cipd ireland where are tomorrows leaders today final version mtim 1110

Where are

tomorrow‟s

leaders today ?

Marc Timmerman, in associationwith Hudson EuropeCIPD EE Conference Nov 26th 2010 Dublin

Copyright of Marc Timmerman, 2010

The

Mosquito &

the Nudist

Colony

Anno 2009

What kept our Leaders awake in 2009 ?

Engaging & Retaining Talent while Right-Sizing

Source : Hudson Research, 2009

Anni 2010-

2011

A Tsunami of peopleleaving …

“Economic Battle Fatigue”©

o 1 out of 3 key performers is considering leaving their employer in 2010. (Source : The Grapevine, Feb 2010)

o 1 out of 4 high potentials is considering leaving their employer. (Source : HBR, May 2010)

o This year staff attrition could cost the UK economy in excess of £1 billion. (Source : The Grapevine, Feb 2010)

o The Hudson Talent Engagement Survey Results indicate an average of ‘weak’ contracts between 30 & 50% in Europe in H1 2010. (Source : Hudson)

o Multiple external surveys in Europe indicate that there could be an employee turnover as high as between 40-60% in 2010 as economies slowly recover.


Ready to play Musical Chairs ?

Focussed HR Issues in 2010

Separate Schools of Thought

o Two Main Schools of Thought :• Individual Entry Point : Talent Engagement & Retention

• Organisation Entry Point : Business Strategy & Workforce Planning

• Hybrid : Succession Planning

o Many focussing on increasing volume of Talent Pool• Microsoft moving from 4-6 % to 10% of first Tier Top Talents

– Anticipating Retention Risk ?

– Investing towards Future Growth ?

– Gaining Competitive Advantage ?

o More focus on employer branding as part of commercial branding• If people like us as an employer, we must be good as a company !

• Re-inventing the Brand to come to a multi-facetted appeal for many

• The Employer Value Proposition


Should I Stay or Should I Go ?(The Clash, 1982)

PsychologicalContract

Make

ChangeStay

Buyvs

vs

Employee

Employer

The Business Case for

Employee Engagement

2. HIGH PERFORMANCE

& RETENTION

4. POSITIVE SHAREHOLER

RETURNS

1. ENGAGED &MOTIVATED EMPLOYEES

3. POSITIVE CUSTOMER EXPERIENCE

EASIER SAID THAN DONE

Factors affecting Engagement

Research carried out by Purcell et al (2003) established that the key policy and practice factors influencing levels of

employee engagement were:

– received training last year;

– are satisfied with career opportunities;

– are satisfied with the performance appraisal system;

– think managers are good in people management (leadership);

– find their work challenging;

– think their firm helps them achieve a work-life balance;

– are satisfied with communication on company performance

Source: A handbook of HRM Practice by M. Armstrong (2003)

What are the New Leadershiprequirements ?

Leadershipoldstyle ?

Organizations

o ‘are social arrangements for the controlled performance of collective goals’ (Huczynski& Buchanan 1991)

o ‘As the basic unit of an organization is the role rather than the person in it, the organization is maintained in existence, sometimes over a long period of time, despite many changes of members’ (Statt, 1991)

oA Company Culture is Shared Values and Beliefs that underlie a company’s identity.

“The story of the Monkeys& the Banana tree”

Socio-Cultural influences

Technological influences

Political - Legal influences

Economical influences

Ecological influences

The formal subsystem :• Management• Structure• Operations

The informal subsystem :• Leadership• Culture• Politics

The Organisation

A systemic view on an organisation

Developing the Leaders of the Future

& the Box of Pandora

Maximum deployment of resources required for attracting,

selecting, developing and retaining talent. “Mapping” of in-house talent (in all layers of

the organisation) based on current performance and

potential growth.

Identify and develop in house talentwith the potential to grow

into a leadership role into the type of leadership needed in the

future, going on the organisation’s strategy.

Develop future leaders by mapping out which succesful managers qualify for which

growth path, and by grooming them towards this function in

order to assure success in assuming the role.

Talent ManagementHipo ManagementSuccession

Management

Combination of both practices

Think Long-Term at the Crossroads of Succession & Talent Management


The biggest injustice is the equal treatment

of people who are not the same

How do most Executives recognize Future Talent ?

Sources: Organizational Dynamics (1986), Human Resource Management, (1998), National Productivity Review (1989), Journal of Management Development (2003)

• Has a unique perception of occupation

• Is very time conscious

• Shows independence

• Has a high level of commitment

• Has a phenomenal amount of energy

• Shows a vibrant sense of creativity

• Strives for continuous improvement

• Gives sharp remarks

• Shows willpower

• Varying interest in teamwork

• Gives a demanding impression

• Puts the job before everything

• High intelligence

• Has a broad thinking style

• Is part of the dominant coalition

Avoid Creating your own Louis XIV

Initiative IntrospectionProblem solving

Derailment is often caused by:

• Cold heartedness

• Arrogance

• Self-glorification

Negotiation skills Sensitivity to others

Team builder Strong relationships Interpersonal skills

Good reputation

EQ

Assertiveness Thoughtfulness Energy

Early

Career

characteristics High performance & IQ

Mid Career

characteristics


IQ + EQ + LQ =

Top Talent


Clusters of Critical HiPo CompetenciesResearch done by the Free University of Brussels, 2004-2005

Through Principal Factor Analysis a cluster of three Meta-competencies was detected explaining 70% of variance

Source: The Journal of Management Development (2003)

Performance Strategic Change

Competency Competency Competency

Teamwork .854

Performance Motivation .669

Delegation .690

Leadership .680

Impact .596

Creativeness .515

Company Identification .861

Flexibility .743

Vision .693

Cultural Awareness .803

Risk Taking .755

Feedback (searching for and using) .689

The Critical Competencies for Future Executives

Prof Paul Evans (InSead) :

The Leadership style of the Future : “The Understated Leader”

Prof Manfred Kets De Vries (InSead) :

The Leader of the Future has the ability to create a company culture and being theglue of the team:

– Community: creating an environment of mutual support, respect and collaboration

– Pleasure: creating employee satisfaction and enthusiasm through stimulating continuous learning, creativity, excitement and humor

– Meaning: providing a meaning for the society as a whole: putting things in perspective

Thus creating the possibility of growing a Sense of Belonging

Source: Journal of Human Resource Management (2003)

The Pixar Story

Pixar’sOperatingPrinciplescanbedistilled down to 3 principles.

1. Everyonemust have the freedom to communicatewithanyone.

2. Itmust be safe foreveryone to offer ideas.

3. We must stay close to innovations happening in the academiccommunity.

Ed Catmull, President of Pixar

o "We thinkthatlastingrelationships matter and we sharesomebasicbeliefs: Talent is rare. Management's job is not to prevent risk, but to build the capability to recoverwhenfailuresoccur. We must constantlychallenge all of ourassumptions and search for the flawsthatcoulddestroyour culture.

o "Equallytough is gettingtalentedpeople to workeffectivelywithoneanother. Thattakes trust and respect, which we managers can'tmandate; they must beearned over time. What we can do is construct an environment thatnurture'strusting and respectfulrelationships and unleasheseveryone'screativity.”

o “Ittaughtusan important lesson in the primacy of people over ideas: Ifyougive a goodidea to a mediocre team, they’llscrewit up; butifyougive a mediocre idea to a great team, theywilleitherfixitorthrowitaway and come up withsomethingthatworks.”

o “Don’tpunishpassion. Be criticalabout the idea, not the creator. And Ifyouhave to consistentlymicro-managethenyou’rehired the wrong talent orhaven'tinvested in mentoringthem.”

A feeling of obligation to serve the company and to work hard

A feeling of necessity to remain working for the company as changing jobs would cost too much (economic, effort, social)

PERFORMANCE

RET

ENTI

ON

Continuance Commitment

Normative Commitment

Affective Commitment

A feeling of attachment to the company and its values (belonging, solidarity, and affiliation)

Meyer & Allen

Organisations are People-Based

ENGAGED EMPLOYEED ARE HIGHER PERFORMING & LONGER TENURED

Leaders are made

The Leadership Gap

Does HR need to fill the gap ?

o On average 28 to 32% of your managers are fully

competent in :o leading people

o leading a complex and changing business

o steering towards the future

o Some of the leadership gaps HR is expected to fill :o Listen to the voice of your Talent, give them practical growth

opportunities, take a risk with them.

o Create an atmosphere at the top that offers protection and allows

people to make mistakes.

o Create possibilities for Baby Boomers to understand Generation Y

o To Walk the Talk !Copyright of Marc Timmerman, 2010

Preferred Leadership Style

Age Groups Global 25-30 31-37 >38

Participation 4.32 4.33 4.31 4.36

Coaching 3.92 4.18 3.77 3.99

Informing 3.81 3.98 3.74 3.8

Interaction 3.26 3.34 3.17 3.38

ParticipationA leader’s use of team members’ information and input in making

decisions

Coaching Educating team members and help them to become self-reliant

Informing A leader’s dissemination of company wide information

Interaction Strong focus on interfacing with the team as a whole

Source : Hudson / Vlerick Hipo Research Study, 2006

Offering Of Development Practices For HiPo‟s

Top 5 regarding “Perceived Effectiveness”:

1. Starting-up new projects

2. Mentoring & Receiving opportunities to make mistakes

3. Having a high degree of autonomy

4. Having a talented boss

5. Learning from talented people

Source : Hudson / Vlerick Hipo Research Study, 2006

The Functions Of Mentoring

Career Functions :

Sponsorship

Coaching

Protection

Challenging Assignments

Exposure and visibility

Psycho-Social Functions :

Role modeling

Counseling

Acceptance and Confirmation

Friendship

“The most conspicuous difference between star and nonstar women is access to a supportive mentor.”

Source: Kathy Kram, Mentoring at Work

Dilemma in Developmental Actions

o Intrinsic motivators make HiPo’s give high added value to :

mentoring, job rotation, 360 fb

• Discovering one’s own limits

• Raising the bar for themselves

o Organizations however need better leaders as this is a main

retention issue for keeping people inside the company.

• Strong need for internal management trainings in order to secure

and improve the needed leadership potential inside an organization.


Career Management

T

E

S

T

I

N

G

ExperiencedExternal

Influx

Zero-MeasurementPeriodEntry Level

ControlledZigZagManagementPeriod

Junior &Mid Career

Senior MgmtCareerTrack

Top ExecTrack

Final AdmissionAssessment

Senior MgmtDevelopment Centre

Junior MgmtDevelopment Centre

Young Graduate Assessment

BUYING SUPERSTARS 80 / 20 rule

Developing the NextGeneration of Leaders

The potential effect of increasing

women‟s employment

Percentage of women on boards in top 300

European companies

• There are still significant differences within

Europe, especially between Northern and

Southern Europe

• The number of women in executive

roles overall is – slowly – growing:

• 8% in 2004

• 8.5% in 2006

• 9.7% in 2008

(European Professionals Women Network, 2008)

C-Level Men and Women: two of a kind?

o Compared to C-Level men, women tend to focus less on immediate results; take the bigger picture into account and take a more autonomous stand. They keep a distance from the concrete details and day-to-day issues, have a conceptual view and appear more open to change.

o They also pay more attention to open communication in the organisation and adopt a more ‘human’ approach with room for co-operation, mutual support and sociability.

Source: Hudson, Could the right Man on the right place be a Woman ? 2008

o Younger feminine leaders score higher onaltruism: people-oriented, helpful and socially confident. They also are more change oriented and organised than younger male leaders.

o Younger male leaders focus more on emotional stability (relaxed, stress-resistant and decisive),they score more strongly on leadingability and persuasiveness and differentiate themselves by their ambition, result-orientation and strategic thinking.

Young Men and Women leaders (under 40 )Source: Hudson, Could the right Man on the right place be a Woman ? 2008

And whatabout …

Employer Value propositionLeadership delivering on „Promises‟ is KEY

‘The organization delivers on the promises it makes to employees’

How does it manifest itself with current and potential employees:

o I’m clear on what it means to work in my organisation– common clarity on the “psychological” or “social” contract

o What you told me it was going to be like to work here is like it really is; and

o It aligns with what I’m looking for from an employer

One of Our Biggest Challenges on a short term

is that we will have to be

many things to many individuals.


The Meaning of Leadership

o The Leader has a determining impact on Company Culture

o Leaders serve and sacrifice themselves

o The Best Leaders develop others

o “We all need loving critics”

o Making mistakes is human

o “You can’t plan to be courageous, but you can choose it”

Management is DOING THINGS RIGHTLeadership is DOING THE RIGHT THINGS


The relational side of Leadership

o Leadership is personal

o “Leaders should want to be liked”

o Try to understand others

o Trust is not an evidence !

o Provide clarity

o “Let your people go”


Curtains !

Thankyouforyourattention

“The certainty of misery is better

than the misery of uncertainty”

cipd ireland where are tomorrows leaders today final version mtim 1110

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