VOLUME 2
BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT
WHITE PAPERS
FEATURED:
Charting a Course During
Uncertain Times
Focusing on Employee
Engagement: How to
Measure It and Improve It
Closing the Gaps in
Leadership Development
Developing Real Skills for
Virtual Teams
Rethinking Generation Gaps
in the Workplace: Focus on
Shared Values
How to Help Leaders Succeed:
A Guide to Successful
Executive Career Transitions
A message from the
President and Associate Dean of
Executive Development at
UNC Kenan-Flagler Business School
Hello once again from the University of North Carolina
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Harvard Business Review article, “The Power of Collective
of ideas@work, a journal designed specifically for
Ambition”. Another paper tackles measuring and improving
business leaders who are involved and interested in talent
employee engagement, offering examples and best practices
development issues.
from different organizations. A third paper examines the
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We created ideas@work in order to share the executive
the virtual team environment. Other topics in this edition
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and to highlight best practices from other organizations.
in your leadership development efforts.
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Thank you once again for your interest in UNC Executive
Professor, Doug Ready, and Emily Truelove. This paper
Development.
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Inside this issue
Charting a Course During Uncertain Times
page 4
Focusing on Employee Engagement: How to Measure It and Improve It
page 16
Closing the Gaps in Leadership Development
page 28
Developing Real Skills For Virtual Teams
page 38
CLASS OF
‘72 ’92
‘02 ’22
Rethinking Generation Gaps in the Workplace: Focus on Shared Values
page 48
How to Help Leaders Succeed: A Guide to Successful Executive Career Transitions
page 56
(Note: The information or conclusions expressed in the following white papers are the authors’ review of findings expressed by the
organizations. All brand representations are registered trademarks owned by the respective companies or organizations.)
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Charting a Course During
Uncertain Times
Douglas A. Ready
Professor of the Practice of Leadership – UNC’s Kenan-Flagler Business School
Founder – International Consortium for Executive Development Research
Emily A. Truelove
Director of New Program Development –
International Consortium for Executive Development Research
This paper is adapted from a December 2011 Harvard Business Review article that
Doug Ready and Emily Truelove wrote, entitled “The Power of Collective Ambition”.
Introduction
A luxury hotel chain emerges from the industry’s
We discovered that these organizations (and all truly
worst time in its history stronger than ever. A financial
great organizations) share a common thread: a well-
institution thrives while its peers receive government
honed collective ambition, a story that depicts their
bailouts, suffer debilitating reputational blows, or cease
purpose, vision and plans on how to achieve their goals.
to exist. A beauty retailer on the brink of extinction a
Companies with strong collective ambitions have a deep
decade ago is now highly profitable and opening an
understanding of why they exist and what they hope to
average of two new stores a week.
accomplish. They have developed a path forward that
involves working as a team to address their challenges.
In many ways, these global companies could not be
They align their brand promise with their core values and
more dissimilar. They are in different industries and life-
use them as guideposts to execute their strategy.
cycle stages, yet they share a common trait: they defy
the conventional logic that during a recession, morale
Companies with strong, well defined collective ambitions
and profits plummet.
have leaders who realize that a business is more than a
group of people chasing a financial target. These leaders
We’ve spent the past two years studying these
are also highly disciplined when it comes to achieving
organizations and dozens of others to understand what
and sustaining top performance. They collaborate with
makes them different. What allows them to flourish
others in their organizations to shape their collective
in times when most organizations flounder? How did
ambition and to energize their employees. Finally, they
they use a crisis as an opportunity to transform their
embrace the challenge of managing a powerful duality:
business models, to redirect their strategies and to build
that of balancing collaborative engagement (what we
momentum during a downturn?
refer to as the glue) with commitment to disciplined
execution and accountability for results (what we call
the grease).
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As the companies examined in these pages will
demonstrate, developing and executing an organization’s
collective ambition requires involvement at all levels. HR
and talent management professionals play a powerful
The Seven Elements of a
Collective Ambition
role every step of the way, from helping to shape the
Scholars have studied what makes for engaged and
collective ambition to executing it. An organization’s
sustainably profitable organizations for decades. Collins
collective ambition can only be successful if there are
and Porras wrote eloquently about the importance of
the right people, in the right places and with the right
linking strategy with vision. Schein championed the
knowledge, skills and abilities. Simply put, it takes
importance of culture and values to an organization’s
people to make the glue and to facilitate the grease.
success. Many others have written about brands,
strategic intent and leader behaviors. Hence, the
Promise
This white paper:
• Discusses the seven elements of collective ambition
and why they matter.
• Explains why one of these elements may matter
concept of collective ambition—which touches on all of
these elements of organizational success—is not new.
Instead, it provides a framework
that will help pave the way for
successful, organizationwide change
initiatives.
more than the others.
• Shows how top organizations collaborate
to bring these elements together, enabling
employees at all levels (and senior leaders
in particular) to work together to provide
the glue and the grease to get them
where they want to go.
• Profiles several companies who have
done an outstanding job of
integrating these pieces into
a powerful whole.
• Outlines the HR practices
required at every level
to ensure success.
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There are seven elements that comprise an organization’s collective ambition:
1.Purpose:
The organization’s reason for being; why it exists; its core mission.
2.Vision:
The position or status an organization aspires to achieve in a reasonable time frame.
3.Targets and milestones:
The metrics used to assess the extent to which the organization has progressed toward
its vision.
4.Strategic and operational priorities:
The actions an organization will take (and not take) in pursuit of its vision.
5.Brand promise:
The commitments an organization makes to its stakeholders (customers, communities,
investors, employees, regulators and partners) concerning the experience it will provide.
6.Core values:
The guiding principles that dictate what an organization stands for in good and
bad times.
7.Leader behaviors:
How leaders will act, day-by-day and in the long term, to implement vision and
strategy as they strive to fulfill their brand promise and live up to their values.
HR and talent management professionals (indeed, many
story of their organization’s future, combine it with a
business leaders) often tend to get excited about these
collaborative process to build the human capabilities
elements without taking the time to place them in a
required to achieve that future, and have the discipline
broader context, causing them to behave more like
to follow that course in what is often choppy and
initiative champions than integrative thinkers. It is not
perilous waters.
uncommon to see business leaders who try to drive
change based on a vision that isn’t fully anchored in
It is important to be clear about what these terms mean,
reality or who attempt to enlist their entire workforce
and how they can be used to reinforce one another
in a values project without carefully investigating how
and execute an organization’s collective ambition.
these values interact with the organization’s brand
The terms vision and strategy, or values and leader
promise or strategic priorities.
behaviors are often used interchangeably, which leads
to confusion and causes them to become little more
Leaders attempting to drive change must take the
than meaningless jargon. These terms are not jargon,
time to examine the elements that should--indeed
however. If understood correctly, they can be used to
must--interact with one another if the changes are to
identify organizational capability gaps and to launch
have any chance to succeed. They must understand
initiatives that address those gaps.
the importance of shaping a powerful, compelling
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C H A R T I N G A C O U R S E D U R I N G U N C E R TA I N T I M E S
The Collective Ambition Compass
After years of working with organizations across the
an organization’s collective ambition and when they are
globe, we believe there are seven elements that really
focused, provide a compass that leads to success. We call
matter for organizational success. These elements define
it the collective ambition compass (CAC):
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ambition, HR’s role is clear. HR and talent management
The Glue and the Grease
professionals are involved by:
Shaping an organization’s collective ambition isn’t
•Working strategically with other senior leaders to
just about telling a compelling story that inspires
For any organization trying to harness its collective
frame the story that will become the organization’s
collective ambition.
employees. The process itself--of working together
to create the story--can be a powerful engagement
builder and as such, is an opportunity to build or
•Working with other senior leaders to build employee
strengthen an organization’s glue. It can also be a
engagement across organizational boundaries for
springboard to launch organization-wide change
the initiative.
initiatives and to execute strategy—the grease.
•Communicating to ensure the organization’s
To highlight the glue and the grease, two companies—
message is aligned with its purpose, vision and
Four Seasons Hospitality Group and Standard Chartered
strategy.
Bank—are examined. These companies differ in
•Participating in the development of metrics to
many respects yet are strikingly similar in their use
measure achievement.
of collaboration to realize their companies’ collective
•Ensuring that new and existing employees at all
levels have the knowledge, skills and abilities, and
cultural fit to achieve the new business model. This
involves not only talent sourcing and development,
but also leadership development and succession
ambitions. Standard Chartered Bank’s glue was its
recommitment to its founding principles which helped
it through a difficult period in its industry. Four Seasons’
grease was the use of its collective ambition to enable
transformational change.
planning.
•Ensuring that the organization’s compensation
and benefits systems are in keeping with
tomorrow’s business model.
•Developing a culture that fosters collaboration
and innovation.
Example: Standard Chartered Bank – Building the Glue
While many of their competitors went bankrupt, received government
bailouts or suffered irreparable harm to their brands during the recent
recession, Standard Chartered Bank (SCB) emerged stronger than ever.
There are several reasons for its success, but one of the most important
factors was that SCB used the crisis as an opportunity to recommit to the long-held
principles that made it great in the first place, strengthening the glue and binding together
its diverse and dispersed stakeholders during the recession.
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SCB has more than 85,000 employees comprised of 129
nationalities who work in 71 markets. Going into the recession,
the bank had a strong foundation, a compelling vision (“to be
the world’s best international bank, leading the way in Asia,
Africa and the Middle East”), and a robust, well-aligned collective
ambition. Despite this, most of the world—including many key
stakeholders—couldn’t articulate what made SCB unique among
financial institutions. It had always had “the glue,” but it needed
to strengthen it. SCB leaders believed the recession was the
perfect time to do this.
In 2009, Peter Sands, SCB’s CEO, created a taskforce of
senior leaders (including their chief human resource officer) that
traveled the world to speak with thousands of SCB stakeholders—
customers, employees, regulators, shareholders and the larger communities in which SCB
operates—to get their take on the organization’s vision and collective ambition. They heard a
similar theme among their diverse and geographically disbursed stakeholders; that SCB was
a positive force, an ethical partner, and a company in it for the long haul. As a result, “here
for good” became SCB’s new multi-layered brand tagline.
SCB didn’t just want a tagline with a nice ring—it wanted a promise. Senior leaders realized
that if they were to differentiate themselves from their competitors, they must deliver “here
for good” to every stakeholder in every part of the world. To ensure that the promise was
kept, they created a global accountability process.
The first step to deliver the promise was to engage all of their employees because they
would be the ones to deliver it on a daily basis. SCB held town hall meetings at all their
locations, a centerpiece of which was a two-minute “here for good” strategy video about
SCB’s positive impact on the world. The video inspired employees, who universally felt that
“here for good” perfectly captured the values already present in the company. “Here for
good” did not create the glue; it strengthened what was already there.
As one senior leader explained:
“’Here for good’ really does reflect who we are. Our local connections are very deep, in
part because we our long-term efforts to develop local talent and because we’ve been
in our markets so much longer than other multi-nationals. It is not uncommon for me
to meet customers who tell me how we gave their grandfathers loans 50 years ago and
have stood by their family businesses in good and bad times. They wouldn’t go to
another bank. When the Asian financial crisis hit, many banks pulled out of the region.
But we stayed and learned the lessons the West is learning now. Integrity matters. We
are not separated from our communities. We are an integral part of them.”
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“Here for good.”
SCB wanted to make sure that “here for good” was a promise not just to employees, but for
other its stakeholders (customers, clients, regulators, shareholders and the communities in
which they operate):
• C
ustomers: SCB promises that it will treat its customers as partners and offer them fair
deals. Whether lending to cocoa farmers in Ghana (SCB helps more than 70,000 farmers
in the cocoa industry in that country) or the big pharmaceutical companies in Europe,
SCB’s helps its customers build their businesses for the long term. SCB makes these
commitments loud and clear, for all to see in white papers published online.
• R
egulators: SCB does not undermine regulations or cut regulatory corners to make
a quick profit. SCB considers regulators partners in building thriving, healthy business
environments. In the UAE, for example, many international banks fail to meet the
country’s Emiritization quotas and instead choose to pay fines for not employing UAE
citizens. In contrast, SCB views these quotas as a key part in developing the local talent
the country needs for businesses to succeed. In Nigeria, because SCB’s policies adhere to
the highest ethical standards, the bank has found itself educating Nigerian regulators on
best practices. For SCB, these practices as nothing exceptional. Instead, they are a way to
conduct its business of building the human and economic capital of a region and paving
the way for a brighter future.
• S
hareholders: SCB promises to provide its shareholders with ethical and healthy returns
and to that end, has incorporated “here for good” into its core business processes. For
example, when SCB bankers complete loan applications for customers, they must write
a paragraph about why that the customer will be a valued long-term customer, or “here
for good”.
• Community: SCB’s community initiatives are a well-entrenched feature of the company’s
brand and culture. SCB is part of the fabric of the communities in which it operates, be
it building health centers for the blind in India or having employee “HIV champions”
regularly delivering HIV awareness workshops in 50 countries. SCB grants employees three
days a year of paid time off to volunteer and does not dictate how or where that volunteer
time is spent (a bank manager in London spends time at a stable for rescued horses). SCB
has found that community involvement is a powerful retention tool. As one manager
observed, “When you have helped build a community center with your SCB colleagues
and you walk by and see the lines outside, that’s energizing. It’s these intangibles that
make people stay.” In short, it’s the glue.
Many companies must plan and execute large-scale changes to shape and execute their
collective ambition. For SCB, the challenge was to remember and bolster—not abandon—
their roots.
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Example: Four Seasons – Building the Grease
It may be easy to see how collaboration can
be used to tell a compelling story of your
company’s future and be the glue that binds.
But how can this story provide the grease to
enable and drive productive change?
Travelers worldwide brighten at the mention of Four Seasons,
the hospitality group that literally set the standard for
exceptional service in luxurious settings. Founded in 1961 by the
iconic Isadore Sharp, the Four Seasons’ reputation is the envy of its
peers. The last few years, though, have been particularly tough for
the industry as a whole and the company in particular.
The recession wreaked havoc on the hospitality industry, especially at the high-end market,
Four Seasons’ primary focus. As vacationers cancelled trips and business travelers opted for
less expensive hotels, bookings plummet. At the same time, Sharp was ready to retire and
enjoy the next phase of his life. In 2010, Katie Taylor, Four Seasons’ chief operating officer,
took the CEO helm in the midst of the worst recession in 80 years.
In 2008, the Four Seasons found itself at a turning point. In preparation for her new role,
Taylor had an important task; to engage 35,000 employees in more than 80 hotels in 35
countries in a collaborative process that would get Four Seasons back on track and poised
to lead the industry once again.
For decades, the company’s unique service, culture, quality and brand (called “the pillars”)
had led to success. The question in 2008 was how to ensure they would continue to do so
in an ever-changing competitive landscape. The company had in place three key measures
for success—people, product, profits (called “the bold ambitions”). While the bold ambitions
had been the same throughout the company’s history, Taylor knew they had to be captured
anew and related to the change process in a way that was clear and compelling.
To that end, Taylor and her team overlaid the seven elements of Four Seasons’ collective
ambition onto such a graphic compass. As Taylor noted after completing the work. “We
found that compass was very useful tool because it helped us do two things. First, it allowed
us to think about the company and its success drivers in a different framework than we had
before. Second, it allowed us to organize all of these thoughts in a way that gave them an
actionable direction that was entirely consistent with our purpose and values, but with a
new point of view.”
Today, the company uses the compass as their framework for action.
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An actionable path forward was precisely what Four Seasons needed. It needed the
grease—a springboard to launch an enterprise-wide change initiative.
Taylor then formed a team of five vice presidents (including HR) from different parts of the
business. Over a six-month period they held more than 45 site visits in 14 countries and
conducted more than 400 interviews with Four Seasons guests, employees and stakeholders.
The team used their “bold ambitions” —product, people, and profit—to organize their
findings, which helped highlight how they were interrelated. They realized that to have the
best product (luxury hotels), the Four Seasons needed to attract and develop the best people
and create a culture that retained them. They knew that when they met their “people”
goals, their hotels would thrive and the profits would follow.
Taylor and the executive team also decided that each bold ambition would have five work
initiatives cascading from it. Working in small teams, senior leaders led the initiatives. Each
team’s focus was to make that piece of the puzzle align with Four Seasons’ purpose.
For example, in the “people” category, one team led an initiative called “who gets to be a
leader around here?” The goal was to transition Four Seasons from an informal promotion
system to a robust, systematic program that would promote people based on their potential
and performance. This was particularly important to Four Seasons because service is their
competitive advantage and it is vital to have the right people in the right roles and to ensure
that they are developed, rewarded and retained.
An important outcome of the initiatives is that they have made strategic and operational
priorities real, not just theory. As Four Seasons prepares for its next 50 years Taylor is
confident of its success:
“We have 34,000 employees who get up every morning thinking about how to serve our
guests even better than the day before. Our promise to provide the most exceptional
guest experience wherever and whenever you visit us is instilled in the hearts and minds
of our dedicated employees. They are the ones who fulfill that promise day in and day
out, in good times and in bad. Our guests are a central focus of this company, and our
commitment to our employees to get them the tools they need to get that job done will
remain a focus as well. The combination of strong global leaders and dedicated and
caring employees is going to be the recipe for our success going forward.”
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The Four Seasons’ Collective Ambition Compass
Copyright © 2010 Doug Ready. All rights reserved.
Copyright © 2010 Doug Ready. All rights reserved.
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Putting the Compass Together
At the heart of the collective ambition compass or any
example, to provide excellent entertainment or banking
figure used to create an organization’s story is purpose.
services–is just as meaningful as improving healthcare in
Purpose is the center around which vision, strategy,
emerging economies. It does not have to be about saving
brand, values and leader behaviors should be mapped.
the world. It just has to be an authentic representation
of why your organization exists. A purpose statement is
While many organizations want their purpose statements
the starting point to differentiate your organization and
to address a noble goal, simply having a purpose–for
to engage your stakeholders.
Example: Sephora – Constructing the Compass
Founded in France in 1969 by Dominique Mandonnaud, Sephora is one of the world’s leading
beauty retailers. Mandonnaud believed that shopping for cosmetics should be fun, and he
designed Sephora stores to be entertaining places where customers could test products
before purchase. The concept took off, and so did competitors’ adeptness in copying it. To try
to differentiate itself from its competitors, Sephora increased the number of brands it carried,
but it soon learned that carrying a wider range of cosmetic, fragrance and skin care brands
in addition to its own private label was not enough to stay ahead of the pack. It needed
something hard to copy.
Sephora is now part of LVMH, the world’s leading luxury products group. LVMH considered
selling Sephora in 2003 because of its troubles, but instead brought in a new CEO, Jacques
Levy, to turn the company around. Levy believed that saving Sephora was about creating a
sustainable competitive advantage.
As it turned out, the process of creating a sustainable competitive advantage became an
exercise in reinvigorating Sephora’s core purpose. After studying customer preferences, Levy
and his senior team realized that Sephora’s competitive advantage wasn’t in the store layout
or brands it carried. It was in something closer to what Mandonnaud sought to create: a truly
unique shopping experience. Thus emerged Sephora’s newly articulated purpose which was
a nod to the past and an acknowledgement of what sustaining success would mean in the
future: “To provide customers with the most entertaining shopping experience of the retail
industry—giving them a moment of relaxation and discovery, enabling them to experiment
and play with their beauty.”
With this purpose, Sephora spent the next few years shaping and implementing its collective
ambition. As a Sephora board member commented, “The market is moving so fast, but we’re
on the crest of the wave. And we’re there because of the energy that Levy gives us. It speaks
to the power of purpose. If you are a company that only wants to achieve targets, then you
reach those targets and stop. But if you have a purpose like ours, you’re always working to
satisfy it more fully. You’re always on the move.” Today, Sephora has 17,000 employees in
1,600 shops spread across 22 countries—and it is opening roughly two stores each week.
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Purpose may be the spring from which the other elements flow, but it is not the only thing
that matters in shaping and implementing an organization’s collective ambition. All seven
elements must be integrated into the powerful story that is your organization’s collective
ambition.
Sephora, for example, determined that if an entertaining shopping experience was its
purpose, then its strategy should be to deliver exceptional service. But not conventional
great service—service aligned with its core values of freedom, emotional connection,
excellence and boldness.
Purpose, strategy and values play a role in everything Sephora does. Consider training
at Sephora University. When employees learn about how to deliver exceptional service,
they are encouraged to use their own means to get to the desired ends. For example, in
a booklet that explains Sephora’s management style to employees, each principle is listed
with examples of how other employees have successfully achieved each principle and
then there is a space where trainees can list how they will do it.
Conclusion
The companies showcased in this article continue to
Finally, they used the process itself as a springboard to
succeed despite the economic environment because
initiate change and execute strategy.
they have harnessed the power of collective ambition
to chart a course during these uncertain times. The
Harnessing the power of collective ambition isn’t easy,
successes experienced at companies like SCB, Four
but then again, the path to excellence is never easy.
Seasons and Sephora could not happen without a
There is no GPS button that will take an organization
clearly defined purpose and genuine commitment at
effortlessly to the Promised Land, or an external guru
the senior executive level. As demonstrated throughout
who can show the way in an hour’s speech. The good
this paper, an organization’s purpose is the center of
news is that it can be done if the organization pulls
its collective ambition. Purpose matters for business
together to work for it. This requires the commitment
enterprises. Purpose drives and informs employee
of HR and talent management professionals to ensure
engagement, leadership development initiatives and
that the organization has the right people with the
branding. It breeds trust, speeds decision-making and
right skills and cultural fit to execute an organization’s
is the heard of compelling change initiatives. These
collective ambition. HR leaders must also work to
companies embraced collaboration to shape their
prepare employees at all levels so that they are ready for
collective ambition and to energize their employees.
the changes to come.
15
Focusing on Employee
Engagement:
How to Measure It and
Improve It
Pat Cataldo
Managing Director
UNC Executive Development
Introduction
For the past few years now, workers lucky enough to
have a job hunkered down to ride out the economic
storm. They did more with less and often had to
accept salary freezes, time off without pay, or cutbacks
in hours in exchange for continued employment.
Uncertain about how long the recession would last
and not willing to be a victim of “last one in, first one
out,” they also stopped looking for that next great job
at a competitor down the street. As a result, employee
retention rates soared and not surprisingly, employee
engagement suffered.
According to a 2010 Hewitt survey of companies from
around the world, half of the organizations responding
said they had experienced significant drops in employee
engagement, the largest decline Hewitt has seen in
more than 15 years of researching the metric.
Filmmaker, comedian and well-known neurotic Woody
Allen once said: “Eighty percent of success is showing
up.” This may have been true thirty years ago, but
today, it no longer applies. In our internationally
competitive business environment, employers need
dedicated employees fully committed to the success
of their organizations.
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87
% of C-Suite executives
recognize that disengaged
employees is one of the biggest
threats to their business.
Source: Re-engaging With Engagement, The Economist, 2011.
Promise
This white paper:
• Outlines the characteristics of engaged employees
• Identifies the traits that engaged, disengaged and
actively disengaged employees demonstrate
• Explores the costs of poor employee engagement to
organizations
• Provides suggestions to human resource and talent
management professionals on how to gauge
employee engagement in their organizations
• Offers employee engagement trends and steps to
improve employee engagement that HR and talent
management professionals can take
To subscribe, visit www.uncexec.com
EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT
Characteristics of Engaged Employees
Researchers for the Institute for Employment Studies
(IES) recently asked about the characteristics common to
engaged employees as they embarked on the study,
The Drivers of Employee Engagement. They found that
there was general agreement among HR professionals
about engaged workers.
Engaged workers:
A key finding of the IES study was that engagement was
a two-way street. For employee engagement to succeed,
organizations must work to engage employees; in turn,
employees have a choice about the level of engagement
they offer employers.
• Are respectful and helpful to colleagues
• Believe in their organization
• Desire to work to make things better
• Understand the business context and the “bigger
picture”
• Are willing to go “the extra mile”
• Keep up to date with developments in their field
17
Example: Fortune and Employer Engagement
Fortune publishes an annual ranking of the Top 100 Best Companies to Work
For, and while being on this list does not guarantee employee engagement,
it’s a very good indicator of worker satisfaction. Employee engagement can
be described as a sense of personal investment where employees want to do whatever they
can for the success of the organization. The companies on the Best Companies to Work
For list have demonstrated that they are equally invested in their employees, and they do
what they can to help their employees succeed. These companies have found that employer
engagement can have a positive impact on employee engagement, and when both the
employer and employee are engaged, the organization benefits.
Fortune partners with the Great Place to Work Institute to identify the Top 100 Best
Companies to Work For. Two-thirds of a company’s score is based on the results of the
Institute’s Trust Index survey, which asks questions related to their attitudes about the
management’s credibility, job satisfaction, and camaraderie. The remaining third of the score
is based on the company’s responses to the Institute’s Culture Audit, which includes detailed
questions about pay and benefit programs and a series of open-ended questions about
hiring, communication, and diversity.
Software firm SAS has ranked at the top of Fortune’s list in 2010 and 2011, and has made
the list for the past 14 years. SAS believes that focusing on people and relationships leads
to more productive, satisfied and dedicated employees. Their focus on building these
relationships has driven them to offer their employees a wide range of perks and benefits
at their headquarters in North Carolina, including on-site healthcare, childcare, car cleaning,
a beauty salon, and a state-of-the-art, 66,000-square-foot gymnasium.
Fortune’s 2011 Best Companies to Work For® - The Top 10
1. SAS
2. Boston Consulting Group
3. Wegmans Food Markets
4. Google
5. NetApp
6. Zappos.com
7. Camden Property Trust
8. Nugget Market
9. REI
10. Dreamworks
Source: 100 Best Companies To Work For, CNN Money, 2011. Engagement Levels:
The Engaged, Disengaged and Actively Disengaged
If your CEO asked you today what percentage of your
workforce was actively engaged, would you be able to
give a fair ballpark figure?
18
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
If your workforce is typical, about one-third of your
employees are actively engaged, according to a recent
Gallup poll. The poll found that nearly half, or 49 percent,
are disengaged while 18 percent are actively disengaged.
To subscribe, visit www.uncexec.com
EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT
A study by consulting firm Towers-Watson revealed an
even bleaker situation. Their research concluded that
only about 15 percent of employees were fully (actively)
engaged; 65-70 percent of employees were moderately
engaged, while 15 percent were totally disengaged.
As the economy recovers, employees at all levels will
emerge from where they were and may begin to look for
new opportunities. The biggest concern will be the
potential loss of an organization’s most valued talent, so
if improving employee engagement has not been on your
organization’s radar screen, it should be.
Actively Engaged Workers ....................................................................................................................................................
The Gallup organization provides a detailed profile of
an engaged worker based on its G12 employee
engagement survey. Engaged workers demonstrate:
• Consistently high levels of performance
• Natural innovation and a drive for efficiency
• Intentional building of supportive efficiency
• Clear understanding about the desired outcomes
for their roles
• Emotional commitment to what they do
• High energy enthusiasm
• Commitment to their organization, work group and job
Engaged workers are the ones you look forward to
seeing on Monday morning because their enthusiasm is
catching. They have likely been identified as high-potential
employees and feature prominently in their organization’s
succession planning process.
Disengaged Workers ..................................................................................................................................................................
Disengaged workers, on the other hand, view their jobs
as an exchange of time for a paycheck. They arrive and
leave on time, take their breaks, never volunteer for extra
work or projects, and do little else in between beyond the
minimal effort. They show little passion or creativity for
their jobs and go through the motions.
Disengaged workers may have been actively engaged
workers at one time. Somewhere along the way, though,
they became disengaged because of a lack of career
growth or promotion, a perception of salary inequity,
job dislike, or distrust in their direct manager and senior
management.
Actively Disengaged Workers ............................................................................................................................................
Actively disengaged workers are the most damaging
employees in the workplace. They are unhappy and let
that unhappiness show in words, attitudes and actions.
They undermine the performance of others by constantly
voicing their displeasure and listing the many reasons why
they are so miserable in their jobs. Kelly Services notes
that while these actively disengaged workers make up
only 15-18 percent of the employee population, their
negative attitudes have a disproportionate effect on the
performance of their co-workers and overall operational
performance.
While it is not impossible to re-engage actively disengaged
workers, it is much more challenging. Letting employees
know that senior leaders are aware of employee
engagement levels and are committed to taking positive
action to address it is a key step.
19
Measuring Employee Engagement
One reliable instrument to measure employee engagement is Gallup’s G12 feedback
system. Gallup has identified the factors that determine whether people are actively
engaged, disengaged, or actively disengaged. Their research (which consistently shows
a correlation between high survey scores and superior job performance) yielded a series
of 12 questions known as Gallup’s Q12.
The 12 questions are (rated on a scale from 1 to 5):
1. Do I know what is expected of me at work?
2. Do I have the materials and equipment that I need in order to do my work right?
3. At work, do I have the opportunity to do what I do best every day?
4. In the last seven days, have I received recognition or praise for doing good work?
5. Does my supervisor, or someone at work, seem to care about me as a person?
6. Is there someone at work who encourages my development?
7. At work, do my opinions seem to count?
8. Does the mission or purpose of my company make me feel that my job is important?
9. Are my coworkers committed to doing quality work?
10. Do I have a best friend at work?
11. In the past six months, has someone at work talked to me about my progress?
12. This past year, have I had opportunities at work to learn and grow?
Source: Gallup, n.d.
The Cost of Low Employee Engagement
L ow employee engagement has ramifications far
beyond immediate co-workers. According to the
Gallup organization, the cost for keeping actively
disengaged workers over a five-year period was
approximately $300 billion in lost productivity and
employee performance.
Research indicates that studies exist which show
that low employee engagement not only affects
performance, it increases employee turnover,
lowers customer service satisfaction and increases
absenteeism.
20
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
Other researchers have determined that the value
added by good (not even outstanding) performers
versus average performers was one-half of their
gross salary. In an article in the Headwinds Journal,
Joel Head points out that poor performers will cost
an organization about one-half of their gross salary;
the difference between a poor performer and a
good performer, then, is equal to one employee’s
annual salary.
To subscribe, visit www.uncexec.com
EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT
Potential Increase in Overall Engagement?
Intent to stay has steadily increased another 2.3 percent across the first quarter of 2011.
More importantly, discretionary effort took an upswing from its decline and increased by
over 8 percent.
The combination of employees exhibiting an increase in both discretionary effort and
intent to stay reflects a potential increase in overall employee engagement.
Quarterly Data of Intent to Stay vs. Discretionary Effort
Intent to Stay
Discretionary Effort
Percentage of
Employees
70%
60%
50%
40%
30%
Q1
‘09
Q2
‘09
Q3
‘09
Q4
‘09
Q1
‘10
Q2
‘10
Q3
‘10
Q4
‘10
Q1
‘11
Source: The Corporate Executive Board, Employee Engagement Trends Report: Q1 2011.
21
Get the Pulse on Employee Engagement Levels
How can HR and talent management professionals assess the level of employee engagement in
their organizations? Just ask.
For smaller workplaces, one-on-one meetings with employees may be the easiest, most effective
method to assess employee engagement. For medium and larger workplaces, one-on-one
meetings may be supplemented with town hall meetings, focus groups and surveys. In all cases,
it is important that employees are asked the same questions. This allows for better analysis of the
feedback, which leads to better, more targeted action steps.
Quantum Workplace, a leader in building science-based tools to measure and manage employee
engagement, loyalty and retention, has developed survey questions to assess employee
engagement.
This survey asks employees to rank on a scale of 1 to 10 their responses to these statements:
1. Management provides good leadership and guidance during difficult economic conditions.
2. My job is mentally stimulating.
3. I understand how my work contributes to my company’s performance.
4. There are future opportunities for growth at my company.
5. My company affords me the opportunity to develop my skills.
6. I receive recognition and reward for my contributions.
7. There is open, honest communication between employees and managers.
8. I see professional growth and career opportunities for myself in this organization.
9. I know how I fit into the organization’s future plans.
10. Considering the value I bring to the organization, I am paid fairly.
Gathering feedback should not end here. There is a strong
link between leadership and employee engagement. As
such, HR and talent management professionals should
attempt to gauge the engagement levels of CEOs and
senior leaders.
Becky Shambaugh, president and CEO of Shambaugh
Leadership, offers the following questions for CEOs and
senior leaders regarding employee engagement:
• How are you and the other C-Suite execs “showing
up”? How visible are you and your senior leaders to
your employees?
• Does it seem like your employees are tuning lately
to radio station “WIIFM”… What’s In It for Me? Do
employees understand why they are being asked to
22
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
do discretionary work above and beyond their
normal assignments? Do they understand how these
activities align with the organization’s goals? If not,
are managers and employees given an opportunity to
question the value of doing this discretionary work?
• Are you and senior leaders creating a corporate culture
built on shared values, trust and empowerment, valuing
diversity and team work? Or has the climate become
restrictive, un-collaborative and mistrusting? Are people
being perceived as commodities rather than assets?
• Are you taking a multi-cultural view of inclusiveness
and diversity where people feel valued for what they
bring to your company rather than feeling like they
have to conform and fit into an uncomfortable mold?
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EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT
• Are you giving employees examples where individuals
and teams have gone above and beyond the call of
duty to overcome a challenging business problem or
exceed a client’s expectations? Story telling is a critical
way for a manager to help employees relate to what
needs to be accomplished with real live examples.
• Are your managers helping employees sort through
tasks and priorities so the urgent doesn’t overwhelm
what’s important?
• Lastly, are you and your management team
proactively asking employees how to make things
better, improve customer relations and leverage
innovative ideas for competitive advantage?
Shambaugh suggests—and research confirms—
that if the answer to any of these questions is no,
then employee engagement is suffering. Employee
engagement starts at the top.
Four Steps for Improving Employee Engagement
There is nothing more damaging to employee morale
than asking employees for their thoughts and opinions
on an issue and then failing to take any action based
on their input. It is vital that employees understand that
steps are being taken to improve employee engagement
as a result of their responses.
Step 1: Know What Drives Employee
Engagement
Now that you have a pulse on your employees’
commitment to the organization, action is required.
Knowing what drives employee engagement will help
you plan those action steps. IES identified several
components of what drives employee engagement:
• Involvement in decision making
• The extent to which employees feel able to voice
their ideas, and managers listen to those views and
value employees’ contributions
• The opportunities employees have to develop
their jobs
• The extent to which the organization is concerned
for employees’ health and well-being
In all cases, two-way communication and management
play vital roles in keeping employees engaged.
23
Step 2: Get Senior Leader Buy-In
As the IES study revealed, senior leader buy-in
is critical for employee engagement initiatives to
succeed. Good leaders create a culture of engagement, keep employee trust, and help increase
productivity, employee satisfaction and retention.
If senior leaders do not understand the importance
of employee engagement, now is the time for HR
and talent management professionals to educate
them. Show them the direct correlation between
employee engagement and the organization’s
bottom line. Share with them the results of the
employee survey (or of the one-on-one meetings,
focus groups or town hall meetings) and the steps
needed to improve engagement.
Consider using customer satisfaction surveys to
corroborate the results of the employee survey.
Monica Nolan of PeopleMetrics notes that several
studies have shown a positive correlation between
customer satisfaction surveys and employee
engagement. If customer satisfaction is high, it is
likely that employee engagement is too. Conversely,
if customer satisfaction is low, so is employee
engagement. In either case, comparing the results
of customer satisfaction surveys with employee
engagement levels can make a stronger business
case to senior leaders of the need for their support.
Step 3: Communicate with Employees
One of the hallmarks of organizations with strong
employee engagement is communication. Let
employees know the steps you have taken to assess
employee engagement, the outcome of those steps,
and the plans moving forward to improve employee
engagement. Communication can take the form of
town hall meetings, articles in employee newsletters
and on employee intranets or e-mail. Always use the
communication methods you have found to be most
effective in your workplace.
24
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
“With high levels of engagement,
firms can see revenue growth 2.5
times that of their peers and a
40 percent reduction in expensive
staff turnover.”
Source: G
iving Everyone the Chance to Shine, HayGroup, 2010
Step 4: Act on the Results
Each organization will differ in what they need to do
to improve employee engagement. In some cases, for
example, feedback may reveal that employees don’t
understand the organization’s mission and vision. If this
is the case, a series of meetings or brown-bag lunches
can be arranged where the organization’s mission, vision
and strategic plan are discussed and a link made to each
employee’s role in the organization and how their work
contributes to the organization’s success. The important
point is that the action steps should be tailored to the
needs identified through employee feedback.
Action steps to improve employee engagement do
not need to be costly or time-consuming. A McKinsey
Quarterly survey revealed three effective non-cash
awards that improve employee engagement that can
work for small and large organizations:
• Praise from immediate supervisors
• Attention from leaders (e.g., one-on-one meetings or
attention from the top)
• Opportunity to lead projects or task forces
Kevin Sheridan, chief executive officer and chief
consultant for HR Solutions believes organizations will
increasingly use actively engaged employees as mentors
to help motivate and re-energize disengaged workers.
Other engagement trends predicted by Sheridan include
the use of social media to engage employees. For
example, using internal social networks to acknowledge
employees for jobs well done or to promote new
organizational and CSR (corporate social responsibility)
initiatives can be effective uses of social media.
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EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT
Example: Southwest Airlines and Employee Empowerment
Employee engagement can lead to better customer service. Southwest
Airlines is renowned for its outstanding customer service, the keys to which
are its recruitment and employee empowerment philosophies. According
to Kevin Freiberg in the book Nuts! Southwest Airlines’ Crazy Recipe
for Business and Personal Success, “Southwest looks for people with other-oriented,
outgoing personalities, individuals who become part of an extended family of people who
work hard and have fun at the same time.”
To empower their employees, according to Freiberg, Southwest dispensed with rigid work
rules and job descriptions so their employees could assume ownership to get the job done
and get their planes out on time, regardless of whose “official” responsibility it is. The
airline also gives employees the flexibility to “bend” company policy if they think it would
be in the best interest of its customer.
This flexibility allows Southwest employees the ability to go above and beyond to deliver
exceptional customer service—a challenge in any industry. “It can be tough and put you
into a bad mood real quick when you deal with a nasty and abusive person,” notes Libby
Sartain in a recent article for SHRM Online. Sartain is an HR management consultant and
former chief HR officer for Southwest Airlines and Yahoo. “It’s a matter of training and
empowering employees to do the right thing,” she said. “If you trust that employees will
do the right thing and handle situations as best they can, then that’s what will happen.”
Southwest tightly links the way it empowers its people and manages its operations on
the inside, and the way it positions itself to the customer and the marketplace on the
outside. Sridhar Balasubramanian, Professor and Associate Dean of UNC Kenan-Flagler’s
MBA program, notes that this linkage has helped the company to be true to its values,
and to execute on its customer promise flawlessly. “Southwest is a fun brand that
delivers focused value,” he said, “and the flight attendants and pilots who crack jokes
and entertain the passenger are not just putting on a show. They have been hired at
Southwest because that sense of humor comes naturally to them.”
25
Conclusion
As the economy continues to improve, organizations
with active employee engagement programs in place
will prosper. The time is now for HR and talent
management professionals to do more about helping
everyone achieve their maximum level of potential
and satisfaction. Assessing and improving employee
engagement to re-energize and re-engage workers can
be the first step in this retention process to ensure the
best and brightest continue to attain both personal
and professional success with the organization.
Organizations in which people feel
both motivated and “enabled”can
achieve revenue growth 4.5 times
that of peers.
Source: Giving Everyone the Chance to Shine, HayGroup, 2010
100 Best Companies To Work For.
Ellig, J. & Ellig, C. (May 31, 2011). Change
Kelly Services (n.d.). Disengaged Employees
Sheridan, K. (January 10, 2011).
CNN Money. Retrieved June 16, 2011 from
at the Top Can Shatter Employee Morale.
Costs the Company. Smart Manager. Retrieved
Top 2011 Employee Engagement Trends.
http://money.cnn.com/magazines/fortune/
Business Insider. Retrieved June 2, 2011 from
June 3, 2011 from http://www.kellyservices.
MonsterThinking. Retrieved June 2, 2011
bestcompanies/2011/index.html.
http://www.businessinsider.com/churn-at-the-
com/eprise/main/web/us/ hr_manager/articles_
from http://www.monsterthinking.com/2011/
top-can-topple-employee-morale-2011-5.
nov08_actively?printer=1.
01/10/employee-engagement/.
N., Dandy, R., Lane, S. & Deringer, E. (2010).
Everett, C. (May 13, 2011). Report Reveals
Leonard, B. (April 19, 2011). Study: Employee
Wiley, J. (July 13, 2010). The Impact
Employee Engagement and Customer
Engagement More Complicated than
Moods Impact Performance. SHRM Online.
of Effective Leadership on Employee
Satisfaction. Allied Academies International
We Thought. HR Zone. Retrieved June 2,
Retrieved June 16, 2011 from http://www.
Engagement. Employee Relations Today, 37,
Conference, New Orleans: LA.
2011 from http://www.hrzone.co.uk/topic/
shrm.org/hrdisciplines/ employeerelations/
2, 47-52.
managing-people/report-reveals-engagement-
articles/Pages/EmployeeMoods.aspx.
Bellon, J., Estevez-Cubilete, A., Rodriquez,
Bolchover, D. Re-engaging With Engagement.
more-complicated-we-thought/111498.
The Economist: Economist Intelligence Unit.
Wilson, C. (2010). The High Cost of Low
Nolan, M. (May 2009). Dream Jobs:
Engagement. Management Concepts, Inc.
Retrieved June 17, 2011 from http://haygroup.
Freiberg, K. (1998). Nuts: Southwest Airlines’
Companies with the best employee
com/EngagementMatters/Re-engaging-with-
Crazy Recipe for Business and Personal
engagement scores. PeopleMetrics. Retrieved
Woods, D. (May 20, 2011). Mine’s a latte with
engagement.pdf.
Success. Crown Publishing.
June 2, 2011 from http://blog.peoplemetrics.
extra employee engagement, says Caffé Nero
com/ dream-job-companies-with-the-best-
HRD. HR. Retrieved June 2, 2011 from http://
Gallup. www.gallup.com.
employee-engagement-scores/.
www.hrmagazine.co.uk/hro/news/ 1019501/
Daily Times. Retrieved June 2, 2011 from
Giving Everyone the Chance to Shine. (2010).
Ohannessia, K. (May 25, 2011). American
http://www.centredaily.com.
HayGroup. Retrieved June 17, 2011 from
Employees Are Staying Put. FastCompany.
Cataldo, P. (April 5, 2009). Thinking Ahead:
Why keeping staff engaged matters. Centre
mine-s-latte-extra-employee-engagementcaff-nero-hrd.
http://www.haygroup.com/Downloads/ww/
Retrieved June 2, 2011 from http://us.mg203.
CLC Human Resources (April 2011).
misc/Giving_everyone_the_chance_ to_shine_
mail.yahoo.com/neo/launch?.partner= sbc&.
Engagement Trends: Q1 2011. Corporate
whitepaper_singles.pdf.
rand=c7055etegiqu.m.
from http://cebengagement.com/wp-content/
Gruman, J. & Saks, A. (June 2011).
Robinson, D., Perryman, S., Hayday, D. (April,
uploads/2011/05/CLC-Quarterly-Employee-
Performance Management and Employee
2004). The Drivers of Employee Engagement.
Engagement-Trends-Q1-2011.pdf.
Engagement. Human Resource Management
Report 408. Institute for Employment Studies.
Wright Results. www.wrightresults.com.
Executive Board. Retrieved June 16, 2011
Review, 21, 2, 123-136.
Shambaugh, B. (September 16, 2010). Are
26
Head, J. (February 25, 2011). Beware the High
Your Employees Engaged? Shambaugh
Cost of Low Engagement. Headwinds Journal.
Leadership. Retrieved June 2, 2011 from
Retrieved June 2, 2011 from http://www.
http://www.shambaughleadership.com/blog/
headwindsjournal.com/?p=34.
comments/are_your_employees_engaged/.
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
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career,
next step in your career,
make a quick trip back to
the classroom first.
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E X E C U T I V E
D E V E L O P M E N T
I N S T I T U T E
At UNC’s Executive Development Institute,
you’ll gain the core knowledge of an MBA program
without the long-term time commitment. You’ll
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27
Closing the Gaps
in Leadership Development
Brigitta Theleman
Director, OneMBA Program
UNC Kenan-Flagler Business School
Introduction
The bottom line from leadership study after leadership
study: the better the leader, the better the organizational performance. According to a 2011 Development
Dimensions International (DDI) leadership forecast,
organizations identified in the study as the top third in
overall leadership quality out-performed organizations
in the bottom third in workforce retention, employee
engagement, organizational performance and the
passion to lead. “Passion to lead” was defined in
the study as “those in leadership positions who are
committed to and enjoy their roles as leaders for
the right reasons: helping see their company, teams
and each individual they manage succeed”. These
organizations also report increased customer satisfaction
and productivity.
HR and talent management professionals know the
value of strong leadership but continue to struggle to
create learning cultures in their organizations:
• A
ccording to the DDI report, 66 percent of leaders in
organizations that rate their overall leadership quality
as high are confident of their organization’s success.
Only 4 percent of leaders in organizations with low
leadership quality are confident of their organization’s
success.
28
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
• A
n American Management Association study found
that organizations with global leadership programs
in place are more likely to report higher market
Top Positions in Organizations
Held by Leaders, Not Managers
In a survey of 50 global companies,
research firm ISR found a direct
link between effective leadership
and financial performance. In
organizations whose employees
rated their leaders as “average”,
sales improved a little more than 6
percent in a year. In organizations
whose employees rated their leaders
as above average or higher, sales
rose more than 10 percent.
Source: Symonds, 2009
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CLOSING THE GAPS IN LEADERSHIP DEVELOPM E N T
performance. Only about two-fifths of respondents,
however, agreed or strongly agreed with the statement
that their “leadership development program is highly
effective.” That same study found that among
companies with 1,000 or more employees and some
degree of a multinational presence, approximately half
had implemented one or more leadership development
programs (Vickers, 2010).
• A report by Theresa Minton-Eversole, editor/manager
for SHRM Online, found that only 40 percent of
employers reported having a formal succession or
executive coaching program in place, and only 54
percent said they had a process in place to identify
high potential employees (Minton-Eversole, 2009).
Promise
This white paper examines the knowledge, skills and
abilities business leaders must have to ensure the
continued success of their organizations in today’s
competitive global marketplace. It will introduce HR
and talent management professionals to a four-step
process taught at UNC’s Kenan-Flagler Business
School to improve leadership skills and to create
a leadership culture within organizations.
Organizations in the top third in overall leadership out-performed those in the
bottom third in employee engagement and other related performance factors.
PERFORMANCE FACTOR
LEADERSHIP QUALITY
BOTTOM 1/3
Workforce Retention
Employee Engagement
Organizational Performance
(Financial performance, customer
satisfaction, service quality,
productivity)
Passion to Lead
TOP 1/3
24%
70%
9%
50%
13%
52%
7%
53%
Source: DDI Global Leadership Forecast, 2011.
29
Leadership Knowledge, Skills and Abilities
Needed Today
An increasing number of employers understand the
connection between leadership and organizational
success. During the recent recession when organizations
slashed training budgets, leadership development
programs were retained (Mattiolli, 2009). Employers
learned their lesson from previous lean times and knew
that if they were to emerge from the recession in good
shape, they needed to find, keep and foster good
leaders to effectively lead in difficult times.
But what skills do business leaders need for today’s
business environment? The DDI study tried to determine
whether the skill sets leaders need in today’s business
environment would be the same needed in the next few
years. They found that some of the key skills required
today, such as driving and managing change; coaching
and developing others; and executing organizational
strategy, would still be required. Two new skills were
identified as being increasingly vital in the near future:
identifying and developing future talent and fostering
creativity and innovation. These latter skills speak
directly to the increasing influence of HR and talent
management professionals in an organization. An IBM
study also noted that creativity and innovation were
critical leadership skills. Neuroscientist and founder of
the NeuroLeadership Institute David Rock would add
adaptability to that list (Fox, 2011).
Not all organizations will need all the leadership skills
DDI, IBM and others identified at the same time or
in the same proportion due to differing industry and
organizational needs. However, these skills are a good
start when looking at the present and future needs in
your own organization.
London-based competency consultant firm Worldwork
has identified 10 key leadership competencies that
help global business leaders become quickly effective
in unfamiliar cultural settings. Although these
competencies were determined with global business
leaders in mind, they can easily be applied to all business
leaders (Worldwork, n.d.):
What Makes a Good Leader? It May Be Neuroscience, Not Rocket Science
In a recent interview with HR
Magazine, David Rock, founder
of NeuroLeadership Institute in
Sydney Australia, reported
that neuroscience has
discovered that selfregulation—the ability
to regulate emotions,
thoughts and attention—
is essential to leadership. The
optimal leader, then, is adaptive.
The optimal leader, for example, knows
when to stick to their beliefs and when to
work collaboratively. They also know when
to look at the big picture and when
they need to get into the nitty-gritty.
This means, according to Rock,
that leaders have “tremendous
connections across all regions of
the brain.” This does not mean
that leadership is in the genes;
Rock believes that most leaders
learn the ability to adapt and selfregulate through experience.
Source: Fox, 2011
30
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CLOSING THE GAPS IN LEADERSHIP DEVELOPM E N T
1. O
penness (new thinking, welcoming strangers,
acceptance)
2. F lexibility (flexible behavior, flexible judgment,
learning new languages)
3. Personal autonomy (inner purpose, focus on goals)
4. Emotional strength (resilience, coping, spirit of
adventure)
5. P erceptiveness (attuned, reflected awareness)
6. L istening orientation (active listening)
7. T ransparency (clarity of communication, exposing
intentions)
A Framework for
Developing Leaders
Despite the hundreds of studies and books dedicated
to leadership development, a single formula has yet
to emerge that will ensure an organization’s success
in developing good leaders. Global consulting and
outsourcing firm Hewitt (now Aon Hewitt) found
no single best leadership practice in their survey of
top leadership qualities. Instead, they uncovered a
framework that top organizations have in place to
sustain their ability to build leadership talent:
8. C
ultural knowledge (information gathering,
valuing differences)
• CEO and board leadership support and inspiration
9. Influencing (rapport, range of styles, sensitivity
to context)
• The right leadership practices, done right
10. Synergy (creating new alternatives)
Talent development and HR professionals should
identify the knowledge, skills and abilities required for
leaders in their organization so that they can build a
framework that will support the development of these
competencies.
The Global Leaders of Tomorrow
Project
U.K.-based Ashridge Business School’s 2008
survey found that 76 percent of CEOs and
executives surveyed said it was important that
senior executives have the skills and knowledge
to respond to trends like climate change,
resource scarcity and doing business in emerging
markets. Less than eight percent felt these skills
were currently being developed very effectively
by their organizations.
Source: Gitsham. n.d.
• A maniacal focus on high potentials
Hewitt found that CEOs at organizations rated high
in leadership development were truly passionate about
developing leaders and felt it was their legacy to ensure
that there were strong leaders in place throughout the
organization after they left. Hewitt’s study also revealed
that the boards of companies with high leadership
development believed it was one of their primary
responsibilities to ensure there was sufficient leadership
strength to sustain their organizations for three to
five years.
Not surprisingly, organizations with strong leadership
development cultures (called Top Companies in the
Hewitt study) identify and keep a sharp eye on their
high potential employees. The Hewitt study found
that 95 percent of the Top Companies in leadership
development identify high potentials as compared with
77 percent of other companies. Top Companies track
turnover of high potentials 72 percent of the time,
versus 60 percent in other companies. In addition, the
Top Companies use internal training and developmental
assignments with high potential employees 90 and 89
percent of the time, respectively. In comparison, nontop companies use the same development activities
just 51 percent and 43 percent. Top Companies also
compensate high potential employees just for being
high potential 75 percent of the time, versus 38 percent
of the time for non-top companies.
31
Hewitt found that Top Companies develop the right
leadership practices for their organization and industry
and ensure accountability for their success 85 percent
of the time, versus 35 percent for non-top companies.
In addition, 85 percent of Top Company leaders are held
accountable for developing high potentials through
performance management systems versus 46 percent in
non-top companies, further demonstrating the leadership development culture developed in Top Companies.
Top-performing companies may focus on different
leadership skills to develop based on industry and
organizational needs, but share the three common
themes just described: top management and board-level
support for leadership development, an organizational
commitment to high potential employees, and
accountability for the success of their leadership
practices.
Talent management and HR professionals should assess
whether these three factors exist in their organizations
because they are vital to creating leadership learning
cultures that will ultimately make their organizations
stronger and more successful.
Closing the Gap with the Continuous Learning Cycle
You can spend a lifetime reading about leadership;
a quick Internet search will show that there are nearly
70,000 books on the subject available through
Amazon.com and more than two million research
articles. Thought leaders at UNC’s Kenan-Flagler
Business School have condensed the best of these
publications into an effective continuous learning
cycle that HR and talent management professionals
can incorporate into their organizations’ leadership
development programs to strengthen each individual’s
ability to learn and adapt as a leader. The continuous
learning cycle is an integrated approach that focuses
on the following four core components and produces
solid results in leadership development.
• Ethics (facing ethical dilemma and exhibiting integrity,
courage, compassion and honesty)
• Management communication (clearly expressing
authority, persuasion, motivation, transparency,
influence and inspiration)
This is by no means an inclusive list as the results of
studies by DDI, IBM and others can attest. Other areas
that could be identified for development may include
the ability to deal with ambiguity, working well with
others (teamwork), negotiating effectively, developing
self-awareness or developing open-mindedness (a
development area that is vital to a global leader’s success).
The Continuous Learning Cycle
32
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
PRIN
C
CK
C
BA
TI
Shaping
Leaders
CE
S
LE
IP
• Strategy (developing a business strategy and using
strategy to make informed business decisions)
ION
T
C
ED
• Leading and managing (decision-making, problemsolving, using power and authority)
FE
Principles are the knowledge, skills and abilities leaders
need to possess. The first step in an organization’s
leadership development plan begins with identifying
what knowledge, skills and abilities need to be further
developed in the organization. These can include such
areas as:
REF
LE
1. Principles
PR
A
TM
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CLOSING THE GAPS IN LEADERSHIP DEVELOPM E N T
Example: IBM’s Corporate Service Corps Development Program
In 2007, a team of 30 top
leaders at IBM set out to identify
the knowledge and skills that
IBM would require of its future
leaders. The team discovered that in the past,
it was sufficient for IBM leaders to know
about the business. In the future, however,
they would need to be aware of the wider
political landscape in the locations in which
they operate. They identified that future global
leaders at IBM would need:
• A
deep understanding of the business,
economic and political landscape of
emerging markets
• T he ability to form relationships with the social sector, local governments, non-governmental
organizations (NGOs), and other influencers
• Increased sensitivity toward different cultures and customs
• T he ability to work with and to lead multi-cultural teams
• A
wareness of core societal, educational and environmental challenges affecting the way the
organization does business in the 21st century
• A
commitment to understand and maintain the highest global integrity standards
To develop these needed skills, IBM’s corporate citizenship and HR teams created a six-month
“Service Corps” program that includes:
• T hree months of pre-work (through online and wiki-enabled learning platforms) to help
participants to become familiar with the language, culture, socioeconomic and political
climates of the destination countries to which they would be assigned
• O
ne month of living in the emerging market area, the focus of which is to learn the core
societal, educational and environmental challenges of working with local NGOs and/or
governments
• T wo months of post-service work that includes synthesizing the lessons learned and
participation in structured activities to share experiences with other participants and to
transfer knowledge (Gitsham, M., n.d.)
33
The “Three Cs” of Important Leadership Knowledge and Skills:
Context:
Complexity:
Connectedness:
The ability to identify social and
environmental trends and their
business implications and to
understand how to factor them
into strategic decision making.
The ability to lead in the face
of uncertainty, ambiguity and
disagreement.
The ability to understand the
actors in the wider political
landscape and to engage and
build effective relationships with
new kinds of external partners—
this can mean regulators,
competitors, NGOs or local
communities.
Source: Gitsham, n.d.
2. Practice
Identifying an area for development is not enough.
Leadership studies have repeatedly shown that the best
way to learn, particularly for adults, is through practical
experience such as on-the-job, project-based work and
action learning. Companies that excel at offering such
leadership development opportunities include Unilever,
IBM, Novo Nordisk, ABN Amro and BG Group. Examples
of hands-on action learning opportunities include
coaching others, leading a meeting, team building, or
even taking an expatriate assignment.
Example: Unilver’s Leadership Development Program
Unilever is a Dutch-based manufacturer of leading brands in food, home and
personal care. The company offers employees identified as high potentials a variety
of leadership programs, one of which was designed with Unilever’s emerging and
developing markets strategy in mind. Participants in this program are asked to develop
an emerging and developing market strategy that will position Unilever to quickly
acquire a strong share of the market as it develops. After participating in a residential workshop,
employees conduct field visits over a two-month period in “next practice” organizations in the
targeted emerging or developing market. “Next practice” organizations include NGOs, social
entrepreneurial and micro-finance organizations.
The learning from this experience is incorporated into a second residential workshop where
project teams develop business proposals and present them to Unilever executives. Successful
proposals are then taken forward and implemented (Gitsham, M., n.d.).
3. Feedback
The pioneer of leadership studies Warren Bennis
once said: “Make sure you have someone in your life
from whom you can get reflective feedback.” Honest
feedback is critical to a leader’s success, and as such,
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ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
organizations must foster cultures where leaders
can give and receive it. Feedback can come in many
forms--mentoring and coaching, performance reviews,
personality assessments, and monitoring reactions to
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CLOSING THE GAPS IN LEADERSHIP DEVELOPM E N T
written and verbal communications (e.g., combative,
supportive, tense, etc.). Feedback helps individuals
gather information about how others view their
strengths and development opportunities.
The process of giving and receiving feedback is a
leadership development opportunity in itself. If your
organization does not have coaching or mentoring, peer
feedback, active listening or 360-degree programs in
place, this is a good time to implement one or more.
4. Reflection
In this continuing learning cycle, reflection means taking
the time to put the principles, practice and feedback
into context. Did the leadership development experience
deliver the intended results? Why or why not?
Reflection may come in informal forms—such as
meeting peers to review a project outcome—or it may
be more formal and include professional development
plans, career coaching, executive coaching or even
reflective essays.
Ultimately, reflection may close one door and open
a dozen more—which leads back to the cycle of
principles, practice, feedback and reflection. As the
famous educator John Dewey concisely summarized:
“Experience plus reflection equals learning.”
Example: InterfaceFLOR’s 2020 Development Program
Atlanta-headquartered InterfaceFLOR designs, produces and sells modular
flooring systems. InterfaceFLOR has manufacturing plants on four continents
and offices in more than 100 countries. Its vision is to become the world’s first environmentally
restorative company by 2020. To meet that vision, the company developed its Fast Forward
2020 leadership development program, consisting of three different levels:
• L evel 1 is a short program to introduce key issues on sustainability and to introduce
employees to the company’s strategy and approach to achieve its mission. All InterfaceFLOR
employees must go through this program.
• E mployees who have completed the first level can apply to participate in Level 2 (about
half of all employees choose to move on to this level). Level 2 is a one-day program
and is customized by functional area—for example; there are customized programs for
marketing, sales and operations employees. The focus is on building knowledge about
sustainable development and what that means to the business. Participants are encouraged
to link sustainable development to their own functional areas in general and their roles in
particular. To pass this level, participants must take an exam and complete an assignment
that features developing a personal action plan to help achieve the company’s mission.
• L evel 3 is a two-day program in which about 10 percent of InterfaceFLOR employees are
chosen to participate. Participants at this level conduct research on future trends that will
affect the organization. Participants develop critical analysis skills and participate in debates
on difficult issues such as nuclear power, biofuels and the role of business in easing poverty.
Finally, all participants are required to participate in a mock television interview, where
external journalists pose challenging questions. This final step requires participants to reflect
on their research (Gitsham, M., n.d.).
35
Conclusion
John F. Kennedy once said that leadership and learning
are indispensable to each other. In today’s increasingly
complex business world, his words have never been more
fitting. Employers must ensure that their leaders have the
knowledge, skills and abilities that are crucial for their
organizations to succeed today and in the future. To meet
this challenge, HR and talent management professionals
must help create learning cultures that nurture the
development of strong leaders at all levels. Framing
leadership development as a continuous learning cycle
such as the one used at UNC’s Kenan-Flagler Business
School offers HR and talent management professionals
a model in which to create long-term leadership
development solutions.
Bliss, W. (December 14, 2010).
Eubanks, D., Antes, A., Friedrich, T.,
Koprowski, R. (May 27, 2004). The Six
Solansky, S. (August 2010).
Developing Organizational Leaders. SHRM
Caughron, J., Blackwell, L., Bedell-Avers, K.,
Principles for Developing Global Leaders.
The evaluation of two key leadership
Online. Retrieved July 6, 2011 from
& Mumford, M. (June 2010). Criticism and
AME Info. Retrieved July 4, 2011 from www.
development program compenents:
http://www.shrm.org.
outstanding leadership: An evaluation of
ameinfo.com/40293.html.
Leadership skills assessment and leadership
leader reactions and critical outcomes. The
Boatman, J. & Wellins, R.
Leadership Quarterly, 21, 3, 365-388.
21, 4, 675-681.
UNC Kenan-Flagler. Retrieved July 9, 2011
Global Leadership Forecast 2011.
DDI International.
mentoring. The Leadership Quarterly,
_____ (n.d.). Learning Leadership Principles.
Fox, A. (June 2011). Leading with the Brain.
from http://www.kenan-flagler.unc.edu/
Symonds, M. (June 19, 2009). B-School’s
HR Magazine, 52-53.
leadership/principles.cfm.
Big Challenge: Developing Leaders, Not Just
DDI Global Leadership Forecast Shows
Gitsham, M. (n.d.). Developing the Global
Mattioli, D. (February 9, 2009).
from http://www.forbes.com/2009/06/19/
Leadership Development Processes and
Leader of Tomorrow. Ashridge Business
Despite Cutbacks, Firms Invest in Developing
business-schools-innovation-leadership-
Practices Need to Change. Newswire Today.
School, Hertfordshire: U.K.
Leaders. The Wall Street Journal. Retrieved
careers-education.html.
DDI (June 13, 2011).
Managers. Forbes.com. Retrieved July 5, 2011
Retrieved July 4, 2011 from http://www.
newswiretoday.com/news/922229/.
July 5, 2011 from http://online.wsj.com/article/
Goodman, N. (June 6, 2011). Best Practices:
SB12339587424605897.html.
What Not to Do When Developing Global
_____ (n.d.). UNC Kenan-Flagler Leadership
Overview. Retrieved July 3, 2011 from http://
Effron, M., Greenslade, S. & Salob, M. (July 4,
Leaders. Training. Retrieved July 3, 2011 from
Minton-Eversole, T. (February 18, 2009).
www.kenan-flagler.unc.edu/Leadership/
2007). Growing Great Leaders: Does It Really
http://trainingmag.com.
Companies Doing Little to Close Leadership
leadership-initiative-overview.cfm.
Matter? Human Resource Planning, 28.3.
Gaps, Study Finds. SHRM Online. Retrieved
Hollenbeck, G. & McCall, M. (January 28,
July 6, 2011 from http://www.shrm.org/
Vickers, M. (August 5, 2010). Four Key
Ely, K., Boyce, L., Nelson, J., Zaccaro, S.,
2002). Developing Global Executives—How to
hrdisciplines/orgempdev/articles/.
Practices for Developing Global Leaders.
Hernez-Broome, G. & Whyman, W. (August
Train Leaders for a More Global Perspective.
2010). Evaluating leadership coaching:
Harvard Business School. Retrieved July 4,
Simmonds, D. & Tsu, O. (November 2010).
July 4, 2011 from http://www.amanet. org/
A review and integrated framework. The
2011 from http://hbswk.hbs.edu/archive/2732.
Effective design of a global leadership
training/articles/Four-Key-Practices-for-
Leadership Quarterly, 21, 4, 585-599.
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programme. Human Resource Development
Developing-Global-Leaders.aspx.
American Management Association. Retrieved
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_____ (n.d.). International Competencies.
World Work. Retrieved July 4, 2011 from
http://www.worldwork.biz/legacy/www/docs3/
competencies.html.
36
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MBA for EXECUTIVES
ONLINE MBA@UNC
At UNC Kenan-Flagler, your high-potential
employees can pursue one of the highestranked MBA degrees in the nation while on
the job. They’ll gain the skills to compete
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37
Developing Real Skills for
Virtual Teams
Meena Dorr
Director, Corporate Relations
MBA@UNC
Kip Kelly
Director, Marketing & Business Development
UNC Executive Development
Introduction
If estimates from the Telework Research Network are
correct, there’s a good chance that as you read this
paper, you are sitting in your home office, catching
up on some reading on your designated telework day.
According to the network, regular telecommuting grew
by 61 percent between 2005 and 2009, and based
on current trends, the organization estimates that the
number of telecommuting workers will grow to nearly
five million by 2016—a 69 percent increase (Lister &
Harnish, 2011).
With the growth of telework—increasingly called virtual
work—is the inevitable growth of virtual teams, groups
of people who are geographically dispersed but who
work together virtually through the use of technology
such as teleconferencing and videoconferencing, e-mails,
text messages and telephone. Today, you would be hard
pressed to find an organization that doesn’t have one or
more virtual workers and virtual teams.
And as Arvind Malhotra, associate professor of strategy
and entrepreneurship at UNC Kenan-Flagler Business
School, notes, virtual teams are here to stay. Malhorta
says organizations realized more than 15 years ago
38
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
that business travel takes away from productivity and
increases costs. The faltering economy was “the final
momentum builder,” according to Malhorta, firmly
entrenching virtual workers and virtual teams into most
corporate structures (UNC Kenan-Flagler, 2010).
Promise
Not surprisingly, participation in and management of
virtual teams comes with its own unique challenges
and opportunities. This white paper will explore virtual
teams, their benefits and challenges to organizations,
and will outline the three key steps that HR and talent
management professionals can follow to ensure that
virtual team members and leaders in their organizations
have the skills, competencies and tools needed to
succeed. These important steps are:
1. P articipate in the selection process of virtual team
members and leaders.
2. E nsure for the appropriate selection, training and use
of virtual team technologies.
3. Provide training for virtual team members.
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DEVELOPING REAL SKILLS FOR VIRTUAL TEAMS
The Rise and Staying Power of Virtual Teams
There are a variety of factors that led to the rise of
virtual teams, but increasingly sophisticated technology
made it possible, and globalization made it necessary.
Once virtual teams began, organizations noticed an
unanticipated bonus: virtual teams were, on average,
more productive. According to Chad Thompson, senior
consultant with Aon Hewitt, the productivity of effective
virtual teams tends to increase from 10 to 43 percent,
depending on the industry and the organization.
Thompson’s research also shows that in several cases,
the net increase in productivity was equal to or more
than the organizations’ savings on real estate costs.
Surveys repeatedly show that employers will continue
to host and even expand the number of virtual workers
and teams:
In addition to increased productivity, studies confirm
that virtual teams offer employers and employees
flexibility, reduce time-to-market, often offer better work
outcomes than conventional work teams, attract better
employees and increase knowledge sharing. Global
virtual teams allow organizations to garner talent from
all parts of the world, save money on travel, and allow
access to low-wage resources (Lockwood, 2010).
Virtual teams are not only attractive to employers,
they’re green too. According to the Telework Research
Network, the existing 2.9 million U.S. telecommuters
save 390 million gallons of gas and prevent the release
of 3.6 million tons of greenhouse gases annually (Lister
& Harnish, 2011).
• AON Consulting’s 2009 Benefits and Talent Survey
found that 97 percent of respondents said their
organizations either planned to increase
virtual work and telework options or
keep them at the same level (Leonard,
2011).
• A SHRM survey found that
22 percent of organizations
expect the number of their
employees who work
virtually to increase in the
next 12 months. Seventy-six
percent expect that it will
remain the same and only
3 percent expect it to
decrease (Lockwood, 2010).
• Forty-three percent of HR
professionals responding to
another SHRM poll predict that a
larger proportion of their workforce
will be telecommuting within the
next five years
(Lockwood, 2010).
39
Virtual Team Challenges
There are challenges, however, inherent in the virtual
team concept. It is difficult to build trust and to manage
conflict when team members lack the ability to interact
face-to-face. Communication is often more challenging,
particularly among global virtual teams, which can also
make it more difficult to overcome cultural barriers
(Ebrahim et al, 2009).
A recent report by RW3 LLC, a cultural training service,
found that 46 percent of employees who work on virtual
teams said they had never met their virtual team cohorts
and 30 percent said they only met them once a year.
The report, The Challenges of Working in Virtual Teams,
was based on a survey of nearly 30,000 employees from
multinational companies. The survey also found that:
• The top challenge for virtual team members was the
inability to read nonverbal cues (94%).
• There is an absence of collegiality among virtual team
members (85%).
• It is difficult to establish rapport and trust in virtual
teams (81%).
ost virtual team members (90%) said they don’t
• M
have enough time during virtual meetings to build
relationships.
• Managing conflict is more challenging on virtual
teams than on conventional teams (73%).
• Decision making is more difficult on virtual teams
than on conventional teams (69%).
• It is more challenging to express opinions on virtual
teams than on conventional teams (64%) (Hastings,
2010).
In addition to these interpersonal challenges, survey
respondents noted that different time zones are a
stumbling block for virtual teams (81%). Other hurdles
included language (64%), holidays, local laws and
customs (59%) and technology (43%).
Much of these challenges are exacerbated when
working with global virtual teams. According to
Karen Cvitkovich, managing director of global talent
development at Asperian Global, cultural issues
often inhibit team communications. She notes that
people in North America tend to be “low context”
communicators, and rely on words and signals
to interpret what a person means. Most of the
world’s populations, however, are “high context”
communicators, meaning that they rely on nonverbal
cues and focus more on the relationship, the setting,
and previous interactions to interpret what someone
means (Hastings, 2008).
As noted in the survey results, selecting and using the
appropriate technology for the task—and ensuring that
all members on a virtual team have access to the same
technology—can also be a stumbling block. E-mail and
the telephone may be widely available and appropriate
for relaying fact-based information, but they lack the
ability to convey the nonverbal cues so vital to building
trust and teamwork. As a result, selecting the wrong
technology may result in misunderstanding among
team members and ultimately harm interpersonal
communication, trust and productivity (Lockwood,
2010).
These challenges to virtual teams are not insurmountable.
HR and talent management professionals’ active involvement in the proper selection and training of virtual team
talent, the selection of the appropriate technologies
(and the training for use in those technologies) and the
encouragement of executive support for virtual teams
can turn these challenges into opportunities.
The Characteristics of Effective Virtual Teams
Research by Lynda Gratton and Tamara Erickson (2007)
found that successful virtual teams shared the following
characteristics:
1. Executive support
2. Effective HR practices
3. Well-structured teams
4. Strong team leaders
40
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DEVELOPING REAL SKILLS FOR VIRTUAL TEAMS
Practical Tips to Improve Virtual Team Relationships
Diversity training service group RW3, LLC offers
the following practices organizations can use
to improve the relationships among virtual team
members:
• Hold monthly virtual lunches to build rapport.
• Use online chats, video-conferencing and
audio-conferencing in addition to one-on-one
conversations and e-mail.
• P ost profiles of team members on an online
directory. The profiles can include each member’s
areas of expertise and how they fit into the
overall organization.
• Be sensitive to the amount of participation virtual
team members will engage in if meetings are
held early in the morning or late at night in their
time zones.
• Ban multi-tasking during calls and meetings
(Hastings, 2010).
Karen Cvitkovich, managing director of global
talent development at Asperian Global, offered
the following tips during a 2008 SHRM Diversity
Conference to help with the challenges of cultural
diversity faced by many global virtual teams. Her
first word of advice for virtual meetings: set ground
rules for team interactions. Some practical ideas to
help set those ground rules include:
• Speak slowly.
• Don’t interrupt.
• Listen to understand.
• Speak as though remote participants are in
the room.
• Don’t use a computer or text message
during meetings.
• Set agendas for meetings and distribute them
beforehand.
1. Executive Support
Their study found that virtual teams do well when
executives support the development of social
relationships at work (thereby building trust among
colleagues) and demonstrate collaboration. The ways in
which executives build and support social relationships
in their organizations are as varied as the organizations
themselves, but Gratton and Erickson found that the
most successful executives employ “signature” practices
that are memorable, hard to replicate and particularly
well-suited to their organizations.
2. Effective HR Practices
The study also found that two particular HR practices
improved team performance; training in skills to build
collaborative behavior and informal community building.
In instances where collaboration was strong, they found
that the HR team had made a significant investment
in one or both of those practices, often in ways that
reflected their organizations’ cultures and business
strategies.
Collaborative behaviors include demonstrating
appreciation of others, engaging in purposeful
conversations, creatively and productively resolving
conflicts, and program management. Informal
community building activities include feedback,
mentoring and coaching because these practices help
virtual workers feel connected to the organization.
HR should also ensure that succession planning and
promotions are tracked to make sure virtual team
members are receiving recognition and credit
(Leonard, 2011).
41
3. Well-Structured Teams
Selecting the right people to serve on virtual teams is
critical to a team’s success. T.H. Ong, vice president,
Americas and Asian Pacific for Global Integrations,
Inc., notes that the best virtual workers are those who
thrive in interdependent work relationships and who
are self-reliant and self-motivated. Good virtual team
members tend to like or tolerate ambiguity, and are
independent thinkers who are willing to take initiative.
Most importantly, Ong notes, good virtual workers
have strong communication skills (Leonard, 2011).
experience difficulty building trust and rapport among
team members. To help foster trust and rapport, virtual
team leaders must focus on relationship building,
demonstrate excellent communication skills (including
the ability to provide frequent feedback), and have
emotional intelligence. Because decision-making can
be a challenge, particularly early in a virtual team’s
partnership, virtual team leaders must also have a track
record of producing results and a focus on process
(Lockwood, 2010).
4. Strong Team Leaders
For virtual teams to succeed, strong leadership is a
must, and while the skills and abilities needed for
managers of conventional teams are similar to those
needed for leaders of virtual teams, there are a few
key differences. Virtual teams don’t have the benefit
of frequent face-to-face interaction, and consequently,
Practices of Effective Virtual Leaders
UNC professors Ben Rosen and Arvind Malhotra
and University of Southern California professor
Ann Majchrzak studied virtual teams and found
that effective virtual leaders:
• Establish and maintain trust through the use of
communication technology.
• Ensure that diversity on the team is understood,
appreciated and leveraged.
• Manage virtual work-cycles and meetings.
• Enhance external visibility of the team and its
mentors.
• Ensure that individuals benefit from participation
on the virtual team.
Source: Rosen et al, 2007.
42
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
How HR Can Support
Virtual Work Teams
In 2010, SHRM asked HR professionals how they
supported their organization’s virtual workforce. The
poll, Transitioning to a Virtual Organization, found the
vast majority (76 percent) of respondents said they
had established policies and procedures for virtual
work and 66 percent had worked with IT to ensure there
was support for questions from workers about
the hardware and software required for virtual work
Only 37 percent of respondents, however, had provided
e-learning opportunities for their virtual worker, and a
mere 8 percent had provided cultural sensitivity training
for their virtual leaders. Less than a quarter (20 percent)
said they had provided training on leadership styles. The
growth of virtual teams has clearly outpaced the support
activities needed to ensure these teams’ success.
Step 1: Participate in the Selection
Process of Virtual Team Members and
Leaders
The characteristics of successful virtual employees
include self-motivation, self-reliance, and the ability to
tolerate ambiguity. They are able to work independently
but aren’t “lone wolves”, and they are good team
members and excellent communicators. HR and talent
management professionals can assist virtual team
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DEVELOPING REAL SKILLS FOR VIRTUAL TEAMS
leaders at the team formation stage by assessing
whether employees in contention for membership on
a virtual team possess these skills. In addition, because
it is expected that organizations will expand the use
of virtual teams, assessing job candidates for these
skills during the selection process will help position the
organization for the future.
Effective virtual leaders understand that the lack of
face-to-face interaction in virtual teams makes it difficult
to establish trust and take it upon themselves to build
that trust. Successful virtual leaders do this by focusing
on team norms and how information is communicated
(often by setting up communication protocols, setting
team expectations and articulating objectives, and
clearly defining team member roles). In addition, they
ensure that all geographically dispersed team members
“suffer equally” by rotating virtual meeting times to
accommodate different time zones. These leaders
find that offering frequent feedback, mentoring and
coaching also help build communication and trust
among team members.
It is easy to lose track of project deadlines when
individuals work on virtual teams. Good team leaders
closely track progress and productivity using software
tools and other technologies to do so. Studies have
found that good virtual team leaders manage virtual
meetings well (ensuring that there is ample time for
social relationship building, that all team members are
participating, and that conflicts are resolved during
virtual meetings). Effective virtual team leaders often
communicate project progress through balanced
scorecard measurements posted on the team’s virtual
workspace (Malhotra et al, 2005).
Effective team leaders also avoid the “out-of-sight, outof-mind” syndrome by reporting virtual team activities
and progress to other managers and stakeholders.
This not only enhances the team’s visibility, it also lets
the team know that others value their work, thereby
fostering a team mentality.
Effective virtual team leaders also ensure that members
receive recognition from participating on the team.
Examples of ways to recognize virtual team members
include hosting virtual reward ceremonies, recognizing
individual contributions at the start of virtual meetings,
and making team members’ local bosses aware of their
contributions (Malhotra et al, 2007).
When forming virtual teams, HR and talent management
professionals should be aware of the skills and
competencies effective virtual leaders demonstrate and
assess whether potential virtual leaders currently possess
them or can develop them with additional training.
Step 2: Ensure For the Appropriate
Selection, Training and Use of Virtual
Team Technologies
Before a virtual team is formed, HR and talent
management must consider the technologies teams
will need to be successful. Virtual workers rely on
these technologies to see facial expressions and to
assess nonverbal cues--key drivers to establishing trust
among team members. Instant messaging and chat
platforms (like Yahoo! Messenger and Skype), shared
technology services (like Lotus Notes and Microsoft
Exchange), remote computer access, web conferencing
(like WebEx and NetMeeting), file transfer ability, e-mail,
and telephone (either hard-wired or VOIP) must be
assessed by IT and HR, and made available to all virtual
team members. HR should ensure that training on how
and when to use these communication technologies is
offered (and offered again as remote team members
rotate in and out).
When implementing technologies for virtual team use,
HR should consider creating a space in the organization’s
computer system specifically for that team’s use—a
section or a bulletin board—where team members can
share personal experiences and family news. Creating
such a social networking platform will encourage
employees to interact on a more personal basis and
help build trust and a sense of community among team
members. Experts recommend that employers refrain
from “policing” these areas because that may inhibit
interaction among team members (Leonard, 2011).
These virtual areas can be considered a kind of virtual
break room.
43
Step 3: Train, Train, Train
There is no doubt; the skills and competencies required
of virtual team members are high level and complex,
making the odds of assembling that A-team of virtual
teams who possess all the skills and competencies
required to successfully navigate in a virtual environment
a long shot. You may find that technical guru whose
knowledge is critical to the project at hand, but who
finds the expanded communication skills needed when
working virtually challenging. Similarly, you may find
that great communicator who has all the makings
of becoming a great virtual team leader, but who is
befuddled by “groupware” and “social networking
platforms”. Training will be necessary for virtual teams
to succeed, and it is the HR and talent manager’s
imperative to identify the skills gaps and to ensure that
training to close those gaps is made available.
Examples of Best Practices in Virtual-Team Training
• S abre, Inc. hosts team-building sessions with
virtual teams to develop a mission statement, to
set team objectives and clarify roles, and to create
a shared group identify.
t Dow Chemical, virtual team members take
• A
courses on etiquette and meeting management
for virtual teams.
• R
ocketdyne uses information-sharing technologies
such as virtual knowledge repositories for their
extensive training for virtual teams.
• GlaxoSmithKline uses cultural awareness exercises
to break down stereotypes, improve virtual team
communication and to clarify role expectations.
Source: Rosen et al, 2006.
UNC professors Ben Rosen and Richard Blackburn
conducted an in-depth study on the training needs for
virtual teams and found that executives working on
virtual teams needed training in the following:
• E stablishing trust and managing conflict among
the team
• Demonstrating cultural sensitivity and communication
• Leading a virtual team meeting
• Exhibiting positive team building practices
• Coaching and mentoring team members virtually
• Using communication technologies
• Monitoring progress and taking corrective action
• S electing the appropriate technology to fit a task
(Rosen et al, 2006)
• Managing external relationships with local managers
• E valuating and rewarding individual contributions
to the team
44
Virtual team members needed to develop skills in:
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
Based on the outcome of their survey and additional
research, Rosen and Blackburn offered a comprehensive
prototype for virtual team training (see call-out on
page 34). The model reflects the best practices of
successful virtual teams and can be used as a starting
point for training in any organization seeking to
implement or improve virtual teams.
To subscribe, visit www.uncexec.com
DEVELOPING REAL SKILLS FOR VIRTUAL TEAMS
Example: Cisco’s Collaborative Enterprise Framework
Cisco Systems, Inc. developed a model to help organizations align their business
strategies with the emerging technologies that allow for virtual teamwork. Called a
Collaborative Enterprise Framework, it is focused on managing people, processes and
technology—in that order.
How do they know the framework is effective? They implemented it in their own organization.
According to Christine Fisher, head of Cisco’s supply chain collaboration center, before
implementing the framework, most collaboration among the 9,000 supply chain employees and
30,000 outsourced workers occurred through phone, e-mail and in-person meetings. With the
company’s rapid global expansion, the group turned to new technologies to help coordinate the
resulting challenges.
The group started by using collaboration tools to address particular projects where virtual
team input was necessary. For example, employees used Cisco WebEx Connect, a collaborative
workspace and document sharing software, to create a blueprint for lean manufacturing.
Employees also started using video conferencing technology to replace face-to-face meetings.
The use of these tools lowered costs by eliminating travel and increasing productivity. Most
importantly, reports Fisher, they helped boost the quality of their efforts. Fisher found that
employees provided richer contributions that were easier for all participants to see and comment
on.
But her group found that simply providing collaborative tools to employees was not enough.
Although employees wanted more of the latest and greatest collaboration tools like the
corporate versions of wikis, Facebook, or My Yahoo sites, they often became information
graveyards. “We’ve seen this not just in the supply chain team, but throughout Cisco,” Fisher
says. “People were so focused on the tools they didn’t really think about how they would use
them.”
The group wanted to ensure that collaboration tools were acquired strategically, keeping the
company’s business goals in mind, and were used properly, so instead of continuing to roll-out
technologies on an ad hoc basis, the group took a step back. They held a series of workshops
where employees received basic training on Web 2.0 tools. Workshop participants were then
asked to identify high-touch and problem areas where people and information intersect.
Workshop participants then detailed various what-if scenarios to see how Web 2.0 tools might
address various operational challenges. With the information gathered in these workshops, the
group formulated a strategy for using new collaborative technologies to meet their needs.
As a result, the “Connected Supply Chain Workspace,” was born, a place where all the people
involved in Cisco’s supply chain (partners and Cisco employees) can share pertinent information
to coordinate their activities.
Source: Cisco Systems, Inc. (2009). Creating a Collaborative Enterprise.
45
A Model Virtual Team Training Program
Training Modules for Virtual Team Leaders
• Fitting the technology to the task
• Setting expectations, measuring
and rewarding team
contributions
• Coaching and mentoring virtual
team members
• Managing external relations
(on-site managers, sponsors)
• Modeling desired virtual team
behaviors (responsiveness, using
groupware to share information)
Training Modules for Virtual Team Members and Leaders
• Face-to-face teambuilding
session before virtual team
launch
– Establish team identity
– Create mission statement
– Establish team norms
– Build trust
• Mastering virtual team
technology
– Use of groupware
– Teleconference and
videoconference procedures
• Communication skills
– Electronic etiquette
– Cultural awareness
– Brainstorming electronically
– Decision making
• Team management
– Virtual meeting logistics
(synchronizing schedules,
setting agendas)
– Defining roles
– Resolving conflicts
– Meeting milestones
– Evaluating process and
progress
Source: Rosen et al, 2006.
Conclusion
Virtual teams have a promising future in organizations
seeking to leverage the strengths of their globally
dispersed workforces. Successful virtual teams can
increase productivity, lower operating costs and speed
the time to market. Virtual team member and leaders,
however, face unique challenges when compared with
conventional work teams. HR and talent management
professionals can foster the success of virtual teams in
their organizations by:
Cisco Systems, Inc. (2009). Creating a
Collaborative Enterprise.
Ebrahim, A., Shamsuddin, A. & Taha, Z. (2009).
Virtual Teams: A Literature Review. Australian
Journal of Basic and Applied Science, 3(3),
2653-2669.
46
Hastings, R. (July 1, 2010). Fostering Virtual
Working Relationships Isn’t Easy. SHRM Online.
Retrieved August 6, 2011 from http://www.
shrm.org.
Leonard, B. (June 2011). Managing Virtual
Teams. HR Magazine, 39-42.
Gratton, L. & Erickson, T. (November 2007).
Eight Ways to Build Collaborative Teams.
Harvard Business Review, 3-11.
Lister, K. & Harnish, T. (June 2011). The State of
Telework in the U.S. Telework Research Network.
Carlsbad: CA.
Hastings, R. (December 3, 2008). Set Ground
Rules for Virtual Team Communications. SHRM
Online. Retrieved August 8, 2011 from http://
www.shrm.org.
Lockwood, N. (2010). Successfully Transitioning
to a Virtual Organization: Challenges, Impact
and Technology. SHRM Research Quarterly.
Alexandria: VA.
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
• Participating in the selection process of virtual team
members and leaders by assessing virtual team fit.
• Ensuring the selection of virtual leaders who possess
the right combination of communication skills and
business acumen.
• Offering training programs designed to keep virtual
teams up-to-date with the appropriate technology and
to fill identified skill gaps.
Malhotra, A. & Majchrzak, A. (Winter 2005).
Virtual Workplace Technologies. MITSloan
Management Review, 46, 2, 11-16.
Rosen, B., Furst, S., & Blackburn, R. (Summer
2006). Training for Virtual Teams: An
Investigation of Current Practices and Future
Needs. Human Resource Management, 229-247.
Malhotra, A., Majchrzak, A. & Rosen, B.
(February 2007). Leading Virtual Teams.
Academy of Management Perspectives, 60-70.
Oates, N. (Fall 2005). The Best Way to Train
Virtual Teams. UNC Business. Retrieved August
6, 2011 from http://www.kenan-flagler.unc.edu/
news/alumniMag/2005Fall/virtualteam.html.
UNC Kenan-Flagler (April 13, 2010). Managing
an A-Team of Far-flung Experts Requires Special
Leadership Tactics. Forbes India. Retrieved
August 6, 2011 from http://business.in.com/
article/kenanflagler/managing-an-ateam-offarflung-experts-requires-special-leadershiptactics/7802/1.
To subscribe, visit www.uncexec.com
We help you
develop executive talent
while tackling real-world
challenges.
(Now that’s multi-tasking.)
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E X E C U T I V E
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CUSTOM EXPERIENCES
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as they address and overcome these challenges.
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The Power of Experience.
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47
Rethinking Generation Gaps
in the Workplace:
Focus on Shared Values
Marion White
Account Director
UNC Executive Development
Introduction
48
“You can only be young once.
You can always be immature.”
A friend of mine told me recently that she had
e-mailed a funny story about her pre-teen daughter to
her 75-year-old mother and promptly got the response,
“LOL.” My friend said she was glad her mother was
LOL, because had she been ROTFL, then she would
have been worried if her mother could get up. My
friend went on to tell me that her mother thanked her
for the gift certificate she had e-mailed to her 85-yearold stepfather for his birthday. My friend told me that
he applied the gift certificate to his online account and
used it to download books for his new e-reader.
Are my friend’s parents an exception, or have we been
so intent emphasizing the differences in the generations
that we’ve been blind to our commonalities? Have
we unwittingly become victims of stereotyping? Is the
generation gap really that wide?
A story like this makes you wonder if we’ve got this
whole generation gap concept right.
Promise
The popular press has had a field day alerting human
resource (HR) and talent management professionals
to the looming generation gap in the workplace. The
stories invariably begin something like this: “For the first
time in history, four generations will be in the workplace
at the same time.” Most reporters then describe the
gap and its potential adverse impact on the workplace.
In many cases, it isn’t described merely as a gap. It’s
a crisis, a war, a chasm so deep that it threatens our
organizations’ very futures.
This white paper reviews emerging studies that suggest,
while there are some tensions among the generations,
the generation gap has been overly exaggerated in
the popular press. In fact, the different generations
may actually have more in common than previously
thought. These studies will be used to highlight the
values generations share in the workplace and provide
guidance to HR and talent management professionals
on how to improve organizational culture and
communication by focusing on and leveraging these
common traits.
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
– Dave Barry
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G E N E R AT I O N G A P S : F O C U S O N S H A R E D VA L U E S
Defining the Generations
A generation is defined as a “group of people born
in the same general time span who share some life
experience—such as big historical events—pastimes,
heroes and early work experiences” (Weston, 2001 in
Blauth, McDaniel, Perrin & Perrin, 2011).
There are currently four
generations in the workplace:
Traditionalists
Born before 1945, experienced the
Great Depression, World War II,and
the Korean War. According to gener-
ation gap experts, their heroesinclude John Wayne and Joe DiMaggio.
Generation gap analysts believe these shared life
experiences condition generational groups to see and
act differently than other generational groups; hence,
the emergence of a generation gap. These generational
differences, they believe, cause us to communicate and
use technology differently and have different worldviews and perspectives on family and work-life balance.
“Parents often talk about
the younger generation as
if they didn’t have anything
to do with it.”
– Haim Ginott
Baby Boomers
Born between 1945 and 1964, experienced suburban sprawl, the explosion of television, the Vietnam Era and Watergate. Their heroes include Martin Luther King, Jr. and
Dr. Spock.
Generation X
Born between 1964 and 1980, shared Sesame Street, MTV, PCs, soaring divorce rates and were the first latch-
key kids. Their heroes include Michael Jordan and Bill Gates.
Generation Y or Millennials
Born after 1980, experienced the development of the digital camera, social media (Facebook, Twitter, LinkedIn), YouTube, 9/11, Katrina and
increased diversity. Their hero is President Barack Obama.
Generation gap experts say that traditionalists’ shared
experiences have resulted in a strong work ethic; belief
in the “greater good”; focus and perseverance; loyalty;
stability; and a view that work is a privilege. Baby
boomers’ shared experiences resulted in a generation
with a strong customer-service orientation. Baby
boomers are dedicated, optimistic, future-oriented team
players with a wealth of knowledge and experience
to contribute to the workplace. Generation Xers are
adaptable, technologically proficient, independent,
creative and willing to buck the system. Millennials are
optimistic multi-taskers with a global world view who
believe in volunteering and serving their communities
(AICPA, Undated).
These diverse world views and life approaches, some
experts contend, can cause workplace clashes of epic
proportions, lower morale and increase turnover,
requiring HR and talent professionals to take special
care to keep the peace in workplaces.
Source: Daniels, 2009.
49
Shedding New Light on the Generation Gap
Surprisingly, these generational characteristics are
based on little scientific research. While there are
certainly differences among us in how we approach
work, emerging research is starting to turn traditional
thinking about the generation gap on its head. A
2008 Australian study on generational differences in
personality and motivation concluded that the results
of the study “are not supportive of the generational
stereotypes that have been pervasive in management
literature and media.” In fact, the authors noted,
“Even when differences have been observed, these
have related more to age than generation.” (Wong,
Gardiner, Land & Coulon, 2008).
A 2011 Achieve Global survey also concluded that “it’s
not generational difference: it’s ageism,” and that the
stereotypes regarding generations limit contributions
of people of all ages and organizational levels and
can, in fact, hurt collaboration, production, workplace
relationships and individual self-perception (Blauth, et al,
2011).
“….Yet, many of the
age-related stereotypes
presented in the
media…appear to be
anecdotal, testimonial
or human interest
stories masquerading
opinion as fact.”
Source: Mlodzik & DeMeuse, 2009.
The executive recruiting firm Korn/Ferry International
reviewed scholarly literature to see if the claims of a
generation gap had any scientific merit. They found
that no study supported the existence of differences
across all four generations and the few that found
support for differences “lacked scientific rigor”.
(Mlodzik & Demeuse, 2009).
50
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
In fact, the Korn/Ferry report concluded, all four
generations share the same top work motivators of
desire for continuous employment and opportunities for
promotion. Additionally, the study noted, commitment
levels were the same across generations, although
younger generations tended to accept higher risk levels
earlier in their careers (Johnson & Lopes, 2008 in Mlodzik
& Demeuse, 2009). Another study cited in the Korn/
Ferry report found that Baby Boomers and Gen Xers had
similar perception of leadership, organizational climate
and work attitudes (Hart, Schembri, Bell & Armstrong,
2003). Yet another study concluded that Gen Xers and
Yers also shared similar attitudes toward leaders (Levy,
Carroll, Francoeur & Logue, 2005).
“In case you’re worried
about what’s going
to become of the
younger generation,
it’s going to grow up
and start worrying
about the younger
generation.”
– Roger Allen
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G E N E R AT I O N G A P S : F O C U S O N S H A R E D VA L U E S
Rethinking the Generation Gap in the Workplace
Research conducted by Ben Rosen, Ph.D., Professor of
Organizational Behavior for the Kenan Flagler Business
School at the University of North Carolina at Chapel
Hill, also suggests that generations may have more
in common than previously thought. Rosen recently
conducted a survey to examine how the generations
viewed each other, what they expected from their
employers and how they defined ideal leaders. More
than 5,400 people responded to the survey. “We found
that Baby Boomers, Gen Xers and Millennials all shared
the same top five expectations of their employers. They
also agreed in their views of what an ideal leader should
look like,” Rosen reported.
Researcher Huntley Manhertz Jr., Ph.D. (2007 in Blauth
et al, 2011), also found four universal needs among
generations in the workplace. The top-rated need
among all generations was the need to be respected.
Other shared needs Manhertz identified were
competence (feeling valued as knowledgeable, skilled
and experienced), connection (through collaboration
with co-workers) and autonomy (the ability to exercise
self-control within specified guidelines to achieve
shared goals).
Rosen’s research found that all three generations
expected the following from their employers:
1. To work on challenging projects.
2. Competitive compensation.
3. Opportunities for advancement, and chances to
learn and grow in their jobs.
4. To be fairly treated.
5. Work-life balance.
All three generations agreed that the ideal leader:
1. Leads by example.
2. Is accessible.
3. Helps others see how their roles contribute
to the organization.
4. Acts as a coach and mentor.
5. Challenges others and holds others accountable.
“My research findings reveal that there are some
work expectations and leadership perceptions that
the generations have in common,” reports Rosen.
“That doesn’t mean, however, that there isn’t cross
generational friction as well, but I believe the
starting point for bridging any possible generation
gap is to build on the similarities.”
51
“There was no respect for youth when I was young, and
now that I am old, there is no respect for age - I missed
it coming and going.”
– J.B. Priestly
Working with Shared Values across the Generations
The bottom line: It’s time for HR and talent
management professionals to stop looking at what
divides us among the generations and start with what
keeps us together—our desire for our organizations to
succeed, our need for good leaders, finding success in
our careers, and recognizing that we all face aging and
uncertainty in our futures.
We all want our organizations to
succeed
All generations desire continuous employment and
are highly committed to good employers. It stands
to reason, then, that we all want our organizations to
succeed. A 2000 Catalyst study of 1,200 Gen Xers in
North America found that 85 percent of respondents
said they cared a great deal about their organization’s
future, and 83 percent said they were willing to go
beyond what is expected to ensure the success of
their organizations, countering prevailing wisdom
that Gen Xers lack loyalty to their employers
(Giancola, 2006).
What HR and talent management professionals
should do:
• D
evelop an organizational culture that encourages
employee decision making.
ffer employees learning and development
• O
opportunities that will allow them to succeed in
their jobs.
• Implement coaching and mentoring programs.
52
ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
We all want the same thing from
our leaders
As Rosen’s research suggests, all generations agree
on the characteristics of an ideal leader. HR and talent
management professionals can use this knowledge
to develop leadership programs that encourage the
development of those characteristics and to foster
organizational cultures that encourage leaders to lead
by example, be accessible, serve as coaches and mentors
and who can challenge employees and hold them
accountable.
We all want some measure of success
in our careers
We all want opportunities for promotion and the chance
to work on challenging projects, suggesting that all
generations want to feel successful in their careers
regardless of what their life stage may be. We all want
to feel that we are viewed as competent, knowledgeable
workers and to be treated with respect for our
contributions.
Typical generation-gap thinking says that Gen Xers lack
loyalty to their employers and are far more likely to jump
ship than Baby Boomers. The truth may be that as Gen
Xers search to find a good employee/employer fit, they
tend to take more risks in their career and will change
jobs more frequently than Baby Boomers until they find
that fit. Once they find that fit, they are as committed to
their employer as any other generation.
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G E N E R AT I O N G A P S : F O C U S O N S H A R E D VA L U E S
What HR and talent management professionals can do:
• Develop strong leadership programs to enhance
existing leaders’ skills and abilities and which identify
and foster future leaders within the organization.
• Offer coaching and mentoring programs to
encourage cross-generational communication and
enhance career satisfaction.
• Create employee reward systems that acknowledge
employee contributions.
“It’s one of nature’s ways
that we often feel closer to
distant generations than to
the generation immediately
preceding us.”
-Igor Stravinsky
We are all aging
If we refocus “generation gap” to mean life stages,
the differences among age groups can be seen as a
continuum and not necessarily divisive. For example,
Gen Yers may crave feedback and coaching. This need
has been translated by generational gap pundits as seen
as time-consuming and ego-centric to Baby Boomers. If
we rephrase that need for feedback and coaching into
a life stage, Baby Boomers can better understand that
anyone embarking on a new career may need more
frequent confirmation and support than a seasoned
professional. Instead of Baby Boomers hearing a great
sucking sound of valuable work time lost, they become
the coach to the next generation in their fields.
Conversely Gen Yers, who expect their social lives to be
integrated with their work lives, can be educated about
the complications of marriage and family experienced
by Gen Xers and Baby Boomers. Their expectations can
be modified if they understand that these two older
generations may enjoy some integration of their social
lives into their work lives, but not at the expense of
their children, spouses or parents. Gen Yers can now
understand a little better why their Gen X and Baby
Boomer co-workers can’t hang out every Friday night
at the local tavern or why they tend to “get down to
business” a little faster to avoid long work days.
Clarifying expectations about what work-life balance,
professional behavior and workplace engagement
means to different generational cohorts can promote
workplace collaboration.
What HR and talent management professionals can do:
• O
ffer work-life balance programs that meet
employee’s needs at every life-stage.
• D
evelop coaching and mentoring programs to
encourage cross-generational communication.
• C
larify expectations about how different generations
define work-life balance, professional behavior and
workplace engagement.
We will all face challenges in the future
Just as aging is inevitable, so is the uncertainty that
comes with the future. The challenges we face today
will change and new, unanticipated challenges will
arise. Our world is changing faster than ever, as
seen through the evolution of technology, the global
economy, growing and waning populations across
the world, and the ever increasing strain on the
environment. These and other changes have a ripple
effect on the business world and will require a collective
effort of all generations to ensure the survival of their
organizations.
What HR and talent management professionals can do:
• D
evelop change management programs to help
employees at all levels cope with a rapidly changing
workplace.
53
Conclusion
If employers focus on what the generations have in
common, treat their employees fairly and offer them
work-life balance, challenging projects, opportunities
for advancement, learning and growth in their jobs,
they will get committed, loyal workers and productive
workplaces in return.
“I am happy to report
that my inner child is
still ageless.”
HR and talent management professionals must look at
what we have in common and build organizations that
speak to these commonalities. Instead of focusing first
on what divides us, a better approach to managing
generations in the workplace may be to start with our
similarities.
-James Broughton
CLASS OF
‘72 ’92
‘02 ’22
AICPA (Undated). Finding Common Ground:
Erickson, T. (2010, June 8). Redefining Gen
Lesonsky, R. (2011, February 9). How to
Thurman, R. (2010, July 27). 36 Facts About
Recognizing the Value of Multi-generations
Y. Bloomberg Businessweek. Retrieved March
Manage Employees from Every Generation.
Generation Y in the Workplace and Beyond.
in Your Workplace. AICPA. Retrieved March
25, 2011 from http://www.businessweek.
Business Insider. Retrieved March 25, 2011
Rosetta Thurman.com. Retrieved March
25, 2011 from http://www.cpai.com/risk-
com/managing/content/jun2010/
from http://www.businessinsider.com/
25, 2011 from http://www.rosettathurman.
management/ employergard/generational-
ca2010067_362970.htm.
managing-different-generations-in-the-
com/2010/07/36-facts-about-generation-y-in-
workplace-2011-2.
the-workplace-and-beyond/.
article.jsp.
Gelston, S. (2008, January 30). Gen Y, Gen X
Blauth, C., McDaniel, J., Perrin, C. & Perrin, P.
and the Baby Boomers: Workplace Generation
Manhertz, H. (2009). The Generational Divide:
Weddle, P. (2010, November 8). The Non-
(2011). Age-based Stereotypes: A Silent Killer
Wars. CIO. Retrieved March 25, 2011 from
Crucial Consideration or Trivial Hype? Achieve
Generational Talent of American Workers.
of Collaboration and Productivity. Achieve
http://www.cio.com/article/178050/Gen_Y_
Global. Tampa: FL.
MonsterThinking. Retrieved March 26,
Global. Tampa: FL.
Gen_X_and_the_Baby_Boomers_Workplace_
Generation _Wars.
Daniels, S. (2009, May). Generational
2011 from http://www.monsterthinking.
Mlodzik, K. & DeMeuse, K. (2009). A Scholarly
com/2010/11/ 08/career-activism.
Investigation of Generational Workforce
Differences Aren’t that Prevalent. Talent
Giancola, F. (2006, December 1). The
Differences: Debunking the Myths. Korn/Ferry
Wong, M., Gardiner, E., Lang, W. & Coulon, L.
Management. Retrieved March 25, 2011 from
Generation Gap: More Myth than Reality.
International. Los Angeles: CA.
(2008, February). Generational differences in
http://www.talentmgt.com/performance_
Human Resource Planning. Retrieved March
personality and motivation. Do they exist and
management/2009/ May/945/index.php.
30, 2011 from http://www.allbusiness.
what are the implications for the workplace?
com/public-administration/ administration-
Journal of Managerial Psychology, 23, 8.
human/4010578-1.html.
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55
How to Help Leaders Succeed:
A Guide to Successful
Executive Career Transitions
Chris Hitch, Ph.D.
Program Director
UNC Executive Development
Bob Bennett
VP and Chief Learning Officer of FedEx Express
FedEx Corporation
Introduction
Promise
Landing a new executive job can be tough. Succeeding
in that new job may be even tougher. According to
Bradt, Check & Pedraza (2009), less than 36 percent
of executives hired from outside an organization
will succeed and perform well in their new jobs. A
Harvard Business School report estimated a failure
rate between 40 and 60 percent for all U.S. executives
in 2003. A 2005 Right Management report found
that approximately 30 percent of new managers and
executives fail at their new jobs and leave within 18
months (Williams, 2010).
This white paper provides HR and talent management
professionals six simple steps they can take with newly
hired executives to ensure successful transitions into
their roles and organizational cultures. These steps
are cost affordable and can be scaled to any size
organization. With today’s leaner organizations, it is
more important than ever to reduce the break-even
point—the point at which new leaders have contributed
as much value to their organizations as they have
consumed from it—from six to three months (Watkins,
2003). Throughout this white paper are examples of
organizations that have recognized this need and have
developed programs that provide guidance to their
executives to ensure successful career transitions.
The ramifications are significant. Losing an employee
can cost as much as three times the person’s salary,
according to estimates from the HR consulting firm The
Wynhurst Group. The cost of losing an executive goes
well beyond financial, however, and these costs may
be more difficult to overcome. Employees can lose trust
and confidence in their leadership teams which can
affect morale, turnover, service, quality, processes and
much more.
56
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The Basics of Onboarding
The term “onboarding” is frequently used to describe
the process used to acclimate new executives to
organizations. According to George Bradt, co-author of
Onboarding: How to Get Your New Employees Up to
Speed in Half the Time, onboarding is “the process of
acquiring, accommodating, assimilating and accelerating
new team members, whether they come from inside or
outside the organization.”
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CAREER TRANSITIONS: HELPING LEADERS SUCCEED
Too often, a newly hired executive’s assimilation to an
organization’s practices, policies and culture are left to
chance and personal initiative. And while U.S. culture
values a “bootstraps” mentality, leaving new executives
to their own devices and expecting them to learn about
the organization on their own can lead to errors in
judgment, poor decision making, and misinterpretation
of the organization’s culture. In short, many new
executives end up “shooting themselves in the foot,”
alienating superiors and co-workers and polarizing
the workplace.
HR and talent management professionals can help
new executives acclimate to their new roles and/or
organizations by ensuring they have the knowledge and
tools needed to succeed. This responsibility is not a onetime action; it is an ongoing process that starts before
they are hired and continues throughout their careers.
There probably are a thousand different ways talent
management and HR professionals can help career
transitions, but focusing on these six simple steps
consistently will help standardize and accelerate
successful career transitions.
The 6 Derailers for New
Executives
According to the Corporate Leadership Council,
there are six derailers for new executives:
1. Failure to establish key connections and
partnerships.
2. Lack of political savvy or support to
effectively navigate through the organization.
3. Failure to establish cultural fit.
4. Confusion about role expectations.
5. Lack of feedback and coaching.
6. Ineffective people management/team
building skills.
(Source: Moore, 2008)
57
Step 1: Encourage Candidates to Do Their Homework
Before the Interview
A wise person once said, “Some people dream of
success…while others wake up and work hard at it.”
Unfortunately, for many HR professionals, it seems that
people increasingly expect HR to lead them to career
success. It is important to let candidates know from
the outset that they are in charge of their career paths.
They must develop the path, research and achieve the
skills needed to move along that path, and identify the
coaches and/or mentors to help them get there.
That is not to say that HR cannot facilitate the process.
HR can prepare outside candidates during the screening
process by asking about their career goals and how they
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ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
think the position will help them get closer to achieving
those goals; suggesting they research the organization;
and offering ideas as to where they can obtain more
information (usually through the organization’s website
and news media).
These simple suggestions let candidates know that:
a) they are expected to have some basic understanding
of the job and the organization at the time of the
interview, and
b) the organization is interested in their employees’
career development and the “fit” of an employee to the
position in particular and the organization as a whole.
To subscribe, visit www.uncexec.com
CAREER TRANSITIONS: HELPING LEADERS SUCCEED
Step 2: Give New Executives as Much Information as
Possible About the Organization
New hires are often so busy wrapping things up in their
previous positions that they let important steps to orient
themselves to their new jobs lag—steps like learning
more about their new position and organization. Let
new hires know that homework doesn’t end at the
pre-interview stage. Encourage them to map out a plan
for the transition and to be sure to include time to learn
about the new job and/or organization.
New executives should assess the organization and
determine where it stands in its lifecycle. Is the
organization expanding? Is it a new start-up or a
more established organization focused on sustaining
success? Is the organization going through a rough
patch, and have you been hired to clean it up? Is it
ripe for a takeover? Is it a newly merged organization?
Each phase offers different opportunities and calls for
different leadership approaches (Watkins, 2003).
Before their first day, HR should provide new executives
with information about the organization so they can
learn the technical, political (key sources of influence
and coalitions) and cultural (the norms, habits and
customs that shape the organization) aspects of the
organization – knowledge they will need to succeed
(Watkins, 2003).
Encourage new leaders to obtain as
much publicly available information
about the organization as possible
Encourage new leaders to conduct an external scan
of the organization to assess how the organization
is perceived from the outside in. Encourage them to
review any and all public documents available (such
as annual reports if applicable). An Internet search
should provide plenty of quantitative and qualitative
information and give new leaders a sense of the
issues surrounding the organization.
Provide organizational performance
data
Now that you have encouraged new leaders to do their
homework by gathering available data, it is time to
provide them with important organizational data
such as:
• F inancial reports
• S trategic plans
• E mployee performance reviews of direct reports
(personally identifying information removed if the
reviews are provided before assuming the position)
• R
esults of employee satisfaction and loyalty surveys
from within the group and among your customers
• Internal performance targets and metrics
• E xit interview summaries
• Individual development plans for everyone in the
organization (personally identifying information
removed if the information is provided before
assuming the position)
• A
nalyst reports
• G
oals and objectives of the predecessor
• Internal/external customer goals and objectives
They need to know the good, the bad and the not-sopretty aspects of the organization before they start the
job, and this information will give them insight into
organizational strategies, goals and culture.
59
Step 3: Provide Opportunities to Meet with
Key Stakeholders
Effective orientation must consider how new leaders
can avoid the missteps often caused by a lack of
understanding of an organization’s technical, political
and cultural landscape. Although providing internal
documentation can shed some light, HR and talent
management professionals can help new leaders gain
valuable knowledge about the organization’s internal
operations by ensuring that new leaders meet with
key stakeholders. Key stakeholders include the job
incumbent (if possible), the new leader’s direct reports,
the boss two levels up (the boss’ boss), peers, staff
members and key external clients. If possible, have
newly hired executives meet with someone from the
internal communications department to gain insight
on how to effectively “frame the message” they want
to leave with these stakeholders in a way that aligns
with organizational communication approaches and
practices. These meetings should be scheduled during
the new leader’s first few days on the new job.
Meeting the Job Incumbent
This meeting will help new leaders get a better
understanding of the incumbent’s perspective on
the organizational strategy, priorities, performance
objectives and any measures for those objectives. The
goal is for incoming leaders to get the incumbent’s
ideas on the key challenges facing the organization in
the next 12, 24 and 36 months—the near future.
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ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012
HR executives can coach new leaders for this interview
by suggesting the following questions:
• What is the guidance from your boss (your boss’
boss)?
• What are the informal keys to success here?
• Where is the strategy working well and where can it
be improved?
• What are the organization’s strengths and
challenges?
• What metrics does the organization use to track
progress?
While it is important that new executives come to the
job with an open mind and form their own opinions
about people and the environment, this might be
a good time for them to get their predecessor’s
opinion on:
• Primary customers’ and the boss’ likes, dislikes and
“hot buttons” issues.
• Information about staff, such as informal leaders, the
likes and dislikes of each, who can be counted on for
what, special skill sets, etc.
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CAREER TRANSITIONS: HELPING LEADERS SUCCEED
Meeting the Boss
This meeting should focus on getting a sense of the
boss’ priorities. New leaders should ask similar questions
to those posed to the incumbent, but the following
questions could also be revealing:
• What are the organization’s top three to five priorities?
• How do we plan to achieve those priorities?
• What are your top three priorities? (This question
will allow new leaders to see how well that person’s
individual priorities match with the organization’s
priorities.)
• What are the three to five things we should preserve
and maintain? Why?
• What are the top three things that need to be
changed? Why?
• What goals do you hope I achieve? What do you
envision is the timeframe for accomplishing these
goals?
• What are you most concerned that I do?
• What does “success” look like for you in your job?
• What would “success” look like for me in my job?
Meeting with Other Stakeholders
New leaders should also be given a chance to meet
with his/her boss’ boss, peers, direct reports and clients.
Similar questions to the ones listed above should be
asked and answers should be noted. Asking similar if
not identical questions allow new leaders to assess how
consistent organizational goals, objectives and priorities
are among all leadership levels and to identify hidden
agenda items that may affect their decision making.
At the end of these meetings, HR should suggest that
it may be appropriate for the new leader to establish or
begin to establish customer/supplier agreements that
will be a “contract” for what, when and how each
stakeholder will support each other. This “contract”
should identify deliverables, articulate timing, processes
and accountability, and any other details important to
any of the involved parties.
• If you were in my shoes, what would you do first?
Example: Bristol-Myers Squibb’s “Survivor Analysis”
A “survivor analysis” at global biopharmaceutical company BristolMyers Squibb found that they were losing new executives because
the organization was not taking steps to ensure their success.
They developed an executive onboarding program that started during the selection
process. All candidates for positions of vice president or above are subjected to a threehour interview intended to gauge their leadership abilities and organizational fit.
Newly hired executives are under intensive scrutiny during their first 30-60 days. During
that time, they are provided organizational guidelines, given opportunities to clarify
their roles, having meetings arranged with influential colleagues and informed of the
organization’s cultural norms.
Follow-up meetings are scheduled during the new executives first year to check on
their progress. Bristol-Myers Squibb reports a substantial improvement in their executive
retention rates (Wells, 2005).
61
Step 4: Help New Leaders Establish a Clear Break Point
New leaders—whether they are moving into a new
position from within the organization or from outside
the organization—generally have 30 to 60 days to make
the transition. If new leaders are moving into a new
position from within the organization, HR can assist the
transition by ensuring there is enough time for them to
wrap-up and delegate work from the previous position.
Let new leaders know they should determine what
tasks and projects they will complete for their current
job and which tasks and projects will be left undone
but sufficiently documented to allow a successor to
efficiently and quickly take over.
Major
Areas
Of
Focus
“Current Job”
As new leaders scramble to wrap-up their current roles
and prepare for their new ones, encourage them to
think through the differences in the old and new jobs.
Leadership is situational, and by virtue of moving to a
new position, they are, in fact, in a new “situation.”
Consequently, they may need to change their behaviors.
The chart below may help crystallize their thinking in
this regard by identifying the behavior and offering
ideas as to what specifically those changes should be.
“New Job”
How you think,
look, act and
behave
differently
Questions
you have
about your
new job
Priorities
Leadership
Team
Key
External
Stakeholders
Key
Internal
Stakeholders
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CAREER TRANSITIONS: HELPING LEADERS SUCCEED
Step 5: Assign a Coach and Follow-up on Progress
Laying the framework for new leaders to succeed
shouldn’t stop after the first 60 days. Ask anyone who
has moved to a new country; acculturation can take
years. The same is true for a new executive. It will take
time to fully understand the organization’s nuances, and
having a trusted colleague to turn to can help. HR and
talent management professionals can facilitate ongoing
acculturation by:
• A
ssigning a coach who can offer the personal and
professional support new leaders will need as they
learn about their new organizations.
• B
eing a partner themselves in the development and
success of the new executive.
• M
aking “orientation” a lifetime process through
the availability of additional learning.
• B
eing actively involved in the individual’s development plan.
63
Example: FedEx’s Executive Success Orientation
Through FedEx’s Leadership
Principles Program, the
company works with both
formal and informal leaders at all levels to foster career
paths. They have created a learning organization through
the development of a curriculum composed of formal,
accelerated, experiential, online (e-learning) and other
blended learning programs, starting with
non-management employees and reaching up through
senior and executive officers:
• Center for Employee Self Development for employees
to view career paths and gain the knowledge and skills
needed to pursue their chosen path.
• College Consortium composed of accredited learning
institutions that provide incentives to employees--such
as credit for experience and courses taken at FedEx
Express.
• Leadership Principles 1 for managers, a nine to
12-month program providing them the basics they
need (operational/business skills and how to lead
people) to make the large step into management.
• Leadership Principles 2 for senior managers which help
them understand themselves and the basics of leading
managers.
• Leadership Principles 3 for directors which help them
make the transition from a tactical thought process to
one more strategic in nature.
• EXCEL for vice presidents, integrating the complexities
of operating in a global environment and providing
support in recognizing the need for corporate and
personal responsibilities within our community.
• Executive coaching for senior level officers.
All these are supported with (a) recurrent intervention
training that is provided at all levels depending on
particular needs and (b) a formal ten-month Coaching
for Performance program that uses webinars, peer
coaching and conference calls to foster and recognize
implementation of desired behaviors. All these offerings
are tied into a comprehensive talent management and
succession planning process.
Step 6: Encourage Ongoing Communication
By following these last five steps, HR and the
organization has made sure the new executive’s
network is in place to ensure success. The new executive
has been informed, met with key stakeholders, been
coached and is ready to go. HR should now let them
know that during their first 90 days on the new job,
they should work quickly to align their teams, identify
or reaffirm key goals and objectives, and set direction.
And, the HR team should assure them that they will be
with them every step of the way on this journey.
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One important action HR can encourage and be
involved with are regular employee meetings and
feedback sessions to foster communication, read the
pulse of the organization, learn about what is going
well and what is not, and gather thoughts for moving
forward. If this is done, the new executives are ready to
begin making significant contributions quickly—and the
entire organization will be there to support them.
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CAREER TRANSITIONS: HELPING LEADERS SUCCEED
Ferris, E. (2008).
Nyman, M. (2010, August 18).
Wells, S. (2005, March).
Why Executives Fail. Leader Values. Retrieved February 26,
The Executive Onboarding Challenge.
Diving In. HR Magazine, 50, 3.
2011 from http://www.leader-values.com/content/detail.
Industry Week. Retrieved February 26, 2011 from
asp?ContentDetailID=1328.
http://www.industryweek.com/articles/the_executive_
Williams, R. (2010, May 2). CEO Failures: How On-Boarding
onboarding_challenge_22537.aspx.
Can Help. Psychology Today. Retrieved February 26, 2011 from
Moore, M. (2008, October).
Spotlight on Executive Onboarding. PA Times, 5.
http://www.psychologytoday.com/blog/wired-success/201005/
Watkins, W. (2003).
ceo-failures-how-boarding-can-help.
The First 90 Days: Critical Success Strategies for New Leaders
at All Levels. Cambridge, MA: Harvard Business Press.
65
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Managing employee talent is vital to the success of
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We listen to the needs of our partners and develop
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