The Leadership Challenge: New Forms and Thinking in Leadership Development Nicholas Clarke University of Southampton Business School 1 Differences Between the Leadership we Have and the Leadership we Need 2 Three Major Challenges Capacity Context Crisis Capacity 3 1997 US Fortune 500 survey: 85% of organizations lacked quality and quantity of leadership talent. ASTD (2012) Bridging the Skills Gap Dept BIS (2012) 75% of organisations in England reported a deficit of leadership skills PwC (2014) Report HR Directors in Ireland – Shortage of Management Talent Context 4 Crisis 5 What are we currently Doing? 6 Leadership Development Literature Leadership Development Practice Differences Between the Leadership we Have and the Leadership we Need 7 (1) Significant limitations with the literature on Leadership Development “Leader Development Experience” ASSESSMENTS INDIVIDUAL FEEDBACK GROUP FEEDBACK DEVELOPMENT AND ONGOING PERFORMANCE MANAGEMENT Performance Management: Aligning and developing leader competencies and skills to enhance overall capabilities in achieving individual and organizational goals. What’s wrong with the traditional model? 9 Argument: Much of the writing on Leadership Development is largely unitarist and universalist Yet 1. The notion of Leadership is contested and operates at different levels 2. Leadership is culturally informed 3. Resource-Based View of the Firm 4. Heroic leader idea of leadership Differences Between the Leadership we Have and the Leadership we Need 10 (2) What about Leadership Development Practice Clarke & Higgs (in press Human Resource Management US) 11 How does the pattern of formal leadership training and development differ across organisations? What factors account for the pattern of formal leadership training and development practices that can be found? Multi-level perspective Large organisations (>5000 employees) Significant budgets (>250K) 10 organisations (1) The Police service, (2) Health service, (3) Local government, (4) Higher education; (5) Risk management, (6) Telecommunications; (7) The Third Sector (8) The Anglican Ministry; (9) Cultural Industries and (10) Social Care. The Strategic12Context: 3 cases Leadership Academy Risk management Although initially establishing itself as a dominant player in the marine industry, growth in other business sectors was forecast that would see a doubling of profit within four years to reach £1.5 billion. LTD was seen as a playing a chief role in driving through the new growth strategy. This needed a focus on the leadership skills needed to manage change and to improve performance of staff. Employing approximately 8,500 staff globally, the organization has examined all job grades to identify the leadership skills necessary for that level, and put staff through an assessment center to establish leadership skills and allocate training where skill deficits are identified. Telecommunications The company strategy is to drive broad-band based consumer services and be the network provider of choice. The European Union (EU) has a significant influence on the policy and regulatory environment with EU legislation affecting areas such as fibre access, spectrum, net neutrality, and Green ICT. The European Commission’s “Digital Agenda” initiative emphasizes ICT and telecoms as central to Europe’s economic growth and recovery. The LTD strategy is to equip leaders with the skills needed to implement projects, identify problems, and provide strategic solutions that align company and business unit goals. Health service The overarching strategic aim of the academy is to continuously improve the quality and safety of heath care in the United Kingdom. LTD delivery is directed toward working at every level of the health care system to develop the technical skills, leadership, capacity, knowledge and the will for change, that are seen as key to real and lasting improvement. The LTD strategy is chiefly concerned with enabling leadership to drive quality improvement and innovation. Risk Telecommunications Health Strategic Focus 1. Individual: Career Pathway 2. Organisational: Performance 1. Organizational: Performance/Transformation 2. Community: Social Gain and Customer Relationship 1. Sector: System Change 2. Community: Health Gain Major Products and Services 1. Training Programmes for (i) First line managers (ii) Middle managers (iii) Senior managers 2. Assessment Centres Training Programs for (a) Inspirational Leadership: First/Second line managers (b) Vital Vision: CEOs from across the public sector 1. Leadership Development through Quality Improvement in Health (OD) (18) 2. Training Programs 3. Fellowship Program 1. Specified 2. Specified and responsive 1. Combination of specified & emergent 2. Specified 3. Participant directed Training/Developm Specified & Responsive ent Content Behavioural Framework Yes No No Participation Criteria Mandatory 1. Mandatory 2. Voluntary/By invitation 1. Targeted and invited 2. Voluntary subject to interview and criteria What Values underpin Leadership Training and Development 1. Personal integrity 2. Credibility 3. Passion for new 1. Trust (integrity)* 2. Integrity (backbone)* 3. Authenticity (sensing) 1. People can change 2. Passion for quality 3. Discovery Leadership Transformational Transformational Complexity LTD DELIVERY STRATEGIC FOCUS OF LTD LEVELS OF IMPACT Behavioral Framework Criteria Learning Philosophy Individual Yes Specified Organizational Yes Specified/ Responsive Sectoral Yes/No Participation Mandator y LTD GOALS BUSINESS GOALS Mandator y/Volunta ry Specified/ Responsive LEADERSHIP PHILOSOPHY Voluntary /Targeted Community No Emergent Voluntary /Targeted A Contingency Model of Leadership Training & Development 14 Insights 15 There is some evidence that leadership development is contextual – but this is determined by level of impact: More nuanced ideas of adding value are less developed Leadership development in some organisations remains underpinned by a heroic leadership model. How leadership development can be used to address social responsibility issues remains as yet unexplored. What we need to do differently Leadership Development- A New Agenda What do we need to do differently: CIPD (2012) Next Generation HR 17 Balanced Between the Needs of Today and Tomorrow: Sustainability A more focused role on integrity and trustworthiness and social contribution How HR Keeps Organisations Agile and Adapting Business Driven and Unique to the Context: Drive Value Through Business Insight Shared Leadership Development 18 Internal Team Context 1. Learning/ Innovative Culture 2. Ambiguity and Complexity 3. Empowerment 4. Political context 5. Disruptive events Shared Leadership 1. Emergent groups working on adaptation 2. Self organised problem solving •Tteam cohesion •Information and knowledge exchange •Collaborative problem solving •Conflict Management 5.\team dynamics 6. Social support 7. Voice 1. Formal Leader Behaviours 2. Team Member Behaviours 3. Individual leadership schemas Team Intermediate Outcomes 1. Adaptive performance 2. Collective efficacy 3. Satisfaction 8. Communication patterns 9. Decision making processes 10. Team affective climate Individual Knowledge, Skills, Behaviours and Schemas What is Value for Leadership Development ? Best HR Practices help almost every business… Bottom 10% Top 10% No. of training hrs. for new employees 35 117 Percentage of employees receiving a performance appraisal 41% 95% No. of employees per HR professional 254 140 Percentage hired based on a validated selection test 4% 30% HR Practice From Huselid et al., 2000, AMJ Firm Brand: This organisation is known for Leadership Brand: Leaders here are known for: Walmart Always low prices Managing costs efficiently, getting things done on time FedEx Doing whatever it takes Managing logistics, Meeting deadlines, solving problems quickly Lexus Pursuing Perfection Managing quality processes for continuous improvement Procter & Gamble Brands you know and trust Developing consumer insights, product innovation McKinsey CEOs trusted adviser Leading teams that deconstruct business problems and develop solutions Boeing People working together for aerospace leadership Working as teams, possessing technical excellence Apple Innovation and Design Creating new products that break industry norms Bon Secours Health Good Help to those in need Business Skills with compassion and caring PepsiCo Appealing to the younger generation Building the next generation of talent 21 HR architecture as a strategic asset •Goal of corporate strategy: create sustained competitive advantage. •Goal of HR strategy: maximize the contribution of HR towards that same goal. HR FUNCTION HR professionals with strategic competencies (delivery of HR services in a way that supports the implementation of the firm’s strategy HR ARCHITECTURE HR SYSTEM High-performance, strategically aligned and integrated HR policies & practices EMPLOYEE BEHAVIORS Strategically focused competencies, motivations, and associated behaviors Level Summative Criteria Formative Criteria Example LTD Approaches INDIVIDUAL Leader 1. Leader Knowledge, Skills and Behaviors (Cognitive Skills, Business Skills, Strategic Skills, Social Skills Emotional Skills 2. Leader Self-Awareness 3. Leader Effectiveness 1. Leader characteristics (Developmental Readiness, Opportunities and Motivation to Lead, Motivation to Perform) 2. Transfer climate 3. Job Developmental Challenge (Working across boundaries, Unfamiliar responsibilities, High level responsibility Creating change, Managing diversity Access to feedback) 1.. 360 degree feedback 2. Action learning 3. Coaching 4. Mentoring 5. Job assignments and projects 6. Self-development activities 7. Leadership training 8. Questionnaires and Surveys INDIVIDUAL Follower 1. Follower Outcomes (Attitudes and Performance) 1. Follower Implicit Leadership Theories 1. Training for followers 2. Training for leaders and followers together. 3. Socialisation practices LEADER-FOLLOWER 1. Leader-Follower Bonding Social Capital 1. Leader-Follower Relationship Quality (Affect, Contribution, Loyalty, Respect) Same as for Individual Leader and Individual Follower above 23 Level Summative Criteria Formative Criteria Example LTD Approaches TEAM 1.Team Effectiveness (eg team climate, team dynamics) 2. Team Performance 3. Team Bonding Social Capital 1.Team Leadership Processes (Maintenance of team mental models, Monitoring the internal and external environment, Behavioral and performance expectations, Task-focused and Personfocused team behaviors). 2. Team Leader Behaviors (Relational leader behaviors, Citizenship behaviors, Social and Emotional behaviors) 1. Team training and development activities. 2. Team leader training and development 3. Transactive memory training 4. Team projects and assignments 5. Team building activities ORGANIZATIONAL 1. Organizational Performance and Effectiveness (Efficiency, Human Capital and Adaptation to environment) 2. Organizational Bridging Social Capital 1. Leadership Culture 2. Indices of Connectivity (eg network collaboration, trust and growth) 1. Same as for Individual Leader above 2. Organizational Visioning exercises. 3. Organization Development 4. Strategic planning exercises 5. Change Management projects 6. Leader planning meetings COMMUNITY 1. Community Social Capital 1. Integrative Leader Behaviors 2. Shared Leadership 3. Inter-organizational Learning Capability 1. Same as for Individual leader above. 2. Inter-organizational development activities (eg search conferences 24 Finally… 25 How Do You Differentiate Your Leadership and the HRD processes that support it?