Global Leadership Forecast 2011 Delaware SHRM April 10, 2012 The Talent Management Expert

Leadership Development Effectiveness 34% % % 2006 HR

Leadership Quality 37% % % HR

18% Future Bench Strength HR

Leadership Quality Impacts…

Confidence of Future Business Success4% 66% Low Leadership Quality High Leadership Quality

Retention24% 70% Low Leadership Quality High Leadership Quality

Engagement9% 50% Low Leadership Quality High Leadership Quality

The bottom line52% 13% Financial performance 2.8x Customer satisfaction 4.6x Productivity4.7x Quality of services4.4x Low Leadership Quality High Leadership Quality

Passion7% 53% Low Leadership Quality High Leadership Quality

Performance: Top vs. Average 50% better

Time for a (R)evolution!

About the Global Leadership Forecast 1,897 HR Professionals 12,423 Leaders 2,679 Organizations 74 Countries

Enhanced Business Impact Quality of Leadership Enhanced People Outcomes Talent Systems & Practices Leadership Development Management Culture

Development Matters Leadership Development Talent Systems & Practices Management Culture

Effective Development = Quality Leadership13% 62% Low Development Effectiveness High Development Effectiveness

Leadership Development: What works today, may not work tomorrow

Top Five Past Critical Skills 1.Driving & managing change 2.Executing organizational strategy 3.Coaching & developing others 4.Making difficult decisions 5.Improving employee engagement

Top Five Future Critical Skills 1.Driving & managing change 2.Identifying/developing future talent 3.Fostering creativity & innovation 4.Coaching & developing others 5.Executing organizational strategy

Leadership Skill Effectiveness: 50 / 50 Value Proposition

“Our CEO coined how we need to think about innovation. He said, ‘I’d rather be 8 and 2 than 2 and 0 in terms of willingness to try out something new’”.

Innovation Important 95% 90% 89% 72% Budget Increases 80% 82% 73% 49% Up The Value Chain Boston Consulting Group 2010

(R)Evolution Point 1 A Leaders Role in Innovation

Lack of Understanding Stakeholders Aversion to Risk Failure to Execute Innovation ChallengesCulture of Innovation Think Differently Question Assumptions Get Things Done Experiment Team Members Lackluster Ideas The Leader’s Role in Innovation Inspire Curiosity Drive Discipline Leader Challenge Current Perspectives Create Freedom

Formal classroom training Special projects or assignments Coaching from your manager Moving positions Coaching from internal coaches Web-based learning Coaching from external coaches Virtual classroom Effectiveness of Development Methods

Organizations that have effective programs use more methods. 32% HR

(R)Evolution Point 2 Learning: From Event to Journey

10~20~70 FORMAL COACHING ON-THE-JOB

= Assessments, Targeted Personal Development Focus Orientation Kick Off Coaching Formal Learning April-JuneJuly-SeptemberOctober-DecemberJanuary-March Action Learning Ongoing Feedback and Support Core Curriculum 3 Building High-Performing Teams Driving Innovation Supporting Leadership Development 2 days Action Learning Coaching Assessment: 360 and personality Inventories Prework Action Learning Kickoff Development Planning Meetings (DDI Coach, Boss, Mentor) Repeat 360 to Assess Behavior Change Development Planning Meetings (DDI Coach, Boss, Mentor) = Core Curriculum = Action Learning & Ongoing Development Job Growth Experiences Informal Learning, Feedback, and On-the-job Experience = Learning 2.0 components Manager/Sr. Leader Kick- Off Webinar Leader Blog: What leadership means to participant, how they will use new skills Wikis: Tying leadership skills to business outcomes – how do they link together? Discussion Board: Participants seek feedback from BU leaders on ideas, best practices Learning Mash-Up Core Curriculum 1 Challenges of Transitions Mastering EQ Influencing Courage 3 days Core Curriculum 2 Cultivating Networks & Partnerships Making Change Happen Learning through Transitions 3 days

Talent Management Matters Leadership Development Management Culture Talent Systems & Practices

Firing on all cylinders Leadership Succession 77% Performance Management 77% Leadership Selection 79% 22% 42% 31% 30% 33% 31% Programs & learning for mid-level leaders 76% Programs & learning for senior leaders 74% Programs & learning for frontline leaders 68% Future Importance Current Effectiveness HR

Development Can’t Fix Everything Low Arrogance Inquisitive Ambitious Volatile Learning Orientation Results Driven Moderate Risk-taker Letting go Making sound decisions High Customer focus Developing strong teams Executing strategy Building future talent Communicating with impact SelectDevelop

Hiring Failures: 1 in 3 External Internal Success Failure HR

81% Tied to corporate goals 69% Balanced between “whats” and “hows” 56% Discussions provide clear direction for development Performance Management

Succession 18% Rate Bench Strength Strong HR

64 % of leaders made a leadership transition in the past 5 years 26 % of organizations have effective programs to ensure smooth leadership transitions BUT ONLY

(R)evolution Point 3 Get it Right: Identifying Potential

There’s a Difference Performance Potential Readiness How one is performing now in current role One’s likelihood of leadership growth One’s fit with a specific role, job or job family

Leadership Potential 50% 39% 44% 37% Identification of High Potentials Growth of High Potentials HR

Best Practices 88% 87% 60% 48% 46% 43% Organizations with effective talent management systems Organizations with ineffective talent management systems 19% 13% 8% 3% HR

Talent Systems & Practices Culture Matters Leadership Development Management Culture

“Right now, your company has 21st century Internet-enabled business processes, mid-20th-century management processes, all built atop 19th-century management principles.” Gary Hamel

Management Culture Killers Bureaucracy of management processes Values that are not meaningful Influence based on position power Innovation opportunities for select few Decisions are held closely by those in power Rigid structure Power held by those who value status quo Goals only focus on bottom-line growth

Culture Impacts Passion 29% 57% 81% Low effectiveness of management culture Medium effectiveness of management culture High effectiveness of management culture

17% 31% 51% Culture Impacts The bottom line Low effectiveness of management culture Medium effectiveness of management culture High effectiveness of management culture

(R)evolution Point 4 Innovating the Way We Manage

Management Culture Revolutionized Management processes are a competitive advantage Values are shared and meaningful Merit-based influence Innovation opportunities for all Strategic decisions open for discussion Flexible, nimble structure Power held by those who value innovation Goals of growth, sustainability, and social significance

Reflection

Enhanced Business Impact Quality of Leadership Enhanced People Outcomes Talent Systems & Practices Leadership Development Management Culture

68 th Percentile  Leadership Development  Talent Management  Management Culture 35th Percentile  Leadership Development  Talent Management  Management Culture 24 th Percentile  Leadership Development  Talent Management  Management Culture The Bottom Line

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