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Cipd Ireland Where Are Tomorrows Leaders Today Final Version Mtim 1110


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Many organisations will be affected by a high turnover of high potentials and high performers in 2011. What can we do about it ? What is the importance of a new Employer Value Proposition ?

Many organisations will be affected by a high turnover of high potentials and high performers in 2011. What can we do about it ? What is the importance of a new Employer Value Proposition ?


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Cipd Ireland Where Are Tomorrows Leaders Today Final Version Mtim 1110

  1. 1. Where are tomorrow’sleaders today ?<br />Marc Timmerman, in associationwith Hudson Europe<br />CIPD EE Conference Nov 26th 2010 Dublin <br />Copyright of Marc Timmerman, 2010<br />
  2. 2. The Mosquito &<br />the Nudist Colony<br />
  3. 3. Anno 2009<br />
  4. 4. What kept our Leaders awake in 2009 ? Engaging & Retaining Talent while Right-Sizing<br />Source : Hudson Research, 2009<br />
  5. 5. Anni 2010-2011<br />
  6. 6. A Tsunami of peopleleaving …<br />
  7. 7. “Economic Battle Fatigue”©<br /><ul><li>1 out of 3 key performers is considering leaving their employer in 2010. (Source : The Grapevine, Feb 2010)
  8. 8. 1 out of 4 high potentials is considering leaving their employer. (Source : HBR, May 2010)
  9. 9. This year staff attrition could cost the UK economy in excess of £1 billion. (Source : The Grapevine, Feb 2010)
  10. 10. The Hudson Talent Engagement Survey Results indicate an average of ‘weak’ contracts between 30 & 50% in Europe in H1 2010. (Source : Hudson)
  11. 11. Multiple external surveys in Europe indicate that there could be an employee turnover as high as between 40-60% in 2010 as economies slowly recover.</li></ul>Copyright of Marc Timmerman, 2010<br />
  12. 12. Ready to play Musical Chairs ?<br />
  13. 13. Focussed HR Issues in 2010Separate Schools of Thought<br /><ul><li>Two Main Schools of Thought :</li></ul>Individual Entry Point : Talent Engagement & Retention<br />Organisation Entry Point : Business Strategy & Workforce Planning<br />Hybrid : Succession Planning<br /><ul><li>Many focussing on increasing volume of Talent Pool</li></ul>Microsoft moving from 4-6 % to 10% of first Tier Top Talents<br />Anticipating Retention Risk ?<br />Investing towards Future Growth ?<br />Gaining Competitive Advantage ?<br /><ul><li>More focus on employer branding as part of commercial branding</li></ul>If people like us as an employer, we must be good as a company !<br />Re-inventing the Brand to come to a multi-facetted appeal for many<br />The Employer Value Proposition<br />Copyright of Marc Timmerman, 2010<br />
  14. 14. Should I Stay or Should I Go ?(The Clash, 1982)<br />Make<br />Buy<br />vs<br />Change<br />Stay<br />vs<br />Employer<br />Psychological<br />Contract<br />Employee<br />
  15. 15. The Business Case for Employee Engagement<br />2. HIGH <br />PERFORMANCE <br />& RETENTION<br />1. ENGAGED & <br />MOTIVATED <br />EMPLOYEES<br />EASIER SAID THAN DONE<br />3. POSITIVE <br />CUSTOMER <br />EXPERIENCE<br />4. POSITIVE <br />SHAREHOLER <br />RETURNS<br />
  16. 16. Factors affecting Engagement<br />Research carried out by Purcell et al (2003) established that the key policy and practice factors influencing levels of employee engagement were:<br />received training last year;<br />are satisfied with career opportunities;<br />are satisfied with the performance appraisal system;<br />think managers are good in people management (leadership);<br />find their work challenging;<br />think their firm helps them achieve a work-life balance;<br />are satisfied with communication on company performance<br />Source: A handbook of HRM Practice by M. Armstrong (2003)<br />
  17. 17. What are the New Leadershiprequirements ?<br />
  18. 18. Leadershipoldstyle ?<br />
  19. 19. Organizations<br /><ul><li>‘are social arrangements for the controlled performance of collective goals’ (Huczynski & Buchanan 1991)
  20. 20. ‘As the basic unit of an organization is the role rather than the person in it, the organization is maintained in existence, sometimes over a long period of time, despite many changes of members’ (Statt, 1991)
  21. 21. A Company Culture is Shared Values and Beliefs that underlie a company’s identity.</li></ul>“The story of the Monkeys & the Banana tree”<br />
  22. 22. Socio-Cultural <br />influences<br />Political - Legal <br />influences<br />Economical <br />influences<br />Technological <br />influences<br />Ecological <br />influences<br />The Organisation<br />The formal subsystem :<br /><ul><li> Management
  23. 23. Structure
  24. 24. Operations</li></ul>The informal subsystem :<br /><ul><li> Leadership
  25. 25. Culture
  26. 26. Politics</li></ul>A systemic view on an organisation<br />
  27. 27. Developing the Leaders of the Future& the Box of Pandora<br />
  28. 28. Think Long-Term at the Crossroads of Succession & Talent Management<br />Talent Management<br />Hipo Management<br />Succession Management<br />Maximum deployment of resources required for attracting, selecting, developing and retaining talent. “Mapping” of in-house talent (in all layers of the organisation) based on current performance and potential growth.<br />Identify and develop in house talentwith the potential to grow into a leadership role into the type of leadership needed in the future, going on the organisation’s strategy.<br />Develop future leaders by mapping out which succesful managers qualify for which growth path, and by grooming them towards this function in order to assure success in assuming the role.<br />Combination of both practices<br />Copyright of Marc Timmerman, 2010<br />
  29. 29. The biggest injustice is the equal treatment of people who are not the same<br />
  30. 30. How do most Executives recognize Future Talent ?<br /><ul><li>Has a unique perception of occupation
  31. 31. Is very time conscious
  32. 32. Shows independence
  33. 33. Has a high level of commitment
  34. 34. Has a phenomenal amount of energy
  35. 35. Shows a vibrant sense of creativity
  36. 36. Strives for continuous improvement
  37. 37. Gives sharp remarks
  38. 38. Shows willpower
  39. 39. Varying interest in teamwork
  40. 40. Gives a demanding impression
  41. 41. Puts the job before everything
  42. 42. High intelligence
  43. 43. Has a broad thinking style
  44. 44. Is part of the dominant coalition</li></ul>Sources: Organizational Dynamics (1986), Human Resource Management, (1998), National Productivity Review (1989), Journal of Management Development (2003)<br />
  45. 45. Avoid Creating your own Louis XIV<br />Initiative IntrospectionProblem solving<br />Assertiveness Thoughtfulness Energy<br />Early<br />Career<br />characteristics<br />High performance & IQ<br />Negotiation skills Sensitivity to others Team builder Strong relationships Interpersonal skills Good reputation<br />EQ<br />Derailment is often caused by:<br /><ul><li> Cold heartedness
  46. 46. Arrogance
  47. 47. Self-glorification</li></ul>Mid Career<br />characteristics<br />Copyright of Marc Timmerman, 2010<br />
  48. 48. IQ + EQ + LQ =<br />Top Talent<br />Copyright of Marc Timmerman, 2010<br />
  49. 49. Clusters of Critical HiPo CompetenciesResearch done by the Free University of Brussels, 2004-2005<br />Through Principal Factor Analysis a cluster of three Meta-competencies was detected explaining 70% of variance<br />Source: The Journal of Management Development (2003)<br />
  50. 50. The Critical Competencies for Future Executives<br />Prof Paul Evans (InSead) : <br />The Leadership style of the Future : “The Understated Leader”<br />Prof Manfred Kets De Vries (InSead) :<br />The Leader of the Future has the ability to create a company culture and being the glue of the team:<br />Community: creating an environment of mutual support, respect and collaboration<br />Pleasure: creating employee satisfaction and enthusiasm through stimulating continuous learning, creativity, excitement and humor<br />Meaning: providing a meaning for the society as a whole: putting things in perspective<br />Thus creating the possibility of growing a Sense of Belonging <br />Source: Journal of Human Resource Management (2003)<br />
  51. 51. The Pixar Story <br />Pixar’sOperatingPrinciplescanbedistilled down to 3 principles.<br />Everyonemust have the freedom to communicatewithanyone.<br />2.  Itmust be safe foreveryone to offer ideas.<br />3.   We must stay close to innovations happening in the academiccommunity. <br />
  52. 52. Ed Catmull, President of Pixar<br /><ul><li>"We thinkthatlastingrelationships matter and we sharesomebasicbeliefs: Talent is rare. Management's job is not to prevent risk, but to build the capability to recoverwhenfailuresoccur. We must constantlychallenge all of ourassumptions and search for the flawsthatcoulddestroyour culture.
  53. 53. "Equallytough is gettingtalentedpeople to workeffectivelywithoneanother. Thattakes trust and respect, which we managers can'tmandate; they must beearned over time.  What we can do is construct an environment thatnurture'strusting and respectfulrelationships and unleasheseveryone'screativity.”
  54. 54. “Ittaughtusan important lesson in the primacy of people over ideas: Ifyougive a goodidea to a mediocre team, they’llscrewit up; butifyougive a mediocre idea to a great team, theywilleitherfixitorthrowitaway and come up withsomethingthatworks.”
  55. 55. “Don’tpunishpassion. Be criticalabout the idea, not the creator. And  Ifyou have to consistentlymicro-managethenyou’rehired the wrong talent orhaven'tinvested in mentoringthem.”</li></li></ul><li>Affective Commitment<br />A feeling of attachment to the company and its values (belonging, solidarity, and affiliation)<br />Good Leader Effect<br />Normative Commitment<br />A feeling of obligation to serve the company and to work hard<br />RETENTION<br />Crisis Effect<br />Continuance Commitment<br />A feeling of necessity to remain working for the company as changing jobs would cost too much (economic, effort, social) <br />Meyer & Allen<br />PERFORMANCE<br />ENGAGED EMPLOYEED ARE HIGHER <br />PERFORMING & LONGER TENURED<br />Organisations are People-Based<br />
  56. 56. Leaders are made<br />
  57. 57. The Leadership GapDoes HR need to fill the gap ?<br /><ul><li>On average 28 to 32% of your managers are fully competent in :
  58. 58. leading people
  59. 59. leading a complex and changing business
  60. 60. steering towards the future
  61. 61. Some of the leadership gaps HR is expected to fill :
  62. 62. Listen to the voice of your Talent, give them practical growth opportunities, take a risk with them.
  63. 63. Create an atmosphere at the top that offers protection and allows people to make mistakes.
  64. 64. Create possibilities for Baby Boomers to understand Generation Y
  65. 65. To Walk the Talk !</li></ul>Copyright of Marc Timmerman, 2010<br />
  66. 66. Preferred Leadership Style<br />Source : Hudson / Vlerick Hipo Research Study, 2006<br />
  67. 67. Offering Of Development Practices For HiPo’s<br />Top 5 regarding “Perceived Effectiveness”:<br />Starting-up new projects<br />Mentoring & Receiving opportunities to make mistakes<br />Having a high degree of autonomy<br />Having a talented boss<br />Learning from talented people<br />Source : Hudson / Vlerick Hipo Research Study, 2006<br />
  68. 68. The Functions Of Mentoring<br />Career Functions :<br />Sponsorship<br />Coaching<br />Protection<br />Challenging Assignments<br />Exposure and visibility<br />Psycho-Social Functions :<br />Role modeling<br />Counseling<br />Acceptance and Confirmation<br />Friendship<br />“The most conspicuous difference between star and nonstar women is access to a supportive mentor.”<br />Source: Kathy Kram, Mentoring at Work<br />
  69. 69. Dilemma in Developmental Actions<br /><ul><li>Intrinsic motivators make HiPo’s give high added value to : mentoring, job rotation, 360° fb</li></ul>Discovering one’s own limits<br />Raising the bar for themselves<br /><ul><li>Organizations however need better leaders as this is a main retention issue for keeping people inside the company.</li></ul>Strong need for internal management trainings in order to secure and improve the needed leadership potential inside an organization.<br />Copyright of Marc Timmerman, 2010<br />
  70. 70. Career Management<br />Final Admission<br />Assessment<br />Senior Mgmt<br />Development Centre<br />Junior Mgmt<br />Development Centre<br />Young Graduate Assessment<br />BUYING SUPERSTARS 80 / 20 rule<br />Top Exec<br />Track<br />T<br />E<br />S<br />T<br />I<br />N<br />G<br />Senior Mgmt<br />Career<br />Track<br /> Experienced<br />External<br />Influx<br />Controlled<br />ZigZag<br />Management<br />Period<br />Junior & <br />Mid Career<br />Zero-<br />Measurement<br />Period<br />Entry Level<br />
  71. 71. Developing the NextGeneration of Leaders<br />
  72. 72. The potential effect of increasing women’s employment<br />
  73. 73. Percentage of women on boards in top 300 European companies<br /><ul><li> There are still significant differences within Europe, especially between Northern and Southern Europe
  74. 74. The number of women in executiveroles overall is – slowly – growing:
  75. 75. 8% in 2004
  76. 76. 8.5% in 2006
  77. 77. 9.7% in 2008</li></ul>(European Professionals Women Network, 2008)<br />
  78. 78. C-Level Men and Women: two of a kind?<br />Source: Hudson, Could the right Man on the right place be a Woman ? 2008<br /><ul><li>Compared to C-Level men, women tend to focus less on immediate results; take the bigger picture into account and take a more autonomous stand. They keep a distance from the concrete details and day-to-day issues, have a conceptual view and appear more open to change.
  79. 79. They also pay more attention to open communication in the organisation and adopt a more ‘human’ approach with room for co-operation, mutual support and sociability. </li></li></ul><li>Young Men and Women leaders (under 40 )<br />Source: Hudson, Could the right Man on the right place be a Woman ? 2008<br /><ul><li>Younger feminine leaders score higher onaltruism: people-oriented, helpful and socially confident. They also are more change oriented and organised than younger male leaders.
  80. 80. Younger male leaders focus more on emotional stability (relaxed, stress-resistant and decisive),they score more strongly on leadingability and persuasiveness and differentiate themselves by their ambition, result-orientation and strategic thinking. </li></li></ul><li>And whatabout …<br />
  81. 81. Employer Value propositionLeadership delivering on ‘Promises’ is KEY<br />‘The organization delivers on the promises it makes to employees’<br />How does it manifest itself with current and potential employees:<br /><ul><li>I’m clear on what it means to work in my organisation– common clarity on the “psychological” or “social” contract
  82. 82. What you told me it was going to be like to work here is like it really is; and
  83. 83. It aligns with what I’m looking for from an employer</li></ul>One of Our Biggest Challenges on a short term <br />is that we will have to be <br />many things to many individuals.<br />Copyright of Marc Timmerman, 2010<br />
  84. 84. The Meaning of Leadership<br /><ul><li>The Leader has a determining impact on Company Culture
  85. 85. Leaders serve and sacrifice themselves
  86. 86. The Best Leaders develop others
  87. 87. “We all need loving critics”
  88. 88. Making mistakes is human
  89. 89. “You can’t plan to be courageous, but you can choose it”</li></ul>Management is DOING THINGS RIGHT<br />Leadership is DOING THE RIGHT THINGS<br />Copyright of Marc Timmerman, 2010<br />
  90. 90. The relational side of Leadership<br /><ul><li>Leadership is personal
  91. 91. “Leaders should want to be liked”
  92. 92. Try to understand others
  93. 93. Trust is not an evidence !
  94. 94. Provide clarity
  95. 95. “Let your people go”</li></ul>Copyright of Marc Timmerman, 2010<br />
  96. 96. Curtains !Thankyouforyourattention<br />“The certainty of misery is better <br />than the misery of uncertainty”<br />