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

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

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

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

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?

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