Charting a New Course in Leadership Assessment

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Charting a New Course in Leadership Assessment

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Speakers: Dr. Kathleen Kappy LundquistPresident & CEOAPTMetricsDr. John C. ScottCOOAPTMetrics

Moderator: Kellye WhitneyManaging EditorTalent Management magazine

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Kellye WhitneyManaging EditorTalent Management magazine


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Dr. Kathleen Kappy LundquistPresident & CEOAPTMetrics

Dr. John C. ScottCOOAPTMetrics


Charting a New Coursein Leadership AssessmentJuly 24, 2012

Presented by :Dr. Kathleen Kappy Lundquist, CEOand Dr. John C. Scott, COO

2012 APTMetrics, Inc.

99

People travel to wonder at the height of the mountains, at the huge waves of the seas, at the long course of the rivers, at the vast compass of the ocean, at the circular motion of the stars, … and yet they pass by themselves without wondering.

--St. Augustine

A New Course

10 CONFIDENTIAL

Identifying, Developing and Retaining Potential

C-suiteLeaders

SeniorLeaders

Executives

Mid-level Managers

Front-line Supervisors/

Pivotal Roles

Checkpoint #4:

C-suite Assessment

Checkpoint #3: Leader

Assessment

Checkpoint #2: Early

Confirmation of Potential

Checkpoint #1: Initial

Segmentation

1111

Workforce Trends

1212

Global Race For Talent – Smaller Pools to Tap Into

Global demand for talent is higher than ever...

• 58% multinational companies lack talent for critical leadership positions

...but there is just not enough talent to go around

• Emerging markets: Only 25% of talent is employable– Uneven quality of education systems– Lack of employee mobility

• Developed markets: 75M baby boomers nearing retirement, but only 30M Generation X to fill role

1313

Recession resulted in higher retention of talent• Companies 'tightened belts'

– Recruiting less from the outside– Focusing on building pipeline

• Slowdown of voluntary attrition; older workers delaying retirement

– Minimizing personal financial risk

Pendulum seems to have swung too far• Limits opportunity for diverse talent coming up

the ranks– Advancement pathways for key emerging

talents blocked

• Increases risk of mass exodus of knowledge/capability in 5–10 years

– Spike in retirement will result in insufficient talent pipeline

The Talent Continuity Conundrum

1414

Cultural Competence and Diversity

• Globalization and Demographic Shifts make Cultural Competence a Leadership Imperative

• Cultural competence: effectively operating in different cultural contexts and altering behaviors to reach different cultural groups

• Cultural competence is BOTH individual AND organizational

1515

Aspects of Cultural Competence

• Organizational Cultural Competence requires:• Defined values, policies and behaviors that facilitate

effective cross cultural efforts• Incorporating diversity and inclusion into the fabric of

managing the business

• Individual Cultural Competence requires:• Capacity to value diversity• Manage the dynamics of difference• Acquire and institutionalize cultural knowledge• Adapt to cultural contexts of the customer communities

served

1616

Question 1

Does your organization currently evaluate cultural competence in the assessment of leaders?

a. Yesb. No c. Considering it

1717

Building the Diverse Leadership Pipeline

• Provides a unique opportunity to leverage cultural differences to build organizational cultural competence

• Powers an innovative culture

• Leads to sustainable success

• Not just “the right thing to do”

1818

Not Just the “Right Thing to Do”

1919

Diversity is Itself Diverse

• The diversity skill set for leaders varies based on where the organization is along the diversity continuum

• The needs of different groups or even subsets of the same group vary considerably

• Diversity assets are not the same for organizations in different industries

2020

Awareness

Fairness

Inclusion

Leverage

Evolution of Diversity in Organizations

2121

Awareness Fairness Inclusion Leverage

Diversity defined as …

Equal opportunity compliance

Narrowly by representation of ethnic and gender groups

Broadly defined in terms of thought, style and background

A core organizational asset

Differences Seen as potential for problems

Need to be accommodated

Need to be encouraged and integrated

Are a competitive advantage

Role of Leaders

Legal compliance

Diversity is part of the Leader’s jobs

Managing Inclusion is an essential leadership competency

Leaders integrate D&I as a business strategy

Role of Board

Passive Limited requests for reporting representation

Board holds leadership team accountable

Leaders and Board own D&I

Organizational Diversity Maturity

2222

Question 2

Where is your organization along the Diversity continuum?

a. Awarenessb. Fairness c. Inclusiond. Leverage

2323

Implications for Leadership Assessment

To meet the long-term needs of the organization, leadership assessment must:

• Diversify the pool

• Build cultural competence

• Provide opportunity for early identification of talent

• Balancing inclusive approach with targeted development

• Assess both organizational and individual profiles

2424

Talent Segmentation

2525

Why Do We Need to Differentiate?

• Talent is becoming a very scarce resource• Placing the right people in the right roles is even more critical

to business success then ever before

• Organizations have limited resources for development• Organizations need to know where to put their money to their

best advantage

• Individual performance is not normally distributed – need to focus on “elite” performers who produce majority of output

• Having models for talent differentiation or segmentation is critical• Need to effectively and accurately determine who has and

doesn’t have the potential for future leadership roles

2626

Differentiation Allows Enhanced Focus Deeper in the Organization

Targeted Development Focused here

TargetedDevelopment Focused here

Balance of LeadershipGlobalHipos

Without Differentiation With Differentiation

2727

FoundationalDimensions

GrowthDimensions

CareerDimensions

Building Blocks of Leadership Potential

Performance(In-role track record)

Personality Cognitive Ability

Learning Motivation

Leadership Predisposition Functional Capability

Cultural Competence

2828

Leadership Competencies Typically Assessed

• Leads Strategically• Collaborates• Customer Focused• Delivers Results• Develops Talent• Communicates Directly• Promotes an Ethical Culture• Fosters Purposeful Dialogue

2929

Cultural Competence

Competencies Assessed

Cultural Competence

1. Respects diverse perspectives that may arise from background, culture, ethnicity, race, gender, age, generation, values, and other individual characteristics.

2. Recognizes when diverse views are not being leveraged and confronts this situation

3. Drives action through the organization to capitalize on diversity as a business asset

3030

Brief Demonstration

3131

An Example: Setup

To start your day, open up the resource titled "About GXR" and take a few minutes to read the overview of GXR and its history.

3232

An Example: Setup

To start your day, open up the resource titled "About GXR" and take a few minutes to read the overview of GXR and its history.

3333

An Example: Video

3434

An Example: Item

How would you facilitate an outcome that takes into account both perspectives?

Ask them each to write up their recommendations and you will decide.Agree that price is important but reiterate that quality must take precedence.Review the market research data yourself to determine who is correct.Ask them to meet and generate a recommendation that takes both price and quality into account.

3535

An Example: Item

What information would you MOST like to have in order to address the quality versus price issue?

Price data for GXR's target customers.

Price by feature set for various configurations.

Market research data by customer segment.

Cost data from Production Engineering.

3636

An Example: Item






3737

An Example: Item






3838

Feedback: Competency Summary

2Cultural Competence

3939

Feedback: Individual Developmental Actions

2Cultural Competence 78 Become an advocate in the company for promoting

diverse viewpoints, challenging others to consider a diversity of perspectives, and demonstrating how diversity and inclusion support the company

Lead an initiative to collaborate with community and customer base on new-product development

Coach, train and develop an inclusive approach in all members of your team, making cultural competencethe norm

4040

Identifying, Developing and Retaining Potential

C-suiteLeaders

SeniorLeaders

Executives

Mid-level Managers

Front-line Supervisors /

Pivotal Roles

PurposeAssessment Approach

Development Approach

Identify and address development gaps for select C-Suite participants; Inform movement decisions

Behavioral Interview, Qualitative 360, Hogan/360 Assessment

Extensive Coaching, Exec MBA, Experiences

Identify and verify Global enterprise talent; Facilitate GM preparedness

Assessment Center, psychometric assessments, and career inventories

Coaching, Internal Training, External Courses, International Assignments

Identify/confirm potential in individuals early in career for early course correction; Better focus development dollars

Virtual simulations, psychometric assessments and career inventories

Light Coaching, Focused Training, Books, Task Forces

Conduct an initial segmentation of talent; gain an understanding of the long-range talent landscape

Virtual simulation, psychometric assessments, registration of interest

Focused Training, Readings, Coursework

Checkpoint #4:

C-suite Assessment

Checkpoint #3: Leader

Assessment

Checkpoint #2: Early

Confirmation of Potential

Checkpoint #1: Initial

Segmentation

4141

Succession Plan at a Glance

CEO

Rea

dy

Nea

r-Te

rm

Rea

dy

Fu

ture

(T

alen

t P

oo

l)

KEY:

Rea

dy

No

wIn

cum

-b

ent

… … … … … … … …

ELT Leader

ELT Leader

ELT Leader

ELT Leader

ELT Leader

ELT Leader

ELT Leader

ELT Leader

…

ELT Leader

DiverseExpatriateNationalityFlag Successor from Outside Org.

4242

Feedback: Organizational Assessment

2012 Results

PipelineManagement

Is the pipeline healthy and full?

Depth of BenchNumber of Ready Now per position DiversityDiversity of the succession pools Duplication Successors on multiple slates

EffectivenessIs the succession

plan working?

Key positions filledUse of succession pool vs. external hires Performance when selectedHow quickly do they ramp up/hit KPIs?

Talent PoolIs talent prepared

and engaged?

Development plans executedCompetency/key experience gaps closed Pool movementPromotion, demotions and lateral moves Reward allocationHolding power of incentive compensation Retention and engagementSuccession pool turnoverHow many terms are regrettable losses?

4343

Great things are not done by impulse, but by a series of things brought together.

Vincent van Gogh

4444

Contact Information

• Dr. Kathleen Kappy Lundquist: [email protected]

• Dr. John C. Scott: [email protected]

Questions and Answers

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Dr. Kathleen Kappy LundquistPresident & CEOAPTMetrics

Dr. John C. ScottCOOAPTMetrics

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