developing lead talent-

7/29/2019 Developing Lead Talent-

1/67

SHRM FoundationS EFFEctivE

PRacticE GuidElinES SERiES

Developing Leadership

Talent

A guide to succession plAnning And

leAdership development


2/67

by Davd V. Day, P.D.

A guiDe to succession

PlAnning AnD leADershiP

DeVeloPment

SHRM FoundationS EFFEctivE PRacticE GuidElinES SERiES

deepg leershp

te


3/67

This publication is designed to provide accurate and authoritative inormation regarding the subject matter covered. Neither the pub-

lisher nor the author is engaged in rendering legal or other proessional service. I legal advice or other expert assistance is required,

the services o a competent, licensed proessional should be sought. Any ederal and state laws discussed in this book are subject to

requent revision and interpretation by amendments or judicial revisions that may signifcantly aect employer or employee rights and

obligations. Readers are encouraged to seek legal counsel regarding specifc policies and practices in their organizations.

This book is published by the SHRM Foundation, an afliate o the Society or Human Resource Management (SHRM). The

interpretations, conclusions and recommendations in this book are those o the author and do not necessarily represent those o the

SHRM Foundation.

2007 SHRM Foundation. All rights reserved. Printed in the United States o America.

This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any orm or by any means,

electronic, mechanical, photocopying, recording or otherwise, without the prior written permission o the SHRM Foundation, 1800

Duke Street, Alexandria, VA 22314.

The SHRM Foundation is the 501(c)3 nonproft afliate o the Society or Human Resource Management (SHRM). The SHRM

Foundation maximizes the impact o the HR proession on organizational decision-making and perormance by promoting innova-

tion, education, research and the use o research-based knowledge. The Foundation is governed by a volunteer board o directors,

comprising distinguished HR academic and practice leaders. Contributions to the SHRM Foundation are tax deductible. Visit the

Foundation online at www.shrm.org/oundation.

For more inormation, contact the SHRM Foundation at (703) 535-6020

talEnt

dEvEloPinG


4/67

Foreword

ii Acknowledments

ix Abot the Athor

1 Deelopin Leadership Talent

3 Bsiness Case or Sccession Planninand Leadership Deelopment

6 Sccession Manaement, Not Jst

Plannin

18 Leadership Deelopment

23 Deelopmental Practic es

31 Conclsion

33 Reerences

37 Sorces and Sested Readins

ces

tbe f


5/67


6/67

Dear Colleague:

As a busy human resource proessional, you probably nd it dicultto keep up with the latest academic research in the eld. Yet knowing

which HR practices have been shown by research to be eective can

help you in your role as an HR proessional.

Thats why the SHRM Foundation created the Eective Practice

Guidelinesseries. These reports distill the latest research ndings and

expert opinion into specic advice on how to conduct eective HR

practice. Written in a concise, easy-to-read style, these publications

provide practical inormation to help you do your job better.

The Eective Practice Guidelineswere created in 2004. The SHRM

Foundation publishes new reports annually on dierent HR topics.Past reports, available online at www.shrm.org/oundation, include

Perormance Management, Selection Assessment Methods, Employee

Engagement and Commitmentand Implementing Total Rewards

Strategies. You are now reading the th report in the series,

Developing Leadership Talent.

For each report, a subject matter expert with both research and

practitioner experience is chosen to be the author. Ater the initial

drat is written, the report is reviewed by a panel o academics and

practitioners to ensure that the material is comprehensive and meets the

needs o HR practitioners. An annotated bibliography is included with

each report as a convenient reerence tool. This process ensures that the

advice you receive in these reports is not only useul but also based on

solid academic research.

Our goal with this series is to present relevant research-based knowledge

in an easy-to-use ormat. Our vision or the SHRM Foundation is to

maximize the impact o the HR proession on organizational decision-

making and perormance, by promoting innovation, education, research

and the use o research-based knowledge.

We are condent that the Eective Practice Guidelinesseries takes us one

step closer to making that vision a reality.Frederick P. Morgeson, Ph.D.

Chair, Research Applications Committee

Proessor o Management

Michigan State University

Fwd


7/67


8/67

v

Content editor

Frederick P. Morgeson, Ph.D.


Eli Broad College o Business

Michigan State University

Ackwldts

ProjeCt Manager

Beth M. McFarland, CAE

Manager, Special Projects

SHRM Foundation

Major unding or the Eective

Practice Guidelinesseries is

provided by the Human Resource

Certication Institute (HRCI) and

the Society or Human Resource

Management (SHRM).

reviewers

Berrin Erdogan, Ph.D.

Assistant Proessor o Management

School o Business Administration

Portland State University

Mark Fogel

Corporate Vice President, HR andCustomer Care

Leviton Manuacturing Co., Inc.

Robert J. Greene, Ph.D., SPHR,

CCP, CBP, GRP, GPHR

Chie Executive Ocer

Reward $ystems, Inc.

Elinor K. Hite

Strategic Director, Human

Resources & OrganizationalDevelopment

YMCA o the USA

Robert C. Liden, Ph.D.


University o Illinois at Chicago

Daphne Logan

Vice President, Human Resources

Americas Second Harvest

The SHRM Foundation is grateul or the assistance o the ollowing individualsin producing this report:


9/67


10/67

Abt t At

DavdV. Da

David V. Day is Proessor o Organisational Behaviour in the Lee Kong

Chian School o Business, Singapore Management University. He has

also held positions as Adjunct Research Scientist or the Center or

Creative Leadership and Senior Research Fellow or the U.S. Army

Research Institute Consortium o Research Fellows.

Dr. Day has published more than 50 journal articles and book chapters,

many pertaining to the core topics o leadership and leadership

development. His research has been published in theJournal o Applied

Psychology, Personnel Psychology, Academy o Management Journal,

Journal o Managementand Leadership Quarterly, among other

journals. Dr. Day serves on the editorial boards oHuman Perormance,

Journal o Applied Psychology, Journal o Managementand Personnel

Psychologyand also serves as Associate Editor oLeadership Quarterly

and Human Resource Management Review.

He is a Fellow o the American Psychological Association and the

Society or Industrial and Organizational Psychology. Dr. Day maintains

membership in the Academy o Management, Asia Academy o

Management, Southern Management Association and the International

Association o Applied Psychology.

Dr. Day is the lead editor on the bookLeader Development or

Transorming Organizations: Growing Leaders or Tomorrow(Lawrence

Erlbaum Associates, 2004) and the orthcoming bookAn Integrative

Theory o Leader Development: Connecting Adult Development, Identity

and Expertise(Psychology Press, 2008). He served as a civilian

member o the U.S. Army Training and Leader Development Panels

recommending uture directions or ocer, non-commissioned ocer

and Army civilian training and development. Dr. Day received his Ph.D.

in industrial and organizational psychology rom the University o

Akron in 1989.


11/67

x

Eective succession planning involves more than just a replacement

planning process. It also includes a comprehensive employee

development system.


12/67

An advertising campaign a ew years ago promised no surprises in a hotelchains hospitality services. That is a motto that most HR proessionals

would embrace. Unortunately, surprises are inevitable. When a key employee

announces that she is leaving the organization, eective immediately, it could

be one o those nasty surprises that create incredible turmoil. Not only was this

person anointed as high potential (i.e., having the potential to be developed

or a senior leadership role) and slotted or a more responsible upper-level

position, her departure can create a domino-like eect that leaves leadership

gaps all along that succession line. Despite the inevitability o surprises, what

matters most is how the HR unction is prepared to respond in such occasions.

The oundation or coping successully with stang surprises is succession

planning. Organizational survival in a globally competitive environment depends

in part on having identied and developed replacements (i.e., successors) or key

positions.[1] This is the essence o succession planning. A more ormal denition

o succession planning is the process o identiying one or more successors or

key positions and preparing them or expanded organizational responsibilities

through job assignments and other developmental activities.[2] The part o this

denition regarding preparing individuals or expanded responsibilities overlaps

with what is typically considered as leadership developmentbroadening the

capacity o an individual to be eective in leadership roles and processes.[3]

When an event such as a surprise resignation occurs, it is impossible to jumpstart

a dormant succession system. This is because eective succession planning

involves more than just a replacement planning process. It also includes a

comprehensive employee development system.[4] When a sudden leadership void

is experienced, it makes no sense to then start the development process. It is too

late, because proper development can take months or even years. For this and

other reasons, succession planning and leadership development initiatives must

be linked in explicit and coherent ways to best manage the leadership talent o

an organization.

Now consider what happens in the event o a surprise resignation when there

is an integrated succession management initiative in place. In such cases, the

loss o any one individual is not so traumatic to the organization because o

a greater overall capacity or leadership. There is the capability to ulll the

job responsibilities o the person who is leaving through existing employees,

at least temporarily. There is not one person but any number who can step inand assume part or all o the open job responsibilities until a successor can be

appointed either rom the inside or as an external hire. An implication o this

deep leadership capacity is that no one is irreplaceable. Indeed, the greater the

number o irreplaceable employees in an organization the more at risk that

organization is to turnover trauma.

Dvlp Ladsp Talt

Dvp ladp ta


13/67

Death o the Irreplaceable CEO

Successorprovides an example

o an organization that pinned

its succession hopes on one very

talented individual only to have

tragedy strike. Surprises do not only

happen when the CEO or other

key employees suddenly quit or

retire. As the case illustrates, there

are dangers o designating only one

possible successor to a key position,

regardless o its level.

Leadership bench strength, the

leadership pipeline and leadershipcapacity are popular metaphors or

the underlying issue o ensuring

that an organizations leadership

is adequately developed to ace

current and uture challenges.

Regardless o the term that is

used, the particular concept

emphasizes that leadership is not

centralized in a single or small

number o individuals. It begins

with the belie or organizational

norm that leadership is everyones

business. Why? Because the kinds o

challenges aced in todays globally

competitive environment are way

too complex or any individual

to gure out alone. In order to

survive and thrive, successul

organizations must be keenly aware

o their leadership talent and how

to best develop it across all levels.

Succession planning and leadership

development are key processesin assessing and developing an

organizations leadership talent.[6]

Dvp ladp ta

Death o the IrreplaceableCEO Sccessor

o: Kz iaald

Kz pa o&oy xy w pp mx,madv, ma ad a.

Hq: Baaa

F: 993 a s iaah, ld.

2005 : $745.7

ec chm f:

sa s Kz (a 7)

Hpc cc: hwadB Kz (a 4, )

t adp ad bpad ad vy wa kd Kz iaa. ta ad badaa/d ad appd ppa ad ad B b . t dKz wa pa a .

tady k w B wakd a p a w

vy a w xy Da rpb ob , 006. sya B da, Kzvd wd a a ppa a ad sap,w wa b apd byB, ad b jd by sap v. t wa

a va pj pay, ad ddy vad. op a, pay wa aaad w a da w wdd d. iad a4-ya-d ceo w ad bay dvpd jb vay ya, pay wd bd by s Kz ad Pa on(a 6), w wa axd p adpvd by B da.

wh h c :

t pa pb va dvp a a wadad dvp abad apay adp a dp adp pp.

t aby jpa a

da av p w a .

s p a d dd dpa b ceo ( a).Wy dd ak bvq adva: Wawd app B dd?Wd dad apa av pd paa vaa?

sc:The Wall Street Journal[5]


14/67

Beore joining Goldman Sachs, Steve Kerr was a prominent gure running GEs

legendary Management Development Institute at Crotonvillethe worlds

rst major corporate universityduring Jack Welshs tenure. Kerr argues that

intensive employee development is a huge competitive advantage in terms o

recruitment as well as retention, in addition to building the leadership capacity

needed to stay competitive in todays business environment. Regardless o

industry sector, there are several overarching and interrelated reasons why

succession planning and leadership development are crucial concerns.

Speed of changeis increasing, and the type of changethat organizations

experience is likely to be radical and discontinuous. This argues or greater

shared leadership in organizations. Shared leadership supports more eective

change management in terms o both sensing needed organizational changes

and building momentum or change more quickly than relying on a single

change leader.[7]

Complexity in the challengesaced by organizations across most industry sectors

is increasing exponentially. This has resulted in the heightened eeling o vu

jade (as compared with dj vu)I have never been here beore, I have no

idea what is happening, and I dont know who can help me.[8] Such complexity

typically exceeds the capacity o any single leader to make sense o and developworkable solutions.

Task migrationoccurs whereby traditionally higher-level leadership

responsibilities are transerred to leaders at lower levels. This is partly a unction

o the trend toward redesigning fatter organizations in which greater leadership

gaps become apparent, but it is also due to greater speed and complexities o

challenges. What was typically handled by senior leaders in the past has been

handed down to junior leaders so the ormer can ocus on even more complex

issues.

Bsss Cas f Sccss Pla adLadsp Dvlpt

The rate o change is not going to slow down anytime soon. I anything, competition in most industries will probably

speed up even more in the next ew decades.

John P. KoTTer

AuThor, LeADing ChAnge

Its very odd to me. The assets walk home at night. I people are your most important asset, you ought to develop

them. Its Goldmans philosophy that not only do people have to be developed, it ends up being a huge competitive

advantage.

STeVe Kerr,

ChieF LeArning oFFiCer,

goLDmAn SAChS

Dvp ladp ta


15/67

Every managerial

employee should

have an individual

development

plan and be held

accountable or

making progress on

it every year.

4

Recruitment and retentionare

tied to issues associated with

whether employees eel that their

proessional potential is being

developed and used in the best

possible way. Having opportunities

across the organizational spectrum

to participate in leadership

development eorts is something

that can provide an incentive to join

and remain with an organization.

Major Reasons Wh Sccession

Plannin and Leadership

Deelopment Are Important

rapd, ada ad da

iay px a

ga adp pbya w v

r ad b a

These actors are the primary

drivers behind the need or eective

succession planning and leadership

development, but there are

potentially many others that could

be included. Rather than providing

an exhaustive list to try to justiy the

business case or development, itmight be more persuasive to imagine

the uture o your organization

i you did not engage at all in


development. What would be the

odds o long-term survival and

success? The ultimate sin is to do

nothing; however, there are dicult

challenges associated with designing

and implementing an integrated


development system. What ollows

is an overview o the key criteria o

an eective system and some o the

most pressing challenges associated

with each actor.

KEy ASPECTS OF AN

EFFECTIvE SuCCESSION

MANAgEMENT SySTEM

Formal:A ormal process is

one in which the key pieces arestandardized throughout an

organization. An inormal process

occurs in an unplanned and ad-

hoc manner. There is a risk o

succumbing to inormal, ad-hoc

development approaches that place

the entire burden or development

onto the individual employee. While

it is important or employees to

accept nal responsibility or their

development as leaders, without a

ormal process that links experiences

with expected developmental

outcomes, there is no oversight in

terms o what is being developed

and when. The use o inormal

succession planning processes also

risks wasting time and money in

terms o potentially developing the

wrong things in the wrong people.

Inormal oten means reactive and

opportunistic. Formal systems

require organizational disciplineto design, implement and sustain.

The result can be instrumental in

buering an organization rom

succession surprises, and it can be

a source or competitive advantage

in other ways (e.g., recruitment,

adaptability).


16/67

Dvp ladp ta

Systemic:An overall systems-

wide perspective on leadership

development helps to build a

broader leadership capacity and a

deeper pipeline o leaders. The ocus

is not just on those at the top but

includes most or all management

levels. There is a related tendency

to ocus attention on high-potential

employees. This makes sense in

terms o potentially maximizing the

return on investment (ROI) rom

developmental eorts. On the other

hand, an unintended consequence

is that it allows a signicant part

o the organization to atrophy. Bill

Drath rom the Center or Creative

Leadership has made the point that

leadership development eorts

too oten are like ocusing on the

whitecaps in the ocean and entirely

missing the unseen orce o the deep

blue sea.[9]

Systematic:The most eective


development initiatives are

connected across levels into a

coherent whole. There is a roadmap

or development such that the

skills, competencies, attitudes and

perspectives that are developed

at one level are built upon at a

higher level. By being systematic,

the development initiative builds

explicit linkages across leadership

levels. Succession planning also

incorporates diagnostic toolsand methods or assessing the

developmental readiness o

employees or particular experiences.

Tailored:Overly generic leadership

development initiatives lose

sight o the universal importance

o individual dierences in

developmental readiness. People

dier in the extent that they are

ready or developmental stretch

assignments that are at the core o

many o the most eective leadership

development initiatives. When it

comes to succession management,

Jack Welch was probably the best

known CEO-champion o tailored

succession management. His Chie

Learning Ocer at the time (Steve

Kerr) claimed that Welch knows

intimately the career paths o

more than a thousand employees

in GE and would spend ully one

quarter o his time on the GE

succession planning process known

as Session C.[10] This level o CEO

involvement in succession planning

is extraordinary and probably

unlikely in most other organizations.

At minimum, however, everymanagerial employee should have

an individual development plan and

be held accountable or making

progress on it every year.

Experientially based:Leadership

development is not a discrete event.

Rather, it is a signicant part o

ongoing work-related experience.

Research shows that executives

nd learning rom work-related

experience to be a more powerulorce or their development as

compared with classroom-based

learning.[11] State-o-the-practice

development ocuses on helping

leaders learn and develop rom

their work experiences rather than

taking them away rom their work to

develop.

This section has provided a general

overview and introduction to

some o the issues and challenges

associated with succession planning

and leadership development. The

next section will delve into the area

o succession management in more

detail beore turning attention to

leadership development and a nal

section on general conclusions andguidelines.


17/67

Sccss maat, nt Jst Pla

Dierent succession processes can be placed on a continuum ranging rom

relatively simplistic and bounded to relatively complex and comprehensive.[13]At the most simplistic end o the continuum, replacement planningdenotes

a minimal succession approach in which successors (i.e., replacements) are

identied at the top two or three managerial levels, but there is little or no

development o those successors other than ad-hoc on-the-job experience. The

ocus is on orecasting, with no attention to development issues. Succession

planningalls near the middle o this continuum o succession processes. It is

more systematic and extensive than replacement planning because it is linked

with intentional development initiatives targeted at successors; however, it is

mainly or the top two or three management levels, like replacement planning.

Succession managementanchors the most comprehensive end o this continuum

in that it identies successors (replacement planning), develops them (succession

planning) and is also directed at all managerial levels. The overarching goal o

succession management is to have a pool or pipeline o prepared leadersand

not just a list o prospective candidatesacross all organizational levels to ll

vacancies in key positions when needed.

Succession planning cannot take place in a vacuum. It should also be an intensive, comprehensive initiative, muchmore than a preparation o a list o names that will be tabled i the CEO is hit by a bus. Similarly, succession plans will

not increase the productivity growth rate o the frm i they are designed only to allow the internal auditor to tick the

box: succession plan in place.

PAuL CAnTor,

Former ChAirmAn,

ruSSeLL reynoLDS ASSoCiATeS CAnADA[12]

Continm o Sccession Processes

Replacement Plannin Sccession Plannin Sccession Manaemeidy idy idy

Dvp Dvp

id a aza v

BASIC COMPREHENSIvE

6 Dvp ladp ta


18/67

A well-designed and rigorously

implemented strategic management

process is mission critical to

achieving organizational goals.[14]

Consider data rom the Bureau

o Labor Statistics (www.bls.gov)

indicating that 32 million workers

are over the age o 50 and that

ully 40 percent o workers will be

retirement-eligible in the next ve

years in the elds o health care,

manuacturing and government

services. Couple these data with

estimates that approximately

two-thirds o external senior

management hires ail within the

rst 18 months on the job. Taken

together, these acts point to an

aging and mobile workorce where

successul perormance at higher

levels cannot be assumed.

Succession management helps

to provide continuity in the

leadership pipeline and to develop

a deeper capacity or leadership and

perormance. But to implement an

integrated and eective succession

management process there rst

needs to be an explicit link drawn

between what the organization

values as talent and the core

strategies o that organization.

Ater this has been accomplished

(which is no mean eat), an honest

and thorough evaluation o the

organizations talent pool and

developmental needs is conducted.

Although it might be tempting

to jump right into a succession

management process, there are

key questions that rst need to

be answered.[15] Without some

shared understanding o what

these questions mean to your

organization, there is little sense in

trying to implement a succession

management system. Inormed

answers to these questions orm the

oundation o the organizational

context in which the succession

management system resides. I

the answers to these questions

are ambiguous, contentious or

otherwise open concerns, then there

is no internal compass or the system

and it will likely ail.

Ke Qestions Impactin the Desin o yor Sccession

Manaement Sstem

Wa a ky pa-ap?

Wa a -papy?

Wa a ap xpay jb pa?

hw d aza kyp?

Wa pa p pd b d w aza?

Wa pa ky pd av a a dd?

hw d -pa pyb ppad adva?

hw dab a aaa dad?

Wa a pv pb py a p ppa pa py ad d?

hw pa a dvdapy a a ad b aa

hw p ad apa hr b a wdvda w a dd a-pa ad dad?

Dvp ladp ta


19/67

Dvp ladp ta

EFFECTIvE SuCCESSION MANAgEMENT SySTEMS

This section outlines the approaches o two successul organizations to thesuccession management process (Dow Chemical and SmithKline Beechum) and

also provides an example o a commonly used tool in assessing the talent pool o

an organization (see Figure 2). An important point to note about this process

is that the evaluation o high-potential employees ultimately is a subjective

process based on the expert opinions o those who serve in supervisory roles.

It is also oten hashed out in discussions among a small group o managers.

The quality and the honesty o these discussions are critical or a successul

talent identication process. I the conversations about employees potential are

supercial and vacuous, then the entire succession management process is at

risk. A climate o honesty, trust and transparency is an important actor in the

systems ultimate success.

Additional readin:

c, J. A., & F, r. m. (003, Db). Dvp y adppp. Harvard Business Review, 81, 56-64.

Sorce: sv rb, P.D., s hr ladta maa, Dwca cpay

Sccession Manaement

Process at Dow Chemical

Compan

Step 1: h-v vw a pp by ceo ad d p (yay).

Step 2: rvw a b ad a aa

wa w apab w bdd dv ay aday w pa-a aw b dd.

Step 3: rvw p 00 ad n-Bx pa/pa d ( F ).

Step 4: Dvp add pa - ad d-k pa-a a x w ad a

apad .

Step 5: Dvpa pa ppa.

Featres o the Dow sccession

manaement process:

Dw ppy: rpapa ad a , b a va p aza dvp py b ppa jb a Dw.

Dw a dp pp y-vpa d v.

Appxay 5 p pa/aaapy ppa dda pa -paad ad aaddvp a hb hyDw Aady (wd by v- a-a pj),

xa xv da a mBA.


20/67

Hih Potential/Low Perormance

Dad pa adva b paxpa

nd a adv: W jb w b?

Hih Potential/Medim Perormance

Dad paad y pa xpa

Vad a w dadda a, wad, ppy dvp

Hih Potential/Hih Perormance

h pa adp p way away xdpa xpa

sa a w d bad aaddvp pp

Medim Potential/Low Perormance

P pa v aa v w aa b pydp

cd a v a

Medim Potential/Medim Perormance

P pa v aa v wa a; py b xdpa xpa

Kp b d addava, aa addawad

Medim Potential/Hih Perormance

P pa v aa v w ap a; away ad ay xdxpa

s b wd av addadvpa a w ad pby pvpa

Low Potential/Low Perormance

ha ad a paad dv

c a

Low Potential/Medim Perormance

spazd a a a ad a

pa b y paxpa

mva ad

Low Potential/Hih Perormance

spazd a a a ad a

pa b yxd paxpa

Vaab dvp; a ad wad

Fire 2: Nine-Box Sccession Plannin grid

P

O

T

E

N

T

I

A

L

P E R F O R M A N C E

Dvp ladp ta


21/67

0 Dvp ladp ta

Leadership Plannin Process at

SmithKline Beecham

Backrond: sK B (sKB) wad 99 a sKBka (Padpa, PA) ad t Bgp (ld). n ad vy w-dvpd y pd a dvp pa.

Objectie: Dvp a , ab adadadzd adp pa p ap- v. i wa bvd a a p a wd p bd a d

ad a wk a ad a ad b daad by .

Plan: t hr a wa akd by aa 993 dvp adppa av a d b pda aza: (a) pa p; (b) xv dvpp; ad () adp py d( ladp cp bx). A paa a w d ay, ba appa a w ad

a. A a , a a ad wk a a w a leadership planning. hr pp a b w vvd, d paaa b, v--pd b, pa, ep adaa. i add, wa a advybad aa.

Ke Learnin Points:

mak p wd ad dv: l aa bad ad vvd .

sa a ad p b a.

ta aa b p pd.

rz a w b a p ad a .

e ay adva.

lk pa d d ad v

ceo ad aa a.Reslts: t ladp Pa Pa b y dd ad pd a way a sKB d ad pp dvp aa.

Pv dvpa pa wa, ad pa wad a a, p xv.t p a ad dvp d ad pa a ap aa w sKB.

By 999, a ,500 pypapad ladp adDvpa rvw p ad v 30p d w d. o ava, ap dd 35-40 aa, aaappxay 5 d pp.

gp d aw sKB ay aka vy aa a.

s: maz, l., & Aba, J. (999).

sK B. i D. gb, l. ca & m.gd (ed.), Linkage Inc.s best practicesin leadership development handbook(pp. 397-44). lx, mA: lka P.


22/67

SKB CORE vALuE LEADERSHIP COMPETENCIES

Innoation

tk aay

iva cap a

Cstomer

ipv y ad p c qay F d

Interit

lad ay F p a A w y

Perormance

eab pa maa x if Dv

People

F a ad awk rwad ad ba awk Aa ad dvp a Bd ap

Personal Eectieness

u d jd cvy a Adap ad dvp Kw aza ad b

Figure 3 distills some o the basic points in this section and provides a general roadmap to managing the succession

management process.

The 21 SmithKline Beecham Leadership Competencies [16]

goal: goal: goal:

udad x idy p ad a Ppa ad dvp a

Ke Qestions: Ke Steps: Ke Processes:

hw d ky p? e p aa pp A

hw d pa? idy ky p by /aa ca

Wa xpay pa? rvw a (n-Bx d) spp

hw ky p? Dvp pa by p

mak by ky p? D dvpa pa

sp dd pa?

hw ppa ?

hr ad pb?

cd dvda a a?

lv y apay?

PREPARATION PLANNINg DEvELOPMENT

Fire 3: The Sccession Manaement Process

Dvp ladp ta


23/67

Dvp ladp ta

Although many o the issues

associated with succession

management apply to small as well as

large organizations (e.g., identiying

key positions, identiying successors),

there are some unique challenges

and opportunities in small- and

medium-sized organizations when it

comes to succession management.

suCCession ManageMent

in sMall- and MediuM-sized

enterPrises (sMe)

The majority o organizations donot have the size and resources o

Dow or SmithKline Beechum when

it comes to succession management.

There are distinct opportunities and

challenges associated with succession

management in SMEs. Some o the

opportunities include the ollowing:

(a) the smaller number o employees

allows or more personalized and

tailored development plans; (b)

there is a greater likelihood o

designing an integrated initiative

across levels; and (c) a ormal

succession management system

could be a orce multiplier when it

comes to recruitment and retention

as compared with the competition.

Specic challenges or SMEs include

(a) ewer available resources to

devote to succession management;

(b) less in-house sta with the

expertise to develop and manage an

integrated succession managementinitiative; and (c) resistance rom

amily owners to open succession

lines to non-amily members.

Research conducted by the Canadian

Federation o Independent Business

indicated that only 10 percent

o SME owners have a ormal

succession plan, 38 percent have

some sort o inormal (unwritten)

plan and more than hal do not

have any succession plan at all.[17]

For this reason, it is dicult to

identiy best practices in succession

management or SMEsthere

are too ew rms that engage in

a ormal succession management

processes and those that do are

not orthcoming in the literature

about what is done. Indeed, a recent

review o the available literature on

the topic urged SMEs to devote

greater resources and attention to

ormal succession planning as a way

to promote long-term survival and

prosperity.[18]

As urther evidence o this

knowledge gap, a recent review o

what is known about managing

HR in small organizations was

completely silent on the topic o

succession management.[19] The

report did note that program costs

and time spent away rom the job

are important considerations or

deciding what opportunities to oer

employees in terms o training and

development. The sources or ormal

training and development are also

more restricted with SMEs, which is

another reason inormal practices are

more likely in small organizations

than ormal practices.

That does not mean that SMEs

should be complacent with using

inormal succession managementpractices. There are distinct

advantages associated with ormal

succession management in terms

o being able to handle unexpected

stang surprises, especially

regarding sudden turnover in

key positions. It does not take

much in the orm o expertise or

other resources to identiy the key

positions in an organization and to

nominate one (or preerably more)

possible successors. It is potentially

trickier to provide the kinds o

developmental experiences needed

to prepare potential successors or

more responsible positions. That

is why bringing in an external

consultant or advice on leadership

development might be the best call

or many SMEs. Remember, it is

an investment in your talent and

in the uture o your organization.

Scrimping on the talent development

part o succession management

might save a ew dollars in the short-

term, but it puts the organization at

risk or long-term ailure.

Sccession Manaement in SMEs:

Opportnities and Challenes

Ch

- F c

cc mm

- F ff h p

p m f-

m cc mm

m

- rc fm c fm

p -fm

cc

opp

- P mp pm p

- g h f -

m h ch

c

- Fm cc m-

m fc mp f

cm


24/67

Dvp ladp ta

researCH on suCCession

ManageMent

There is not a lot o scholarly

research on the topic o succession,

with the exception o CEO

succession (see suggested readings

at the end o this report). However,

recent descriptive research examines

the prevalence o succession

planning in organizations as well as

HRs role in the succession planning

process. [20] There is good news

and bad news rom these ndings.

In terms o prevalence, the goodnews is that more than hal o the

survey respondents (58 percent)

indicated that they had some kind o

a succession plan in place. The bad

news is that this percentage was split

equally (29 percent each) between

those with a ormal and those with

an inormal succession plan, with

smaller organizations indicating

that their processes were more likely

to be inormal rather than ormal.

This is bad news because the reportndings also document that in

comparisons across organizations

with ormal and inormal succession

plans, those with ormal plans were

more likely to:

Identiy employees who could

potentially ll uture vacancies in

leadership positions.

Consider the organizations

long-term objectives and goals.

Identiy prospective vacancies in

leadership positions.

Identiy potential succession

gaps.

Integrate succession planning

with the organizations strategic

planning process.

Emphasize diversity in the

workplace.

Include a specic ocus on the

succession o women candidates.

Update employees on the steps

the organization plans to use in

the succession planning process.

There are three noteworthy

implications rom these specic

ndings. Those organizations with

ormal succession planning are more

likely than those with inormal

planning to (1) be more proactivein identiying and developing their

leadership talent; (2) be more

attuned to diversity issues; and (3)

have a more transparent succession

planning process.

Another notable nding rom the

survey results is the time rame

or the uture skills considered in

succession plans. O those reporting

having either a ormal or an inormal

plan in place, 84 percent consideredskills that would be needed one year

in advance, 76 percent considered

skills that would be needed two

years in advance, and 62 percent

considered skills what would be

needed three years in advance. But

this percentage drops to under hal

or projecting our (47 percent) and

ve (44 percent) years in advance

and plummets to 14 percent when

the time rame is six years out.

leadersHiP CoMPetenCies

A pessimistic interpretation o these

results would be that organizations

are taking a relatively short-term

orientation in projecting their

uture employee skills needs;

however, it may be that it is just

too dicult to project uture skills

needs more than three years in

advance. The workplace is changing

quickly and in unpredictable ways.

I this is the case, then there are

important implications or leadership

competency modelstypically, a

ormal ramework endorsed by an

organization that summarizes the

important leadership attributes

to be used in selection, training

and development. Is it worth

the investment in developing a

competency model i there is a good

chance that the kinds o knowledge,

skills and abilities that support those

competencies cannot be reliably

predicted much into the uture?

This is a highly charged issue that

unortunately goes beyond the scope

o this report. Suce to say that

the HR eld is split as to whether

leadership competency models are

a worthwhile contribution to the

succession management process in

particular or to the organization as a

whole more generally.

The questions at the core o leader-

ship competency controversy[21]

include:

Can a single set o competencies

describe all eective leaders?

Does having more o each

characteristic make a person a

better leader or is there a point

o diminishing returns?

Can organizations accuratelypredict what leader competencies

will be needed in the uture?

What is the evidence that HR

systems that are based on

competencies work eectively?


25/67

At present, there are no agreed-

upon answers to these important

questions. HR proessionals are

encouraged to careully evaluate the

potential pros and cons o leadership

competency models and avoid

blindly jumping on the competency

bandwagon.

As the box Not All Competencies

Are Leadership Competencies

illustrates, there are other

competencies in addition to

leadership competencies. This is

an important distinction in termso succession management and

workorce development. Some

knowledge and skills that are gained

through training or experience are

more appropriate or addressing

the technical challenges that

organizations ace. These are the

kinds o problems that can be solved

by experts or senior authorities in

a given eld. On the other hand,

adaptive challenges are those issues

that come without easy answers.

The solutions to adaptive challenges

lie not in technical answers but with

the people themselves.[22] Leadership

is inherently about people, which

is why adaptive challenges require

the application o highly developed

leaders. It also helps to explain why

the most sophisticated technical

experts may not make the best

leaders in a given setting. In terms

o succession management, high-potential employees have both

strong technical skills as well as

the potential to develop a strong

leadership competence.

obstaCles to eFFeCtive

suCCession ManageMent

Ultimately, an investment in

succession management is an

investment in individual and

organizational learning. But like

many things, this is easier said than

done. There are many potential

actors that can derail a succession

management process. Here is a brie

list and discussion o some o the

most likely culprits:

Event-based or episodic thinking:

This one plagues succession

planning as well as leadership

development. Both are ongoing

processes, yet the conventional

thinking is that they are addressed

episodically. Succession planning

typically is conducted only once a

year, and leadership development

is treated as a series o loosely

coupled events or episodes,usually in the orm o programs.

Some o the most potent orms o

development are embedded in the

actual work (e.g., action learning,

job assignments). It is a mistake

to try to completely de-couple

development rom work.

No strategy or development: What

is the organizations philosophy

o leadership and development?

These are key concerns in terms

o presenting and dening the

concepts and principles that

will serve as the pillars o the

conceptual ramework or the

initiative.

i

aa, -

pa py

av b

a k a

w a pa

dvp a

adp

p.

4


26/67

Dvp ladp ta

Assuming it is solely a sta

unction: In many cases, the

HR unction has the primary

responsibility or succession

management. A common mistake

and typical obstacle to eective

implementation is ailing to

engage line management rom the

outset.

Over-embedding the initiative

in a single champion: Having a

champion, especially at top levels,

is an important driver or success;

however, i the initiative becomestoo heavily associated with any

one personno matter how

high-rankingthis could lead to

ollow-through problems i that

champion derails or leaves the

organization.

Not connecting with strategic

business imperatives: Development

or developments sake might be

a generally good thing; however,

it is not helpul or long-term

support. It is easy to lose sight

o what specically needs to

be developed and why. I the

target o development activities

is supposed to be leadership

competencies, then there should

be a visible and widely agreed

upon competency model that is

grounded in the organizations

strategic business plan. But

there is some risk associated

with leadership competency

models because they require

organizations to be able to

accurately predict the uture.

Under-emphasizing personal

accountability: The ultimate

responsibility or development

rests with the individual leader.

Only so much can be done

in any development program

or initiative. There should be

personal accountability and

ollow-up so that learning and

development become intentional

processes that occur in a

continuous and ongoing manner.

I there is a personal development

plan in place (and there should

be), keeping to that plan must

be the primary responsibility o

the leader with support rom the

organization.

Lack o t with organizational

culture: Trying to implement

a ormal system with a lot opreparation and paperwork in

an inormal culture would likely

be met with resistance, i not

outright hostility. Introducing

an inormal system into a

highly structured and ormal

organization may result in

the initiative not being taken

seriously. There should be some

degree o t between succession

management ormality and the

organizations culture; however, it

should be noted that a succession

management system can be

used as part o a comprehensive

organizational change initiative

to move the culture rom ormal

to inormal or rom inormal to

ormal.[23]

Not All Competencies Are

Leadership Competencies

r ryd Aa, a baxv a , dbw bad py b dy ad dadda a a ky a py aa:

Indstr-Related Competencies(Industry expertise)

idy kwd

c

gba ppv

Implementation Competencies

(How things get done)

Fxby ad adapaby

ca k

r a

Leadership Competencies

(Setting overall direction andenhancing development)

sa ay (d v)

iy ad

Dvp bda

Sorce: ca (005).


27/67

6 Dvp ladp ta

Lack o adequate support or

development: Support in the

orm o resources as well

as positive reinorcement is

absolutely necessary or individual

development. Without support,

eorts directed at assessment

and challenge become exercises

in utility. As noted previously,

one o the biggest wastes o

development investments

involves sending individuals or

leadership development and then

not supporting their personal

changes in thinking and behaving

when they return to the job. It is

elementary: Sending a changed

person back to an unsupportive

environment is highly unlikely

to accomplish much o anything

except heightened eelings o

rustration and discouragement.

Improving the Succession

Management Process provides

a very general assessment o your

current succession management

practices. Ater assessing your

organizations current system,

use the recommendations on the

checklist to make improvements.

Succession planning and succession

managementas compared with

replacement planninginvolve

developing employees or more

responsible uture assignments.

There are many ways oaccomplishing this goal, but one

requently used strategy is leadership

development. This approach is based

on the assumption that more senior

positions involve greater leadership

expectations and responsibilities or

incumbents. Whereas technical c

ompetencies develop relatively early

in a managers career, the leadership

competencies needed to excel at

higher levels require extra attention

as part o an ongoing and systemic

succession management process.

Ke Recommendations or Sccession Manaement

udad q x y aza.

rz a sme avpa a adpp w aa.

idy ky p ad a pa pa (n-Bx gd ayb p).

eab pa ky p a dy aa ad paby a pa .

ea daddvpa pa ad ppa.

u adp pyd w a py pdd.

Avd ba ba a v aa y.

Wk wad aay pv.


28/67

Dvp ladp ta

IMPROvINg THE SuCCESSION

MANAgEMENT PROCESS

t a y aza aa p ad d w pv dd, ad a wa ad k y db yaza pa d .

1. Simplifed process: ld a advappaa ad papwk ( pxya a y).

___Y ___n

2. Decentralized process: ea a avy ad wp byd a adad .

___Y ___n

3. Fit with oranizational cltre: i d y ay w pva?

___Y ___n

4. Emphasis on learnin skills and

adaptabilit: F p a w a.

___Y ___n

5. Reconition o on-the-job deelopment:

idy apppa a aa dvp.

___Y ___n

6. variet bilt into assinments earl in the

manaers career: Dvp adapabad w y a j a aad j w y a 40 50.

___Y ___n

7. Encoraement o constrctiedeelopmental conersations: hav ak,pv va w b a a ba.

___Y ___n

8. Manaers coached beore the ie career

deelopmental eedback: i a w pvd v dvpa dbakpa aa p?

___Y ___n

9. Encoraement o indiidal mentorin or

hih-potential manaers and senior-leel

execties: A -- (v) ad wk (j v)ad ad ppd?

___Y ___n

10. Bilt-in accontabilit with reard to

eedback on whether personal deelopment

plans are implemented: A aa

d aab pd a -qaydvpa pa ad a ?

___Y ___n

ta b y p y kd. iy kd y 0-3 , y pbabyd pv, 4-6 y aw d w pv pa, ad 7-0 x,w ay v pa b pd.

sc: A v k wa pbd Organizational Dynamics, v. 3, Ay Kaav adDa t. (t) ha, gw ad b: i pa p a?p. 77. cpy ev (00). rpd wp.


29/67

Dvp ladp ta

Although there are literally hundreds o denitions or the term leadership,

there are relatively ew that concisely dene leadership development. One such

denition that ocuses on the development o individual leaders (as opposed

to organization development) is the expansion o a persons capacity to be

eective in leadership roles and processes.[24] One way o expanding a persons

leadership capacity includes but is not limited to helping to develop knowledge,

skills and abilities that the organization values with regard to leadership.

Interest in leadership development has exploded over the past decade as

organizations look or ways to better address increased competitive pressures,

respond quickly and fexibly to rapidly changing conditions, and innovate and

exploit emerging technologies. It is thought that investments in leadership

development pay o in terms o creating a sustained competitive advantage that

will propel organizations orward in the 21st century economy.[25] For example,

some estimates have placed the market value o General Electric at $20 billion

higher than its breakup value, with much o that value attributable to the quality

and depth o GEs leadership capacity.[26]

It should be remembered that leadership development is incomplete as a

stand-alone system. The design of a leadership development initiative should be

grounded in succession management, anchored in the organizations strategy

and feasible given the organizations size and resources. Specically, the who

and whato leadership development are ultimately based in the oundation

set by succession management. The leadership development system builds on

this inormation by establishing the howand the whenin terms o practices

and processes. It is important to keep in mind that the purpose o leadership

development is not to create programs. Instead, it should be about designing

and implementing practices and processesdevelopmental systemsthatcapitalize on work-related experiences to help achieve the organizations

strategy.

Estimates rom those who have worked extensively in the eld o leadership

development indicate that as much as 80 percent o the learning and

development o those who eventually move into senior management stems

rom experience, 10 percent rom classroom education and training and the

other 10 percent rom coaching and mentoring.[27] These estimated percentages

Ladsp Dvlpt

The people we hire, and the ocus we put on their development as leaders, are critical to P&G s ability to innovate

and compete. Nothing I do will have a more enduring impact on P&Gs long-term success than helping to develop

other leaders.

A.g. LAFLey,

Ceo, ProCTor & gAmBLe


30/67

Dvp ladp ta

reinorce the importance o

providing meaningul developmental

experiences or developing leaders.The philosophy at Goldman Sachs,

however, is more balanced in terms

o making use o all three ways o

learning: (1) learning rom ormal

classes; (2) learning rom other

people (mentoring); and (3) learning

on the job (experiential learning).

Regardless o the respective

percentages, the state o the practice

is to emphasize developing leaders in

the context o ongoing work rather

than taking leaders rom their work

to develop.

leadersHiP develoPMent

CHallenges

Embedding development in

ongoing work is valuable in terms

o enhancing the job relevance o

developmental experiences. The

more technical term or this is

transer o training, and it is one o

the most pressing challenges when

conducting classroom training

and development programs.

Specically, what can be done so

that the knowledge, skills and

abilities developed through training

are applied back on the job?

This is a particular problem with

leadership development because

sending a changed person back to

an unchanged system oten is an

exercise in utility. Without supportback on the job or the personal

changes made as a part o a training

and development program, it is

unlikely that such changes will stick.

But when the changes come about

rom on-the-job developmental

experiences, the transer is more

likely to be successul because

the gap between learning and

application is minimized in terms o

both time and distance.

individual diFFerenCes

A dierent challenge to eective

leadership development is that

there are individual dierences

in developmental readiness. Just

because someone is a certain age

or has been in a particular job or

a certain number o years does not

automatically mean that he or she

is ready or a given developmentalexperience. This is where the

importance o a solid succession

management plan comes into play.

Having a deep understanding o

someones career development

to date in conjunction with an

honest appraisal o that persons

leadership potential and job

perormance through a Nine-Box

assessment can provide much needed

insight into the present level o

developmental readiness or a stretch

experience.

Even with the best-designed

developmental experience, there will

be individual dierences in learning.

This pertains to dierences both

in the amount and in the types o

learning. Two people participating

in the identical 360-degree eedback

experience are likely to take away

dierent things rom the experience.

For example, one person mightcome away with a greater sense

o sel-awareness in terms o the

impact o his or her behavior on

subordinates whereas another person

learns to provide more constructive

eedback to his or her peers. This

is largely inevitable because o

individual dierences in terms o

developmental needs and the way

that we each construct our own

learning.

learning goal orientation

It is tough to learn rom experience

i attention is ocused entirely

on maximizing job perormance.

The issue is not how to replace

perormance but how to elevate

learning so that it is as valued as

perormance. Infuential work in the

eld o motivation has distinguished

a perormance goal orientationrom a learning goal orientation.[28]

With a perormance orientation, the

goal is to gain positive judgments

by demonstrating mastery and

avoid negative judgments o ones

competence. With a learning

orientation, the goal is to increase

competence by developing mastery.

A potential challenge with on-

the-job development is that the

ocus is entirely on demonstrating

perormance mastery with little

or no attention to learning and

developing mastery. As a result, the

potential learning benets associated

with a developmental experience are

reduced, which negatively aects

long-term return on investment.

It is also unrealistic to expect that

learning will be valued more than

perormance because that has

career-limiting implications in terms

o lower Nine-Box perormanceevaluations. One way to overcome

this is to coach individuals on how

to become more intentional about

their learning through disciplined

sel-refection, journaling and

proactive eedback-seeking behavior.


31/67

0 Dvp ladp ta

evaluating tHe iMPaCt oF

leadersHiP develoPMent

The holy grail o sorts in leadership

development is demonstrating the

impact and value-addedto the

organization in the orm o return

on investment. Dierent kinds

or levels o evaluation criteria

can be used (see Criteria or

Evaluating Leadership Development

Initiatives), but the ultimate

criterion is to show that leadership

development interventions positively

aect the organizations bottom line(also called the resultscriterion). At

least one prominent person in eld

o leadership developmentSteve

Kerr o Goldman Sachsbelieves

that trying to directly document

cost savings or productivity

enhancements is silly because

there are so many other actors that

can aect those numbers. For this

reason, Kerr preers to ocus on the

evaluation criteria oreactionsand

transer. ROI or results may not beimportant at Goldman Sachs, but

the rest o us probably better nd

ways to demonstrate value-added to

the bottom line.

I it is not possible to run true

experiments (and it rarely is in

organizations), then the evaluation

methodology becomes less rigorous

and more subjective. At an entirely

subjective level, one approach is

to ask key stakeholders to describethe changes in the organization

since implementing the leadership

development initiative and then

estimating dollar value o those

changes and the degree that the

initiative aected those gures.[29]

Using a similar technique, it has

been estimated that executive

coaching provides an average

return o about six times the cost o

coaching.[30] Unortunately, more

rigorous attempts at estimating

the economic impact o training

and development in a Fortune 500

pharmaceutical company indicated

a negative ROI or executive

training on motivating subordinates,

leadership skills training and

teambuilding.[31]

Besides perormance, it is advisable

to think o other potential criteria

o interest, such as retention. Thebottom line (pun intended) is that

there are numerous possible ways

to evaluate leadership development

initiatives, and reviewing them all

is beyond the scope o this report;

however, there are recommended

sources available to serve as sound

proessional guides.[32] And to

be able to estimate the impact

o an intervention, evaluation

research must be conducted and

designed into the initiative rom the

beginning, which is oten resisted or

a multitude o reasons, including the

additional expense and the circular

logic that a program would need

to have demonstrated value beore

being adopted so there would be no

reason to evaluate it.[33]

One nal thought about leadership

development evaluation and

estimating ROI: One o the uture

outlooks on learning rom a recentthink tank sponsored byChie

Learning Ocer Magazinepredicted

that alignment o learning will

replace ROI as the biggest challenge

acing HR proessionals. That is,

the greater analytic capability ound

in many organizations today will

be used primarily to help ensure

the alignment o training and

development with business needs

rather than trying to estimate the

direct eect o development through

an ROI study. There appears to be

greater acceptance o the value o

employee development such that it

does not require ROI justication,

but it does require greater alignment

with strategy and business goals to

be eective.

ConCePtual FraMeworkFor develoPMent

Beore taking on the task o

designing or adopting the

experiences that will serve as the

core o a leadership development

initiative, it is worthwhile to

refect on what makes experiences

especially developmental. Because

experiences are not all equally

developmental, a relevant question

is what distinguishes those that

are potent orces or leadership

development rom those that seem

to have little impact. Doing so can

help to identiy an overall conceptual

ramework or shaping development.

One approach to this issue is the

ACS model proposed by researchers

at the Center or Creative

Leadership (see Figure 4 on page

22).[34] The philosophy underlying

this model is that any experience

can be made more developmentalto the extent that it incorporates

or enhances aspects o assessment,

challenge and support (ACS).


32/67

Dvp ladp ta

Assessmentreers to a diagnosis o

the current state o the individual

or organization in terms o

leadership capacity. These data

help to clariy what needs to be

learned, improved or changed.

The data can come rom onesel

(e.g., sel-refection, scores on

personality inventories) or rom

others (e.g., eedback, customer

evaluations). Good assessment

data also provides the motivation

to close the gap between the

current and an ideal uture state.

I no gap exists, this assessment

data can still be helpul in terms

o enhancing sel-condence.

Challengeoccurs when currentcapabilities are tested. More

challenging experiences are those

that require some stretch out o

comortable and habitual ways o

thinking and acting. It involves

some willingness or risk-taking

and eeling a little (or a lot)

uncomortable. It is through

taking on a developmental

challenge that the limits o

how things are normally done

become apparent. Challenges

are motivating in terms o the

desire to master a new skill or

way o thinking. Challenges

also oer the opportunity or

experimentation and exposure to

new perspectives.

Supportin the orm o

positive reinorcement rom

co-workers, bosses and the

broader environment helps

to build sel-condence and

master the challenge at hand.

Developmental challengesare oten dicult physically,

psychologically and emotionally.

Without substantial support, it

is hard to bring about lasting

changes at an individual,

group or organizational level.

As noted in several places in

this report, sending a changed

person into an unsupportive

interpersonal environment is one

way that organizations waste

their resource investments in

development.

Criteria DefnitionMeasrement Approaches

(Examples)

Reactions

hw papa kd ab xp

(a); papa pp

xp bq pa (y

jd).

P-xp qa

a a ( )

P-xp qa

pvd paa va

Learnin

t v kwd pad b

xp; w kwd ad

v ; bava a a a

dvp xp.

Kwd

ma d (.., dad

a da)

sk da

Transer

t x w wa wa ad

dvpa xp appd bak

jb.

ra bav (.., 360-d

a)

s-p

ResltsAy a w azaa pa

ad.

Pdvy a

c aa

epy a

Paby

Criteria or Ealatin Leadership Deelopment Initiaties


33/67

Dvp ladp ta

The most powerul developmental

experiences are ones that includea variety o assessment, challenge

and support mechanisms. The

developmental process is also one

that shapes and is shaped by the

ability and motivation to learn.

Developmental experiences are

thought to enhance both o these

aspects o learning, but these

components o learning also infuence

the quality o the developmental

experience. As an example, someone

with little ability or motivation tolearn will get comparatively less rom

a developmental experience than

someone who is able (developmentally

ready) and motivated. But rich

experiences will also enhance learning

ability and motivation.

The relationships between

developmental experiences, theability and motivation to learn, and

leadership development all take place

in an organizational context. Aspects

o the organizations context, such as

its size, mission, strategy and culture,

infuence the leadership development

process. This infuence extends to

the overarching ocus, the degree

o integration with other processes,

how systemic it is and ultimately

who is responsible or the system.

No two organizational contexts areidentical, and thereore, no two

leadership development systems

are the same. Instead o blindly

adopting best practices showcased

in other organizations, it would be

advisable or HR proessionals to rst

careully consider their own particular

organizational context with regard tothe t and easibility o a particular

practice.

The next section elaborates on

some o the more commonly used

developmental practices in leadership

development.

Fire 4: Model o Leadership Deelopment

A ca spp

Dvpa exp

ladpDvp

Aby ad mva la

oC

sc: ap fm v v & McC (2004), p. 4.

P p ad by c cav ladp ad adapd t c cav ladphadbk ladp Dvp (d d.) pbd by Jy-Ba / a Wy p 004.


34/67

A major way in which developmental practices dier is in terms o how

embedded each practice is in the ongoing work context. Classroom learning and

360-degree eedback tend to be removed rom the everyday work experience

whereas others, such as job assignments and action learning, are highly

embedded practices. But any practice can vary in terms o job embeddedness.

For example, eedback and coaching can be done o-site and away rom the job

or take place in the moment by a peer, a boss or a mentor.

There are our general types o leadership development practices: education,

assessment, coaching and experiential learning. It is generally better to include

a variety o developmental practices because that variety can help to enhance

learning motivation and also build a broader skills base. Decisions must then be

made regarding whether a leadership development initiative will tap deeply into

a particular type o practice, sample across all types but more supercially or try

to maximize both the depth and the breadth o developmental practices.

What ollows is a brie review o the main types o leadership practices.

Additional readings review these developmental practices in more detail[35]

with case study examples.[36]

Sample practices rom each o the our categoriesare reviewed, ollowed by a brie case study rom a medium-sized nonprot

organization that has been involved in a substantial and meaningul leadership

development initiative.

eduCation

Classroom programscontinue to be the backbone o most leadership

development initiatives. Formal classroom programs tend to run or three

to ve days and generally take place in an o-site location. Open enrollment

programs are targeted to qualied participants across any number o

organizations, whereas custom programs are designed to address the specic

leadership challenges o a client organization. There are myriad private vendorso open-enrollment and custom leadership development programs, including

nonprot organizations, consulting rms and executive education branches

o most major business schools. A particular strength o classroom programs

is the standardization o content that is delivered to participants. A particular

limitation is the uncertainty o transer o development rom an o-site

classroom back to the job. Classroom programs also tend to oster episodic or

event-based thinking about development (i.e., it occurs only during a special

program).

I we are going to go anywhere, weve got to have talent. And Im going to put my money in talent.

rAy KroC,

FounDer, mCDonALDS

Dvlptal Pactcs

Dvp ladp ta


35/67

4 Dvp ladp ta

Corporate universitiesare at the

extreme end o the education

spectrum. A corporate university

is dened as a centralized in-

house training and education

acility to better align training

and development with business

strategies.[37] Some corporate

universities are only or in-house

training and development whereas

others also oer open-enrollment

and custom developmental

programs. Corporate universities

represent a considerable investment

in the learning and development

o employees but also signal a

commitment to the value o

investing in human capital. Despite

their expense, corporate universities

are the astest growing segment o

the adult education market.[38] One

o the reasons or this growth is that

the shel lie o knowledge is

becoming increasingly shorter, and

thereore, the need or continuous

learning on the part o employees

is more acute. Although they

take dierent orms and styles o

education, the prototype o the

corporate university is GEs Welch

Leadership Center (Crotonville,

NY). In addition to oering a ull

complement o courses as part o

their catalogs o oerings, many

corporate universitiesincluding

Crotonvilleenlist current and

ormer managers as the aculty

instructors, sometimes even the

CEO. The advantage o such

an approach is that the course

oerings can be tightly tailored

to organizational needs in terms

o succession management and

leadership development. Also, the

manager-instructors bring a lot o

credibility to their teaching.

Besides some o the same limitations

associated with transer as noted

with other classroom programs,

corporate universities run the risk o

alling prey to the General Motors

Syndrome that perpetuates the

status quo and leads to corporate

inbreeding.[39] GM was heavily

criticized years ago or using

executives as leadership instructors

who were teaching outdated

worldviews and developing uture

leaders in ways that worked in the

past but were no longer relevant or

success in the uture. GM learned an

invaluable lesson rom its previous

mistakes and now is responsible or

one o the most exemplary corporate

universities serving Saturn Motors,

a wholly owned GM subsidiary.

Additional background on Saturns

corporate university success story

can be ound in a best practice

review o leadership development

practices.[40]

Because o the ast-growing use o

corporate universities, a ew o the

various approaches are presented in

the chart Corporate Universities.

This illustrates the variety o

organizations that have developed

in-house universities (some well-

known, others less so) as well as

the diversity in learning approaches

adopted by the represented

organizations. Corporate universities

are not just or big organizations.SMEs are also developing their

own universities to enhance

ongoing skills training and leadership

development.[41] For those HR

proessionals potentially interested in

championing a corporate university

initiative in their own organizations

(either large or small), a good place

to start is the Corporate University

Xchange (www.corpu.com) or a

comprehensive book on the topic.[42]

Improed recritment:r a aad pp w ad dvpd by - v.

Increased reenes: t

a a pv roiaad w a av d vy.

Redced trnoer: oa a a a wa a ava yv dppd % 6% a vy waad.

Better emploee

adancement: uvbd k a aapy adva.

Wider talent pool:uv p a

a ab p -v p, d dpdy xaab ak.

Sorce: F (999).

Reported Benefts o Corporate

uniersities or SMEs


36/67

Dvp ladp ta

CORPORATE uNIvERSITIES

Motorola uniersit: o a aza p va ay aa a. i wa -p a ada v (.., sxsa) d azaad a dpd bday ma.

www.a./avy.jp

Boein Leadership Center: tpa xv a w B ad ab a a p. t c wk pap w b pvd adp dvppp a aa --jb . maa a

qd ak adp a a pa p a:w y v aaa a, baa aa, ppa xv pb ada a p w baadp pb.

www.b./pay/ab/adp/dx.

Disne Institte: t i bad v ad da Wa Dy ad a b azd ad xpaa, adp dvp,bak ad a a b pa a b. i papa

ppy xp b bd a

Dy b :ladp Dvp, Qaysv, c lyay,oazaa cavy adtabd.

www.dy./

Hambrer uniersit

McDonalds Center o Trainin

Excellence: mDad ba

x wa dd 96 ba aa w a a adaa 4. tday, a 5,000d ad hab u aya. t uvy b b a dvp pp w ddvda Qay, sv,ca ad Va wd.t ad w p a pa mDadpy, d dvppa w, aa aa,d-aa ad xv.

www.dad./p/a/ab_vy.

John F. Welch Leadership

Center: t addaddy pa v wa pda maa Dvp

i a cv by gae 956. t i waad y a J F.W ladp c a aa ad ceo. i va ad papaa ya, d pa ge ad pa pge xv. m a a-bad, w

-a ppaawk. Pa a wk

dvp va a w d ad a a a ba a p wk. t a w a va b ad paa ada. t ay ab qay p bw gexv, ge pj aa,vy ay ad xaa xp. eay aadp a a p vy aza;wv, ay pa a bak y by xv w avb ad by ceo b. t p w aavaab y w appva ge aa ad ceo.

www..//pay/w/xpadd_a.

Schwans uniersit: t swaFd gp apvd badd z d wd, w aa a ad $3.5 b ad a4,000 py wdwd. tuvy wa dd 00ad pa ay adxay p a dadp dvp, dvdapy dvp, vw

k a, a a, a a ad p ka. t uvy paz aby pvd aad dvp p b d aza a z.

www.wavy.


37/67

6 Dvp ladp ta

assessMent

Personality inventoriesare paper-and-pencil or Web-based assessment

instruments. They are relatively

easy to use and can be eective in

building individual sel-awareness by

providing participants with insight

into their personal tendencies and

values. They can also be used in

helping participants appreciate

individual dierences in others and

understand why other people may

act the way they do. Personality

inventories tend to be popular withparticipants (i.e., elicit positive

reactions) because people generally

enjoy learning about themselves.

The Meyers-Briggs Type Indicator

is an example o an assessment

instrument that is commonly used in

leadership development workshops

as a way to introduce participants to

dierent personality types.

Multi-source ratings/360-degree

feedbackis also a very populardevelopment practice. It involves

the systematic measurement o

the perceptions o an individuals

leadership perormance rom an

entire circle o relevant viewpoints,

including sel, subordinates, peers,

supervisors and even external

stakeholders such as customers

and suppliers. Supposedly, such a

comprehensive assessment rom

various role perspectives can provide

an accurate picture o the impact oa leaders behavior on others. The

gap between sel ratings and others

ratings can be used to estimate

individual sel-awareness, which has

been shown to be positively related

to managerial perormance.[43]A

potential weakness o this practice is

that the resulting ratings can lead to

conusion i they do not converge

across rating sources. For this

reason, multi-source ratings are most

eective when linked with executive

coaching.

Assessment centersoer a

comprehensive method or assessing

an individuals leadership potential.

Traditionally, assessment centers

have been used or selecting

managers or middle- and upper-

level jobs by assessing their skills

through dierent assessment

exercises that measure perormanceacross a number o dimensions.

Developmental assessment centers

are used exclusively or employee

development, with a heavy emphasis

on assessment with eedback.

Specically, it is a collection o

workplace simulation exercises that

provide individuals with practice,

eedback and coaching on a set o

behavioral dimensions that (a) can

be developed and (b) are considered

to be critical to proessional

success.[44] Their use is becoming

increasingly popular. Survey

results indicate that developmental

planning was reported as a popular

reason or using an assessment

center (39 percent o responses),

ollowing selection (50 percent)

and promotion (48 percent).[45]

Advantages o developmental

assessment centers include that they

are thorough and comprehensiveand link the important components

o assessment, challenge and

support. On the downside, they are

expensive and time-consuming to

design and implement. There is no

reliable data to suggest that they are

more eective than eedback and

coaching on their own.

CoaCHing

Executive coachingis valuablein helping leaders make sense o

their assessment data, putting

together an actionable development

plan, implementing the plan and

providing support and ollow-up

assessment o behavioral change.

The Individual Coaching or

Eectiveness (ICE) model or

middle- and higher-level leaders

consists o three phases: (1)

diagnosis (one or two days o

assessment and eedback); (2)coaching (one day per month or

six consecutive months); and (3)

maintenance/support (periodic

contacts and review sessions to help

maintain the personal changes).[46]

An important actor to consider

with coaching is the training and

experience o the particular coach.

At present, there are no licensing

requirements to call onesel an

executive coach, and as a result,

there is considerable variability in thebackground and skills o those in the

coaching business. Caveat emptor!

Mentoringis considered a ormal

or inormal process in which

a more senior person takes a

vested interest in the personal

and proessional development o

a more junior person, usually a

proessional colleague. The research

on mentoring is voluminous: more

than 500 published articles inscholarly and popular-press outlets

on the topic appeared in a recent

10-year period.[47] O particular

interest is the nding that inormal

mentoring programs tend to be

more eective and receive more

avorable responses than ormal

programs. There also is recent


38/67

interest in the issue o marginal

mentoring that recognizes that

not all mentoring experiences are

positive or benecial.[48] It is an

unortunate reality that ew leaders

get any training on how to be

eective mentors even when there

is a ormal mentoring program in

place. Other cautions with regard

to mentoring include that it is very

time-intensive or both parties

and that there may be insucient

numbers o qualied mentors or

those in very junior positions. This

is why some have advised using

mentoring only in targeted situations

involving high-potential managers

and senior-level executives. In more

large-scale applications with junior

employees, it may be more realistic

to set up mentoring networks,

in which employees are assisted

in identiying existing helpul

relationships and then trained in

how to better use these relationships

or their development.[49]

exPeriential learning

Job assignmentshave long been

avored as a leadership development

practice, especially those assignments

that stretch the thinking or other

capabilities o the target leader.

This makes sense in that it is widely

believed that leaders view their most

potent developmental activities to be

experiential based, especially on-the-job experiences. Putting developing

leaders into stretch job assignments

is a valuable developmental tool;

however, you do not want to put

people in over their heads too

much. There are two undamental

questions in using job assignments

or leader development: (a) how

prepared should someone be or a

stretch assignment; and (b) what is

the right assignment or this leader

at this time? It requires an intimate

knowledge o the career goals, career

paths and developmental readiness

o those leaders.

Action-learning projectsconstitute

an approach that is based on the

assumption rom adult learning

theory that people learn most

eectively when working on

organizational problems in real

time.[50] Action learning typicallytakes place in project teams

composed o people rom diverse

unctions and locations working

together or six to 12 months on an

issue considered to be strategically

important to the organization. What

makes or breaks action-learning in

terms o development is the degree

that ongoing learning is valued as

much as perorming well. External

coaches are oten used to help

acilitate team sel-refections and to

enhance learning and development.

An example o a successul action-

learning initiative or the purpose o

system-wide leadership development

in a nonprot organization is

described in Catholic Healthcare

Partners Leadership Academy.

t a w

daa

q

jb a

ad

dvp

(a) w ppadd

b a

a; ad

(b) wa

a

ad a ?


39/67

Dvp ladp ta

Additional readin:

oc, P. m. g., & Day, D. V. (007). s pa adp dvp: F a . i J. A. c & r. e. r

(ed.), The practice o leadership: Developingthe next generation o leaders (pp. 64-6). saFa, cA: Jy-Ba.

Sorce: J c. Ab, ed.D., s VPd, ta maa ad Dvy,ca haa Pa.

Catholic Healthcare PartnersLeadership Academ

Backrond: ca haa Pa (chP) a -dv, --p a y.chP pa a a pa, - aa, dy, aa, p pa, w ad a a aza a aa d pp idaa, Kky, o,Pyvaa, t ad aby a.

Objecties:

idy a p -pa xvw a apay a pby aza.

Bd a pp ad d ay aza ad va.

Dvp a a xva d ap .

Academ Actiities:

mp a zd dvda 360-d aad dvp bad ddadp a :

- Pa ad va.

- sva adp a.

- Aby ad px a p.

- Ba a.

- Aby dvp .

ta-bad a-a pj d a pav chP.

idvda ad a a.

evaa dvda p, f chP ad -v pp dvp ad a a ad a.

Otcomes:

Individual Participants

Dvp a dp ad chP ad va.

ead dvp pp w p .

ga -awa.

developing lead talent-

Documents