Solutions and Common Challenges in aligning leader development with business strategy

1. ALIGNING LEADERSHIP DEVELOPMENT
WITH CORPORATE STRATEGY
COMMON CHALLENGES
Sean P. Kennedy
Senior Strategic Relationship Manager
Harvard Business Publishing

2. EVEN THE BEST STRATEGIES ARE POORLY EXECUTED
According to research by HBS Professor John Kotter,
70% of major corporate initiatives fail.
 Initiatives are scrapped before launch
 Change fails to take root
 Timelines and targets are missed by large margins
Strategy never makes it out of the executive suite.
 Plans are formulated in isolation
 Goals and incentives are not aligned
 Initiatives are perceived as flavor-of-the-month
Corporate strategy fails when it is not translated into frontline action.

3. LEADERSHIP TURNOVER STALLS PROGRESS
According to transitions expert Michael Watkins,
roughly 25% of managers in Fortune 500
organizations move into new roles each year.
 Many fall into common traps that sap their ability
to be effective
 Even successful transitions take months before
leaders have a positive net impact on the
organization
Few organizations put effective processes in place to accelerate the contribution of
leaders in new roles.

4. LEADERSHIP PIPELINE IS INADEQUATE TO FUEL GROWTH
In a recent HBP study, 30% of organizations report that
they are already struggling to fill leadership positions.
An additional 46% anticipate significant shortages
within 3-5 years.
 Over-reliance on outside hires
 Too few “ready-now’s”
 Loss of talent in key populations
Growth plans are delayed
 Promising initiatives are not pursued.
 Pace of geographic expansion is slowed.
Organizations spend increasing amounts of energy assessing potential, but the pool of
qualified candidates for succession is shrinking.

5. LEADERSHIP DEVELOPMENT DOESN’T REFLECT THE STRATEGY
According to research from Dave Ulrich and Norm Smallwood,
60 – 70% of leadership consists of following the Leadership Code
The basic skills of leadership
Common across organizations
The other 30 – 40% consists of Leadership Differentiators
Competencies that set you apart from the competition
Leader behaviors that align with customer expectations
Skills that enable your unique value proposition
Most broad-based development initiatives are based on competency models that are
all but interchangeable.

6. TRADITIONAL ILT PREDOMINATES
Majority of Development is Event-Based
 Learning is isolated from work
 No structures to drive behavior change
Availability is Limited
 New leaders get trained after 1-2 years in role
 Non-HQ staff feel ignored
 Units cobble together local solutions
Costs are High
 Travel costs and time away from office
 Central and local spends are not coordinated
Companies still lag in taking advantage of innovative delivery methods to better
serve their diverse populations

7. EXECUTIVES QUESTION THE VALUE OF THE INVESTMENT
Traditional Training Metrics Dominate LEADER EFFECTIVENESS STRATEGY EXECUTION
 “Smile sheets” •Learner Surveys •Awareness of Strategy
•360 Feedback Deltas •Action Learning
 Hours of training delivered Projects
•Employee Surveys
 Completion rates and test scores •Key Initiative
•Action Plan Data
Milestones
•Top and Bottom Line
Leadership Development Budgets are Vulnerable Performance
 Focus is on cost containment
 Arbitrary cuts are demanded
LEADERSHIP PIPELINE CULTURE/BRAND
 New funding requests are frequently denied •Turnover Ratios •External Awareness of
Leader Brand
•Percent Ready-Now’s
•Customer Satisfaction
•Time to Fill Leadership
Scores
Positions
•Employer of Choice
•Bench Strength in
Measures
Pivotal Roles
•P/E Ratio
Firms continue to employ learning measurement strategies that emphasize
activity over impact.

8. WHO WE ARE
MBA PROGRAM
HARVARD BUSINESS SCHOOL
• Individual Focus
• On Campus Experience
• Candidate Pool
EXECUTIVE EDUCATION
• Highly Targeted Audience
• On Campus Experience
• Develop Highest Levels
HARVARD BUSINESS PUBLISHING
• Scalable Audience
• Wherever You Are
• Drive Learning at All Levels

9. LEADERSHIP DEVELOPMENT PHILOSOPHY
Rooted in 100 years of HBS History
 Learning from Others
 Participant Centered Learning (Case Method)
 Learning from experts and peers
 Reflection, discussion, and questioning
 Learning by Doing
 Action learning
 Structured reflection
 Performance support
 Leader-as-Teacher
 Creating models of success
 Building teachable points of view
 Becoming a “teacher” reinforces learning

10. OUR APPROACH
Increase Reach and Scale of Leader Development
 Offer an integrated portfolio of programs
Learning Architecture
 Vary delivery methods to optimize the investment
 Combine delivery methods to maximize
effectiveness Organizational
Strategic Leaders in
Effectiveness
Imperatives Transition
Enable Your Strategy Building the Building Skills Building Pipeline
 Target key business challenges Business
Performance
 Target “pivotal” populations and skills Newly
Management
Promoted
Growth
Executives
 Drive action with strategy-focused programs Team Leadership Leaders
Communication Skills
Innovation
Senior Leaders
High Potential /
Business Acumen
Build Your Leadership Brand Emerging
Change
Mid-Level Managers Decision Making Leaders
 Target key skills and competencies Employee
Frontline Leaders
New Managers
Development
 Transmit culture with leaders-as-teachers
Build Your Leadership Pipeline
 Build effectiveness within levels
 Support newly promoted managers
 Target investments in hi-potential and emerging
leaders

11. ENGAGING EMPLOYEES IN YOUR STRATEGY
Resource Centers
Frame Key Strategic Issues
 Insights from our Experts
 Messages from your Executives
Spark New Thinking
 Discussion Guides
 Conversation Starters
Drive Behavior Change
 Manager Toolkits
 Action Plans

12. CONNECTING LEADERS ACROSS YOUR COMPANY
Blended Cohort-Based Programs
Bring Expert Perspective
 Sessions with HBP and Internal Experts
 Access to Content from Thought Leaders
Foster Peer-to-Peer Learning
 Virtual Cohort Groups
 Moderated Discussions
 Peer Directories
Drive Behavior Change
 Action Learning Teams
 Application Exercises

13. REACHING MANAGERS WHERE AND WHEN THEY NEED
Tailored Online Learning
Scale with the Highest Quality
 Performance support resources
 Online courses and tutorials
 Simulations
Target Your Needs
 Key behaviors
 Levels of competency
Guide Learning
 Paths by level
 Paths by development need
 Paths by task
Drive Behavior Change
 Application Tools
 Action Plans

14. IMPLEMENTATION AND LEARNING SERVICES
YOUR GOALS NEEDS ASSESSMENT DELIVERABLES
Executive Interviews
Transform Leader Leadership Development
Development Architecture
STRATEGIC PARTNER Process Reviews
Drive Strategic Initiatives Curriculum Designs
Stakeholder Focus Groups
Program Designs
Launch New Initiatives Stakeholder Interviews
IMPLEMENTATION Customizations
Test Innovative Approaches Learner Surveys
PARTNER Project Plans
Drive Transfer/Impact Learner Focus Groups
Facilitation Assistance
Competency Frameworks Content Maps
Source Content
CONTENT PARTNER Assessment Data Templates
Augment Existing Programs
Learning Objectives Technical Assistance