What Leaders at top companies do to drive predictive performance and engagement.

Risk. Reinsurance. Human Resources
Aon Hewitt
HR Leads
“What leaders at top companies do
to drive predictive performance &
engagement”
HR Leads June 2015
Presenter: Michael Gruber

2 HR LeadsAon | Working together
About HR Leads
• Continued initiative conducted quarterly across the region
• Intention is to provide a platform for the exchange of ideas between the HR leaders currently shaping the
future of human capital
• Each event is facilitated by a keynote speaker who will introduce the session with a thought-provoking
presentation
• Creates a unique networking opportunity for senior HR Professionals in the region

Overview
• Introduction
• The Business Case: Engaging Leaders, Predictive Performance and Results
• What differentiates Aon Hewitt Top Companies for Leaders
• Predictive Assessments – Challenges and Examples
• Knowledge Sharing and Discussion

DNA of a Aon Hewitt Top Company for Leaders®
3 Three Leader
Attributes
4 Four Disciplines
5 Five Fundamentals
Top
Companies
for Leaders®

3 Leader Attributes
Leading in Today’s World
1. Self-aware leaders - tremendous
understanding of their personal strengths as
well as weaknesses AND use this information
to become more effective leaders of others.
2. Resilience in TCFL Leaders through inclusive
cultures. Multiple perspective and ideas are
expected to help the organization meet fast
changing business challenges.
3. Top companies are identifying and building
engaging leaders who are stabilizers,
ambidextrous, and connected to people and
events inside/outside their organization.

4 Disciplines
What Differentiates Top Companies?
An integrated Talent Assessment & Development Framework makes it seamless,
continuous & sustainable
Leaders lead the way Practical and aligned programs and practices
Senior leaders have
a passionate and visible
commitment
to developing leaders 3
An intense focus
on talent permeates
every level of the
organization 4
1
2
Leadership strategy
clearly reflects the
overall business strategy
The development
of leaders is an
institutionalized practice
and mindset
Unrelenting focus on talent When leadership becomes a way of life

5 Fundamentals that Set Top Companies Apart in 2015
CEO, Board of
Directors, and
senior
management
involvement
Focus on the
talent pipeline
 Pervasive
 Comprehensive
 Integrated
 Consistent
 Simple and scalable
 Sustainable
Leadership and
talent mindset:
 Adaptable
 Innovative
 Reinvention; raising
the bar
 Customer-centric
Impact
and
results
Clear alignment
of business
strategy to talent
strategy and
practices

Use of Predictive Assessments
Key Messages
“Assessments should have
results which are Simple,
Consistent, Objective & Clear”
“You want people to make talent
decision based on the data, not
their interpretation of the data”
Aon Hewitt’s Top Companies for Leaders study suggest that 80% top APAC companies assess
talent from various lenses. Hence they use multiple tools for assessment like Assessment
Centers, Psychometric Tools, 360 Degree Survey, etc.
Data-Driven
Fit to Role &
Organization
Efficient
Linked to ROI

The Business Case: Engaging Leaders, Predictive
Performance and Results

The Relationship Between Strategic Clarity and Financial Performance
What is the financial impact of having a clear business case for leadership?
Percent Improvement in CAGR Operating Income Over 5 Years
103%
Increase
120%
Increase
.041
–.211
.007
Low Medium High
Degree of Clarity
Leaders having a strong reputation for cultivating talent
Holding leaders accountable for talent pipeline
Use of multiple data to inform strategic leadership decisions
Using specific leadership metrics
Relative importance of elements of business clarity
on improving CAGR operating income:
When looking at the relative
effects of the different ways
of creating a strong
business case, having
leaders with strong
reputation for cultivating
talent has the greatest
impact on financial results.

Business Case: Positive Perceptions of Senior Leaders improves Total
Shareholder Return
• Aon Hewitt’s ongoing Best EmployersTM research reports a high correlation (over 0.9) between senior
leadership and many drivers of engagement. This leads us to a phenomenon that we often call the
Multiplier Effect which states that improving perceptions of senior leaders will have a positive, indirect
impact on the drivers of engagement.
Companies with Ineffective
Leadership
Companies with Effective
Leadership
Leader Effectiveness 32% 76%
Engagement 47% 72%
TSR 1% 19%
When satisfaction with
senior leadership changes
from 32% to 76%
Engagement scores
also change
from 47% to 72%
TSR increases
from 1% to 19%
AON Hewitt Global Best Employer Research

The Cascade Effect: Engagement Starts at the Top
Quality of senior management has a strong impact on driving high financials of the
organization.

Business Case: Relationship Between Predictive Talent Practices and
Financial Results
Relative Importance of Different Types
of Assessment
• Delivering assessments at the
middle level is significantly
associated with CAGR EBIT.
• When comparing the mean
differences, the companies with a
high utilization rate of assessments
show 133% increase in CAGR EBIT
compared to those with a low
utilization rate.

What Differentiates the Top Companies

Top Companies Align Business Objectives with Talent Strategy
Action
speaks
louder
than words
Global top
companies
All others
Leadership investments are not impacted
by financial performance 92% vs. 68%
Leaders are held accountable (though
compensation, opportunities, and rewards)
for the strength of their talent pipelines
92% vs. 59%
Overall organizational performance
includes specific leadership metrics 96% vs. 74%
Senior leaders drive a culture of inclusion 96% vs. 79%
Clearly define their leadership strategy vs. 85%
Have clearly communicated the leadership
and talent strategy to employees
vs. 62%
Have stakeholders (e.g., board of directors,
executive committee) who understand how
leadership investments create value
vs. 90%
Include review of existing and future leadership
and talent needs into their business planning
vs. 86%
Have senior leaders who are aligned to the
direction their business is heading
vs. 90%
100%
of top companies

Top Companies Have Formal Leadership Strategies for...
100% 100% 100% 100% 100% 100% 100% 100%
83%
95% 95%
90% 90% 89%
80%
84%
72% 74%
Rewarding
leaders
Identifying high
potential/critical
talent
Selecting
leaders
Developing
leaders
Employee
engagement
Assessing
leaders
Retaining
leaders
Talent mobility
(e.g., moving
talent to
different
geographic
locations)
Diversity and
inclusion
Global top companies All others

Leaders Involvement in Leadership and Talent
Data reflects practices of the Global Aon Hewitt Top Companies for Leaders
Leader Involvement in Core Talent Practices Board of Directors CEO
Senior
Management
Middle
Management
Reviewing talent 88% 96% 100% 88%
Succession planning 92% 100% 100% 76%
Conducting performance discussions 52% 96% 96% 96%
Giving developmental feedback 60% 88% 100% 96%
Differentiating rewards based on performance 80% 92% 96% 96%
Demonstrating inclusive behaviors 80% 100% 100% 100%
Creating a collaborative environment 64% 96% 100% 100%
Percent of time spent on leadership and talent activities

What it Takes to Build Engaging Leaders
Supported by the organization, engaging leaders set the tone and see results
Global top
companies
All others
Our organization has a strong reputation in the marketplace
for cultivating talent
100% vs. 73%
Our leaders have a strong reputation internally for cultivating
talent throughout the organization
100% vs. 66%
Business unit leaders actively drive interventions following
engagement survey results
96% vs. 77%
Leaders receive coaching and development on skills and
behaviors to engage others
96% vs. 70%
Leaders are formally held accountable for employee
engagement
84% vs. 70%
We have a strong group of leaders that create high
engagement levels among their direct reports and others
they interact with in our organization
96% vs. 68%
Employee engagement levels rose since last review 83% vs. 62%

Top Companies Use a Variety of Assessment Techniques
100%
96%
84%
64%
80%
88%
85%
77%
51%
71%
360 degree Feedback Competency based
assessments
Personality assessments Cognitive assessments Leadership style
inventories
Valid and objective feedback assessments help companies understand individual
capabilities, guide development and inform talent planning

Assessments – Targeting tools to talent practices
Global Top Companies use specific assessments for strategic purposes.
Pervasive execution of assessment at all levels
Data reflects practices of the Global Top Companies for Leaders
360 Degree Feedback
Competency
based
assessments
Personality
assessments
Cognitive
assessments
Leadership style
inventories
Succession planning 36% 64% 24% 20% 16%
Talent review 36% 64% 20% 16% 16%
High potential identification 32% 68% 24% 24% 24%
Global assignment selection 20% 40% 12% 16% 16%
External candidate selection 8% 60% 44% 60% 24%
Promotions 32% 60% 24% 28% 12%
Leadership development 96% 84% 80% 32% 72%
High potential development 88% 88% 72% 32% 60%
Coaching 92% 72% 64% 24% 56%
By Level Senior Middle Front Line
360 Degree Feedback 92% 92% 72%
Competency based assessments 92% 96% 72%
Personality assessments 84% 84% 68%
Cognitive assessments 40% 36% 44%
Leadership style inventories 76% 72% 44%

High Potentials – Transparent Practices
Transparency
76% We remove high potentials from the pool once they have
been selected (as appropriate) 59%
68% We consider diversity and inclusion implications when
evaluating high potential pools of talent 44%
64%
We evaluate retention risks in our high potential pools
of talent 53%
56% We communicate to a person when he/she is no longer
designated as high potential 33%
Data reflects practices of the Global Top Companies for Leaders
Global top
companies
What they do differently…. All others
96% Others in the organization are aware that a high potential
classification exists 81%
88% Others in the organization are aware of the responsibilities,
opportunities, and expectations for high potentials? 64%
84% High potentials are aware of their status 63%
Evaluation

Leadership Development Practices at Top Companies
Development offered to all leaders at the following levels
Senior Middle Front-line Senior Middle Front-line
Developmental assignments 80% 76% 64% 52% 51% 37%
Special projects/teams 68% 72% 64% 46% 57% 44%
Coaching—internal provider 60% 80% 84% 35% 44% 32%
Structured opportunities for peer networking 68% 68% 60% 44% 45% 40%
Mentoring—internal provider 64% 76% 80% 35% 48% 47%
Leaders serving as teachers 80% 76% 56% 40% 42% 34%
Corporate philanthropy exercises (e.g., running
fundraiser, project management for relief effort)
68% 72% 72% 38% 40% 36%
Special assignments directly related to corporate
social responsibility strategy
56% 64% 56% 31% 28% 26%
Cross-cultural awareness training 72% 76% 68% 34% 38% 36%
Training on how to conduct performance discussions 100% 100% 100% 58% 74% 70%

Predictive Assessment Challenges and Examples

Criterion-Related Validity
In assessment the term Criterion-Related Validity is:
Presented as a correlation-coefficient (rxy)
Demonstrates the relationship between assessment scores and outcomes
9
8
7
6
5
4
3
2
1
Low High
Measure of Job
Performance
Outstanding
Acceptable
Deficient
Assessment Score
{
{
{
• Statistical relationship
measured via correlation
- 1.0 = perfect
relationship
- 0.0 = no relationship
• Perfect relationships are
never found
- No single test/test
battery can ever
predict job
performance perfectly
- Standard performance
measures are typically
unreliable indicators of
actual performance

Note: The ADEPT-15 personality model is based on the latest research in personality
psychology is built from the well accepted Five-Factor Model (FFM) of personality along with
additional leading concepts in workplace practices and research.
ADEPT-15TM

ADEPT-15TM
Using technology to control for faking and bias
Questions about ComposureQuestions about DriveQuestions about Power
People say they can always count on
me to get things done right
I tell others what to do if they need
some direction
I tell others what to do if they need
some direction
I tend to think better in stressful
situations
I think I could be a strong leader for
an organization
I think I could be a strong leader for
an organization
Matched on Desirability
Agree
Slightly
Agree
Agree
Slightly
Agree

What About an Individual’s Own Personality & Engagement?
Cooperativeness &
Sensitivity
People who are agreeable and
enjoy working with people and are
compassionate about their team
members will likely demonstrate a
healthy amount of organizational
commitment
Personality can tell us which employees are more likely to be Engaged…four
Aspects of ADEPT-15 show a correlation to individual engagement:
ADEPT-15 Personality Model
6 BROAD
WORKSTYLES
15 ASPECTS OF
PERSONALITY
1 TASK STYLE
2 ADAPTATION STYLE
3 ACHIEVEMENT STYLE
4 TEAMWORK STYLE
5 EMOTIONAL STYLE
6 INTERACTION STYLE
Note: The ADEPT-15 Personality Model is based on the latest research in personality
psychology is built from the well accepted Five-Factor model of personality along with
DRIVE relaxed vs. focused
STRUCTURE big picture vs. detail focus
CONCEPTUAL practical vs. innovative
FLEXIBILITY predictable vs. flexible
MASTERY doing vs. improving
AMBITION contented vs. striving
POWER contributor vs. leader
ASSERTIVENESS cautious vs. socially bold
LIVELINESS reserved vs. outgoing
COMPOSURE passionate vs. calm
POSITIVITY concerned vs. hopeful
AWARENES insulated vs. self-aware
COOPERATIVENESS independent vs. team oriented
SENSITIVITY stoic vs. compassionate
HUMILITY proud vs. humble
Drive
People ware are focused on
work are more likely to strive at
work despite obstacles, setbacks
and lack of managerial support
Positivity
Look for people who overcome obstacles and
demonstrate a hopeful perspective, they will share
positive stories about your organization with others
rxy = .19**
rxy = .11*
rxy = .14*
rxy = .24**

An Engaging Leader as Defined by ADEPT-15
Cooperativeness &
Sensitivity
Engaging Leaders Connect with
others and demonstrate
compassion, they are willing to
Serve & Grow their team
members
Six Aspects of ADEPT-15 show a correlation to the types of behaviors that leaders
who drive engagement tend to display:
ADEPT-15 Personality Model
6 BROAD
WORKSTYLES
15 ASPECTS OF
PERSONALITY
1 TASK STYLE
2 ADAPTATION STYLE
3 ACHIEVEMENT STYLE
4 TEAMWORK STYLE
5 EMOTIONAL STYLE
6 INTERACTION STYLE
Note: The ADEPT-15 Personality Model is based on the latest research in personality
psychology is built from the well accepted Five-Factor model of personality along with
Drive
Engaging leaders are those who Step
Up and make sure work gets done
Positivity & Composure
Engaging leaders can Stay Grounded and navigate
obstacles and overcome challenges
Liveliness
Engaging leaders can Energize
others

Applying Competency / Personality to Assess Compliance
Humility & Cooperativeness
Well Above Average
Humility is a key predictor of modeling integrity and the
willingness for someone to take accountability, act
appropriately and display modesty.
To use Personality effectively, start with a Specific Profile (e.g., Bayer Compliant)
6
Step 1. Select 5-6 of the 15 dimensions (aspects) relevant for Bayer Compliance
Step 2. Consider “how much” for each trait is needed for success at Bayer
1
Assertiveness & Liveliness
Above Average
We need people to stand-up and say something if
they see someone not adhering to Bayer
Compliance standard. They need to take that
initiative.
4
Aon Hewitt Personality Model
6 BROAD
WORKSTYLES
15 ASPECTS OF
PERSONALITY
1 TASK STYLE
2 ADAPTATION STYLE
3 ACHIEVEMENT STYLE
4 TEAMWORK STYLE
5 EMOTIONAL STYLE
6 INTERACTION STYLE
Note: The Aon Hewitt Personality Model is based on the latest research in
personality psychology is built from the well accepted Five-Factormodel of
personality along with additional leading concepts in workplace practices and
research.
Structure & Drive
Well Above Average
We have to make sure our team members are
comfortable with Structure and display a willingness
to follow rules. In addition, we want a healthy
amount of Drive.
Additional Area?

Fit Profile for XYZ
Aon Hewitt Personality Model
6 BROAD
WORKSTYLES
15 ASPECTS OF
PERSONALITY
AMBITION satisfied vs. striving
POSITIVITY worried vs. hopeful
AWARENESS insulated vs. self-aware
COOPERATION independent vs. team oriented
Mastery
• Deliver Excellence
• Value our People
Cooperation, Sensitivity
& Humility
• Put the Customer First
• Value our People
• Operate as One Team
• Act with Integrity
Unique configurations…
 Executive or HiPo Feeder Positions: Ambition & Power
 Sales Positions: Assertiveness & Liveliness
 Customer-Facing: Composure
1 TASK STYLE
2 ADAPTATION STYLE
3 ACHIEVEMENT STYLE
4 INTERACTION STYLE
5 EMOTIONAL STYLE
6 TEAMWORK STYLE
2
6
Step 1. Select which of the 15 dimensions (aspects) align most closely with XYZ’s Culture & Values
Step 2. Consider how much of each is critical for Fit – prioritize
Drive
• Deliver Excellence
• Take Personal Accountability
• Put the Customer First
1
The Aon Hewitt Personality Model is based on the latest researchin
personality psychology is built from the well accepted Five-Factor model of
personality along with additional leading concepts in workplace practices
and research.

Competencies include 43+ underlying “Enablers” created from extensive review of literature and client competency models
• Enablers are designed to be new “building blocks” for all leadership assessment
• Enablers can be mapped to an organization’s unique competencies
Sample Assessment Design based on validated competencies
Demonstrable behavior strands for
assessment identified for the Mid
Management level capability assessment
43 ENABLERS
for emerging
leaders
Competencies Robust set of tools
Applies Knowledge and Sound Judgment
Demonstrates Character and Integrity
Develops and Retains Talent
Establishes Direction and Shared Purpose
Interacts Effectively with Others
Manages Self
Works Productively and Drives Results

Michael Gruber’s Biography
Experience
Michael Gruber joined Aon Hewitt as a Partner Consultant in MENA in 2013. He was previously with the EMEA organization of Aon Hewitt
responsible for Leadership Consulting and Talent management. Before that, he gained Management experience in various organizations. His
last assignment prior to Aon Hewitt was Managing Director of a consulting firm with focus on Central Eastern Europe and ME.
With 20 years of Management and HR consulting experience, he is extending Aon Hewitt´s focus on Leadership Consulting in the Middle East.
His top priorities are developing the Leadership practice from an offering as well as a business development point of view.
Michael is a frequent inspirational speaker on leading HR and Leadership practices and pursues the mission: “to make the world a better place
to work”.
Qualifications
Masters in Business Administration from Henley University, UK
Michael Gruber
Partner – Aon Hewitt Middle East
Leadership Practice
michael.gruber@aonhewitt.com

Qudurat – an introduction
Qudurat, meaning ‘capabilities’ in Arabic, is the largest research project of its kind in the GCC.
Objectives of the study:
• Identify evidence-based solutions to mitigate talent risks in the Middle East region and drive higher engagement and productivity
• Enable organizations to examine the effectiveness of their nationalization efforts
• Explore what drives retention and engagement of talent in the Middle East
To date, the study has encompassed the views of over 23,000 respondents across seven countries (Bahrain, Egypt, Kuwait, Oman,
Qatar, Saudi Arabia and UAE), approximately half of which were nationals.
Qudurat is geared to research the implications of demographic and social changes on the region’s labor market:
• Increasing unemployment and saturation of jobs in the public sector
• Nationalization legislation and policy focus
• The entry of millennials into the workforce
• Increasing gender diversity in the workforce
• Aims to appreciate and identify regional solutions, dialogue and actions to key workforce issues arising from these changes
• Grounded in the latest theory and research in organizational behavior and is based on Aon Hewitt’s work with clients in the
region for over 11 years. It focuses on attributes of employees and their environment that can be influenced through intervention
The study is fully funded by Aon Hewitt as our investment in understanding the region’s HR challenges

Risk. Reinsurance. Human Resources
Aon Hewitt
HR Leads
THANK YOU.

What Leaders at top companies do to drive predictive performance and engagement.

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to What Leaders at top companies do to drive predictive performance and engagement.

Similar to What Leaders at top companies do to drive predictive performance and engagement. (20)

Recently uploaded

Recently uploaded (20)

What Leaders at top companies do to drive predictive performance and engagement.