The Critical Role of Behavior in Management Success

1. The Critical Role of Behaviorin Management Success Predicting Success in Management Careers Presentation to the HEC School of Management

2. An Important Observation “Research clearly shows that the vast majority of executives who fail in their job do so because of behavioral or cultural issues, not because of lack of skill or experience. It therefore seems odd that most of the emphasis in business education, succession planning and hiring still focuses almost exclusively on skills and experience.” Warren Bennis

3. Drivers of Management Success Aptitudes Motivation Success X = Knowledge Education Skills Experience Behaviors Leadership Styles Thinking Styles Emotions Values Motives Expectations Situation Strategy Organization Culture/Value System Job Requirements

4. What Styles Are and What Styles Aren’t • It’s all about Situational Fit – no absolute “goods” or “bads” • Different from traditional IQ and Aptitude assessments • Habits of thinking and deciding • Unrelated to general intelligence • Formed through experience • Experience with other people - culture • Direct experience with information and decisions • Styles can and do change • Effectiveness depends on the situation

5. Key Dimensions of Decision Styles • Information Use • Amount of information actuallyused in the process of making decisions and solving problems • Solution Focus • Zeroing-in on a limited number of clear-cut solutions or courses of action vs. identifying multiple solutions and/or alternate courses of action

6. Korn/Ferry Behavioral Assessment Model Dimension I: Information Use High High Maximizer Maximizer Level of Level of Understanding Understanding Satisficer Satisficer Low Low Low Low High High Amount of information Used Amount of information Used

7. Two Faces of StylesLeadership (Interpersonal) Style and Thinking (Task Performance) Style • Leadership Styles • Styles used when people are watching themselves - attempting to behave as they believe they should behave • Thinking Styles • Styles used when people are not watching themselves and not thinking about how they should behave -- when they are focusing on a task or situation or are absorbed in a problem

8. KFI Decision Style Assessment Low/Mod High Task/Action-Focused Intellectual/Complex Thinking Thinking Quick Steady Productive Efficient Quality-oriented Data-driven Thorough Uni-Focused Leadership Leadership Terse Clear Focused Directive Logical Serious Dominant Focus Social/Flexible Participative/Creative Thinking Thinking Exploratory Analytic Creative Patient Intuitive Fast Changeable Adaptive Multi-Focused Leadership Leadership Inquisitive Listening Team-oriented Open Informal Outgoing Humorous Information Use

9. Emotional Competency Definitions • Ambiguity Tolerance: The capacity to deal with uncertainty and unanticipated change • Composure: The capacity to remain cool in the face of adversity or frustration • Confidence: The willingness to take on challenges and risk • Empathy: The ability to objectively perceive other’s strengths and weaknesses • Energy: The capacity to handle demanding tasks without tiring or losing motivation • Humility: The capacity to see or do things in different ways without imposing one’s preferred way

10. Decision Styles: Getting Down to theROOTS of Behavioral Competencies Listening Articulating Ideas Organizing Responding Cooperating Events to Others Communicating Expectations Meeting Resolving Conflicts Adapting Commitments to Change Recognizing Trends Productivity Generating Ideas Initiating Relationships Creativity Planning Delegating Behavioral Competencies DecisionStyle Roots Flexible/ Complex Action Participative Social Style Style Style Style

11. Validation Research • We randomly selected 110,000 managers/executives from our assessment database of over 500,000 individuals • We divided sample into five management levels Supervisor Director Executive – “C” Level Manager Vice President • We split each level into the most and least successful and compared the decision styles of both groups • Key findings • Behavioral competency scores were markedly different between the two groups and between management levels • Successful executives have markedly different leadership and thinking styles • Results offer insights that challenge traditional competency theory – namely, required behavioral competencies differ materially by level and role

12. Leadership Styles by Management Level Most Successful Managers and Executives (N = 21,355) 1.5 1.0 0.5 0.0 Averaged Standardized Assessment Scores -0.5 -1.0 -1.5 Supervisor Manager Director Vice President Executive Task Social Intellectual Participative • Statistical probability that style differences between levels could have occurred by chance (ANOVA results): • Decisive Operating Style = 0.00% • Flexible Operating Style = 0.00% • Hierarchic Operating Style = 0.00% • Integrative Operating Style = 0.00%

13. Thinking Styles by Management Level Most Successful Managers and Executives (N = 21,355) 0.4 0.3 0.2 0.1 0.0 -0.1 Averaged Standardized Assessment Scores -0.2 -0.3 -0.4 -0.5 -0.6 Supervisor Manager Director Vice President Executive Action Flexible Complex Creative • Statistical probability that style differences between levels could have occurred by chance (ANOVA results): • Decisive Operating Style = doesn’t differ significantly between levels • Flexible Operating Style = 0.0% • Hierarchic Operating Style = 1.3% • Integrative Operating Style = 3.4%

14. Leadership Role Styles by Mgmt LevelContrasts: Top 20% vs. Total Sample vs. Bottom 20%

15. Leadership Role Styles by Mgmt LevelContrasts: Top 20% vs. Total Sample vs. Bottom 20%

16. A Multi-Cultural Perspective – Leadership Styles Latin America – Leadership Styles by Mgmt Level North America – Leadership Styles by Mgmt Level UK, Northern & Western Europe - Leadership Styles by Mgmt Level Australia,New Zealand – Leadership Styles by Mgmt Level

17. A Multicultural Perspective – Thinking Styles Latin America – Leadership Styles by Mgmt Level North America – Leadership Styles by Mgmt Level UK, Northern & Western Europe - Leadership Styles by Mgmt Level 0.10 0.08 0.05 0.03 0.00 -0.03 -0.05 -0.08 -0.10 Entry Middle Senior Management Level l Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative) Australia,New Zealand – Leadership Styles by Mgmt Level

18. Matching Values to Organizational Culture The Basis of Cultural Fit

19. Four Different Career Patterns and their Motives • Expert • Life-long focus on one specialty • Expertise • Stability & Security • Competitive • Fast progression up the ladder • Power & Influence • Achievement • Many other motives • Learning • Lateral movement thru different but related occupations • Personal Growth • Creativity • Entrepreneurial • Frequent moves between very different kinds of work • Novelty • Independence • People Involvement

20. Career Concepts & Corporate Cultures Competitive Expert Learning Entrepreneur Strategy Growth Maintain share Diversification Immediate Market share Increase quality based on core targets of technology opportunity Structure Tall pyramid Flat & functional Matrix structure "Ad Hocracy" Narrow span of Broad span of Open systems Temporary control control High involvement teams Valued Cost reduction Accuracy Creativity Speed Leadership skills Reliability Skill diversity Adaptability Performance Logistics mgmt Technical Team skills Recognizing Factors skills expertise opportunities Rewards Promotion Fringe benefits Lateral assignments Cash bonuses Mgmt Tech training Job rotation Special incentives Recognition Education assignments Mgmt training awards Creative latitude Job rotation Budget authority Independence

21. Leadership Style ComparisonSales and Marketing Executive

22. Thinking Style ComparisonSales and Marketing Executive

23. Emotional Profile ComparisonSales and Marketing Executive