E X C E P T I O N A L C U L T U R E , E X C E P T I O N A L B O T T O M L I N E R E S U L T S :

How Promoting from Within Leads to Business Wins

W E A R E S O G L A D Y O U A R E H E R E !

Y O U R H O S T S M I K E & T A N S L E Y

T H I N K . D O . C H A N G E .

L E A D E R S H I P C O R R E L A T E S W I T H F I N A N C I A L P E R F O R M A N C E →  A study by Bloomberg BusinessWeek and Hay Group

found that companies ranked in the top 20 for leadership acumen significantly outperformed the S&P 500 in both the short and long-term. This makes finding, developing, and retaining effective leaders not only a talent management priority but also a business imperative.

L E A D E R S H I P C O R R E L A T E S W I T H F I N A N C I A L P E R F O R M A N C E

L E A D E R S H I P D E V E L O P M E N T B E C O M E S A C R I T I C A L I S S U E →  Identifying and developing emerging leaders requires—

and is receiving—a focus from organizations to ensure a ready leadership talent pool.

→  Leadership development was the #1 human capital issue in 2010 and 2011, according to the Institute for Corporate Productivity.

L E A D E R S H I P D E V E L O P M E N T B E C O M E S A C R I T I C A L I S S U E →  In the “Talent Edge 2020: Blueprints for the New Normal” study, leadership

and emerging leaders were high priorities in terms of both development and retention:

→  More than 6 in 10 (64%) have a high (40%) or very high (24%) fear of losing high- potential talent and leadership.

→  Building a leadership pipeline and focusing on leadership development is no longer confined to succession planning, nor should it be restricted to C-level executives. Today’s flatter, global organizations need effective leaders at each level of the organization.

L A C K O F L E A D E R S H I P P R E P A R A T I O N " →  Consider these points:

→  “HR leaders rate their first-line managers as their ‘least ready’ workgroup, even less capable than their entry-level employees.”

→  “Companies say they are finding they don’t have the managers to spearhead new projects or step in for departing executives, a problem as companies try to shift into growth mode.”

→  Only 33% of HR leaders are highly confident in their frontline leaders’ ability to ensure the future success of their organization.

•  Bersin & Associates Report, 2010. •  “Leadership Training Gains Urgency amid Stronger Economy,” Wall Street

Journal. •  DDI, “2011 Global Leadership Forecast” (1,863 HR leaders)

L A C K O F L E A D E R S H I P P R E P A R A T I O N

→  Even the frontline leaders themselves agree. Of the 1,130 frontline leaders in DDI’s December 2010 “Finding the First Rung” study:

→  Only 42% said the transition to a first-time leader was easy. Only 55% said they possessed the leadership skills they needed when they first stepped into a management role

→  Only 62% felt prepared to take on this role

O R G A N I Z A T I O N S A R E F A I L I N G T H E I R C U LT U R E I N F I V E W A Y S 1.  The Moment of Truth. Most organizations say they want to promote from

within yet at the moment of truth they do otherwise. Notably, very few frontline leaders (11 percent) got their job by being groomed as part of a formal development program.

2.  The Funhouse Mirror. Neither frontline leaders nor their managers have an accurate view of that person’s leadership capability. Only 56 percent of frontline leaders feel that their manager has the knowledge to support their development.

3.  The Invisible Plan. Only one-third of frontline leaders have sat down with their manager to agree upon a formal, written development plan.

O R G A N I Z A T I O N S A R E F A I L I N G T H E I R L E A D E R S I N F I V E W A Y S 4. The Training Waltz. A common complaint of senior management is that their organizations have spent tens of thousands of dollars on leadership training—but do not see the results in the workplace. Most leadership training programs do not teach the most important skills, nor do they provide enough opportunity for practice and feedback to build competence and confidence in leaders and encourage them to use the skills on the job. 5. The Maytag Repairman. Finally, most managers feel like they are all alone in their development because they are not getting sufficient attention or support from their manager or from their organization. How long would you expect frontline leaders to thrive under the following circumstances? →  Only 53% say that their development assignments are good learning experiences. →  Only 49% say they get sufficient feedback about their performance. →  Only 46% say their manager is committed to their development. →  Only 40% are satisfied with their organization’s development offerings.

I M P O R T A N C E O F B U I L D I N G I N T E R N A L T A L E N T →  One of the key advantages of developing leaders

internally is that they achieve productivity almost 50 percent faster than external candidates according to a study by Mellon Financial, “Corporate Learning Curve Research Study.”

H I R I N G M A N A G E R S F R O M T H E O U T S I D E I M P A C T S P E R V A S I V E O R G A N I Z A T I O N A L C U LT U R E →  A study by Matthew Bidwell, an assistant professor at the

University of Pennsylvania's Wharton School, found that external hires get paid 18% to 20% more than internal employees do for the same job, but they get lower marks in performance reviews during their first two years on the job.

H I R I N G M A N A G E R S F R O M T H E O U T S I D E I M P A C T S P E R V A S I V E O R G A N I Z A T I O N A L C U LT U R E →  “Hiring managers may be tempted by a fresh perspective

or a prestigious résumé, but they underestimate how hard it is to integrate new people.” - Matthew Bidwell

T H R E E K E Y E L E M E N T S O F C U LT U R E

→  Mission →  Values →  Practices

→  As organization culture becomes more pervasive it becomes more difficult for “outsiders” to grasp the unique culture

•  UPS Model →  Organizations that want to change culture can best do so by

hiring management from outside the organization.

H O W T O S T R E N G T H E N O R G A N I Z A T I O N A L C U LT U R E A N D I M P R O V E B U S I N E S S P E R F O R M A N C E →  Identify Management Talent Inside the Organization →  Develop Internal Management Talent →  Promote Managers from Inside the Organization

VERTEX Driving Credit Union Productivity & Profitability

M O S T D O W N L O A D E D R E P O R T !

W H O N E E D S V E R T E X ?

M A N A G E R I A L I N C O M P E T E N C E = F A I L U R E

96%

D O E S N ’ T A D D R E S S U N I Q U E N E E D S

C U S T O M = E X P E N S I V E & T I M E C O N S U M I N G

T H E D E T A I L S : H O W D O E S I T W O R K ?

H O W D O E S V E R T E X W O R K ?

→  Step 1: Checkpoint 360 Degree Evaluation →  Comprehensive assessment of each participant’s

current management skills •  Attributes •  Strengths •  Opportunities for growth

→  Management Skills Survey →  Vertex Coach Assigned:

•  Debrie"ng of Checkpoint 360 and Skills Survey

→  Customized Action Planning Based on Checkpoint 360 Results and Management Skills Survey

H O W D O E S V E R T E X W O R K ?

→  Step 2: Management Training →  Seven web-based training modules with participant guides for

each key management skill area: •  Team Building •  Motivating •  Coaching Performance •  Strategic Thinking •  Leadership •  Accountability •  Interviewing & Evaluations

→  Each module includes a post-test

H O W D O E S V E R T E X W O R K ?

•  Step 3: Monthly One-on-One Conference Call

o  Review Action Plan Implementations ª  Validate implementation of action steps ª  Set new learning goals

o  Discuss current challenges o  Review what was learned from the most recent Vertex Webinar.

ª  Ensure key learning points were understood. ª  Discuss what the participant plans to implement from the webinar.

H O W D O E S V E R T E X W O R K ?

•  Step 4: Accountability •  Quarterly Phone Conference with Particpant’s Supervisor

ª  Provide feedback on engagement and development ª  Provide suggestions for supporting learning and development ª  Validate skill implementation

H O W D O E S V E R T E X W O R K ?

→  Step 5: Final Assessment & Evaluation →  2nd Management Skills Survey to assess progress →  Development of follow-up action plans for participants →  On-going development recommendations

V E R T E X F O R F U T U R E M A N A G E R S

→  The Vertex version for those not yet in management who you want to be fully e#ective from the "rst day!

→  Retain top performing employees by investing in their development

→  Bene"ts →  Extremely low cost →  Self-paced →  No out-of-o$ce time →  All the same training modules proven by research to be critical for

success →  Accountability

V E R T E X C O A C H E S

V E R T E X I S L I V E

→  FedChoice Federal Credit Union →  Debbie Wright shares,

•  “This program has put me on the path to becoming a better leader. And, by having better leaders at FedChoice, the credit union will experience cascading bene!ts such as improved employee engagement, motivation and productivity. This program was truly eye opening and encouraged me to become more self-reflective and open to change"

→  Collins Community Credit Union →  NuPath Community Credit Union →  121 Financial Credit Union

N E X T S T E P S

→  More information including a demo of the training modules – contact Tansley Stearns: tansleys@filene.org | 608.661.3753

→  Sign-up for Vertex - http://filene.org/products/product/vertex-manager-training

QUESTIONS?

LE T ’ S CONNECT!

Tansley Stearns tansleys@filene.org

203.859.2666