Six Mistakes That Drive Away Your Rising Stars

Transcription

CORPORATE LEADERSHIP COUNCIL®
CORPORATE
LEADERSHIP
COUNCIL
CORPORATE EXECUTIVE BOARD
Six Mistakes That Drive
Away Your Rising Stars
The CLC’s Recent Research Profiled in the HBR
11
An employee’s potential
is determined by his or
her aspiration, ability, and
engagement.
A NEW SYNTHESIS ON EMPLOYEE POTENTIAL
The Corporate Leadership Council’s Model of Employee Potential
Aspiration
The High-Potential Employee
A high-potential employee is someone
with the ability, engagement, and
aspiration to rise to and succeed in
more senior, critical positions.
Ability
Engagement
From the CORPORATE LEADERSHIP COUNCIL®
www.clc.executiveboard.com
© 2010 The Corporate Executive Board Company.
All Rights Reserved. CEB6571710SYN-B
Source: Corporate Leadership Council High-Potential Employee Management Survey, 2005.
2
2
Currently, a majority of
employees have limited
potential to truly excel
at the next level.
■■
Distribution of Workforce Probability in the Top Quartile in a More Senior Role1
Nearly half the workforce
has less than a 5% chance of
being a top performer at the
next level.
About 8% of employees have
at least a 75% chance of
being a top performer at the
next level.
Number of Employees
■■
THE POTENTIAL GAP
32%
15%
1%
22%
5%
13%
25%
10%
50%
8%
75%
Current Probability of Success in a More Senior, Critical Role
1
An employee’s probability of performing in the top quartile in a more senior or a critical role is based on the employee’s potential score, which is weighted
according to the predictors of top performance at the level above him or her. An employee’s potential score was converted into the probability of being a
top performer in a more senior, more critical role using logistic regression.
3
3
POTENTIAL DEFICITS EXIST IN MOST FUNCTIONS AND
AT MOST LEVELS
Percentage of High-Potential Employees
Percentage of High-Potential Employees
By Function
By Level
Although some functions
house more potential
than others, no function
is fully prepared.
Percentage of High-Potential
Employees
12%
9.1%
10%10%10%
9% 9%
8% 8% 8% 8%
7%
6% 6%
Quality Control
Purchasing
Manufacturing
HR
Finance
Corporate Admin.
Operations
IT
Engineering
Sales
Marketing
R&D
Customer Service
Customer Contact
Retail Operations
4% 4%
Percentage of High-Potential
Employees
13%
Other
No function or level has
adequate number of
high-potential employees.
Junior Level
The potential gap is
slightly higher at more
senior levels.
6.3%
6.2%
Mid Level
Senior Level
Function
4
4
Organizations are
prioritizing HIPO
identification due to the
high value associated
with the employees.
HIGH PRIORITY DUE TO HIGH VALUE
Please Indicate the Priority of Effective HIPO Identification at Your Organization
3%
Not a Priority
in 2010–2011
77%
Immediate/Short-Term
Priority
19%
Long-Term
Priority
How Much More Valuable Is a High-Potential Employee Than an Average Employee?
1.2%
No Material Difference
in Value
3.6%
More Than 10%
More Valuable
15.7%
More Than 100%
More Valuable
19.3%
More Than 20%
More Valuable
60.2%
More Than 50%
More Valuable
n = 83.
Note: Numbers may not add up to 100% due to rounding.
Source: Corporate Leadership Council’s HR Organizations’ High-Potential
Employee Management Strategies Survey.
5
5
INCREASING INVESTMENTS, POOR RESULTS
Change in Investment in HIPOs’ Development1
47%
Percentage of
Survey Respondents
Organizations report
increased investments in
high-potential employee
development but less
than one-third report
significant returns.
33%
16%
4%
Greatly
Increased
Somewhat
Increased
Stayed
Constant
Somewhat
Decreased
0%
Greatly
Decreased
n = 88.
Returns on Investments in High-Potential Employees
31%
Significant
Returns
14%
Minimal
Returns
55%
Moderate
Returns
n = 86.
1
Change in investment measured over past two years.
Source: Corporate Leadership Council’s HR Organizations’ High-Potential Employee Management Strategies Survey.
6
6
Engagement levels have
decreased significantly–
yet intent to stay has
slightly increased for
all non-HIPO employees.
■■
HIPOs are aware that their
skills are valued and don’t
share the need to stick
around.
MISTAKE #1: ASSUMING THAT HIGH-POTENTIALS
ARE HIGHLY ENGAGED
Percentage of Employees Who Admit They’re Not Trying Their Best
35%
30%
25%
20%
15%
10%
5%
0%
Total
HIPOs
HIPO employees who believe they’ll
be working for a different employer
in 12 months
“At the time when we
need them most, my
rising stars seem to
have one foot out the door.”
HIPO employees who believe their
personal goals are significantly
different than what the organization
plans for them
25%
20%
HIPOs who admit to having little
confidence in their coworkers
40%
General Manager
F100 Technology Firm
Source: CLC Human Resources Engagement Survey, September 2009.
9
7
BUILDING MANAGER AWARENESS ABOUT EMPLOYEES
Manager Checklist
No
No
Yes
2
Do I know this employee’s objectives and work with him or her toward these goals?
Yes
Yes
Yes
No
Yes
1
Do I know that this employee perceives his or her total rewards to be fair and receives recognition for achievements?
No
No
No
Yes
Yes
3
Do I understand why this employee works at Novartis and not at another firm?
Yes
Yes
Yes
Yes
Yes
0
Manager–Employee Relations Risk
Low Low Med Med Low 6
Number
of “No”s
Yes
0–5 “No”s: Low Risk
6–10 “No”s: Medium Risk
11–15 “No”s: High Risk
Kevin Liu
Yes
Scoring System
Grace Chou
Ben Peng
Do I maintain an open, trusting, and mutually respectful relationship with this employee?
Answer each question
with “yes” or “no.”
Lily Wu
Susie Wong
Illustrative
Retention Risk Assessment—Manager Questions and Scoring
Part I: Manager–Employee Relations
Retention checklists
include four sets of
questions requiring
managers to
truly “know” their
employees.
Part II: Employee’s Work–Life Balance Satisfaction
Do I understand if the working environment fits with my employee’s personal and career needs?
Yes
Yes
Yes
No
Yes
1
Do I understand and support this employee to expand his or her interests or hobbies?
No
No
Yes
No
No
4
Do I know if this employee’s attitude, physical health, and overall status have been healthy for the past six months?
Yes
Yes
Yes
No
Yes
1
Employee’s Work–Life Balance Risk
Low Low Low High Low 6
Part III: Employee’s Job–Interest Alignment
Do I know if the employee’s values are consistent with the organization’s values and culture?
Yes
Yes
Yes
Yes
Yes
0
Does this employee demonstrate passion and enthusiasm for his or her work?
Yes
Yes
No
No
Yes
2
Do I know how satisfied my employee is with aspects of the work situation (e.g., projects, training, coworkers)?
Yes
Yes
No
No
Yes
2
Employee’s Job–Interest Alignment Risk
Low Low Med High Low 4
Part IV: Employee’s Career Goals
Do I know if the employee’s current work is aligned with his or her long-term goals?
Yes
Yes
Yes
No
Yes
1
Have I discussed different career choices with this employee?
Yes
Yes
Yes
No
Yes
1
Am I currently and actively working with this employee toward his or her career goals?
Yes
Yes
Yes
No
Yes
1
Have I had a discussion with this employee about ways to contribute to the company?
No
No
No
No
No
5
Do I proactively support this employee’s development through training and challenging learning opportunities?
Yes
Yes
No
Yes
Yes
1
Employee’s Career Goals Risk
Low Low Med High Low 9
Retention Risk (Based on Number of “No”s)
Low Low Med High Low
The checklist provides
a reality check for
managers on their
knowledge of their
teams.
When complete, the
checklist provides
a rough measure of
the team’s—and key
individuals’—turnover
risk.
Source: Novartis; China HR Executive Board research.
10
8
FROM AWARENESS TO ACTION
Manager “To-Do List”
Retention Risk Category
Step 1: Improve Team Management
Career Goals
Create a development plan that focuses both on skills for the current job and for future jobs
Kevin Liu
Grace Chou
Lily Wu
Directions: Identify and incorporate the following steps in your interactions
with your team, based on their specific retention risks.
Ben Peng
Susie Wong
Illustrative
Offer new types of projects across functional or divisional area to employee
Work with employee to ensure he or she can attend training events
Job–Interest Alignment
Demonstrate the organization’s values and recognize employees for exhibiting them
Manager–Employee
Relations
Recognize employee’s accomplishments both publicly and privately
Conduct regular meetings with your team—formally and informally
Step 2: Target Action Steps to Areas of Concern
Career Goals
Discuss the value the employee brings to the organization
…and can easily be
incorporated into
daily routines and
interactions.
Learn about the employee’s career goals and personal aspirations
Job–Interest Alignment
Express your own enthusiasm and passion for the job
Regularly check-in with your employee and ask about their work situation
Manager–Employee
Relations
Suggested follow-up
steps focus on actions
that are within the
manager’s control…
Inquire about his or her work motivations—pinpoint why he or she is working here
Ask questions to learn what is important to him or her
Ensure employee understands communications about pay and feels open to ask questions
Work–Life Balance
Satisfaction
Discuss reasons for noted health or attitude changes (e.g., tiredness, mood swings)
Learn about the employee’s personal interests outside of work
Ask how the employee works best
Discuss options for employees’ work hours, work style, work load, etc.
Source: Novartis; China HR Executive Board research.
11
9
While being a high
performer is almost
a prerequisite to being
a HIPO (only 7% of HIPOs
are not high performers),
current performance is,
by itself, a poor indicator
of employee potential.
Percentage of Designated Employee Population Who Are HIPOs
By Employee Characteristics
Identifying potential based
on tenure or experience
produces poor and
inconsistent results…
Tenure, experience in turning
a business around or even
leadership capabilities
cannot predict an
employee’s probability of being successful at the
next level.
High-Performing
Employees
Employees with Experience
or Strength in Leadership Skills
Average Employee
Percentage of Designated
Population Who Are HIPOs
■■
MISTAKE #2: EQUATING CURRENT HIGH PERFORMANCE
WITH FUTURE POTENTIAL
…while reliance on
competencies or
performance are only
moderately more accurate.
28.7%
17.2%
8.2%
8.3%
8.5%
Total
Sample
Involved in
Two or More
Turnarounds
and Experience
Managing at
Least Five
People
Five or
More Years
of Tenure
Rated
“Strong” or
“Very Strong”
on People
Management
Competencies
High
Performers
Source: Realizing the Full Potential of Rising Talent, CLC Human Resources.
12
10
Seventy-one percent of
high performers have
limited potential for
success at the next level
due to shortcomings
in ability, aspiration, or
engagement.
■■
Deficiencies in ability are
most detrimental to an
employee’s chances of
future success, followed by
deficiencies in engagement
and aspiration, respectively.
WHY HIGH PERFORMERS ARE NOT ALWAYS HIGH
POTENTIAL
Type #1: Engaged Dreamers
Type #2: Unengaged Stars
Type #3: Misaligned Stars
Aspiration
Aspiration
Engagement
Aspiration
Ability
Ability
Engagement
Ability
Engagement
Frequency: 10% of High Performers
Who Are Not High Potential
Characteristics
■■ Engaged Dreamers are
employees with a great deal of
engagement and aspiration but
only average ability.
■■ Unless the organization can
develop requisite skills, the
probability of success in the
next level is virtually zero.
Characteristics
■■ Unengaged Stars are employees
with a great deal of aspiration
and ability.
■■ They hesitate to believe that
working for the organization
is in their best interest and do
not fully believe in their work or
organization.
Characteristics
■■ Misaligned Stars lack the drive
and ambition for success at the
next level.
■■ Despite their outstanding
ability and commitment to the
organization, they simply don’t
“want it” enough.
Probability of success
at the next level: 0%
Source: Corporate Leadership Council High-Potential Management Survey 2005.
13
11
Managers are becoming
less effective at
developing direct reports
given business pressures
and conflicting priorities.
■■
■■
MISTAKE #3: DELEGATING DOWN THE MANAGEMENT
OF TOP TALENT
Percentage of HIPOs Rating Their Managers as Effective or Highly Effective
High-potential employees
are concerned about their
development and are less
tolerant with this decrease in managers’ capabilities.
Even though managers
will continue to play a
key role as a conduit
between the employee
and the organization, the
organization needs to treat
its HIPOs as a corporate
asset and manage their
development accordingly.
56%
49%
2008
2009
Distribution of Managers’ Time Spend
per Week, 2008 Versus 2009
Percentage of Employees Who Experienced
or Anticipate Change in Manager1
In Hours
53
26
27
2008
56
23
33
People
Management
Activities
37%
No
Non–People
Management
Activities
63%
Yes
2009
Source: CLC Human Resources Manager Survey, CLC Human Resources Rebuilding the Employment Value Proposition.
1
Change in manager or senior leader in the last six months or anticipation of change in the next six months.
14
12
Across the course of a
90-minute development
review, senior leaders
provide the HIPO with
constructive feedback on
their development goals.
REFINE DEVELOPMENT GOALS
HIPO Development Review Board Agenda
HIPO Opening
Comments
HIPO and Review Board Discussion
(20 minutes)
HIPOs present their
goals, aspirations,
and development
questions, defining
ideal outcomes
from the meeting.
(60 minutes)
1. Assess Viability of HIPO Career Plans
Group tests the achievability of HIPO career proposal
in light of Barclays’ needs.
2. G
enerate Ideas and Insights into Development Plan
■■
■■
■■
oard shares stories of past development successes
B
and failures as they relate to HIPO’s goals.
oard provides specific development suggestions—
B
e.g., special projects, useful contacts, or personal
effectiveness insights.
All-Party Debrief
(10 minutes)
HR debriefs
board and HIPO
separately,
ensuring that
all parties have
provided candid
feedback and
thoroughly
understand next
steps.
roup determines how board members can offer
G
ongoing career support.
Source: Barclays Bank PLC.
17
13
14
3%
Number of Functions Worked In
4%
Interact with Existing Customers
5%
Acquire New Customers
5%
Design New Products
5%
Handle Work Crisis
5%
Make Decisions That May
Dissatisfy Customers
6%
Make Decisions Outside Expertise
7%
Acquire New Skills to
Complete Unfamiliar Projects
7%
Work with Third Parties
7%
Consider Global Customer Needs
7%
Understand Markets, Competitors,
or Customers
Engage in Business
Forecasting or Planning
Work with Other Departments
Identify New Ways to Work
Use Specialized Skill for Daily Tasks
Use Special Skills to Handle
Work Crisis
Persuade Senior Managers to
Take Difficult Actions
8%
Number of Countries Worked In
10% 10% 10% 10%
Make Decisions That Could
Damage Organization Reputation
11%
Number of Businesses Launched
Job experience that personally challenges
employees to move outside of their comfort
zone and become active “change agents” will
have the greatest impact on development.
14%
Creatively Solve Problems
Potential grows when
employees are pushed
outside their comfort zone in new, personal (and at times painful) ways.
15%
Modify Work to Adapt to
Changing Circumstances
■■
MISTAKE #4: SHIELDING RISING STARS FROM EARLY
DERAILMENT
Impact on Employee Potential
Rotational programs
could have a significant
impact on an employee’s
potential. However, most
programs don’t provide
significant returns due
to their short duration
and failure to place
HIPOs in a place where
they need to make
impactful decisions.
(1%) (1%) (1%)
“I am being asked to contribute to my full potential”
40%
Yes
60%
No
Source: Realizing the Full Potential of Rising Talent, CLC Human Resources.
19
14
16
■
Rather than continuing
to excel in their current
role, HIPOs prefer to be in
situations where they have
increased accountability,
need to develop new skills,
and are working for higher
stakes.
HIPOs HAVE A LARGER APPETITE FOR RISK
Preference for Risk Taking
HIPO Versus Non-HIPO Employees
HIPO Employees
50%
Non–HIPO Employees
42%
37%
Percentage of Employees Who…
To accelerate
development,
organizations should
expose HIPOs to
high-risk, high-return
opportunities.
32%
30%
27%
27%
25%
25%
20%
…Prefer to be
Accountable for
Decision Making
…Are Comfortable
with Risk Taking
…Prefer Projects
That Require
New Skills
…Prefer High-Risk,
Unpredictable
Environment With
High Returns
…Prefer High-Risk
Projects With
Unpredictable
Returns
Source: CLC Human Resources Employment Value Proposition Survey.
From CLC HUMAN RESOURCES™
All Rights Reserved. CLC6372310SYN
43
15
17
Leverage discrete
business challenges to
fulfill demand for crucible
roles.
EVALUATE BUSINESS CHALLENGES TO MEET
INDIVIDUAL DEVELOPMENT NEEDS
Criteria to Uncover New Crucible Roles
■
■
■
When HIPO demand
outpaces crucible role
supply, use these businessdriven criteria to identify
or create positions that
match HIPOs’ strengths and
development needs.
Dynamic crucible roles
can be either temporary or
permanent, depending on
the specific business need.
Dynamic roles typically
last three to four years and
are most frequently used
to increase organizational
maturity at newer operating
locations and during
acquisitions.
Matching HIPOs to Business Challenges
1. Is there a senior position in the business unit that would
be a crucible role if its risks were divided among two or
more HIPOs?
2. Is there a lack of organizational maturity at an operating
location, within a business unit, and/or function?
At a new operating location, one
HIPO did significant upward coaching
of a new-to-organization leader
and instilled company values in the
workforce while running back-office
operations for the first time.
3. Do the leaders at this location have development needs
that match HIPO strengths?
4. Is there a large unique or special project that could
address HIPOs’ core development areas?
5. Is there a high-quality people manager who can oversee
the HIPO in his or her new role?
Determining the Crucible Role’s Viability and Sustainability
1. Do we need to create an entirely new position or can
the new role be an aggregate of select duties relating
to existing roles?
2. Will this position be “deactivated” or be held by non–
HIPOs once the HIPO moves on to a new role? Will it still
be a crucible role?
Methanex created a new crucible role
by combining elements of four backoffice operations—Human Resources,
Finance, Public Affairs, and Safety—
to create “Director of Corporate
Resources.”
3. If it is deactivated, can the position be reactivated if
another HIPO needs a similar development opportunity?
4. Is the scope of the position significant enough to create
pressure to deliver, but not setting HIPOs up to fail?
From CLC HUMAN RESOURCES™
All Rights Reserved. CLC6372310SYN
OVERVIEW
DYNAMIC CRITERIA
ROLE MATCHING
SUPPORT NETWORK
RESULTS
47
16
18
■■
■■
■■
Employees who claim
that their managers are
effective at differentiating
recognition show effort
levels 10 percentage points
higher than those who say
their managers use a more
“democratic” approach.
HIPOs care more about the
recognition itself than the
size of any reward, as long
as the recognition is in line
with their contribution.
Only 11% agree that their
managers differentiate
recognition accurately,
leaving a huge opportunity
untapped.
MISTAKE #5: EXPECTING STAR EMPLOYEES TO SHARE
THE PAIN
Increase in Desire for Job Recognition
During the Downturn
“My Manager Differentiates Recognition
Accurately”
October 2008–March 2009
42%
Percentage of Respondents
Rating in Top Five
Employees in general,
and HIPOs in particular,
show an increased desire
for recognition in their
work.
11%
Agree
Employee desire
for recognition has
increased by 15%.
36%
44%
Disagree
45%
Neutral
30%
Oct.
2008
Nov.
2008
Dec.
2008
Jan.
2009
Feb.
2009
Mar.
2009
Source: CLC Human Resources Rebuilding the Employment Value Proposition, CLC Human
Resources Managing in the Downturn, CLC Human Resources HIPO Study.
23
17
20
LOW- AND NO-COST RECOGNITION IDEAS (CONTINUED)
Top Ideas for Forms of Recognition
Top Ideas for Tokens
of Appreciation
■■
■■
■■
■■
■■
■■
■■
■■
Post a thank you note on an
employee’s cube.
Create and post an “Employee
Honor Roll” in reception area.
Make a thank-you card by hand
Swap a task with an employee for a
day—his/her choice.
Establish a “Behind the Scenes”
award specifically for those whose
actions are not usually in the
limelight.
Give a shiny new penny for a
thought that has been shared.
Recognize employees who actively
serve the community.
Create an Above and Beyond the
Call of Duty (ABCD) Award.
Top Ideas for Development
Opportunities
■■
■■
■■
■■
■■
■■
■■
■■
■■
Give special assignments to people
who show initiative.
Ask people to present a summary
of what they learned at a
conference or seminar during a
department meeting.
Complete an on-the-job special
assignment.
Represent company at external
event.
Attend a leadership training
workshop.
Establish mentor relationships with
senior executives.
Provide opportunity to manage
one or more direct reports.
Manage a new project or initiative.
Work on a cross-functional team or
taskforce.
Top Ideas for Public
Acknowledgment
■■
■■
■■
■■
■■
Publish a “kudos” column in the
department newsletter, and ask
for nominations throughout the
department.
Publicly recognize the positive
impact on operations of the
solutions employees devise for
problems.
Create a “Wall of Fame” to
honor high achievers and special
achievements in your organization.
Make a photo collage about a
successful project that shows the
team that worked on it.
At a monthly staff meeting, award
an Employee of the Month and
invite coworkers at the meeting to
say why that person deserves the
award.
Top Ideas for Awards
and Perks
■■
■■
■■
■■
■■
■■
■■
Provide low-cost gift certificates
(e.g., iTunes or Amazon MP3
downloads).
Conduct an office outing, such as
going bowling or to the zoo.
Allow employees to leave two
hours early one Friday afternoon.
Take employees to lunch as a
thank you and allow employees to
choose the restaurant.
Provide an assigned parking space
for “Employee of the Month.”
Offer concierge services, both
on-site and off-site (virtual) to
recognized individuals.
Appoint a financial adviser to
meet with selected employees and
provide guidance on their financial
planning issues.
25
18
21
15.9%
15.6%
15.6%
15.3%
14.0%
an
S
d M tron
an g in
ag
ing Lead
Pe ing
op
Se
le
lec
tio
n a Stro
nd
n
Im g in
ple St
me rate
nt
ati gy
on
Pe
rso
na
lC
ha Str
rac on
ter g in
ist
ics
St
r
Pr ong
oc
es in D
s M ay
an -to
ag -D
em ay
en
t
14.4%
De
ve
M
lop akes
me Em
nt
a P ploy
rio ee
rit
y
19.7%
Ma
k
Av es E
oid ffo
La rt to
yo
ffs
20.7%
Cr Is C
o
ea
tin mm
g N itt
ew ed t
Jo o
bs
22.9%
D
ou eep
t E ly
mp Ca
loy res
ee
s
Employees who see the
connection between their
work and the strategy of
the organization show
engagement levels up to 30% higher.
Reciprocity pays: Senior executives who are open to input and
commit to their employees receive heightened effort in return.
Ab
■■
While emotional
commitment drives effort, it
is rational commitment that
drives retention—a critical
risk with HIPOs.
Maximum Impact of Senior Executive Team on Discretionary Effort1
Is
O
Ne pen
w
Ide to
as
■■
MISTAKE #6: FAILING TO LINK YOUR STARS
TO CORPORATE STRATEGY
Improvements
in Intent to Stay
HIPOs are acutely aware
of the organization’s
health and direction.
Their trust in senior
leadership is critical for
both their rational and
emotional commitment.
Maximum Impact of Commitment Type on Intent to Stay1
Rational Commitment
Improvements
in Intent to Stay
A strong rational commitment to the organization
leads to the strongest increase in intent to stay.
50.0%
Rational—
Organization
1
38.8%
38.6%
Rational—
Team
Emotional—
Organization
Emotional Commitment
33.7%
33.2%
30.0%
25.4%
Emotional—
Manager
Emotional—
Job
Rational—
Manager
Emotional—
Team
Each bar represents a statistical estimate of the maximum total impact on discretionary effort each lever will produce through its
impact on rational and emotional commitment. The maximum total impact is calculated by comparing two statistical estimates:
the predicted discretionary effort level for an employee who scores high on the lever and the predicted discretionary effort level
for an employee who scores low on the lever. The impact of each lever is modeled separately.
Source: CLC Human Resources Driving Employee Performance and Retention Through Engagement.
26
19
22
Recreate logo
Head of function or
business unit nominate
HIPO employees with
final membership
contingent on agreement
of entire strategy
committee.
■■
■■
Selection of participants
based on past performance,
and potential value to
corporation.
Strategy committee
members nominate
employees based on
(informal) assessment of
past performance, likely
future contribution with final
selection made by entire
strategy committee.
SPONSOR YOUR BEST TALENT
Anheus
Candidate Selection Process
Strong
Strategy Committee
Moderate
SBU #1
Weak
SBU #2
SBU #3
Jim
Susan
Lori
Brad
Katie
Gina
Jen
Carol
Jeff
Yes
No
Yes
No
No
No
Yes
Defer?
Yes
Past
Performance
Leadership
Ability
Breadth
of Thinking
Potential Future
Contribution
Breadth of
Experience
Individuals with strong potential,
past performance but lacking
in breadth of experience may
benefit from membership on
shadow cabinet.
Individuals with weaker
track records relative to
overall talent pool not yet
ready for membership in
panel.
Individual already possesses
strong background and breadth of
experience; may defer membership
if other candidates would benefit
more from opportunity.
Source: Anheuser-Busch Companies, Inc.
27
20
23
Recreate logo
Participants exposed
to corporate agenda,
develop executive
instincts through regular
consideration of strategic
issues.
■■
FAR FROM DAILY BUSINESS ACTIVITIES
Anheus
Shadow Cabinet Logistics
Time Commitment
Monthly meetings scheduled
immediately prior to strategy
committee meeting promote
consistent, ongoing attention
to development activities.
■■
■■
Thursday 19 October
Friday 20 October
Shadow Cabinet Meeting
Strategy Committee Meeting
■■
■■
■■
■■
Rotate meeting chair
Consider committee agenda
Formulate recommendations
Rotate three members to present
recommendations at next day’s
strategy committee
■■
■■
Shadow cabinet meets 10 times per
year, one day prior to scheduled
strategy committee meeting
Total (estimated) time away from
job: 20–25 days per year (includes
travel and meeting time)
Present shadow cabinet
recommendations during
strategy committee meeting
Take notes on discussion to
report back to next month’s
shadow cabinet
Typical Agenda Items
■■
■■
■■
■■
Stock repurchase proposals
Capital appropriation request for expansion
Deciding international venture strategy
Researching special assignments from strategy
committee (e.g., possible acquisitions, evaluating
current policies)
■■
■■
■■
Due diligence research on potential acquisitions
Review of financial performance
Evaluating reengineering or refurbishment plans
Source: Anheuser-Busch Companies, Inc.
28
21
24
TEN CRITICAL COMPONENTS OF A TALENT-DEVELOPMENT PROGRAM
A Core Set of Best Practices for Identifying and Managing Emerging Talent
1. Explicitly test candidates in three dimensions: ability,
engagement, and aspiration.
6. Create individual development plans; link personal objectives
to the company’s plans for growth, rather than to generic
competency models.
2. Emphasize future competencies needed (derived from
corporate-level growth plans) more heavily than current
performance when you’re choosing employees for development.
7. Reevaluate top talent annually for possible changes in ability,
engagement, and aspiration levels.
3. Manage the quantity and quality of high potentials at the
corporate level, as a portfolio of scarce growth assets.
8. Offer significantly differentiated compensation and recognition
to star employees.
4. Forget rote functional or business-unit rotations; place
young leaders in intense assignments with precisely described
development challenges.
9. Hold regular, open dialogs between high potentials and
program managers, to monitor star employees’ development
and satisfaction.
5. Identify the riskiest, most challenging positions across the
company, and assign them directly to rising stars.
10. Replace broadcast communications about the company’s
strategy with individualized messages for emerging leaders—
with an emphasis on how their development fits into the
company’s plans.
30
22
25
CORPORATE LEADERSHIP COUNCIL®
CORPORATE
LEADERSHIP
COUNCIL
CORPORATE EXECUTIVE BOARD
23
26

Six Mistakes That Drive Away Your Rising Stars

Transcription

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