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1 <Remove this page before presenting>
Presentation Guide for HR/Training Professionals (Please click on the “View” menu and select “Notes Page” to begin) Purpose of This Training Presentation Few learning strategies rival the development senior leaders alone can offer. This presentation and the accompanying PDF are designed to help senior leaders develop their direct reports more effectively by focusing on the right activities and establishing a solid foundation for coaching partnerships. Quick Facts About This Training Key Audience(s): General managers, heads of business units, heads of functional areas Time Requirement: 45 minutes as designed (can be lengthened or shortened as desired) Materials Needed: Slide projector, notepads, pens, whiteboard, or flip-charts with markers How to Use This slideshow is intended for presentation by Head of HR/HR business partner to groups of senior leaders. Members wishing to offer these findings exclusively for self-study are encouraged to distribute the PDF version of this material directly to senior leaders. In most organizations, this presentation will enable HR practitioners to introduce senior leaders to the content found in the PDF; in turn, leaders can use the PDF version independently as reference material. The presenter of this content should review the supplemental materials with training participants as part of the session. Before Using This Presentation Before conducting this training for your senior leaders and distributing the associated supplemental materials, please incorporate the following customizations: Remove this page. Identify the sections you wish to distribute to your leaders and delete the rest (if applicable). Place your company’s logo on each page in the lower-right corner (or delete the “Insert Organization Logo Here” box). Please make sure you have read and understand the information below, as it is important to understand the details behind our research methodology before explaining to other members of our organization. If you have any questions about this presentation or the data contained within, please contact your Account Manager. Note to Members This project was researched and written to address the research interests of several specific companies and as a result may not satisfy the information needs of all companies. The Corporate Executive Board encourages readers who have additional questions about this topic to contact the Roundtable staff for further discussion. Descriptions or viewpoints contained herein regarding organizations profiled in this report do not necessarily reflect the policies or viewpoints of those organizations. Confidentiality of Findings This document has been prepared by the Corporate Executive Board for the exclusive use of its research contacts. It contains valuable proprietary information belonging to the Corporate Executive Board and each member should make it available only to those employees who require such access in order to learn from the material provided herein and who undertake not to disclose it to third parties. In the event that you are unwilling to assume this confidentiality obligation, please return this document and all copies in your possession promptly to the Corporate Executive Board. Legal Caveat The Corporate Executive Board has worked to ensure the accuracy of the information it provides to its readers. This report relies upon data obtained from many sources, however, and the Corporate Executive Board cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the Corporate Executive Board is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither the Corporate Executive Board nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by the Corporate Executive Board or its sources, or b) reliance upon any recommendation made by the Corporate Executive Board. <Remove this page before presenting>

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CEB HR Leadership CouncilTM For Midsized Companies Leader-Led Development Your Role in Developing the Next Generation of Leaders Talking Points Thank you for joining us for this short session on leader-led development. This session will help you learn how to best develop your direct reports and prepare them for future leadership roles. Insert Organization Logo Here

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OBJECTIVES FOR TODAY’S SESSION Understand why you should develop your direct reports. Identify where you should focus your efforts. Review tips and tricks to become more effective at developing your direct reports. Talking Points Given your role as a senior leader, you recognize that the success of your organization depends on the strength of your leadership talent. While your organization can engage in numerous strategies to select and develop its next generation of leaders, the coaching you alone provide has the most significant impact on your direct reports’ performance. Recognizing the demands of your role, during our time together today, we’ll discuss why you play a very important role in the development of your direct reports, help you focus your development efforts, and improve your effectiveness at developing your direct reports Insert Organization Logo Here

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ROAD MAP FOR THE TRAINING The Business Case The Five Essential Roles Foundation for Success Insert Organization Logo Here

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Bench Builders Are Business Builders The Link Between Effective People Development and Business Performance1 The very best developers of other leaders are also 1.5 times more likely to exceed their financial goals. 1.5x x = 50% Percentage of Senior Leaders Who Exceeded Their Financial Goals Talking Points Introduction to This Slide: As a senior leader, you know firsthand how to get results in your organization. The guidance and advice you have to offer your direct reports is unparalleled. The good news is that developing your direct reports goes hand in hand with delivering business results. The bar graph on this slide shows that senior leaders who are effective at developing their direct reports are 1.5 times more likely to exceed their financial goals. Transition to the Next Slide: On the next slide, let us see the impact that leader-led development has on performance of direct reports. Senior Leaders Very Ineffective at Developing Other Leaders Senior Leaders Very Effective at Developing Other Leaders 1 This key finding is based on the Roundtable’s 2006 Senior Leadership Survey, which surveyed more than 1,600 senior leaders and their direct reports in 14 organizations. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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Why Leader-Led Development Matters to Your Team The Impact of Leader-Led Development on Performance1 Indexed Additional Benefits 25% increase in direct reports’ intent to stay 25% increase in direct reports’ emotional commitment 18% increase in direct reports’ discretionary effort 16% increase in discretionary effort of direct reports’ teams = 27% Performance Improvement 127 100 Effectively developing your direct reports can boost their performance by as much as 27%. Senior Leaders Very Ineffective at Developing Other Leaders Senior Leaders Very Effective at Developing Other Leaders Talking Points Introduction to This Slide: Given your role as a senior leader, you recognize the powerful effect your guidance and advice have on developing the next generation of leaders. But what you may not be aware of is the quantifiable, bottom-line impact of your efforts. The bar graph on the left of this slide reveals that by effectively developing your direct reports, you can boost their performance by as much as 27%. Moreover, the impact you have does not end there. Effectively developing your direct reports also increases their likelihood to stay with your organization, their engagement, and the effort they (and their teams) put into their jobs. On the right box are some additional benefits of leader-led development – Some interesting data points from Corporate Executive Board’s research – 25% increase in direct reports’ intent to stay 25% increase in their emotional commitment 18% increase in their own discretionary effort and 16% increase in their team’s discretionary effort Transition to the Next Slide: Next, let us see what some other well known CEOs and Business Leaders think about leader led development 1 For the purposes of illustration, direct report performance scores were indexed to a scale on which 100 points indicates performance of direct reports who report to senior leaders ineffective at developing other leaders. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

7 Why Leader-Led Development Matters to You
“The day you become a leader, your job is to take people who are already great and make them unbelievable.” Jack Welch Former CEO General Electric “Leadership development is perhaps one of the most important duties that I have.” Peter Brabeck-Letmathe CEO Nestlé “If you can’t build the people, if you can’t leave an organization stronger than you found it, with more capable people than you inherited, then I question whether you’re really adding value.” Steven Reinemund Former CEO PepsiCo “I think we [CEOs] are mentors, we are teachers, we are coaches, and that is what makes a great leader.” Ed Zander CEO Motorola Talking Points Introduction to This Slide: Effectively developing your direct reports also provides a personal payoff. While you benefit from your team’s improved performance, engagement, and retention, you also contribute to your leadership legacy. Business ideas and innovations may fade, but the impact you have on your people will withstand the test the time. What we have on this slide are quotes from some past and present CEOs from leading organizations. As you can see, all share this belief and have made developing others an integral component of their executive mandates. Transition to the Next Slide: So, the business case for leader-led development is quite clear. In the next section, we will talk about the five essential roles that you play in the development of your direct reports and the related activities that have the greatest impact on your direct reports’ performance. Source: Joss, Dean Robert, “It’s Not About You,” Stanford Business, August 2005; Reichlin, Igor; “The Six Ps of PepsiCo’s Chief,” BusinessWeek, 10 January 2006; “Transcript: Edward Zander, Chairman and CEO of Motorola,” 2 October 2006; “Getting the Global View,” The Chief Executive, October 2004; CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

8 The Five Essential Roles Insert Organization Logo Here
ROAD MAP FOR THE TRAINING The Business Case The Five Essential Roles Foundation for Success Insert Organization Logo Here

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Focusing on the Five Essential Roles Five Essential Roles Experience Broker Relationship Broker Performance Advisor Experience Optimizer Career Champion Stretch and Challenge Your Direct Reports Through Work Experiences Connect Your Direct Reports to Other Key Leaders Offer Advice and Guidance Encourage Learning from Work Experiences Pave the Path to Senior Leadership Direct to career- advancing job assignments. Create best sequence of work and assignments. Place in situations to fix failing projects and push their comfort zones. Enable learning from other leaders. Build relationships between your direct reports and other key leaders. Guide direct reports toward the most influential individuals. Serve as a sounding board for difficult challenges. Help direct reports understand unintended consequences. Provide feedback on their greatest strengths. Provide opportunities to practice new skills. Enable reflection on learning assignments. Help balance learning and work. Ensure others see long-term potential. Explain remaining steps to promotion. Prepare for successful career moves. What This Means for You Activities You Can Try with Your Direct Reports Talking Points Introduction to This Slide: To make the most of your time, you should focus on performing five essential roles. These roles capture the underlying activities that have the greatest impact on your direct reports’ performance. The first one is the role of an Experience Broker , where you develop your direct reports by providing them with challenging work experiences. The second role is of a Relationship Broker, where you help your direct reports learn from other key leaders in your organization. You help them connect and build relationship with other leaders. The third role is of Performance Advisor. Performing in this role, you help your direct reports understand consequences of a particular action and offer your advice and guidance on the same. Next, your role as an Experience Broker . Here you provide your direct reports opportunities to practice their skills and encourage learning from work experiences. Lastly, you play a role of a Career Champion. Basically, prepare your direct reports for successful career moves and pave their path to senior leadership. You will quickly note that the roles you must play rely on your privileged insight and position as a senior leader. In other words, being an effective talent developer relies on your natural strengths, experiences, and abilities. Transition to the Next Slide: In the next few slides, we will take a deeper dive into each of these five roles, and discuss some tips and activities, that you can implement immediately as you work towards the development of your direct reports. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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Role #1: EXPERIENCE BROKER Activities You Can Try with Your Direct Reports Tips Direct to career-advancing job assignments. Create best sequence of work and assignments. Place in situations to fix failing projects and push their comfort zones. Ensure that direct reports have sufficient opportunities to develop skills within their current jobs. Ensure that the projects you assign your direct reports build on one another and become increasingly complex over time. Allow direct reports to experience the entire “life cycle” of a project—pulling them away too soon prevents them from understanding the impact and implications of their decisions. Brainstorm with your direct reports ways to make their day-to-day tasks and activities more challenging to have a greater impact on business results. Talking Points Introduction to This Slide: As a senior leader, you recognize the truth in the saying “experience is the best teacher.” One of your key responsibilities as an Experience Broker is to connect your direct reports to the jobs and assignments that best accelerate their development. Whether these opportunities are plentiful or few, you should also “mine” their current jobs for developmental value. You will find many opportunities to embed stretch and challenge into their daily activities. Activities like: Directing to career-advancing job assignments Creating best sequence of work and assignments Placing in situations to fix failing projects and push their comfort zones On the right side of this slide are some tips which will help you perform in this particular role and achieve greatest bang for you buck. Please take a moment to review these activities. Transition to the Next Slide: On the next slide, we will talk about your role as a relationship broker. Discussion Points: What are some other activities that you have tried with your direct reports in this regard? What was the impact? Do you have additional tips that you will like to share with others? Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

11 Role #2: RELATIONSHIP BROKER
Activities You Can Try with Your Direct Reports Tips Enable learning from other leaders. Build relationships between your direct reports and other key leaders. Guide direct reports toward the most influential individuals. Stress the importance of relationship building to your direct reports’ development. Connect your direct reports to other leaders who can help them with a specific development outcome. Share strategies and tactics for balancing “give and take” in professional partnerships. Talking Points Introduction to This Slide: Knowing the right people is critical to the success of any leader. As a Relationship Broker, you should connect your direct reports to other influential leaders who can assist in their development. Your direct reports develop best when they are able to tap into and learn from a broader network. Equally important is ensuring that direct reports make the most out of their current relationships—helping them to both learn from and share their own knowledge and expertise with others. Some activities that you can try with your direct reports here include: Enabling learning from other leaders Building relationships between your direct reports and other key leaders Guiding direct reports toward the most influential individuals On the right side of this slide, we again have some tips which will help you perform in this particular role - things like sharing tactics and strategies for balancing ‘give and take’ in professional relationships can help your direct reports build better connections with other leaders. Please take a moment to review these tips. Transition to the Next Slide: On the next slide, we will talk about your role as a performance advisor. Discussion Points: What are some other activities that you have tried with your direct reports in this regard? What was the impact? Do you have additional tips that you will like to share with others? Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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Activities You Can Try with Your Direct Reports Tips Serve as a sounding board for difficult challenges. Help direct reports understand unintended consequences. Provide feedback on their greatest strengths. Create formal and informal opportunities for direct reports to approach you with questions (e.g., schedule a monthly check-in, invite a direct report to lunch). Don’t immediately “jump in” to solve your direct reports’ problems; it’s better to help your direct reports understand the pros and cons of their decisions. Recognize the strengths you want to reinforce in your direct reports and give specific examples of when they demonstrated them. Talking Points Introduction to This Slide: The advice you have to offer your direct reports is critical to boosting their performance. Your direct reports respond best when you listen, ask questions, and encourage them to make their own decisions. Although you can quickly solve their problems for them, you can make better use of your time by teaching your direct reports how to find solutions on their own. At the same time, focus your advice and guidance on leveraging your direct reports’ strengths. While it is natural to focus on areas for improvement, giving them opportunities to further demonstrate their strengths dramatically boosts their performance. Try activities like: Serving as a sounding board for difficult challenges Helping direct reports understand unintended consequences Providing feedback on their greatest strengths On the right side of this slide are some tips to help you better perform the role of a performance advisor. Take a moment to review these tips and then we can move ahead. Transition to the Next Slide: Next, let’s discuss your role as an experience optimizer Discussion Points: What are some other activities that you have tried with your direct reports in this regard? What was the impact? Do you have additional tips that you will like to share with others? Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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Activities You Can Try with Your Direct Reports Tips Provide opportunities to practice new skills. Enable reflection on learning assignments. Help balance learning and work. Ensure that direct reports have clear expectations before a learning experience—ask them to share why they have been assigned certain tasks and activities and what they need to learn from them. Have direct reports identify what they learned; what they found easy, hard, or surprising; and what they would do differently after each key learning experience. Encourage your direct reports to teach others what they’ve learned from work experiences—this prompts them to reflect and capture key lessons learned. Talking Points Introduction to This Slide: Aside from connecting your direct reports to the “right” jobs and assignments, you also need to ensure they come out of those experiences more capable than when they began. As an Experience Optimizer, you can drive home the value of experiences by encouraging them to reflect on what they have learned and showing them how to apply it to work. Provide direct reports with opportunities to practice new skills, enable reflection on learning assignments and help them balance learning and work The tips on the right of the slide provides you with some concrete steps to follow as you try these activities with your direct reports. Transition to the Next Slide: Next, let’s discuss the fifth and the most important role that you play in the development of your direct reports – the role of a career champion Discussion Points: What are some other activities that you have tried with your direct reports in this regard? What was the impact? Do you have additional tips that you will like to share with others? Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

14 Role #5: CAREER CHAMPION
Activities You Can Try with Your Direct Reports Tips Have your direct reports give you “key talking points” about their performance record, career highlights, and other achievements. Create transparency on promotion “differentiators”—those behaviors and accomplishments that set other leaders apart. Hold your direct reports accountable for owning their careers and achieving their development goals. Ensure others see long-term potential. Explain remaining steps to promotion. Prepare for successful career moves. X Don’t Shield Your Talent We know letting go of your best talent is hard, but direct reports who feel “shielded” from job opportunities are up to 25% more likely to leave the organization entirely. It is far better to promote your best talent within the company than to risk losing them to competitors. Talking Points Introduction to This Slide: The greatest impact you can have in developing your direct reports is setting them up for success in the long term. Accelerate their ascent to senior leadership by advocating their performance and potential. You should also give your direct reports a realistic view of what they’ll need to accomplish in their final steps to promotion. Make sure that you: Help other key people in the organization see long-term potential of your direct reports. Explain your direct reports the steps to promotion and things that they need to accomplish Prepare them for successful career moves to ensure their long term success However, one caution that you need to exercise here – is to NOT shield your talent. As mentioned in the box at the bottom of this slide, we know letting go of your best talent is hard, but direct reports who feel “shielded” from job opportunities are up to 25% more likely to leave the organization entirely. It is far better to promote your best talent within the company than to risk losing them to competitors. Transition to the Next Slide: Till now, we have had a look at the five essential roles that you play in the development of your direct reports, and the activities that you can perform. In the next section, let’s talk about how you can be more effective at your development initiatives – by establishing healthy relationships and being a role model for development. Discussion Points: What are some other activities that you have tried with your direct reports in this regard? What was the impact? Do you have additional tips that you will like to share with others? Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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ROAD MAP FOR THE TRAINING The Business Case The Five Essential Roles Foundation for Success Insert Organization Logo Here

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BUILDING A SOLID FOUNDATION What Matters Most Establish Healthy Relationships Be a Role Model for Development You can lead by example by demonstrating openness to coaching and feedback—your direct reports are more likely to take responsibility or their own development if they know it matters to you. When your direct reports perceive you as a credible leader who treats them with respect and fairness, they are far more likely to follow through on advice you give. What Matters Less Top Management Support Use of an Executive or Professional Coach Company Culture Financial Incentives for Developing Others Talking Points Introduction to This Slide: Focusing on the five essential roles is the first step to effectively developing your direct reports. The second step is to build a solid foundation for your development efforts by 1) Establishing and maintaining healthy relationships with your direct reports 2) Demonstrating your own receptivity to development. While it may sound obvious, your direct reports are less likely to listen and follow through on your feedback and guidance if they do not view you as a credible leader who treats them with respect and fairness. They are also less likely to take their development seriously if you do not take your own development seriously. Another interesting thing to note here are the bullets under ‘What Matters Less’ section on the slide. It may surprise you to know that when it comes to setting a solid foundation for developing other leaders, these factors like top management support, professional coaching, culture and incentives are much less important than building healthy relationships and being a role model. With or without the influence of these factors, you can be successful in developing other leaders. Transition to the Next Slide: On the next slide, lets talk some more around establishing healthy relationships. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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ESTABLISH HEALTHY RELATIONSHIPS Impact on Effectiveness at Leader-Led Development1 Tips 42.9% 42.7% 41.0% 35.8% 43.4% 32.1% Ensure that the advice you provide to your direct reports strongly links to your expertise and experience. Balance your efforts to establish credibility—your value as a senior leader rests on your general management abilities, not subject-matter expertise. Treat each direct report differently, but hold all of them to the same standards. Inspirational Leadership and Vision Credibility of Leadership Style and Skills Credibility of Business Management Experience Gives Freedom for Others to Make Their Own Decisions Treats Direct Reports with Respect and Fairness Committed to Flexibility in Work–Life Balance Talking Points Introduction to This Slide: Your effectiveness at developing your direct reports depends in large part on the nature of your relationships with them. Treat them with respect and fairness, allow some flexibility in work–life balance, and give them room to make and learn from their decisions. The graph on the left of the slide shows the impact that different leader characteristics have on the effectiveness of leader-led development. While most leadership traits so have a positive impact, a leader treating his direct reports with respect and fairness, has a 43% impact on the effectiveness at leader-led development. In sum, if they view you as a credible, visionary, and fair leader, they are more likely to respond to and follow through on your coaching. Also, on the right are some tips for you to start building healthy relationships. Take a moment to review these. Transition to the Next Slide: On the next slide, lets review how you can become a role model for development of your future leaders. Discussion Points: From you own experience, what are some of the things that work well in your relationship with your direct reports? 1 Each bar represents the maximum impact each driver contributes to effectiveness at leader-led development. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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BE A ROLE MODEL FOR DEVELOPMENT Impact on Effectiveness at Leader-Led Development1 Tips 41.6% 41.8% 43.8% 35.8% 40.2% 44.9% Recognize that seniority does not necessarily equate to (continued) success. See the “good” behind feedback—the best senior leaders recognize that they can only improve and succeed by heeding the advice of others. Ask others to hold you accountable for making progress on your own development goals. Ask your direct reports to be role models in their commitment to development as well. Open to New Ideas and Suggestions Actively Seek Out Feedback and Criticism Admit Need for Improvement Approachable to Informal Feedback Curtail Self-Limiting Behaviors Follow Through on Development Goals Talking Points Introduction to This Slide: In addition to fostering healthy relationships with your direct reports, there is nothing more powerful than the example you set by showing your own receptivity to development. It is difficult to be effective at leader-led development if you do not show your commitment to development by being open to feedback, recognizing your strengths and weaknesses, and following though on development goals. Again, the graph on the left of the slide shows the impact that different leader characteristics have on the effectiveness of leader-led development. Leaders who are open to new ideas and suggestions, are approachable to informal feedback, and who follow through on development goal have a positive impact on the effectiveness at leader-led development. Essentially, being a role model for development encourages your direct reports to adopt the same posture and commitment to their development. Also, on the right are some tips for you here. Take a moment to review these. 1 Each bar represents the maximum impact each driver contributes to effectiveness at leader-led development. Source: CLC–Learning and Development research; HR Leadership Council research. Insert Organization Logo Here

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