Global Leadership Forecast 2011 Delaware SHRM April 10, 2012

1. Global Leadership Forecast 2011 Delaware SHRM April 10, 2012 The Talent Management Expert

2. HR Leadership Development Effectiveness 33% 2006 34% 2011 29% 2009

3. 38% 37% 2009 2011 LeadershipQuality HR 25%

4. HR Future Bench Strength 18%

5. Leadership Quality Impacts…

6. 66% Confidence of Future Business Success 4% Low Leadership Quality High Leadership Quality

7. 70% Retention 24% Low Leadership Quality High Leadership Quality

8. Engagement 50% 9% Low Leadership Quality High Leadership Quality

9. Financial performance 2.8x Customer satisfaction 4.6x Productivity 4.7x Quality of services 4.4x The bottom line 52% 13% Low Leadership Quality High Leadership Quality

10. Passion 53% 7% Low Leadership Quality High Leadership Quality

11. 50%better Performance:Top vs. Average

12. Time for a (R)evolution!

13. About the Global Leadership Forecast 1,897 HR Professionals 12,423 Leaders 2,679 Organizations 74 Countries

14. Leadership Development Talent Systems & Practices Enhanced People Outcomes Enhanced Business Impact Quality of Leadership Management Culture

15. Leadership Development Development Matters Talent Systems & Practices Management Culture

16. 62% EffectiveDevelopment = Quality Leadership 13% Low Development Effectiveness High Development Effectiveness

17. Leadership Development:What works today, maynot work tomorrow

18. Top Five PastCritical Skills Driving & managing change Executing organizational strategy Coaching & developing others Making difficult decisions Improving employee engagement

19. Top FiveFutureCritical Skills Driving & managing change Identifying/developing future talent Fostering creativity & innovation Coaching & developing others Executing organizational strategy

20. Leadership Skill Effectiveness: 50 / 50 Value Proposition

21. “Our CEO coined how we need to think about innovation. He said, ‘I’d rather be 8 and 2 than 2 and 0 in terms of willingness to try out something new’”.

22. Up The ValueChain Innovation Important 95% 90% 89% 72% Budget Increases 80% 82% 73% 49% Boston Consulting Group 2010

23. (R)Evolution Point 1A Leaders Role in Innovation

24. The Leader’s Role in Innovation Innovation Challenges Culture of Innovation Lack of Understanding Stakeholders Question Assumptions Inspire Curiosity Challenge Current Perspectives Lackluster Ideas Think Differently Aversion to Risk Create Freedom Experiment Failure to Execute Drive Discipline Get Things Done Leader Team Members

25. Effectiveness of Development Methods Formal classroom training Special projects or assignments Coaching from your manager Moving positions Coaching from internal coaches Web-based learning Coaching from external coaches Virtual classroom

26. HR Organizations that have effective programs use more methods. 32%

27. (R)Evolution Point 2Learning: From Event to Journey

28. 10~20~70 ON-THE-JOB FORMAL COACHING

29. Learning Mash-Up April-June July-September October-December January-March OrientationKick Off Formal Learning Action Learning Action Learning Action Learning Core Curriculum 2 Cultivating Networks & Partnerships Making Change Happen Learning through Transitions 3 days Core Curriculum 1 Challenges of Transitions Mastering EQ Influencing Courage 3 days Core Curriculum 3 Building High-Performing Teams Driving Innovation Supporting Leadership Development 2 days • Assessment: 360 and personality Inventories • Prework • Action Learning Kickoff Coaching Coaching Coaching DevelopmentPlanningMeetings (DDI Coach, Boss, Mentor) DevelopmentPlanningMeetings (DDI Coach, Boss, Mentor) Repeat 360 to Assess Behavior Change Informal Learning, Feedback, and On-the-job Experience Job Growth Experiences Manager/Sr. Leader Kick-Off Webinar Leader Blog: What leadership means to participant, how they will use new skills Discussion Board: Participants seek feedback from BU leaders on ideas, best practices Wikis: Tying leadership skills to business outcomes – how do they link together? Ongoing Feedback and Support = Assessments, Targeted Personal Development Focus = Action Learning & Ongoing Development = Core Curriculum = Learning 2.0 components

30. Talent Management Matters Talent Systems & Practices Leadership Development Management Culture

31. HR Firing on all cylinders 30% Programs & learning for mid-level leaders 76% 33% Programs & learning for senior leaders 74% 31% Programs & learning for frontline leaders 68% 31% Leadership Selection 79% 42% Performance Management 77% 22% Leadership Succession Future Importance 77% Current Effectiveness

32. Development Can’t Fix Everything • High • Customer focus • Developingstrong teams • Executingstrategy • Building future talent • Communicating with impact • Moderate • Risk-taker • Letting go • Making sounddecisions Low • Arrogance • Inquisitive • Ambitious • Volatile • Learning Orientation • Results Driven Select Develop

33. HR Hiring Failures: 1 in 3 External Internal Success Failure

34. 81% Tied to corporate goals Performance Management 69% Balanced between “whats” and “hows” 56% Discussions provide clear direction for development

35. HR Succession 18% Rate Bench Strength Strong

37. 64%of leaders made a leadership transition in the past 5 years BUT ONLY 26%of organizations have effective programs to ensure smooth leadership transitions

38. (R)evolution Point 3Get it Right: Identifying Potential

39. There’s a Difference Performance How one is performingnow in current role Potential One’s likelihood of leadership growth Readiness One’s fit with a specific role, job or job family

40. HR LeadershipPotential 50% 44% 39% 37% Growth of High Potentials Identification of High Potentials 2009 2011

41. HR Best Practices 88% 19% 87% 19% 60% 13% 48% 8% 46% 3% 43% 3% Organizations with effective talent management systems Organizations with ineffective talent management systems

42. Culture Matters Leadership Development Talent Systems & Practices Management Culture

44. “Right now, your company has 21st century Internet-enabled business processes, mid-20th-century management processes, all built atop 19th-century management principles.” Gary Hamel

45. Bureaucracy of management processes • Values that are not meaningful • Influence based on position power • Innovation opportunities for select few • Decisions are held closely by those in power • Rigid structure • Power held by those who value status quo • Goals only focus on bottom-line growth Management Culture Killers

46. Culture Impacts Passion 81% 57% 29% Low effectiveness of management culture Medium effectiveness of management culture High effectiveness of management culture

47. 51% 31% Culture Impacts The bottom line 17% Low effectiveness of management culture Medium effectiveness of management culture High effectiveness of management culture

48. (R)evolution Point 4Innovating the Way We Manage

49. Management processes are a competitive advantage • Values are shared and meaningful • Merit-based influence • Innovation opportunities for all • Strategic decisions open for discussion • Flexible, nimble structure • Power held by those who value innovation • Goals of growth, sustainability, and social significance Management Culture Revolutionized

50. Reflection