Developing Leadership Competencies

1. Developing Leadership Competencies Presented by Nancy Rehbine Zentis, Ph.D. SFLODN, September, 2008

2. Topics • Define Leadership Competency Models • Types of Leadership Competency • Types of Leadership Competency Models • How to Develop a Leadership Competency Model • Baptist Hospital Model • Benefits of a Competency Model • Other tools • Questions and Answers

3. Leadership Competencies • Most major companies have developed formal competency models - which are descriptions of knowledge, skills, and personal characteristics and behaviors needed to perform key elements or responsibilities of the leader’s job

4. Competency Models • Used for a number of purposes: • Assessment of current senior leaders • Identification of high-potential executive talent • Performance Appraisal • Job Benchmarking for Hiring and Selection • Leadership Development

5. Study ConductedBy Cambria Consulting Purpose: Define a Universal Leadership Competency Model • 64 Leadership Models from 22 major companies • 30 Attributes • 30 Practices • 8% Attribute Models • 27% Practice Models • 65% Mixture of Attributes and Practices

6. Two Types of Competencies • Practices - what people do on the job to get results • Example: A leader might ‘set vision and direction, “focus on the customer and Make decisions • Attributes - knowledge, skills and other characteristics and capabilities that people bring to the job that enable them to carry out leadership tasks • Example: A leader might possess strategic thinking, initiative, and high energy as personal attributes

7. Attributes Versus Practices • Attributes are the raw ingredients of performance - they are the capabilities needed by people to do their jobs • Practices are what people do with the attributes they possess are described by observable on-the-job behavior. • Practices also depend on the presence of attributes: for example, one cannot “make tough decisions” (a practice) without a high degree of “self-confidence” (an attribute).

8. Leadership Attributes

9. Leadership Practices

10. Approaches • Comprehensive Approach • Anything deemed necessary worth assessing or observing in a current leader • Comprehensive Models focus on 20 competencies or more to be used for a variety of purposes - job requirements, hiring criteria, development plans • Selective Approach • High Impact Competencies to Differentiate “Outstanding” from “Average” Leaders • Selective Models focus on 10 Competencies to highlight what is most valuable for future success

11. Hybrid Approach • Small Set of Key Leadership Competencies (5 or less) is grafted onto a larger competency dictionary • Key Competencies are viewed as essential for leadership success • Others are essential to anyone in a leadership role

12. Two Categories • Generic • Adopted standard language from pre-existing competency lists - dealing with ambiguity, strategic agility, managerial courage, developing others, valuing diversity • Strategically Informed • Models that have adopted a unique language that models to the organizational culture, more selective and important to the enterprise - Build key relationships, claim the future, provide structure and direction, data driven, foster entrepreneurial thinking

13. Advantage of Strategic Approach • Ability to communicate expectations for leaders throughout the organization in a distinctive way • Reflects the organization’s strategy and culture • Links competencies to business goals and performance outcomes

14. Leadership Practices Research Findings: • Many leadership practices are not universal • Leadership is situational and requires different behaviors • In some models, competencies were identified as critical, in others not mentioned • While “Develop People” was at the top of the list at 58%, “Get Results” not as high

15. Top Practices

16. Top Attributes

17. What’s Missing? • Business Acumen • Financial, Technical or Functional Knowledge • Ambition - Key ingredient of effectiveness: effective leaders want to lead • Why were they missing?

18. Guidelines for Developing Leadership Competencies • Keep them few and simple • Limit to the genuine priorities • Link to capability needs • Identify critical derailer competencies - Lominger does this • Embed throughout systems and processes • Continually revisit staying future focused

19. Developing a Competency Model • Comprehensive Approach • Bench Mark from existing Leadership Competency Models - DDI, PDI, Lominger and match competencies existing leadership positions and business requirements • Identify broad competency categories and supporting competencies • Identify supporting behavior items that support the competency and requirements of the job

20. Developing A Competency Model • Review Purpose of the Job • Conduct Interviews and Focus Group Discussion With Subject Matter Experts • Develop a Job Profile based on the job requirements and business needs now and in the future • Identify Broad Competency Categories • Identify Key Behavioral Requirements - Critical Incidents • Define the behaviors-traits, skills and knowledge needed to successfully perform the job • Define behavioral items that describe the behavior by level • Get Input and Buy-in from Stakeholders • Revise and Approve

21. Competency Development Process 2. Define Job Responsibilities Tied to Business Goals Interview individuals, and managers to identify key responsibilities 1. Review Organization Vision, Mission and Goals Identify key performance outcomes for each position 6. Gain Buy-in Review with SME’s Analyze results and conduct a pilot assessment to determine effectiveness Leadership Competency Model 3. Identify Behavioral Competencies Ask SME’s what behaviors are critical to job success, Level competencies by level of responsibility and define the behaviors 5. Define Competency Categories Define Dimensions, Categories, and develop specific descriptions of the competency 4. Benchmark Ask SMEs to prioritize importance and value of the competencies Conduct research to compare against other models Valid the competencies

22. Benefits of Competency Models • Hiring and Selection • Leadership Assessment • Leadership Development Planning • Leadership Career Path • Performance Management • Succession Planning • Identifying High Potentials

23. Other Resources • Job Benchmarking, Behaviors, Values, and Personal Career Insights/Traits Assessments - Trimex - TTI • 360 Degree Feedback Instruments - 20/20 Insight

24. Q & ASummaryCloseThank You!