprises and the conversation can focus on the future rather than rehashing the past. To learn more about DDI’s solutions for driving effective performance management, visit Andrew Gill is vice president, consulting services, for DDI.
  18. 18. 18© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Introducing the Service Ready Support Portal for End-Users DDI’s new technology support portal, Service Ready, provides our end-users with the ability to resolve technical product support issues— online or on a mobile device. The portal enables candidates, participants, and administrators to solve learning or assessment technology challenges quickly and efficiently, and also provide input on DDI product development. With Service Ready, end-users can: + Submit and track support tickets for technical issues 24/7. + Search for self-help information (in English only) on our systems and products, 24/7 from anywhere in the world. + Stay up-to-date on important technology information, such as new releases and technical specifications. + Provide feedback to DDI service teams and make suggestions for new products or improvements to existing ones. + See alerts if there are DDI product or system outages. To access the Service Ready portal, visit WHAT’S GOING ON Are You In the List? Recognizes India’s Rising HR Stars For the fourth year in a row, DDI is part- nering with People Matters, India’s lead- ing knowledge and media platform in the HR space, to recognize India’s emerging future HR leaders. The initiative Are You In the List? is the largest to identify dynamic HR leaders between the ages of 26 and 35 from organizations within India. Since its inception in 2012, Are You In the List? has drawn more than 4,500 applicants, including more than 2,000 in 2014. Applicants go through a rigorous eight- month journey that includes a cognitive ability test, leadership assessment via DDI’s Manager Ready® , video inter- views, and a business analysis case study. Each applicant is evaluated against a comprehensive Success Profile, based in part on DDI’s exhaustive research base. From the process, “HR’s 25 Most Want- ed” are identified, honored at an awards ceremony, and profiled on the People Matters web site. For more information on Are You In the List? including how to apply, visit New Lineup of DDI Events Taking Shape! DDI is planning an exciting new lineup of webinars on the leadership and assessment topics that matter most to you and your organization! See the current schedule of webinars and sign up for those that meet your needs at And check back often— more topics and dates are added regularly!events DDI
  19. 19. 19© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Business Impact Leadership® More Exciting + Engaging! DDI has updated the Business Impact Leadership® (BIL) development series to create a more engaging, transformative experience for your mid-level leaders! While each course objective remains the same, with the updates there are numerous improvements, including: + A New Course—Leading with a Global Perspective—for developing culturally-competent leaders with the best of DDI’s proven method- ology and TMC/Berlitz’s leading-edge cultural self-insight tools. This new course replaces Operating with a Global Perspective. + Updated Research and statistics within all of the course materials, to ensure each course’s continued relevance in today’s business environment. + Fine-Tuned Content drawn from feedback from our top facilitators, including improved timing for activities, clearer instructions, and better transitions between units. + A New Contemporary Design has been applied to all participant and facilitator materials, providing the executive impact essential for mid-level leaders. Learn more about Business Impact LeadershipSM , visit DDI Courses Now Feature Mindmarker Training Reinforcement DDI courses now are even more powerful and “sticky” thanks to a new partnership with Mindmarker, the leader in training reinforcement. Mindmarker has developed and deployed training reinforcement for DDI’s leadership development courses. Many DDI courses now include custom-built Mindmarker Training Reinforcement, which is delivered to participants through the Mindmarker app (iOS, Android, Windows, web application). Making Mindmarker Training Reinforcement available post-training serves to increase knowledge retention and drive application toward mastery. “This innovative, easy-to-use application automatically pushes key pieces of our content to learners, and the back- end dashboard puts valuable information at the fingertips of our HR partners,” says Barry Stern, DDI senior vice president, development solutions. “It’s like a mini-learning journey in a box for individuals—clearly, the right tool at the right time.” The Mindmarker Training Reinforcement app joins DDI’s robust toolbox for reinforcing and sustaining learning. To see an overview of all of the available resources, visit DDI’s UK office is moving to the heart of London. If you find yourself in the neighborhood, we would love to give you a tour of our new office. Stop by and say hello! THE CONNECTION 198 HIGH HOLBORN, LONDON WC1V 7BD OUR NEW NEIGHBORHOOD
  20. 20. — Table of Contents —20© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  21. 21. — Table of Contents — Annette Matthies, chief human resources officer of Elevations Credit Union, has been talking for several minutes when she politely punctuates her lengthy response to a question with a statement of self-awareness. “I’ll take a moment and breathe. I’m really passionate about this part of our business, in case you couldn’t tell.” The part of the business that has sparked Matthies’ pas- sion is the range of improved talent initiatives the Boul- der, Colorado-based credit union has put in place in re- cent years, including succession management, leadership development, talent acquisition, and new-hire orientation (see “How to … Help New Employees Start Strong” on page 24). This spate of initiatives helped the 388-employ- ee organization become the first-ever credit union to win the prestigious Malcolm Baldrige National Quality Award in 2014, the U.S.’s highest level of recognition for perfor- mance excellence. It’s not the Baldrige Award, however, that sets Elevations apart when it comes to talent, although the systemization, application of best practices, replicable processes, bench- marking, and metrics that led to the honor are what make Elevations an organization from which others can learn. What is most admirable is embodied by Elevations’ em- ployee value proposition: “The best place you have ever worked.” INTERDEPENDENT RELATIONSHIP Elevations Credit Union began in 1953 with a single branch located on the campus of the University of Colorado in Boulder. Today, the credit union has more than 110,000 members, assets in excess of $1.5 billion, and 11 branches serving seven counties in and around metropolitan Denver. While the organization experienced steady growth during its first half century, it wasn’t until Gerry Agnes came on board as president and CEO in 2008 that Elevations began taking its talent focus to a new level. The impetus was Ag- nes’ goal of winning the Baldrige award. The Baldrige program, established by the U.S. Congress in 1987, recognizes manufacturers, service organizations, and small businesses for their achievements in quality and business performance. The program also aims to raise awareness about the importance of quality and perfor- mance excellence in gaining a competitive edge. For Elevations, pursuit of the Baldrige award provided an organizational focal point, but, even more important, the effort to attain the accolade served to bring structure and discipline to its objectives around better serving the cred- it union’s 110,000-plus members. These member-centric objectives are part of Elevations’ five-year strategic plan, which the organization has tied directly to the architecture of its talent systems. “THE BEST PLACE YOU HAVE EVER WORKED” Unified talent processes helped Elevations Credit Union win the prestigious Malcolm Baldrige National Quality Award. 21© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  22. 22. — Table of Contents — “It starts first with employee engagement. If our employees are engaged and giving everything they’ve got every sin- gle day, and they are happy in their jobs and fulfilled, that translates into more and stronger member loyalty,” explains Matthies. “We then have members that want to continue to do business with us, because it’s an enjoyable experience. They feel like we are trusted advisors. And the more mem- ber loyalty we have, that translates directly into financial sustainability, and we have an organization that can then take care of our employees. So, it’s really an interdependent relationship.” To optimize this interdependent relationship, Elevations sought to bolster its existing talent processes. The first step was adopting a competency framework around which to in- tegrate all of these processes and establish consistency and a common leadership language across all levels. The com- petencies also served to operationalize and reinforce the or- ganizations strategic and cultural priorities. “When we looked at DDI’s competencies, there were sev- eral things we liked about the model, especially how the competencies have very clear definitions,” says Matthies. Matthies and her team worked with the Elevations’ execu- tive team to begin proactive succession planning, using the competencies as a basis. This process entailed consulting the five-year strategic plan, and determining what the org chart would need to look like and where there were talent gaps to be addressed. “In the Baldrige application, they asked us questions about succession planning and developing our future leaders, and doing it in a very systematic way so that it’s repeat- able and that every time that we repeat it, we could then look at what we did and improve upon it and measure it,” says Matthies. Toward addressing its talent gaps, Elevations launched a four-level pipeline leadership training initiative. The four programs in the initiative, which incorporate courses from DDI’s Interaction Management® and Business Impact Leadership® leadership development systems, include a pre-leadership track called Base Camp Leadership to prepare high-potential individual contributors for future opportunities in management and leadership. Participants in this program can choose to take elective courses that align with their career goals. A program for new managers, Foothills Leadership, pro- vides the skills and knowledge to be a successful leader at Elevations. All participants in this program are required to complete a curriculum covering topics such as communica- tion, coaching, and developing others. Part of the program also includes being trained in DDI’s behavioral interview- ing system, Targeted Selection® . The program for incumbent managers, Tree Line Leader- ship, enhances the core skills leaders already possess. The program requires each participant to attend a course called Building a Career Development Plan and is tailored to meet the individual needs of each leader based on his or her ca- reer goals and leadership style. Upon completing 100 hours of coursework, leaders in the program complete a 360 as- sessment to measure the progress they’ve made throughout their leadership journey. Seasoned senior leaders take part in a program called Sum- mit Leadership, in which they continue to refresh and add new ideas and approaches to their leadership tool kits. As with Tree Line Leadership, this program is tailored to ad- dress each manager’s career goals and leadership style, and requires participants to collaborate with senior leaders or executive coaches to review and refresh their development plans. Once they’ve taken that step, they complete an ad- ditional 100 hours of coursework, drawing on a variety of courses and learning methodologies, and then complete a 360 assessment to measure their progress. “Once we started on the Baldrige journey, we had a stronger leadership focus and the reason for that is the framework Baldrige provides,” says Matthies, referring to the Criteria for Performance Excellence that Elevations closely adhered to in preparing to apply for the award. “We know that em- ployees will more likely leave their managers than their company, so the relationship with those leaders is really im- portant. You need to have strong leaders.” TAKING HIRING HIGHER The adoption of the competency framework also offered Elevations an opportunity to create a better hiring process by implementing DDI’s competency-based Targeted Selec- tion® behavioral interviewing system. Targeted Selection® enabled Elevations to standardize its interviewing process across all jobs and locations. The system also provided 22© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  23. 23. — Table of Contents — interviewers with job-relevant questions that more accurate- ly assess for motivational fit and an interviewing experience that makes a positive impression on candidates. Impressing candidates throughout the selection process is important to Elevations, because even those who aren’t hired are still coveted as credit union members. “When we started looking at Targeted Selection, we saw that it would be a really nice complement,” says Matthies. “It would enable us to ensure that the talent we’re bringing into the organization is not only a good culture fit, but also a match with the competencies required for the job. And then, because we are using the same competencies for hiring that we are for development, it also ties nicely into the develop- ment that we’re doing on the succession planning side, and also for career development for all employees.” What’s more, Elevations found that the more standardized interviewing process allowed it to more efficiently gath- er the information needed to make high-quality hiring decisions. “Before, because of multiple branch locations, a candidate would need to interview with different managers and it was a time-consuming process,” says Kim Felton, senior vice president, retail banking. “When we went to Targeted Selection, with its standardized questions and data inte- gration sessions where interviewers discuss the data they gathered from the candidates, we found that we gathered a lot more information and it really did work. We were excited about that.” Since implementing Targeted Selection, Elevations has seen marked improvement in employee turnover. Its an- nual turnover rate in 2010 was 26 percent. By 2014 it had dropped to 19 percent—a figure five percentage points below the 24-percent benchmark the organization aims to match or exceed. “We have built an incredible team, having people in place that like our culture and environment and that can succeed here,” says Felton. “I think we have found the people that really want to be here and have excelled.” HOW TO WIN A BALDRIGE Agnes believed it would take Elevations several years and multiple attempts to win the Baldrige. Instead, Elevations won the award in 2014, upon its first time applying at the national level—an outcome that was a pleasant surprise to all. “We thought it would take 10, 15, 20 years to achieve,” says Matthies, who believes the honor came Elevations’ way because the entire organization was focused on the goal and involved in the effort to make it happen. The expectation that winning the award would be a long- term goal stemmed from all that is entailed in becoming Baldrige worthy. “It’s basically performance management as an organiza- tion,” says Pete Reicks, senior vice president of enterprise performance, pointing out that Elevations, in accordance with the Baldrige Criteria for Performance Excellence, sys- temized areas such as strategic planning and operations, in addition to its talent systems. “The Baldrige standards dictate that performance has to be trended over time and, where possible, matched to external benchmarks so we know how we’re doing relative to both in-market and in-in- dustry benchmarks, as well as out-of-industry, world-class benchmarks. The standards are very rigorous. You can’t just tell a story. You have to have numbers that align with your story, and those numbers need to be not just how you’ve performed over time, but how you’ve performed compared with best-in-class role models.” “Part of the Baldrige framework, I believe, is to really make sure those processes are repeatable and measurable and that you can improve on them over time,” says Matthies, allud- ing to Elevations’ “huge effort” since 2009 to document processes and put them in place. “ALL IN” EVERY DAY By adopting the Baldrige Criteria for Performance Excel- lence, Elevations made significant progress in several areas. It expanded its membership by 35 percent, grew assets 53 percent and deposits 51 percent, and increased consumer loan production 189 percent. Elevations also became the top credit union provider of mortgages in Colorado. “We know that employees will more likely leave their managers than their company. You need to have strong leaders.” 23© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  24. 24. — Table of Contents —24 On the talent side, Elevations has also seen a 17-per- cent rise in employee engagement, a result that helped the credit union rank as finalist in the Soci- ety for Human Resource Management’s 2015 Best Companies to Work for in Colorado competition. While the higher engagement levels can be tied to its stronger leaders, Elevations’ organizational cul- ture, which is rooted in its core values, and its em- phasis on career planning have also contributed to these higher levels. “If you were to walk around Elevations, you would hear story after story of people who have started in entry-level roles and have grown in the organiza- tion,” says Ellie Fordyce, assistant vice president, human resources. “I am one of them. I started as a teller, and now I help lead the department. But there are dozens of people who have found a ca- reer here because of all the tools that we’ve given our employees.” The opportunities for upward mobility, the avail- able tools, and the commitment to process-driven continuous improvement have combined to make Elevations not only an award-winning workplace, but a special one. “Our goal is for this to be the best place that every- one has ever worked,” says Matthies. “Looking at our employee engagement surveys, for the vast ma- jority of our employees, it is. But we’re still trying to get better every single day and really just truly making this an enjoyable place where you feel like you have opportunities to learn and grow every year and to have your strengths utilized.” “I, for one, can honestly say this is the best place I’ve ever worked. I’m pretty proud of that, and I’m going to fight pretty hard to make sure it stays that way,” says Reicks. “So, I am ‘all in’ every day.” To learn more about DDI’s competency library, Interaction Management® , Business Impact Leadership® , and Targeted Selection® visit HOW TO. . . HELP NEW EMPLOYEES START STRONG Making what chief human resources officer Annette Matthies describes as “a major investment” in its workforce, Elevations puts all of its new hires through a comprehensive four-week new-employee orientation program at its Wilderness Peaks Support Center facility, where most of the credit union’s back office operations are located. This program has proved to be so valuable that Elevations extended it to existing employees in order to give them the same experience and information. Here’s just some of what’s included in the month-long experience. • Meeting senior leaders. Elevations runs the new- employee orientation program every month, and on the first day of each session, members of Elevations’ executive team attend to introduce themselves and even assist in delivering the training. Matthies points out that while it’s not unheard of for senior leaders to meet and greet new employees at orientation sessions, the fact that Elevations’ executives do it every month is “a huge commitment.” • Learning through simulation. The facility where the orientation program is conducted features a simulated teller window where new hires can practice customer interactions and learn Elevations’ approach to selling services to meet member needs. This opportunity is im- portant because not all new hires come from a financial services background. “We are looking for people that have specific competencies and not necessarily bank experience,” says Ellie Fordyce, assistant vice presi- dent, human resources. • Volunteering in the community. The new employees are introduced to Elevations’ dedication to the com- munity by taking part in a half day of volunteer work. “We take the entire training class on what we call our volunteer time off, and have that scheduled as part of the new-employee orientation, just so they can expe- rience it because it’s so much of who we are as an organization,” says Kim Felton, senior vice president, retail banking. The experience is about more than team-building; time off to volunteer is a benefit offered to all Elevations employees. © Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  25. 25. — Table of Contents —25© Development Dimensions International, Inc., 2015. All rights reserved. Talent Ready for Business It’s a gap that can be catastrophic to your organization. Your mid-level leaders play a critical role in achieving your strategic goals. Yet there is no assessment that provides a clear picture of their readiness to execute and lead. How long do you think you can hang on if you fail to close that gap? That’s why we’ve developed Leader3 Ready® , a virtual assessment designed for mid-level leaders. What if you could gain: 1. Deeper insights to make crucial hiring and promotion decisions? 2. A development catalyst to ensure leaders are successful in their current roles while accelerating their development? 3. Greater reach into your mid-level leader population resulting in more leaders ready faster? With the right assessment, you’ll have actionable data to inform the real-time talent and business decisions you need to make today. Learn how you can close the gap and jumpstart your mid-level leaders now with Leader3 Ready® . Leader3 Ready® . It’s about time. Visit The difference between hoping and knowing your next generation of leaders is ready.
  26. 26. 26© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — COFFEE ON THE GO WITH DAVID ROBERTSON The innovation expert and author of a book on LEGO discusses the human side of innovation. LEGO construction bricks are ubiquitous toys played with by children—and also many adults—the world over. LEGO was also, of course, the inspiration for the wildly success- ful 2014 film The LEGO Movie. But in the early 2000s, LEGO’s story was far different; the Denmark-based com- pany was in trouble, with its sales in free fall. How LEGO employed innovation to turn itself around is the subject of the book Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry by David Robertson, a highly regarded expert on innovation and product development. A professor at the Wharton School of the University of Pennsylvania, Robertson researches innovation management and consults to U.S. and European companies on reaping the returns from their innovation investments. Robertson spoke with GO about the challenge of defining innovation, LEGO’s lessons for other companies, and the role HR must play in driving innovation. GO: How would you define innovation? ROBERTSON: I think the definition of innovation is chang- ing. It used to be about developing the next product, the next car, the next widget, the next whatever. And I think we’ve evolved that pretty significantly, and we’re now re- alizing innovation can be lots of different things. It’s not just products but also services and channels to market, business models, ways of pricing things, internal process- es, etc. When Ford invented the assembly line, that was innovation. When Dell changed the way you configure and assemble and deliver personal computers, that was also innovation. The problem is that we’re caught up in this trade-off, this dichotomy, this balance between incremen- tal and radical innovation. GO: By radical innovation, do you mean what’s often referred to as disruptive innovation? ROBERTSON: Yes, disruptive, little versus big. I think this is a dangerous way to think about it because what many companies are doing—LEGO is one of the best at this— is actually getting all the benefits of big innovation from well-integrated little innovations. In other words, by doing lots of little things and putting them together really well, they get all the competitive advantage of a big innovation without the risk. I feel LEGO’s story has lessons for every company. That’s the reason I wrote Brick by Brick.
  27. 27. 27© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — GO: Is innovation something that morphs over time, or is it more of an absolute that gets interpreted and executed differently as we move forward? ROBERTSON: I think it’s something that every company has to define for itself. You have to think both where and where not you are going to innovate. I had a wonderful con- versation with the head of marketing for a Triple A baseball team, a very innovative company that cannot innovate at all around the core product. I mean, baseball is baseball. But they’re doing amazing things about the experience around baseball. They’re doing all kinds of things: giveaway nights, rebranded uniforms and logos, new mascot, even video games in the restrooms. Their challenge is unique, right? When a minor league baseball team becomes successful, the corporate parent is going to reach in, take their good players, yank them out, and make the product bad again. They have the worst corporate parent, one who demands profitability yet works to sabotage the product. Like many companies, this organization is making lots of small, fair- ly safe innovations, but creating a compelling proposition that’s hard to match. GO: Why do you think so many companies struggle with innovation? ROBERTSON: I think companies struggle because they’re always structured and organized around the last big in- novation. Organizational structure and process are lag- ging indicators of innovation success. They show us that we did a big innovation successfully many years before and now the way we hire people, the way we train them, the processes we use, the rewards systems we set up— everything we do is around that last big innovation, which makes the next one difficult because we’ve become very good at the old way of doing things. And then when com- panies find an opportunity to do something really new and different, they have trouble fitting it into that structure and those processes. GO: What’s the human side of innovation? How should organizations align talent with doing some- thing new? ROBERTSON: The human side of it is that everybody should be thinking about innovation in the company. Too often I’ve seen companies where innovation is for the en- gineers and RD, but if you think about innovation more broadly than that, if you think about innovation as some- thing more than just products, then you have to involve many more people from inside the company and start part- nering with other companies outside the company. As an example, there are lots of different people at Apple who are always thinking about not only the next little de- vice, but also with whom they should partner to bring in more interesting content and how they can innovatively market it. When Apple came out with the iPod, it was a nice little device but a fairly incremental improvement over what already existed. iTunes, on the other hand, where you can buy one song at a time and not have to buy the whole CD, and the way they then expanded it to be not just music but movies, books, and apps—there’s the true innovation. Apple partnered with a lot of people—record companies, book publishers, movie studios, app devel- opment companies—to create an entire Apple ecosystem that makes owning the iPod, then the iPhone and iPad, much more valuable. GO: What’s your sense of ways in which HR is innovat- ing, and how can it become more innovative? ROBERTSON: I think HR is really critical as we change innovation from something that just engineers do to some- thing that lots of people do. HR must create all kinds of new roles, new processes, and rewards systems. HR’s job is, in part, to help with this kind of organizational design, to be that thought partner with the management team, to think about people structure—who’s going to be in the key roles, how to think about succession planning, careers, annual reviews, and so forth. If you don’t get that right, you kill everything in terms of innovation. You doom yourself to the same stuff that you’ve been doing in the past, and your competition is going to surpass you. If HR isn’t on board and really helping to restructure, rethink, and redo the way the organization works—then all this falls apart. David Robertson’s book, Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry is available through bookstores and major online booksellers. — Table of Contents —
  28. 28. 28© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Milton Bradley, as many of us fondly remember, makes timeless and beloved board games like Life, Candy Land, Chutes and Ladders, and of course, Monopoly. Rand McNally makes maps and (since the GPS revolution) direc- tional guidance systems. Substantially less beloved, though very useful. These products don’t have much to do with careers, but they do have a lot to do with paths, and in our Global Lead- ership Forecast 2014|2015, which drew on data from more than 13,000 leaders from 48 countries, we isolated under- standing one’s career path as the single strongest influence on three key leader outcomes. As shown to the left, a clear path—along with having opportunities to give open feed- back to senior leaders about the organization’s strategy and culture—was one of only two leadership experiences to be a top driver of all three outcomes. These outcomes include Employee Development Focus (active pursuit of opportu- nities to develop one’s employees), Engagement (leaders’ own involvement in the job), and Retention (leaders’ intent to remain at the organization long-term). When Building Career Paths, Think Milton Bradley —Not Rand McNally By Evan Sinar, Ph.D. Leadership experiences that drive positive organizational outcomes. 28© Development Dimensions International, Inc., 2015. All rights reserved. A career isn’t a map: Why organizations need to change how they think about career pa ths. — Table of Contents —
  29. 29. 29© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — they put programs in place to hone in on this topic so that managers know how to keep leaders moving and to spot and take advantage when new paths unexpectedly open up. 3. Having deeply rooted coaching and mentoring networks in place. These include one’s own man- ager of course, but also other internal and external mentors who have “played the game” and who can objectively advise on options for what’s next—es- pecially what to do when rolls of the dice don’t go a leader’s way or a move leads to a disappointing dead-end. 4. Developing managers to lead across generations. Millennial leaders value having an awareness of a range of possible paths that may lie ahead—NOT a single route from point A to point B as on a map. Managers need the know-how to tap into this mo- tivator, as well as those that are important to other generational groups, and to flex their coaching styles accordingly. 5. Deploying a broad range of developmental assignments. Special projects and rotational assignments provide concrete yet temporary opportu- nities for career exploration, and, when designed well, these “detours” are almost always win-win. They allow promising leaders to move on—perhaps even using a newly discovered shortcut. For those that aren’t, they can easily take a couple of steps back and try something else. These five talent practices differentiate organizations leading the way with high-caliber career pathing for their leaders, from those falling behind and absorbing the dangerous consequences impacting leader engagement, retention, and passion for development. Each practice also has a clear “Now What” implication for other compa- nies facing similar challenges, as outlined above. This is an important part of the story, but we also wanted to dive even deeper—and explore what the many, very vocal, leaders who are struggling with career clarity need from their organizations. THE LEADER’S VIEW OF CAREER PATHING We looked further behind the numbers to hear from the most frustrated set of the 13,000+ leaders included in STRONGEST INFLUENCES ON EMPLOYEE DEVELOPMENT FOCUS, RETENTION, AND ENGAGEMENT As we looked more closely at this data, we wanted to know: If career pathing is so essential, under what conditions does it flourish? The deeper we dug, the more the data kept directing us to concepts alive and well in games like the ones mentioned above—but nearly gone from road atlases or mobile navigation apps. Certainly, a career isn’t a “game,” but it’s even less so a fixed map, where distance and time to reach a pre-determined destination can be projected down to the meter and minute. Because of this, we can learn much more from the way Milton Bradley designs timeless board games than we can from how Rand McNally plots (and constantly updates) highways, cities, and landmarks. THE FIVE KEYS TO CAREER PATHING SUCCESS In our data analysis, we saw related themes pop up over and over again in each of two ways we took the Global Leadership Forecast research further. First, for leaders who DO clearly understand their career trajectory, how do organizations “set up the board” to get them there? Our research found five keys to career path- ing success for these organizations—in each case, those taking these steps have leaders with significantly higher levels of career path clarity: 1. Clearly defining the competencies leaders need to be successful. This one is simple: Without know- ing what the best player of a game does differently from the rest (and how much is due purely to luck), it’s impossible for leaders to come up with a strate- gy for getting and applying these skills. Importantly, competencies—as opposed to knowledge or techni- cal skills—extend beyond individual jobs, to avoid a myopic focus on a single “best fit” career track. 2. Training managers to identify and develop future talent. Creating and reinforcing career plans for ambitious leaders is a distinct and extremely chal- lenging skill for managers, especially when ambiguity is the reality. Companies that do this well don’t make leaders figure out the rules on their own; instead, 29© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents —
  30. 30. 30© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — the research—to ascertain what they needed to regain confidence in their organization’s career-pathing efforts. Leaders disappointed with their career guidance were very vocal about what must change—generating plenty of useful, constructive feedback for organizations. What do these disgruntled leaders want their organizations to hear about career pathing do’s and don’ts? Four words captured the spirit of their suggestions: Expectations—Give the basics about what’s realistic for me to consider and prepare for; should I only be thinking of moves straight up a ladder, or do many people move sideways? Are moves regularly spaced or are there times when I’m likely to plateau for a while before moving again? Do I have skill gaps that I absolutely must close before I can pursue a particular path? Aspirations—Ask me, don’t assume, where I want to be several steps from now. My manager should know and help me work towards these goals, of course, but should also support me in finding other mentors within the com- pany too; I’ll tell them things I wouldn’t tell my manager. Transparency—I won’t commit long-term unless I know where we’re headed and how I fit in. Tell me what you can or risk me assuming that there’s a mismatch between my personal goals and the company’s overall strategy…and quitting before you can prove me wrong. Exposure—Connect me to senior leaders for their advice and perspective on how I can grow within the company to help it succeed—this may mean moving ahead on my current path or moving to another track where my skills will add value, and I may make faster long-term progress. On the surface, many of these sentiments lead back to a “roadmap” model where leaders expect organizations to be definitive about what’s next and when. But that view- point isn’t giving leaders nearly enough credit. Lead- ers—particularly those getting open information about the organization’s status and their own strengths and weak- nesses—fully recognize that risk, uncertainty, and even randomness play key roles in what paths open up, and how long they stay open. Which brings us back to the board game analogy: Lead- ers moving down a path won’t always know exactly where that path leads, or how long it will take to get there. For HR or their managers to promise them otherwise would be unrealistic and demotivating. But what HR and manag- ers can offer is attentiveness, connectivity to the business, and most importantly, openness: about formal and infor- mal rules, about chance versus skill, about next steps in a career sometimes being sideways or even backward, and about balancing a single, long-term goal with awareness that there are many ways to get from here to there. Ultimately, the dice go in the leader’s hand—but before they roll, it’s the job of HR and managers to set up a board that leaders will find explanatory, reinforcing, and engaging—no matter what numbers come up. Evan Sinar, Ph.D., is DDI’s chief scientist and director of the Center for Analytics and Behavioral Research (CABER). 30© Development Dimensions International, Inc., 2015. All rights reserved. FOLLOW @DDIworld THOUGHT LEADERSHIP DELIVERED DAILY — Table of Contents —
  31. 31. 31© Development Dimensions International, Inc., 2015. All rights reserved. — Table of Contents — Global Leadership Forecast 2014|2015 Multinational Sub-Report As part of the Global Leadership Forecast 2014|2015 study, this sub-report highlights findings on the current state of leadership and leadership practices in multinational companies (MNCs). The findings are based on responses from 2,972 lead- ers and 383 human resource execu- tives in multinational organizations. Performance Management: Coaching for Development Needed The business imperative for perfor- mance management is undeniable, yet organizations everywhere seem disenchanted with the effectiveness of their approach and processes. In Brandon Hall Group’s latest Perfor- mance Management Study, co-spon- sored by DDI, 71 percent of organi- zations say their current approach to managing performance needs improvement, even reinvention. Optimized Competency Management Look inside this guidebook to learn how to ensure alignment and consistency by: + Setting a clear line of sight from strategy to capabilities and contributions of individuals. + Accelerating the adoption of competencies, and embracing the value of competencies as a business success enabler.   3 Must Do’s For Developing Leaders This recorded webinar will explore how organizations are incorporating the three must-do’s when developing leaders: using competency models to align programs that drive strategy and culture, prioritizing implemen- tation details that deliver the most impact, and putting into place lead and lag measures to sustain and prove results. DDI Plant Leadership Series The DDI Plant Leadership five-part series presents findings from the MPI Manufacturing Study. This study, conducted by the Manufacturing Performance Institute (part of the MPI Group), was based on responses from 319 manufacturing plants, encom- passing a range of industries and sizes. Intact Insurance Read how Intact Insurance launched development programs for leaders at multiple levels, resulting in a four- percent improvement in employee engagement. Information You CanUse! Visit
  32. 32. — Table of Contents — New Book![ AVAILABLE NOW ] 1225 Washington Pike Bridgeville, PA 15017-2838 Excerpt Page 9