leadership development: the move to more rigorous, structured, and scientific approaches

Leadership development: The move to more rigorous, structured, and scientific approachesQualtrics Talent Week Series

Anthony Abbatiello, Partner, Global Leader – Deloiite Leadership November 2016

Leadership Development: The move toward more rigorous, structured, and scientific approaches

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Housekeeping



Anthony AbbatielloGLOBAL LEAD

Anthony Abbatiello is a Principal in the Deloitte Human Capital practice, based out of the New York office. Anthony focuses on advising global clients on building high performance businesses that drive growth and optimization through Human Resources and Talent Management.

Anthony began his career at Accenture helping global clients increase the effectiveness of HR by creating innovative strategies, global operating models and bringing HR into the digital age. He also helped pioneer Accenture's HR Transformation capabilities with the first HR Outsourcing arrangement in the Financial Services industry. Continuing to build expertise in Enterprise Business Transformation, Anthony has led key Mergers/Acquisitions and the transformation of global enterprise functions such as HR, Operations, Finance and Information Technology. Consulting experiences span a wide spectrum of functional areas namely Human Resources Strategy, Human Resources Service Delivery, Talent Acquisition, Talent Development, Learning Design, Leadership Development and Technology Integration.



• Introduction

• Next generation leadership development

• Engaging the modern leader

• Rigorous measurement

• Question and answer

Agenda



Leadership is a top business issue

Leadership continues to be the most pervasive human capital concern among surveyed business leaders and HR…

…and leadership investments are not delivering results, possibly due to:

89%view leadership as a high priority and pervasive issue (vs. 87% in 2015)

57%cite their leadership challenge as very important (vs. 51% in 2015)

28%report weak or very weak leadership pipelines

14%rank themselves as “strong” at succession planning processes

13%are “excellent” at building global leaders

“Leadership cliff” meeting “leadership jumps”

Heroes, myths and fad spending with “smile sheet” evaluation

Network of teams requiring MORE leaders

“Positional leadership” no longer valid and coaching in higher demand

Source: Deloitte Global Human Capital Trends Report 2016



Next generation leadership developmentToward a more rigorous, structured, and scientific approach



Structured and scientific

Start with leadership for what? Better business? Better leaders?

Context

• Digital transformation

• M&A / Ownership changes

• Turnaround

• Emerging markets

• Hyper growth

• Re-organization

• New competitive landscape

• Org efficiency

Multiple contexts can exist in the same organization

Characteristics of contextual/Business first approach

• High contextual relevance

• “Logged on” vs. “Logged off”

• “Real” challenges (as opposed to hypothetical) with your business as the laboratory

• Leaders teaching leaders

• Efforts align with culture/strategy/values

• “High stakes” like any other business activity—what other activities are granted a “safe space?”



Business Event Questions

Context also drives us to ask the right (and hard) questions

Who stays, who goes?

Who should be on the succession list?

How strong is our bench of talent?

How do we measure high potential?

Where should we target our development spend?

Who is the best fit for new teams?

Who has the potential to transition to new markets?

Succession

Evaluating bench strength

Talent reviews

Building pipeline

Entry to new markets

Business transformation

M&A



Our research reveals the most effective leaders tend to focus on four key areas of leadership (and they can be developed)

Laser focus vs. broad brush

Where to place your developmental bets? Go beyond 80/20 to 99/1

The business People

Entrepreneurship Relationships



Business first means defining the leadership capabilities that matter most… and then putting them in context

A rigorous approach should meet the needs of individual enterprises, establish focus, but also permit external benchmarking for accountability.

Direction Business judgement

Competitive edge Build talent

Provide vision and direction

Show commercial acumen.

Drive change and innovation

Build capability for competitive

advantage.

Influence Collaboration

Persuade and influence

stakeholders

Create synergies via partnership.

Execution Inspirational leadership

Achieve results through others.

Get people to follow you.

The business People

Entrepreneurship Relationships



hands-on development with time spent practicing in their context

When put into strategic context, developing critical capabilities becomes top business priority …not a “nice to do”

20% 80%

Accelerating new learning by building

on previous learning

Deepening appreciation of situations by applying expert

schemas to personal experience

Thinking like an expert by being taught how expert leaders think

Building versatility of behavior by exposure to the range of

strategies that can be used in different contexts

Activation Acquisition ActionAppraisal

Get to action…….Fast!!!

We have to do it, but its not where value happens.



Engaging the modern leaderPutting the leaders context the center



Four potential dimensions underpin how quickly a leader can learn, grow, and transition as demands increase

Dimensions of potential

We need to assess the readiness of leaders to grow and change…..otherwise we will likely meet resistance or the learner will hit a wall

Change is possible but not without the right raw material.



If it’s so important to know who has the potential and raw material to lead, why do we not get it right?

Typical measures can confuse performance

with potential

Why aren’t today’s measures of potential working?

Managers’ ratings may be biased and evaluate

potential against their own image

Managers often assume ratings are objective if they

are numerical



So what do we do with slower potential individuals? Stop developing them?

Giving them what they want

• A viable career path

• More expertise and knowledge

• Networking

• DEPTH

• Experimentation with their “thing”



Once we know they are ready to develop (they have the potential), then we need to engage

Use context to make it relevant

• Gamify real life

• Exposure to real stakeholders

• (Actual) wicked problems

• Immersive learning in internal / external contexts

• Folding development into the work of the leader

• The laboratory of real life

Effectively integrating into the leader’s work helps make it risky, real, and “un-boring”

Keys to engagement in leadership development



Go beyond the classroom to provide a holistic look at what leaders need to better drive business strategy

Turning “potential to change” into “actual change”…

Expectations

We design experiences that offer leaders the diversity they need to effectively lead your organization (e.g., global, P&L Management) Drive measurable capability

uplift by teaching leaders how to think like experts.

Create immersive exposure for leaders to gain insights and learnings from areas outside the organization (e.g., technology, innovation, digital)

Our framework defines leader expectations

What are the experiences that leaders need to accelerate development?

What do your leaders need to be the best at?

What ideas could change the way your leaders think?



Engage with relevance and variety… And eliminate the “safe space.” Make it high stakes…

Feedback and coaching

Action learning

Leaders as teachers

Market immersions

Development of mental frameworks & cognitive

approaches

Peer coaching

Individual application



Learning new ways of thinking

Rapid prototyping | Immersive

High stakesexposure

Collaborative and inclusiveReal problems | Real risk

Engage with the leader at the center



Rigorous measurementDid this intervention really matter?



Shifting focus to what mattersMoving beyond the basic levels of measurement

Nice to know, but?

The missing link!!

Who cares?

Good on individual level

Was there

business impact?

Did leader performance improve

Did behavior change?

Did the leader learn?

Did the leader like it?



Building the business while we build the benchmeasuring outcomes on 2 levels

Privileged and Confidential

• Customer outcomes

• Operational outcomes

• Growth outcomes

• Innovation outcomes

• People outcomes

Stronger “ready-now” bench Business outcomes

Stronger transformational capabilities

Leaders who challenge the status quo, drive innovation, and create the

business of tomorrow

More context = More relevant measurement

Strongerleadership

Leaders with the capabilities required to succeed in a digital

business contexts



Rigor when experimental control isn’t possible

Example approaches to measuring business impact

Measure impact • if leaders last longer, and revenue holds up, a causal argument can be made that

outcomes are tied to leadership development efforts

Identify variables that can predict business outcomes • a store run by a manager retained through his 4th year earns $500k more revenue

than a store run by a 1st-year manager

Tailor leadership development to help influence these variables • i.e. train 3rd year managers in order to improve engagement or

self-efficacy,• train their managers to engage, motivate, develop, and retain these leaders more

effectively

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