Glf Presentation 2011 Mexico Version (2)

Global Leadership

Forecast 2011

The Talent Management Expert

• Mocha coconut frappuccino• Cupcakes• Lactose free milk• Extra large drinks• Via in French roast & Verona• Electronic delivery of rewards• Free WiFi

?

NO!

Leadership Development Effectiveness 34%

2011 29%2009

33%2006

HR

48%2011

?

NO!

LeadershipQuality

37%

2009

38%

2011

25%HR

32%

2011

?

NO!

18%Future Bench Strength 18%

HR

Leadership Quality Impacts…

Confidenceof Future Business Success

4%4%

66%66%

Low Leadership QualityLow Leadership Quality

High Leadership QualityHigh Leadership Quality

Retention 24%24%

70%70%



Engagement9%9%

50%50%



The bottom line52%52%

13%13%

Financial performance Financial performance 2.8x2.8x

Customer satisfaction Customer satisfaction 4.6x4.6x

ProductivityProductivity 4.7x4.7x

Quality of servicesQuality of services 4.4x4.4x



Passion7%7%

53%53%



Performance:Top vs. Average

50%better

Cost of Leadership Performance

AVERAGE HIGHLOW

1 Leader X 10 Direct Reports

X $170,000 Revenue Per EE

$1.7 million

If the difference between an average leader and top-performing leader is 50%

$2.6 million

Time for a (R)evolution!

About the Global

Leadership Forecast

1,897 HR Professionals

12,423 Leaders

2,679 Organizations

74 Countries

Enhanced Business

Impact

Enhanced People

Outcomes

Talent Systems & Practices

Leadership Development

Management Culture

Development Matters



Management Culture

EffectiveDevelopment =

Quality Leadership 13%13%

62%62%

Low Development EffectivenessLow Development Effectiveness

High Development EffectivenessHigh Development Effectiveness

Leadership development:What works today, may

not work tomorrow

Top Five Past

Critical Skills

1. Driving & managing change

2. Executing organizational strategy

3. Coaching & developing others

4. Making difficult decisions

5. Improving employee engagement

Table Activity:

What are the top 5 future critical skills?


2. Identifying/developing future talent

3. Fostering creativity & innovation



Top Five Future

Critical Skills

Top FiveFuture

Critical Skills






Top Five Future

Critical Skills





5. Business/financial acumen

Leadership Skill Effectiveness:

50 / 50 Value Proposition

“Our CEO coined how we need to think about innovation. He said, ‘I’d rather be 8 and 2 than 2 and 0 in terms of willingness

to try out something new’”.

Innovation Important

95%

90%

89%

72%

Budget Increases

80%

82%

73%

49%

Up The Value Chain

Boston Consulting Group 2010

(R)evolution Point 1A Leaders Role in Innovation

Failure to Execute

Innovation Challenges Culture of Innovation

Think Differently

Question Assumptions

Get Things Done

Experiment

Team Members

The Leader’s Role in Innovation

?Inspire Curiosity

Drive Discipline

Leader

Challenge Current Perspectives

Create Freedom


Methods

• Formal classroom training

• Special projects

• Coaching from your manager

• Moving positions

• Coaching from internal coaches

• Web-based, self-study learning

• Coaching from external coaches

• Virtual classroom

Formal classroom training

Special projects or assignments

Coaching from your manager

Moving positions

Coaching from internal coaches

Web-based learning

Coaching from external coaches

Virtual classroom

Effectiveness of Development Methods

66%

63%

59%

43%

37%

58%

27%

36%

Organizations that have effective programs use

more methods.32%

HR

(R)evolution Point 2Learning: From Event to Journey

10~20~70FORMAL COACHING ON-THE-JOB

= Assessments, Targeted Personal Development Focus

OrientationKick Off

Coaching

Fo

rma

l L

ea

rnin

g

April-June July-September October-December January-March

Action Learning

Ongoing Feedback and Support

Core Curriculum 3Building High-

Performing TeamsDriving Innovation

Supporting Leadership Development

2 days

Action Learning

Action Learning

Coaching Coaching

•Assessment: 360 and personality Inventories

•Prework

•Action Learning Kickoff

DevelopmentPlanningMeetings

(DDI Coach, Boss, Mentor)

Repeat 360 to Assess Behavior Change

DevelopmentPlanningMeetings

(DDI Coach, Boss, Mentor)

= Core Curriculum= Action Learning & Ongoing Development

Job Growth Experiences

Info

rma

l L

ea

rnin

g,

Fe

ed

ba

ck

, a

nd

O

n-t

he

-jo

b E

xp

eri

en

ce

= Learning 2.0 components

Manager/Sr. Leader Kick-Off Webinar

Leader Blog: What leadership means to participant, how they

will use new skills

Wikis: Tying leadership skills to business outcomes – how do they link together?

Discussion Board: Participants seek feedback from BU leaders on ideas,

best practices

Learning Mash-Up

Core Curriculum 1

Challenges of Transitions

Mastering EQ

Influencing

Courage3 days

Core Curriculum 2Cultivating Networks &

Partnerships

Making Change Happen

Learning through Transitions

3 days

Talent Management Matters


Management Culture


Firing on all cylinders

Leadership Succession 77%

Performance Management 77%

Leadership Selection 79%

22%

42%

31%

30%

33%

31%

Programs & learning for mid-level leaders 76%

Programs & learning for senior leaders 74%

Programs & learning for frontline leaders 68%

Future ImportanceFuture Importance

Current EffectivenessCurrent Effectiveness

HR

Firing on all cylinders:

Mexico

Leadership Succession 77%

Performance Management 77%

Leadership Selection 79%

22%

42%

31%

30%

33%

31%

Programs & learning for mid-level leaders 76%

Programs & learning for senior leaders 74%

Programs & learning for frontline leaders 68%

Mexico EffectivenessMexico Effectiveness

Future ImportanceFuture Importance

Global EffectivenessGlobal Effectiveness

44%

65%

23%

30%

30%

35%

HR

Development Can’t Fix Everything

Low• Arrogance

• Inquisitive

• Ambitious

• Volatile

• Learning Orientation

• Results Driven

Moderate• Risk-taker

• Letting go

• Making sounddecisions

High• Customer

focus

• Developingstrong teams

• Executingstrategy

• Building future talent

• Communicating with impact

Select Develop

1/31/3Use Validated ToolsUse Validated Tools

Selection

HR

Hiring Failures:

1 in 3

External

Internal

Success Failure Mexico

HR

29%

25%

81% 81% Tied to corporate goalsTied to corporate goals

69% 69% Balanced between Balanced between “whats” and “hows”“whats” and “hows”

56% 56% Discussions provide Discussions provide clear direction for clear direction for developmentdevelopment

Performance Management

“It gets worse…. After this I have a performance appraisal.”

A new perspective on performance discussions

Atlassian

SuccessionRate Bench Strength StrongRate Bench Strength Strong

18% 18%

HR

64% of leaders made a leadership transition in the past 5 years

26% of organizations have effective programs

to ensure smooth leadership transitions

BUT ONLY

30%

(R)evolution Point 3Get it Right: Identifying Potential

There’s a Difference

Performance

Potential

Readiness

LeadershipPotential

50%39%44%

37%

Identification of High Potentials

Growth of High Potentials

2009

2011

HR

44%37%Leadership

Potential

41%35%

Identification of High Potentials

Growth of High Potentials

2011 Global

2011 Mexico

HR

Best Practices

88%

87%

60%

48%

46%

43%

Organizations with effective talent management systems

Organizations with ineffective talent management systems

19%

19%

13%

8%

3%

3%

HR

Talent Systems & Practices Culture Matters


Management Culture

“Right now, your company has 21st century Internet-enabled business processes, mid-20th-century management processes, all built atop 19th-century management principles.”

Gary Hamel

Management Culture Killers

• Bureaucracy of management processes

• Values that are not meaningful

• Influence based on position power

• Innovation opportunities for select few

• Decisions are held closely by those in power

• Rigid structure

• Power held by those who value status quo

• Goals only focus on bottom-line growth

Culture Impacts

Passion 29%29%57%57%

81%81%

Low effectiveness of management culture

Medium effectiveness of management culture

High effectiveness of management culture

17%31%

51%

Culture Impacts The bottom line

Low effectiveness

of management culture

Medium effectiveness


High effectiveness


Management Culture Killers

61%

54%

Decisions are held closely by those in power

Organizations are siloed, rigid, hierarchical

44%

43%

41%

38%

37%

32%

Bureaucracy of management processes

Innovation opportunities for select few

Goals only focus on bottom-line growth

Power to those who value status quo

Influence based on position power

Values that are not meaningful

70%

64%

61%

42%

45%

44%

45%

32%

(R)evolution Point 4Innovating the Way We Manage

Management Culture

Revolutionized

• Management processes are a competitive advantage

• Values are shared and meaningful

• Merit-based influence

• Innovation opportunities for all

• Strategic decisions open for discussion

• Flexible, nimble structure

• Power held by those who value innovation

• Goals of growth, sustainability, and social significance

Enhanced Business

Impact

Enhanced People

Outcomes



Management Culture

68th Percentile Leadership Development Talent Management Management Culture



The Bottom LineThe Bottom Line