rbl institute next generation leaders: what really works...
TRANSCRIPT
Next Generation Leaders | TheRBLGroup ©2013 1
Next Generation Leaders:What Really Works in Their DevelopmentJOE GROCHOWSKI , & KEITH LAWRENCETHE RBL INSTITUTE | MINI FORUM WHITE PAPER | OCTOBER 2013
Participating RBL Institute Members:
Tina Kao, BASF | Emily Riggs, Campbell Soup Company | Laura Fuentes, Hilton Worldwide | Shawna Erdmann, Intel | Kelly
Opheim, Mondeléz International | Isabel Matthews, Novartis | Hilary Farrar, PwC | Christine Merminod, Rio Tinto | Madelynn
Macur Brousil, Walgreens
EXECUTIVE SUMMARY
Developing the next generation of leadership is critical to
organizational success and sustainability. One seminal piece
of research found that differences in executive leadership
accounts for as much as 45 percent of organizational
performance. However, many companies are struggling with
how to develop leaders effectively. Turnover rates are high,
in particular among leaders who join organizations at senior
levels. Replacements for the aging baby boomers are in short
supply within several industries and specialty skill areas.
Having sufficient numbers of skilled leaders to meet future
business needs is routinely identified among CEOs as one of
their most significant (and worrisome) challenges.
RBL’s Top Companies for Leaders research (conducted in
partnership with AonHewitt and Fortune Magazine in 2012)
is the most comprehensive, global research on leadership and
talent. Findings from this research highlight the importance
of developing leaders and building leadership capability
throughout your organization. Below is a brief summary of
some findings from the Top Companies for Leaders research,
which link to many of the member practices shared during our
discussion.
Top Companies for Leaders build leadership capability by:• Developing leaders to strengthen both fundamental and
differentiating competencies.
• Investing at all levels in the organization.
• Creating more developmental options for employees and
greater customization than other companies, including
more high-impact experiences (leaders as teachers, talent
mobility, simulations, external experiences).
Top Companies for Leaders create a reliable pipeline of future leaders, boosting individuals strategically through the organization by:• Dedicating resources to succession management practices.
• Agressively managing succession plans, linking them to
organizational needs, and including a broader and diverse
pool of potential candidates in the succession plans.
• Actively working to generate the largest possible pool of
potential candidates by going deeper into the organization.
• Including external talent pools and diversity goals in
succession plans.
KEY QUESTIONS ADDRESSED
During this call we explored what really works in the
development of future generations of leaders by addressing
two key questions:
1. How is your company defining what is required (skills,
experiences, attributes, etc.) for future leaders to be
successful in your firm?
2. What best practices are you using to accelerate the
development of your leadership bench strength?
INSIGHTS FROM THE DISCUSSION
• Have a clear agreement on what leaders must do to be
successful in your organization.
• Deploy a wide array of development experiences (on-the-job,
education, and life experience) to build the desired skills and
knowledge.
• Pinpoint what specific individuals need to maximize their
growth through personalized development plans.
• Focus on developing leaders at all levels of the organization.
RBL Institute
Next Generation Leaders | TheRBLGroup ©2013 2
DEFINING THE SUCCESSFUL LEADER
Each company on the call shared their perspective on what
it takes to be a successful leader within their respective
organizations. Defining the competencies, skills, and
attributes of a successful leader is something all organizations
do. There are lots of competencies, but competency
models seem to be very similar. If we took your leadership
competency model and took the name off and put it on
the wall, we probably couldn’t guess which company is
represented.
RBL’s research on leadership competencies found that 60–70
percent of leadership competency models consist of the
“same stuff,” regardless of company size, industry, public sector,
private sector, etc. RBL refers to this as the Leadership Code.
These are the leadership fundamentals that are common
across all organizations. (Figure 1)
The remaining 30-40 percent of leadership competencies
are unique to each organization. RBL refers to this as the
Leadership Differentiators. It’s what makes your leadership
distinct from others. (Figure 2)
During the call each member company shared how their
organizations think about leadership and the competencies,
skills, and attributes of successful leadership.
Figure 1. Leadership Code: Summary
Figure 2. Leaders must nail the fundamentals as well as what makes our leaders unique
LEADERSHIP CODE(COMMON)
LEADERSHIP DIFFERENTIATORS
Leadership FundamentalsTop Companies have more of the leadership fundamentals repre-sented in their competency model (86% vs. 70%).
Leadership DifferentiatorsTop Companies are more likely to emphasize differentiating compe-tencies (88% vs. 69%).
Next Generation Leaders | TheRBLGroup ©2013 3
• Campbell Soup Company looks at leadership from two
dimensions. First they look at the individual and identify
what a future leader needs to get ready for their next pivotal
role in the organization. For example, the ability to lead
through ambiguity, the ability to connect globally, and the
ability to manage cross functionally are just a few of the
attributes Campbell’s looks for in their leaders. Second,
they look at leadership from the organizational perspec-
tive. This entails looking to the future needs of the business
and the implications for leaders across the entire organiza-
tion. Campbell’s is currently focused on leaders who have
a strong customer focus. They are also carefully studying
what the organization needs to be high performing organi-
zation that is proactively creating the future.
• Hilton Worldwide starts with identifying the current
and future business needs and works backward from
there in defining the qualities and experience that leaders
need, from both a collective and individual perspective.
Successful leaders at Hilton must demonstrate some of the
following skills: an enterprise-wide mindset, the ability to
work broadly across the organization, develop group-wide
systems, experiences working in both the corporate office
and in the field, the ability to drive consumer value, build
capability, and be effective stewards of the global culture.
Hilton also seeks leaders who can “hold steady” during
uncertain times. Their leaders need to be ready for new
opportunities and challenges while staying the course,
which requires strength and resilience.
• Intel has adopted a competency-based model for
leadership and is using it broadly throughout the company.
Some of the competencies include knowing the marketplace,
being able to effectively commercialize, developing the
people in your organization, etc. Internal consultants
meet with executives to draft development plans that are
specifically tailored to the individual, their strengths, as well
as the business they are in. They are also leveraging the
field of neuroscience to help drive behavior changes and
make behavior changes “stick.”
• Mondeléz International (spun off from Kraft Foods a year
ago) also has a leadership competency model that is closely
linked to the business strategy. They have identified seven
“leadership imperatives” that define what they expect every
leader “to do” to execute against the business strategy and
these leadership imperatives map to competencies that can
be developed. In addition, they have defined experiences
that leaders ideally should have, such as working globally in
developed and developing markets..
• Novartis has three key elements that frame their definition
of a successful leader:
1. Functional competence and experience: defined by job
families, breadth of roles undertaken, and experience
across different geographies and market types.
2. A comprehensive leadership framework, outlining the
attributes required to successfully “lead” in three core
areas: “self, team, and business.”
3. Values and behaviors: embodying the way they want to
work together at Novartis.
• Rio Tinto has a strong foundation for leadership that
includes a defined set of competencies and the values of
the organization. It is tailored to the specific needs of the
business. There is a strong focus today on building business
acumen, leadership agility and resiliency, the ability to
operate in a complex environment, and learning from the
unknown in both developed and developing markets. There
is recognition at Rio Tinto that much of what we learn
comes from the unknown, experiential learning, and learning
from peers.
• Walgreens has a three-point company strategy and a
supporting five-pillar leadership model. The pillars focus on
operations/business leadership, customer leadership, people
leadership, and their brand competency, Healthy, Happy,
Creating Value Together. Under these pillars, there are
competencies such as:
° Adocating customer focus
° Thinking strategically
° Innovating & taking prudent risks
° Building talent
° Executing with excellence
Their working definition for executing with excellence
includes operating successfully in the cross-functional
matrix. This includes influencing others, collaboration,
managing conflict, and creating high performing teams
as well as self-management or EQ and understanding the
perspectives of the customer, the enterprise, and the cross-
functionality of everyone’s work.
• BASF recently rolled out a new global competency
model aligned to their ‘We Create Chemistry’ business
strategy. The model includes eight competencies that
apply to all their 100,000 employees. Everyone is viewed
through the same eight competencies. Leaders must
not only demonstrate the eight competencies but they
must also be able to develop those competencies among
their teams. BASF identifies potential future leaders by
assessing their current performance as well as their learning
agility - thriving and exceling in complex, ever-changing
environment.
Next Generation Leaders | TheRBLGroup ©2013 4
DEVELOPING THE NEXT GENERATION OF
LEADERS
Every company uses a wide-range of HR practices and tools
to build their bench of next generation leaders. Many of the
tools used to strengthen the leadership bench are the same
across companies, but RBL’s Top Companies for Leaders
research found that Top Companies have a bigger menu
of leadership development options and have aligned them
with shared leadership expectations. These development
options generally fall into three areas: on-the-job experience,
education, and life experience. Morgan McCall at the Center
of Creative Leadership created a simple formula for leadership
development called the “70/20/10” model. The RBL Group’s
formula for development is 50/30/20 (see Figure 3 below).
Regardless of which formula or model you use, the point is
to provide your leaders a blended mix of on-the-job learning,
education, and life experiences to advance their careers.
Below are some examples of the programs in place to develop
leaders shared by Institute members.
• Accelerating leadership development at Campbell Soup
Company is “from the ground up” and is based on the
belief that building the bench (increasing readiness) is
specific to the individual and the role the individual is
being developed for. The approach is very focused on high
potential employees who are poised to take on greater
© The RBL Institute!November 2012 / Leadership Sustainability!
3! Formula for development: 50–30–20
50% 30% 20% ON-THE-JOB • Job assignments • Special projects • Supported by
one-on-one coaching and internal coaching/ mentoring
EDUCATION • Internal training • Development as
learning solutions • External degrees /
continued education
LIFE EXPERIENCE • Business or
industry HR positions
• Community involvement
• External mentors and networks
• Self learning
Figure 3. Formula for Development: 50/30/20
responsibility. They look closely at:
° The context of the role and subsequent capabilities the
employee is being developed for.
° What the person needs with respect to development (as
determined through assessments such as Hogan, 360
feedback, career interviews, etc.).
° The use of ongoing coaching (both internal and external
coaches).
Campbell’s is also committed to building leadership capability
across the organization and at every level. They have several
programs that build skills and competencies that are both
open enrollment and targeted development. For instance,
there is a session based on an internal leadership model. In
another example, there are targeted experiences such as the
Women’s Leadership Program involving assessments, external
speakers and group cohorts.
• Hilton Worldwide has established a dedicated Leadership
College and website as part of Hilton Worldwide University.
The wide range of senior leadership offerings include:
° In person, high investment learning events such as “GM
Excellence.” This is a week dedicated for Hilton’s high
potential General Managers from around the world. The
objectives are to refine skills and network with your
peers and C-suite leaders. The curriculum is developed
in partnership with Cornell University’s School of Hotel
Administration.
° Bi-weekly on-line briefings that leaders can quickly
digest. Each briefing includes a link to an internal
speaker addressing a specific business challenge; an
external thought leader or YouTube/ TED talk; and a
short article or white paper. These have been very well
received within the organization and were developed
around the concept of “Leadership in 3 Minutes or Less.”
° An online, facilitated Leadership Transitions Program
for newly appointed and newly transitioning leaders, in
conjunction with Harvard University.
° Annual Business Immersions where senior leaders
spend three days working in a range of departments in
Next Generation Leaders | TheRBLGroup ©2013 5
one of the company’s hotels.
° Executive coaching, 360, mentoring, self-selection
development catalogs.
° A portfolio of leadership development programs for
identified talent to transition through the organization
to Hotel General Manager.
• Intel focuses on both the leaders in key areas of the
company as well as pivotal roles and the pipeline of leaders
for each of these pivotal roles. The assessment criteria they
use include both their agility and achievement mentality.
Individualized development plans are created for each
leader. Partnering with a leading business school, those
with VP potential move as a cohort through a focused
development program. Mentors from Merryck also work
one-to-one with key leaders. In addition, a program
for senior leaders and executives is being created in
partnership with Stanford University to build a common
vernacular and skills/behaviors for leaders at this level.
• As Mondeléz International spun off from Kraft Foods
they kept the things that worked well in the past and
added some additional programs to develop future leaders.
Like other organizations, they also use multi-faceted
assessments and individual development plans. For
the top 40-50 leaders they use assessment and tailored
development plans in order to accelerate the development
of their leaders and help prepare them for the future roles
they are being targeted for. Their CEO is very engaged in
this entire process (which is critical to its success). They
also have a leadership development program for select, high
potential Directors/Sr. Directors. The focus is on developing
themselves, others, and the enterprise, and includes
assessment, coaching, networking, and experiential learning
over a 12-month period.
• Novartis also leverages the 70/20/10 model for
development. Managers are encouraged to hold regular
development and career planning meetings with their
associates to determine the right mix of stretch assignments,
project work, mentoring and coaching, as well as formal
courses. In terms of formal programs, Novartis drew
attention to the following:
° The Novartis Group has developed a suite of prestigious
programs partnering with leading universities to
enhance senior management/executive level leadership.
° For critical roles, such as General Managers and
Franchise Heads, tailored approaches have been
developed integrating assessment and development
centers, coaching (individual and peer coaching), group
projects and assignments.
° Focusing on Female Executives, a 12-month program
has been developed, which was first launched in
2010. This program aims to equip participants with
experiences, tools and new ways of thinking to enable
them to become more versatile, resilient, influential and
inspirational leaders of their teams and businesses. The
program is modular in nature and provides participants
with numerous opportunities to interact and learn from
senior management, work on critical business topics
and extend their network.
° High potential individuals who are earlier in their career
have access to the “Leadership Discovery Program,” a
12-month program that includes classroom modules,
skills building, self-discovery, and mentoring.
• Like many other firms, Rio Tinto leverages the 70/20/10
model for their leadership development. Their portfolio of
leadership development activities includes:
° Learning from your current role and your organization.
° Using resources (such as short videos, readings, etc.) on
a web site portal that are based on their leadership and
functional competencies.
° Leader led sessions accessible to all employees on
subjects such as living the competencies and current
challenges.
° One-to-one coaching and mentoring (available for any
employee).
° Membership in professional associations or positions on
non-profit boards.
° Formal leadership programs targeted to individuals
based on their current role, future role, or future
potential. These development opportunities include
sessions in both the developed and developing markets,
networking opportunities, and skill building in such
areas as strategy, business acumen, and understanding
oneself.
• Walgreens recently launched their corporate university,
which features a number of offerings for individual
contributors, those preparing for management, front line
leaders, managers of managers, and those managing a
business unit. Walgreens Leadership Academy (developed
in partnership with the RBL Group) educates potential and
current VPs on “Leading Well at Walgreens.” It includes
action learning, instructor-led training on core competencies,
360 feedback, leaders as teachers, and individual coaching.
They are also building a second program in partnership
with Wharton at the University of Pennsylvania called, “The
Business of Retail Healthcare,” to reflect the company’s new
strategic direction.
Next Generation Leaders | TheRBLGroup ©2013 6
In addition to all the formal training they encourage leaders
to grow through developmental job assignments, taking on
temporary new responsibilities, expanding “in-role,” and
developing themselves externally through profit and non-
profit board memberships. A Leadership Alumni network
and Yammer community of practice also exists to keep
executives connected to each other and enable individuals
to interact around specific leadership “sound bites.”
• The foundation of leadership development at BASF is
also the 70/20/10 framework. With respect to formal
training, they are focused on increasing accountability and
excitement in becoming a leader of people. A manager
skill-build series called “Driving Performance and Growth in
Your Business” aimed at building stronger leaders was just
launched. It includes quarterly mandatory half-day sessions
aimed at strengthening one’s skills, network, and mindset.
They also target critical moments when leaders transition
into new roles. Any new leader has available to them a
wide range of tools, training, HR support, and executive
coaching to assist them in their assimilation and the first
100 days.
IDENTIFYING THE LEADERS OF THE FUTURE
Identifying which individuals should be targeted for
accelerated leadership development has always been a
challenge. A number of factors should be considered in
determining one's potential. RBL uses the “4 A’s” model
for assessing potential: Ambition, Ability, Achievement, and
Agility (Learning Agility). (See Figure 4 below)
Assessing potential and learning agility continues to be a
difficult challenge for many organizations. Learning agility
has become especially important in identifying future leaders
because we live in a VUCA (Volatile, Uncertain, Complex, and
Ambiguous) world. Leaders need to be nimble.
Being able to quickly capture new insights from experience
and the world around us is increasingly important. The simple
assessment shown in Figure 4 is a quick way to question if an
individual is a high potential for a furue role.
CONCLUDING THOUGHTS
Strong, capable leadership is at the foundation of success
for both individual leaders and companies. Through the
experiences of these companies and others it is clear that
there are several keys to successfully developing the next
generation of leaders.
• Deep personal conviction and hands on involvement of the
company’s senior leadership.
• Having a clear agreement on what leaders must do to be
successful.
• Employing a wide array of development experiences (on-
the-job, education, and life experience) to build the desired
© 2011 The RBL Group © The RBL Group June 2013 / Strategic Workforce Planning
4!
1. Ambition: Does this person have the ambition to grow, test themselves, and become the best they can become in whatever career path they choose to follow?
2. Ability: Does this person have the basic abilities and intelligence to fulfill the highest levels of achievement in their chosen career path?
3. Achievement: Has this person been highly successful in their assignments and have a track record of exceptional success in all responsibilities they have been assigned?
4. Learning Agility: Does this person love to learn and attack career related data to capture new and unique ideas that can be applied to solving business problems and building their career?
Overall how would you rate this individual’s potential?
Assessing potential Figure 4. Assessing Potential
Next Generation Leaders | TheRBLGroup ©2013 7
skills and knowledge.
• Pinpointing what specific individuals need to maximize their
growth through personalized development plans.
• Investing in providing the time needed to learn and practice
new skills.
• Focusing on developing leaders at all levels of the
organization.
Those companies that do this well are the ones that will
continue to excel in the years ahead.