The Critical Role of Behavior in Management Success 20 2DecisonDynamicsLC Predicting Success in Management Careers Presentation to the HEC School of Management Decision Dynamics © Decision Dynamics LLC An Important Observation “Research clearly shows that the vast majority of executives who fail in their job do so because of behavioral or cultural issues, not because of lack of skill or experience. It therefore seems odd that most of the emphasis in business education, succession planning and hiring still focuses almost exclusively on skills and experience.” 20 2DecisonDynamicsLC Warren Bennis Decision Dynamics © Decision Dynamics LLC Drivers of Management Success Aptitudes Knowledge Education Skills Experience Motivation X Behaviors Leadership Styles Thinking Styles Emotions = Success Values Motives Expectations 20 2DecisonDynamicsLC Situation Strategy Organization Culture/Value System Job Requirements Decision Dynamics © Decision Dynamics LLC What Styles Are and What Styles Aren’t It’s all about Situational Fit – no absolute “goods” or “bads” • Different from traditional IQ and Aptitude assessments • Habits of thinking and deciding Unrelated to general intelligence Formed through experience 20 2DecisonDynamicsLC • Experience with other people - culture • Direct experience with information and decisions Styles can and do change Effectiveness depends on the situation Decision Dynamics © Decision Dynamics LLC Key Dimensions of Decision Styles Information Use • Amount of information actually used in the process of making decisions and solving problems Solution Focus 20 2DecisonDynamicsLC • Zeroing-in on a limited number of clear-cut solutions or courses of action vs. identifying multiple solutions and/or alternate courses of action Decision Dynamics © Decision Dynamics LLC Korn/Ferry Behavioral Assessment Model Dimension I: Information Use High Maximizer Level of Understanding Satisficer Dimension II: Solution Focus Low 20 2DecisonDynamicsLC Low Amount of information Used High d a t a UNI FOCUSED STYLE d a t a MULTI FOCUSED STYLE Decision Dynamics © Decision Dynamics LLC Two Faces of Styles Leadership (Interpersonal) Style and Thinking (Task Performance) Style Leadership Styles • Styles used when people are watching themselves attempting to behave as they believe they should behave Thinking Styles 20 2DecisonDynamicsLC • Styles used when people are not watching themselves and not thinking about how they should behave -- when they are focusing on a task or situation or are absorbed in a problem Decision Dynamics © Decision Dynamics LLC KFI Decision Style Assessment Information Use Quality-oriented Data-driven Thorough Logical Serious Dominant 20 2DecisonDynamicsLC Intuitive Fast Changeable Adaptive Open Informal Outgoing Humorous Leadership Terse Clear Focused Directive High Intellectual/Complex Thinking Participative/Creative Thinking Leadership Leadership Quick Steady Productive Efficient Social/Flexible Thinking Leadership Multi-Focused Focus Uni-Focused Low/Mod Task/Action-Focused Thinking Exploratory Analytic Creative Patient Inquisitive Listening Team-oriented Decision Dynamics © Decision Dynamics LLC Emotional Competency Definitions Ambiguity Tolerance: The capacity to deal with uncertainty and unanticipated change Composure: The capacity to remain cool in the face of adversity or frustration Confidence: The willingness to take on challenges and risk Empathy: The ability to objectively perceive other’s strengths and weaknesses Energy: The capacity to handle demanding tasks without tiring or losing motivation Humility: The capacity to see or do things in different ways without imposing one’s preferred way 20 2DecisonDynamicsLC Decision Dynamics © Decision Dynamics LLC Decision Styles: Getting Down to the ROOTS of Behavioral Competencies Organizing Events Meeting Commitments Productivity Listening Articulating Responding Ideas Cooperating to Others Communicating Resolving Expectations Adapting Conflicts to Change Recognizing Trends Initiating Generating Ideas Relationships Creativity Planning 20 2DecisonDynamicsLC Delegating Behavioral Competencies Decision Style Roots Action Style Flexible/ Social Style Participative Style Complex Style Decision Dynamics © Decision Dynamics LLC Validation Research We randomly selected 110,000 managers/executives from our assessment database of over 500,000 individuals We divided sample into five management levels Supervisor Director Manager Vice President Executive – “C” Level We split each level into the most and least successful and compared the decision styles of both groups 20 2DecisonDynamicsLC Key findings • Behavioral competency scores were markedly different between the two groups and between management levels • Successful executives have markedly different leadership and thinking styles • Results offer insights that challenge traditional competency theory – namely, required behavioral competencies differ materially by level and role Decision Dynamics © Decision Dynamics LLC Leadership Styles by Management Level Most Successful Managers and Executives (N = 21,355) 1.5 Averaged Standardized Assessment Scores 1.0 0.5 0.0 20 2DecisonDynamicsLC -0.5 -1.0 -1.5 Supervisor Manager Task Director Social Intellectual Vice President Executive Participative Statistical probability that style differences between levels could have occurred by chance (ANOVA results): Decisive Operating Style = 0.00% Flexible Operating Style = 0.00% Hierarchic Operating Style = 0.00% Integrative Operating Style = 0.00% Decision Dynamics © Decision Dynamics LLC Thinking Styles by Management Level Most Successful Managers and Executives (N = 21,355) 0.4 0.3 Averaged Standardized Assessment Scores 0.2 0.1 0.0 -0.1 -0.2 20 2DecisonDynamicsLC -0.3 -0.4 -0.5 -0.6 Supervisor Manager Action Director Flexible Complex Vice President Executive Creative Statistical probability that style differences between levels could have occurred by chance (ANOVA results): Decisive Operating Style = doesn’t differ significantly between levels Flexible Operating Style = 0.0% Hierarchic Operating Style = 1.3% Integrative Operating Style = 3.4% Decision Dynamics © Decision Dynamics LLC Leadership Role Styles by Mgmt Level Contrasts: Top 20% vs. Total Sample vs. Bottom 20% Top 20% Average 2.00 2.00 1.50 1.50 1.00 1.00 0.50 0.50 0.00 0.00 -0.50 -0.50 -1.00 -1.00 -1.50 -1.50 -2.00 -2.00 Supervisor (n = 1,258) Manager (n = 7,358) DECISIVE Director (n = 6,061) FLEXIBLE Vice President (n = 4,622) HIERARCH n = 6,275 (Supervisor) Sr. Executive (n = 4,486) n = 36,680 (Manager) n = 30,102 (Director) DECISIVE INTEGRAT FLEXIBLE n = 23,057 (Vice President) HIERARCH n = 22,475 (Sr. Executive) INTEGRAT Bottom 20% 20 2DecisonDynamicsLC 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 Supervisor (n = 1,612) Manager (n = 7,102) DECISIVE Director (n = 5,987) FLEXIBLE Vice President (n = 4,614) HIERARCH Sr. Executive (n = 4,684) INTEGRAT Decision Dynamics © Decision Dynamics LLC Leadership Role Styles by Mgmt Level Contrasts: Top 20% vs. Total Sample vs. Bottom 20% Top 20% Average 0.80 0.60 0.60 0.40 0.40 0.20 0.20 0.00 0.00 -0.20 -0.20 -0.40 -0.40 -0.60 -0.60 Supervisor (n = 1,258) Manager (n = 7,358) DECISIVE Director (n = 6,061) FLEXIBLE Vice President (n = 4,622) HIERARCH Sr. Executive (n = 4,486) Supervisor (n = 6,275) INTEGRAT Manager (n = 36,680) Director (n = 30,102) DECISIVE Bottom 20% FLEXIBLE Vice President (n = 23,057) HIERARCH Sr. Executive (n = 22,475) INTEGRAT 20 2DecisonDynamicsLC 1.00 0.80 0.60 0.40 0.20 0.00 -0.20 -0.40 -0.60 -0.80 Supervisor (n = 1,612) Manager (n = 7,102) DECISIVE Director (n = 5,987) FLEXIBLE Vice President (n = 4,614) HIERARCH Sr. Executive (n = 4,684) INTEGRAT Decision Dynamics © Decision Dynamics LLC A Multi-Cultural Perspective – Leadership Styles North America – Leadership Styles by Mgmt Level 0 .5 0 0 .4 0 0 .4 0 Australia,New Zealand – Leadership Styles by Mgmt Level 0 .3 0 0 .3 0 0 .2 0 0 .2 0 0 .1 0 0 .1 0 0 .0 0 0 .0 0 -0 .1 0 -0 .1 0 -0 .2 0 -0 .2 0 -0 .3 0 -0 .3 0 -0 .4 0 -0 .4 0 E n try M id d le S e n io r E n try M id d le Managem ent Lev el T a sk (D e c i si v e ) S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) S e n io r Managem ent Lev el P a r ti c i p a ti v e (I n te g r a ti v e ) T a sk (D e c i si v e ) 20 2DecisonDynamicsLC Latin America – Leadership Styles by Mgmt Level S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) P a r ti c i p a ti v e (I n te g r a ti v e ) UK, Northern & Western Europe - Leadership Styles by Mgmt Level 0 .1 5 0 .3 0 0 .1 0 0 .2 0 0 .0 5 0 .1 0 0 .0 0 - 0 .0 5 0 .0 0 - 0 .1 0 -0 .1 0 - 0 .1 5 -0 .2 0 - 0 .2 0 - 0 .2 5 -0 .3 0 E n try M id d le S e n io r E n try M idd le Managem ent Lev el T a sk (D e c i si v e ) S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) Se nio r Managem ent Lev el P a r ti c i p a ti v e (I n te g r a ti v e ) T a sk (D e ci si v e ) S o c i a l (F l e x i b l e I n te l l e ctu a l (H i e ra rc h i c ) P a r ti ci p a ti v e (I n te g ra ti v e ) Decision Dynamics © Decision Dynamics LLC A Multicultural Perspective – Thinking Styles North America – Leadership Styles by Mgmt Level Australia,New Zealand – Leadership Styles by Mgmt Level 0 .1 5 0 .1 5 0 .1 0 0 .1 0 0 .0 5 0 .0 5 0 .0 0 0 .0 0 -0 .0 5 -0 .0 5 -0 .1 0 -0 .1 0 -0 .1 5 E n try M id d le S e n io r E n try Managem ent Lev el A c ti o n -F o c u s (D e c i si v e ) F le x ib le C o m p l e x (H i e r a r c h i c ) M id d le S e n io r Managem ent Lev el C r e a ti v e (I n te g r a ti v e ) A c ti o n -F o c u s (D e c i si v e ) F le x ib le C o m p l e x (H i e r a r c h i c ) C r e a ti v e (I n te g r a ti v e ) 20 2DecisonDynamicsLC Latin America – Leadership Styles by Mgmt Level 0 .2 0 UK, Northern & Western Europe - Leadership Styles by Mgmt Level 0.10 0 .1 5 0.08 0 .1 0 0.05 0 .0 5 0.03 0 .0 0 0.00 -0 .0 5 -0.03 -0 .1 0 -0.05 -0 .1 5 -0.08 -0 .2 0 E n try M id d le S e n io r A c ti o n -F o c u s (D e c i si v e ) F le x ib le C o m p l e x (H i e r a r c h i c ) -0.10 Entry Managem ent Lev el Middle Senior Management Level l C r e a ti v e (I n te g r a ti v e ) Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative) Decision Dynamics © Decision Dynamics LLC Matching Values to Organizational Culture The Basis of Cultural Fit 20 2DecisonDynamicsLC Decision Dynamics © Decision Dynamics LLC Four Different Career Patterns and their Motives Expert Life-long focus on one specialty Competitive Fast progression up the ladder Expertise Power & Influence Stability & Security Achievement Many other motives 20 2DecisonDynamicsLC Learning Lateral movement thru different but related occupations Entrepreneurial Frequent moves between very different kinds of work Personal Growth Creativity Novelty Independence People Involvement Decision Dynamics © Decision Dynamics LLC Career Concepts & Corporate Cultures Competitive Strategy Structure Valued Performance Factors Rewards Expert Learning Entrepreneur Growth Market share Maintain share Increase quality Diversification based on core technology Immediate targets of opportunity Tall pyramid Narrow span of control Flat & functional Broad span of control Matrix structure Open systems High involvement "Ad Hocracy" Temporary teams Cost reduction Leadership skills Logistics mgmt skills Accuracy Reliability Technical expertise Creativity Skill diversity Team skills Speed Adaptability Recognizing opportunities Promotion Mgmt incentives Mgmt training Fringe benefits Tech training Recognition awards Budget authority Lateral assignments Job rotation Education Creative latitude Cash bonuses Special assignments Job rotation Independence 20 2DecisonDynamicsLC Decision Dynamics © Decision Dynamics LLC Leadership Style Comparison Sales and Marketing Executive 7 6 5.82 5.03 5 4.18 4 Sr. Marketing Executive 20 2DecisonDynamicsLC Sr. Sales Executive 3.87 3.59 3.46 3.39 3 2.35 2 1 Task Focused Social Intellectual Participative Decision Dynamics © Decision Dynamics LLC Thinking Style Comparison Sales and Marketing Executive 7 6 5.75 5.44 5.24 5 4.18 4 4.06 Sr. Marketing Executive 20 2DecisonDynamicsLC 3.91 Sr. Sales Executive 3 2.87 2.04 2 1 Action Flexible Complex Creative Decision Dynamics © Decision Dynamics LLC Emotional Profile Comparison Sales and Marketing Executive 7 6 5.56 5.52 5.46 5 4.57 4.40 4.41 4.34 4.49 4.43 4.17 4.13 Sr. Marketing Executive 4 Sr. Sales Executive 20 2DecisonDynamicsLC 3.84 3 2 1 Ambiguity Tolerance Composure Empathy Mental Stamina Humilty Confidence Decision Dynamics © Decision Dynamics LLC