Leadership Development

1
LeadershipDevelopment

• Best Practices and Other Research

2
Outline

• History of Leadership Development at Cinergy
• Research to learn more about best practices
• Important things about developing Leadership
  programs

3
How I Got Sucked in...

• Late 2003, General Manager request
• Looked ahead at leadership void
• Who was going to fill our futureleadership
  positions?
• Could I develop a programto grow leaders within
  the IT department?

4
Generally Three Reasons...

• To develop future leaders
• To accelerate the development ofhigh
  potentials
• To develop a culture and climateof leadership
  often leaders seenas separate of position...

5
How we started and finished

• We were fortunate we got good advice
• At the time I was teaching leadership for IWU...
• We talked with Lou Russell who had just written a
  book called IT Leadership Alchemy.
• Strong results...

6
More History

• In August of last year, I moved from IT to HR.
• My first assignment was to work on a committee
  that was putting together a management
  development program for Cinergy
• I was asked to research best practices at other
  companies
• Simultaneously, I entered the Doctorate of
  Organizational Leadership program at IWU, and
  began an in-depth study in leadership.

7
Today...

• For the next hour I want to share with you some
  of things Ive learned
• My research was exciting! There are great things
  going on around Indiana... And around the world.
• As I mention things, perhaps youll get ideas
  that you can take back to enrich your own
  leadership development programs.

8
The Research

• Companies Interviewed
• Eli Lilly and Company
• Roche Diagnostic
• Right Management
• Anthem
• Convergys

• Other Companies
• Hewlett Packard
• Federated Department Stores
• IBM

9
The Research

• Other Resources
• IWUs Research Databases
• Corporate Leadership Council
• Gartner Studies
• Executives Interviewed
• Dave Wozny VP Accounting
• Tim Verhagen VP HR
• Craig Weida VP Continuous Improvement
• Todd Arnold Dir. Customer. Service
• Doug Esamann President, PSI
• John Procario VP Regulated Business
• Lynn Good Comptroller

10
Management vs. Leadership
Management
Leadership

• Focus on the bottom line
• Deals with speed and getting things done
• Establishes structureand systems to getresults
• Organizes resourcesto serve selectobjectives
• Produces predictability,order, and short-term
  results
• You manage things

• Focus on the top line
• Deals with directionand vision
• Works for effectivenessand direction to
  getresults
• Derives its power fromprinciples and
  correctvalues
• Produces change and far reaching results
• You lead people

Taken from Leading Change By John
Kotter and Principle CenteredLeadership By
Stephen Covey
What's the difference?
11
Management vs. LeadershipCompetencies
Important Competencies
Important Competencies
Leadership
Management
Area ofOverlap
12
Evolving Needs
Management Skills
Leadership Skills
SeniorExecutive
IndividualContributor
GeneralManager
Supervisor
Manager
13
Leadership Theory, Model , or Philosophy

• Know it before you start
• The most successful program were in companies
  that had a culture of leadership.
• Lillys did an excellent job of communicating its
  leadership approach...

14
Company Publications

• The first responsibility of our supervisors is
  to build men and women, then medicine.
• - Eli Lilly, 1947

15
Structures Who does it?
16
Structures
Human Resources
Department
OE
Organization
Functional Group
LDR
OD
EX
Program
Leadership Dv.
17
Names...What are they called?

• Program Names
• Roche Foundations of Leading and Managing
• Lilly Global Leadership Development Program
• Cinergy (IT program) Lead-IT
• HP The Dynamic Leadership Program
• Federated Leadership Choice
• IBM Basic Blue

18
How Long Do Programs Last?

• Duration is typically shaped by purpose and
  logistical barriers
• Generally 6 months 2 years
• Many offered alumni programs to solve the
  whats next dilemma

19
How Are Participants Selected?

• Directly related to the focus of the program
• Generally three approaches
• Targeted Hipos
• Required Every new manager
• Open Enrollment whomever signs up!

20
What Are Key Components?

• Participant Commitment up front
• Assessment of Participants various reason
• Mentoring/Coaching A crucial component
• Action Learning Learning by working on real
  live projects
• Group/Team Learning Cohort group divided into
  action teams for various assignments

21
What Are Key Components?

• Blended Learning
• Senior Management Support and Participation
• Offsite Events
• Direct Ties to Succession Planning
• Import the Best for our Best
• Measurement of ROI
• Specific goals and objectives to beaccomplished

22
How Do You Get Executive Support?

• Obviously, start at the top (GE)
• Use leaders to teach leaders
• Use leaders as reviewers to go over plans they
  will take ownership
• Use leaders as reviewers of Action Learning
  presentations
• Obviously they can be used as coaches and mentors

23
How Do Participants Gain Experience?

• Job rotation (41 of companies in 2002 Global
  Leadership Survey use this.)
• Formal mentoring programs (22)
• Action Learning

24
How Can Learning Be Transferred?

• Action Learning
• Friday5s
• Journaling what did you learn? What do you
  commit to in terms of action from this learning
  event?
• Peer-to-peer teaching Break into groups and each
  group is responsible for teaching one concept of
  leadership

25
How Do You Build the Content?

• Typically based on Competencies and Values
• How Does Your Organization View Leadership?
• How would you assess the organizations
  Leadership Paradigm
• Does the organization promote a specific
  leadership theory?
• What Skills and Competencies Will Be Needed as
  Employees Move Higher in the Organization?

26
Important Competencies

• Integrity and Character able to build trust
• Communications
• Able to communicate concepts effectively (public
  speaking?)
• Able to communicate ideas and vision
• Business Acumen
• Understanding other business areas within the
  organization
• Understanding the competitive environment
• Understanding business drivers financial
  metrics, etc.
• Vision and Strategic Thinking

27
Reading

• Most programs studied employed some sort of
  outside reading assignments
• Some were on-line
• Others required participants to read books on
  Leadership, etc. and reportback on them.
• The Ten Minute Read...

28
Should We Use Assessments?

• Uses for assessment...
• Selection Process
• Self Awareness
• Point out areas forfurther programcontent

29
Should We Use Assessments?

• Most use some sort of self-assessment
• MBTI
• Strengthfinder
• Thomas Kilborn
• DiSC
• Kouzes and Pozners LPI
• Lillys uses the Hogans Career Derailer
• Butler and Waldroops People Skills
  (www.careerleader.com/people) (HBR June 2004)

30
Steps to Design and Implement

• How do you get started?

31
The Nine Questions
????

• What kind of candidate is the organization
  looking for?
• What does it take to be a good leader/manager
• How does one become a program participant?
• How does the participant stack up right now?
• What specific actions should the participant take
  to become a better leader/manager
• In what ways is the program reinforced by other
  HR systems?
• How can the participants work group be a part of
  the developmental process?
• Is there a leadership succession plan?
• Is the program giving a satisfactory return on
  investment?

32
The Process
Clearly defined requirements include
responsibilities and related competencies
Development resources related to competency
development
Clear Expectations
Development Programs
Leadership Development
Targeted Experiences
Performance Feedback
Work experiences designed to develop leadership
characteristics
Meaningful feedback on defined leadership
practices
Aligned HR Practices
adapted from The Changing Role of IT
Leadership, Gartner, 2003
HR practices that motivate and reward desired
practices
33
Action Steps

• Decide on the purpose
• Who are we targeting?
• How do we position the program?
• How do we define key terms that might confuse
  people?
• Decide on a structure
• Duration and frequency
• Components?
• Establish content
• Base competencies
• Behavior objectives
• Build a Marketing Plan
• Conduct a Kickoff Event
• Executives talk on the importance of the program
• Carefully explain the commitment
• Begin Program

34
Leadership Development Pyramid
OTHERS
Customer Service Skills
Communication
FOLLOWERS
MotivatingPerformance
ManagingPerformance
Strategic Thinking
ORGANIZATION
BusinessAcumen
DiversityLeadership
SELF
SelfManagement
SelfLeadership
Leadership
Management
35
IBM Basic Blue

• Required program for all new managers
• Content customer insight, breakthrough thinking,
  drive to achieve, team leadership, teamwork,
  decisiveness, building organizational capability,
  coaching, personal dedication, passion for the
  business.
• The program offers four tiers of learning...
• First three tiers take approximately six months.
• Managers must pass mastery tests at 90 to move
  on to tier 4.

36
IBM Basic Blue

• Four tears

Face-to-facelearning labs
4
Synchronous onlinediscussion
3
2
Online interactive learning
1
Just-in-time onlineinformation
37
Six Companies

• These six had man training programs that targeted
  new managers.
• All but one required attendance upon promotion.
• One was totally on-line learning
• Three were 90 day programs one was a one-year
  program and two were six months.
• One utilized a class mom to ensure new managers
  complete required assignments.
• Coursework was split between Administrative and
  Leadership Development. (Although many items
  identified as Leadership were really
  administrative.)
• One of the companies used follow-up e-mails to
  remind managers to log goal activities.

38
Jay McNaught

• Leadership Development Consulting and Research
• Education
• Bachelor of Education Indiana University
• Masters of Education Indiana University
• Masters of Business Administration IWU
• Doctor of Organizational Leadership (2007) IWU
• Professional Management Certification Kelley
  School of Business (KEP), IU
• Home 317-881-3760
• Cell 317-409-1116
• eMail JMcNaught_at_Cinergy.com