Local Government Human
Resources Conference
Enhancing Leadership Development
Training & Succession Planning in
Local Government
Presented by
Bruce Watt, Ph.D.
Managing Director, DDI Australia
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The Challenge of Leadership
•
Performance Culture
•
Economic, Political
Confidence Issues
•
Integrity Crisis
•
Stakeholder Pressure
•
Commercial Focus
•
Employee Engagement
Leadership Talent = Top Priority
66%: #1 Priority
(4,500 Global Leaders, DDI, 2005)
Attracting and Retaining Talent: #1 Issue
(Accenture, 2005)
Top 5 management issues; up 25%
(700 Global Executives, Conference Board, 2002)
78%: Most Important/Top 5
Business Success Factors
(950 Executives, CEO Magazine/CCL, 2002)
91%: Top Enabler for Business Growth
(Global CEOs, Conference Board, 2002)
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Karpin Report – 10 Years On
• Task Force reviewed management practices
and leadership development across Australia
• Focus on the needs of managers in the 21st
century
• Based on substantial research – 10 thousand
firms, organisations and individuals
consulted over three years, locally and
globally
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© Development Dimensions Int’l, Inc., MMV. All rights reserved.
Karpin Report – 10 Years On
• Skill limitations amongst managers
represent a major obstacle to continued
economic growth and sustainability
• Weaknesses tend to cluster in areas
recognised as critical to success in 21st
century – teamwork, empowerment,
people skills, strategic skills, international
orientation, visioning
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Agenda
10
Key Findings from DDI’s Global
Leadership Forecast
Best
Practices in Leadership
Development and Succession
Management
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DDI’s Global Leadership
Forecast
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What Makes the Forecast Unique?
Scope
900 Organizations
Multi-Perspective
4,500 Leaders;
940 HR Executives
Global
42 Countries
Industry Range
Across entire spectrum
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What Makes the Forecast Unique?
Continuity
Four Forecasts
Over Six Years
Comprehensive
Trends, Practices,
Motivations
Impact
Link to Financial
Performance
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Finding #1:
Eroding Confidence in Leadership
39%
53%
61%
47%
H.R.
10
Leaders
Global
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Finding #1:
Crisis in Confidence
60
55%
Percent Highly Confident
53%
49%
50
39%
40
39%
37%
43%
41%
38%
30
29%
28%
20
19%
10
17%
26%
26%
22%
0
Leadership
Overall
GLOBAL
11
HR
First-Level
Leadership
Leaders
Mid-Level
Leadership
AUSTRALIA
Senior-Level
Leadership
HR
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Leaders
Finding #1:
Crisis in Confidence
Percent Highly Confident
60
49%
50
46%
39%
40
29%
30
26%
19%
20
22%
20%
10
0
Leadership
Overall
GLOBAL
12
HR
First-Level
Leadership
Mid-Level
Leadership
GOVERNMENT
Senior-Level
Leadership
HR
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Supply and Demand
Finding Future Leaders?
• More difficult
• Same
• Easier
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Finding #2:
It’s getting harder to find senior leaders
100
90
27%
80
43%
53%
70
57%
60
50
66%
62%
24%
23%
51%
38%
40
34%
30
27%
20
21%
10
20%
14%
16%
0
First-Level Leadership
10%
Mid-Level Leadership
Easier
Same
Senior-Level
Leadership
More Difficult
Note: Data reported by HR professionals
14
16%
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Finding #2:
It’s getting harder to find senior leaders
100
90
27%
80
27%
53%
70
45%
60
50
66%
66%
24%
20%
51%
51%
40
34%
30
35%
20
21%
10
22%
14%
20%
0
First-Level Leadership
10%
Mid-Level Leadership
Easier
Same
Senior-Level
Leadership
More Difficult
Note: Data reported by HR professionals
15
13%
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Finding #3: Increasing Reliance
On Growing Own Leaders
37%
44%
2001
Decreased
19%
Stayed the Same
44%
2005
35%
21%
Note: Data reported by HR professionals
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Increased
Inside vs. Out: Tradeoffs
•
•
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Buy from outside
> Unknown Quality
> Short-term Savior
> More Expensive
Grow from within
> Arrive Unprepared
> Rely on the Past
> Not Objective
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You’re Fired!
FIVE YEAR PERIOD
(1997-2002)
OUTSIDE
GLOBAL
ASIA
INSIDE
43%
34%
40%
30%
Booz Allen, 2003 (CEO’s only)
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Finding #4: Failing at Succession
Management: Coverage
65%
48%
Strategic Leaders
39%
45%
42%
Operational Leaders
44%
42%
24%
First-level Supervisors
20%
19%
15%
Individual Contributors
9%
= 2005–2006
= 2003–2004
Government
0
10
20
30
40
50
60
Percent of Organizations with System in Place
Source: DDI Leadership Forecast 2005
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Note: Data reported by HR professionals
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Finding #5: Failing at Succession
Management: Quality
Global
Strength
Malaysia
Practices Strength
AUST
Strength
40%
Supported by Senior Management
31%
Relies on HR Staff to Provide Support
32%
26%
Collects Objective Assessment Data
23%
23%
Lists Well-Defined Requirements and Competencies
20%
20%
Includes Developmental Assignments
16%
16%
Mentoring or Coaching Programs
11%
9%
20
Evaluates/Compensates Managers Based on Progress
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26%
8%
Finding #5: Failing at Succession
Management: Quality
Global
Strength
Malaysia
Practices Strength
GOVT
Strength
40%
Supported by Senior Management
31%
Relies on HR Staff to Provide Support
28%
26%
Collects Objective Assessment Data
17%
23%
Lists Well-Defined Requirements and Competencies
13%
20%
Includes Developmental Assignments
15%
16%
Mentoring or Coaching Programs
15%
9%
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Evaluates/Compensates Managers Based on Progress
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30%
0%
Finding #6: Low Satisfaction
with Leadership Development
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Quality (HR)
Satisfaction (Leaders)
42%
50%
58%
50%
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Finding #7: And…Gaps Between
What is Offered vs. What Works
Special projects or assignments
within one’s job
56%
25%
Special projects or assignments
outside of one’s job
51%
8%
50%
Expatriate assignments
5%
Coaching with internal coaches
or mentors
36%
11%
Coaching with external coaches
or mentors
38%
4%
Tests, assessments, or other
measures of skills
33%
12%
30%
32%
Formal workshops, training,
seminars
0
10
Very Effective
23
20
30
Extensive Use
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40
50
60
Finding #8: Causes of Leadership
Failure – Top 5 Reasons
GLOBAL
GOVT
1. Poor people skills
1. Personal qualities
2. Personal qualities
2. Poor people skills
3. Poor fit with the
company culture
3. Don’t have the skills
4. Couldn’t get results
5. Don’t have the skills
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4. Poor fit with the
company culture
5. Lack of Experience
(Not Ready for the
Position)
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Finding #9: There are Multiple Paths to
Leadership but “Self Made” Tops the List
•
•
•
•
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Born to Lead—Always perceived as a leader
Rewarded for Success—Given position as a
reward for success or taking a risk
Groomed—Identified early on and prepared by
mentors and coaches
Self-Made—Worked up the ranks, building
successes along the way
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Finding #10: Leader Origins
Other see me as a leader and nominate me
41%
Born to Lead
Always seen as a leader
38%
Rewarded for contributions as an individual contributor
38%
Took a big risk, performed well, and was given a
leadership position
22%
I was groomed to be a leader by a mentor
Rewarded for
Success
15%
Groomed
I was groomed to be a leader by a program
within an organization
13%
I worked my way up the ranks, building leadership
skills along the way
68%
I was given a leadership position as a result of education
Self-Made
19%
Lucky enough to be in the right place at the right time
23%
Other
Other
0%
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3%
10%
20%
30%
40%
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50%
60%
70%
80%
Finding 10: Do it Right and Reap the Rewards:
Stronger Leadership= Better Execution
•
•
•
•
•
•
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Brings out the best in others
Passion for results
Conceptual thinking
Learning agility
Motivation to lead
Receptivity to feedback
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And, Superior Performance
• Financial Performance
Leadership
Confidence
Succession
Management
Strong
Development
• Productivity
28%
43%
• Quality of Products/Services
• Customer Satisfaction
26%
• Employee Satisfaction
49%
31%
• Retention of Quality Employees
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54%
Best Practices
1.
2.
3.
4.
5.
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Define Success
Leadership at all Levels – Focus on Key
Transitions
Use diagnosis to understand needs
Broaden scope of development activities
Manage your assets through succession
management
© Development Dimensions Int’l, Inc., MMV. All rights reserved.
Best Practice 1:
Define Success
PERFORMANCE
EXPERIENCE
COMPETENCIES
What I am
capable of
PERSONAL
ATTRIBUTES
What I have done
KNOWLEDGE
Who I am
What I know
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Best Practice 2:
Manage Through Transitions
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•
Transition
Development
(help rising
leaders adjust
as they move
up)
•
Prescriptive
Development
(activities built
around specific
needs
(individual or
group)
Best Practice 3:
Diagnosing Development Needs
• Acceleration Centres
(Simulations)
• Interviews
• Multi-rater Feedback
• Performance
Appraisals
• Interviews
• Career Achievement
Profiles
• Performance
Appraisals
Experience
Competencies
Personal
Attributes
Knowledge
• Interviews
• Career Achievement
Profiles
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• Personality
Inventories
• Interviews
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Best Practice 4:
Broaden Scope of Development Activities
Three Pillars of Development
Experience-Based Strategies
Feedback and Relationship
Strategies
Education-Based Strategies
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Prescribing Development
Solutions
Formal Training
Development Assignments
Front Line Leaders
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Senior Leaders
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Best Practice 5: Manage Your Assets
Through Succession
•
•
•
•
Current Leader’s reluctance to take up the
succession ‘task’
The assumption that succession issues are beyond
the scope of the leader’s work
Confusion about what is meant by succession
planning (replacing oneself or strategic
‘positioning’
How to plan in the midst of a shifting political
environment and given regulatory and political
constraints
Schall E (1997)
‘Public Sector succession: a strategic approach to sustaining innovation’
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Succession and the Merit
Principle
•
‘Succession management practices should target
developmental outcomes, not those relating to
selections or promotions… the succession
management process cannot provide absolute or
fait accompli decisions regarding filing
vacancies. Actual engagement and promotion
decisions are made as the need arises’
Managing Succession
Australian Public Service Commission
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Traditional vs New Approaches
FROM THIS
TO THIS
CEO
CEO
Talent Pool
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Acceleration Pools:
Large Council with Two Acceleration Pools
Top Management
Senior Management
Middle Mgrs & Supervisors
Individual Contributors
Professional & Non Professional
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Acceleration Pools:
Council with a Pool in Each Business Unit and a Pool for Corporate
Positions
39
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Building Strategic Leadership
Capability
Planning
Identifying
Potential
Diagnosing
Dev’t Needs
Acceleration Pools
Prescribing
Solutions
Ensuring
Development
Reviewing
Progress
Success Profiles
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C O M P E T I T I V E A D V A N T A G E. R E A L I S E D.
Thank You
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