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The Future of Extraordinary Leadership

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As the business climate continues to evolve, what does Extraordinary Leadership look like? What does research tell us will be the important competencies of the future? What are the most accurate tools for predicting the success of leaders within organizations? How do we create an irresistible culture where those identified as having incredible potential can grow and thrive? How do we address the emerging need for new skills? What is the best way to provide the feedback that others need to grow and develop?

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The Future of Extraordinary Leadership

  1. 1. The Future of Extraordinary Leadership Dr. Joe Folkman President, Zenger Folkman
  2. 2. © 2017 Zenger Folkman Retention and Engagement Deloitte’s article, Becoming irresistible: A new model for employee engagement, calls out “retention and engagement” as the second most important issue in the minds of business leaders: • Gallup, 2014 research: Only 13% of employees are engaged; 26% actively disengaged • Glassdoor: Only 54% of employees would recommend their company as a good place to work • High Tech: 66% of employees believe they could find a better job in less than 60 days • 80% of Organizations: Say their employees are overwhelmed with information and activity at work • Millennials: 70% expect their employers to focus on societal or mission-driven issues • Millennials: 44% are in leadership positions but not receiving development • Millennials: Still feel left out; only 28% believe their organization is fully taking advantage of their skills https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html
  3. 3. © 2017 Zenger Folkman Increasing Engagement Becoming irresistible… suggestions to improve engagement: 1. Make work meaningful 2. Foster great management 3. Establish a flexible, humane, inclusive environment 4. Create ample opportunities for growth 5. Establish vision, purpose, and transparency in leadership https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html
  4. 4. © 2017 Zenger Folkman Increasing Engagement Becoming irresistible… suggestions to improve engagement: 1. Make work meaningful 2. Foster great management 3. Establish a flexible, humane, inclusive environment 4. Create ample opportunities for growth 5. Establish vision, purpose, and transparency in leadership https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html Effective Leadership
  5. 5. © 2017 Zenger Folkman 3 Insights to Driving Effective Leadership 1. Leadership Development and Contagion 2. Differentiating Leadership Competencies 3. Power of Positive Feedback
  6. 6. © 2017 Zenger Folkman Leadership Development and Contagion
  7. 7. © 2017 Zenger Folkman Leadership Development Prioritization Most organizations say that leadership development is one of their top priorities. The trend we see is… - Emphasis on reducing the time commitment for leadership development - Smaller numbers of leaders being developed - Encouragement for leaders to develop on their own
  8. 8. © 2017 Zenger Folkman As Dr. Phil Would Say, “How’s That Working for You?” 4.3 13.4 17.3 28.4 27.6 34.7 38.8 35.6 33.3 28.4 23.4 14.7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Organization 3 Organization 2 Organization 1 % of High Potential Leaders at Leadership Quartiles Bottom 25% Next 25% Middle 25% Top 25%
  9. 9. © 2017 Zenger Folkman Case Study 9 55 0 10 20 30 40 50 60 70 80 90 100 HIPO Leaders (239) PercentileScore Compared to Zenger Folkman Norms * Based on results for 239 leaders. Based on total scores, which aggregate manager, peer, direct report, and other responses, but exclude self scores. Range 5 99 39% Below Average 61% Above Average 11% in the Bottom Quartile Large Company (>100,000 employees): Premier Employer, Premier Brand, Hi-Pos
  10. 10. © 2017 Zenger Folkman Year to Year Leadership Effectiveness Scores 1 59 58 57 46 0 10 20 30 40 50 60 70 80 90 100 Yr 2014 Yr 2015 Yr 2016 Yr 2017 PercentileScore Percentile Scores Compared to Zenger Folkman Norms
  11. 11. © 2017 Zenger Folkman Employee Engagement Scores for Direct Reports of Leaders 1 40 0 10 20 30 40 50 60 70 80 90 100 922 Direct Reports of Leaders PercentileScore Employee Engagement Index: • I feel confident that this organization will achieve its strategic goal. • My work environment is a place where people want to go the extra mile. • I would recommend this organization as a good place to work. • I rarely think about quitting my job to go to a different organization. • All in all, I'm satisfied with this organization as a place to work. Percentile Scores Compared to Zenger Folkman Norms
  12. 12. © 2017 Zenger Folkman Year to Year Employee Engagement Scores for Direct Reports 1 39 41 44 34 0 10 20 30 40 50 60 70 80 90 100 Yr 2014 Yr 2015 Yr 2016 Yr 2017 PercentileScore Percentile Scores Compared to Zenger Folkman Norms
  13. 13. © 2017 Zenger Folkman Intention to Leave 28 39 0 10 20 30 40 50 I rarely think about quitting my job to go to a different company Percentage responding neutral or negative ZF Norms Case Study 922 Direct Reports
  14. 14. © 2017 Zenger Folkman 16 Differentiating Competencies by Mean Score 1 4.16 4.16 4.11 4.05 3.95 3.93 3.91 3.91 3.88 3.88 3.87 3.86 3.84 3.80 3.78 3.71 3.6 3.8 4.0 4.2 4.4 Takes Initiative Displays High Integrity and Honesty Drives for Results Technical/ Professional Expertise Champions Change Solves Problems and Analyzes Issues Develops Others Establishes Stretch Goals Develops Strategic Perspective Builds Relationships Innovates Connects to the Outside World Communicates Powerfully Collaboration and Teamwork Practices Self-Development Inspires and Motivates Others Case Study Leaders
  15. 15. © 2017 Zenger Folkman Importance Rankings 1 Manager A Manager B Manager C Peer Direct Report Self Other Total Inspires and Motivates Others 101 101 11 302 551 135 447 1648 Develops Strategic Perspective 84 77 14 270 392 113 429 1379 Drives for Results 126 111 13 272 311 129 351 1313 Communicates Powerfully 69 65 16 242 321 96 348 1157 Solves Problems and Analyzes Issues 82 72 13 200 239 57 274 937 Develops Others 25 32 4 116 340 67 190 774 Innovates 77 55 11 166 182 56 203 750 Champions Change 50 57 10 174 202 35 210 738 Collaboration and Teamwork 52 37 11 158 172 45 228 703 Connects to the Outside World 45 45 12 142 202 41 215 702 Builds Relationships 40 49 8 134 188 38 187 644 Displays High Integrity and Honesty 26 31 6 94 205 31 143 536 Technical/ Professional Expertise 41 29 5 98 130 44 156 503 Establishes Stretch Goals 32 34 6 113 103 36 135 459 Takes Initiative 34 24 3 84 79 10 112 346 Practices Self-Development 8 13 1 23 63 7 40 155
  16. 16. © 2017 Zenger Folkman Developing Others Ranking Comparisons—Direct Reports 4.19 4.17 4.17 4.14 4.05 4.05 4.02 3.98 3.94 3.94 3.92 3.88 3.86 3.83 3.74 3.73 3.6 3.8 4.0 4.2 4.4 Takes Initiative Drives for Results Displays High Integrity and Honesty Technical/ Professional Expertise Solves Problems and Analyzes Issues Champions Change Establishes Stretch Goals Develops Strategic Perspective Innovates Communicates Powerfully Develops Others Connects to the Outside World Builds Relationships Collaboration and Teamwork Inspires and Motivates Others Practices Self-Development Case Study Leaders Importance Ranking Direct Report Inspires and Motivates Others 551 Develops Strategic Perspective 392 Develops Others 340 Communicates Powerfully 321 Drives for Results 311 Solves Problems and Analyzes Issues 239 Displays High Integrity and Honesty 205 Champions Change 202 Connects to the Outside World 202 Builds Relationships 188 Innovates 182 Collaboration and Teamwork 172 Technical/ Professional Expertise 130 Establishes Stretch Goals 103 Takes Initiative 79 Practices Self-Development 63 Direct Reports rate the effectiveness of their leaders at Developing Others in 11th place—but rank it 3rd in terms of importance.
  17. 17. © 2017 Zenger Folkman Developing Others Ranking Comparisons—Managers Case Study Leaders Managers rate the effectiveness of these leaders at Developing Others in 4th place—but rank it 15th in terms of importance. Importance Ranking Manager A Drives for Results 250 Inspires and Motivates Others 213 Develops Strategic Perspective 175 Solves Problems and Analyzes Issues 167 Communicates Powerfully 150 Innovates 143 Champions Change 117 Connects to the Outside World 102 Collaboration and Teamwork 100 Builds Relationships 97 Technical/ Professional Expertise 75 Establishes Stretch Goals 72 Displays High Integrity and Honesty 63 Takes Initiative 61 Develops Others 61 Practices Self-Development 22 4.28 4.26 4.16 4.07 4.03 3.99 3.96 3.94 3.93 3.88 3.87 3.85 3.85 3.84 3.81 3.77 3.6 3.8 4.0 4.2 4.4 Takes Initiative Displays High Integrity and Honesty Drives for Results Develops Others Technical/ Professional Expertise Builds Relationships Practices Self-Development Champions Change Establishes Stretch Goals Connects to the Outside World Innovates Collaboration and Teamwork Solves Problems and Analyzes Issues Develops Strategic Perspective Inspires and Motivates Others Communicates Powerfully
  18. 18. © 2017 Zenger Folkman Case Study: Who is Most Effective at Developing Others? 1 51 57 63 73 0 10 20 30 40 50 60 70 80 Top Management (23) Senior Management (168) Middle Management (21) Supervisors (10) Percentile Overall Leadership Effectiveness
  19. 19. © 2017 Zenger Folkman Case Study Check-in Which of the Becoming irresistible… suggestions does this organization seem to be missing? 1. Make work meaningful 2. Foster great management 3. Establish a flexible, humane, inclusive environment 4. Create ample opportunities for growth 5. Establish vision, purpose, and transparency in leadership https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html
  20. 20. © 2017 Zenger Folkman Leadership is Contagious for Managers and their Direct Reports 29 41 51 58 75 0 10 20 30 40 50 60 70 80 Bottom 10% Next 25% Middle 30% Next 25% Top 10% EffectivenessofDirectReportonTop20 Items Effectiveness of Manager on Top 20 Items Managers’ Effectiveness Matched up Direct Reports of Managers Higher performing managers had direct reports with higher performance Poor performing managers had direct reports with lower performance Results based on 265 leaders © 2016 Zenger | Folkman. All Rights Reserved.
  21. 21. © 2017 Zenger Folkman Leadership is Contagious for Peers 35 42 48 57 72 0 10 20 30 40 50 60 70 80 Bottom 10% Next 25% Middle 30% Next 25% Top 10% AverageEffectivenessofPeerofthe PrimaryPeerTop20Items Effectiveness of the Primary Peers on Top 20 Items Peers’ Effectiveness Matched up Direct Reports of Peers Higher performing peers had peers with higher performance Poor performing peers had peers with lower performance Results based on 265 leaders © 2016 Zenger | Folkman. All Rights Reserved.
  22. 22. © 2017 Zenger Folkman Table Discussion What has the trend in your organization been in terms of emphasis and commitment to leadership development? In an ideal world, what would you recommend to prepare leaders for the future?
  23. 23. © 2017 Zenger Folkman Differentiating Leadership Competencies
  24. 24. © 2017 Zenger Folkman The Big Question To prepare leaders for the future, there is a big question: What is the target? • What behaviors need to be improved? • What leadership competencies leverage high performance?
  25. 25. © 2017 Zenger Folkman © 2017 Zenger Folkman © 2017 Zenger Folkman
  26. 26. © 2017 Zenger Folkman Leadership Competencies • Over 15 years ago we published The Extraordinary Leader and identified 16 differentiating competencies • Are those 16 competencies still relevant today? • Are there some new competencies that are critical for the future?
  27. 27. © 2017 Zenger Folkman Trends in Competency Models: Competencies of the Future Competency: Managing virtual teams What leaders need to do to be successful in managing virtual teams: • Communicate effectively • Build positive relationships with others • Value diversity and inclusion • Collaborate
  28. 28. © 2017 Zenger Folkman Design Thinking Design Thinking Dimension Competency Feasibility • Technical Expertise • Analyzes Issues/solves Problems Desirability • Customer Focus • Relationship Building Viability • Strategic Perspective • Champions Change • Business Acumen Innovation • Fostering Innovation A critical skill for leaders in the future Model from IDEO
  29. 29. © 2017 Zenger Folkman Short/Simpler Example: - Making strategy happen - Enterprising - Driving profitable execution - Leading people courageously and effectively - Fostering cross-border collaboration Trends in Leadership Development and Competency Models Behavioural Description Competency Actively seeks more responsibility and influence Takes Initiative Acts as a source of specialist knowledge for others Technical Expertise Produces a range of alternative solutions to problems Problem Solving Pushes self hard when faced with difficult targets, willingly putting in extra effort when required Drives for Results Can facilitate effective brainstorming Innovation Often recommends new ways of working Innovation Enterprising
  30. 30. © 2017 Zenger Folkman © 2017 Zenger Folkman 122,767 Leaders Analyzed 1,595,971 Assessments utilized from research over the last 10 years 44 Unique assessments analyzed highest & lowest Identified Differentiating Competencies 10%
  31. 31. © 2017 Zenger Folkman What did we discover? It all depends on what you are looking for!
  32. 32. © 2017 Zenger Folkman Some organizations want a short and simple competency model. Our latest research confirms that the six leaders levers will provide a powerful approach to leadership development. Leadership Levers
  33. 33. © 2017 Zenger Folkman The Power of Leverage—Building Critical Strengths 3 Developing high competence in additional Leadership Levers continues to raise your leadership effectiveness. Developing high competence in three of the Leadership Levers raises you to the top 10% of global leaders! We followed the data from over 1 million 360-degree assessments on over 75 thousand global leaders. Developing high competence in just one of the Leadership Levers raises you to the 72nd percentile of global leaders!
  34. 34. © 2017 Zenger Folkman Character • Displays high integrity and honesty Personal Capability • Acumen (Technical Expertise) (LL) • Solves problems and analyzes issues • Innovates (LL) • Learning Agility (Self-Development) Focus on Results • Drive for results (LL) • Establishes stretch goals • Takes initiative • Decisiveness • Risk Taking What did the research indicate about existing and new competencies? Interpersonal Skills • Communicates powerfully and prolifically • Inspires and motivates others to high performance (LL) • Builds relationships (LL) • Develops others • Collaboration and teamwork • Valuing Diversity Leading Change • Develops strategic perspective (LL) • Champions change • Customer & External Focus Embedded competencies Speed – Bold - Resiliency
  35. 35. © 2017 Zenger Folkman Table Discussion Where is your organization in this process of identifying and adjusting competencies?
  36. 36. © 2017 Zenger Folkman Changes to Performance Management More coaching discussions! 1. Make work meaningful 2. Foster great management 3. Establish a flexible, humane, inclusive environment 4. Create ample opportunities for growth 5. Establish vision, purpose, and transparency in leadership https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html
  37. 37. © 2017 Zenger Folkman Power of Positive Feedback
  38. 38. © 2017 Zenger Folkman Preference for Avoiding or Giving Positive and Negative Feedback Avoids Neutral Gives Positive Feedback 37% 19% 44% Negative Feedback 21% 16% 63% Strongest Preference for giving negative feedback! 37% Avoided Giving Positive Feedback! Feedback Preferences • We created a self-assessment that measures preference for giving positive or negative feedback. • 10 paired comparison items measure comfort or aversion to giving positive and negative feedback. Results of this assessment on 7,808 people.
  39. 39. © 2017 Zenger Folkman Those Who Preferred Giving Negative Feedback Rated Themselves More Positively 30.6% 72.5% 40.7% 78.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Avoids Giving Positive/Avoids Giving Negative (468) Avoids Giving Positive/Gives Negative (1,963) Gives Positive/Avoids Giving Negative (830) Gives Positive/Gives Negative (1935) PercentAgree I would rate myself as highly effective at providing others with honest, straightforward feedback.
  40. 40. © 2017 Zenger Folkman FACT: Leaders who give tough feedback think they are better at developing others. Do the recipients agree?
  41. 41. © 2017 Zenger Folkman Fact: Those With a Preference for Giving Positive Feedback Were Rated More Positively 41 36 53 52 0 10 20 30 40 50 60 Avoids Giving Positive/Avoids Giving Negative (21) Avoids Giving Positive/Gives Negative (81) Gives Positive/Avoids Giving Negative (29) Gives Positive/Gives Negative (92) PercentileScores Effectiveness Rated by Others at Giving Honest Feedback in a Helpful Way Feedback from Others 328 managers’ 360-degree feedback results were compared with results from a self-assessment that measured their preference for giving positive or negative feedback. In the 360-degree assessment, an average of 13 respondents were asked to evaluate their leader’s behavior “Gives honest feedback in a helpful way.”
  42. 42. © 2017 Zenger Folkman Those With A Preference for Giving Positive Feedback Were Rated Better at Developing Others 40 37 55 54 0 10 20 30 40 50 60 Avoids Giving Positive/Avoids Giving Negative (21) Avoids Giving Positive/Gives Negative (81) Gives Positive/Avoids Giving Negative (29) Gives Positive/Gives Negative (92) PercentileScores Develops Others
  43. 43. © 2017 Zenger Folkman Those With a Preference For Giving Positive Feedback Were Rated as Better Leaders Overall 42 36 49 46 0 10 20 30 40 50 60 Avoids Giving Positive/Avoids Giving Negative (21) Avoids Giving Positive/Gives Negative (81) Gives Positive/Avoids Giving Negative (29) Gives Positive/Gives Negative (92) PercentileScores Overall Leadership Effectiveness
  44. 44. © 2017 Zenger Folkman The Good News for this Group .24 2.17 0 1 2 3 ZF Norm Summit Norm ZF Norm vs. Summit Norm Preference for Giving Positive Feedback
  45. 45. © 2017 Zenger Folkman Implications Preference for giving negative feedback Team members feel judged Leaders only looking for what’s wrong
  46. 46. © 2017 Zenger Folkman Implications Preference for giving positive feedback Team members feel valued & appreciated Corrective/ Negative feedback can also be given Higher ratings on feedback, development, and overall leadership

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