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Making Talent Stick – May 2011 www.hrinsight.com.au 1

Making Talent Stick

by Ann Kenna

May 2011

One of the most memorable moments of my corporate career, was the graduation of 25 students from the Breakthrough Leader program in Malaysia in July 2010 for the Wolters Kluwer organisation. The concept of taking a cadre of middle management talent from around the Asia Pacific region and throwing at them some of the organisation’s biggest burning issues was an idea that germinated from my time at General Electric (GE). The John F Welch Leadership Centre, in Crotonville New York, is a reknowned learning institution dedicated to developing leaders. It acts as a central plank in GE’s human resource strategy, and is a global ‘mecca’ for internal and external (client) leadership development. GE’s leadership programs are systematically open to those people who have been slated during the annual Session C (talent management) process as being eligible for further development. Similarly the Wolters Kluwer Asia Pacific Talent Management process precedes the Breakthrough Leader program (BTL), a purpose-‐built program designed for high potential talent. What we have found over the last couple of years of running the BTL program is that intelligent, highly motivated people love solving complex organisational problems and feeling part of the solution. Over the next several paragraphs I will explain the process of blending hipot* development with solving real business problems and the consequential benefits including higher levels of retention. *Hitpot is the short form for ‘high potential’ and used to describe organisational talent defined by 2 criteria (1) stellar performance achieved against agreed goals and (2) future potential with the business


At its core the BTL program is designed to deliver the following business outcomes:

• Develop next generation leaders • Drive real business growth • Build a sustainable culture of innovation, and, • Capitalise on the cultural diversity across the Asia Pacific region

Participants on the BTL program are exposed to the following key learning and growth objectives: 1. Learn & Apply New Skills focused on:

• Business Growth & Innovation • Developing a leadership toolkit (including customer and staff engagement

concepts)

2. Grow and Develop Personally • Understand Personal Style and impact on others • Develop professional networks • Share best practice case studies and breakthrough ideas

3. Tackle a Stretch Assignment

• Work on a business critical issue • Work virtually across regional /functional boundaries • Explore innovative solutions requiring ‘outside the square’ thinking

4. Drive Real Business Outcomes

• Present findings and recommendations to the Senior Leadership Team • Execute project outcomes after receiving a ‘green light’ from the SLT to

proceed Theme 1 -‐ INNOVATION ‘Innovation’ as a central theme strongly influences both the program content and delivery. Constant adaption and refinement of the program ensures that the curriculum continues to be contemporary and align with the strategic direction of the organisation. Concepts explored by Michael Schrage, Research Fellow at the MIT Sloan University, in linking Return on Investment (ROI) to Innovation and to organisational culture continue to influence the program refinement. Read more at http://sloanreview.mit.edu/executive-‐adviser/articles/2009/3/5139/the-‐new-‐faster-‐face-‐of-‐innovation/ .


Schrage reports that the 5x5 concept (taking 5 cross functional teams and charging them to work on 5 business critical projects) in a rapid-‐fire manner is a sustainable way of achieving innovative business outcomes and embedding a culture of innovation within the organisation. He says: “Developing insightful business hypotheses and innovative experiments is important. Developing insightful and innovative people is more important. The 5X5 methodology is more an investment in human capital and capabilities than innovation and experimentation. Successful 5X5s make people more effective innovators. More effective innovators mean more effective innovations. Faster. Better. Cheaper.” Michael Schrage also sites successful outcomes from introducing customers into the process. A natural extension of the BTL program is to “hot-‐bed” ideas with customers to improve delivery experiences, faster output and faster new product development. The below graphic illustrates how breakthrough leadership can be embedded as a business building “process” rather than as a stand-‐alone leadership development “program”. It shows how breakthrough leaders can stimulate real innovation and growth in the business.

Theme 2 – GROWTH Business growth is an imperative element of the BTL program. We found that the Asia Pacific region as a whole was growing at vastly different rates. India and China exponentially and the more mature markets were struggling to deliver their growth targets. The BTL program highlighted an opportunity to bring together hipot talent from across these broad and diverse markets to help solve critical business issues. The synergy and chemistry that the BTL program creates tends to throw up ideas, issues and challenges previously not surfaced. By blending strong domain


knowledge with high levels of motivation across mature and emerging markets we have seen powerful growth opportunities emerge. ‘Business’ growth agenda items within the BTL workshop include:

• Examples of successful in-‐house business cases • Developing and presenting a compelling business case • Driving growth through higher levels of staff and customer engagement

At the outset ‘growth’ was defined as business growth. However as we explored the agenda we realised that a critical outcome was also “personal growth”. ‘Personal’ growth agenda items of the workshop include:

• 360 degree assessment and feedback • Working in ‘virtual’ teams across multinational borders • Strategies for building personal resilience and process mastery • Networking with like-‐minded people from around the region

Importantly, the BTL program reinforces key messages about investing in people, not only to develop better leaders but also as a genuine way of driving future growth. Theme 3 – DIVERSITY As we handed out graduation certificates at the conclusion of the 2010 workshop, I was struck by the diversity of the group. The program brought together executives from China, India, Hong Kong, Malaysia, Singapore, Australia and New Zealand. Whist most organisations strive for global best practice there is a geographic advantage (and proximity) of regional learning opportunities across Asia Pacific. Our experiences from the BTL program suggest that participants are genuinely eager to learn from each other, and that geographic proximity and willingness to learn and work together can certainly be leveraged. This quote from an Australian participant captured this diversity beautifully, “ I was able to experience and witness the cultural differences between the offices. Coming together trying to think as one, and you have different methods of working, different approaches to managing, and different ways of relating to each other. Once we were able to get past all this, we could achieve great things. “


Linking Top Talent with Leadership Development In the following process flow I will demonstrate how the program has evolved and continues to be refined as a contemporary way of solving business problems and developing leadership talent simultaneously.

Step 1 -‐ Identify Top Talent A precursor to Step One is the organisational Talent Management (TM) process. The TM process can be defined as “the analysis of the strategic flow of people through an organisation designed to differentiate and develop people”. Below is an example of the performance bell curve of an organisation used to differentiate “A” players, also referred to as Top 20 or “hipots”.


A quote from Jack Welch, former CEO General Electric sums up the process, “In manufacturing we try to stamp out variance. However, with people, variation is everything.” The below grid can be used to plot executives and highlight those people who demonstrate high levels of performance as well as high levels of future potential or “run-‐way” with the business. The BTL process is one of the options that can be deployed to stretch and promote A-‐Players. A “long list” of potential BTL candidates is compiled from the A Player list identified through this mapping process. It is certainly beneficial if the TM and BTL processes are ingrained within the organisational operating cycle and culture. This way line managers feel the ownership of identifying and developing future leaders. This should not be something owned by HR but rather deeply embedded in line management culture.

Step 2 – Qualify Participants (via entry Applications) The ideal number of participants for the BTL program is a maximum of 25 people, which allows for up to 5 projects with up to 5 people working on each project. Once a “long list” of high potential participants has been identified the next step is to cull this list down to the final 25. One way to achieve this is to ask each of the ‘long list’ people to submit an application. This application submission must include a 300 word essay expressing their (1) vision for the company for the future, (2) their role in helping make this vision a reality and (3) how they might go about achieving this.


The quality of the application is used to determine the candidates (1) insight into the business (2) overall interest in participating (3) willingness to undertake a ‘stretch’ project in addition to their day job, and (4) interest in personal learning & growth. A selection committee comprising of 3 senior executives is required to read, assess and rank each application. Applications are bundled into 3 categories: 1. “Yes” – this is an innovative and visionary story expressed in a clear and compelling fashion 2. “No” – there is no vision evident nor identification with the current vision and/or poorly expressed (allowances are made for non-‐English speakers) 3. “Maybe” – there are gaps in expressing a clear vision or identifying with the current vision. From a participant’s perspective, being nominated by your line manager is a sign of achievement and recognition and builds a level of status within the organisation. Line managers are required to communicate to those who have been successful as well as those who have not been successful. Both the TM process and the BTL application process equips line managers with relevant material which can be woven into performance / career feedback conversations. Coaching line managers to undertake this work could also be an outcome of this program to ensure that these feedback / coaching opportunities are not squandered. This “qualification” process serves to narrow the group into a bunch of highly motivated participants who have a vision and are passionate about making a difference within the business. Some emerging research correlating a deep personal burning ambition with successful business transformations has emerged from the work of Peter Fuda. In his White Paper entitled, ”Leadership Transformation: Creating Alignment from the Inside Out” Peter Fuda he defines a burning ambition as “the motivational forces that initiate and sustain transformational efforts”. Read more at http://www.tap.net.au/. The BTL program is designed to attract and retain people who possess this personal ambition, to achieve great outcomes and who are not afraid to try something different, to try to transform the business in some way. Step 3 – Select & Invite Participants After the final 25 participants have been selected, written invitations are extended either by the CEO or Head of HR. The excitement starts to build, participants are ‘outed’ and a general buzz of anticipation grows.


Over time the program becomes quite prestigious, with people aspiring to be invited. The BTL quietly builds a cohort (alumni) group that becomes a powerful and ongoing network enabling contact to be maintained long after the program has ended. Step 4 – Confirm Business Critical Project Topics Line Manager input is critical at numerous parts of the BTL process including the selection of project topics – those ‘burning’ issues that lie unresolved by the Senior Leadership Team (SLT). Choice of project topics is very important given that non-‐critical or irrelevant topics will dilute the program’s impact. Projects that go on “wild goose chases” inevitably de-‐motivate participants and lead to low value outcomes. Final topics should be confirmed by the CEO and/or the SLT. Ensuring that business critical issues are linked to successful program outcomes is also tangible evidence of Return on Investment (ROI). Step 5 – Refresh & Run Workshop Workshop designers and facilitators need to link learning content with the burning issues of the day identified by the SLT. State-‐of-‐the-‐art content and high impact delivery will ensure the program remains relevant, innovative and the cornerstone of the organisation’s talent management strategy. Core Components of Workshop 1. Breakthrough Thinking: Whist creativity is certainly not the exclusive domain of the Top 20, it is particularly relevant to this workshop. Highlighting the importance of ‘random thinking’ and experimentation is tremendously beneficial for workshop outcomes as well as creating a positive influence of on corporate culture. To emphasis this we use “breakthrough leadership” concepts drawn from the work of Bart Sayle & Surinder Kumar in their book “Riding the Blue Train”. Their research distils breakthrough competencies into 5 distinguishing features as highlighted below:

• Distinction # 1: Lead People by Enrolment and Engagement • Distinction # 2: Live the Vision Now • Distinction # 3: Raise Standards • Distinction # 4: Are Leaders, Managers and Coaches


• Distinction # 5: Create Leaders Read more at http://www.amazon.com/Riding-‐Blue-‐Train-‐Leadership-‐Explosive/dp/1591841356 We ask the group to demonstrate “blue train” thinking (upper quadrants) and refrain from using the “red train” thinking (lower quadrants) as illustrated below. We also realise that most large organisations inadvertently build up layers of rules (written & unwritten) and protocols. This program is designed to rail against this bureaucracy – perpetuating a cycle of creativity and innovation. 2. Self Reflection and Self-‐Awareness: Another critical element of the program is for participants to understand the impact their actions and words have on other people. This is particularly important for people working in (or moving into) team leader roles. To achieve this element of self-‐reflection we use the TMS instrument which is a proven global work-‐based tool proven to effect positive and lasting change and achieve higher performance in the workplace. Read more at http://www.tms.com.au/. We ask participants to digest the feedback on their own styles / work preferences and then compare and contrast to those around them. This forms a base-‐line of understanding of what it takes to be more effective at work and provides the ground work for working together as a team -‐ something that is required of them during their project execution.


3. Business-‐Critical Projects Project topics are “unveiled” about half way through the program and participants are asked to self-‐select their areas of interest. Example topics could include:

• Adapting an existing product for an emerging market • Achieving a higher level of customer engagement • Taking cost out of the supply chain

Several tools, templates and project management techniques are introduced to help expedite the project work. These tips are particularly helpful in overcoming diversity and remote working. We have found that having 2-‐3 people co-‐located is beneficial and assists in kick-‐starting project momentum. 4. Line Manager Involvement The BTL workshop can be peppered with line manager involvement including:

• Guest speaker slots • Sponsorship of project teams • Coaching guidance

It is essential that invited senior managers do not inhibit the random thought processes or dominate team conversations. It is critical that delegates are free to talk openly and contribute freely, without fear of being wrong or being ‘trumped’ by a more experienced senior manager. A wonderful “by-‐product” of the workshop is an opportunity for senior leaders to interact closely with participants in a non-‐work environment fostering a rich dialogue and insight (on both sides). Participant feedback has reinforced the benefits of having this close informal personal contact. Similarly, line manager feedback has reinforced the benefits of having the opportunity to observe hipots in action. Step 6 – Project Teams at work After the workshop has concluded, project teams are released to work on their respective topics with the aim of reporting back to the SLT in 6 weeks time with their findings and recommendations. These “stretch” projects need to be completed in addition to their regular jobs. It can therefore be a very testing time for participants and often coaching support from the Executive Sponsor is beneficial.


Team roles, sharepoint sites, scheduled conference calls and agendas are established for the project duration. The role of the Executive Sponsor during this time is to act as a sounding board, a reference point for domain knowledge, ‘course correct’ if required, and vetting the final presentation to the SLT. Step 7 – Presentations to Senior Leadership Team Each group selects one or more spokespersons for their presentation. This is a relatively “high-‐stakes” role which can strongly influence the views of the SLT – both on quality of the recommendations and the person presenting them. Presentation skill training (often by the executive sponsor) is another learning outcome of the BTL process. SLT presentations are each limited to 20 minutes duration with a 10 minute Q&A time at the conclusion. The executive sponsor also can play a vital role in reinforcing the salient points to the SLT and linking project findings back to burning organisational issues. Step 8 – SLT Discussion & Decisions The SLT evaluates and discusses each of the group findings and recommendations, providing vital feedback to the CEO. This discussion and debate is ‘guidance’ to the CEO who is responsible for providing feedback to each of the project teams. SLT engagement is critical to ensure that “seed money” is directed into the most relevant and strategically important areas. Step 9 – Feedback to Project Team The project teams will have spent a considerable amount of time working on the research, analysis, findings and preparation of their presentation. It is therefore important that the CEO recognises this and provides timely and insightful feedback. Executive sponsor feedback to the team, and individuals within the team, is also encouraged. Step 10 – Invest to Grow Investment funding is made available for project recommendations deemed to be most aligned to the organisational strategic direction and focus.


Step 11 – Communicate Achievement & Key Milestones This is not really a step as much as it is a function of the entire process. Regular communication helps build excitement and momentum around the BTL program itself, however more broadly within the organisation it drives:

• Insight into the project work* being done • Knowledge that can be leveraged and, where relevant, adopted in other

areas of the business • Reinforces innovation as a cultural plank • Aligns project work to strategic imperatives • Promotes the BTL process as a way of enriching your career • Builds ‘prestige’ for current, past and future participants

*a level of confidentially may be required for market / product sensitive material

Benefits of the BTL Process We believe that the BTL process drives to the heart of achieving higher levels of staff engagement, particularly in the middle management ranks of the organisation. Participant feedback from our programs has shown a higher level of engagement in the business and a particular improvement in:

• Saying good things about the company • Staying longer with the company • Striving to do their best work everyday

These three issues (Saying / Staying and Striving) are the three activities deemed to have the highest correlation with employee engagement as researched by the Hewitt organisation. Through their extensive research, the Hewitt organisation has proven a direct correlation between staff engagement and business success (revenue growth and profitability). Organisations that score highest across a number of survey dimensions are deemed “Best Employers”. These companies grow at twice the industry average (see below chart). Read more at http://was2.hewitt.com/bestemployers/pages/index.htm


Source: Hewitt Best Employers in ANZ, 2009/2010

In their 2009/10 study Hewitt have determined that Best Employers excel by the fact that they: 1. Exhibit effective & authentic leadership even in uncertain times 2. Innovate to develop their leaders and people 3. Manage their external reputation through their internal brand 4. Relentlessly manage performance 5. Genuinely value all of their staff A few compelling Best Employer quotes include: “The hearts and minds of our staff are actually what we take to market” Steve Nola, CEO, Dimension Data “From a leadership perspective the way we manage the brand reputation is by getting these high Engagement levels from our staff, because they are our brand and they’re what our customers and our suppliers experience” Ross Cochrane, CEO, Express Data. Similarly, we believe that the best Net Promoters* of company brand are employees. We believe that customers who promote your brand (due to phenomenal service levels they have received) are no different than staff who promote their organisation as a great place to work thereby perpetuating a net promoter cycle. *Net Promoter is a term invented by Fred Reichheld which refers to a measure of customer loyalty. Read more at http://www.theultimatequestion.com/theultimatequestion/home.asp


We believe that the BTL process is a powerful way of converting participants into company advocates, and organisations into Employers of Choice. The benefits here are mutual and represent a “win-‐win” outcome for both employees and employers. Connecting high performing, high potential talent to resolving real business issues has a number of key benefits including:

• Future leaders have a stake in the future success of the business • Learning and innovation concepts convert into faster new product

development, more rapid business growth and a sustainable culture of creativity

• Leaders of the future are created using contemporary lessons and case studies tailored to the strategic direction

• Participants develop a life-‐long network (and alumni) of highly capable executives

• Attracting and retaining the best talent by promoting a unique and powerful employee value proposition.

As this paper highlights, the BTL process has varied and wide-‐reaching benefits for key stakeholders including staff, customers and shareholders. For more information on creating value in your organisation by putting breakthrough leaders to work please contact: Ann Kenna Principal hrINSIGHT E: [email protected] W: www.hrinsight.com.au

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