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CES TDR PRESENTATION 9.2013 K.LAWRY

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Kari Lawry

on 14 November 2013

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Transcript of CES TDR PRESENTATION 9.2013 K.LAWRY

"Do we have the leadership capability we need to be successful in this business?"
Leadership Strategy
Starts with
The Business Strategy

RECOMMENDED CHANGES
Value of Human Capital?
POTENTIAL, WHA???
A LOOK UNDER THE HOOD
Our Demographics...who are we looking at year over year?
Grid Comparison 2011 - 2013...what is our talent make-up within CES??
Observations
Recommendations for change
THE "IDEAL" 9 CELL
A way to tie business strategy to leadership development strategy
Set goals & have a laser focus
Aspirational
Allows us to tie valuable resources - $, people, time - to effectively manage talent and staff to our business strategy
We came by these grids honestly because our process was developing, but we can improve it...isn't that what we are good at? Process Improvement?
Start by looking at BUSINESS CHALLENGES...
The brain is a goal-seeking
organism. Setting a goal creates
structural tension in your brain,
which will seek to close the
gap between where you are
and where you want to be, who
you are and who you want to become.
If you don't set goals you become
stagnant.
15%
15%
15%
10%
10%
5%
5%
10%
2%
5%
4%
25%
15%
4%
9%
16%
15%
18%
ACTUAL IDEAL
PEPSI CO.
10%
15%
10%
15%
10%
5%
5%
10%
7%
11%
9%
24%
12%
2%
5%
6%
20%
24%
ACTUAL IDEAL
PULTE HOMES
10%
15%
10%
15%
10%
5%
5%
15%
0%
5%
6%
25%
9%
4%
15%
19%
15%
15%
ACTUAL IDEAL
CITIBANK – CONSUMER BANK
18% 5% 2% 15% 15% 15%
15% 25% 4% 10% 10% 15%
4% 9% 16% 5% 5% 10%
15% 5% 0% 15% 15% 10%
9% 25% 6% 10% 15% 10%
4% 15% 19% 5% 5% 15%
24% 11% 7% 20% 15% 10%
12% 24% 9% 10% 15% 10%
2% 5% 6% 5% 5% 10%
So...given all of this,
what would be our
IDEAL 9 CELL
Investment
88%
OF OUR DIRECTORS ARE
MEETING OR EXCEEDING
PERFORMANCE EXPECTATIONS...DOES THIS REFLECT OUR REALITY? IS THIS REFLECTED IN OUR OPERATIONAL EFFECTIVENESS?
AS OUR TENURE GROWS IN OUR
SENIOR RANKS = INCREASE IN HIGH PROFESSIONAL BOX

(defined as those that consistently produce EXCEPTIONAL RESULTS AND HIGH PERFORMANCE RATINGS IN A DEFINED, FOCUSED AREA")

...IS THIS BECOMING OUR 'SAFE HOUSE'?
DIRECTORS: SR. MGRS:
2011 - 18% 2011 - 15.5%
2012 - 21% 2012 - 20%

OUR "KEY PERFORMER" BOX IS
DISAPPEARING OVER TIME.

WE NEED TO BUILD OUR CORE, BUT NOT
"DUMP" TALENT HERE
DIRECTORS: SR MGRS:
2011 - 27% 2011 - 23%
2012 - 17% 2012 - 6%

IN 2012 WE HAD 17% OF OUR
SENIOR MANAGERS AND DIRECTORS
THAT WERE NEW TO THE COMPANY
BUT "HIRED FOR POTENTIAL":

DID WE ON BOARD THEM WELL?
DID WE HAVE A FORMAL DEVELOPMENT PLAN FOR THEM?
ARE THEY NOW IN THE "HIGH POTENTIAL" PIPELINE?
DID ANY TERMINATE?
DO WE WISH WE COULD HAVE A 'DO OVER' WITH ANY OF THEM?
FOOD FOR THOUGHT...
Unusual talent distribution
What does this say about our "Leadership Culture"...is it true?
What are the unintended consequences of this kind of grid results?
Even if you believe we have this mix right...over the next 10 years we could potentially lose up to 50% of the leaders on this grid due to an aging workforce, what are we doing NOW to replace them with the same high level performers?
Recommendations:

CHANGE THE WAY WE CALIBRATE
CHANGE OUR TIMING
ALIGN COMPETENCIES WITH STRATEGY
GET MORE "PRECISE" ON DEFINING "POTENTIAL"
DON'T MOTIVATE, INSPRIRE
CALIBRATION
- look both ways!
From internal only to internal + external view
Theory of Relative Scale
TIMING IS EVERYTHING
"Look at Performance over time..."
2 - 3 years...most business strategies don't last that long!
Lose your sense of urgency & focus
EX:
2011 = Above Average
2012 = Average
2013 = Below Average
No "D" in our TDR!
Propose a 12 month standard view
2013 CES Leadership
Talent Development Review

TALK A COMMON LANGUAGE
DRIVE INTERNAL CONSISTENCY
"A leadership competency model should serve as the foundation for any organization’s leadership development system. An effective model allows an organization to clearly define what leadership competencies are required in order for an organization to be successful, both now and in the future. Leadership development systems (selection, assessment, development, performance management, succession planning) can then be aligned to support the development of these competencies."

SOLE PURPOSE =
IMPROVE LEADER EFFECTIVENESS ALIGNED WITH BUSINESS STRATEGY
What are they looking at?
Con-way Stock Valuation
Financial- Related
Data (65%)

Earnings Growth
Yields
Operating Numbers
Margins, etc.
Non-Financial Related
Data (35+%)

Quality of Management
Strength of Corporate Culture
Effective Executive Compensation
Strategy Execution
Ability to Attract Talented People
Market Leadership Position

Fortune
"
Most Admired
"
:
Ability to Attract and retain talented people
Quality of management
Social responsibility to the community and the environment
Innovativeness
Quality of the products or services
Wise use of corporate assets
Financial Soundness
Long-term investment value
Effectiveness in doing business globally
DEVELOP BUSINESS
LIFE CYCLE
BASED "IDEAL"
9 CELL
REDEFINE THE WAY
WE EVALUATE OUR
TALENT
GOING FORWARD
ESTABLISH A
FORMAL
APPROACH TO
DEVELOP
TALENT ACROSS ENTERPRISE
HOLD OURSELVES
ACCOUNTABLE FOR METRICS AND RESULTS
DRIVE THE STRATEGY:
PROCESS IMPROVEMENT
Enterprise Wide Leadership Competency Model
IT'S A ROADMAP
ROAD MAP TO HIGHER PERFORMANCE
IDENTIFY WHERE YOU ARE NOW AND WHICH ROUTE WILL TAKE YOU TO THE NEXT PERFORMANCE LEVEL
CREATE HIGHLY EFFECTIVE LEADERS
LOMINGER IS GREAT, BUT WE HAVE BEEN WORKING WITH 67 COMPETENCIES

WORK ON 3 - 4 COMPETENCIES A YEAR AND IT WOULD TAKE YOU 16 - 23 YEARS!

EXTRAORDINARY LEADERS DON'T NEED TO BE "SUPERLEADERS' EXCELLING AT ALL COMPETENCIES TO PERFORM AT THE HIGHEST LEVELS...GOING FROM "GOOD" TO "GREAT" IN JUST 3 - 5 WILL DELIVER OUTSTANDING PERFORMANCE RESULTS
POTENTIAL
SKILL:
ABILITY TO PERFORM EFFECTIVELY AND EFFICIENTLY

MOTIVATION:
DESIRE TO TAKE ON CHALLENGES AND RISK

ASK YOURSELF:
Do they get it? (skill)
Do they want it? (motivation)
Do they have the capacity to do it? (potential)
GET IT?
Do all of the neurons in his or her brain connect when you explain and they do the job?
Does he or she get all of the in's and out's of the position?
Do they consistently "meet" or "exceed" defined goals and deadlines without hand holding or follow up?
Not everyone gets it, and its not a bad thing. He or she just needs to be in a different seat on the bus.
Want it?
Does he or she genuinely want to do the job?
Does he or she get up every morning wanting to do it?
You can't pay, motivate, force or beg him or her to want it. He or she has to want it on his or her own.
Sometimes people get it and have the capacity, but just don't want it anymore.
Capacity to do it?
POTENTIAL IS THE RELATIONSHIP BETWEEN SKILL AND MOTIVATION.
Does he or she have the mental, physical, spiritual knowledge and emotional capacity to do the job?
Sometimes this one is negotiable. While not getting it or wanting it are deal-killers, a problem of capacity can be solved, although rarely.
If you believe the person can gain the capacity (competencies!) and you are willing to invest time, resources and energy for him or her to do so, do it!
ENTERPRISE LEADERSHIP COMPETENCY MODEL
Started with over 20 different competency models across the enterprise
Some models had 42 of the 67 competencies identified...how's that for a laser focus?
Most models included competencies that were NOT aligned with our current or future business strategy.
The life expectency of the competency model is 3 - 5 years at most...it should morph and align with our changing business strategy
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