ADP Case Study - Computer Education Management Association - CEdMA

CA

SE S

TUD

Y

IN THIS CASE STUDY

Sun Microsystems, a global leader in networking systems, has a highly developed and effective leadership talent strategy. Its programs are designed to support the company’s overall business strategy, its core values and its company culture. Notably, the leadership strategy is driven from the top-down, with the CEO highly engaged in both developing programs and delivering the message through the company ranks.

An important component of the leadership strategy at Sun is its award-winning business simulation learning program, called “Leadership Connections.” The program presents real-life business cases to senior-level executives, who work in teams to run a fictional company (called “Helios”) that looks very much like Sun itself. Leadership Connections is one of several leadership development programs executed under the Leadership Academy. Since the program’s inception, Sun has rapidly engaged its managers and leaders, trained them, and developed a team of individuals who are intimately familiar with the company, their individual leadership strengths and weaknesses, and Sun Microsystem’s future.

BERSIN & ASSOCIATES © MAY 2009 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

BERSIN & ASSOCIATES

FOCUS:

Enabling Talent Mobility

Business Simulation at Sun Microsystems Builds Organizational Leadership and Collaboration

—Kim Lamoureux, Principal Analyst | May 2009

PLANNING& STRATEGY

CONTENTDEVELOPMENT

LEARNINGPROGRAMS

LEARNINGTECHNOLOGY

ANALYTICS &MEASUREMENT

TALENTMANAGEMENT

LEADERSHIP DEVELOPMENT

BERSIN & ASSOCIATES © MAY 2009 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

ENABLING TALENT MOBILITY

TABLE OF CONTENTSCompany Overview 4

Business Environment 5

Learning Environment 6

Leadership Framework 7

Talent Management Integration 9

Leadership Program Portfolio 10

Leadership Connections 13

Comprehensive Program Design 14

Executive Engagement 17

Change Management 17

Implementation 18

Maintenance 18

Technology 19

Analysis of Sun’s Leadership Development Strategy 22

Metrics and Evaluation 23

Lessons Learned 24

Flexibility Is Key 24

Implementation Requires Coordination 24

Executive Engagement 25

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Next Steps / Looking Ahead 25

Conclusion 26

Appendix I: Table of Figures 28

About Us 29

About This Research 29



Sun Microsystems, based in Santa Clara, California, is a global leader in network software, systems, services and microelectronics that power everything from home appliances to advanced mobile device applications. With nearly 34,000 employees and business operations in 100 countries, its leadership challenge is as vast as its operations. In FY’2008, the company booked revenues of $13.8 billion. The company was founded in 1982 with just four employees; its first product, a workstation, included TCP / IP, now known as the Internet protocol suite. By 1988, the company reached $1 billion in revenue. The company continued to grow during the next two decades.�

A turning point came in 2006, when the chief operating officer became CEO, replacing the company’s cofounder, who retained his position as chairman of the board. As often happens with a top-level leadership change, the new CEO brought a fresh focus to the company and, specifically, to leadership development. In fact, it was a core piece of his overall business strategy. The CEO was personally behind developing a Sun talent management strategy that aligned leadership development with business and people goals, company values, and competencies the company and its leaders needed.

Among his initiatives during his first year, the CEO and his team consolidated what had been a number of different legacy learning and development (L&D) programs that were dispersed throughout the company. Most were external programs for training the company’s customers on new products; others were internal programs designed to build employee skills and leadership. However, the company had been quite focused on training customers and all internal training had “… died on the vine….” according to the senior manager of employee training.

1 Source: http://www.sun.com/aboutsun/index.jsp.

Company Overview

The new CEO

brought a fresh

focus to Sun

and, specifically,

to leadership

development.

K E Y P O I N T

Source: Sun Microsystems, 2009.

Figure �: Sun Microsystems at a Glance

• Year Founded: 1982

• Headquarters: Santa Clara, California

• Fiscal Year 2008 Revenues: $13.880 billion

• Total Employees: 33,423 worldwide

• Ranking: 184 on the FORTUNE 500 (2008)

• Stock Symbol: (NASDAQ:JAVA)



During its early years, Sun had experienced immediate and rapid growth. Revenues grew exponentially during the company’s first decade in business. But, like many technology-based organizations, the “dotcom” bust in the late 1990s and early 2000s took an enormous toll. Flagging sales, more competitors (in market segments the company had once owned) and its focus on hard-hit sectors (like telecommunications) led to a slowdown in revenue growth. Profitability, too, had become spotty. Analysts had begun to sound the death knell for Sun Microsystems. It was clear to the CEO that Sun required a rapid recovery plan.

In identifying leadership strategy as integral to his vision for the company’s future, the CEO was not straying far from the philosophy of his predecessor. Interviewed in Forbes in 2008 about his leadership and management style, the former CEO said,

“We had a very strong annual planning process where we had a set of deliverables … including … an

“interdependencies” section. It said: To make my plan I need to do the following but here’s what I need out of my peers.”

Clearly, the former CEO felt strongly that teamwork and leadership were intertwined with the company meeting its operational and revenue goals.

Despite such a strongly stated commitment, during those years of rapid growth the company was much more focused on training customers than on developing its own leaders. A program, called Sun University, developed training that corresponded to new product releases and launches. Even with such a highly developed, outside-facing training organization, internal leadership development had become all but extinct.

The new CEO’S approach to leadership development was clear – with the company struggling (sales were down and two significant staff reductions occurred in the space of a year), he wanted strong leaders who were fully engaged in and intimate with his strategy, otherwise it would not be successful.

Sun hired a chief learning officer (CLO) and consolidated the company’s training operations. Prior to the arrival of the CLO, Sun’s internal and external training programs each operated in its own silo, depending on the division or product served. Additionally, it was a personnel-heavy operation,

Business Environment

Teamwork and

leadership are two

qualities that are

intertwined with

the achievement

of operational and

revenue goals

at Sun.

K E Y P O I N T



with nearly twice the number of learning professionals than are in the organization today.2

The CLO immediately gathered learning and business-unit managers to help her design a centralized learning organization that served all of Sun’s constituents – customers, employees, community and partners.

Sun leaders created Sun Learning Systems (SLS) in June 2006 as a way to organize Sun’s disparate and decentralized training and development efforts. Its overall goal was to ensure that leadership development programs fit the company’s business strategy.

Given the new CEO’s focus on human capital, a centralized approach allowed Sun to offer consistent training and development that was

2 For more information, Creating a Business-Driven Learning Organization: Sun

Microsystems Shared Learning Services Supports Customers, Partners, Employees and

Community, Bersin & Associates / Leighanne Levensaler, March 2009. Available to

research members at www.bersin.com/library.

Creating the role

of CLO at Sun

Microsystems

brought new focus

and energy for

creating a learning

culture.

´BEST PRACTICE

Learning Environment

CPEC

Drive adoption of Suntechnology through

access to training andknowledge

Customers buyingeducation andtraining services

Sun badged employeedevelopment of business and

Training partners to selldeliver, support, and maintain

Sun technology and services technology skills

CommunitiesCommunities CustomersCustomers

PartnersPartners EmployeesEmployees

Figure 2: Sun Learning Services – Audiences




measurable and in line with company goals. SLS is its own department, separate from human resources. It is organized with a CLO at its top, who reports to the software development group. Approximately four hundred employees work in this department.

Because Sun’s main product focus is software, many of its training programs are focused on customers and partners. Whenever the company releases a new application, for example, it involves customer training. SLS develops applications, courses and programs primarily for customers – but also that enrich employee learning throughout the company. Although employee training is not a profit center and brings no money into the company, Sun believes that improving the capabilities of its workforce and leadership abilities will bring returns in other ways.

SLS then built a Sun Microsystems “school” charged with executing programs that advance the CEO’s goal of developing a state-of-the-art learning and leadership culture. The Leadership Academy offers comprehensive, step-wise learning for progressive levels of leadership. The highly developed series of training gives high-performing employees the self-knowledge and business skills needed to move through the company’s ranks successfully, as well as a thorough understanding of the company’s business strategy. It includes a bold new program, called “Leadership Connections.”

After the new organization was formed, SLS leaders asked the CEO what his leaders would need to know to put Sun back on the map. According to one Sun executive, the CEO told them,

“I have to be confident I have the right people in place to execute the strategy.”

What followed was a consulting process, wherein SLS created a leadership framework that encompassed business results, people results, values and leadership competencies.

The consulting process used a number of analysis methods. SLS staff members conducted interviews with the CEO and each of his staff members. As the framework and curricula of the evolving leadership strategy developed, SLS held ongoing meetings to vet the programs with department and business-unit leaders. The CEO himself “… spent a good deal of thought and energy personally designing the framework.”

Leadership Framework

A centralized

approach allowed

Sun to offer

consistent training

and development

that was

measurable and in

line with

company goals.

´BEST PRACTICE

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What emerged from such thorough analysis was rolled out and implemented quickly, largely because much of it came directly from the CEO. The business results segment of the framework, for example, has become part of the company’s culture and is known as,

“The CEO’s 11 words: Grow, make money, build our community, enlist champions, accelerate our business.”

The people results portion of the framework advocated developing a leadership pipeline� (a talent mobility� program) of ready talent who could step into leadership roles. The pipeline reached beyond company walls, including a strategy to recruit outside talent. The company’s stated values, too, came from the new CEO – courage, collaboration, innovation, integrity and pace (e.g., move at the speed of business to win in the marketplace).

3 “Leadership pipeline” refers to an organization’s ongoing need to have a pool of

talent that is readily available to fill positions at all levels of management (as well

as other key positions) as the company grows. At each level, different competencies,

knowledge and experiences are required, and (to keep the pipeline filled) the

organization must have programs designed to develop appropriate skills sets. (Also

known as the “leadership bench.”)4 For more information, High-Impact Succession Management: Best Practices,

Models and Case Studies in Organizational Talent Mobility, Bersin & Associates / Kim

Lamoureux, April 2009. Available to research members at www.bersin.com/library or

for purchase at www.bersin.com/hism.

The input from

senior executives

and key business

leaders is critical

to ensure a

strong alignment

between

leadership and

business strategies.

A N A LY S I SFigure 3: Sun’s Leadership Framework


Values

LeadershipCompetencies

BusinessResults

PeopleResults

GrowMake Money

Build Our CommunityEnlist Champions

Accelerate Our Business

Talent PipelineAttract

DevelopRewardEngage

CourageCollaborationInnovationIntegrityPace

Business AcumenTechnical AcumenBusiness ExecutionRelationship BuildingTalent Management



One of the most important elements of Sun’s leadership framework and initiative was how well it matched the company’s specific business goals. The company was quite clearly focused on customer acquisition and retention, including attracting a younger demographic. As the CEO noted,

“Students grow up to make technology decisions.”

Furthermore, the company clearly felt that employee satisfaction was paramount in its business success. The CEO stated,

“Sun is about people. They generate the ideas and provide our only sustainable resource.”

Talent Management IntegrationSLS oversees leadership development as just one component of the overall Sun leadership talent strategy – a comprehensive approach to attract and select, assess, develop, and evaluate and reward talent (see Figure 4). Leadership development programs (referred to as “formal curriculum” in the structure) are fully integrated with the overall talent management processes.

Sun’s StrategyCore Purpose

Values

Sun’s Leadership Framework

Attract &Select

Assess Develop Evaluate &Reward Talent

• Selection/Interview Guides• On-Boarding/ Assimilation

• Succession and Hi- Potential identification• Development Planning

• Performance Management• Awards• Competitive Compensation

• Formal curriculum• Coaching• Mentoring• Experiences/Assignments• Leadership Conference

Figure 4: Sun Leadership Talent Strategy


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An example of the integrated talent strategy is the way leadership development has been incorporated into hiring. SLS collaborated with HR to incorporate questions, which reflect the needs identified in the talent framework, into the interview guides – so that hiring managers become part of the process. This assures that future talent coming into the company reflects the skills and values needed to grow the business. In addition, one of the SLS managers has a reporting relationship with the global talent management team, collaborating on succession and performance processes at Sun. This tight partnership ensures alignment and integration of key development priorities, ultimately building bench strength� and increasing talent mobility.

Throughout the design of the Leadership Academy classes and the design of the progression of training, Sun leaders kept in mind the lifecycle of a leader inside the company. They imagined the kinds of skills an individual would need to become a leader for the first time – as well as how to keep that individual in a learning mode, building skills and capabilities as his / her job responsibilities became more complex. In addition, Sun leaders thought about how to identify high-potential� employees. All of these individuals would become part of an overall leadership management strategy; they are even evaluated “stealthily” as vice presidents during the Leadership Connections program.

Leadership Program PortfolioAccording to Sun, leadership development is broadly defined to encompass the complexities and challenges of guiding the company’s success. In this way, it ensures that training and development plans are closely tied with business results. Leadership development is offered in many ways – online classes, offsite, person-to-person workshops, formal and informal mentoring and coaching, and networking. The programs, therefore, reflect the diversity of formative experiences that instruct and develop a leader. While formal learning programs are a critical component of Sun’s strategy, it also offers other development opportunities, such as special assignments, mentoring and coaching.

5 “Bench strength” refers to the capabilities and readiness of potential successors to

move into key professional and leadership positions.6 A “high-potential employee” is an employee who has been identified as having

the potential, ability and aspiration for successive leadership positions within the

company. Often, these employees are provided with focused development as part of

a succession plan and are referred to as “HiPos.”

The integration

of leadership

development

with other talent

management

programs

supports a shift

from individual

development to

organizational

development.

A N A LY S I S

Leadership

development at

Sun is broadly

defined to

encompass the

complexities

and challenges

of guiding the

company’s success.

K E Y P O I N T

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In the Leadership Academy, the targeted audiences are new managers, directors and vice presidents; experienced managers, directors and vice presidents; and, high-potential leaders (all internal promotion or external hire). The types of courses and learning experiences are tailored to meet the needs of these diverse learning audiences, and are designed to:

• Prepare leaders for success as they enter a new role;

• Build and refine existing leadership skills, improving personal and team capabilities;

• Build the next generation of leaders who are likely to make significant jumps in level in the next five years (limited enrollment); and,

• Align leaders around strategic goals and objectives, while preparing leaders at all levels to lead within a particular business context (may include special initiative programs).

Prior to developing

leadership

programs,

SLS defined

the targeted

audiences, the

unique needs

of each and the

overarching talent

objectives.

´BEST PRACTICE

Figure 5: Leadership Academy Framework


LeadershipTransitions

BuildingLeadership

Skill & Capability

Programs focused on preparing leaders for success as they enter a newrole for the first time (Manager, Director, VP)

Early partic ipation (within 3-4 months )Firs t time roles (internal promotions or external hires)

Programs focused on building and refining existing leadership skills .Improving personal and team capabilities for leaders in current roles .

Experienced or current leaders (internal leaders or external hires )Ongoing opportunities for participation

Targeted programs for aligning leaders around strategic goals andobjectives. Preparing leaders at all levels to lead within a particularbusiness contextMay inc lude special initiative programsOngoing opportunities for participation

Limited enrollment programs geared at building the next generation ofleaders who are likely to make s ignificant jumps in level in the next 5 yrs

Nominations and s elections from high potential poolsOngoing opportunities for participation

Hi Potentials

BusinessTransformation

•

•

•

•

•

•

•

•



Supporting processes and programs include coaching, mentoring, an annual leadership conference and experiences / assignments (e.g., overseas projects). All programs are designed to build from one another to amplify the impact of each. For example, there are role-specific mentoring programs that complement audience-specific leadership development courses, including Onboarding to Sun, New Role Transitions (for managers, directors or vice presidents); and, Development for High Potentials. In the program, mentor and mentee create a development plan that encompasses goals, specific activities (such as leadership development courses), relationship expectations and a schedule for regular contact to monitor progress.

The progressive nature of the training assures Sun leaders (no matter their title) consistent, ongoing learning that prepares them for the next step in their careers. It also provides Sun with a ready pipeline of leaders who understand the intricacies of the organization and their roles in meeting overall company goals.

Developing leaders

at all levels will

provide Sun with

a ready pipeline

of leaders, as

well as a shared

understanding

of the company’s

goals and

leadership beliefs.

´BEST PRACTICE

Individual Contributor

Manager

Director

VP

Deep functional experts

Sun’s Leadership Acadamy

Multiple options for you to growup and across our organization,and develop your career in the way that best enables you tomaximize your impact.

Transition 3

Transition 2

Transition 1

Figure 6: Developing Leaders at All Levels




The core of the Leadership Academy program begins with newly hired and / or promoted managers participating in the New Manager program, during which they learn to coach employees and set performance expectations. This program helps them to transition from being an individual contributor to managing a group or a team.

For those already in management roles, the Experienced Manager Essentials program aligns with Sun’s leadership framework and business priorities, as well as the core competencies defined for managers at Sun. Experienced managers build their teams and influential leadership skills – and receive coaching and feedback on their abilities from both their peers and staffs.

New directors must take the New Director Transition course (presented in a four-day format), which focuses on individual development, organizational leadership and Sun’s business success. Through this program, new directors:

• Realize their roles in driving and implementing Sun’s strategy;

• Gain an understanding of what leadership capabilities are needed and expected;

• Learn strategies to further develop and drive their organizations to success; and,

• Reach an awareness of their personal leadership strengths and areas of vulnerability.

The capstone of the Leadership Academy is Leadership Connections, recipient of the Bersin & Associates Learning Leader® Leadership Excellence award.� The remainder of this case study will describe the details of the design, implementation, maintenance and measurement of the Leadership Connections program.

Leadership Connections was developed, after a rigorous RFP (request for proposal) process8. This program prepares mid- and senior-level leaders through a number of learning modalities, including skills assessment, coaching, training and a sophisticated custom-designed simulation.

� For more information, Learning Leaders® 2008: Lessons from the Best, Bersin &

Associates, February 2009. Available to research members at www.bersin.com/library

or at www.bersin.com/leaders.8 The RFP process was conducted in partnership with Oliver Wyman (a management

consulting firm) and BTS (a business simulation developer).

Sun’s leadership

framework

includes transition

courses, as well

as programs to

enhance core

skills sets once

a manager has

adjusted to his /

her new role.

´BEST PRACTICE

Leadership Connections



The targeted audience is all Sun directors (1,050) and vice presidents (189) with at least one year of service in their positions. Each session is made up of about 100 directors and 20 vice presidents. Participants are selected for all sessions (based on geography and function) in order to bring together a diverse group from across the company. Every director and vice president is expected to participate in this program at some point in his / her Sun career.

Broadly, Leadership Connections focuses on the following:

• Individual / personal leadership;

• Organizational leadership and collaboration across Sun’s business functions; and,

• Business / financial leadership in order to grow Sun’s business.

Comprehensive Program DesignThe bulk of the workshop takes place in a five-day, offsite class; however, the preparation for Leadership Connections begins well before the session.

Participants are

selected based on

geography and

function in order

to bring together

a diverse group

from across the

company.

´BEST PRACTICE

Figure 7: Leadership Connections Workshop


Pre-WorkshopExperience

(virtual)

Workshop Experience96-100 Participants

Post-WorkshopExperience

(virtual)

Supported by ELT and VPs

6

2424 24 24

6 6 6

4.5 day Business SimulationTeams make over 100 decisions per round while running the business

A session represents 1 year; teams run 3 sessionsTeams compete for market share and growth

Plenary sessions with ELT and guest speakersMarket winners present winning strategies

VPs assess each team and give feedback on leadershipOW coaches assess the VPs and give feedback

Simulation Worlds

Simulation Teams

Facilitators

Coaches



Pre-Work – The program begins with three assessments (360-degree feedback, FIRO-B� and Hogan Development Survey�0) and one-on-one coaching for vice presidents and directors to review assessments, prepare for the learning event and set learning goals. Participants are given four to six weeks to complete their preparations. Given the results of their assessments, the participants engage in one-on-one coaching sessions scheduled two weeks from the start date for the workshop. All pre-work must be completed prior to the coaching sessions. Directors may also complete two optional online courses (about two hours in length), focused on assessing financial performance and competing for customer value at Sun. Although these self-paced learning modules are optional, Sun stresses that to fully engage in and win the simulation (see next paragraph), the pre-work is a necessity.

Custom Simulation – Next, the five-day, offsite workshop experience centers on a highly realistic business simulation in which each vice president facilitates and coaches a team of six directors. Vice presidents arrive half a day early to rehearse their roles and practice their coaching skills. Teams are challenged to run a simulated version of Sun’s business as CEOs over a three-year timeframe. At the end of each day’s simulation “year,” teams receive feedback on their business results and are stack-ranked within their “world” of four teams. At the end, teams present key learnings and recommended solutions to senior management. Winners are selected based on the key success metrics at Sun – revenue growth, EBITDA�� and long-term customer value. (See Figure 8.)

The vice presidents who participate in the Leadership Connections program as facilitators are also being evaluated in a “stealth” manor. Their performance as coaches and leaders with their teams is evaluated.

“It’s a great way to watch development and determine if we can get our vice presidents to become better at

assessing talent, giving feedback and coaching.”

Senior Manager, Employee Training, Sun Microsystems

9 The FIRO-B (Fundamental Interpersonal Relations Orientation - Behavior™)

instrument is used to uncover how personal needs affect behavior towards others,

and what is wanted from them in return.10 Hogan Assessments reveal competencies, derailers, values, reasoning skills and

leadership characteristics to help understand the underlying sources of employee

behavior.11 An indicator of financial performance, “EBITDA” refers to earnings before

interest, taxes, depreciation and amortization.

Although not the

targeted audience,

the vice presidents

who participate in

the simulation are

able to develop

their assessment

and coaching

capabilities.

´BEST PRACTICE



Integrated Skills Development – Throughout the simulation, an Oliver Wyman consultant coaches and observes the vice presidents, and provides feedback on their leadership skills and talent development style. The coaches also facilitate “Leader Lab,” feedback sessions designed to reinforce Sun leadership competencies and values. Leader labs allow both directors and vice presidents to share learning goals and desired leadership behaviors – and receive feedback and explore team dynamics in real-time. In addition to coaching a simulation team, each vice president also serves on two panels that are designed to help directors link their simulation learning to their real worlds at Sun.

Post-Work – Three to six weeks later, participants take part in a one-hour telephone, follow-up coaching session with the same coach with whom they completed their pre-work sessions. Also, directors must brief their teams onSun’s growth strategies and other key leadership learning using a Cascade

Leader labs allow

participants to

share learning

goals and desired

leadership

behaviors – and

receive feedback

and explore

team dynamics in

real-time.

´BEST PRACTICE

Figure 8: Simulation Screen Shot – Sales and Channels




Kit�2. They then have the opportunity to apply the lessons to their own organizations. The Cascade Kit is meant to bring the lessons of Leadership Connections (including the metrics, the strategy and the lessons learned) to the rest of the organization. The directors can also report feedback in an online survey.

Executive Engagement

The CEO and senior executives were key participants in the pilot of the simulation.

In several extensive planning sessions, the company’s top executives worked with SLS, BTS and Oliver Wyman to design a business simulation that would be realistic, authentic and closely mirrored to Sun. Further, the simulation would have to be fully integrated with tightly aligned skills-building sessions. The goal was not to have Sun directors experience just any business simulation, rather, it was to give them a chance to run a company just like Sun as CEOs. This is how they would come to truly understand the CEO’s new strategic imperatives, which would be at the heart of the simulation.

Similarly, all the data, concepts, financials and initiatives came from the executive team, which is able to contribute to the simulation in a very personal way. Each member of the executive team gave one-on-one interviews to the SLS / BTS planners, participated in concept presentations and tested the simulation. They also agreed to be videotaped while sharing their insights on various Sun strategies. Participants watch the interviews as those strategies are addressed in the workshop experience. The final step in assuring authenticity was a test-run at an offsite with Sun’s top 50 executives. SLS and partners incorporated the group’s feedback before SLS presented the final model to the CEO and executive leadership team (ELT)�� for approval.

Change Management

Leadership Connections was marketed and rolled out with a communications strategy that included:

1. The global announcement of the Leadership Academy from the chief HR officer;

2. A presentation to senior HR staff by the CLO;

12 The “Cascade Kit” is a website with short modules that take a leader’s direct

reports through the basics of the simulation.13 The executive leadership team (ELT) refers to the CEO and his direct reports.

Executive

involvement in the

simulation included

one-on-one

interviews,

participation

in concept

presentations

and testing the

simulation.

K E Y P O I N T



3. A program overview email to all HR, vice presidents and directors;

4. Director and vice president invitations from the CEO and executive leadership team to participate in the program;

5. A webinar overview for all HR and worldwide CLOs, led by the management consultant; and,

6. A webinar to train HR on applying insights from assessments, led by an Oliver Wyman consultant.

Implementation HR business partners, with input from ELT, select the participants who enroll in one of the 10 workshops being held over an 18-month period. Participants receive their invitations directly from the CEO.

Multiple parties share the responsibility for delivering Leadership Connections, as follows.

• SLS and HR host the program and deliver one of the modules.

• SLS handles participation, logistics and evaluation, and manages the website.

• BTS custom-built and produced the simulation, and delivers the simulation during the workshop experience, including facilitation. The simulation is adjusted according to feedback from participants and SLS managers.

• Oliver Wyman delivers the pre- and post-work programs, the learning labs, and the coaching before, during and after the simulation for all directors and vice presidents.

The program was initially implemented in early 2008 when participants in the first session of Leadership Connections began their “pre-work,” leading up to the main program that took place in April 2008. A second session began pre-work several months later and convened in July 2008 for the workshop experience. A total of 10 sessions will be run to include every director and vice president in the company. Originally the program was planned to take two years to implement, but the early successes and overwhelmingly positive feedback led to an accelerated 18-month implementation.

MaintenanceProgram evolution is based on feedback from session to session, described as follows.

Leadership

Connections is a

prime example of

multiple parties

(SLS, BTS and

Oliver Wyman)

working together

to develop and

execute a single

business program.

A N A LY S I S



The content has been (and continues to be) adjusted after each session in response to participant feedback. For example, after the first session, more time was devoted to smaller group simulation work and less to large plenary sessions. Content would also be modified in the case of a significant shift in company priorities or the rollout of a major new initiative that impacts business goals. The flexibility of the program and the fact that it shifts according to business goals is one of the keys to its success – it remains relevant no matter the state of the company or its current goals.

Leadership Connections is so authentic, in fact, that some of the new strategies it brings to life were finalized in the simulation design sessions. The process of thinking through the simulation and the metrics for success forced the executive team to concretize new strategies, and more clearly formulate and articulate pieces of its vision. One of the supporting key metrics was introduced companywide just prior to the April session.

TechnologyTechnology is integral to Leadership Connections – and is used before, during and after the simulation as follows.

Pre-Work – Developed internally, a Leadership Connections collaborative learning site (see Figure 9) offers participants one-stop enrollment, program information, links to hotel and flight reservations, assessments, required reading downloads. Participants can also access self-paced modules based on learning objectives, which are linked directly to the company’s LMS system. Program participants can also complete a biography and access Flickr�� to select an image of what Sun must do to grow, which they print out and bring to the workshop.

Importantly, participants use the site to complete their required web-based self-assessments (360-degree feedback, FIRO-B and Hogan Inventory), and select a date and time for their assessment debriefs with an executive coach.

Custom Simulation – Each team uses a sophisticated Excel-based simulation tool with a Visual Basic interface to run its simulated company. (See Figure 10.) The tool offers a range of business management features, including “what-if” forecasting that estimates the financial impact of a given decision. The simulation tool provides more than 90 business decision scenarios.

14 Source: http://www.flickr.com/about.

The flexibility of

the program’s

design assures

that content

remains relevant

to the company’s

environment and

current business

goals.

K E Y P O I N T

A portal, like Sun’s

collaboration

site, enables

participants to

easily navigate

a complex,

multifaceted

program.

A N A LY S I S


Post-Work – Participants return to the collaborative learning site to download workshop presentations and directories of session participants and other groups. (See Figure 11.) Access to the Leadership Connections Facebook group page (created by a former participant) is also available. The critical post-work, however, is downloading the Cascade Kit (which includes the leader’s guide, map for sharing Sun’s growth strategy, FAQ cards and link to the Cascade Kit survey). Tracking of Cascade Kit usage began after the July session.

Although the Leadership Connections program initiated the design, the technology was then expanded to the other four major programs (internally developed). The online courses are connected to the company’s LMS.

Social networking

provides a

platform for

continuing

conversations,

establishing

deeper

relationships and

creating visibility

of talent.

´BEST PRACTICE


Figure 9: Sun Collaboration Site


2�BERSIN & ASSOCIATES © MAY 2009 • NOT FOR DISTRIBUTION • LICENSED MATERIAL


Figure 10: Simulation Screen Shot - Services




Based on Bersin & Associates research, there are six best practices of high impact leadership development.�� Sun has demonstrated all six as follows.

15 For more information, High-Impact Leadership Development 2009: Best Practices,

Vendor Profiles and Industry Solutions, Bersin & Associates / Kim Lamoureux,

November 2008. Available to research members at www.berin.com/library or for

purchase at www.bersin.com/hild.

Analysis of Sun’s Leadership Development Strategy

Figure 11: Post-Workshop Site Page




�. Executive Engagement – The CEO brought focus to leadership development. Executives were key contributors to ensuring that the simulation was realistic, authentic and closely mirrored Sun.

2. Business Strategy Alignment – The primary objective of Leadership Connections is to build business and financial acumen. Following completion of the program, participants must brief their teams on Sun’s growth strategies using the Cascade Kit (described earlier).

�. Defined Leadership Competencies – Leadership Connections was specifically designed to support core leadership competencies, company values and company culture.

�. All Levels of Leadership – When designing the leadership strategy, Sun leaders kept in mind the lifecycle of a leader inside the company and how to build the skills and capabilities as responsibilities become more complex. There is a core program for every level of leadership.

�. Talent Management Integration – Leadership development is fully integrated with Sun’s overall talent management framework. SLS has a strong relationship with the global talent management team, ensuring alignment of key development priorities – with the end goal of building a ready pipeline of leaders.

�. Comprehensive Program Design – A complex, business-specific simulation is the center of the five-day offsite Leadership Connections program that incorporates assessments, online self-study, exercises, mentoring, coaching, networking and feedback. Leadership development, in general, at Sun also includes project and expatriate assignments, leaders teaching leaders, e-learning, and a variety of supporting classroom courses.

Several measurements are in place to evaluate the effectiveness of leadership development at Sun. The core methods are Kirkpatrick’s four levels��:

• Level 1 Reaction – Participant surveys;

16 Donald Kirkpatrick’s four-level Measurement Model has been widely published in

many articles and its terminology is well-known to most training professionals. The

original model was published in Training and Development Handbook, R. L. Craig,

McGraw-Hill, 19�6.

SLS provides their

leaders with tools

to “cascade”

key messages

related to

business strategy

and leadership

lessons to their

organizations.

´BEST PRACTICE

Metrics and Evaluation



• Level 2 Learning – Discussions / observations;

• Level 3 Behavior Change – Documentation of completed tasks, 360-degree feedback improvement and survey results from participants’ managers; and,

• Level 4 Business Results – A decrease in regrettable attrition and lower hiring costs, and an increase in two key company metrics (customer lifetime value and revenue per user).

Also tracked are key results from the annual employee survey. Notably, “likelihood to leave Sun” is lower among leadership development participants. The “recommend Sun index” (a measure of whether an employee would recommend Sun to customers, partners and potential hires) is higher.

Flexibility Is KeyLeadership Connections’s flexible nature and its frequency (10 sessions over 18 months) provide many opportunities for continuous improvement. After the first session, it was clear that participants got more value from the simulation than from the plenary sessions, so schedules were shifted accordingly. More clarity was needed around the role vice presidents played in the process – so SLS, BTS and Oliver Wyman reexamined the learning objectives, and put tighter definitions and parameters in place for this critical vice president “stealth” training. Examining weaker team results offered insights into what program areas could be strengthened and how more support could be given during the simulation. More emphasis was also needed to increase participation in the pre-work. All of these adjustments were made for the July session.

Implementation Requires CoordinationIn addition, implementation of this very complex program was quite difficult. Requiring every vice president to participate was also an unanticipated problem. Coordinating schedules means that the number of vice presidents

1� For more information, High-Impact Leadership Development 2009: Best Practices,

Vendor Profiles and Industry Solutions, Bersin & Associates / Kim Lamoureux,

November 2008.

Eighty-three

percent of

companies that

evaluate their

programs align

their program

content with

business strategies

and goals.��

K E Y P O I N T

Lessons Learned

Leadership

programs should

be continuously

evaluated and

modified to ensure

high degrees of

relevancy and

effectiveness.

´BEST PRACTICE



able to attend determines the number of Leadership Connections’s participants. As the senior manager of employee training shared,

“One lesson learned is be careful ‘how’ you design. You need to design for manufacturability.”

Executive EngagementOn the other hand, Sun learned the value of executive engagement in the process of leadership development. As the senior manager of employee training noted,

“If you’re really going to be successful, you have to have the CEO with you all the way through the design process.”

If the Leadership Connections program had been initiated by the HR department, nobody would have paid attention to it, the senior training manager indicated that there would have been no momentum and it just would have fallen apart. The CEO’s engagement has been critical to the success of the program.

The Leadership Connections program, as well as the newly minted Sun Learning Systems Leadership Academy curriculum, has so far been considered a success.

Even today, with sales down and two significant staff reductions in the space of a year, the company remains committed to leadership development. Although it has not increased its funding for leadership development programs, it is also not decreasing it. One executive noted the company’s commitment this way,

“Internal training usually follows the ebb and flow of the business. When a new CEO comes in, he ramps up training

and goes after leadership development because he believes it adds value. But when the company hits rough times it goes

down the tubes. When Jonathan [Schwartz] came in, we were going through one of those down periods. However,

he felt without strong leaders we would not be able to drive the new vision or new strategy. He said he had to have

confidence that we have the right leadership talent.”

Executive

engagement

throughout the

design process

is paramount

to successful

execution.

´BEST PRACTICE

Next Steps / Looking Ahead

The CEO views

the leadership

development

programs as an

integral part of

Sun’s current

business growth

strategy.

K E Y P O I N T



Indeed, it would have been easy for the CEO to shut down a costly and complex program like Leadership Connections until the company and the economy emerge from the current turmoil. Instead, the CEO simply reiterated that the leadership development programs are part of Sun’s current business growth strategy.

The senior manager of employee training said,

“It’s even more important now than it ever was.”

The executive leadership team did make some changes to the content of the Leadership Connections simulation to reflect the company’s current challenges. Otherwise it has remained unchanged.

However, there are still leadership development gaps to be filled. For example, the creation of a new training program for high potentials�8 was “put on the back burner.” As Sun executives explain it, all of their attention was focused on Leadership Connections. The focus in the beginning of the new CEO’s tenure was driving his mission-critical business strategy. SLS diverted all of its energy to making sure the company’s current and near-future leaders were trained.

Sun executives also say they would like to drive Leadership Connections lessons (particularly the company’s strategy and execution thereof) deeper into the leadership channel, including managers and their direct reports. As the senior training manager shared,

“We’ve started with vice presidents and directors, but I really think the Cascade Kit has more potential utilization

than we’re getting right now.”

The company is planning meetings to design the next phase of the Leadership Academy. Sun is considering combining Leadership Connections with the New Director Transition program, because there will be a lower volume of new directors.

Sun Microsystems, like many companies engaged in producing technology, faces a rapidly changing business environment. Its focus on developing

18 At Sun, “high potentials” refer to those individuals at a first-level manager

program who have the potential to move to higher levels of management.

Leveraging

existing successful

programs and

repurposing

them for other

audiences creates

continuity of

messaging

and builds

collaboration.

A N A LY S I S

Conclusion



nimble, skilled leaders permeates the company and is largely a function of the CEO’s commitment to leadership development.

Its Leadership Academy and Leadership Connections program have all of the elements of a best-practice leadership development strategy, as it:

• Is evangelized by the CEO;

• Has a centralized structure;

• Has relevant and progressive program content (which is in close step with company’s business goals);

• Incorporates state-of-the-art technological deployment;

• Offers a variety of opportunities for leaders to learn according to their own styles;

• Allows for real-life and real-time problem-solving; and,

• Is intimately aligned with the company’s business strategy.

The innovation Sun has employed with its products is evident in its leadership development strategy. The CEO and executive leadership team’s strong support, along with an organized and well-executed structure, combine for a leadership talent development strategy that positions Sun for a sustainable and prosperous future.



Appendix I: Table of Figures

Figure �: Sun Microsystems at a Glance 4

Figure 2: Sun Learning Services – Audiences 6

Figure �: Sun’s Leadership Framework 8

Figure �: Sun Leadership Talent Strategy 9

Figure �: Leadership Academy Framework 11

Figure �: Developing Leaders at All Levels 12

Figure �: Leadership Connections Workshop 14

Figure 8: Simulation Screen Shot – Sales and Channels 16

Figure �: Sun Collaboration Site 20

Figure �0: Simulation Screen Shot - Services 21

Figure ��: Post-Workshop Site Page 22



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About This ResearchCopyright © 2009 Bersin & Associates. All rights reserved. WhatWorks® and related names such as Rapid e-Learning: WhatWorks® and The High-Impact Learning Organization® are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or re-used without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.

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