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Keynote Speech – “Change the Company Culture by Upgrading Leadership Development” (Jack Zenger)

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In this episode, we present Jack Zenger’s keynote address “Change the Company Culture by Upgrading Leadership Development.” This is a live recording from our 2017 Leadership Summit recently held at Sundance Resort in Utah.

Historically the objectives for ideal leadership development included acquiring self-awareness and new skills, accelerating the implementation of these skills, and then following up with long-term sustainment of those behavior changes.

During this session, Jack takes a broader look at leadership development and how it impacts the culture of the organization. As the pace of change accelerates, most organizations realize the need for their culture to keep pace with changing technology, evolving markets and the broader cultural changes. The most practical, effective way to change culture is to change leaders through ongoing development.

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Keynote Speech – “Change the Company Culture by Upgrading Leadership Development” (Jack Zenger)

  1. 1. © 2017 Zenger Folkman CHANGE THE CULTURE BY Upgrading Leadership Development How to Transform an Organization Dr. Jack Zenger CEO, Zenger Folkman This is a live recording of Dr. Jack Zenger’s Keynote Address at Zenger Folkman’s 2017 Leadership Summit.
  2. 2. © 2017 Zenger Folkman Share 2 Attributes About Your Organization • What inspires you? • What do you wish was different?
  3. 3. © 2017 Zenger Folkman What is Culture? • Behavior that is consistent over time • “Smell of the place” • “How we do things around here” • Defines who we are • Recurring actions • Mindsets • Influences how people feel
  4. 4. © 2017 Zenger Folkman Culture and Organizational Performance • Research by Kotter and Heskett. • Explains why one company succeeds and another fails in an industry. • There are other forces: –Ethical lapses –Mistaken strategy • “Culture eats strategy for lunch.” • Culture provides stability and energy.
  5. 5. © 2017 Zenger Folkman Do Organizations Need to Change Their Culture? • Markets change and the organization has not kept pace. –Online shopping –Book retailing • Companies usually wait too long because changing means walking away from the current business model. • Senior executives often know no other way. • Companies are on the list of Fortune’s Global 500 for increasingly shorter times.
  6. 6. © 2017 Zenger Folkman “If you want to change the culture of an organization, change how it develops its leaders.” Options for Changing Culture • New executive • Restructure—current leaders in new roles. • Campaign—slogans, posters, i.e., “We’re going to be innovative.” • Change the behavior of senior leaders. – Culture is behavior – Senior leaders set the tone • Change the development process for all leaders. Jack Welch
  7. 7. © 2017 Zenger Folkman • Gradual process (think orthodontia). • Recognize the strengths of your culture. –Culture’s never all good or bad. • Culture is behavior that can be changed. • Changing behavior works best in social context (team activity). Principles of Culture Change
  8. 8. © 2017 Zenger Folkman Notion of “Precursor Behavior” Want to improve safety practices? • Try a campaign of housekeeping. Want to improve innovation? • Make it okay to fail. That doesn’t come from merely saying, “It’s okay to fail.” Have a senior leader describe their biggest mistake as a feature of your next few management meetings. Want to improve the customer experience? • Ask leaders to add time to their team meeting agendas for members to share how they have delighted a customer.
  9. 9. © 2017 Zenger Folkman Change Leadership Development! • What’s wrong with current approaches?
  10. 10. © 2017 Zenger Folkman Criticisms of Leadership Development • Not tied to organizational strategies • Not learning from work experience • Teaching methods that don’t change behavior • Managers not involved • No measurement of improvement • Minimal follow up and sustainment • Focused on the individual, not on teams or culture • Management policies and practices not in harmony with development
  11. 11. © 2017 Zenger Folkman Success of Leadership Development • Many successes • People can and do change
  12. 12. © 2017 Zenger Folkman Aren’t Leaders Born That Way? • The ability to change lies at the heart of all we do. • Some believe personalities are set in stone at age of 16. • Recent evidence refutes that idea. – 8,625 people, studied four years apart, showed changes which were tied to overall life satisfaction.
  13. 13. © 2017 Zenger Folkman 120 Leaders had Fatal Flaws 20 51 0 10 20 30 40 50 60 70 80 90 Pre-Test Post-Test OverallLeadership EffectivenessPercentile Comparison of Pre-Test and Post-Test Results Study based on results of 120 leaders in five different organizations
  14. 14. © 2017 Zenger Folkman 281 Leaders With No Fatal Flaw Study based on results of 281 leaders in five different organizations 60 82 0 10 20 30 40 50 60 70 80 90 Pre-Test Post-Test OverallLeadership EffectivenessPercentile Comparison of Pre-Test and Post-Test Results
  15. 15. © 2017 Zenger Folkman Engagement/Commitment Scores for Direct Reports Study based on results of 346 leaders in five different organizations 57 70 0 10 20 30 40 50 60 70 80 Pre-Test Post-Test Employee Engagement/Commitment Percentile Comparison of Pre-Test and Post-Test Results
  16. 16. © 2017 Zenger Folkman Leadership Development is a High-leverage Activity Leaders are extremely influential. • Our data shows they strongly influence every measurable business outcome: employee engagement, innovation, intention to stay, productivity, sales performance, and customer satisfaction. • Think of them as the rudder of a large ship moving through the water. Relatively small in size, they have enormous influence on the direction and success of the organization. • They shape the culture.
  17. 17. © 2017 Zenger Folkman Leadership Development is a High-leverage Activity To do what I am proposing requires:  Taking risks vs. playing it safe  Boldness  Ensuring that the content of your development is aligned with the top leaders’ strategy and their desires for the future of the culture  Clearly defined, mutually agreed upon objectives
  18. 18. © 2017 Zenger Folkman Changing Leadership Development 1. Powerful methods of delivery 2. Build development into work 3. Increase managerial support 4. Involve all HR processes, including performance management 5. Change mindset about who is responsible for development 6. Practice concept of “herd immunity” 7. Focus on specific outcomes
  19. 19. © 2017 Zenger Folkman Individual Focus • Lectures • Cases • Action learning • Simulation-teaching decision making • Reading 1. Methods of Delivery Collective focus • Highly experiential • Simulations • Self-awareness via 360-degree feedback • Skill building (coaching, feedback, leading team meetings, presentation skills) • Action learning • Coaching to insure accountability Conventional, Generalized Content Specific Objective for Development
  20. 20. © 2017 Zenger Folkman 2. Build Development Into Daily Work
  21. 21. © 2017 Zenger Folkman • Remove the conceptual barrier between development and productive work activity. • Your job provides opportunity for real-time, deliberate practice. Development and Work Don’t Have to Be Separate
  22. 22. © 2017 Zenger Folkman Combine Development and Work 1. Learn new information 2. Build new relationships 3. Initiate special interest groups 5. Develop new habits of planning and reflection 6. Create new feedback mechanisms 7. Restructure your job 8. Lead out in technology 9. Experiment with leadership or management practices
  23. 23. © 2017 Zenger Folkman 3. Involve Your Manager
  24. 24. © 2017 Zenger Folkman Impact of Manager Support 33 50 74 0 10 20 30 40 50 60 70 80 Unsupportive Manager Somewhat Supportive Very Supportive Manager PercentofLeadersWho FeelTheyHaveImproved Level of Manager Support
  25. 25. © 2017 Zenger Folkman Performance management is a prime example. 4. Build Leadership Development Principles into all HR systems
  26. 26. © 2017 Zenger Folkman Imbed competencies used in development for: • Selection • Onboarding • Performance Management • Compensation Make HR Systems Consistent
  27. 27. © 2017 Zenger Folkman 5. Who’s Responsible for Development? In the past, it has been the: • Individual • Manager • HR function • Coach We should all want our colleagues to perform at their best. We should all be interested in the development of each other.
  28. 28. © 2017 Zenger Folkman 6. Involve a Critical Mass Concept of herd immunity: • Success of mass immunization programs hinge on reaching a high percentage of individuals. • When a parent fails to immunize a child, it jeopardizes the child and the community. • If I fail to become a better leader, I infect the company.
  29. 29. © 2017 Zenger Folkman 7. Focused Development: What Does the Culture Need? • Better collaboration • Greater risk-taking • Innovation • Respectful candor • Escalating trust in other team members • Greater inquiry to balance advocacy • Clearer understanding of senior leaders’ thinking • Coaching skills • Feedback skills • Inspiring and motivating • Deciding with data Foundational SkillsOutcomes
  30. 30. © 2017 Zenger Folkman Frances Hesselbein “Culture does not change because we desire to change it. Culture changes when the organization is transformed; the culture reflects the realities of people working together every day.”
  31. 31. © 2017 Zenger Folkman Thank you Contact us at info@zengerfolkman.com or www.zengerfolkman.com