1. Effective leadership can have a significant impact on key organizational outcomes such as turnover, customer satisfaction, and financial performance. Great leaders, in particular, can produce twice the impact of good leaders. 2. Traditional leadership development focuses on fixing weaknesses, but research shows building strengths is more impactful. Having multiple strengths can raise a leader's effectiveness to the 81st percentile. 3. Certain combinations of strengths, like driving results and strong interpersonal skills, are especially powerful. Non-linear development approaches that leverage strengths may provide a new path to leadership growth.

1. The Extraordinary Leader Turning Good Managers into Great Leaders Presented by Jack Zenger and Joe Folkman

2. The Extraordinary Leader Research The last two years were spent researching the impact of leadership performance and the key behaviors that make great leadership possible The source of our insight – hundreds of thousands of 360 assessments done over the past 10 years Our approach – lead with the data The result – New insights that fundamentally change our philosophy and approach

3. Insight 1 Great Leaders Make a Great Difference.

4. Impact of Leadership Effectiveness on *Turnover More effective leaders have lower turnover. Relationship between *Turnover and Leadership Effectiveness Average Percent Turnover Leadership Effectiveness * Results from a large insurance company

5. Impact of Leadership Effectiveness on *Net Income Net Income More effective leaders generate higher income. * Results from a large mortgage bank

6. Impact of Leadership Effectiveness on *Perceptions of Customer Satisfaction Perceptions of Customer Satisfaction PCTL More effective leaders have more satisfied customers. * Results from a large high technology company

7. Impact of Leadership Effectiveness on *Employee Satisfaction/Commitment Results from a large high technology company Leadership Effectiveness Percentile Employee Satisfaction 90th - 100th 80th -89th 70th - 79th 60th - 69th 50th - 59th 40th - 49th 30th - 39th 20th - 29th 10th - 19th 1st - 9th 4.8 4.6 4.4 4.2 4.0 3.8 3.6 3.4 3.2 Poor Leaders Create Dissatisfaction Good Leaders Have an Adequate Impact Great Leaders Make a Great Difference

8. Implications The relationship between performance outcome and leadership performance is not incremental (e.g., sometimes it takes a substantial change in leadership performance to impact the outcome) Good leaders achieve substantially superior performance outcomes than do poor leaders Great leaders achieve significantly better performance outcomes than good leaders

9. Insight 2 Current approaches to development primarily focus on fixing weaknesses

10. Focusing Development on Weaknesses Works Well When . . . Fatal Flaw 1 2 3 4 5 P O N M L K J I H G F E D C B A . . . people have fatal flaws Strong negative data on an issue can cripple a person’s leadership effectiveness

11. Focusing on weakness works well when…. Fatal Flaw . . . people have fatal flaws Strong negative data on an issue can cripple a person’s leadership effectiveness 1 2 3 4 5 P O N M L K J I H G F E D C B A What Causes Leaders to Fail • An inability to learn from mistakes and develop new skills • Interpersonal ineptitude • Being closed to new ideas • A failure to take responsibility for results • Not taking initiative

12. If someone is average at everything, what is the effect of focusing on lower scores? Typical Approach to Development Evaluate current level of effectiveness Identify areas of strength and weakness Create an action plan to improve areas of weakness Average at Everything Will fixing one or two less-positive issues have a dramatic impact on leadership effectiveness?

13. What Does Performance Improvement Mean to Most People? This philosophy for improvement is reinforced by: Educational experience Performance management approaches Culture Fixing Weaknesses

14. Impact of Leadership Effectiveness Without Any Perceived Strengths Number of Strengths

15. Impact of One Strength On Overall Perception of Leadership Effectiveness Number of Strengths

16. Three Strengths Raises Leadership Effectiveness to the 81st Percentile Number of Strengths

17. Insight 3 Powerful Combinations

18. Characteristics of a Great Basketball Player Height Speed Tall & Slow Tall & Fast Short & Fast Powerful Combination

19. Impact of Drive for Results and Interpersonal Skills % of Leaders at 90th Percentile What is the impact of being highly competent at driving for results and with interpersonal skills?

20. Insight 4 Not all behaviors are created equal – some are more noticeable and leverage more improvement than others

21. Conventional Wisdom Versus Actual Results Conventional Wisdom Effective executives are prompt for meetings and appointments. Actual Results The best executives are no more likely to be on time than the worst executives. Rarely late for meetings/appointments Best Worst

22. The Research Compiled a data set of 200,000 evaluations on 20,000 people Contrasted the highest performing 10% to the lowest performing 10% Found the behaviors that best differentiated between the best and the worst The behaviors not only told us what high performers did right, but also what the low performers did wrong

23. Differentiating Behaviors Leading Change Developing strategic perspectives Championing change Connecting outside world – networking Character Displaying high integrity and honesty Interpersonal Skills Communicating powerfully and prolifically Inspiring/motivating others to high performance Building relationships Developing others Collaboration and teamwork Driving For Results Drive for results Establish stretch goals Taking responsibility for outcomes/initiative Personal Competence Technical and professional expertise Solving problems and analyzing issues Innovation Practicing self-development

24. Insight 5 The non-linear approach to development may be the most helpful way to develop strengths

25. Is the best strategy changing a direct, heads-on, linear approach? Current Approach to Change Plans Current Performance People question ability on technical expertise Desired Future Performance People have confidence in technical expertise More Better Faster Smarter

26. The Problem with the Direct Approach is That Often “You Can’t Get There From Here” Navigating behavioral change is not especially different from geographical navigation.

27. How Competency Companions Create a New Path to Development Great Skills on Differentiator Poor Skills on Differentiator Differentiator Great Technical Expertise Poor Technical Expertise Strong Interpersonal Skills Weak Interpersonal Skills Behavioral Buddy High Standards of Excellence Low Standards of Excellence Behavioral Buddy

28. How Do You Build Trust? Competency Companions Considerate of others Open, friendly style Non-competitive internally Listen Use candor

29. Totally New View of Competencies: Not independent of each other (coil spring mattress) Highly interdependent—each statistically linked to 8 others High score on one apparently lifts many others with it, like a giant tent pole This explains need to have strengths in different areas

30. Insight 6 Change Requires Practice

31. Change Requires Practice Frequently, people underestimate the difficulty of some behavioral changes. A key to developing a new skill is finding a way to practice prior to getting in the game.

32. Summary Effective leadership can impact bottom line results Good leaders achieve more than poor leaders but great leaders can produce a 2X impact on many outcomes If you have a fatal flaw, fix it Building leadership strengths will substantially influence the perception of leadership effectiveness Not all behaviors are created equal – some are more noticeable than others Non-linear development is a new approach to change that provides a unique path to developing strengths To become extraordinary, leaders must practice leadership