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2
What Makes a Great Executive Leadership Team?
Top Team ASkilled, Smart, Strategic Members
Highly Analytical Thinkers
Solid Leadership Capabilities
Performance Results:
Outstanding
3
What Makes a Great Executive Leadership Team?
Top Team ASkilled, Smart, Strategic Members
Highly Analytical Thinkers
Solid Leadership Capabilities
Performance Results:
Outstanding
Top Team BSkilled, Smart, Strategic Members
Highly Analytical Thinkers
Solid Leadership Capabilities
Performance Results:
Mediocre
4
The Research: A Hay / Harvard Study
Formed a partnership with Richard Hackman of Harvard University*
Gathered data on 60 plus executive teams in 1998 (now, close to 100 organizations)
Created cross-cultural sample of 48 teams
* Hackman, J. R. (2002). Leading teams: Setting the stage for great performances. Boston,
MA: Harvard Business School Press.
5
The Research: A Hay / Harvard Study
Analyzed intact leadership teams (management and executive) Outstanding vs. typical vs. poor teams
Conducted independent assessment Product quality, organizational
performance, team capability, individual capability
Created largest empirical database on Top Executive Teams in the world
Validated through climate survey in their organization
6
Organizational Climate Definitions
Unnecessary procedures are minimizedNew ideas are accepted
Authority is delegatedPeople are held accountable
Mediocrity is not toleratedGoals are challenging but attainable
Flexibility
Responsibility
Standards
Rewards
Clarity
TeamCommitment
Feedback reflects performance
Rewards differentiate performance
Direction, roles and accountabilities are clear
People are proud to belong
People cooperate and give discretionary effort
7
Climates Created in High Performing Teams
Per
cen
tile
Gap
FlexibilityResponsibility
StandardsRewards Team
Commitment
Clarity Total
80
70
60
50
40
30
20
10
0
Outstanding
8
Climates Created in High Performing Teams
Per
cen
tile
Gap
Flexibility
Responsibility
Standards
Rewards TeamCommitment
Clarity Total
80
70
60
50
40
30
20
10
0
Typical
Outstanding
9
Climates Created in High Performing Teams
Per
cen
tile
Gap
FlexibilityResponsibility
StandardsRewards Team
Commitment
Clarity Total
80
70
60
50
40
30
20
10
0
Poor
Typical
Outstanding
10
The Results: 5 Key Findings
1. Outstanding leadership teams are real teams
2. Leaders of outstanding teams are not the “superstar” organizational leaders we usually think of
3. Leaders of outstanding teams pull together and manage the conditions necessary for team success
11
The Results: 5 Key Findings
4. Leaders of outstanding teams have unique leadership styles and competencies
5. Members of outstanding leadership teams are not smarter, but they have more “emotional” intelligence
12
1 - Top Leadership Teams Are Real Teams
Outstanding leadership teams: Have clear, stable boundaries
Complete interdependent tasks collectively: Set enduring mission with jointly
accountable goals– Identifying 4 levels of accountability: Prime,
Shared, Contributory, Remote Develop and monitor strategy together
13
2- Top Team Leaders Aren’t Necessarily the Superstar Organizational LeadersLeaders of outstanding teams:
Often take a less visible role
Rely less on their own talents, and more on those of others
Create a climate and conditions that foster team success
14
3- Leaders of outstanding teams pull together the conditions necessary for team success
DevelopmentDevelopment
DirectionDirection
StructureStructure
PeoplePeople
Leadership
SupportSupport
Results
Conditions
Leaders of outstanding teams manage three main conditions for team success.
15
The Conditions for Team Success: Direction
The purpose of the team must be
Clear Do we know where we are going?
Challenging Is the goal challenging, but not impossible?
Consequential Is the goal meaningful and engaging to us?
16
The Conditions for Team Success: Structure
Well-designed team task Do we have an interdependent goal? Are we approaching it strategically?
Optimal Composition Are we the right size? Do we have the right skill set?
Norms Do we adhere to effective norms of behaviour
in conducting our business?
Focus on the goal rather than internal conflict
17
The Conditions forTeam Success: People
Outstanding Team define competencies required for new team members, such as:
Smart Analytical Thinking, Conceptual Thinking
Driven Achievement Orientation, Initiative, Strategic
Orientation, Self-Confidence, Directiveness
Committed to the team Executive Maturity, Impact and Influence,
Teamwork, Team Leadership
18
4- Leaders of outstanding teams have unique managerial styles and competencies
Exhibit a broader set of managerial styles
Rely more on managerial styles that encourage dialogue Authoritative
Affiliative Democratic Coaching
Avoid a coercive style that shuts down dialogue
19
The Outstanding Leader’sManagerial Styles
100%
90
80
70
60
50
40
30
20
10
0Coercive Authori-
tativeAffiliative Demo-
craticPace-
settingCoaching
88
4141
6060
7777
29292424
4343
56566363
1212
4646
5454
2929
6161
74746969
6464
5151
Outstanding Typical Poor
20
The Outstanding Team Leader’sCompetencies
Holds people accountable for how they behave Team Leadership Integrity Directiveness
Links the team and its purpose to the broader organization Organizational Commitment Information Seeking
Establishes and prioritizes the team’s actions Achievement Orientation Executive Maturity
21
Leaders of Outstanding TeamsHold People Accountable
3
1
2
44
5 Outstanding Typical
Le
vels
of
Co
mp
ete
nc
y
5
4
3
2
1
0Team
LeadershipIntegrity Directiveness
Competency
22
Leaders of Outstanding TeamsLink to the Organization
3
1
3
1
Le
vels
of
Co
mp
ete
nc
y
5
4
3
2
1
0OrganizationalCommitment*
InformationSeeking
Competency
Outstanding
Typical
23
Leaders of Outstanding TeamsEstablish and Prioritize Actions
5
4
32
Le
vels
of
Co
mp
ete
nc
y
5
4
3
2
1
0AchievementOrientation
ExecutiveMaturity
Competency
Outstanding
Typical
24
5- Leaders of outstanding teams have higher levels of emotional intelligence
More in control of their emotions Better able to handle challenging situations Better able to calm others
More sensitive to others Better able to “read” others Better able to motivate others
More honest and genuine More capable of developing and managing new relationships
Emotional intelligence accounts for more than 85% of what separates outstanding from typical leaders
They create emotionally intelligent organizations
25
How the Leader Affects People?
There is a ripple effect. . .
Leaders possessing emotional intelligence have high levels of leadership competencies. They also possess a broad repertoire of managerial styles to use. Broad managerial styles impacts directly the work climate of the team (r=0.72).
Positive work climate explains 30% of the variance in organizational performance.
Why? Positive work climate energizes the subordinate levels to invest their discretionary effort
26
Summary
Outstanding executive teams need
The right leader Focuses on the conditions necessary for
team success May not be a charismatic superstar
The right–not necessarily the smartest–people High emotional intelligence
To be a real team Definition of the group’s work as
interdependent With clear boundaries