Effective Leadership at the Top IPAC - September 29th, 2005 Dr. François Ducharme

2 What Makes a Great Executive Leadership Team? Top Team A Skilled, Smart, Strategic Members Highly Analytical Thinkers Solid Leadership Capabilities Performance Results: Outstanding

3 What Makes a Great Executive Leadership Team? Top Team A Skilled, Smart, Strategic Members Highly Analytical Thinkers Solid Leadership Capabilities Performance Results: Outstanding Top Team B Skilled, Smart, Strategic Members Highly Analytical Thinkers Solid Leadership Capabilities Performance Results: Mediocre

4 The Research: A Hay / Harvard Study n Formed a partnership with Richard Hackman of Harvard University* n Gathered data on 60 plus executive teams in 1998 (now, close to 100 organizations) n Created cross-cultural sample of 48 teams * Hackman, J. R. (2002). Leading teams: Setting the stage for great performances. Boston, MA: Harvard Business School Press.

5 The Research: A Hay / Harvard Study n Analyzed intact leadership teams (management and executive) Outstanding vs. typical vs. poor teams n Conducted independent assessment Product quality, organizational performance, team capability, individual capability  Created largest empirical database on Top Executive Teams in the world n Validated through climate survey in their organization

6 Organizational Climate Definitions Unnecessary procedures are minimized New ideas are accepted Authority is delegated People are held accountable Mediocrity is not tolerated Goals are challenging but attainable Flexibility Responsibility Standards Rewards Clarity Team Commitment Feedback reflects performance Rewards differentiate performance Direction, roles and accountabilities are clear People are proud to belong People cooperate and give discretionary effort

7 Climates Created in High Performing Teams Percentile Gap Flexibility Responsibility Standards Rewards Team Commitment ClarityTotal Outstanding

8 Climates Created in High Performing Teams Percentile Gap Flexibility Responsibility Standards Rewards Team Commitment ClarityTotal Typical Outstanding

9 Climates Created in High Performing Teams Percentile Gap Flexibility Responsibility Standards Rewards Team Commitment Clarity Total Poor Typical Outstanding

10 The Results: 5 Key Findings 1.Outstanding leadership teams are real teams 2. Leaders of outstanding teams are not the “superstar” organizational leaders we usually think of 3.Leaders of outstanding teams pull together and manage the conditions necessary for team success

11 The Results: 5 Key Findings 4.Leaders of outstanding teams have unique leadership styles and competencies 5.Members of outstanding leadership teams are not smarter, but they have more “emotional” intelligence

Top Leadership Teams Are Real Teams n Outstanding leadership teams: Have clear, stable boundaries n Complete interdependent tasks collectively: Set enduring mission with jointly accountable goals –Identifying 4 levels of accountability: Prime, Shared, Contributory, Remote Develop and monitor strategy together

13 2- Top Team Leaders Aren’t Necessarily the Superstar Organizational Leaders Leaders of outstanding teams: n Often take a less visible role n Rely less on their own talents, and more on those of others n Create a climate and conditions that foster team success

14 3- Leaders of outstanding teams pull together the conditions necessary for team success Development Direction Structure People Leadership Support Results Conditions Leaders of outstanding teams manage three main conditions for team success.

15 The Conditions for Team Success: Direction The purpose of the team must be n Clear Do we know where we are going? n Challenging Is the goal challenging, but not impossible? n Consequential Is the goal meaningful and engaging to us?

16 The Conditions for Team Success: Structure Well-designed team task n Do we have an interdependent goal? n Are we approaching it strategically? Optimal Composition n Are we the right size? n Do we have the right skill set? Norms n Do we adhere to effective norms of behaviour in conducting our business? n Focus on the goal rather than internal conflict

17 The Conditions for Team Success: People Outstanding Team define competencies required for new team members, such as: n Smart Analytical Thinking, Conceptual Thinking n Driven Achievement Orientation, Initiative, Strategic Orientation, Self-Confidence, Directiveness n Committed to the team Executive Maturity, Impact and Influence, Teamwork, Team Leadership

18 4- Leaders of outstanding teams have unique managerial styles and competencies Exhibit a broader set of managerial styles Rely more on managerial styles that encourage dialogue n Authoritative n Affiliative n Democratic n Coaching Avoid a coercive style that shuts down dialogue

19 The Outstanding Leader’s Managerial Styles 100% CoerciveAuthori- tative AffiliativeDemo- cratic Pace- setting Coaching Outstanding Typical Poor

20 The Outstanding Team Leader’s Competencies Holds people accountable for how they behave n Team Leadership n Integrity n Directiveness Links the team and its purpose to the broader organization n Organizational Commitment n Information Seeking Establishes and prioritizes the team’s actions n Achievement Orientation n Executive Maturity

21 Leaders of Outstanding Teams Hold People Accountable Outstanding Typical Levels of Competency Team Leadership IntegrityDirectiveness Competency

22 Leaders of Outstanding Teams Link to the Organization Levels of Competency Organizational Commitment* Information Seeking Competency Outstanding Typical

23 Leaders of Outstanding Teams Establish and Prioritize Actions Levels of Competency Achievement Orientation Executive Maturity Competency Outstanding Typical

24 5- Leaders of outstanding teams have higher levels of emotional intelligence n More in control of their emotions Better able to handle challenging situations Better able to calm others n More sensitive to others Better able to “read” others Better able to motivate others n More honest and genuine n More capable of developing and managing new relationships Emotional intelligence accounts for more than 85% of what separates outstanding from typical leaders They create emotionally intelligent organizations

25 How the Leader Affects People? There is a ripple effect... Leaders possessing emotional intelligence have high levels of leadership competencies. They also possess a broad repertoire of managerial styles to use. Broad managerial styles impacts directly the work climate of the team (r=0.72). Positive work climate explains 30% of the variance in organizational performance. Why? Positive work climate energizes the subordinate levels to invest their discretionary effort

26 Summary Outstanding executive teams need n The right leader Focuses on the conditions necessary for team success May not be a charismatic superstar n The right–not necessarily the smartest–people High emotional intelligence n To be a real team Definition of the group’s work as interdependent With clear boundaries

Effective Leadership at the Top IPAC - September 29th, 2005 Dr. François Ducharme