SHRM Foundation’s Effective Practice Guidelines Series

Developing Talent

A guide to succession and SHRM Foundation’s Effective Practice Guidelines Series Developing Leadership talent

A guide to succession planning and leadership development

by David V. Day, Ph.D.

 DEVELOPING LEADERSHIP TALENT

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the pub- lisher nor the author is engaged in rendering legal or other professional . If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their .

This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource (SHRM©). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation.

©2007 SHRM Foundation. All rights reserved. Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314.

The SHRM Foundation is the 501(c)3 nonprofit affiliate of the Society for Human (SHRM). The SHRM Foundation maximizes the impact of the HR profession on organizational decision-making and performance by promoting innova- tion, education, research and the use of research-based knowledge. The Foundation is governed by a volunteer , comprising distinguished HR academic and practice leaders. Contributions to the SHRM Foundation are tax deductible. Visit the Foundation online at www.shrm.org/foundation.

For more information, contact the SHRM Foundation at (703) 535-6020 ii Table of Contents

v Foreword

vii Acknowledgments

ix About the Author

1 Developing Leadership Talent

3 Business Case for Succession Planning and Leadership Development

6 Succession Management, Not Just Planning

18 Leadership Development

23 Developmental Practic es

31 Conclusion

33 References

37 Sources and Suggested Readings

iii

Foreword Dear Colleague: As a busy human resource professional, you probably find it difficult to keep up with the latest academic research in the field. Yet knowing which HR practices have been shown by research to be effective can help you in your role as an HR professional.

That’s why the SHRM Foundation created the Effective Practice Guidelines series. These reports distill the latest research findings and expert opinion into specific advice on how to conduct effective HR practice. Written in a concise, easy-to-read style, these publications provide practical information to help you do your job better.

The Effective Practice Guidelines were created in 2004. The SHRM Foundation publishes new reports annually on different HR topics. Past reports, available online at www.shrm.org/foundation, include , Selection Assessment Methods, and Commitment and Implementing Total Rewards Strategies. You are now reading the fifth report in the series, Developing Leadership Talent.

For each report, a subject matter expert with both research and practitioner experience is chosen to be the author. After the initial draft is written, the report is reviewed by a panel of academics and practitioners to ensure that the material is comprehensive and meets the needs of HR practitioners. An annotated bibliography is included with each report as a convenient reference tool. This process ensures that the advice you receive in these reports is not only useful but also based on solid academic research.

Our goal with this series is to present relevant research-based knowledge in an easy-to-use format. Our vision for the SHRM Foundation is to “maximize the impact of the HR profession on organizational decision- making and performance, by promoting innovation, education, research and the use of research-based knowledge.”

We are confident that the Effective Practice Guidelines series takes us one step closer to making that vision a reality.

Frederick P. Morgeson, Ph.D. Chair, Research Applications Committee Professor of Management Michigan State University



Acknowledgments

The SHRM Foundation is grateful for the assistance of the following individuals in producing this report:

Content Editor Reviewers Frederick P. Morgeson, Ph.D. Berrin Erdogan, Ph.D. Professor of Management Assistant Professor of Management Eli Broad of of Michigan State University Portland State University

Mark Fogel Corporate , HR and Project Manager Customer Care Beth M. McFarland, CAE Leviton Manufacturing Co., Inc. Manager, Special Projects SHRM Foundation Robert J. Greene, Ph.D., SPHR, CCP, CBP, GRP, GPHR Major funding for the Effective Practice Guidelines series is Reward $ystems, Inc. provided by the Human Resource Certification Institute (HRCI) and Elinor K. Hite the Society for Human Resource Strategic Director, Human Management (SHRM). Resources & Organizational Development YMCA of the USA

Robert C. Liden, Ph.D. Professor of Management University of Illinois at Chicago

Daphne Logan Vice President, America’s Second Harvest

vii

About the Author David V. Day is Professor of Organisational Behaviour in the Lee Kong Chian School of Business, Singapore Management University. He has David also held positions as Adjunct Research Scientist for the Center for Creative Leadership and Senior Research Fellow for the U.S. Army V. Day Research Institute Consortium of Research Fellows.

Dr. Day has published more than 50 journal articles and book chapters, many pertaining to the core topics of leadership and leadership development. His research has been published in the Journal of Applied Psychology, Personnel Psychology, Academy of Management Journal, Journal of Management and Leadership Quarterly, among other journals. Dr. Day serves on the editorial boards of Human Performance, Journal of Applied Psychology, Journal of Management and Personnel Psychology and also serves as Associate Editor of Leadership Quarterly and Human Resource Management Review.

He is a Fellow of the American Psychological Association and the Society for Industrial and Organizational Psychology. Dr. Day maintains membership in the Academy of Management, Asia Academy of Management, Southern Management Association and the International Association of Applied Psychology.

Dr. Day is the lead editor on the book Leader Development for Transforming Organizations: Growing Leaders for Tomorrow (Lawrence Erlbaum Associates, 2004) and the forthcoming book An Integrative Theory of Leader Development: Connecting Adult Development, Identity and Expertise (Psychology Press, 2008). He served as a civilian member of the U.S. Army Training and Leader Development Panels recommending directions for officer, non-commissioned officer and Army civilian . Dr. Day received his Ph.D. in industrial and organizational psychology from the University of Akron in 1989.

ix Effective succession planning involves more than just a replacement planning process. It also includes a comprehensive employee development system.



Developing Leadership Talent 

Developing Leadership Talent

An advertising campaign a few years ago promised “no surprises” in a hotel chain’s hospitality services. That is a motto that most HR professionals would embrace. Unfortunately, surprises are inevitable. When a key employee announces that she is leaving the , effective immediately, it could be one of those nasty surprises that create incredible turmoil. Not only this person anointed as “high potential” (i.e., having the potential to be developed for a senior leadership role) and slotted for a more responsible upper-level position, her departure can create a domino-like effect that leaves leadership gaps all along that succession line. Despite the inevitability of surprises, what matters most is how the HR function is prepared to respond in such occasions.

The foundation for coping successfully with staffing surprises is succession planning. Organizational survival in a globally competitive environment depends in part on having identified and developed replacements (i.e., successors) for key positions.[1] This is the essence of succession planning. A more formal definition of succession planning is the process of identifying one or more successors for key positions and preparing them for expanded organizational responsibilities through job assignments and other developmental activities.[2] The part of this definition regarding preparing individuals for expanded responsibilities overlaps with what is typically considered as leadership development—broadening the capacity of an individual to be effective in leadership roles and processes.[3]

When an event such as a surprise resignation occurs, it is impossible to jumpstart a dormant succession system. This is because effective succession planning involves more than just a replacement planning process. It also includes a comprehensive employee development system.[4] When a sudden leadership void is experienced, it makes no sense to then start the development process. It is too late, because proper development can take months or even years. For this and other reasons, succession planning and leadership development initiatives must be linked in explicit and coherent ways to best manage the leadership talent of an organization.

Now consider what happens in the event of a surprise resignation when there is an integrated succession management initiative in place. In such cases, the loss of any one individual is not so traumatic to the organization because of a greater overall capacity for leadership. There is the capability to fulfill responsibilities of the person who is leaving through existing employees, at least temporarily. There is not one person but any number who can step in and assume part or all of the open job responsibilities until a successor can be appointed either from the inside or as an external hire. An implication of this deep leadership capacity is that no one is irreplaceable. Indeed, the greater the number of irreplaceable employees in an organization the more at that organization is to turnover trauma.  Developing Leadership Talent

“Death of the ‘Irreplaceable’ CEO Successor” provides an example a vital project for the company’s Death of the “Irreplaceable” of an organization that pinned future, and it suddenly vanished. On CEO Successor its succession hopes on one very top of it all, the company was again talented individual only to have faced with a dilemma of who would tragedy strike. Surprises do not only succeed the founder. Instead of a Organization: Kerzner International happen when the CEO or other 42-year-old CEO who had been Ltd key employees suddenly quit or carefully developed for the job over retire. As the case illustrates, there Kerzner operates One&Only luxury many years, the company would be are dangers of designating only one hotels with properties in Mexico, led by Sol Kerzner and Paul O’Neil possible successor to a key position, Maldives, Mauritius and other (age 61), who was coaxed out of regardless of its level. locations. retirement to help fill the leadership Headquarters: Bahamas void left by Butch’s death. Leadership bench strength, the leadership pipeline and leadership Founded: 1993 as Sun International capacity are popular metaphors for Hotels, Ltd. What this case illustrates: the underlying issue of ensuring that an organization’s leadership 2005 revenues: $745.7 million • the potential problem of investing is adequately developed to face Executive chairman and founder: all development efforts into a current and future challenges. Soloman “Sol” Kerzner (age 71) single successor—no matter how Regardless of the term that is talented—and not developing a used, the particular concept Handpicked successor: Howard broader capacity for leadership or emphasizes that leadership is not “Butch” Kerzner (age 42, son) a deeper leadership pipeline. centralized in a single or small • the inability to jumpstart a number of individuals. It begins with the belief or organizational The leadership future had been dormant or inactive succession process when there is a crisis. norm that leadership is everyone’s planned and everything was looking business. Why? Because the kinds of good for Kerzner International. The • succession surprises are not challenges faced in today’s globally aging and sometimes embattled limited to the sudden departure of competitive environment are way chairman/founder had appointed the incumbent CEO (in this case). too complex for any individual his popular and talented son Butch Why did no one ask the obvious to figure out alone. In order to to be his successor. The elder question in advance: What survive and thrive, successful Kerzner was planning on easing into would happen if Butch died? organizations must be keenly aware retirement. Would more detailed scenario of their leadership talent and how Tragedy struck when Butch was planning have helped foresee to best develop it across all levels. killed in a helicopter crash while this particular form of turnover Succession planning and leadership surveying sites for a new luxury trauma? development are key processes resort in the Dominican Republic Source: The Wall Street Journal[5] in assessing and developing an on October 11, 2006. Shortly organization’s leadership talent.[6] after Butch’s death, Kerzner received word that a proposal for an integrated resort in Singapore, which was being championed by Butch, had been rejected by the Singapore government. This was

Developing Leadership Talent 

Business Case for Succession Planning and Leadership Development

“The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades.” John P. Kotter Author, Leading Change

“It’s very odd to me. The assets walk home at night. If people are your most important asset, you ought to develop them. It’s Goldman’s philosophy that not only do people have to be developed, it ends up being a huge competitive advantage.” Steve Kerr, Chief Learning Officer,

Before joining Goldman Sachs, Steve Kerr was a prominent figure running GE’s legendary Institute at Crotonville—the world’s first major corporate university—during Jack Welsh’s tenure. Kerr argues that intensive employee development is a “huge competitive advantage” in terms of as well as retention, in addition to building the leadership capacity needed to stay competitive in today’s business environment. Regardless of industry sector, there are several overarching and interrelated reasons why succession planning and leadership development are crucial concerns.

Speed of change is increasing, and the type of change that organizations experience is likely to be radical and discontinuous. This argues for greater in organizations. Shared leadership supports more effective in terms of both sensing needed organizational changes and building momentum for change more quickly than relying on a single change leader.[7]

Complexity in the challenges faced by organizations across most industry sectors is increasing exponentially. This has resulted in the heightened feeling of “vu jade” (as compared with déjà vu)—I have never been here before, I have no idea what is happening, and I don’t know who can help me.[8] Such complexity typically exceeds the capacity of any single leader to make sense of and develop workable solutions.

Task migration occurs whereby traditionally higher-level leadership responsibilities are transferred to leaders at lower levels. This is partly a function of the trend toward redesigning flatter organizations in which greater leadership gaps become apparent, but it is also due to greater speed and complexities of challenges. What was typically handled by senior leaders in the past has been handed down to junior leaders so the former can focus on even more complex issues.



Every managerial Recruitment and retention are challenges associated with designing tied to issues associated with and implementing an integrated whether employees feel that their succession planning and leadership employee should professional potential is being development system. What follows developed and used in the best is an overview of the key criteria of have an individual possible way. Having opportunities an effective system and some of the across the organizational spectrum most pressing challenges associated development to participate in leadership with each factor. development efforts is something plan and be held that can provide an incentive to join Key Aspects of an and remain with an organization. Effective Succession accountable for Formal: A formal process is making progress on Major Reasons Why Succession one in which the key pieces are Planning and Leadership standardized throughout an Development Are Important organization. An informal process it every year. occurs in an unplanned and ad- • Rapid, radical and discontinuous hoc manner. There is a risk of change succumbing to informal, ad-hoc development approaches that place • Increasingly complex challenges the entire burden for development • Greater leadership responsibility onto the individual employee. While at lower levels it is important for employees to accept final responsibility for their • Recruitment and retention of the development as leaders, without a best talent formal process that links experiences with expected developmental outcomes, there is no oversight in terms of what is being developed These factors are the primary and when. The use of informal drivers behind the need for effective succession planning processes also succession planning and leadership wasting time and money in development, but there are terms of potentially developing the potentially many others that could wrong things in the wrong people. be included. Rather than providing Informal often means reactive and an exhaustive list to try to justify the opportunistic. Formal systems business case for development, it require organizational discipline might be more persuasive to to design, implement and sustain. the future of your organization The result can be instrumental in if you did not engage at all in buffering an organization from succession planning and leadership succession surprises, and it can be development. What would be the a source for competitive advantage odds of long-term survival and in other ways (e.g., recruitment, success? The ultimate sin is to do adaptability). nothing; however, there are difficult

Developing Leadership Talent 

Systemic: An overall systems- Tailored: Overly generic leadership leaders learn and develop from wide perspective on leadership development initiatives lose their work experiences rather than development helps to build a sight of the universal importance taking them away from their work to broader leadership capacity and a of individual differences in develop. deeper pipeline of leaders. The focus developmental readiness. People This section has provided a general is not just on those at the top but differ in the extent that they are overview and introduction to includes most or all management ready for developmental “stretch” some of the issues and challenges levels. There is a related tendency assignments that are at the core of associated with succession planning to focus attention on high-potential many of the most effective leadership and leadership development. The employees. This makes sense in development initiatives. When it next section will delve into the area terms of potentially maximizing the comes to succession management, of succession management in more return on investment (ROI) from Jack Welch was probably the best detail before turning attention to developmental efforts. On the other known CEO-champion of tailored leadership development and a final hand, an unintended consequence succession management. His Chief section on general conclusions and is that it allows a significant part Learning Officer at the time (Steve guidelines. of the organization to atrophy. Bill Kerr) claimed that Welch “knows Drath from the Center for Creative intimately” the career paths of Leadership has made the point that more than a thousand employees leadership development efforts in GE and would spend fully one too often are like focusing on the quarter of his time on the GE whitecaps in the ocean and entirely succession planning process known missing the unseen force of the deep as Session C.[10] This level of CEO blue sea.[9] involvement in succession planning is extraordinary and probably Systematic: The most effective unlikely in most other organizations. succession planning and leadership At minimum, however, every development initiatives are managerial employee should have connected across levels into a an individual development plan and coherent whole. There is a roadmap be held accountable for making for development such that the progress on it every year. skills, competencies, attitudes and perspectives that are developed Experientially based: Leadership at one level are built upon at a development is not a discrete event. higher level. By being systematic, Rather, it is a significant part of the development initiative builds ongoing work-related experience. explicit linkages across leadership Research shows that executives levels. Succession planning also find learning from work-related incorporates diagnostic tools experience to be a more powerful and methods for assessing the force for their development as developmental readiness of compared with classroom-based employees for particular experiences. learning.[11] State-of-the-practice development focuses on helping  Developing Leadership Talent

Succession Management, Not Just Planning

“Succession planning cannot take place in a vacuum. It should also be an intensive, comprehensive initiative, much more than a preparation of a list of names that will be tabled if the CEO is hit by a bus. Similarly, succession plans will not increase the productivity growth rate of the firm if they are designed only to allow the internal auditor to tick the box: succession plan in place.”

Paul Cantor, former Chairman, Russell Reynolds Associates Canada[12]

Different succession processes can be placed on a continuum ranging from relatively simplistic and bounded to relatively complex and comprehensive.[13] At the most simplistic end of the continuum, replacement planning denotes a minimal succession approach in which successors (i.e., replacements) are identified at the top two or three managerial levels, but there is little or no development of those successors other than ad-hoc on-the-job experience. The focus is on , with no attention to development issues. Succession planning falls near the middle of this continuum of succession processes. It is more systematic and extensive than replacement planning because it is linked with intentional development initiatives targeted at successors; however, it is mainly for the top two or three management levels, like replacement planning. Succession management anchors the most comprehensive end of this continuum in that it identifies successors (replacement planning), develops them (succession planning) and is also directed at all managerial levels. The overarching goal of succession management is to have a pool or pipeline of prepared leaders—and not just a list of prospective candidates—across all organizational levels to fill vacancies in key positions when needed.

Continuum of Succession Processes

Replacement Planning Succession Planning Succession Management

Identify successors Identify successors identify successors Develop successors Develop successors Include all organization levels

BASIC COMPREHENSIVE

Developing Leadership Talent 

A well-designed and rigorously Although it might be tempting implemented to jump right into a succession process is “mission critical” to management process, there are achieving organizational goals.[14] key questions that first need to Consider from the Bureau be answered.[15] Without some of Labor (www.bls.gov) shared understanding of what indicating that 32 million workers these questions mean to your are over the age of 50 and that organization, there is little sense in fully 40 percent of workers will be trying to implement a succession retirement-eligible in the next five management system. Informed years in the fields of health care, answers to these questions form the manufacturing and government foundation of the organizational services. Couple these data with context in which the succession estimates that approximately management system resides. If two-thirds of external senior the answers to these questions management hires fail within the are ambiguous, contentious or first 18 months on the job. Taken otherwise open concerns, then there together, these facts point to an is no internal compass for the system aging and mobile workforce where and it will likely fail. successful performance at higher levels cannot be assumed.

Succession management helps Key Questions Impacting the Design of Your Succession to provide continuity in the Management System leadership pipeline and to develop a deeper capacity for leadership and • What is a key or “corporate-critical” • How desirable are international performance. But to implement an position? assignments for designated integrated and effective succession successors? management process there first • What constitutes a high-potential needs to be an explicit link drawn employee? • What are the respective roles and between what the organization responsibilities of employees and HR • What are the common aspects of values as talent and the core in the process of preparing high- exemplary job performance? strategies of that organization. potential employees and designated After this has been accomplished • How should the organization fill key successors? Continuum of Succession Processes (which is no mean feat), an honest positions? and thorough evaluation of the • How important are individual organization’s talent pool and • What percentage of open positions employee career goals and objectives Replacement Planning Succession Planning Succession Management developmental needs is conducted. should be filled from within the in the succession management plan? organization? Identify successors Identify successors identify successors • How open and transparent should HR be in communicating with Develop successors Develop successors • What percentage of key positions should have at least one identified individuals who are identified as Include all organization levels successor? high-potentials and designated successors? • How should high-potential employees BASIC COMPREHENSIVE be prepared for advancement?  Developing Leadership Talent

Effective Succession Management Systems

This section outlines the approaches of two successful organizations to the succession management process (Dow Chemical and SmithKline Beechum) and also provides an example of a commonly used tool in assessing the talent pool of an organization (see Figure 2). An important point to note about this process is that the evaluation of high-potential employees ultimately is a subjective process based on the expert opinions of those who serve in supervisory roles. It is also often hashed out in discussions among a small group of managers. The quality and the honesty of these discussions are critical for a successful talent identification process. If the conversations about employees’ potential are superficial and vacuous, then the entire succession management process is at risk. A climate of honesty, trust and transparency is an important factor in the system’s ultimate success.

Succession Management Features of the Dow succession Process at Dow Chemical management process: Company • Dow philosophy: Replacement plans and successor lists are Step 1: High-level review of the useful tools, but the real value of talent pipeline by the CEO and his these processes is to focus the direct reports (yearly). organization on developing its Step 2: Review of each business employees to better prepare them function and strategic area focusing for other jobs at Dow. on what new capabilities will be • Dow reaches deep into its needed to deliver this strategy and pipeline from entry-level any new corporate-critical roles that professionals to the director level. will be needed. • Approximately 5 percent of Step 3: Review of top 200 leaders the professional/managerial using the “Nine-Box” performance/ employee population is identified potential grid (see Figure 2). as corporate high-potentials Step 4: Development and and targeted for accelerated discussion of succession plans for development at the Herbert Henry high- and medium-risk corporate- Dow Academy (followed by five- critical roles that exist now and are month action-learning projects), anticipated in the future. external courses or a custom MBA Step 5: Developmental planning for course. this population.

Additional reading: Conger, J. A., & Fulmer, R. M. (2003, December). Developing your leadership pipeline. Harvard Business Review, 81, 56-64.

Source: Steve Robison, Ph.D., Senior HR Leader—, Dow Chemical Company

Developing Leadership Talent 

Figure 2: “Nine-Box” Succession Planning Grid

High Potential/ High Potential/ High Potential/ Low Performance Medium Performance High Performance

Demonstrated high potential Demonstrated high potential Highest potential for senior for advancement but is not and consistently meets leadership position who meeting current performance performance expectations usually always exceeds expectations performance expectations Valued talent who needs Needs coaching and additional challenge, reward, Star talent who should be intervention: Wrong job or recognition or opportunity to targeted for accelerated wrong boss? develop development opportunities

P O Medium Potential/ Medium Potential/ Medium Potential/ T Low Performance Medium Performance High Performance E N Promotion potential one level Promotion potential one Promotion potential one level T or lateral move with greater level or lateral move with or lateral move with greater I challenge but presently greater challenge; presently scope or challenge; always A underperforming meeting but not exceeding meets and usually exceeds L performance expectations expectations

Consider coaching or Keeps things running but Strong contributor who corrective action might need additional could have additional motivation, greater developmental challenges to engagement or additional grow and possibly improve rewards potential

Low Potential/ Low Potential/ Low Potential/ Low Performance Medium Performance High Performance

Has reached career potential Specialized technical talent Specialized technical talent and is not delivering or has reached career or has reached career potential but consistently potential but consistently Counsel or terminate meets performance exceeds performance expectations expectations

Motivate and focus Valuable in developing others; retain and reward

PERFORMANCE 10 Developing Leadership Talent

Leadership Planning Process at Key Learning Points: SmithKline Beecham • Make sure the process is “line owned” and “line driven:” must be Background: SmithKline Beechum (SKB) was engaged and involved from the outset. formed in 1989 through a merger of SmithKline Beckman (Philadelphia, PA) and The Beechum • Start small and before launch. Group (London). Neither firm had very well- • Train managers before the pilot is implemented. developed or consistently implemented human resource development practices. • Recognize that there will be failures from the pilot and learn from them. Objective: Develop a consistent, reliable and standardized leadership planning process in a • Enlist many advocates. post-merger environment. It was believed that such a process also would help to build a unified • Link the plan design to the needs and vision of culture and enhance worker engagement and the CEO and team. retention that had been damaged by the merger. Results: The Leadership Planning Process Plan: The HR team was asked by senior has been fully endorsed and implemented as management in 1993 to develop three leadership the way that SKB identifies and supports the planning initiatives that could be implemented development of its managers. across the entire organization: (a) succession Previous developmental planning was planning process; (b) executive development inconsistent, and succession planning was process; and (c) leadership competency model limited to a small, elite group of executives. (see “Leadership Competencies” box). Although This process has changed to focus on the three separate teams were formed initially, it development needs and potential of a larger became apparent that these were interrelated group of managers within SKB. targets. As a result, all teams agreed to work together as one team with the single goal By 1999, more than 8,500 employees of leadership planning. HR people from all participated in the Leadership and line businesses were involved, including the Developmental Review process and over 230 pharmaceuticals business, over-the-counter group discussions were held. On average, each products business, corporate, Europe and group discussed 35-40 managers, allocating international. In addition, there was an advisory approximately 15 minutes of discussion per board of line managers. person. Group discussions allow SKB to regularly take an inventory of management talent.

Source: Manzi, L., & Abramson, J. (1999). SmithKline Beechum. In D. Giber, L. Carter & M. Goldsmith (Eds.), Linkage Inc.’s best practices in leadership development handbook (pp. 397- 424). Lexington, MA: Linkage Press.

Developing Leadership Talent 11

The 21 SmithKline Beecham Leadership Competencies [16]

SKB Core Value Leadership Competencies

• Think strategically Innovation • Innovate • Champion change • Improve systems and processes Customer • Commit to quality • Focus on customer needs • Lead courageously Integrity • Foster open communication • Act with integrity • Establish plans • Manage execution Performance • Influence others • Drive for results • Foster enthusiasm and teamwork • Reward and celebrate teamwork People • Attract and develop talent • Build relationships • Use sound judgment • Convey information Personal Effectiveness • Adapt and develop oneself • Know the organization and the business Figure 3 distills some of the basic points in this section and provides a general roadmap to managing the succession management process.

Figure 3: The Succession Management Process

PREPARATION PLANNING DEVELOPMENT

Goal: Goal: Goal:

Understand the context Identify positions and talent Prepare and develop talent

Key Questions: Key Steps: Key Processes: How to define key positions? Enlist top management support Assessment How to define high potentials? Identify key positions by function/area challenge What is exemplary performance? Review talent (“Nine-Box” grid) Support How to fill key positions? Develop succession plans by position Make or buy for key positions? Discuss developmental planning Scope of intended succession plan? How to prepare successors? HR’s role and responsibilities? Consider individual career goals? Level of system transparency? 12 Developing Leadership Talent

Although many of the issues some sort of informal (unwritten) other resources to identify the key associated with succession plan and more than half do not positions in an organization and to management apply to small as well as have any succession plan at all.[17] nominate one (or preferably more) large organizations (e.g., identifying For this reason, it is difficult to possible successors. It is potentially key positions, identifying successors), identify best practices in succession trickier to provide the kinds of there are some unique challenges management for SMEs—there developmental experiences needed and opportunities in small- and are too few firms that engage in to prepare potential successors for medium-sized organizations when it a formal succession management more responsible positions. That comes to succession management. processes and those that do are is why bringing in an external not forthcoming in the literature consultant for advice on leadership Succession Management about what is done. Indeed, a recent development might be the best call in Small- and Medium-Sized review of the available literature on for many SMEs. Remember, it is Enterprises (SMEs) the topic urged SMEs to devote an investment in your talent and greater resources and attention to in the future of your organization. The majority of organizations do formal succession planning as a way Scrimping on the talent development not have the size and resources of to promote long-term survival and part of succession management Dow or SmithKline Beechum when prosperity.[18] might save a few dollars in the short- it comes to succession management. term, but it puts the organization at As further evidence of this There are distinct opportunities and risk for long-term failure. challenges associated with succession knowledge gap, a recent review of management in SMEs. Some of the what is known about managing Succession Management in SMEs: opportunities include the following: HR in small organizations was Opportunities and Challenges (a) the smaller number of employees completely silent on the topic of [19] allows for more personalized and succession management. The Opportunities tailored development plans; (b) report did note that program costs there is a greater likelihood of and time spent away from the job - Personalized and tailored designing an integrated initiative are important considerations for employee development plans across levels; and (c) a formal deciding what opportunities to offer succession management system employees in terms of training and - Greater likelihood of an inte- could be a “force multiplier” when it development. The sources for formal grated system that reaches comes to recruitment and retention training and development are also across all levels as compared with the competition. more restricted with SMEs, which is - Formal succession manage- Specific challenges for SMEs include another reason informal practices are ment as a force multiplier for (a) fewer available resources to more likely in small organizations recruitment and retention devote to succession management; than formal practices. (b) less in-house staff with the That does not mean that SMEs expertise to develop and manage an should be complacent with using Challenges integrated succession management informal succession management initiative; and (c) resistance from practices. There are distinct - Fewer resources to devote to family owners to open succession advantages associated with formal succession management lines to non-family members. succession management in terms - Fewer staff with expertise of being able to handle unexpected Research conducted by the Canadian to develop and manage a for- staffing surprises, especially Federation of Independent Business mal succession management regarding sudden turnover in indicated that only 10 percent system of SME owners have a formal key positions. It does not take succession plan, 38 percent have much in the form of expertise or - Resistance from current family owners to potential non-family successors

Developing Leadership Talent 13

Research on Succession • Emphasize diversity in the needs more than three years in Management workplace. advance. The workplace is changing quickly and in unpredictable ways. There is not a lot of scholarly • Include a specific focus on the If this is the case, then there are research on the topic of succession, succession of women candidates. with the exception of CEO important implications for leadership succession (see suggested readings • Update employees on the steps competency models—typically, a at the end of this report). However, the organization plans to use in formal framework endorsed by an recent descriptive research examines the succession planning process. organization that summarizes the important leadership attributes the prevalence of succession There are three noteworthy planning in organizations as well as to be used in selection, training implications from these specific and development. Is it worth HR’s role in the succession planning findings. Those organizations with process. [20] There is good news the investment in developing a formal succession planning are more competency model if there is a good and bad news from these findings. likely than those with informal In terms of prevalence, the good chance that the kinds of knowledge, planning to (1) be more proactive skills and abilities that support those news is that more than half of the in identifying and developing their survey respondents (58 percent) competencies cannot be reliably leadership talent; (2) be more predicted much into the future? indicated that they had some kind of attuned to diversity issues; and (3) a succession plan in place. The bad This is a highly charged issue that have a more transparent succession unfortunately goes beyond the scope news is that this percentage was split planning process. equally (29 percent each) between of this report. Suffice to say that those with a formal and those with Another notable finding from the the HR field is split as to whether an informal succession plan, with survey results is the time frame leadership competency models are smaller organizations indicating for the future skills considered in a worthwhile contribution to the that their processes were more likely succession plans. Of those reporting succession management process in to be informal rather than formal. having either a formal or an informal particular or to the organization as a This is bad news because the report plan in place, 84 percent considered whole more generally. findings also document that in skills that would be needed one year The questions at the core of leader- comparisons across organizations in advance, 76 percent considered ship competency controversy [21] with formal and informal succession skills that would be needed two include: plans, those with formal plans were years in advance, and 62 percent more likely to: considered skills what would be • Can a single set of competencies needed three years in advance. But describe all effective leaders? • Identify employees who could this percentage drops to under half • Does having more of each potentially fill future vacancies in for projecting four (47 percent) and characteristic make a person a leadership positions. five (44 percent) years in advance better leader or is there a point and plummets to 14 percent when • Consider the organization’s of diminishing returns? long-term objectives and goals. the time frame is six years out. • Can organizations accurately • Identify prospective vacancies in Leadership Competencies predict what leader competencies leadership positions. will be needed in the future? A pessimistic interpretation of these • Identify potential succession results would be that organizations • What is the evidence that HR gaps. are taking a relatively short-term systems that are based on • Integrate succession planning orientation in projecting their competencies work effectively? with the organization’s strategic future employee skills needs; planning process. however, it may be that it is just too difficult to project future skills 14

In terms of At present, there are no agreed- upon answers to these important succession questions. HR professionals are Obstacles to Effective encouraged to carefully evaluate the Succession Management potential pros and cons of leadership management, high- Ultimately, an investment in competency models and avoid succession management is an blindly jumping on the competency potential employees investment in individual and bandwagon. organizational learning. But like have both strong As the box “Not All Competencies many things, this is easier said than Are Leadership Competencies” done. There are many potential technical skills as illustrates, there are other factors that can derail a succession competencies in addition to management process. Here is a brief well as the potential leadership competencies. This is list and discussion of some of the an important distinction in terms most likely culprits: of succession management and to develop a • Event-based or episodic thinking: workforce development. Some This one plagues succession knowledge and skills that are gained strong leadership planning as well as leadership through training or experience are development. Both are ongoing more appropriate for addressing competence. processes, yet the conventional the technical challenges that thinking is that they are addressed organizations face. These are the episodically. Succession planning kinds of problems that can be solved typically is conducted only once a by experts or senior authorities in year, and leadership development a given field. On the other hand, is treated as a series of “loosely adaptive challenges are those issues coupled” events or episodes, that come “without easy answers.” usually in the form of programs. The solutions to adaptive challenges Some of the most potent forms of lie not in technical answers but with development are embedded in the the people themselves.[22] Leadership actual work (e.g., action learning, is inherently about people, which job assignments). It is a mistake is why adaptive challenges require to try to completely de-couple the application of highly developed development from work. leaders. It also helps to explain why the most sophisticated technical • No strategy for development: What experts may not make the best is the organization’s philosophy leaders in a given setting. In terms of leadership and development? of succession management, high- These are key concerns in terms potential employees have both of presenting and defining the strong technical skills as well as concepts and principles that the potential to develop a strong will serve as the pillars of the leadership competence. conceptual framework for the initiative.

Developing Leadership Talent 15

• Assuming it is solely a staff a generally good thing; however, personal accountability and function: In many cases, the it is not helpful for long-term follow-up so that learning and HR function has the primary support. It is easy to lose sight development become intentional responsibility for succession of what specifically needs to processes that occur in a management. A common mistake be developed and why. If the continuous and ongoing manner. and typical obstacle to effective target of development activities If there is a personal development implementation is failing to is supposed to be leadership plan in place (and there should engage line management from the competencies, then there should be), keeping to that plan must outset. be a visible and widely agreed be the primary responsibility of upon competency model that is the leader with support from the • Over-embedding the initiative grounded in the organization’s organization. in a single champion: Having a strategic business plan. But champion, especially at top levels, • Lack of fit with organizational there is some risk associated is an important driver for success; culture: Trying to implement with leadership competency however, if the initiative becomes a formal system with a lot of models because they require too heavily associated with any preparation and paperwork in organizations to be able to one person—no matter how an informal culture would likely accurately predict the future. high-ranking—this could lead to be met with resistance, if not follow-through problems if that • Under-emphasizing personal outright hostility. Introducing champion derails or leaves the accountability: The ultimate an informal system into a organization. responsibility for development highly structured and formal rests with the individual leader. organization may result in • Not connecting with strategic Only so much can be done the initiative not being taken business imperatives: Development in any development program seriously. There should be some for development’s sake might be or initiative. There should be degree of fit between succession management formality and the organization’s culture; however, it Not All Competencies Are Implementation Competencies should be noted that a succession Leadership Competencies (How things get done) management system can be used as part of a comprehensive • Flexibility and adaptability organizational change initiative Russell Reynolds Associates, a global to move the culture from formal executive search firm, distinguishes • Communication skills to informal or from informal to between three broad competency • Results orientation formal.[23] sets to better identify and recommend candidates that are most likely to Leadership Competencies meet all three competency areas: (Setting overall direction and enhancing development) Industry-Related Competencies (Industry expertise) • Strategic agility (including vision)

• Industry knowledge • Integrity and trust

• Client focus • Developing subordinates

• Global perspective Source: Cantor (2005). 16 Developing Leadership Talent

• Lack of adequate support for “Improving the Succession ompetencies develop relatively early development: Support in the Management Process” provides in a manager’s career, the leadership form of resources as well a very general assessment of your competencies needed to excel at as positive reinforcement is current succession management higher levels require extra attention absolutely necessary for individual practices. After assessing your as part of an ongoing and systemic development. Without support, organizations’ current system, succession management process. efforts directed at assessment use the recommendations on the and challenge become exercises checklist to make improvements. in futility. As noted previously, Succession planning and succession one of the biggest wastes of management—as compared with development investments replacement planning—involve involves sending individuals for developing employees for more leadership development and then responsible future assignments. not supporting their personal There are many ways of changes in thinking and behaving accomplishing this goal, but one when they return to the job. It is frequently used strategy is leadership elementary: Sending a changed development. This approach is based person back to an unsupportive on the assumption that more senior environment is highly unlikely positions involve greater leadership to accomplish much of anything expectations and responsibilities for except heightened feelings of incumbents. Whereas technical c frustration and discouragement.

Key Recommendations for Succession Management

• Understand the unique context • Engage in detailed of your organization. developmental planning for the targeted successor population. • Recognize that SMEs have special challenges and • Use leadership competency opportunities when it comes to models with caution—the future succession management. is imperfectly predicted.

• Identify key positions and • Avoid the basic obstacles the talent potential for these to an effective succession potentials (“Nine-Box Grid” may management system. be helpful). • Work toward continuous • Establish succession plans for succession management key positions that identify at system improvement. least one and preferably more than one potential successor.

Developing Leadership Talent 17

Improving the Succession Management Process 7. Encouragement of constructive developmental conversations: Having frank, To assess your organization’s current succession comprehensive conversations with one’s boss on management process and determine how much a regular basis. improvement is needed, read each of the following ___Yes ___No statements and check ‘yes’ if it describes your organization’s current practice or ‘no’ if it does not. 8. Managers coached before they give career 1. Simplified process: Limited amount of advance developmental feedback: Is coaching on how preparation and paperwork (too much complexity to provide constructive developmental feedback increases resistance to the system). part of the succession management process?

___Yes ___No ___Yes ___No

2. Decentralized process: Encouragement of 9. Encouragement of individual mentoring for local creativity and ownership beyond a set of high-potential managers and senior-level standard core elements. executives: Are one-on-one mentoring (senior levels) and mentoring networks (junior levels) ___Yes ___No encouraged and supported?

3. Fit with organizational culture: Is the degree ___Yes ___No of system formality consistent with the prevailing culture? 10. Built-in accountability with regard to feedback on whether personal development ___Yes ___No plans are implemented: Are managers held accountable for producing a high-quality 4. Emphasis on learning skills and developmental plan and for acting on it? adaptability: Focusing on the core concept of learning how to learn. ___Yes ___No

___Yes ___No

5. Recognition of on-the-job development: Total the number of ‘yes’ responses you checked. If Identifyng appropriate “stretch assignments” for you checked ‘yes’ 0-3 times, then the system probably accelerating development. needs improvement, 4-6 ‘yes’ answers is good with some improvements in place, and 7-10 is excellent, ___Yes ___No with many effective practices being implemented.

6. variety built into assignments early in the Source: A version of this checklist was published in manager’s career: Developing adaptable Organizational Dynamics, vol. 32, Ayse Karaevli and leaders when they are just starting their careers Douglas T. (Tim) Hall, “Growing leaders for turbulent and not just when they reach their 40s or 50s. times: Is succession planning up to the challenge?” p. 77. Copyright Elsevier (2002). Reprinted with ___Yes ___No permission. 18 Developing Leadership Talent

Leadership Development

“The people we hire, and the focus we put on their development as leaders, are critical to P&G ’s ability to innovate and compete. Nothing I do will have a more enduring impact on P&G’s long-term success than helping to develop other leaders.”

A.G. Lafley, CEO, Proctor & Gamble

Although there are literally hundreds of definitions for the termleadership , there are relatively few that concisely defineleadership development. One such definition that focuses on the development of individual leaders (as opposed to ) is “the expansion of a person’s capacity to be effective in leadership roles and processes.”[24] One way of expanding a person’s leadership capacity includes but is not limited to helping to develop knowledge, skills and abilities that the organization values with regard to leadership.

Interest in leadership development has exploded over the past decade as organizations look for ways to better address increased competitive pressures, respond quickly and flexibly to rapidly changing conditions, and innovate and exploit emerging technologies. It is thought that investments in leadership development pay off in terms of creating a sustained competitive advantage that will propel organizations forward in the 21st century economy.[25] For example, some estimates have placed the market value of General Electric at $20 billion higher than its breakup value, with much of that value attributable to the quality and depth of GE’s leadership capacity.[26]

It should be remembered that leadership development is incomplete as a stand-alone system. The design of a leadership development initiative should be grounded in succession management, anchored in the organization’s strategy and feasible given the organization’s size and resources. Specifically, thewho and what of leadership development are ultimately based in the foundation set by succession management. The leadership development system builds on this information by establishing the how and the when in terms of practices and processes. It is important to keep in mind that the purpose of leadership development is not to create programs. Instead, it should be about designing and implementing practices and processes—developmental systems—that capitalize on work-related experiences to help achieve the organization’s strategy.

Estimates from those who have worked extensively in the field of leadership development indicate that as much as 80 percent of the learning and development of those who eventually move into senior management stems from experience, 10 percent from classroom education and training and the other 10 percent from coaching and mentoring.[27] These estimated percentages

Developing Leadership Talent 19

reinforce the importance of the gap between learning and developmental needs and the way providing meaningful developmental application is minimized in terms of that we each construct our own experiences for developing leaders. both time and distance. learning. The philosophy at Goldman Sachs, however, is more balanced in terms Individual Differences Learning Goal Orientation of making use of all three ways of learning: (1) learning from formal A different challenge to effective It is tough to learn from experience classes; (2) learning from other leadership development is that if attention is focused entirely people (mentoring); and (3) learning there are individual differences on maximizing job performance. on the job (experiential learning). in developmental readiness. Just The issue is not how to replace Regardless of the respective because someone is a certain age performance but how to elevate percentages, the state of the practice or has been in a particular job for learning so that it is as valued as is to emphasize developing leaders in a certain number of years does not performance. Influential work in the the context of ongoing work rather automatically mean that he or she field of motivation has distinguished than taking leaders from their work is ready for a given developmental a performance goal orientation [28] to develop. experience. This is where the from a learning goal orientation. importance of a solid succession With a performance orientation, the management plan comes into play. goal is to gain positive judgments Leadership Development Having a deep understanding of by demonstrating mastery and Challenges someone’s career development avoid negative judgments of one’s Embedding development in to date in conjunction with an competence. With a learning ongoing work is valuable in terms honest appraisal of that person’s orientation, the goal is to increase of enhancing the job relevance of leadership potential and job competence by developing mastery. developmental experiences. The performance through a “Nine-Box” A potential challenge with on- more technical term for this is assessment can provide much needed the-job development is that the transfer of training, and it is one of insight into the present level of focus is entirely on demonstrating the most pressing challenges when developmental readiness for a stretch performance mastery with little conducting classroom training experience. or no attention to learning and and development programs. developing mastery. As a result, the Even with the best-designed Specifically, what can be done so potential learning benefits associated developmental experience, there will that the knowledge, skills and with a developmental experience are be individual differences in learning. abilities developed through training reduced, which negatively affects This pertains to differences both are applied back on the job? long-term return on investment. in the amount and in the types of This is a particular problem with It is also unrealistic to expect that learning. Two people participating leadership development because learning will be valued more than in the identical 360-degree feedback sending a changed person back to performance because that has experience are likely to take away an unchanged system often is an career-limiting implications in terms different things from the experience. exercise in futility. Without support of lower “Nine-Box” performance For example, one person might back on the job for the personal evaluations. One way to overcome come away with a greater sense changes made as a part of a training this is to coach individuals on how of self-awareness in terms of the and development program, it is to become more intentional about impact of his or her behavior on unlikely that such changes will stick. their learning through disciplined subordinates whereas another person But when the changes come about self-reflection, journaling and learns to provide more constructive from on-the-job developmental proactive feedback-seeking behavior. feedback to his or her peers. This experiences, the transfer is more is largely inevitable because of likely to be successful because individual differences in terms of 20 Developing Leadership Talent

Evaluating the Impact of coaching provides an average be used primarily to help ensure Leadership Development return of about six times the cost of the alignment of training and [30] The holy grail of sorts in leadership coaching. Unfortunately, more development with business needs development is demonstrating the rigorous attempts at estimating rather than trying to estimate the impact and value-added to the the economic impact of training direct effect of development through organization in the form of return and development in a Fortune 500 an ROI study. There appears to be on investment. Different kinds pharmaceutical company indicated greater acceptance of the value of or levels of evaluation criteria a negative ROI for executive employee development such that it can be used (see “Criteria for training on motivating subordinates, does not require ROI justification, Evaluating Leadership Development leadership skills training and but it does require greater alignment [31] Initiatives”), but the ultimate teambuilding. with strategy and business goals to be effective. criterion is to show that leadership Besides performance, it is advisable development interventions positively to think of other potential criteria affect the organization’s bottom line of interest, such as retention. The Conceptual Framework (also called the results criterion). At bottom line (pun intended) is that for Development least one prominent person in field there are numerous possible ways Before taking on the task of of leadership development—Steve to evaluate leadership development designing or adopting the Kerr of Goldman Sachs—believes initiatives, and reviewing them all experiences that will serve as the that trying to directly document is beyond the scope of this report; core of a leadership development cost savings or productivity however, there are recommended initiative, it is worthwhile to enhancements is “silly” because sources available to serve as sound reflect on what makes experiences there are so many other factors that professional guides.[32] And to especially developmental. Because can affect those numbers. For this be able to estimate the impact experiences are not all equally reason, Kerr prefers to focus on the of an intervention, evaluation developmental, a relevant question evaluation criteria of reactions and research must be conducted and is what distinguishes those that transfer. ROI or results may not be designed into the initiative from the are potent forces for leadership important at Goldman Sachs, but beginning, which is often resisted for development from those that seem the rest of us probably better find a multitude of reasons, including the to have little impact. Doing so can ways to demonstrate value-added to additional expense and the circular help to identify an overall conceptual the bottom line. logic that a program would need framework for shaping development. to have demonstrated value before If it is not possible to run true One approach to this issue is the experiments (and it rarely is in being adopted so there would be no reason to evaluate it.[33] ACS model proposed by researchers organizations), then the evaluation at the Center for Creative methodology becomes less rigorous One final thought about leadership Leadership (see Figure 4 on page and more subjective. At an entirely development evaluation and 22).[34] The philosophy underlying subjective level, one approach is estimating ROI: One of the future this model is that any experience to ask key stakeholders to describe outlooks on learning from a recent can be made more developmental the changes in the organization think tank sponsored by Chief to the extent that it incorporates since implementing the leadership Learning Officer Magazine predicted or enhances aspects of assessment, development initiative and then that alignment of learning will challenge and support (ACS). estimating dollar value of those replace ROI as the biggest challenge changes and the degree that the facing HR professionals. That is, [29] initiative affected those figures. the greater analytic capability found Using a similar technique, it has in many organizations today will been estimated that executive

Developing Leadership Talent 21

Criteria for Evaluating Leadership Development Initiatives Measurement Approaches Criteria Definition (Examples) How participants liked or felt about the experience • Post-experience questionnaire of (affect); or participants’ perception of the usefulness emotional affect (“smile sheet”) Reactions of the experience to subsequent performance (utility • Post-experience questionnaire of judgments). perceived practical value The level of knowledge compared to before the • Knowledge tests experience; how much knowledge is retained • Mental models (e.g., understanding of Learning over time; behavioral changes as a result of the a domain) development experience. • Skill demonstration The extent to which what was learned in the • Ratings of behavior (e.g., 360-degree Transfer developmental experience is applied back on the ratings) job. • Self-report • Productivity gains Any criteria in which unit or organizational impact is • Customer satisfaction Results assessed. • Employee morale • Profitability

• Assessment refers to a diagnosis of uncomfortable. It is through this report, sending a changed the current state of the individual taking on a developmental person into an unsupportive or organization in terms of challenge that the limits of interpersonal environment is one leadership capacity. These data how things are normally done way that organizations waste help to clarify what needs to be become apparent. Challenges their resource investments in learned, improved or changed. are motivating in terms of the development. The data can come from oneself desire to master a new skill or (e.g., self-reflection, scores on way of thinking. Challenges personality inventories) or from also offer the opportunity for others (e.g., feedback, customer experimentation and exposure to evaluations). Good assessment new perspectives. data also provides the motivation • Support in the form of to close the gap between the positive reinforcement from current and an ideal future state. co-workers, bosses and the If no gap exists, this assessment broader environment helps data can still be helpful in terms to build self-confidence and of enhancing self-confidence. master the challenge at hand. • Challenge occurs when current Developmental challenges capabilities are tested. More are often difficult physically, challenging experiences are those psychologically and emotionally. that require some stretch out of Without substantial support, it comfortable and habitual ways of is hard to bring about lasting thinking and acting. It involves changes at an individual, some willingness for risk-taking group or organizational level. and feeling a little (or a lot) As noted in several places in 22 Developing Leadership Talent

Figure 4: Model of Leadership Development

Assessment Challenge Support

Developmental Experiences

Organizational Leadership Context Development

Ability and Motivation to Learn

Source: Adapted from Van Velsor & McCauley (2004), p. 4.

Permission to reprint granted by the Center for Creative Leadership and adapted from The Center for Creative Leadership Handbook of Leadership Development (2nd ed.) published by Jossey-Bass / a Wiley imprint ©2004.

The most powerful developmental The relationships between carefully consider their own particular experiences are ones that include developmental experiences, the organizational context with regard to a variety of assessment, challenge ability and motivation to learn, and the fit and feasibility of a particular and support mechanisms. The leadership development all take place practice. developmental process is also one in an organizational context. Aspects The next section elaborates on that shapes and is shaped by the of the organization’s context, such as some of the more commonly used ability and motivation to learn. its size, mission, strategy and culture, developmental practices in leadership Developmental experiences are influence the leadership development development. thought to enhance both of these process. This influence extends to aspects of learning, but these the overarching focus, the degree components of learning also influence of integration with other processes, the quality of the developmental how systemic it is and ultimately experience. As an example, someone who is responsible for the system. with little ability or motivation to No two organizational contexts are learn will get comparatively less from identical, and therefore, no two a developmental experience than leadership development systems someone who is able (developmentally are the same. Instead of blindly ready) and motivated. But rich adopting “best practices” showcased experiences will also enhance learning in other organizations, it would be ability and motivation. advisable for HR professionals to first

Developing Leadership Talent 23

Developmental Practices

“If we are going to go anywhere, we’ve got to have talent. And I’m going to put my money in talent.”

Ray Kroc, founder, McDonald’s

A major way in which developmental practices differ is in terms of how embedded each practice is in the ongoing work context. Classroom learning and 360-degree feedback tend to be removed from the everyday work experience whereas others, such as job assignments and action learning, are highly embedded practices. But any practice can vary in terms of job embeddedness. For example, feedback and coaching can be done off-site and away from the job or take place in the moment by a peer, a boss or a mentor.

There are four general types of leadership development practices: education, assessment, coaching and experiential learning. It is generally better to include a variety of developmental practices because that variety can help to enhance learning motivation and also build a broader skills base. Decisions must then be made regarding whether a leadership development initiative will tap deeply into a particular type of practice, sample across all types but more superficially or try to maximize both the depth and the breadth of developmental practices.

What follows is a brief review of the main types of leadership practices. Additional readings review these developmental practices in more detail[35] with case study examples.[36] Sample practices from each of the four categories are reviewed, followed by a brief case study from a medium-sized nonprofit organization that has been involved in a substantial and meaningful leadership development initiative.

Education Classroom programs continue to be the backbone of most leadership development initiatives. Formal classroom programs tend to run for three to five days and generally take place in an off-site location. Open enrollment programs are targeted to qualified participants across any number of organizations, whereas custom programs are designed to address the specific leadership challenges of a client organization. There are myriad private vendors of open-enrollment and custom leadership development programs, including nonprofit organizations, consulting firms and executive education branches of most major business schools. A particular strength of classroom programs is the standardization of content that is delivered to participants. A particular limitation is the of transfer of development from an off-site classroom back to the job. Classroom programs also tend to foster episodic or event-based thinking about development (i.e., it occurs only during a special program). 24 Developing Leadership Talent

Corporate universities are at the becoming increasingly shorter, and Besides some of the same limitations extreme end of the education therefore, the need for continuous associated with transfer as noted spectrum. A corporate university learning on the part of employees with other classroom programs, is defined as a centralized in- is more acute. Although they corporate universities run the risk of house training and education take different forms and styles of falling prey to the “General Motors facility to better align training education, the prototype of the Syndrome” that perpetuates the and development with business corporate university is GE’s Welch status quo and leads to corporate strategies.[37] Some corporate Leadership Center (Crotonville, inbreeding.[39] GM was heavily universities are only for in-house NY). In addition to offering a full criticized years ago for using training and development whereas complement of courses as part of executives as leadership instructors others also offer open-enrollment their catalogs of offerings, many who were teaching outdated and custom developmental corporate universities—including worldviews and developing future programs. Corporate universities Crotonville—enlist current and leaders in ways that worked in the represent a considerable investment former managers as the faculty past but were no longer relevant for in the learning and development instructors, sometimes even the success in the future. GM learned an of employees but also signal a CEO. The advantage of such invaluable lesson from its previous commitment to the value of an approach is that the course mistakes and now is responsible for investing in human capital. Despite offerings can be tightly tailored one of the most exemplary corporate their expense, corporate universities to organizational needs in terms universities serving Saturn Motors, are the fastest growing segment of of succession management and a wholly owned GM subsidiary. the adult education market.[38] One leadership development. Also, the Additional background on Saturn’s of the reasons for this growth is that manager-instructors bring a lot of corporate university success story the shelf life of knowledge is credibility to their teaching. can be found in a “best practice” review of leadership development practices.[40]

Because of the fast-growing use of Reported Benefits of Corporate corporate universities, a few of the Universities for SMEs various approaches are presented in the chart Corporate Universities. This illustrates the variety of • Improved recruitment: • Better employee organizations that have developed Recruits are attracted to advancement: Universities in-house universities (some well- ongoing opportunities for build skills that accelerate known, others less so) as well as growth and development employee advancement. the diversity in learning approaches offered by in-house universities. • Wider talent pool: adopted by the represented • Increased revenues: There Universities help to enhance organizations. Corporate universities are estimates of positive ROI the internal labor pool for are not just for big organizations. associated with some of the higher-level positions, reducing SMEs are also developing their training initiatives housed in the the dependency on the external own “universities” to enhance university. labor market. ongoing skills training and leadership development.[41] For those HR • Reduced turnover: One Source: Fenn (1999). professionals potentially interested in estimate in a small call center championing a corporate university was that average monthly initiative in their own organizations turnover dropped from 12% (either large or small), a good place to 6% since a university was to start is the Corporate University started. Xchange (www.corpu.com) or a comprehensive book on the topic.[42]

Developing Leadership Talent 25

Corporate Universities the opportunity to “experience the some e-learning for preparation business behind the magic” of coursework. Plans are in the works Motorola University: One of Disney’s core business strengths: for developing virtual learning the first learning organizations Leadership Development, Quality communities where students and to implement virtual reality in Service, Customer Loyalty, their teams engage in a business manufacturing training. It now Organizational Creativity and after completing their also offers for-profit learning and Teambuilding. coursework. The teams will run certification services (e.g., Six a virtual business and compete www.disneyinstitute.com/ Sigma) to outside organizations against other graduates. The faculty and is an independent subsidiary of is about equally split between GE Motorola. executives, GE project managers, Hamburger University— university faculty and external www.motorola.com/ McDonald’s Center of Training technical experts. Early career motorolauniversity.jsp Excellence: McDonald’s “global leadership training courses are open center of excellence” was founded to everyone in the organization; in 1961 in the basement of its first however, many programs can be Boeing Leadership Center: The restaurant with an initial graduating taken only by executives who have emphasis is on executive learning class of 14. Today, more than 5,000 been nominated by the CEO of their in which Boeing leaders are students attend Hamburger U each business. The top two courses are brought together from all across year. The mission of the University available only with the approval of the enterprise. The Center works in is to be the best talent developer GE’s current chairman and CEO. partnership with the business units of people with the most committed to provide leadership development individuals to Quality, Service, www.ge.com/en/company/news/ opportunities that translate to on- Cleanliness and Value in the world. expanded_training.htm the-job successes. Managers are The curriculum is aligned with the required to take core leadership specific career paths of McDonald’s courses at the center at specific employees, including development Schwan’s University: The Schwan transition points in their careers: paths for crew, restaurant managers, Food Group is one of the largest when they receive their first mid-managers and executives. providers of branded frozen foods managerial assignments, become in the world, with annual of www.mcdonalds.com/corp/career/ managers of managers, prepare around $3.5 billion and more than hamburger_university.html for executive responsibilities and 24,000 employees worldwide. The assume a position with global University was founded in 2001 leadership responsibilities. and offers programs internally and John F. Welch Leadership externally on topics that include www.boeing.com/companyoffices/ Center: This “granddaddy” of leadership development, individual aboutus/leadershipcenter/index.html corporate universities was opened employee development, interviewing as the Management Development skills training, sales training, call Institute at Crotonville by General center training and computer skills Disney Institute: The Institute Electric in 1956. The Institute was training. The University emphasizes is based on the vision and ideals renamed recently as the John F. its ability to provide custom training of Walt Disney and claims to be a Welch Leadership Center after and development solutions to recognized leader in experiential its former chairman and CEO. It meet specific business needs for training, leadership development, hosts several thousand participants organizations of all sizes. benchmarking and cultural change a year, including important GE for business professionals across customers and partners to top www.schwansuniversity.com the globe. It offers participants GE executives. Most of the training is classroom-based, with 26 Developing Leadership Talent

Assessment confusion if they do not converge Coaching Personality inventories are paper- across rating sources. For this Executive coaching is valuable and-pencil or Web-based assessment reason, multi-source ratings are most in helping leaders make sense of instruments. They are relatively effective when linked with executive their assessment data, putting easy to use and can be effective in coaching. together an actionable development building individual self-awareness by Assessment centers offer a plan, implementing the plan and providing participants with insight comprehensive method for assessing providing support and follow-up into their personal tendencies and an individual’s leadership potential. assessment of behavioral change. values. They can also be used in Traditionally, assessment centers The Individual Coaching for helping participants appreciate have been used for selecting Effectiveness (ICE) model for individual differences in others and managers for middle- and upper- middle- and higher-level leaders understand why other people may level jobs by assessing their skills consists of three phases: (1) act the way they do. Personality through different assessment diagnosis (one or two days of inventories tend to be popular with exercises that measure performance assessment and feedback); (2) participants (i.e., elicit positive across a number of dimensions. coaching (one day per month for reactions) because people generally Developmental assessment centers six consecutive months); and (3) enjoy learning about themselves. are used exclusively for employee maintenance/support (periodic ® The Meyers-Briggs Type Indicator development, with a heavy emphasis contacts and review sessions to help [46] is an example of an assessment on assessment with feedback. maintain the personal changes). instrument that is commonly used in Specifically, it is a collection of An important factor to consider leadership development workshops workplace simulation exercises that with coaching is the training and as a way to introduce participants to provide individuals with practice, experience of the particular coach. different personality types. feedback and coaching on a set of At present, there are no licensing requirements to call oneself an Multi-source ratings/360-degree behavioral dimensions that (a) can executive coach, and as a result, feedback is also a very popular be developed and (b) are considered there is considerable variability in the development practice. It involves to be critical to professional [44] background and skills of those in the the systematic measurement of success. Their use is becoming coaching business. Caveat emptor! the perceptions of an individual’s increasingly popular. Survey leadership performance from an results indicate that developmental Mentoring is considered a formal entire circle of relevant viewpoints, planning was reported as a popular or informal process in which including self, subordinates, peers, reason for using an assessment a more senior person takes a and even external center (39 percent of responses), vested interest in the personal stakeholders such as customers following selection (50 percent) and of [45] and suppliers. Supposedly, such a and promotion (48 percent). a more junior person, usually a comprehensive assessment from Advantages of developmental professional colleague. The research various role perspectives can provide assessment centers include that they on mentoring is voluminous: more an accurate picture of the impact of are thorough and comprehensive than 500 published articles in a leader’s behavior on others. The and link the important components scholarly and popular-press outlets gap between self ratings and others’ of assessment, challenge and on the topic appeared in a recent ratings can be used to estimate support. On the downside, they are 10-year period.[47] Of particular individual self-awareness, which has expensive and time-consuming to interest is the finding that informal been shown to be positively related design and implement. There is no mentoring programs tend to be to managerial performance.[43] A reliable data to suggest that they are more effective and receive more potential weakness of this practice is more effective than feedback and favorable responses than formal that the resulting ratings can lead to coaching on their own. programs. There also is recent

27

interest in the issue of “marginal prepared should someone be for a mentoring” that recognizes that stretch assignment; and (b) what is There are two not all mentoring experiences are the right assignment for this leader positive or beneficial.[48] It is an at this time? It requires an intimate fundamental unfortunate reality that few leaders knowledge of the career goals, career get any training on how to be paths and developmental readiness questions in using effective mentors even when there of those leaders. is a formal mentoring program in job assignments Action-learning projects constitute place. Other cautions with regard an approach that is based on the to mentoring include that it is very for leader assumption from adult learning time-intensive for both parties theory that people learn most and that there may be insufficient development: effectively when working on numbers of qualified mentors for organizational problems in real those in very junior positions. This (a) how prepared time.[50] Action learning typically is why some have advised using takes place in project teams mentoring only in targeted situations composed of people from diverse should someone involving high-potential managers functions and locations working and senior-level executives. In more together for six to 12 months on an be for a stretch large-scale applications with junior issue considered to be strategically employees, it may be more realistic important to the organization. What assignment; and to set up mentoring networks, makes or breaks action-learning in in which employees are assisted terms of development is the degree (b) what is the right in identifying existing helpful that ongoing learning is valued as relationships and then trained in much as performing well. External assignment for this how to better use these relationships coaches are often used to help for their development.[49] facilitate team self-reflections and to leader at this time? enhance learning and development. Experiential Learning An example of a successful action- Job assignments have long been learning initiative for the purpose of favored as a leadership development system-wide leadership development practice, especially those assignments in a nonprofit organization is that “stretch” the thinking or other described in “Catholic Healthcare capabilities of the target leader. Partners Leadership Academy.” This makes sense in that it is widely believed that leaders view their most potent developmental activities to be experiential based, especially on-the- job experiences. Putting developing leaders into stretch job assignments is a valuable developmental tool; however, you do not want to put people in over their heads too much. There are two fundamental questions in using job assignments for leader development: (a) how 28 Developing Leadership Talent

Catholic Healthcare Partners Leadership Academy Outcomes:

Background: Catholic Healthcare Partners (CHP) Individual Participants is a mission-driven, not-for-profit health system. • Development of a deeper connection and CHP operates acute care hospitals, long-term care commitment to the CHP mission and values. facilities, housing sites for the elderly, home health agencies, hospice programs, wellness centers and • Enhanced commitment to the development of other health care organizations that meet the health people who report to them. care needs of people in Indiana, Kentucky, Ohio, • Greater self-awareness. Pennsylvania, Tennessee and nearby states. • Improvement in setting and achieving goals. Objectives: • Better effectiveness in working across • Identify a pool of high-potential executives organizational boundaries. with a capacity for greater responsibility in the organization. Organization

• Build a pipeline of leaders committed to carrying • Created cross-regional and cross-functional on the organization’s mission and values. networks, resulting in a deeper understanding of CHP as an interrelated system. • Develop a greater sense of “us” in executives across different geographic regions. • Developed networks for sharing ideas and best practices. Academy Activities: • Action-learning projects advanced 15 • Multiple classroom sessions focusing on key initiatives in CHP, including a more customized individual 360-degree assessment comprehensive focus on diversity in the and development based on the identified workplace and better partnerships with other leadership factors of: health care organizations. - Passion for mission and values.

- servant leadership orientation.

- Ability to handle complex mental processes. Additional reading: - Bias for action. O’Connor, P. M. G., & Day, D. V. (2007). Shifting the emphasis of leadership development: From - Ability to develop others. “me” to “all of us”. In J. A. Conger & R. E. Riggio (Eds.), The practice of leadership: Developing • Team-based action-learning projects tied to the next generation of leaders (pp. 64-86). San strategic imperatives of CHP. Francisco, CA: Jossey-Bass. • Individual and team coaching. Source: Jon C. Abeles, Ed.D., Senior Vice • Evaluation of individual progress, the influence on President, Talent Management and Diversity, CHP and the role of higher-level support in the Catholic Healthcare Partners. development and transfer of learning and action.

Developing Leadership Talent 29

Research published by Linkage, experiential practices. Does that noted previously, the goal should Inc. indicates that across eight major mean that action learning and job not be to choose those practices that manufacturing and pharmaceutical rotations must be included for a have worked in other organizations firms, the most developmentally successful leadership development but rather to choose those that can potent component of leadership initiative? Not at all. Small- and best serve your purpose. Disciplined development initiatives is action medium-sized organizations may implementation and follow-through learning.[51] Other identified not have the resources in the form are more important factors in the components are listed in the figure of staff to engage in action learning success of the initiative than the below in order from most to least or the depth of talent to be able to particular practices that are adopted. meaningful. send employees on cross-functional or global job rotations. Of the four general types of developmental practices, education The bottom line is that any and experiential learning were leadership development initiative represented most often on this must be a logical extension of list, with assessment and coaching succession planning, based on the being less represented. Nonetheless, organization’s strategy, and should 360-degree feedback (assessment) be feasible given the organization’s was rated as the third most size and resources. There are a developmentally potent activity multitude of possible developmental behind two different forms of practices that can be adopted. As

INITIATIVE TYPE OF DEVELOPMENTAL PRACTICE

Action learning Experiential learning Cross-functional job rotations Experiential learning 360-degree feedback Assessment Exposure to senior executives Education Most meaningful External coaching Coaching Global job rotations Experiential learning Exposure to strategic agenda Education Mentoring Coaching Internal case studies Education Executive MBA Education Accelerated promotion Experiential learning Professional conferences Education Least meaningful 30 Developing Leadership Talent

Key Recommendations for Leadership Development

• The overarching goal of leadership development • Individual ability and motivation to learn is to enhance the capacity for individuals to be influence development. Recognize and enhance effective in leadership roles and processes. those aspects of ability and motivation to maximize the effectiveness of leadership • Leadership development is grounded in development. succession management, anchored in the organization’s strategy and designed to fit the • Choose those developmental practices that organizational context. best fit with the organizational context rather than simply adopting what has been successful • There are basic challenges associated with elsewhere, especially if the contexts are any leadership development system regarding strikingly different. individual differences, a strong performance goal orientation and demonstrating value- • One important aspect of context is added. organizational size. Small- and medium- sized enterprises generally do not have the • Any experience can be made more resources needed to design and deliver developmental by adding greater levels of their own in-house leadership development assessment, challenge and support. initiatives. For this reason, taking advantage of open enrollment programs and development programs offered through corporate universities may be more sensible for meeting the leadership development needs of SMEs.

Developing Leadership Talent 31

Conclusion

“The ability to learn faster than your competitors may be the only sustainable competitive advantage in the future.”

Arie De Geus, former Head of Planning, RoyalDutch Shell

An integrated succession management program that links succession planning with leadership development can be a source of competitive advantage for organizations. Such a system can help buffer organizations in turbulent times of great uncertainty when it seems like there is a nasty surprise at every turn. Effective succession management helps to build a deep capacity for leadership. Not only is there leadership bench strength and a full leadership pipeline, there also is a highly developed workforce that is adaptable and attuned to the challenges and opportunities that are presented in their work.

Succession management can also aid in the recruitment and retention of the talent that is needed to be competitive in the global economy. Most employees today want more from their work than a paycheck. The opportunity to grow and develop as part of one’s work is a factor that can attract and retain talent. A survey of 242 city employees polled by recruitment consultants Robert Half indicated that of those actively looking for a new job, over half (52 percent) cited better career development potential as the main reason. In comparison, only 16 percent said that better pay was their main job search motivation.[52]

Having a deep capacity for leadership can be a source of competitive advantage in terms of helping an organization achieve its strategic goals and realize its mission. This report addressed aspects of succession management, including succession and development planning as well as examples of specific leadership development practices that can be tailored for your own particular organization. It is important to reiterate that there is no one best way to plan for change or to develop a workforce. Those decisions need to be made in the context of an organization’s strategy, mission and culture. There is no guarantee that what works in a large multinational organization would also work successfully in a regionally based small- or medium-sized enterprise. Investments in all phases of the talent management process must be made with a careful and detailed understanding of the specific organizational context. Foremost of these concerns is that it must be linked to the organization’s overall strategy, otherwise there is little chance of it being supported or sustained.

Succession management and leadership development are sound investments in the organization’s future. The resources provided in this report in the form of research, guidelines, examples and the annotated bibliography can serve as a beginning point for thinking about how your organization can best invest in its future. A deep capacity for leadership can be a source of competitive advantage and can help an organization achieve its strategic goals and realize its mission.

Developing Leadership Talent 33

References

1. rothwell, W. J. (2005). Effective succession planning: Ensuring leadership continuity and building talent from within (3rd ed.). New York: American Management Association.

2. Hirsh, W. (2000). Succession planning demystified. Brighton, UK: Institute for Studies.

3. van Velsor, E., & McCauley, C. D. (2004). Our view of leadership development. In C. D. McCauley and E. Van Velsor (Eds.), The Center for Creative Leadership handbook of leadership development (pp. 1-22, 2nd ed.). San Francisco: Jossey-Bass.

4. berke, D. (2005). Succession planning and management: A guide to organizational systems and practices. Greensboro, NC: Center for Creative Leadership.

5. sanders, P. (2007, February 14). Once and again: After son’s death a casino mogul returns to helm. The Wall Street Journal, 16-17.

6. lewis, R. E., & Heckman, R. J. (2006). Talent management: A critical review. Human Resource Management Review, 16, 139-154.

7. lawler III, E. E., & Worley, C. G. (2006). Built to change: How to achieve sustained organizational effectiveness. San Francisco, CA: Jossey-Bass.

8. weick, K. E. (1993). The collapse of sensemaking in organizations: The Mann Gulch disaster. Administrative Science Quarterly, 38, 628-652.

9. drath, W. (2001). The deep blue sea: Rethinking the source of leadership. San Francisco, CA: Jossey-Bass.

10. Frost, P. J. (1997). Bridging academia and business: A conversation with Steve Kerr. Organization Science, 8, 332-347.

11. McCall, M. W., Jr., Lombardo, M. M., & Morrison, A. M. (1988). The lessons of experience: How successful executives develop on the job. Lexington, MA: Lexington Books.

12. Cantor, P. (2005, January/February). Succession planning: Often requested, rarely delivered. Ivey Business Journal, 1-10.

13. Berke, D. (2005). Succession planning and management: A guide to organizational systems and practices. Greensboro, NC: Center for Creative Leadership.

14. Cunningham, M. R., & Walker, M. D. (2006, June). Succession planning is mission critical to achieving organizational goals. Pawcatuck, CT: Pearson Performance Solutions.

15. Rothwell, W. J. (2005). Effective succession planning: Ensuring leadership continuity and building talent from within (3rd ed.). New York: American Management Association. 34 Developing Leadership Talent

16. Manzi, L., & Abramson, J. (1999). SmithKline 28. Dweck, C. S. (1986). Motivational processes affecting Beechum. In D. Giber, L. Carter & M. Goldsmith learning. American Psychologist, 41, 1040-1048. (Eds.), Linkage Inc.’s best practices in leadership 29. Development Dimensions International (2007). development handbook (pp. 397-424). Lexington, MA: Research results: Leadership development. Linkage Press. Retrieved from www.ddiworld.com/pdf/ddi_ 17. Ward, S. (2007). Succession planning. Retrieved from leadershipdevelopmentroi_rr.pdf. http://sbinfocanada.about.com/od/businessplanning/ 30. Fisher, A. (2001, February 19). Executive coaching— g/successplanning.htm. with returns a CFO could . Fortune, 143, 250. 18. Ip, B., & Jacobs, G. (2006). Business succession 31. Morrow, C. C., Jarrett, M. Q., & Rupinski, M. T. (1997). planning: A review of the evidence. Journal of Small An investigation of the effect and economic utility of Business and Enterprise Development, 13, 326-350. corporate-wide training. Personnel Psychology, 50, 19. Cardon, M. S., & Stevens, C. E. (2004). Managing 91-119. human resources in small organizations: What do we 32. Hannum, K. M., Martineau, J. W., & Reinelt, C. (Eds.) know? Human Resource Management Review, 14, (2007). The handbook of leadership development 295-323. evaluation. San Francisco, CA: Jossey-Bass. 20. Fegley, S. (2006). SHRM 2006 succession planning 33. Day, D. V. (2000). Leadership development: A review survey report. Alexandria, VA: Society for Human in context. Leadership Quarterly, 11, 581-613. Resource Management. 34. Van Velsor, E., & McCauley, C. D. (2004). Our view 21. Hollenbeck, G. P., McCall, M. W., Jr., & Silzer, R. F. of leadership development. In C. D. McCauley and E. (2006). Leadership competency models. Leadership Van Velsor (Eds.), The Center for Creative Leadership Quarterly, 17, 398-413. handbook of leadership development (pp. 1-22, 2nd 22. Heifetz, R. (1994). Leadership without easy answers. ed.). San Francisco: Jossey-Bass. Cambridge, MA: Harvard University. 35. Weiss, D. S., & Molinaro, V. (2005). The leadership 23. Karaveli, A., & Hall, D. T. (2003). Growing leaders gap: Building leadership capacity for competitive for turbulent times: Is succession planning up to the advantage. New York: John Wiley & Sons. challenge? Organizational Dynamics, 32, 62-79. 36. Giber, D., Carter, L., & Goldsmith, M. (Eds.). 24. Van Velsor, E., & McCauley, C. D. (2004). Our view (1999). Linkage, Inc.’s best practices in leadership of leadership development. In C. D. McCauley and E. development handbook. Lexington, MA: Linkage Van Velsor (Eds.), The Center for Creative Leadership Press. See note 27. handbook of leadership development (pp. 1-22, 2nd 37. Meister, J. C. (1998, November). Ten steps to creating ed.). San Francisco: Jossey-Bass. a corporate university. Training & Development, 52, 25. Weiss, D. S., & Molinaro, V. (2005). The leadership 38-43. gap: Building leadership capacity for competitive 38. Meister, J. C. (1998, November). Ten steps advantage. New York: John Wiley & Sons. to creating a corporate university. Training & 26. Ulrich, D., Smallwood, N., & Zenger, J. (2000, Winter). Development, 52, 38-43. Building your leadership brand. Leader to Leader, 15, 39. Conger, J. A., & Benjamin, B. (1999). Building 40-46. leaders: How successful companies develop the next 27. Vicere, A. A., & Fulmer, R. M. (1998). Leadership by generation. San Francisco: Jossey-Bass. design. Boston, MA: Harvard Business School.

Developing Leadership Talent 35

40. Fulmer, R. M., & Goldsmith, M. (2001). The leadership 51. Giber, D., Carter, L., & Goldsmith, M. (Eds.). investment: How the world’s best organizations gain (1999). Linkage, Inc.’s best practices in leadership strategic advantage through leadership development. development handbook. Lexington, MA: Linkage New York: American Management Association. Press.

41. Fenn, D. (1999, February). Corporate universities for 52. Fuller, G. (2006, September 13). Lack of career small companies. Inc., 21, 95-96. development opportunities keeps city workers on the lookout for new jobs. Personneltoday.com. 42. Meister, J. C. (1998). Corporate universities: Lessons in building a world-class work force (2nd ed.). New York: McGraw-Hill.

43. Church, A. H. (1997). Managerial self-awareness in high performing individuals and organizations. Journal of Applied Psychology, 82, 281-292.

44. Thornton, G. C., III, & Rupp, D. E. (2005). Assessment centers in human resource management: Strategies for , diagnosis, and development. Mahwah, NJ: Erlbaum.

45. Spychalski, A. C., Quiñones, M. A., Gaugler, B. B., & Pohley, K. (1997). A survey of assessment center practices in organizations in the United States. Personnel Psychology, 50, 71-90.

46. Peterson, D. B. (1996). Executive coaching at work: The art of one-on-one change. Consulting Psychology Journal: Practice and Research, 48, 78-86.

47. allen, T. D., Eby, L. T., Poteet, M. L., Lentz, E., & Lima, L. (2004). Career benefits associated with mentoring for protégés: A meta-analysis. Journal of Applied Psychology, 89, 127-136.

48. Ragins, B. R., Cotton, J. L., & Miller, J. S. (2000). Marginal mentoring: The effects of type of mentor, quality of relationship, and program design on work and career attitudes. Academy of Management Journal, 43, 1177-1194.

49. Karaveli, A., & Hall, D.T. (2003). Growing leaders for turbulent times: Is succession planning up to the challenge? Organizational Dynamics, 32, 62-79.

50. Revans, R. W. (1980). Action learning. London: Blond & Briggs. Investments in all phases of the talent management process must be made with a careful and detailed understanding of the specific organizational context and must be linked to the organization’s overall strategy.

Developing Leadership Talent 37

Sources and Suggested Readings

Berke, D. (2005). Succession planning and management: A guide to organizational systems and practices. Greensboro, NC: Center for Creative Leadership. This is an update on an annotated bibliography on succession planning first published by the Center for Creative Leadership in 1995. This updated report is broader in scope and includes, in addition to linkages between succession and development, a review of the literature on CEO succession, high potentials and succession systems and architecture. Each of these four content areas is preceded by a brief introduction and summary of core issues. In conclusion, the author offers suggestions for organizing the various elements of succession management and planning: (a) establishing clear roles; (b) determining and implementing appropriate systems and processes; and (c) ensuring necessary resources. Overall, it is recommended that to maximize the desired outcome from a succession process, it is crucial to design a succession system that fits with the culture of the organization.

Fegley, S. (2006). SHRM 2006 succession planning survey report. Alexandria, VA: Society for Human Resource Management. The report summarizes the results of a survey conducted in December 2005 with a sample of the members of the Society for Human Resource Management. The goal was to gauge the prevalence of succession planning and to gather input from human resource professionals regarding their role in the succession planning process. A total of 385 HR professionals completed the survey. Among the key findings was the fact that over half of the sample indicated that their respective organizations had either a formal or informal succession plan in place. The majority of existing plans included executive-level, senior management and middle-management positions. A number of comparisons were made between those respondents reporting that a formal plan was in place and those with an informal plan. HR professionals from organizations with formal plans were significantly more likely to rate their organizations as being better prepared to immediately fill a vacancy if a key leader left the organization. It was emphasized that succession planning must include leadership development in order to have a pipeline of leaders ready to move into positions of greater responsibility. This is an imperative to remain competitive in today’s turbulent global economy. 38 Developing Leadership Talent

Karaveli, A., & Hall, D. T. stress on the identification of talent it highlights one major criticism (2003). Growing leaders for and overlooking development, of the competency movement that turbulent times: Is succession and a weak link between leader it is mainly driven by consulting planning up to the challenge? development and strategy. A helpful revenues and not by science. Overall, Organizational Dynamics, 32(1), checklist is included for diagnosing it is unclear whether the advice on 62-79. improvements in corporate succession management offered succession planning programs in this book will “future-proof” Based on research conducted (reprinted in this report). your organization; however, it on 13 best-practice succession does provide a comprehensive and programs (BP, Boeing, Chase sophisticated guide to designing and Manhattan, Citigroup, Dell, Eli Munro, A. (2005). Practical implementing an effective succession Lilly, Ericsson, Hewlitt-Packard, succession management: How to management system. JP Morgan, Motorola, Southwest future-proof your organization. Airlines, Sun Microsystems, U.S. Burlington, VT: Gower. Army), the authors conclude that Rothwell, W. J. (2005). Effective the current business environment The author of this practically succession planning: Ensuring has rendered traditional succession oriented guide to succession leadership continuity and building planning approaches obsolete. management is a director of a talent from within (3rd ed.). New Organizations need to do a better consulting firm specializing in York: American Management job of creating deep talent pools the link between organizational Association. and preparing leaders at all levels for effectiveness, succession future challenges. One of the biggest management and leadership. The A review on Amazon.com claims obstacles to success is focusing too book is comprehensive in terms of that this book “must surely be one much on succession events (i.e., addressing the major components of the driest books ever written on replacement of key individuals) at of succession management that are this topic.” But this same reviewer the expense of attending to the organized into three sections: (1) acknowledged that it is probably ongoing process by which leaders examining the context for succession one of the most thorough books are developed over the span of their management; (2) formulating a available on succession planning. careers. Seven elements of best succession game plan (including The book includes a wide variety of practices in succession planning managing the appointment process, checklists, guidelines, exercises, case processes are identified, including a identifying business risks, creating a studies and other applied examples definition of “high potential” that talent blueprint and strengthening to help offset the pedantic writing is specific to the organization, an the leadership pipeline); and style (the author is a professor of individualized development process (3) implementing sustainable human resource development). It and a focus on developing broad succession management. One of offers a comprehensive guide to and deep talent pools rather than the more provocative parts of the the succession planning process. “crown princes and princesses.” book presents the author’s views It provides a detailed plan for They also identify some ongoing on leadership competencies. His instituting a long-term succession challenges in building a state- perspective on competencies is that planning program that includes of-the-art succession planning as with any big idea, the consultancy everything from early action process, including the tendency for sector saw an opportunity and steps to ongoing evaluation executive cloning (selecting leaders “a gravy train moved out of the and revision. It also describes on the basis of past performance station and picked up speed” how to develop, monitor and and current fit with organizational (p. 60). This is an interesting evaluate skills and competencies needs rather than taking a future- comment from someone who is a in individual employees so as oriented perspective), too much director of a consulting firm! But to promote effectively from

Developing Leadership Talent 39

within the organization. The recruiting externally; (9) have the and the affective reaction of group author also introduces eight outgoing CEO leave or stay on as members to the leader’s departure. key trends that are affecting the chair for just a limited time; and (10) This should influence how to future of succession planning prepare a comprehensive emergency introduce a new leader and what and management, including how succession plan. kinds of training this might require. increasing globalization will affect An innovative aspect of this reading the succession management process, is that it changes the focus of the role of technological innovations Succession Research succession from the successor to and the need to better balance work those in workgroups who must cope and family demands. Ballinger, G. A., & Schoorman, with changes in their leadership. F. D. (2007). Individual reactions to leadership succession in workgroups. Academy of Mercer Delta Consulting. (2006). Cabrera-Suárez, K. (2005). Management Review, 32(1), 118- The role of the board in CEO Leadership transfer and the 136. succession: A best practices study. successor’s development in the Washington D.C.: National In this theoretical paper, the family firm.Leadership Quarterly, Association of Corporate authors provide some insights into 16(1), 71-96. Directors. developing a case for a “leadership This qualitative case study examines succession effect” that can be This study surveyed 23 companies factors associated with the transfer generalized across groups. They that experienced a recent CEO of leadership in family firms to the integrate perspectives from cognitive succession. The participating next generation of the owner family. appraisal, relational leadership organizations were chosen by a panel A review of the relevant literature and trust in developing a model of experts suggests two general factors that of individual affective (emotional) based on their CEO succession might affect successor success in reactions to leadership succession. planning “best practices.” The family-run businesses: training for Propositions are offered as to how companies that participated had leadership and commitment to the these affective reactions influence 2004 revenues ranging from $3 firm. Seven succession cases from work attitudes and behaviors. billion to $151 billion and came the automobile distribution industry Of particular importance is the from a broad spectrum of industry are examined. Three of these cases quality of the relationship with the sectors. Individual interviews were were considered to be completely predecessor leader. More positive conducted with a director from each successful, three were partially relationships with a prior leader are company who was knowledgeable successful, and one was deemed a thought to create the likelihood about the succession process. failure. The criteria used to evaluate for greater trust in the new leader, Analyses of the interviews suggested succession success were growth in higher motivation to perform and 10 best practices with regard to economic indicators for the firm higher job satisfaction; that is unless CEO succession: (1) plan three to and the satisfaction of all parties in these positive relationships are five years out; (2) ensure full Board the succession episode. Academic associated with increased negative involvement; (3) establish an open training for leadership was not affect associated with the leader’s and ongoing dialogue and an annual found to differentiate among the departure from the workgroup. review; (4) develop and agree on more and less successful successions; From a practical perspective, those selection criteria; (5) use formal however, having a supportive responsible for hiring and placing assessment; (6) interact with internal predecessor and supportive non- new leaders in ongoing workgroups candidates; (7) stage the succession family managers were suggested as should consider the quality of but avoid “horse races;” (8) develop important factors. Commitment to relationship with the predecessor internal candidates rather than the firm, as compared with having 40 Developing Leadership Talent

no other professional opportunities (e) boards should consider the Rowe, W. G., Cannella, A. A. or being expected to take over as a complexity of the job and the time Jr., Rankin, D., & Gorman, D. family tradition, was an important needed to master it and therefore (2005). Leader succession and distinguishing factor. Overall, it avoid hasty evaluations of new organizational performance: was concluded that the quality of leaders, especially CEOs. Integrating the common-sense, interpersonal relationships in the ritual scapegoating, and vicious- firm, the successors’ expectations circle succession theories. and the role of the predecessor were Kesner, I. F., & Sebora, T. C. Leadership Quarterly, 16, 197-219. the most critical factors in shaping a (1994). Executive succession: The research question of interest successful family business succession. Past, present, & future. Journal of in this study is whether changing Management, 20, 327-372. leaders matter for team performance. Although this review has been The sample in question consisted of Giambatista, R. C., Rowe, W. updated and extended by the National Hockey League teams G., & Riaz, S. (2005). Nothing Giambatista, Rowe and Riaz over the course of 60 years. The succeeds like succession: A critical (2005), it provides a comprehensive leaders in question were coaches review of leader succession examination of the history of and general managers of their literature since 1994. Leadership succession research. It examines respective NHL teams. Results Quarterly, 16(6), 963-991. this history in three phases: (1) the supported the hypothesis that This paper reviews the leader emergence of the field in the 1950s leader succession does affect team succession research from 1994- and 1960s; (2) building theory and performance; thus, leaders do matter 2004, subsequent to the review gaining empirical evidence in the when it comes to performance. by Kesner & Sebora (1994). The 1970s; and (3) the explosive growth The authors suggest that possibly present authors conclude that of the field in the 1980s. The review a more important question may be the state of theory in succession of succession-related topics under when the succession should occur literature is fragmented and each of these historical periods to better realize performance gains. variable. Suggestions are offered is exhaustive, but it is of primary Successions during a season had a for improving succession research interest to those with an interest negative effect on team performance in the areas of research design, in succession research. There is a whereas those that occurred in a setting, construct validity, internal relatively brief section on succession previous season were associated with validity and external validity. From planning that notes that fewer than a positive effect. This is consistent their comprehensive review of the 50 percent of firms in the early with the axiom that there is no literature, the authors suggest the 1980s used any form of succession long-term gain without short- following practical implications: planning—formal or informal—and term pain. Although many other (a) simplistic notions of succession for those that did use succession kinds of organizations do not have should be disregarded; (b) boards planning, the responsibility was seasons like the NHL, some do and incumbent CEOs need to primarily with the CEO. Comparing have busy seasons and off seasons emphasize formal succession these results with the recent SHRM (e.g., tax accounting firms and planning, especially in small report on succession planning those associated with the tourism organizations where such plans (Fegley, 2006) shows that there industry). Generalizing the present seem to be mostly nonexistent; has been movement toward a findings to other organizations (c) close attention should be paid greater prevalence of succession would require an understanding of to the abilities and background of planning and management processes the cyclical aspects of their business. successor candidates because those in organizations and that the factors matter; (d) board members responsibility for this planning is no should remember that their own longer as focused on the CEO. abilities and background affect their candidate impressions; and

Developing Leadership Talent 41

Shen, W., & Cannella, A. A., whereas outsider successions insiders and that a comparison of the Jr. (2002`). Revisiting the were negatively associated with results shows that the antecedents performance consequences of postsuccession firm performance. of CEO dismissal followed by CEO succession: The impacts of Senior executive turnover after a insider succession and those of successor type, postsuccession contender succession was positively CEO dismissal followed by outsider senior executive turnover, and associated with firm performance succession differ. Specifically, the departing CEO tenure. Academy (moderator hypothesis supported), results suggest that non-CEO senior of Management Journal, 45, 717- and there was an inverted U-shaped executives often play an important 734. relationship between departing role in CEO dismissal and the CEO tenure and postsuccession subsequent appointment of an This study investigates the firm performance. Managerial inside successor. One implication importance of succession context implications are discussed in terms of of these findings is that outside in terms of the performance top management team restructuring directors need to monitor closely implications associated with following contender and outside the power dynamics within top successor type (follower, contender, successions and the importance management and ensure that there outsider), postsuccession senior of boards of directors to carefully is healthy competition that does executive turnover and departing manage CEO tenure. Both overly not undermine individual or firm CEO tenure. The study proposes long and unduly short CEO tenures performance. and tests a model of the performance were demonstrated to be directly consequences of CEO succession in harmful to postsuccession firm which the effects of postsuccession performance. Zajac, E. J. (1990). CEO senior executive turnover on firm selection, succession, performance are moderated by compensation and firm successor type and where departing Shen, W., & Cannella, A. A., performance: A theoretical CEO tenure has a direct effect Jr. (2002). Power dynamics integration and empirical analysis. on firm performance. Successor within top management and Strategic Management Journal, types are categorized as follows: their impacts on CEO dismissal 11(3), 217-230. (a) follower successors who are followed by inside succession. inside executives promoted to CEO At issue in this study is whether Academy of Management Journal, following ordinary retirements of there are factors relating to 45, 1195-1205. their predecessors; (b) contender CEO selection, succession and successors who are inside executives Based on a power perspective, compensation that are linked to promoted to CEO after the this longitudinal study examines firm performance. This was the dismissal of their predecessors; the antecedents of CEO dismissal first study to take an agency theory and (c) outsider successors who followed by inside succession. perspective (examining principal- are brought in when there is a The focus was not on “ordinary” agency relationships) to these issues, lack of a suitable successor within successions due to retirement, especially with regard to information the firm. The hypothesized model but on a subset of inside CEO asymmetry. It was hypothesized that was tested using data from 228 successions due to power contests hiring an outsider CEO will be, on CEO successions, demonstrating within top management groups in average, a worse decision in terms that the type of insider succession which the CEO is dismissed and has of firm performance than to hire an matters when predicting firm no influence over the selection of the insider CEO, given that information performance. Contender successions successor. Evidence from a sample of asymmetry between a board and a were positively associated with 387 large U.S. corporations showed CEO candidate is greater with an postsuccession operational that 38 out of 65 dismissed CEOs external candidate. The study also performance (return on assets), (58 percent) were succeeded by directly assessed the implications 42 Developing Leadership Talent

of having a specific successor in and when there were higher levels would benefit most from learning place through succession planning. of strategic and industry instability. opportunities and development Both hypotheses were strongly Outside successions did not differ experiences. From this perspective, supported using a sample of significantly from nonrelay inside the value to leadership development 591 CEOs from the largest U.S. successions in terms of subsequent is clear. corporations in 1987 as compiled firm performance, which is contrary by Forbes and Fortune magazines. to conventional wisdom that outside The practical implications for CEOs are better equipped to turn Hollenbeck, G. P., McCall, M. strategic management concerns the around firm performance. W., Jr., & Silzer, R. F. (2006). identification of specific, interrelated Leadership competency models. factors that can potentially influence Leadership Quarterly, 17, 398-413. the behaviors of top-level managers. Competency Modeling This article summarizes a series Bartram, D. (2005). The great of “theoretical letters” between eight competencies: A criterion- Hollenbeck/McCall and Silzer on Zhang, Y., & Rajagopalan, N. centric approach to validation. the value of leadership competency (2004). When the known devil Journal of Applied Psychology, models. Hollenbeck/McCall is better than an unknown 90(6), 1185-1203. argue that the assumptions god: An empirical study of the behind competency models are antecedents and consequences of Results are presented from a meta- a problem, especially in terms of relay CEO succession. Academy of analysis of 29 validation studies their leader-centric focus. They Management Journal, 47, 483- of the “Great Eight” competency also question whether any single 500. factors of (1) leading and deciding; set of competencies can adequately (2) supporting and cooperating; Relay successions occur when an describe effective leaders. Silzer (3) interacting and presenting; incumbent CEO works with a responds with an overview of why (4) analyzing and interpreting; designated heir and “passes the he believes competency models are (5) creating and conceptualizing; baton” to that heir apparent. helpful, including (a) summarizing (6) organizing and executing; Nonrelay inside succession occurs the experience and insight of (7) adapting and coping; and (8) when the successor CEO is seasoned leaders; (b) specifying a enterprising and performing. The appointed from within the firm range of useful leader behaviors; author defines competencies as sets but was not the predecessor’s heir (c) providing a tool that individuals of behaviors that are instrumental apparent. The authors argue that can use for their self-development; in the delivery of desired results this is an important distinction from and (d) outlining a leadership or outcomes. The article provides the perspective of organizational framework that can be used to an in-depth review of each of the learning and adaptation. Data on select, develop and understand Great Eight and their respective 204 CEO successions between 1993 leadership effectiveness. In the subdimensions. The purpose and 1998 in U.S. manufacturing next set of letters, Hollenbeck/ of this exercise is to promote a firms showed that the likelihood McCall argue that competencies criterion-based approach to test of relay succession was negatively have distracted researchers and validation. Although that topic is related to the number of internal practitioners from a focus on results less central to the present focus on candidates and positively related to because they are so person-oriented succession planning and leadership presuccession firm performance. in terms of personal behaviors and development, the point is made that Relay successions were found to be personal characteristics that getting adopting the Great Eight or a similar associated with better postsuccession things done is overlooked. In a criterion classification model would firm performance, especially under very provocative conclusion, they contribute to being better able to conditions of lower levels of firm claim that this “has been devastating identify those areas in which people performance prior to the succession to HR to the point that some

Developing Leadership Talent 43

authors have even suggested that different type of organization, many examined the current range of HR be disbanded, and outsourcing of the challenges it faces are much practice. This article is a summary of HR functions has become like any other large organization—in of the findings of the task force. commonplace” (p. 408). The final particular, how to lead a bureaucratic The article compares the practices letter from Silzer summarizes in organization in a turbulent global of job analysis and competency what areas the authors agree (e.g., environment that requires flexibility modeling, identifies the strengths desiring a more comprehensive and adaptability. The first step in the and weakness of each approach, approach to leadership effectiveness), process was to conduct a leadership and makes recommendations for where they disagree (e.g., overall needs assessment (with help from how to leverage the strengths value of competency models, nature specialists at the Center for Creative of one approach to overcome of leadership competencies and Leadership). The chapter explains in weaknesses in the other. Some of the assumptions of competency detail the Leadership Development the topics that are addressed include models) and what directions Impact Assessment that was used for an examination of the various should be taken in the future (e.g., the needs assessment and how this meanings that have been proposed a model of leadership situations, process was integral for developing for defining a competency, how leadership outcomes and interactions a levels-of-mastery framework competency modeling and job between competencies, situations that in turn was used in building analysis differ, what the consumer and outcomes). This leaves us the competency models for the appeal of competencies is, and what with a better understanding of three levels of CIA management might be the future of competency the sources of controversy with (, and modeling. This is a comprehensive leadership competency models and executive). The resulting multi-level and rigorously conducted a more balanced perspective on competency framework became the examination of the phenomenon their purported advantages and foundation for the CIA Leadership of competency modeling and is disadvantages. Academy, which, the authors argue, highly recommended as background has been helpful in producing highly reading for any HR professional effective leaders throughout the or scholar who desires a greater Martineau, J., Laskow, G., three levels of the CIA. understanding of the state of the Moye, L., & Phillips, D. field of competency modeling. (2005). Creating synergy and difference in development: One Schippmann, J. S., Ash, R. A., organization’s competencies for Battista, M., Carr, L., Eyde, L. Leadership Development three organizational levels. In D., Hesketh, B., et al. (2000). Byrne, J.-A. C., & Rees, R. T. R. B. Kaiser (Ed.), Filling the The practice of competency (2006). The successful leadership leadership pipeline (pp. 85-110). modeling. Personnel Psychology, 53, development program: How to build Greensboro, NC: Center for 703-740. it and how to keep it going. San Creative Leadership. Because the competency modeling Francisco, CA: Pfeiffer. This chapter presents a case study trend has been confusing to HR This is where to start if you have description of the steps that the researchers, practitioners and absolutely no idea how to design or Central Intelligence Agency (CIA) consumers of HR-related services, implement a leadership development took in transforming its approach the Job Analysis and Competency initiative. The book is very clearly to leadership by developing a set of Modeling Task Force (Society written, although overly simplistic competencies that were tailored to of Industrial and Organizational in its content. There are numerous the organization across three unique Psychology) conducted a two-year flowcharts and to guide levels of management. Although investigation into the antecedents the reader through various stages in many ways the CIA is a very of competency modeling and 44 Developing Leadership Talent

and decision points in the program choose (or are forced to choose) to Conger, J. A., & Fulmer, R. development process. The various make their leaders rather than to buy M. (2003). Developing your chapters are devoted to topics them (i.e., relying on headhunters leadership pipeline. Harvard such as identifying the guiding for external recruitment), this book Business Review, 81(12), 56-64. principles of a program; building offers a valuable perspective in terms The focus of this article is on the foundation of philosophy, of examining and understanding aligning succession planning with conceptual framework and the longitudinal career implications leadership development. Succession operational strategy; developing a of the leadership pipeline. The planning needs to be more than an leadership competency model and first part of the book focuses on annual update of a list of leadership designing a diagnostic inventory six key transitions that constitute candidates. It needs to ensure that for those competencies; developing developmental milestones for there is a deep pipeline of developed a return on investment model; leaders. The six transitions are: (1) or developing leaders who are developing individual learning plans from managing yourself to managing prepared to successfully handle and learning modules; getting senior others; (2) from managing others more responsible leadership roles. level buy-in; and developing an to managing managers; (3) from The authors present five rules for implementation strategy. What the managing managers to functional setting up an effective succession book provides in breadth it lacks in managing; (4) from functional management system (succession depth. For example, much of the managing to business managing; planning + leadership development). content in each chapter is presented (5) from business managing to Rule 1 is to focus on development. in bullet points. This improves group managing; and (6) from Succession management is a system accessibility, but it glosses over the group managing to enterprise oriented toward developmental complexities associated with many managing. An important part of the activities and not a list of high- of the issues. It also ignores the authors’ message is that the values potential employees. Rule 2 is to controversy regarding leadership and focus of the leader change at identify linchpin positions.—identify competency models (see the section each transition point. A major part and focus on those jobs that are on competency modeling) and of development is moving away essential to the long-term health of blindly assumes that is the way to from what had made someone a the organization. Rule 3 is to make go, ignoring that trying to predict successful leader at an earlier career it transparent. Rather then shrouded what will be required of leaders stage to what is needed at the new in secrecy, let people know exactly five or 10 years in the future is a transition. The second part of the where they stand in the succession very difficult task. In short, the book elaborates on how to diagnose system. Rule 4 is to measure progress book is best used as a primer to leader development and adjustment regularly—move away from a leadership development and would and how to help leaders make replacement mindset to one that likely be most helpful to those HR better developmental progress. The evaluates the ongoing development professionals just getting into the longitudinal perspective of this book of candidates for linchpin jobs. Rule field of leadership development. is especially welcomed. It also helps 5 is to keep it flexible. Succession to illuminate the challenges leaders systems need to be refined and face at various stages of their careers adjusted based on feedback from line Charan, R., Drotter, S., & Noel, and discusses how to better prepare executives and participants. Overall, J. (2001). The leadership pipeline: them to make successful transitions effective succession management How to build the leadership-powered as they move up the pipeline. requires a culture that encourages company. San Francisco: Jossey- honesty and risk taking. Bass. This book is about growing your own leaders. As organizations

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Day, D. V. (2000). Leadership The point is not to choose between Gardner, W. L., & Avolio, B. development: A review in context. leader and leadership development J. (Eds.). (2005). Authentic Leadership Quarterly, 11, 581-613. but to work on linking the two in a leadership development: Getting more systemic manner. to the root of positive forms A distinction is drawn between of leadership [Special issue]. leader development and leadership Leadership Quarterly, 16(3). development. Much of what is Dvir, T., Eden, D., Avolio, B. done with regard to leadership The special issue resulted from the J., & Shamir, B. (2002). Impact development is really about inaugural summit hosted by the of transformational leadership developing individual leaders. Leader Gallup Leadership Institute at the on follower development and development focuses on developing University of Nebraska-Lincoln in performance: A field experiment. individual-level knowledge, skills 2004. It includes an introduction by Academy of Management Journal, and abilities (i.e., human capital). B. J. Avolio and W. L. Gardner that 45, 735-744. Leadership development is less about provides the conceptual foundation the individual and more about the A longitudinal, randomized field to the nascent field of authentic connections, commitments and experiment was conducted to test leadership theory, the relevance reciprocal obligations that develop the effects of transformational of authenticity to leadership, the between people (i.e., social capital). leadership as enhanced through roots of authentic leadership in Leader development is based on a training on follower development positive psychology and positive traditional, individualistic notion and performance. The sample organizational scholarship, and of leadership. It is leader-centric. consisted of 54 leaders form the promising directions for future Leadership development has its Israel Defence Forces, 90 direct research. origins in a more contemporary, reports (followers) and 724 indirect • W. L. Gardner, B. J. Avolio, relational model of leadership that followers (once removed from a F. Luthans, D. R. May and assumes that leadership is a function direct reporting relationship). The F. Walumba [“Can you see of the social resources that are leaders in the experimental condition the real me?” A self-based embedded in relationships. The received transformational leadership model of authentic leader practice and research literatures training, whereas the and follower development, are reviewed regarding the non- group leaders received eclectic pp. 343-372] emphasize classroom approaches to both leader leadership training. The results the developmental processes and leadership development. The indicated that leaders receiving the of leader and follower self- focus is on those practices that transformational leadership training awareness and self-regulation. embed learning and development had more of a positive effect on Positive modeling is viewed as a in the context of ongoing work direct followers’ development primary means whereby leaders rather than taking people away from (i.e., self-efficacy, independent and develop authentic followers. their work to learn and develop. critical thinking and motivation) Outcomes of authentic leader- The reviewed practices include and indirect followers’ performance follower relationships are 360-degree feedback, executive (i.e., weapons test performance and thought to include heightened coaching, mentoring, networking, obstacle course performance). From levels of follower trust in the job assignments and action these findings, the authors conclude leader, engagement, workplace learning. Some of these practices that enhancing transformational well-being and sustainable emphasize human capital (i.e., leadership through training can performance. leader) development, and others augment the development of human focus mainly on social capital (i.e., resources and their performance leadership) development, whereas across a variety of organizational only action learning targets both. contexts. 46 Developing Leadership Talent

• R. Ilies, F. P. Moregeson and • S. Michie and J. Gooty [Values, Giber, D., Carter, L., & J. D. Nahrgang [Authentic emotions, and authenticity: Will Goldsmith, M. (Eds.). (1999). leadership and eudaemonic well- the real leader please stand up? Linkage, Inc.’s best practices in being: Understanding leader- pp. 441-457] incorporate current leadership development handbook. follower outcomes, pp. 373-394] theory from the emotion and Lexington, MA: Linkage Press. examine the Aristotelian concept positive psychology literatures The book opens with a brief of eudaemonia, which is the view to present an alternative role introduction by Warren Bennis; of human happiness that assesses of emotions in leadership. In however, the bulk of the content is the goodness of life based on particular, it is argued that devoted to leadership development living in a manner that actively frequent experiences of positive case studies from 15 different expresses excellence of character other-directed emotions are organizations, including Abbott or virtue. From this they develop an important part of authentic Laboratories, AlliedSignal, BP a multi-component model of leadership. Amoco, Colgate-Palmolive, authentic leadership and discuss • A. Eagly [Achieving relational Gundersen Lutheran Hospital and the antecedents of authentic authenticity in leadership: Motorola. Each case begins with leadership as well as its outcomes Does gender matter? pp. 459- a mission statement description for both leaders and followers. 474] argues that achieving of the initiative. Although the • B. Shamir and G. Eilam [“What’s relational authenticity requires content categories differ by case, your story?” A life-stories that followers grant leaders the many include a brief overview approach to authentic leadership legitimacy to promote a set of of the respective organization, a development, pp. 395-417] values. Evidence is presented section on building the business argue that authentic leadership suggesting that obtaining this case for leadership development, a stems from the self-relevant legitimacy is more difficult for description of the actual leadership meanings the leader attaches to female than for male leaders. development process and the life experiences. These meanings methodology of and insights gleaned • C.D. Cooper, T. A. Scandura are captured in the leader’s life from program evaluation. There is and C. A. Schriesheim [Looking story. a brief conclusions section devoted forward but learning from our to presenting survey results on • R. T. Sparrowe [Authentic past: Potential challenges to leadership development trends and leadership and the narrative developing authentic leadership findings, including the (a) most self, pp. 419-439] presents theory and authentic leaders, pp. important competitive and strategic an alternative perspective on 475-493] caution that it may be business challenges (globalization, authentic leadership that is premature to focus on designing improving productivity and based on the framework of interventions to develop competition); (b) most common the narrative self. From this authentic leadership before leadership competencies (builds perspective, authenticity is not additional work is conducted to teamwork, understands the business achieved by self-awareness of define, measure and research the and thinks conceptually); (c) key one’s core values or purpose. construct. features of leadership development Instead, authenticity emerges (action learning, 360-degree from the narrative process in feedback and exposure to senior which others play an essential executives); (d) critical factors and constructive role in the that most affect the success of the self. Implications are discussed leadership development initiative for research and the practice of (support and involvement of senior ethical leadership. management, continuous evaluation

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and linking leadership development McCall, M. W., Jr., & Hollenbeck, McCauley, C. D., & Van Velsor, with strategic plan); and (e) G. P. (2007). Getting leader E. (Eds.). (2004). The Center for evaluation methods used (reactions, development right: Competence Creative Leadership handbook of behavioral transfer, results and not competencies. In J. A. Conger leadership development (2nd ed.). learning in order of prevalence from & R. E. Riggio (Eds.), The practice San Francisco, CA: Jossey-Bass. most to least). of leadership: Developing the next The mission of the Center for generation of leaders (pp. 87-106). Creative Leadership (CCL) is to San Francisco, CA: Jossey-Bass. advance the understanding, practice Kaplan, R. E., & Kaiser, The authors boldly state that leader and development of leadership for R. B. (2003). Developing development is not working. It the benefit of society worldwide. versatile leadership. MIT Sloan is not working because the HR In pursuing this mission over Management Review, 44(4), 19-26. community has been star-struck the previous three decades, CCL The core idea in this paper is that by competencies and has forgotten faculty members have worked leaders often develop in ways about results. Instead of developing with hundreds of thousands of that result in a lack of balance. In leadership competency models managers and executives across a particular, leaders have the natural that support leader development broad array of organizations. The tendency to overdevelop one set programs, here is what the authors second edition of CCL’s handbook of strengths at the expense of its argue organizations should be of leadership development makes counterweight. For example, at one doing: available much of the knowledge end might be forceful leadership gleaned from this work. It is not a • Identify challenges, not and at the other is enabling research-based perspective in most competencies. leadership. Either extreme is a cases (although research is one of vice such as being insensitive and • Identify experiences, not CCL’s core areas), but rather it callous (forceful to the extreme) or programs. brings together and presents in one overly accommodating (enabling volume the practical knowledge that • Identify people who can make to its extreme). But more moderate has been gained regarding leadership the most of available experiences. positions are virtues such as taking development. It does not provide a stands and making tough calls or • Create the means for getting comprehensive review of leadership listening to others’ opinions and people into the experiences they theories nor is it exhaustive in its ideas. The absence of imbalance is need. coverage of all methods of leader versatility in which an effective leader and leadership development. can draw from virtuous aspects of • Help people learn from the Instead, it focuses on those areas each approach that best fit with experiences they have. in which CCL has considerable the situation at hand. Leaders can In achieving these re-focused goals, experience and expertise. The 15 develop themselves by strengthening the importance of developmentally chapters that comprise the book the weak side and moderating the oriented leaders and the use of are organized into three parts: (1) overused side. executive coaching will become individual leader development (e.g., increasingly important over time. feedback, coaching, developmental relationships, job assignments, evaluating impact); (2) leader development in context (e.g., leader development across gender and race, cross-cultural issues, developing global leadership and a lifelong development perspective); 48 Developing Leadership Talent

and (3) leadership development to something bigger and more organization was a medium-sized (e.g., organizational capacity for important than what they could faith-based health care system with leadership and exploration for do on their own. In short, the a strong service-focused culture, development). A CD-ROM library approach discussed by the authors is and the other was a very large of 15 papers authored by CCL at the same time a very radical and quasi-governmental service agency faculty and researchers accompany worthwhile approach to leadership with a strong operations-focused the handbook. development. culture. Through the use of action learning, broader leadership capacity was developed in both of these Mirvis, P., & Gunning, L. T. O’Connor, P. M. G., & Day, D. organizations. (2006). Creating a community of V. (2007). Shifting the emphasis leaders. Organizational Dynamics, of leadership development: 35(1), 69-82. From “me” to “all of us”. In Schriesheim, C. A. (2003). J. A. Conger & R. E. Riggio Why leadership research is This article provides a description (Eds.), The practice of leadership: generally irrelevant for leadership of the community building efforts Developing the next generation of development. In S. E. Murphy & at Unilever Foods Asia (the second leaders (pp. 64-86). San Francisco, R. E. Riggio (Eds.), The future of author was then its president). CA: Jossey-Bass. leadership development (pp. 181- The goal of the company’s 197). Mahwah, NJ: Erlbaum. developmental initiative was to The role of identity in the build the capacity of the entire leadership development process is This chapter highlights the scientist- leadership body to work together examined. The chapter explores practitioner gap when it comes to as a community of leaders. The how action learning supported two leadership development. The author method for doing this was through organizations’ efforts to address discusses the core reasons he believes enabling the learning journeys of the complex challenges in part by leadership research is irrelevant individual while also building a sense developing collective leadership for the development of managers of collective identity—“us.” Actual identities. The focus was deliberately and leaders in work organizations. journeys of up to a week were taken altered from developing “me” Specifically, six reasons for the gap to places in India, China and Sri as a leader (individual identity) between what leadership researchers Lanka, where participants engaged to developing the leadership in provide and what HR professionals with indigenous people, took part in “all of us” (collective identity). need are identified: (1) differences self-reflection and used storytelling The practices that supported the in language (abstract versus action- to share with others one’s life history development of collective identities oriented); (2) differences in goals/ and lessons of experience. Rather included creating alignment with objectives (statistical significance than focus on building specific, organizational identity, building versus results); (3) lack of validity and traditional leadership skills as part collective self-concepts and irrelevance of validity for practice; (4) of the development initiative, this developing systemic social networks. excessive intricacies in our theories; approach had more to do with In doing so, the participants in the (5) assumed leader competence; and building meaning and perspective action-learning initiatives produced (6) assumed leader motivation and as well as community. As noted outcomes of tangible benefit to commitment. The chapter concludes by Gunning, people want to live their respective organizations with suggestion on how to narrow meaningful lives, live in service and in the form of competitive and the research-practice in each of the care for others, have the freedom innovative strategies, work six identified areas. and opportunity to be creative, and processes and tools. Case study grow and be part of an organization evidence is presented from two very that allows them to contribute different organizations. One case

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Feedback and Executive developmental intervention for Peterson, D. B. (1996). Executive Coaching managers has increased dramatically coaching at work: The art of Church, A. H. (1997). Managerial over the previous decade. It is one-on-one change. Consulting self-awareness in high performing defined by the use of the following: Psychology Journal: Practice and individuals and organizations. (a) one-on-one counseling about Research, 48(2), 78-86. work-related issues; (b) 360- Journal of Applied Psychology, The author at the time of degree feedback as a starting point 82(2), 281-292. publication was the vice president to diagnose executive strengths and head of Individual Coaching Many approaches to leader and developmental weaknesses; Services at Personnel Decisions development focus on enhancing and (c) the overarching purpose International (PDI). This article is individual self-awareness. But what of improving leadership and from a special issue on executive does self-awareness mean? It was performance effectiveness in coaching, defined as the process of operationalized in this study as the executive’s current position. equipping people with the tools, congruence between self and direct The present review examines the knowledge and opportunities they reports’ behavioral ratings. These construct of executive coaching and need to develop and become more ratings were examined for 134 whether professional training, client effective. It outlines five research- high-performing and 470 average- characteristics and types of coaching based strategies that guide one- performing managers across four are related to the effectiveness on-one coaching at PDI. These databases. Results indicated that of coaches. One of the current strategies include (a) forging a the high-performing managers dilemmas is that executive coaching partnership such that you build were significantly more self-aware is an unregulated field. Anyone can trust and understanding so people (i.e., had a smaller discrepancy label him- or herself an executive want to work with you; (b) inspiring between self ratings and direct coach. There is no consistency in commitment to build insight and report ratings) as compared with the background of coaches and motivation so people focus their the average performers. In addition, no systematic relationship with energy on goals that matter; (c) the construct of self-monitoring coaching effectiveness. Most of growing skills and building new personality was found to converge the clients are senior- to mid-level competencies to make sure that with managerial self-awareness. managers who have performed well people know how to do what is Overall, these results underscore in the past but are struggling at required; (d) promoting persistence the apparent importance of a leader present and those who have been to build stamina and discipline to understanding the impact of his or targeted for advancement to an make sure learning lasts on the job; her behavior on others, especially executive level but are missing some and (e) shaping the environment direct reports. These results also specific skills. Although practitioner in such a way that it builds suggest that enhancing managerial articles far outnumber rigorous organizational support to reward self-awareness is a worthwhile focus empirical studies of the outcomes learning and remove barriers. The of leader development efforts. associated with executive coaching, article concludes with a case study of the available data suggest that a typical coaching participant as well coaching can enhance executive as five tips for coaches based on the Feldman, D. C., & Lankau, M. learning, self-awareness and certain coaching experience of the author. J. (2005). Executive coaching: leadership behaviors regardless of A review and agenda for future the particular coaching approach research. Journal of Management, (psychodynamic, behaviorist, 31(6), 829-848. person-centered, cognitive therapy or systems-oriented). The authors Executive coaching has become conclude with suggestions for a very popular, and its use as a future research agenda. 50 Developing Leadership Talent

Smither, J. W., London, M., Smither, J. W., London, M., Ting, S., & Scisco, P. (Eds.). Flautt, R., Vargas, Y., & Kuchine, & Reilly, R. R. (2005). Does (2006). The CCL handbook of I. (2003). Can working with performance improve following coaching: A guide for the leader an executive coach improve multisource feedback? A coach. San Francisco, CA: Jossey- multisource feedback ratings over theoretical model, meta-analysis, Bass. time? A quasi-experimental field and review of empirical findings. The Center for Creative Leadership study. Personnel Psychology, 56, Personnel Psychology, 58, 33-66. (CCL) has been involved with 23-44. The core issue in this study was coaching leaders for over 30 years. The focus of this study was on whether and to what extent This edited handbook is based whether working with an executive recipients improve their performance on CCL’s philosophy of leader coach as part of a multisource after receiving multisource development and its experience in feedback program was more effective feedback. A meta-analysis of 24 the practice of leadership coaching. in terms of process and outcomes longitudinal feedback studies was Much like the CCL handbook compared with not working with conducted indicating generally small of leadership development, this a coach. Participants were 1,361 improvements in direct report, is not a research-based volume. senior managers who received peer and supervisor ratings over Instead, the various chapters that multisource feedback, with 404 of time. A theoretical model is then are authored by faculty members them working with a coach to review presented suggesting that some and coaches reflect the experience their feedback and set goals. One feedback recipients would be more and expertise in coaching that has year later, 1,202 senior managers, or likely to improve than others. It is been gathered across the decades of 88% of the original sample, received hypothesized that performance is coaching practice. The handbook multisource feedback from another most likely to improve when (a) is organized into five sections. Part survey. Results indicated that those feedback confirms that changes one elaborates on the foundations senior managers who worked with are necessary; (b) recipients have of coaching, including the editors’ an executive coach were more likely a positive attitude about feedback view of coaching for development than other managers to set specific in general; (c) recipients perceive a and a framework for leadership rather than vague goals and solicit need to change their behavior; (d) development coaching. Part two ideas for improvement from their they react positively to the specific addresses coaching for special supervisors. The managers who feedback; (e) they believe change populations such as women leaders, were coached also improved more is possible; (f) they set appropriate senior leaders, coaching across than other managers in terms of the goals to regulate their behavior; cultures, leaders of color. Part three ratings provided by direct reports and (g) recipients take action examines coaching for specific and supervisors. The effect size for that lead to skill and performance leadership challenges and capacities this difference was small, which improvements. HR professionals are such as emotional competence, raises some questions about the reminded that not all employees will change and transition, physical well- utility and return on investment of benefit equally from multisource being. Part four deals with different executive coaching. feedback. Providing a realistic coaching techniques such as artful preview of the feedback system to coaching, solution-focused coaching, potential recipients might be one constructive-development coaching. means of improving the long-term Part five addresses extending the effectiveness of the system. coaching practice in terms of blended coaching, coaching teams and creating a coaching culture. The handbook also includes a CD-ROM library of 25 CCL publications on

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topics such as enhancing 360-degree intervention. Insufficient number of Ragins, B. R., Cotton, J. L., & feedback for senior executives, studies have been published on that Miller, J. S. (2000). Marginal coaching for action, preparing relationship to include in the present mentoring: The effects of type of for development and using your meta-analysis. mentor, quality of relationship, executive coach. and program design on work and career attitudes. Academy of Lankau, M. J., & Scandura, T. Management Journal, 43, 1177- Mentoring and A. (2002). An investigation of 1194. Developmental personal learning in mentoring Not all mentoring relationships Relationships relationships: Content, are created equally. Like other antecedents, and consequences. Allen, T. D., Eby, L. T., Poteet, work relationships, mentoring Academy of Management Journal, M. L., Lentz, E., & Lima, L. relationships fall along a continuum 45, 779-790. (2004). Career benefits associated of effective to ineffective, functional with mentoring for protégés: A The focus of this study was on to dysfunctional. The present meta-analysis. Journal of Applied learning in the workplace, especially authors distinguish between “good Psychology, 89, 127-136. in terms of the antecedents and mentors,” “bad mentors” and “good consequences of learning in the enough mentors,” who have value A total of 43 studies were reviewed context of mentoring relationships. albeit limited. This latter group using meta-analytic procedures to A measure of personal learning was is termed marginal mentors. A determine the overall career benefits developed and tested. Aspects of national sample of 1,162 employees of mentoring for the protégé. personal learning were found to was surveyed to determine the Comparisons between mentored and mediate the relationships between relationship between job and career non-mentored protégés were made mentoring and organizational attitudes and the presence of a on objective (e.g., compensation) consequences of role mentor, type of mentor (formal or and subjective (career satisfaction) and job satisfaction; however, no informal), the perceived quality of outcomes. Results suggested positive evidence was found to support the the mentoring relationship, and the career effects of mentoring on hypothesis that personal learning perceived effectiveness and design protégé compensation, promotions, mediates the relationships between of a formal mentoring program. career satisfaction and commitment, mentoring functions and turnover Results suggested that satisfaction expectations for advancement, and intentions. As organizations seek to with a mentoring relationship was a job satisfaction. No differences become more efficient and effective more important predictor of protégé were reported for intention to learning entities, these results attitudes than the other factors. One stay. Although there were positive suggest that mentoring relationships implication of these findings is that effects of mentoring on the career can play a role in this process by senior leaders should be developed outcomes of the protégé, the effect enabling individual employees to to be effective mentors and not sizes for the objective outcomes enhance their personal learning. leave this important leadership (compensation and promotion) were component to chance. It has been small. Although there were generally said that one of the most important positive career effects associated jobs of a leader is to develop other with mentoring, no evidence was leaders. Good mentoring is one way presented that mentoring enhances to help with that leader development the development of protégés as mandate. leaders. Thus, the results are still out as to whether mentoring is an effective leadership development 52 Developing Leadership Talent

Shared Leadership A key consideration is developing In doing so, the trauma resuscitation Hiller, N. J., Day, D. V., & the capabilities of blue-collar team team is able to uphold and protect Vance, R. J. (2006). Collective members to participate as informal its two key values: quality of patient enactment of leadership roles and leaders of their teams. treatment (i.e., reliability) and team effectiveness: A field study. training and development of more Leadership Quarterly, 17, 387-397. novice members (i.e., capacity Klein, K. J., Ziegert, J. C., building). The findings from this The focus of this study was on Knight, A. P., & Xiao, Y. (2006). study illustrate the dynamic nature shared or collective leadership Dynamic delegation: Shared, of leadership processes in extreme in autonomous work teams. In hierarchical and deindividualized teams and how ongoing delegation particular, the central research leadership in extreme action can be used to serve the ultimate questions concerned the extent teams. Administrative Science goal of ensuring high-quality to which collective leadership was Quarterly, 51, 590-621. patient care while also developing enacted in a state department of the technical skills and leadership transportation road maintenance This qualitative field study examined capabilities of more junior team teams (N = 45) and its correlation the leadership of extreme action members. with performance. A 25-item teams, defined as teams in which measure of collective leadership highly skilled members cooperate to perform urgent, unpredictable, was developed and tested. Items Pearce, C. L. (2004). The interdependent tasks with life- measured responses to the frequency future of leadership: Combining and-death consequences. These that team members shared in vertical and shared leadership teams also must cope with frequent (a) planning and organizing; (b) to transform knowledge work. changes in team composition and problem solving; (c) support and Academy of Management Executive, ongoing training and development consideration; and (d) development 18(1), 47-57. and mentoring. Confirmatory factor of novice members. The researchers analyses supported the four-factor interviewed team members of Traditional hierarchical approaches structure for the collective leadership medical trauma resuscitation teams to leadership can be effective, but instrument. Results from a series (attending surgeons, surgical the situations in which those forms of hierarchical regression analyses fellows, nurses and residents) and of leadership will be successful are showed significant and positive observed teams as they performed becoming less common. Especially relations between scores on the their emergency response duties. in areas termed knowledge collective leadership instrument and At the core of this system is what work—areas requiring significant the ratings of team performance the researchers term “dynamic investment in and voluntary provided by an external supervisor. delegation,” whereby senior leaders contribution of intellectual capital The implications of these results (e.g., attending physicians) engage in by skilled professionals—there has include the possibility that leadership rapid and repeated delegation (and been a trend toward team-based in blue-collar teams need not be the withdrawal) of the active leadership leadership. One reason for this is domain of a single leader. Leadership role to more junior members of that it is becoming increasingly can be enacted collectively and the team. This is described as a more difficult for any one person informally by team members. In type of leadership dance in which to be an expert on all of the various addition, collective leadership was the three senior leaders (attending, aspects of the work or to handle shown to be positively related to fellow, resident) step forward or the significant leadership challenges team effectiveness. Thus, efforts back in response to the patient’s associated with knowledge work. devoted to developing collective changing condition and to the The author outlines conditions leadership can be directed to even actions, competence and confidence under which shared leadership is the lowest levels of organizations. of others in the leadership hierarchy. more appropriate, including tasks

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that are highly interdependent, always stem from the actions and require a great deal of creativity and behaviors of an individual leader. are highly complex. In addressing One possible reason for the broader how to develop shared leadership, acceptance of shared leadership the role of the vertical leaders, as today is that the challenges faced well as the role of organizational by organizations cannot be solved systems, is examined. The formal by any individual leader—at least leader can contribute to developing not all the time. After setting the shared leadership through team foundation for the evolution of design, boundary management shared leadership and why it is and support of shared leadership. needed more than ever today, the Organizational systems that facilitate book addresses additional issues that shared leadership include training are organized into four sections: and development systems, reward (1) conceptual models of shared systems and organizational culture. leadership; (2) methodological issues In conclusion, the author points in the study of shared leadership; out that shared leadership is not a (3) studies of shared leadership in panacea for organizations. The issue applied settings; and (4) critiques is not one of either vertical (i.e., of shared leadership theory. In traditional) or shared leadership but conclusion, the limits and liabilities rather (a) when leadership is most of shared leadership are discussed. appropriately shared; (b) how one These include a lack of knowledge, develops shared leadership; and (c) skills and abilities in the team; lack how to best use both vertical and of goal alignment between team shared leadership to leverage the members and between the team and capabilities of knowledge workers. the organization; lack of time to develop shared leadership; and a lack of receptivity to shared leadership. Pearce, C. L., & Conger, J. A. As noted by the editors, the field of (Eds.). (2003). Shared leadership: shared leadership holds remarkable Reframing the hows and whys of opportunities for researchers and leadership. Thousand Oaks, CA: HR practitioners, and this volume SAGE. offers a state-of-the-art treatment of this quickly emerging field. This edited volume provides a comprehensive overview of the issues and advances in shared leadership. The book begins with an examination of the historical underpinnings of shared leadership showing that the concept has slowly evolved since the 1920s and the work of Mary Parker Follett. The challenge to its more rapid advancement is the prevailing leader- centric mindset that leadership must

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