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Rebuilding Your Leadership Pipeline:
 Spotting tomorrow's Talent Today

          Steve Waterhouse
        PredictiveResults.com
“The most important responsibility that all of
   us have is to develop the leaders of the
  future. It’s the greatest challenge that we
have, and the most important legacy that we
               can leave behind.”

               William C. Weldon
               Chairman and Chief Executive Officer
               Johnson & Johnson
               October, 2006
The Data
   Some benchmarking data:
       64% of new executives hired from outside the
        company do not make it
        (Ciampa & Watkins).

       40% of new executives fail within the first 18 months
        (Center for Creative Leadership).

       Only 33% - 50% considered “successful” after three
        years in the job
        (Drucker).

       2% of organizations believe “they are doing a great
        job at developing leadership talent”
        (SIOP).




                                                                3
What Happens
            When They Fail?
 Fired.
 Disagreements about
   “organizational direction.”

 “Personal reasons.”
 “Better opportunities.”
 Partially competent, so
   colleagues do “work-
   arounds” and ignore
   deficiencies.



                                 4
Where Did We Fail

 Lack of agreement on selection criteria and priorities.
 Using a narrow or overly simplistic “leader profile.”
 Seeking to duplicate the profile of the predecessor
 Using poor interviewing skills (i.e. not structured and
    behavioral).

 Poor definition, coordination and control of the screening
    process.

 Collecting insufficient data or irrelevant data.
 Overvaluing external candidates and undervaluing internal
    candidates.


                                                               5
Where Do They Fail


                         Sins of “Omission”
1. Failing to deliver results.
2. Failing to re-create a network.
3. Failing to listen to/respond to feedback.
                      Sins of “Commission”
4. Delivering the wrong results.
5. Breaking trust.
6. Living in the past.
7. Being more “I” oriented than “we” oriented.

                                                 6
The Good News: Some companies do
a much better job at this than others.

   What do those companies do?
They do as good a
job assessing the
organizational fit
    as they do
  assessing the
candidates skills.
Five Key Organizational
           Fit Variables

1. The position.
2. The leadership group.
3. The CEO or other immediate manager.
4. The organizational culture.
5. The industry culture.


                                         9
What Internally Matters?


 What is the strategic mandate?

 Will they be able to shape the role?

 Operational responsibilities?

 Decision-making authority?

 Change expectations (internal and
  external)?

 What do the data tell us about successful
  leaders in this organization?
                                              10
The CEO/Immediate Manager


   What are the characteristics of the person that this
    person will be working for?

       Technical knowledge

       Strategic priorities.

       Personality/work style.

       Expectations of the leader.

       Authority and support given to the leader.




                                                           11
The Organizational Culture

   What type of organization will
    this person be working in?

       Stable?

       Successful?

       Changing?

       Legacy?

       Technical?

       Centralized?



                                     12
Leadership Formula




                     13
3 Leadership Styles



   Authoritative

   Persuasive

   Technical




                                 14
Leadership Styles

   Authoritative

       Goal Driven

       Drives change

       Demands action

       Holds others accountable

       Takes credit




                                   15
Leadership Styles

   Persuasive

       People oriented

       Builds consensus

       Inspires change

       Motivates others

       Gives credit




                                 16
Leadership Styles

   Technical

       Task oriented

       Highly innovative

       Sets high standards

       Micro manages

       Demands results




                                17
What Style Do You Need?

Persuasive            Authoritative       Technical
   People oriented      Goal Driven        Task oriented
   Builds               Drives change      Highly
    consensus                                 innovative
                         Demands
   Inspires              action             Sets high
    change                                    standards
                         Holds others
   Motivates             accountable        Micro manages
    others
                         Takes credit       Demands
   Gives credit                              results



                                                      18
How To Find Them

Resume/Interview   Behavioral
                   Assessment




                                19
Always Be Looking


 Constantly update your models

 Scan behavior styles of current candidates

 Develop potential leaders early

 Be willing to change candidates if your
  needs change

 Partner with senior management in the
  process


                                               20
They Are Out There




                     21
Rebuilding Your Leadership Pipeline:
 Spotting tomorrow's Talent Today

          Steve Waterhouse
        PredictiveResults.com

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Leadership pipeline

  • 1. Rebuilding Your Leadership Pipeline: Spotting tomorrow's Talent Today Steve Waterhouse PredictiveResults.com
  • 2. “The most important responsibility that all of us have is to develop the leaders of the future. It’s the greatest challenge that we have, and the most important legacy that we can leave behind.” William C. Weldon Chairman and Chief Executive Officer Johnson & Johnson October, 2006
  • 3. The Data  Some benchmarking data:  64% of new executives hired from outside the company do not make it (Ciampa & Watkins).  40% of new executives fail within the first 18 months (Center for Creative Leadership).  Only 33% - 50% considered “successful” after three years in the job (Drucker).  2% of organizations believe “they are doing a great job at developing leadership talent” (SIOP). 3
  • 4. What Happens When They Fail?  Fired.  Disagreements about “organizational direction.”  “Personal reasons.”  “Better opportunities.”  Partially competent, so colleagues do “work- arounds” and ignore deficiencies. 4
  • 5. Where Did We Fail  Lack of agreement on selection criteria and priorities.  Using a narrow or overly simplistic “leader profile.”  Seeking to duplicate the profile of the predecessor  Using poor interviewing skills (i.e. not structured and behavioral).  Poor definition, coordination and control of the screening process.  Collecting insufficient data or irrelevant data.  Overvaluing external candidates and undervaluing internal candidates. 5
  • 6. Where Do They Fail Sins of “Omission” 1. Failing to deliver results. 2. Failing to re-create a network. 3. Failing to listen to/respond to feedback. Sins of “Commission” 4. Delivering the wrong results. 5. Breaking trust. 6. Living in the past. 7. Being more “I” oriented than “we” oriented. 6
  • 7. The Good News: Some companies do a much better job at this than others. What do those companies do?
  • 8. They do as good a job assessing the organizational fit as they do assessing the candidates skills.
  • 9. Five Key Organizational Fit Variables 1. The position. 2. The leadership group. 3. The CEO or other immediate manager. 4. The organizational culture. 5. The industry culture. 9
  • 10. What Internally Matters?  What is the strategic mandate?  Will they be able to shape the role?  Operational responsibilities?  Decision-making authority?  Change expectations (internal and external)?  What do the data tell us about successful leaders in this organization? 10
  • 11. The CEO/Immediate Manager  What are the characteristics of the person that this person will be working for?  Technical knowledge  Strategic priorities.  Personality/work style.  Expectations of the leader.  Authority and support given to the leader. 11
  • 12. The Organizational Culture  What type of organization will this person be working in?  Stable?  Successful?  Changing?  Legacy?  Technical?  Centralized? 12
  • 14. 3 Leadership Styles  Authoritative  Persuasive  Technical 14
  • 15. Leadership Styles  Authoritative  Goal Driven  Drives change  Demands action  Holds others accountable  Takes credit 15
  • 16. Leadership Styles  Persuasive  People oriented  Builds consensus  Inspires change  Motivates others  Gives credit 16
  • 17. Leadership Styles  Technical  Task oriented  Highly innovative  Sets high standards  Micro manages  Demands results 17
  • 18. What Style Do You Need? Persuasive Authoritative Technical  People oriented  Goal Driven  Task oriented  Builds  Drives change  Highly consensus innovative  Demands  Inspires action  Sets high change standards  Holds others  Motivates accountable  Micro manages others  Takes credit  Demands  Gives credit results 18
  • 19. How To Find Them Resume/Interview Behavioral Assessment 19
  • 20. Always Be Looking  Constantly update your models  Scan behavior styles of current candidates  Develop potential leaders early  Be willing to change candidates if your needs change  Partner with senior management in the process 20
  • 21. They Are Out There 21
  • 22. Rebuilding Your Leadership Pipeline: Spotting tomorrow's Talent Today Steve Waterhouse PredictiveResults.com