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Guidebook: Optimizing Your Leadership Pipeline

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A leadership pipeline approach is not a single program or tool.
It’s a process that provides both the right quantity and quality of leaders—in time—to step up and meet pressing business challenges.
Here are questions you should ask, tips to consider and proven practices to help get you started.

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Guidebook: Optimizing Your Leadership Pipeline

  1. 1. + © Development Dimensions Int’l, Inc., 2016. All rights reserved. Guidebook: Optimizing Your Leadership Pipeline
  2. 2. © Development Dimensions Int’l, Inc., 2016. All rights reserved. A leadership pipeline approach is not a single program or tool. It’s a process that provides both the right quantity and quality of leaders—in time—to step up and meet pressing business challenges. Here are questions you should ask, tips to consider and proven practices to help get you started. Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  3. 3. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Have you connected leadership development to your organization’s business priorities? #1 Begin with where your business is going.
  4. 4. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Human capital remains CEO’s top challenge according to The Conference Board CEO Challenge® . When we asked leaders to assess their own readiness, only 27% reported they were “very prepared” to create an optimal workplace where employees deliver their best. Very few leaders are ready to address CEO’s top challenges. #1 Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  5. 5. © Development Dimensions Int’l, Inc., 2016. All rights reserved. The top 5 leadership attributes and behaviors most critical to success as a leader: 1. Retaining and developing talent 2. Managing complexity 3. Leading change 4. Leading with integrity 5. Having an entrepreneurial mind-set #1 Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  6. 6. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Leader segments most critical for accelerated development (Next 1-2 years). Are you developing the right leaders for the future of your business? #1 53% 51% 38% 32% 22% 21% 20% 16% 16% 13% Source: Brandon Hall Group, State of Leadership Development 2015: The Time to Act is Now
  7. 7. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Have you developed success profiles—more than just competencies—for your leaders? #2 Define leaders who fit the profile for success.
  8. 8. © Development Dimensions Int’l, Inc., 2016. All rights reserved. There are four factors that will define a successful leader: 1. Organizational Knowledge 2. Experiences 3. Competencies 4. Personal Attributes #2 Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  9. 9. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Creating a holistic view of a leader’s role helps define what success looks like. What People KNOW Technical and/or professional information needed to successfully perform job activities. Examples: - C++ Programming - Client Acquisition Strategies - Cross-Cultural Differences What People HAVE DONE Educational and work achievements needed to successfully perform job activities. Examples: - Led a Sales Team - Started up an Operation - Launched a New Product What People CAN DO A cluster of behaviors performed on a job. Examples: - Decision Making - Planning and Organizing - Coaching Who People ARE Personal dispositions and motivations that relate to job satisfaction, job success or failure. Examples: - Leadership Disposition - Cognitive Ability - Risk Averse
  10. 10. © Development Dimensions Int’l, Inc., 2016. All rights reserved. • Anticipate and react to the nature and speed of change. • Act decisively without always having clear direction and certainty. • Navigate through complexity, chaos, and confusion. • Maintain effectiveness despite constant surprises and a lack of predictability. Successful leaders are also able to: #2
  11. 11. © Development Dimensions Int’l, Inc., 2016. All rights reserved. How do you prepare leaders for the next level? #3 Manage leaders in transition.
  12. 12. © Development Dimensions Int’l, Inc., 2016. All rights reserved. To help, provide programs that approach development differently for each level. #3 Whether assuming a leadership role for the first time, taking control of a business unit, or stepping into a new position, leaders in transition encounter significant challenges and they are overwhelmed.
  13. 13. © Development Dimensions Int’l, Inc., 2016. All rights reserved. However, only 37% of organizations use formal programs to ensure smooth leadership transitions. Leadership transition programs have an impact on: + The quality of leadership development + Engagement and retention of leaders + Current and future leadership strength + Financial performance Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015 #3
  14. 14. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Here’s what leaders find as the most effective leadership development method at each leadership level. #3 Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  15. 15. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Do you know who should move up and why? #4 Choose the right people to move up the ladder.
  16. 16. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Research shows that many organizations face a dilemma when having too many or too few high potentials. Revisit your process to ensure you have the right people and right quantity in your high potential pool. Identify high potentials, assess readiness, then fast track to prepare them for growing leadership responsibilities. Targeting the Right Size Pool to Maximize High-Potential Engagement and Retention #4 Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  17. 17. © Development Dimensions Int’l, Inc., 2016. All rights reserved. #4 Placement + Promotion Decisions Strengths + Development Needs Assessing Readiness Assessing readiness not only pinpoints each leader’s strengths and development needs, it also helps you make accurate placement and promotion decisions.
  18. 18. © Development Dimensions Int’l, Inc., 2016. All rights reserved. #4 There is a difference between performance, potential, and readiness. But!
  19. 19. © Development Dimensions Int’l, Inc., 2016. All rights reserved. #4 Performance How well a person is doing in their current role. • Measure using your organization’s performance management system. Potential Likelihood of future leadership growth, or future leadership promise. • Measure using an objective process for identifying high potentials. Readiness The ability to step into a new level of responsibility and meet its demands within a shortened period of time. • Measure using simulations or assessment centers that present challenges similar to the new role. Here’s the Difference:
  20. 20. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Do you have buy-in from your senior leaders? #5 Secure ownership at the most senior levels.
  21. 21. A leadership pipeline cannot be successful without full support and buy-in at senior levels. One way to do this is by measuring impact and providing proof that supports the need for leadership development. #5
  22. 22. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Link leadership development with business metrics. #5
  23. 23. © Development Dimensions Int’l, Inc., 2016. All rights reserved. #5 In our research, we found that when organizations were successfully extending their leadership development programs across all three levels, they financially outperform their peers, and decidedly so. Developing Across the Entire Pipeline: A Key to Financial Success. Source: DDI and The Conference Board: Global Leadership Forecast 2014|2015
  24. 24. © Development Dimensions Int’l, Inc., 2016. All rights reserved. How can you drive results and ensure ongoing impact? #6 Weave in principles that ensure success.
  25. 25. © Development Dimensions Int’l, Inc., 2016. All rights reserved. To sustain a leadership pipeline initiative, you must have: • A sound execution plan • An effective communication strategy • Clear accountabilities • Stakeholders with the right skills • Alignment with related HR systems • Success metrics #6
  26. 26. © Development Dimensions Int’l, Inc., 2016. All rights reserved. More Ideas to Achieve Success!#6 Source: 2015 Brandon Hall Group State of Leadership Development
  27. 27. © Development Dimensions Int’l, Inc., 2016. All rights reserved. Recap 1. Start with the business and where it’s going 2. Define profiles for leadership success 3. Manage transitions at all leader levels 4. Choose high-potentials wisely 5. Gain buy-in from senior stakeholders 6. Use proven practices to ensure success

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