Business is waiting for leaders with a new set of leadership competencies

Leaders for Today – Leaders for TomorrowLeadership competencies of Polish managers

Iwona Georgijew, Partner, Deloitte, SheXO Club Leader

Prof. Beata Krzywosz-Rynkiewicz, Psychologist, University of Warmia

and Mazury in Olsztyn

Wiesław Thor, Advisor to the Management Board of Deloitte

2 July 2014

Presentation of Deloitte’s Survey Findings

2© 2014 Deloitte Poland

Introduction

The world after the crisis 3

New competency model 4

Methodology 6

Findings

• Management Board 7

- Which competencies matter? 7

- What is the level of managers’ competencies? 8

- How does the importance of managers’ competencies translate into their level? 11

• Supervisory Board 12

- Which competencies matter? 12

- What is the level of managers’ competencies? 13

- How does the importance of managers’ competencies translate into their level? 14

• Competencies of the management board vs. competencies of the supervisory board 15

• Men and women in management and supervisory boards 16

Key findings 20

Contents


IntroductionThe world after the crisis• International surveys* support the thesis about the changed lifestyle and values in the post-

crisis world, where the level of anxiety is growing and the level of confidence is falling.

• Since the outbreak of the crisis, only one in four companies has been enjoying the confidence of the public, voicing its disappointment both with governments and enterprises (86% of respondents)*.

• Such processes are redefining the meaning of leaders and their role in the business, politics and society.

• The demands placed on management and supervisory boards in the new reality are growing. Not only are they expected to demonstrate knowledge of and commitment to maximizing the company’s financial performance but also to show an understanding of its standing in a broad business context.

• The world needs leaders capable of securing the future of the company, leading change and developing talents.

• Stronger emphasis is being placed on the scope of responsibility of management and supervisory board members, while the impact of the market and consumers expecting increased commitment to building responsible business is rising.

Source: *Gerzema J., D’Antonio M., The Athena Doctrine, Jossey-Bass a Willey Imprint, 2013

4

LOREM IPSUM DOLOR This is dummy text it is not here to be read. The is just text to show where you could insert text. This is dummy text it is not here to be read. This is dummy text it is not here to be read. The is just text to show where you could insert text. This is dummy text it is not here to be read.

New Leadership Competency ModelKey Competencies

© 2014 Deloitte Poland

A BROAD PERSPECTIVEtakes a broad business view of the firm; is able to assess its growth potential and spot the possible constraints; understands market trends and uses them to develop business

A FINANCIAL PERSPECTIVEuses financial analysis to assess strategic business opportunities and to take major decisions concerning the operations of the firm

CREATION AND FULFILMENT OF VISIONhas clear vision of the organization and is passionate and determined about pursuing it; translates that vision into a coherent business strategy, clear objectives and action plans

FOCUS ON GOODWILL GROWTHstrongly focused on the success and development of the organization and building its value in the market; sets ambitious goals and strives to achieve them; identifies new business opportunities and uses them to achieve competitive advantage; supports innovative solutions

• Tool defining leadership today

• Ten competencies expected of today’s and future leaders

5

New Leadership Competency ModelKey Competencies

© 2014 Deloitte Poland

DEVELOPING EFFECTIVE RELATIONSdevelops a network of effective relationships inside and outside the organization; adopts ethical and credible methods; is a reliable partner whose words are consistent with actions

FLEXIBILITY OF ACTIONworks productively, also under stress and pressure; is able to adapt to new business conditions; demonstrates high emotional intelligence even in uncertainty.

IMPACTpresents his/her ideas in a clear and convincing manner and shares his/her business development vision; provides thought leadership and exerts actual influence on opinions and actions of others; involves others in idea development and project performance; is passionate, energizing and committed

TALENT NURTURINGcreates a positive atmosphere and good environment for cooperation and growth; identifies and develops talents; develops next generations of leaders by delegating tasks and sharing responsibilities

CHANGE LEADERSHIPidentifies and promotes benefits drawn from change; initiates changes in the organization; drives a positive attitude to change; is able to assess the risks and takes responsibility for counteracting the negative consequences associated with change

BUILDING A VALUE-BASED ORGANIZATIONfocuses on driving business stability in the long-term perspective based on diversity, ethical and responsibility principles


• Stage 1: online survey conducted on a sample of 172 different-level managers (management board and supervisory board members, top, middle and junior management) representing the major companies on the Polish market, between April and May 2014. Men represented 49% and women 51% of the whole population. The length of service of 75% of the respondents exceeded 8 years.

• Stage 2: nationwide survey conducted in April 2014 on a representative, random quota sample of 1,100 respondents being more than 18 years of age, using the Computer Assisted Telephone Interview (CATI) method*.

• Stage 3: in-depth individual interviews with 6 top-level managers, conducted in May and June 2014.

*Omnibus survey conducted by Homo Homini Instytut Badania Opinii at the request of Deloitte

Leadership Competency SurveyMethodology


FindingsFrom the perspective of managers, strategic competencies are key for management board members• As the survey shows, nearly 90% of managers believe that competencies such as a broad perspective, change leadership

and financial perspective are critical for management board members.

• The opinions expressed by the market and consumers are similar. According to the respondents, strategic competencies, which are based on a thorough understanding of the company’s standing in a broad business context, are of key importance.

Importance of management board member competencies according to managers

Focus on goodwill growth

Impact

Talent nurturing

Flexibility of action

Developing effective relations

Building a value-based organization

Creation and fulfilment of vision

Financial perspective

Change leadership

Broad perspective

0% 20% 40% 60% 80% 100%

19%

23%

23%

28%

28%

31%

40%

41%

44%

49%

61%

63%

51%

58%

55%

53%

48%

49%

47%

49%

18%

13%

23%

14%

17%

15%

11%

10%

8%

Critical Highly important Of medium importance Of little importance Unimportant


FindingsCompetencies related to maximizing financial performance are the greatest strength of management boards • Competencies which directly translate into maximized financial performance are the major strength of Polish management

board members. On the other hand, the ability to build the company’s social capital and employee commitment seem to be in short supply.

• The rating given to leadership competencies related, in particular, to team building, is considerably lower.

Level of management board member competencies according to managers

Talent nurturing



Impact


Change leadership




Broad perspective

0% 20% 40% 60% 80% 100%

9%

13%

13%

13%

15%

16%

19%

23%

23%

25%

25%

47%

34%

39%

39%

37%

29%

47%

53%

44%

38%

31%

35%

31%

35%

32%

32%

21%

15%

23%

25%

8%

15%

13%

8%

12%

15%

8%

8%

7%

Very high High Average Low Very low


FindingsThe higher the manager’s position, the higher the rating of management board member competencies• The higher the manager’s position, the higher his/her rating of management board member competencies: the rating given

to management board member competencies by lower-level managers tends to be poorer. This may result from limited direct liaison between lower and top level managers.

Level of management board member competencies – aggregated management level

1

2

3

4

5

3.7 3.8

3.23.4

3.2 3.12.8

3.2 3.1

4.0 4.13.8 3.9

3.6 3.53.2

3.73.5

3.9 3.93.6 3.6

3.73.5

3.23.5 3.6

Lower Higher Highest


FindingsManagers’ rating of their own competencies is higher than the one given to management board members• The leadership competencies of management board members are considered substantially lower than those

of the managers themselves. This may raise a question about insufficient authority of the management. A focus not only on the business standing of the company but also on the sense of authority and suitability of its employees poses a significant challenge to top executives.

Own vs. management board member competency level according to managers

1

2

3

4

5

4.1 4.1 4.0 4.0 4.0 3.9 3.8 3.8 3.8 3.83.63.4

3.9

3.4 3.53.9

3.1

3.6 3.53.8

Own Management Board


FindingsSocial capital competencies of Polish management boards seem to be in short supply • According to the respondents, the competencies which translate directly into the financial performance of the company

(financial perspective and focus on goodwill growth) are not only crucial for management but their level is relatively high.

• The most significant discrepancy between the importance of a competency and its actual level exists in the social capital category comprising: talent nurturing, change leadership, relationship building as well as creation and fulfilment of vision.

Importance of competencies vs. their level according to managers

1

2

3

4

54.5 4.3 4.3 4.3 4.1 4.1 4.1 4.1 4.0 4.03.9

3.5

3.93.6 3.6

3.4 3.4 3.53.8

3.1

Importance of the competencies Level of the competencies


• As the survey shows, more than 80% of managers believe that competencies such as a broad perspective, focus on growing enterprise value and financial perspective are critical for supervisory board members.

• Members of supervisory boards should also focus on promoting value-based initiatives, hence developing trust both among employees and clients.

• In addition to being business guardians, they are expected to foster the organizational culture of the company and view its activities from the ethical perspective.

FindingsThe supervisory board should view the company from a broad perspective and focus on its growth

Importance of supervisory board member competencies according to managers

Talent nurturing


Change leadership

Impact






Broad perspective

0% 20% 40% 60% 80% 100%

9%

13%

13%

13%

13%

19%

31%

36%

36%

50%

24%

36%

29%

50%

39%

31%

52%

47%

52%

39%

38%

38%

38%

29%

34%

36%

14%

14%

9%

10%

24%

12%

18%

8%

12%

12%

Critical Highly important Of medium importance Of little importance Unimportant


• According to the business, the supervisory board member competency level is lower than expected. Only such competencies as focus on goodwill growth and financial perspective are rated high. On the other hand, a broad perspective and building a value-based organization seem to be in short supply.

• The rating given to supervisory board member competencies is considerably lower as compared to the managers’ rating of their own competencies. This is particularly the case for two competencies critical for the said role, namely a broad perspective and building a value-based organization.

FindingsManagers’ expectations regarding supervisory board member competencies are high

Level of supervisory board member competencies according to managers

Talent nurturing


Change leadership



Impact


Broad perspective



0% 20% 40% 60% 80% 100%

3%

8%

8%

10%

12%

15%

15%

19%

31%

31%

19%

30%

23%

33%

24%

26%

26%

35%

31%

32%

32%

46%

40%

38%

37%

35%

30%

39%

32%

30%

37%

12%

21%

17%

25%

21%

24%

5%

5%

7%

10%

4%

7%

5%

1%

Very high High Average Low Very low


FindingsAnalytical and strategic competencies match expectations most closely• The respondents are of the opinion that analytical and strategic competencies (focus on goodwill growth

and financial perspective) match expectations most closely.

• The major discrepancy between expectations and the reality may be observed in competencies related to understanding the company’s standing and recent market trends (broad perspective) as well as those linked with responsible business (building a value-based organization).

Importance of competencies vs. their level according to managers

1

2

3

4

54.4

4.2 4.24.0

3.7 3.6 3.5 3.5 3.33.1

3.63.9 3.8

3.2 3.3 3.3 3.2 3.33.0

2.7

Importance of the competencies Level of the competencies


• Supervisory board member competencies seem to be of lesser importance for the company than those of members of the management board. For both these groups, competencies related to understanding the business should be equally important, while those linked with creation of vision, change leadership, relationship building and talent nurturing should be critical for management board rather than supervisory board members.

• Supervisory boards should focus rather on growing enterprise value and building an ethical organization.

FindingsManagement board competencies matter more for the company than those of the supervisory board

Importance of management board vs. supervisory board competencies

0%

20%

40%

60%

49%

41%

19%

31%

40%

28%

44%

23%

28%

23%

49%

36% 36%

30%

19%

13% 12% 12%10% 9%

Management Board Supervisory Board


• Regardless of their level in the organizational structure of the company, managers rate the competencies of female management board members higher than those of men, except for financial perspective and focus on goodwill growth, where the rating given women is similar to that assigned to men.

• Specifically, such competencies as developing effective relations, talent nurturing, change leadership and building a value-based organization seem to be rated higher in case of women.

FindingsMen and women – the competencies of female management board members are rated higher than those of men

Female and male management board member competency level

1

2

3

4

5

4.0 3.9 3.9 3.9 3.9 3.9 3.9 3.8 3.83.63.7

3.3

3.9

3.5 3.53.8

3.33.6 3.6

3.0

Female competencies Male competencies


• Men believe that female management board members are equally competent as men in most areas (the survey did not reveal any material differences in statistical terms).

• On the other hand, women rate their own competencies higher than those of men in certain areas. They recognize themselves and other women as more competent, though men do not seem to be aware of the difference.

FindingsMen and women in management boards: we’re moving into an era of self-confident female managers

Female and male management board member selected competency level according to women

1

2

3

4

5

4.2 4.2 4.1 4.1

3.4 3.4 3.3 3.3



• The number of female members of supervisory boards is considerably lower than the number of men (which is also true for management boards). Similarly to management boards, their competencies are rated substantially higher in all areas, except for financial perspective and focus on goodwill growth, where the rating given to women is similar to that assigned to men.

FindingsMen and women – the competencies of female supervisory board members are rated higher than those of men

Female and male supervisory board member competency level

1

2

3

4

5

3.7 3.7 3.7 3.6 3.6 3.6 3.5 3.53.3 3.2

3.53.8 3.7

3.1 3.13.2 3.2 3.3

3.1

2.7



• Men do not seem to rate competencies higher depending on gender. On the other hand, women rate certain competencies of female supervisory board members higher. This is particularly noticeable for such competencies as a broad perspective and focus on goodwill growth.

• From the perspective of men, gender is of no importance for supervisory boards. Additionally, they may not perceive any differences in the competency level depending on gender as an insignificant number of women among men is not recognized as different by the latter.

• Women clearly recognize the difference in value contributed to supervisory boards by their female members and are particularly sensitive to a specific group of social capital competencies.

FindingsMen and women in supervisory boards: women recognize the difference in value contributed by other female supervisory board members

Female and male supervisory board member selected competency level according to women

Broad perspective Flexibility of action Focus on goodwill growth Creation and fulfilment of vision

1

2

3

4

5

3.9 3.9 3.8 3.73.3 3.3

3.5

3.1



1. Deloitte’s Leadership Competency Model is a tool used for defining the meaning of leadership today as well as the competencies expected of today’s and future leaders.

2. A broad perspective and change leadership, which are linked with understanding the company’s standing in a broad business context, are recognized as the most critical competencies of management board members in Poland.

3. On the other hand, a broad perspective and focus on goodwill growth are perceived as the major competencies of supervisory board members, who are expected to focus on shaping the organizational culture of the company and viewing its activities from the ethical perspective.

4. Social capital competencies seem to be in short supply among management board members, while members of supervisory boards lack those linked with the organizational culture of the company.

5. The competencies of supervisory and management board members are rated differently by various level managers: the lower position in the organizational structure, the lower the rating.

6. Female managers perceive themselves and other women as more competent in certain areas – they seem to have finally broken through the glass ceiling.

7. The leaders of the future should focus on development of such competencies as a broad perspective and building a value-based organization, as well as those linked with social capital.

Key Findings

© 2014 Deloitte Poland 21

Contact us

Wiesław ThorAdvisor to the Management Board of Deloitte

Tel. 48 (22) 348 38 51E-mail: [email protected]

Iwona GeorgijewPartner, DeloitteSheXO Club Leader

Tel. 48 (22) 511 08 24E-mail: [email protected]

Prof. Beata Krzywosz-RynkiewiczPsychologistUniversity of Warmia and Mazury in Olsztyn

Tel. 48 512 007 915 E-mail: [email protected]

22

Deloitte świadczy usługi audytorskie, konsultingowe, doradztwa podatkowego i finansowego klientom z sektora publicznego oraz prywatnego, działającym w różnych branżach. Dzięki globalnej sieci firm członkowskich obejmującej 150 krajów oferujemy najwyższej klasy umiejętności, doświadczenie i wiedzę w połączeniu ze znajomością lokalnego rynku. Pomagamy klientom odnieść sukces niezależnie od miejsca i branży, w jakiej działają. 200 000 pracowników Deloitte na świecie realizuje misję firmy: stanowić standard najwyższej jakości.

Specjalistów Deloitte łączy kultura współpracy oparta na zawodowej rzetelności i uczciwości, maksymalnej wartości dla klientów, lojalnym współdziałaniu i sile, którą czerpią z różnorodności. Deloitte to środowisko sprzyjające ciągłemu pogłębianiu wiedzy, zdobywaniu nowych doświadczeń oraz rozwojowi zawodowemu. Eksperci Deloitte z zaangażowaniem współtworzą społeczną odpowiedzialność biznesu, podejmując inicjatywy na rzecz budowania zaufania publicznego i wspierania lokalnych społeczności.

Nazwa Deloitte odnosi się do jednej lub kilku jednostek Deloitte Touche Tohmatsu Limited, prywatnego podmiotu prawa brytyjskiego z ograniczoną odpowiedzialnością i jego firm członkowskich, które stanowią oddzielne i niezależne podmioty prawne. Dokładny opis struktury prawnej Deloitte Touche Tohmatsu Limited oraz jego firm członkowskich można znaleźć na stronie www.deloitte.com/pl/onas

© 2014 Deloitte Polska. Member of Deloitte Touche Tohmatsu Limited