Leadership Development

1. Leadership Development AM Strategy PM Activity

2. Leadership Development - Strategy Leadership in Organisations edited by Professor John Storey , OU Business School (2004) identifies: A cluster of five, core enduring themes of leadership Industry/organisational Context Development Methods (and Evaluation) Perceived Leadership Need Behavioural Requirements Capabilities

3. Industry/Organisational Context • Economic climate • Industry sector • Cross cultural implications

4. Perceived Leadership Need • Key stakeholders • Leaders perpetuating the myth • Emulation

5. Behavioural Requirements and Capabilities (1) • Various ‘flavours’ of required leadership behaviours, depending on the theorist: • Meta-Capabilities of Leadership • John Storey (2004) (OU) • Essentialist Leadership • Bennis and Thomas (2002) (Harvard) • Incipient Leadership Model • Fullan (2001) • Learning Leadership • Boal and Hooijberg (2000)

6. Behavioural Requirements and Capabilities (2) • Meta-capabilities of Leadership, John Storey (2004) Big Picture Sensemaking Ability to Deliver Change Inter-Organisational Representation

7. Behavioural Requirements and Capabilities (3) • Essentialist Leadership, Bennis & Thomas (2002) • Summary: • The essence of leadership is to be ‘discovered’ within the attributes of exceptional individuals found to be occupying leader positions. • One of the most reliable indicators and predicators of ‘true leadership’ is an individual’s ability to find meaning in negative situations and learn from trying experiences. • Four leadership crucibles: • The ability to engage others in a shared meaning • A distinctive and compelling voice • A sense of integrity • Adaptive capacity (an almost magical ability to transcend adversity, with all of its attendant stresses, and to emerge stronger than before)

8. Behavioural Requirements and Capabilities (4) • Incipient Leadership Model, Fullan (2001) • Embedded learning • Devolved leadership in teams • Learning as a product of conflict, experimentation and false starts • Learning Leadership, Boal and Hooijberg (2000) • The capacity to learn • The capacity to change • Managerial wisdom

9. The Merging Leader/Manager Agenda? • “WE ALL KNOW THAT MANAGERS WHO DON’T LEAD ARE BORING, DISPIRITING, WELL, LEADERS WHO DON’T MANAGE ARE DISTANT, DISCONNECTED.” • “LEADERS ENGAGE OTHERS BY ENGAGING THEMSELVES: COMMIT TO THEIR INDUSTRY, THEIR COMPANY, THEIR JOB. Henry Mintzberg – Enough Leadership, Harvard Business Review, November 2004

10. Discussion Exercise 1 • What methods do your organisations use to describe required leadership capabilities, and to what extent do these descriptions reflect latest theoretical thinking? • How well do your organisations factor in business / stakeholder considerations when describing required leadership capabilities? • How do your organisations identify the current capabilities and development requirements of your leaders? How effective are these methods?

11. Discussion Exercise 1 - Flipcharts • Group One: • Core list of competencies which are great on paper however perhaps not so in practice. • Organisational values translated into competency models - however models can be limiting/too generic. • If you can ensure revenues or obtain clients or projects you are rewarded with a leadership role regardless of your leadership capabilities. • If you can claim that you are self aware -(admit your own deficiencies) sometimes this is enough to move you into a leadership role although you do nothing to work on these deficiencies. • Leaders are sometimes chosen for a specific job ie merger or acquisition due to the necessity of this skill at a particular moment in time for an organisation to develop and/or survive. • Group Two: • Wanadoo appear to have effective methods for leadership development as highlighted in our last session on Talent Management. • IBM have different career paths including promotion for technical expertise without the need to lead people – are known as technical architects who are regarded as key leaders within their specific field of expertise. • Informal ways of assessing leadership by tapping into the grapevine; also the "suck it and see" approach - hoping that leaders will emerge. • Staff surveys gauge what the followers of leaders think. • Group Three: • Stakeholders - are they the right ones? are their contributions weighted? is it an issue of stakeholder confidence, gravitas/influence? • Do we need all managers to be leaders? • Do we need technical experts as leaders? • Characteristics of leaders: self awareness, trust, risk taking, • communication, non complaint, reluctance to learn from others (?), charismatic.

12. Leadership Development - Activity BEST PRACTICE IN BUSINESS LEADERSHIP DEVELOPMENT • BEGIN WITH THE END IN MIND – CLEAR OBJECTIVES, WHAT IS IT THAT YOU WANT YOUR LEADERS TO DO, WHAT SKILLS THEY WILL NEED, ESTABLISH CLEAR COMPETENCES • BUSINESS STRATEGY MUST BE THE BASIS OF LEADERSHIP DEVELOPMENT • EVALUATION – THE END RESULT SHOULD BE IMPROVED BUSINESS PERFORMANCE

13. HOW DO YOU ACHIEVE SUCCESSFUL LEADERSHIP? • ENSURE THE EXECUTIVE LEVEL AND POTENTIAL LEADERS WITHIN THE ORGANISATION HAVE COMPLETE BUY IN, INVOLVE AT INCEPTION • ENSURE THAT THE DEVELOPMENT METHODS USED ARE APPROPRIATE FOR YOUR BUSINESS AND NOT JUST FLAVOUR OF THE MONTH! • ENSURE THAT YOU LOOK AT THE LEADERSHIP PIPELINE AND THEREFORE LOOK AT TARGET POPULATION AND DEVELOPMENT CONTENT

14. The Leadership Pipeline Best Practice for Building v Buying By: Ram Charan, Stephen Drotter, James Noel

15. The Leadership Pipeline Enterprise Manager Group Manager Passage Six Passage Five Business Manager Passage Four Functional Manager Passage Three Manages Managers Passage Two Manages Others Passage One Manages Self

16. Assumptions • Future potential is based on • accumulated skills and experiences, • ability to learn new skills and • willingness to tackle bigger, more complex work assignments • Successful leaders • add appropriate skills as they move up the leadership hierarchy • spend their time on different things as they as they transition and • change their perspective about what is important (new work values) as they move up the leadership ladder

17. Skills: Planning work, assigning work, motivating, coaching, and measuring the work of others Time applications: Making time for planning & helping others perform effectively First Leadership Passage • Work values: Making others productive

18. Skills: Selecting people for managerial roles, assigning managerial work, identifying resistance to managerial work, coaching them, and measuring their progress as managers Time applications: Deploying resources among managers, managing the boundaries that separate units that report directly Second Leadership Passage • Work values: • Empowering first-line managers

19. Skills: Functional strategic thinking, communicating with a multiple layer group, balancing team play and competition for resources with other functions, understanding the business model Time applications: Managing upward and horizontally, developing networks that reach across functions, participating in cross-functional business team meetings, and learning about functional areas for which they have never been resp. Third Leadership Passage • Work values: Valuing work that is unfamiliar

20. Skills: Business strategic thinking, managing cost and revenue, balancing short-term profitability with long-term planning, assembling a strong team, connecting all the dots (managing the complexity) Time applications: Building a business strategy and integrating functional work Fourth Leadership Passage • Work values: Valuing all functions appropriately (especially staff functions)

21. Skills: Holistic thinking, managing cost & revenue & capital allocation, assessing bus. managers, their teams and their cultures, managing stakeholders (industry, community, government, etc.), monitoring compliance with corporate values and policies, and portfolio strategy management Time applications: Spending time with functional managers Fifth Leadership Passage Work values: Valuing all functions appropriately

22. Skills: Visionary thinking, ability to sense external shifts and proactively respond, converting learning into practice, identifying best ideas and translating them into tools and programs Time applications: Diagnosing whether the organisation is performing at full potential, managing three or four key objectives Sixth Leadership Passage • Work values: Valuing slow, evolutionary results, valuing the advice offered by boards

23. Methods of Leadership Development • Workshop Based: • Learning about leadership and understanding organisations • Self analysis, team analysis and exploration of leadership styles • Experiential learning and stimulation • Strategy events and business schools • Based ‘on the job’: • Mentoring and executive coaching • 360 feedback and performance management • Secondments and projects • Experience!

24. Frequency of Leadership Development • Work Foundation Survey – 221 organisations – 2003 • 25% of CEOs and Board Members had received leadership development • 50% of Junior Managers had received leadership development

25. How Effective are Leadership Development Methods?(Bailey and Butcher, Cranfield University: international survey – 271 execs - 2002) • Method Frequently Used % High Value % Internal business projects 47 73 In company development programmes 45 53 Internal coaching/mentoring 45 69 Business school development programme 27 57 External coaching/mentoring 25 71 Observation of business leaders 15 44 External business projects 13 46

26. Discussion Exercise 2 • What are we doing well in developing our leaders? • What are we doing less well? • What three methods or experiences have most shaped your own leadership development? Capture and rank these as a group. • How could we improve the evaluation of the impact of our leadership development activity?

27. Discussion Exercise 2 - Flipcharts • What are we doing well in developing our leaders? • On the agenda • Happening at all levels • Experiential learning; learn by doing • Psychometrics • Coaching • Not ‘one size fits all (shades of grey – not black and white) • What three methods or experiences have most shaped your own leadership development? Capture and rank these as a group. • Personal crisis** • Access my intuition and my spiritual awakening** • Mentors ** • My biggest f…..up • 360 degree feedback and PDP • Action learning set • Reflection • Secondment/shadowing • Investing in Excellence - programme • How could we improve the evaluation of the impact of our leadership development activity? • Establish in advance what the client wants to measure – manage client expectations • Dialogue – face-to-face • Evaluating throughout the programme – modular course • 360 degree feedback pre and post the course – including self • Employee/other internal sureys • Recognising interdependencies • Going through objective setting and evaluation has a benefit in itself