Effective Leadership at the Top

IPAC - September 29th, 2005

Dr. François Ducharme

2

What Makes a Great Executive Leadership Team?

Top Team ASkilled, Smart, Strategic Members

Highly Analytical Thinkers

Solid Leadership Capabilities

Performance Results:

Outstanding

3

What Makes a Great Executive Leadership Team?

Top Team ASkilled, Smart, Strategic Members

Highly Analytical Thinkers

Solid Leadership Capabilities

Performance Results:

Outstanding

Top Team BSkilled, Smart, Strategic Members

Highly Analytical Thinkers

Solid Leadership Capabilities

Performance Results:

Mediocre

4

The Research: A Hay / Harvard Study

Formed a partnership with Richard Hackman of Harvard University*

Gathered data on 60 plus executive teams in 1998 (now, close to 100 organizations)

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.

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The Research: A Hay / Harvard Study

Analyzed intact leadership teams (management and executive) Outstanding vs. typical vs. poor teams

Conducted independent assessment Product quality, organizational

performance, team capability, individual capability

Created largest empirical database on Top Executive Teams in the world

Validated through climate survey in their organization

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Organizational Climate Definitions

Unnecessary procedures are minimizedNew ideas are accepted

Authority is delegatedPeople are held accountable

Mediocrity is not toleratedGoals are challenging but attainable

Flexibility

Responsibility

Standards

Rewards

Clarity

TeamCommitment

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

Per

cen

tile

Gap

FlexibilityResponsibility

StandardsRewards Team

Commitment

Clarity Total

80

70

60

50

40

30

20

10

0

Outstanding

8

Climates Created in High Performing Teams

Per

cen

tile

Gap

Flexibility

Responsibility

Standards

Rewards TeamCommitment

Clarity Total

80

70

60

50

40

30

20

10

0

Typical

Outstanding

9

Climates Created in High Performing Teams

Per

cen

tile

Gap

FlexibilityResponsibility

StandardsRewards Team

Commitment

Clarity Total

80

70

60

50

40

30

20

10

0

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

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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

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1 - Top Leadership Teams Are Real Teams

Outstanding leadership teams: Have clear, stable boundaries

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

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2- Top Team Leaders Aren’t Necessarily the Superstar Organizational LeadersLeaders of outstanding teams:

Often take a less visible role

Rely less on their own talents, and more on those of others

Create a climate and conditions that foster team success

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3- Leaders of outstanding teams pull together the conditions necessary for team success

DevelopmentDevelopment

DirectionDirection

StructureStructure

PeoplePeople

Leadership

SupportSupport

Results

Conditions

Leaders of outstanding teams manage three main conditions for team success.

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The Conditions for Team Success: Direction

The purpose of the team must be

Clear Do we know where we are going?

Challenging Is the goal challenging, but not impossible?

Consequential Is the goal meaningful and engaging to us?

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The Conditions for Team Success: Structure

Well-designed team task Do we have an interdependent goal? Are we approaching it strategically?

Optimal Composition Are we the right size? Do we have the right skill set?

Norms Do we adhere to effective norms of behaviour

in conducting our business?

Focus on the goal rather than internal conflict

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The Conditions forTeam Success: People

Outstanding Team define competencies required for new team members, such as:

Smart Analytical Thinking, Conceptual Thinking

Driven Achievement Orientation, Initiative, Strategic

Orientation, Self-Confidence, Directiveness

Committed to the team Executive Maturity, Impact and Influence,

Teamwork, Team Leadership

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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 Authoritative

Affiliative Democratic Coaching

Avoid a coercive style that shuts down dialogue

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The Outstanding Leader’sManagerial Styles

100%

90

80

70

60

50

40

30

20

10

0Coercive Authori-

tativeAffiliative Demo-

craticPace-

settingCoaching

88

4141

6060

7777

29292424

4343

56566363

1212

4646

5454

2929

6161

74746969

6464

5151

Outstanding Typical Poor

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The Outstanding Team Leader’sCompetencies

Holds people accountable for how they behave Team Leadership Integrity Directiveness

Links the team and its purpose to the broader organization Organizational Commitment Information Seeking

Establishes and prioritizes the team’s actions Achievement Orientation Executive Maturity

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Leaders of Outstanding TeamsHold People Accountable

3

1

2

44

5 Outstanding Typical

Le

vels

of

Co

mp

ete

nc

y

5

4

3

2

1

0Team

LeadershipIntegrity Directiveness

Competency

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Leaders of Outstanding TeamsLink to the Organization

3

1

3

1

Le

vels

of

Co

mp

ete

nc

y

5

4

3

2

1

0OrganizationalCommitment*

InformationSeeking

Competency

Outstanding

Typical

23

Leaders of Outstanding TeamsEstablish and Prioritize Actions

5

4

32

Le

vels

of

Co

mp

ete

nc

y

5

4

3

2

1

0AchievementOrientation

ExecutiveMaturity

Competency

Outstanding

Typical

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5- Leaders of outstanding teams have higher levels of emotional intelligence

More in control of their emotions Better able to handle challenging situations Better able to calm others

More sensitive to others Better able to “read” others Better able to motivate others

More honest and genuine 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

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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

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Summary

Outstanding executive teams need

The right leader Focuses on the conditions necessary for

team success May not be a charismatic superstar

The right–not necessarily the smartest–people High emotional intelligence

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