Accelerating Leadership Development

How to Accelerate Leadership Readiness
and Development In Uncertain Times
HR Houston – Gulf Coast Symposium
May 12, 2010

Presented by:
JP Elliott PhD, Senior Consultant, Sibson Consulting
Jennifer McCusker PhD, Director Global Talent Development & Retail HR, Oakley Inc.

Copyright ©2010 by The Segal Group, Inc., parent of The Segal Company and its Sibson Consulting Division. All Rights Reserved

“A typical American office worker
checks his email more than 50 times a
day, sends or receives an instant
message nearly 80 times a day and
visits more than 40 different
websites.”
—Tim Shipman

1

The New Normal
Change, Disruption and Transformation

Current and Future Environment

V olatility
U ncertainty
C omplexity
A mbiguity

2
VUCA acronym originated by Institute for the Future

The New Normal
Will Your Organization Survive or Thrive?

Organizational capabilities required:

V ision
U nderstanding
C larity
A gility

3
VUCA acronym originated by Institute for the Future

The New Normal
The Future of Work

Three Critical Assumptions for the Future:
Pace of change will accelerate

Talent will become the single most important factor in
driving competitive advantage
Tomorrow’s skills & capabilities do not exist today

4

The New Normal—What are Your Challenges?

Discuss what business challenges your
Task organization is facing? How has this impacted the
type of leaders you need?

Outcome:
In groups of three or four, discuss and answer
the following questions:
• What are the top 2-3 business challenges your organization is currently
facing?
• How have these challenges impacted the type of leaders your organization
needs?

5

The Leadership Challenge
Talent is plentiful, but leadership is in short supply
Senior Executives view • While talent is seen as key enabler to growth, most organizations do not have
talent as critical to future understanding of their needs:
− The increasingly global competition and shortage of talent was identified by executives as the #1 business trend that
would have a major effect on their companies over the next five years
− 64% of companies identified “gaps in their leadership pipeline” as their top talent challenge
− 68% of companies are unable to identify talent gaps within their organizations, with 49% unable to forecast talent gaps
− Only 26% of companies say they have successors identified for the majority of the positions on their executive teams
− Only 14% of companies are using metrics to analyze and track internal talent supply and demand and connect with
performance data

Developing talent is a • Aligning the talent strategy to the business strategy continues to be an
two-way street opportunity for HR, while Line Managers need to take more ownership:
− 58% of all line managers believe that the HR function lacks the ability to develop talent strategies in line with a
company’s business objectives, though only 25% of HR professionals agreed with that statement
− Only 24% of companies stated their “talent management strategy is completely aligned with the organization’s
overarching business goals”
− 52% of the respondents identified an insufficient commitment to developing talent on the part of line managers as a
critical barrier to talent development
− Only 50% of companies reported widespread use of development plans – only 8% stated that the development plans
are high quality and effective
− Only 28% and 42% of respondents stated that their executives/line managers would rate their “development planning”
and “assessing leaders” as effective
− Only 33% of managers are accountable to act on or follow-up on key talent building processes

Sources:
• Bersin & Associates; Talent Watch Research – Winter 2009, Talent Management Factbook 2009, Modern Approach to
Workforce Planning 2008
• New Talent Management Network, State of Talent Management, 2010
• Talent Management Magazine, State of Industry Report 2010
• Making Talent A Strategic Priority, The McKinsey Quarterly, 2008
• The People Problem in Talent Management, The McKinsey Quarterly, 2006 6

Accelerating Leadership Development

Align Leadership Strategy with Business Strategy
Segment Key Leadership Roles
Define Leadership Role Requirements
Assess Leadership Gaps
Design Leadership Development Plans
Measure, Monitor, & Close Gaps

7

Matching Leadership Needs to the Situation

Key Questions:
Sustaining Start-Up / High
Growth Strategy

Success Growth • What is our current
business situation?
Finding ways to take the Building structures, systems,
BUSINESS STRATEGY

business to the next level processes (sales, marketing, • How does this differ by
and avoiding decisions that product development) that business unit, geography,
could cause issues lead to revenue growth
product line?
• Where will we be in 1 – 3
years?
Return On Asset Strategy

Re-alignment Turnaround • What are the leadership
Redirecting resources such Fast decision making and skills/competencies and
as abandoning old product eliminating non-value added critical experiences that
line and developing new products, resources, and or
technologies often requires business units is required to will be required to be an
changing organization ensure survival effective leader now and
strategy, structure, and skills in the future?
• What leaders have had
experiences in each of
Transactional Transformational the four quadrants?
Change Change

8

Proactive Talent Planning

Business Talent Budget
Objectives Planning Planning
Execution

“Doing the right thing is important, which is
where strategy comes in. But doing that thing
well—execution—is what sets companies apart.”
—Jeffrey Pfeffer

9

Talent Management is no Longer Limited to “Top Talent”

Key Questions:
• Where will you focus your talent development
Top investments?
Management
• What criteria will you use to prioritize
levels or roles?
Middle
Entire
Management • Where do you have current leadership
gaps or surpluses?
a ls

Workforce
ti

• What roles are most critical to
ten

Frontline
business and must have a pipeline?
Po

Management
gh

• What are the key skills and
Hi

capabilities for each workforce
Employees segment?
• Will these be the same
or different in 1 – 3 years?
Contingent Workforce

Source: Adapted from McKinsey Workforce Pyramid

10

Talent Segmentation
The Foundation of Leadership Development
Segmentation enables you to understand and manage your workforce like a
portfolio of assets.
Impact Talent Segment Investments Over Time

Roles that drive Strategic
Critical to driving long-term competitive
the strategy advantage, with specialized skills or knowledge Strengthen
Core
The “Engine of the Enterprise,” unique
to the company and core to delivering
Roles that on its products and/or services
support Protect
the strategy Requisite
Cannot do without, but whose value could
be delivered through alternative staffing
strategies (other than full-time headcount) Streamline/
Outsource

Roles Misaligned
impacted by Talent whose skill sets no longer align
the strategy with the company’s strategic direction
Redeploy

Segmentation strategically values talent and enables
prioritization of talent needs and talent investments.

11

“Hub” for all Talent Management Decisions
FOUR KEY ELEMENTS OF LEADER ROLE REQUIREMENTS
Accountabilities identify the specific
outcomes each role is expected to achieve
relative to the strategy
2. Performance Metrics
Responsibilities identify the primary tasks Derived from strategy, • Financial
and activities each role is expected to critical tasks, and • Customers
perform in order to achieve the outcomes organizational competencies • Markets
expected of the role • People / Culture
Performance Metrics are focused on 4. Critical Experiences Set
measuring business outcomes, not
activities; enable focus on achieving
• Integration/Divestiture 1.
• Cross-Business Exposure
business impact and drive greater Key
• Turn-around
ownership for business impact Defined for Accountabilities
each and Responsibilities
Competencies identify the knowledge, executive
skills, and abilities most critical to role 3. Critical Knowledge,
Skills, and Abilities
successfully fulfilling the accountabilities of (i.e., Competencies)
the role; focus on those competencies that
• Function/Technical
differentiate superior performance
• Interpersonal
Critical Experience Sets identify the Common, practical definitions for • Business
experiences that best prepare someone each executive role • Strategic
to fulfill the requirements of the role
• Required experiences
• Desired experience
• Targeted years of experience

12

Leadership Assessments

Multiple techniques should be used to generate robust and valid
leadership assessments:
• Multi-modal leadership assessments (e.g., assessment centers, 360
feedback, personality inventory, interviews)
• Proprietary competency-based assessment tools (e.g., CCL Benchmarks)
• Personality inventories (e.g., Hogan, MBTI)
• 360 Degree Feedback
• Informal feedback
• External leadership assessment
• Performance ratings / business results achieved

13

Talent Review Sessions

Introduces Common Thinking Provides Overview of Promotes Real Action about
about Leadership Talent Leadership Talent Pool and Gaps Performance and Potential

• Improves understanding of the • Links talent to strategy • Clarifies who owns talent
current talent portfolio for critical
roles • Highlights individual performance • Leads to better assignment and
success and issues development decisions
• Establishes common talent
standards • Identifies gaps (functional, global, • Facilitates mobility across functions
diversity, etc.) and divisions
• Aligns assessments
• Makes it easy to see if leaders are • Refines the messages to be
• Brings together multiple viewpoints building their talent pool delivered
on individuals
• Identifies feeder roles and provides • Identifies individual contributors
• Gives leaders a sense of fairness, an assessment of the talent pool in who have the interest and potential
objectivity, and transparency these roles for movement into critical roles
• Creates consistent data capture • Ensures that an adequate supply • Provides more breadth and depth
and analytics on the pipeline of exists and that action plans are in of talent, ensuring that critical roles
talent in feeder roles place to maintain a strong talent possess the range of capabilities
pipeline identified in the role requirement

The Talent Review calibrates assessments and planned actions. It
includes succession planning and improves performance management.

14

Succession Planning/Talent Review – Key Questions

1
1 Do we have enough high potential people in the function?

2
2 Is there a significant retention risk in the function?

3
3 What are the expectation gaps for each stage?

4
4 What are the performance issues at each stage?

5
5 Where should we import/export with other functions?

6
6 Where do we need to invest in development or new talent?

7
7 Do we agree on our assessments or need to recalibrate on some?

8 What is the strength of the successor pool for key leadership roles, and what
8 actions are necessary to improve the breadth and depth of the pool?

15

Succession Planning/Talent Review Criteria
Leader Metrics &
Scope/Focus Decision Owners Process Assessment Development
Standards Talent Reviews
Critical positions CEO owns enterprise Corporate HR Customized role- Multi-modal Corporate leadership CEO reviews depth
decisions designs and is the based requirements leadership institute develops and breadth of
Critical positions and steward of the with competencies, assessments (e.g., programs leadership pipeline
feeder roles CHRO owns process across the experience sets, and assessment centers, for positions annually
enterprise decisions enterprise; talent is metrics 360 feedback, Customized
Anyone with a reviewed across personality inventory, development Metrics are shared
manager title or CHRO recommends enterprise Enterprise-wide interviews) programs based on quarterly with HR
above and CEO approves leadership standards individual stakeholders on
enterprise decisions Corporate HR for all leaders Proprietary assessment needs developmental
Business unit/division designs the process competency-based progress and the
leadership Senior Leadership and partners with Proprietary assessment tools Job rotation depth and breadth of
owns decisions local HR to facilitate leadership (e.g., CCL pipeline
Senior Leadership within functional area the process; talent is competency models Benchmarks) New job assignment
(Proxy Officers) or business/division reviewed locally and or stretch role Business
at the enterprise Enterprise-wide Personality Unit/Division leaders
Business unit/division generic inventories (e.g., Special review quarterly data
HR owns decisions Local HR adapts the competencies Hogan, MBTI) project/assignment with local HR
process and line
Business unit/division leadership facilitates 360 Degree External coaching Business and/or Line
HR recommends and the process; talent is Feedback leaders reinforce and
line leadership reviewed locally Mentoring monitor development
approves decisions Informal feedback actions and progress
against plan
External leadership
assessment

There are many different approaches to succession and talent review

16

Succession Planning/Talent Review Design Profiles
Metrics &
Scope/Focus Decision Owners Process Leader Standards Assessment Development
Talent Reviews

Critical positions CHRO owns Corporate HR Enterprise-wide Multi-modal Corporate leadership CEO reviews pipeline
Business unit/division enterprise decisions designs the process leadership standards leadership institute develops annually
leadership Senior Leadership and partners with for all leaders assessments (e.g., programs Business leaders
Senior Leadership own decisions within local HR to facilitate Proprietary assessment centers, Job rotation review quarterly data
(Proxy Officers) functional area or the process; talent is leadership 360 feedback, New job assignment with HR and monitor
business/division reviewed locally and competency models personality inventory, or stretch role development actions
at the enterprise interviews)

Senior Leadership Corporate HR Customized role- Multi-modal Job rotation CEO reviews pipeline
Business unit/division own decisions within designs and is the based requirements leadership New job assignment annually
leadership and functional area or steward of the with competencies, assessments (e.g., or stretch role Business Unit
feeder roles business/division process across the experience sets, and assessment centers, Mentoring leaders review
Senior Leadership CEO and CHRO enterprise; top metrics 360 feedback, quarterly data
(Proxy Officers) have ownership for leadership talent is personality inventory, Business and/or Line
senior leadership reviewed across interviews) leaders reinforce and
decisions enterprise monitor development

Critical positions Division HR makes Corporate HR Customized role- Multi-modal Customized Business leaders
Senior Leadership recommendations designs the process based requirements leadership Development programs review quarterly data
(Proxy Officers) decisions and line and partners with with competencies, assessments (e.g., Job rotation with HR and monitor
leadership approves business HR to experience sets, and assessment centers, New job assignment or development actions
CEO and CHRO facilitate the process; metrics 360 feedback, stretch role Business and/or Line
recommend and approve talent is reviewed personality inventory, Special leaders reinforce and
decisions on senior locally and at the interviews) project/assignment monitor development
leadership enterprise

Anyone with a Senior Leadership Corporate HR Enterprise-wide Multi-modal Corporate leadership Business leaders
manager title or own decisions within designs the process leadership standards leadership institute develops review annual data
above functional area or and partners with for all leaders assessments (e.g., programs with HR and monitor
business/division local HR to facilitate assessment centers, Job rotation development actions
the process; talent is 360 feedback, New job assignment
reviewed locally personality inventory, or stretch role
interviews) Mentoring

Source: Conference Board – Talent Management Conference (2008, 2009); Sibson Client Experience. 17

Critical Learning Experiences

1. A New Assignment/New Perspective: Take on a new project
assignment within your current department or role, and/or approaching 80% of
your current role with a new outlook or perspective development
should occur
2. Rotation: Take on a new project assignment in another department or on the job
role. This may be part of a formal job rotation program and/or rotation
outside of business with strategic partners or suppliers

3. Expanded Role: Expand the scope of your current role. This may
include the enlargement of current tasks and responsibilities, or taking
on additional extra-role duties such as committees or task forces

4. Mentor/Coach & Reverse Mentoring: Request the assignment of
a formal or informal mentor or coach who provides personal and
professional guidance based on similar experiences and situations

5. Training and Education: Participate in either a formal role-related
training course (either in-house or off-site) or educational courses and 20% of
programs offered by universities and institutes development
should be
6. Self-Study: Initiate learning through outside channels, including formal training
reading business and industry publications, attending professional
conferences held by external vendors, and seeking other information
from subject matter experts

18

Talent Pools

Key Assumptions Driving Talent Pools:
• Frequent changes or flexibility to the business
Top strategy, organizational structure or jobs
Talent Pool Management responsibilities or reporting relationships
– Middle &
Frontline • People move vertically and horizontally
Middle
Management Management • Upward movement is not automatic
• Impossible to plan future jobs – the
a ls

focus is on the next assignment
ti

Frontline
ten

Management • Training is integrated and
Po
gh

focused skills that can be used
Hi

immediately
Employees
• People can turn down
new assignments without
leaving program
Contingent Workforce

Talent pools focus on developing and nurturing a cross-section of leaders versus
just those few that have been identified as candidates for senior level roles

19

Learnings From the Top Companies for Leaders

“My main job was developing talent. I was a gardener
providing water and other nourishment to our top 750
people. Of course, I had to pull out some weeds, too.
— Jack Welch

Source: “Top Companies for Leaders 2009” Fortune 20

Measure, Monitor & Close Leadership Gaps
Quantitative & Qualitative Metrics
Leadership Pathway and Pipeline Analytics
88 COO CEO

F VP 1 VP 2
SVP 1 SVP 2
BAND/JOB FAMILY

E Director
1
Director
2
VP 3

D Director
4
Director
3

Mgr 1 Mgr 2

C

Mgr 3
Role 1 Role 3
B

Role 2

A

CC
Role 1 Role 2
BB
Role 3
AA

CHURN ANALYSIS READINESS ANALYSIS PERFORMANCE AND POTENTIAL MATRIX
16
30%
14
25%
Leader 1
6% 12 6
Leader 2
20% 5% 10 7 Leader 3
8 6 Leader 4
15% 12%

POTENTIAL
3% 6 5
10% Leader 5
10%
9% 4 4 Leader 6
4
5% 9% 2 4 Leader 7
7% 2
3% 0 1 Leader 8
0%
Director VP SVP Leader 9
Director VP SVP
Ready for advancement POTENTIAL FIT ISSUES Leader 10
Turnover Transfer Retirement Ready Now Ready 6-12 Months Ready 12-24 Months
PERFORMANCE

21

Developing Leaders—What are Your Challenges?

Complete the Leadership Development
Task Assessment and discuss the challenges your
organization is facing in developing leaders?

Outcome:
In groups of three or four, discuss and answer
the following questions:
• What are the top 2-3 challenges your organization is currently
facing in developing leaders?
• How have you addressed these challenges?

22

Leadership Development Assessment

23

Accelerating Leadership Development

Measure, Monitor, & Close Gaps

24

“My favorite time to manage is during a bust.
It brings more clarity about what your customers
need and what your priorities should be.”

—Sergey Brin, founder of Google

25

Follow-up Questions and Further Information

10880 Wilshire Boulevard Suite 850
Los Angeles, CA 90024
T 310.231.1700
www.sibson.com

JP Elliott, PhD
jelliott@sibson.com

26

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