Leadership Superpowers

Transcription

1 Leadership Superpowers How the U.S. Stacks Up Jazmine Boatman, Ph. D., Richard S. Wellins, Ph. D., Jennifer Pesci-Kelly, with Stephanie Neal, M.A. The Talent Management Expert

2 Revolutionize leadership, revolutionize your business.

3 Leadership Superpowers How the U.S. Stacks Up Jazmine Boatman, Ph.D., Richard S. Wellins, Ph.D., Jennifer Pesci-Kelly, with Stephanie Neal, M.A. Development Dimensions International, Inc., MMXII. Pittsburgh, Pennsylvania. All rights reserved under U.S., International, and Universal Copyright Conventions. Reproduction in whole or part without prior written permission from DDI is prohibited.

4 ABOUT DDI For more than 40 years, DDI has helped the most successful companies around the world close the gap between where their businesses need to go and the talent required to take them there. Our areas of expertise span every level, from individual contributors to the executive suite: Success Profile Management Our process will quickly and accurately identify what success looks like for all of your critical roles. Selection & Assessment DDI offers the most comprehensive range of assessment, testing, and behavioral interviewing tools in the world. Leadership & Workforce Development We provide relevant and challenging learning experiences for all levels, from individual contributors and frontline leaders to mid-level and senior leaders. Succession Management Our consulting and tools will ensure a steady supply of ready-now leaders who will meet your business needs today and tomorrow. Performance Management DDI s comprehensive approach to performance management enables the execution of business strategy by creating alignment, accountability, and focus. DDI s approach to talent management starts by ensuring a close connection of our solutions to your business strategies, and ends only when we produce the results you require. ABOUT DDI S CENTER FOR APPLIED BEHAVIORAL RESEARCH The is part of the continuing series of trend research conducted by DDI s Center for Applied Behavioral Research (CABER). CABER s publications cover a wide range of talent management issues and are designed to keep HR professionals in touch with best practices and trends. CABER also conducts dozens of evidence-based research studies with DDI s clients that show the relationship between their talent management practices and changes in workforce and organizational performance. CABER s research, including this report, is available at CONTACT INFORMATION Jazmine Boatman, Ph.D. Manager, CABER Development Dimensions International 1225 Washington Pike Bridgeville, PA Phone: jazmine.boatman@ddiworld.com Richard S. Wellins, Ph.D. Senior Vice President Development Dimensions International 1225 Washington Pike Bridgeville, PA Phone: rich.wellins@ddiworld.com 4

5 A SPECIAL REPORT FROM DDI S GLOBAL LEADERSHIP FORECAST 2011 In this research brief we share data from DDI s Global Leadership Forecast 2011 with survey responses from 1,897 HR professionals and 12,423 leaders from 74 countries. The focus of the Global Leadership Forecast is on organizational trends and best practices around building leadership bench strength. This brief examines how the United States fares against the rest of the world in leadership in the forecast study. We compared U.S. findings with findings from Asia, Latin America, Europe, and Australia/New Zealand. THE NEXT LEADERSHIP SUPERPOWER: HOW THE U.S. STACKS UP For more information on the Global Leadership Forecast, including the full global report, please visit HOW THE U.S. STACKS UP The U.S. has long been an economic superpower, boasting global brands and a seat at the heart of the world s economy. But is the U.S. a leadership superpower? To answer that question, we examined several factors in our research: leaders view of leadership quality, leadership readiness for the future, and overall management culture. Based on that examination, in this report we will discuss whether U.S. leaders are better prepared than their global counterparts for meeting business challenges in an increasingly complex global economy. 5

6 GLASS HALF FULL OR HALF EMPTY? To really understand leadership quality, we went right to the source, asking leaders themselves about performance and practice in their own organizations. For the U.S., the good news is that compared to other countries, leaders were the most positive when asked about the current quality of leadership. In fact, when compared to leaders in Asia and Europe, over 20% more U.S. leaders reported that their leadership quality was very good or excellent (Figure 1). FIGURE 1 LEADERS RATING OF QUALITY OF LEADERSHIP IN THEIR ORGANIZATION Australia / NZ Asia Latin America US Europe 0% 10% 20% 30% 40% 50% 60% Only 30% of U.S. HR professionals rated leadership quality as very good or excellent. One explanation for this is passion. In other words: Are leaders passionate about their jobs as leaders? Are they in it for the right reasons growing a strong team and building the business or more for the money and power? U.S. leaders rated themselves highest in passion 36% described their peers as very high or extremely high in passion. Asia and Europe landed at the bottom of the list with only 25% and 26%, respectively, rating their peers as passionate. The HR sample, however, was much more pessimistic when rating leadership quality around the world. Only 30% of U.S. HR professionals rated leadership quality as very good or excellent still the highest internationally. HR professionals in Asia were the lowest only 21% gave their leaders high marks. While in comparison the U.S. fared well in leadership quality, these marks are hardly stellar. Only half of the leaders surveyed looked around at their peers in the organization and gave them high marks and fewer than one in three HR professionals thought their leadership landscape looked promising. So, one could say, the U.S. is the best of the worst. 6

7 THERE IS NO ONE WAITING IN THE WINGS While current leadership quality is lacking, there is an even dimmer picture when it comes to future bench strength. Organizations around the world understand the importance of having leaders for the future, yet at least half rated their bench strength as mixed, with leaders ready to fill only some critical positions. Even worse, only one out of every three global leaders rated their organization s bench strength as strong or very strong, a sign there are dangerous shortages in key business positions. HR rated bench strength even lower only 13% of HR professionals in the U.S. were confident in their organization s future leadership readiness (Figure 2), among the lowest ratings around the world. And as baby boomer retirements loom, things could get worse before they get better, as we see more seats open up without enough leaders ready to fill them. FIGURE 2 HR RATING OF ORGANIZATIONAL BENCH STRENGTH Only 13% of HR professionals in the U.S. were confident in their organization s future leadership. THE NEXT LEADERSHIP SUPERPOWER: HOW THE U.S. STACKS UP 26% 21% 13% 16% 9% % of HR rating their organization s bench strength as strong or very strong Europe US Latin America Asia Australia/ NZ THE DANGER OF LOW PRIORITY ON INNOVATION As the global economy emerges from the economic downturn, every organization is focused on growth. But no organization can grow if it s not infusing its culture with innovation. Innovation is the new currency of competitiveness. It has to be more than getting leaders behind innovation they need to be in front of it, building an environment where new ideas flourish and their teams have the freedom to explore. 7

8 When it came to the future of innovation as a leadership skill, the U.S. landed at the bottom of the list. When it came to the future of innovation as a leadership skill, the U.S. landed at the bottom of the list. When leaders rated the criticality of innovation as a leadership skill (Figure 3), only 28% saw it as a top skill for the future, compared with 35% on the global average and 39% in Asia. When we look at the current state of how innovation is being cultivated within teams, only half of leaders in the U.S. rated themselves as highly effective at fostering innovation, which was in line with the global average. FIGURE 3 THE IMPORTANCE OF INNOVATION AS A SKILL OVER THE NEXT THREE YEARS 35.8% 39% 27.6% 29.4% 30.8% % of leaders rating fostering innovation and creativity critical for the future US Australia Europe Latin Asia America U.S. business casual attitude about innovation is dangerous for the future of business, especially when compared to Asia, who rated it the highest. That attitude isn t just about commitment time or mindshare. It s also about actual dollars in organizational spending on R&D. According to the Boston Consulting Group, organizations in the United States (49% indicated they would) were less likely to increase their budgets than China (80%), Chile (82%), and India (73%). What is the impact? Every year Bloomberg Businessweek profiles the 50 most innovative companies in the world, and U.S. organizations have always dominated the list. However, for the first time ever, the late 2010 list had more companies from the Top 50 that were from outside the U.S. than from inside. Thomas L. Friedman points out in his book, The World is Flat, that the U.S. has slipped from 1st to 4th in the number of patent applications. When it comes to the future of business, innovation is leading edge. Clearly, the U.S. isn t. 8

9 MANAGEMENT CULTURE... STANDING STILL While businesses have leapt ahead in introducing new products and services, creative business models, and groundbreaking technology, the business practice of management has remained at a crawl in comparison. Organizations still lean on the same hierarchical, formal, and bureaucratic management practices that they ve used over the last five decades. DDI worked with Gary Hamel, an influential business thinker, professor, and author along with his Management Lab to identify the key factors that either facilitate or hinder the way in which the work of management is carried out. Leaders around the world were asked: How far has your organization s management culture evolved? THE NEXT LEADERSHIP SUPERPOWER: HOW THE U.S. STACKS UP While the U.S. was on par or above the average across all other regions in many of the factors, (Figure 4), leaders in the U.S. gave themselves lower marks than their peers in other cultures in innovation, decisions, and organizational structure. FIGURE 4 PERCENT OF LEADERS WHO RATED THEIR ORGANIZATION PROGRESSIVE ON FACTORS OF MANAGEMENT CULTURE. Goals Power Structure Decisions Innovation Influence Values Bureaucracy 0% 10% 20% 30% 40% 50% 60% 70% 80% US Everyone Else FACTORS OF MANAGEMENT CULTURE GOALS: Are organizational goals focused on bottom-line growth, or do they include other goals? POWER: Is power held by people who value the status quo or people who value innovation? STRUCTURE: Is the organizational structure hierarchical and rigid or fluid and flexible? DECISIONS: Are key business decisions closed or open for discussion? INNOVATION: Are the opportunities to innovate only for senior leaders or for everyone? INFLUENCE: Is influence based on a person s formal position or his or her abilities? VALUES: Are values shared and meaningful to employees or are they not? BUREAUCRACY: Are management processes bureaucratic or a source of competitive advantage 9

10 While U.S. organizations excel when it comes to creating meaningful values and awarding power to those who value innovation, they were lower when it came to hierarchy, decision-making processes, and bureaucracy. CONCLUSION SO, IS THE U.S. A LEADERSHIP SUPERPOWER? The U.S. is far from the front when it comes to leading the global economy into the future. The Global Leadership Forecast demonstrated that the U.S. may have excelled in some areas, but the maturity of American business and management practices didn t really help when it came to more progressive topics like innovation, bench strength, and management culture. In fact, these three practices which are all about the future of business were the greatest gaps for the U.S. The maturity of the country s businesses, and its leadership position in the world economy, doesn t really change the fact that the U.S. is far from the front when it comes to leading the global economy into the future. So how can U.S. organizations accelerate their leadership to keep up with the speed of business? Think about the future of the business and identify and develop leaders who can lead the future organization to success. Succession management shouldn t be limited to senior positions, but instead extended to the entire leadership pipeline. (Read the report, Time for a Leadership Revolution, for more on this). Innovation shouldn t be ignored leaders are clearly behind when it comes to understanding how to drive innovation, and organizations have to mandate that skill as a priority to address the obstacles that stand in the way of true innovation. Finally, when it comes to management culture, organizations shouldn t underestimate the power that removing hierarchies, extending power and influence, and opening up decision making have on the organization s overall performance. U.S. organizations need to make sure they have the right leadership talent, the right culture for that talent, and arm those leaders with the skills they need to compete in the future global marketplace. 10

11 ABOUT THE AUTHORS Jazmine Boatman, Ph.D., manages DDI s Center for Applied Behavioral Research (CABER), DDI s hub for research to support evidence-based management. Jazmine directs research that measures the impact of selection and development programs on organizational performance and uncovers new knowledge and information about global workplace practices and issues. With special expertise in measurement and evaluation, Jazmine has consulted with organizations in a wide variety of industries. Richard S. Wellins, Ph.D., is senior vice president at DDI. Rich is responsible for leading DDI s global research programs, launching new solutions, and executing DDI s brand and marketing strategies. During his tenure at DDI, Rich has authored five books on leadership and teams and has written for more than 20 publications on global talent management. Rich has helped organizations around the world develop their senior leaders. He also serves as a judge for CNBC s Asia Business Leaders Awards, interviewing dozens of Asia s top CEOs each year. REFERENCES Boatman, J. & Wellins, R. S. (2011). Global leadership forecast 2011: Time for a leadership revolution. Pittsburgh, PA: DDI. Howard, A. & Wellins, R. S. (2009). Holding women back: Troubling discoveries and best practices for helping female leaders succeed. Pittsburgh, PA: DDI. McKinsey (2010). Moving women to the top: McKinsey global survey results. McKinsey Quarterly. Stroope, S. & Hagemann, B. (2011). Women, water, + leadership. Training+Development, March 2011, Wittenberg-Cox, A. & Maitland, A. (2008). Why women mean business. West Sussex: John Wiley & Sons. Jennifer Pesci-Kelly is a project manager with Development Dimensions International s (DDI) executive leadership solutions. Jennifer has lead studies on hiring, promotion, workforce, and leadership for DDI. She also manages strategic marketing planning for DDI's executive leadership products and services. Stephanie Neal, M.A., a research associate with DDI s Center for Applied Behavioral Research (CABER), conducts evaluation studies and research on leadership and human talent in the workplace. She has worked with clients in various industries to produce evidence-based measurement in the areas of leadership development, performance management, and selection. To start your leadership revolution and learn more about DDI s Global Leadership Forecast 2011, please visit

12 ABOUT DEVELOPMENT DIMENSIONS INTERNATIONAL: For over 40 years, DDI has helped the most successful companies around the world close the gap between where their businesses need to go and the talent required to take them there. Our areas of expertise span every level, from individual contributors to the executive suite: Success Profile Management Selection & Assessment Leadership & Workforce Development Succession Management Performance Management DDI s comprehensive, yet practical approach to talent management starts by ensuring a close connection of our solutions to your business strategies, and ends only when we produce the results you require. You ll find that DDI is an essential partner wherever you are on your journey to building extraordinary talent. Montreal+ ^ Detroit Toronto+ New York City *Chicago ^ Pittsburgh+ +San Francisco +Dallas Atlanta+ Monterrey+ Mexico City+ +London +Paris Moscow Poznań Düsseldorf + Istanbul Kuwait City* +Beijing Tokyo+ Seoul +Shanghai ^ Hong Kong Taipei ^ Mumbai ^ Bangkok Manila+ Lima +Santiago ^São Paulo Johannesburg + ^ = Acceleration Center * = Training Center += Training & Acceleration Center +Kuala Lumpur Singapore+ +Jakarta Sydney + +Melbourne +Auckland CONTACT US INFO@DDIWORLD.COM *H9GX* H9GX MKTLDMIS Development Dimensions International, Inc., MMXII. All rights reserved. THE AMERICAS WORLD HEADQUARTERS PITTSBURGH MEXICO CITY TORONTO EUROPE/AFRICA DÜSSELDORF LONDON PARIS The Talent Management Expert ASIA-PACIFIC MUMBAI SHANGHAI SINGAPORE SYDNEY