Leadership Development: The Move to More Rigorous, Structured, and Scientific Approaches

Leadership development: The move to more rigorous,
structured, and scientific approaches
Qualtrics Talent Week Series
Anthony Abbatiello, Partner, Global Leader – Deloiite Leadership
November 2016

Leadership Development: The move toward more
rigorous, structured, and scientific approaches
Copyright © 2016 Deloitte Development LLC. All rights reserved. 2
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Housekeeping

Anthony Abbatiello
GLOBAL LEAD
Anthony Abbatiello is a Principal in the Deloitte Human Capital practice,
based out of the New York office. Anthony focuses on advising global
clients on building high performance businesses that drive growth and
optimization through Human Resources and Talent Management.
Anthony began his career at Accenture helping global clients increase the
effectiveness of HR by creating innovative strategies, global operating
models and bringing HR into the digital age. He also helped pioneer
Accenture's HR Transformation capabilities with the first HR Outsourcing
arrangement in the Financial Services industry. Continuing to build
expertise in Enterprise Business Transformation, Anthony has led key
Mergers/Acquisitions and the transformation of global enterprise functions
such as HR, Operations, Finance and Information Technology. Consulting
experiences span a wide spectrum of functional areas namely Human
Resources Strategy, Human Resources Service Delivery, Talent
Acquisition, Talent Development, Learning Design, Leadership
Development and Technology Integration.

• Introduction
• Next generation leadership development
• Engaging the modern leader
• Rigorous measurement
• Question and answer
Agenda

Leadership is a top business issue
Leadership continues to be the most pervasive human capital concern among surveyed business
leaders and HR…
…and leadership investments are not delivering results, possibly due to:
89%
view leadership as
a high priority and
pervasive
issue (vs. 87% in
2015)
57%
cite their
leadership
challenge as very
important (vs. 51%
in 2015)
28%
report weak or
very weak
leadership
pipelines
14%
rank
themselves as
“strong” at
succession
planning
processes
13%
are “excellent” at
building global
leaders
“Leadership cliff” meeting
“leadership jumps”
Heroes, myths and fad spending with
“smile sheet” evaluation
Network of teams requiring MORE leaders
“Positional leadership” no longer valid
and coaching in higher demand
Source: Deloitte Global Human Capital Trends Report 2016

Next generation leadership development
Toward a more rigorous, structured, and
scientific approach

Structured and scientific
Start with leadership for what? Better business? Better leaders?
Context
• Digital transformation
• M&A / Ownership changes
• Turnaround
• Emerging markets
• Hyper growth
• Re-organization
• New competitive landscape
• Org efficiency
Multiple contexts can exist in the same organization
Characteristics of contextual/Business
first approach
• High contextual relevance
• “Logged on” vs. “Logged off”
• “Real” challenges (as opposed to hypothetical)
with your business as
the laboratory
• Leaders teaching leaders
• Efforts align with culture/strategy/values
• “High stakes” like any other business activity—
what other activities are granted a “safe space?”

Business Event Questions
Context also drives us to ask the right (and hard) questions
Who stays, who goes?
Who should be on the succession list?
How strong is our bench of talent?
How do we measure high potential?
Where should we target our
development spend?
Who is the best fit for new teams?
Who has the potential to transition to
new markets?
Succession
Evaluating bench strength
Talent reviews
Building pipeline
Entry to new markets
Business transformation
M&A

Our research reveals the most effective leaders tend to focus on four key
areas of leadership (and they can be developed)
Laser focus vs. broad brush
Where to place your developmental bets? Go beyond 80/20 to 99/1
The business People
Entrepreneurship Relationships

Business first means defining the leadership capabilities that matter
most… and then putting them in context
A rigorous approach should meet the needs of individual enterprises, establish focus, but also permit
external benchmarking for accountability.
Direction Business judgement
Competitive edge Build talent
Provide vision
and direction
Show commercial
acumen.
Drive change and
innovation
Build capability
for competitive
advantage.
Influence Collaboration
Persuade and
influence
stakeholders
Create synergies via
partnership.
Execution Inspirational
leadership
Achieve results
through others.
Get people to follow
you.
The business People
Entrepreneurship Relationships

hands-on development with time spent practicing in their context
When put into strategic context, developing critical capabilities becomes
top business priority …not a “nice to do”
20% 80%
Accelerating new
learning by building
on
previous learning
Deepening appreciation of
situations by applying expert
schemas to personal
experience
Thinking like an expert
by being taught how
expert leaders think
Building versatility of behavior
by exposure to the range of
strategies that can be used in
different contexts
Activation Acquisition ActionAppraisal
Get to action…….Fast!!!
We have to do it, but its not where
value happens.

Engaging the modern
leader
Putting the leaders context
the center

Four potential dimensions underpin how quickly a leader can learn, grow,
and transition as demands increase
Dimensions
of potential
We need to assess the readiness of leaders to grow and change…..otherwise we will likely meet resistance
or the learner will hit a wall
Change is possible but not without the right raw material.

If it’s so important to know who has the potential and raw material to lead,
why do we not get it right?
Typical measures can
confuse performance
with potential
Why aren’t today’s measures of potential working?
Managers’ ratings may be
biased and evaluate
potential against their own
image
Managers often assume
ratings are objective if they
are numerical

So what do we do with slower potential individuals? Stop developing
them?
Giving them what they want
• A viable career path
• More expertise and knowledge
• Networking
• DEPTH
• Experimentation with their
“thing”

Once we know they are ready to develop (they have the potential), then
we need to engage
Use context to make it relevant
• Gamify real life
• Exposure to real stakeholders
• (Actual) wicked problems
• Immersive learning in internal / external
contexts
• Folding development into the work of the
leader
• The laboratory of real life
Effectively integrating into the leader’s work
helps make it risky, real, and “un-boring”
Keys to engagement in leadership
development

Go beyond the classroom to provide a holistic look at what leaders need to
better drive business strategy
Turning “potential to change” into “actual change”…
Expectations
We design experiences that offer
leaders the diversity they need to
effectively lead your organization
(e.g., global, P&L Management)
Drive measurable capability
uplift by teaching leaders how
to think like experts.
Create immersive exposure for
leaders to gain insights and
learnings from areas outside the
organization (e.g., technology,
innovation, digital)
Our framework defines
leader expectations
What are the experiences that leaders
need to accelerate development?
What do your leaders need
to be the best at?
What ideas could change
the way your leaders
think?

Engage with relevance and variety… And eliminate the “safe space.”
Make it high stakes…
Feedback and
coaching
Action
learning
Leaders as
teachers
Market
immersions
Development of mental
frameworks & cognitive
approaches
Peer
coaching
Individual
application

Learning new ways
of thinking
Rapid prototyping
| Immersive
High stakes
exposure
Collaborative and inclusiveReal problems | Real risk
Engage with the leader at the center

Rigorous measurement
Did this intervention really matter?

Shifting focus to what matters
Moving beyond the basic levels of measurement
Nice to know, but?
The missing link!!
Who cares?
Good on individual
level
Was
there
business
impact?
Did leader
performance
improve
Did behavior
change?
Did the leader
learn?
Did the leader
like it?

Building the business while we build the bench
measuring outcomes on 2 levels
Privileged and Confidential
• Customer outcomes
• Operational outcomes
• Growth outcomes
• Innovation outcomes
• People outcomes
Stronger “ready-now” bench Business outcomes
Stronger transformational
capabilities
Leaders who challenge the status quo,
drive innovation, and create the
business of tomorrow
More context = More relevant measurement
Stronger
leadership
Leaders with the capabilities
required to succeed in a digital
business contexts

Rigor when experimental control isn’t possible
Example approaches to measuring business impact
Measure impact
• if leaders last longer, and revenue holds up, a causal argument can be made that
outcomes are tied to leadership development efforts
Identify variables that can predict business outcomes
• a store run by a manager retained through his 4th year earns $500k more revenue
than a store run by a 1st-year manager
Tailor leadership development to help influence these variables
• i.e. train 3rd year managers in order to improve engagement or
self-efficacy,
• train their managers to engage, motivate, develop, and retain these leaders more
effectively

Copyright © 2016 Deloitte Development LLC. All rights reserved.
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About Deloitte
As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal
structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte
Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your
business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on
this communication.

THANK YOU!

Leadership Development: The Move to More Rigorous, Structured, and Scientific Approaches

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