Developing a Leadership Strategy - Executive …

1 Developing a Leadership StrategyA Critical Ingredient for Organizational SuccessA White PaperBy William Pasmore, May 2009 / Rev. October 2011 CONTENTSI ntroductionWhat is a Leadership Strategy ?Creating the Leadership StrategyCreating the Leadership Development StrategyImplications for Talent Acquisition, TalentSustainability and Leadership PracticesGetting Results and Building the TalentYour organization NeedsConclusionReferences34819232627273 Organizations depend upon capable Leadership to guide them through unprecedented changes. Yet, there is ampleevidence in the news and in recent research reports that even some of the best and most venerableorganizations are failing to adapt to change, implement their strategic plans successfully orprepare for a more uncertain future. We believe the turmoil we are currently observing has something todo with Leadership , and that if we don t change our current approach to Leadership development, we will see evenmore of the well-known companies disappear or are taken over (think of Lucent, Chrysler, Lehman Brothers, Northern Rock,Merrill Lynch) and new forces like the economies of China and India rise, surveys of CEOs show that theybelieve the one factor that will determine their fate is the quality of their Leadership tmany top executives bemoan the lack of Leadership bench strength in their companies and wonder what will hap-pen once the baby-boomer generation of leaders finally steps aside.

2 Can we count on the next generation of lead-ers to step up once they are in position? Or are we seeing evidence of a talent gap that cannot be closed and willresult in even greater numbers of high-profile failures? What can your organization do to avoid the risks associat-ed with inadequate Leadership and better prepare its current and future leaders for changes that are yet unfore-seen?Every leader is aware of the value of a well-defined business Strategy . Few, however, give thought to the leader-ship that will be required to implement strategies that call for changes in the direction or capabilities of the organ-ization. Without proper Leadership , even the best and boldest strategies die on the vine, their potential never real-ized. This paper defines what a Leadership Strategy is and how to go about creating one for your organization thatwill forever change the way you develop leaders and create new Leadership order to understand what a Leadership Strategy is, we first have to be clear about what we mean by leader-ship.

3 The Center for Creative Leadership has been studying leaders and Leadership for nearly 40 years and hasrecently come to an important conclusion: Leadership begins with individuals in Leadership positions, but it does-n t end there1. The ability of an organization to accomplish its goals does not depend solely on the force of willof a single great leader, or even upon the effectiveness of the organization s chain of command. These things areimportant, but don t in and of themselves help us understand why some organizations succeed where others , research has shown, we must understand Leadership culture, as defined by the collectiveactions of formal and informal leaders acting together to influence organizational not simply the number or quality of individual leaders that determines organizational success, but the abilityof formal and informal leaders to pull together in the support of organizational goals that ultimately makes thedifference. Thus, when we speak about Leadership here, it is both the leaders themselves and the relationshipsamong them to which we refer.

4 At various times, the idea that Leadership is greater than the individual leaderhas been referred to as interdependent, boundaryless, collective or connected more robust definitions, Leadership includes both formal and informal leaders. Observations of actual organi-zations in action are rarely as neat and tidy as their organization charts would suggest. Communication,influence and collaboration are occurring up, down and across the organization ,almost as if theorganization chart didn t exist, as revealed by the work of various people on mapping informal networks withinorganizations2. To ignore this reality in any discussion of Leadership is to miss the point of what is really goingon and what must be understood and managed if strategies are to be implemented is a Leadership Strategy ?5 Thus, when we describe the Leadership of an organization , at a minimum we should consider:The quantity of leaders needed, as indicated by current and projected formal Leadership positionsdepicted on an organization chart (number, level, location, function, business unit, reportingrelationships, etc.)

5 The qualities desired in selection (demographics, diversity, background, experience level)The skills and behavior that are needed to implement the business Strategy and create the desiredculture (skills, competencies, knowledge base)The collective Leadership capabilities of leaders acting together in groups and across boundaries toimplement strategies, solve problems, respond to threats, adapt to change, support innovation, desired Leadership culture, including the Leadership practices in use, such as collaborationacross boundaries, engagement of employees, accepting responsibility for outcomes, creatingopportunities for others to lead, Developing other leaders, learning how to learn, much of the work on talent and Leadership bench strength, the focus has been on only the first two of theseways of describing an organization s Leadership . By leaving out connected Leadership and Leadership culture, wehave overlooked what makes Leadership come alive in organizations and the factors that often determinewhether strategies and plans will actually be good Leadership Strategy takes all of these factors into account.

6 Simply having all of the Leadership positionson the organization chart filled will not produce the Leadership that is required to implement strategies, adapt tochange, support innovation or other important organizational agendas. It is not just having the right number ofbodies, it is what those bodies do and how they relate to one another that matters. A Leadership strategymakes explicit how many leaders we need, of what kind, where, with what skills, and behavingin what fashion individually and collectively to achieve the total success we few organ-izations have an explicit Leadership Strategy . Is it any wonder that without one, CEOs find that they don t havethe Leadership talent they require?Like business strategies, Leadership strategies are based on a thorough analysis of the current situation and aninformed view of the future. The Strategy then provides a series of recommendations to close the gap betweenthe current situation and desired future. Once the Leadership Strategy is known, a Leadership developmentThe Leadership Strategy should be driven by the business Strategy and specify:A.

7 Quantity:How many leaders will be needed over the next 5-10 years, taking into account growth needs and projected turnoverWhenWhereAt what levelB. Qualities: The characteristics individual leaders and leaders overall should possess when selected or retained, such as:DemographicsAgeGenderRaceCulture of originEducationExperienceInternal promotions versus external hiresDiversity, targeted diversityLevelLocation6strategy can be formulated to produce the desired future state, and implications for talent management process-es can be identified. When the Strategy is implemented, business results will provide feedback on how well theleadership Strategy is working and help shape what new business strategies can be considered with the leader-ship talent that has been Skills/Behaviors: The specific skills, behaviors, knowledge, competencies or abilities leaders need byfunction, level, location or unit to implement the business strategyGeneric behavioral competencies that apply to all leaders in the organizationSpecific behavioral competencies by level or functionGeneric skills and knowledge required by all leaders in the organizationSkills or knowledge required by level or functionSkills, knowledge or capabilities by locationLanguage capabilitiesD.

8 Collective Capabilities: The capabilities that are required of leaders when acting together, such as:Providing direction, demonstrating alignment and generating commitment as a collectiveleadership teamSolving problems or making improvements efficiently and effectively that require collaborationacross internal or external boundariesEngaging employees in decision making and to gain their active support in implementingplanned cross-functional actionsJointly formulating strategies and executing them in a coordinated fashionImplementing successful innovation requiring cross-functional collaborationAdapting to change in a cohesive and coherent mannerWorking together to grow the business in new marketsEnsuring compliance/transparency requiring a consistent set of values, beliefs and actionsacross the enterpriseBeing responsive to customers in ways that demand cross-unit coordinationDeveloping talent on behalf of the enterprise, rather than for individual unitsE. Leadership Culture: The key attributes of the culture created by leaders through the way inwhich they leadDegree of dependence, independence or interdependence among leadersKey values that are reinforced through the collective behavior and actions of leadersThe Leadership style exhibited by the majority of leaders (control-oriented, laissez faire,participative)The Leadership practices that are both important and shared across the enterprise (engagingemployees, accepting responsibility, embracing opportunities to make improvements, being customerfocused and so forth)Once the Leadership Strategy is formulated, a Leadership development Strategy can be drafted.

9 It clarifies howthe Leadership Strategy will be accomplished, explores the implications for talent management systems andprocesses, and outlines an approach to Leadership first step in formulating the Leadership Strategy is to review the business Strategy forimplications for new Leadership analysis usually requires a team of experts com-posed of some people who know the business intimately and others who are familiar with processes for acquir-ing, retaining and Developing Leadership talent. Beginning with the business Strategy , the first step is to identifythe drivers of the Strategy . Drivers are the key choices that leaders make about how to position the organizationto take advantage of its strengths, weaknesses, opportunities and threats in the marketplace. They are the thingsthat make a Strategy unique to one organization as compared to another and dictate where tradeoffs will be madebetween alternative investments of resources, time and energy.

10 Drivers are few in number and help us understandwhat it is absolutely essential for leaders and the collective Leadership of the organization to reason why identifying key drivers is important in constructing the Leadership Strategy isbecause difficult choices will ultimately need to be made about where to invest money in lead-ers and their development. Particularly as budgets for Leadership headcount and development tighten, itis more critical than ever to demonstrate a clear line of sight between investments in Leadership and desiredorganizational outcomes, such as growth, profitability, talent retention and other metrics that are of key impor-tance to top-level decision makers who control Leadership development the Leadership StrategyKey drivers of the business are:The relatively few ( , 3-5) determinants of sustainable competitive advantage for a particularorganization in a particular known as key success factors, key value propositions, critical success factors, and future-oriented.