Where Leaders of the Future Will Come From…

 by  Andrew Cooke, Growth & Profit Solutions

Forecasts on where the future leaders will come from, and where they will not!The Ticking Timebomb for Talent

Are you worried about the lack of management and leadership talent in your business?  You should be.  There is an underlying shift in demographics that is driving this – and it isn’t going to go away.  The baby-boomers are beginning to retire in large numbers and this represents a major exodus of experience and talent.  This problem is being compounded by the influx of a smaller, less-experienced generation of workers, managers, and leaders.

How did we get into this mess?

Let’s be honest here, business has only looked at its available pool of talent only in the short-term.  A few forward-thinking companies may have looked at this issue over a slightly longer time the horizon, but they are few and far between.  The problem is that business is driven by short-term results, and this is at the expense of the long-term.  Leadership is increasingly short-term as a result and this is reflected in the average tenure of CEOs continuing to decline.

So where are we now with our leadership pipeline, and where will we be in the future?  What will this mean for our ability to recruit and retain the talent we need to survive and thrive both now and in the future?  The 2012 Global Leadership Survey from SHL provides a worldwide view of leadership potential spanning 25 countries.

The Findings

The countries which currently today have the most effective leaders are not those with the greatest leadership potential.

Developed Countries Decline, Developing Countries on the Rise

Notably, it is the developing countries that will have greatest leadership potential in the future, in part because they have the populations that are large and growing, and that many developed countries which will experience leadership shortages where the population growth is low.  This is summarized in the graphic below:

Why is this happening?

The main reason for this is the demographic shift that is occurring, with baby boomers beginning to retire and the next generation of the workforce (Gen Y) being significantly smaller in size and with less experience.  The implications as regards this for future effective leadership are:

  • For developing countries –rising education standards and a culture of entrepreneurialism are some of the environmental factors that are driving emerging economies.  They have a huge growth opportunity if they can identify, nurture and develop this potential.
  • For developed countries – although they have a strong supply of leaders today, they will be impacted if they continue to fail to invest in learning and development to cultivate their future supply of leaders and remain competitive.

What constitutes an effective leader?

An effective leader has many of the key leadership characteristics including:

  • The ability to build relationships
  • The ability to solve problems
  • The ability to communicate effectively
  • The ability to think laterally
  • The ability to influence
  • The ability to respond positively to change
  • The ability to organize
  • The ability to motivate and be motivated

Potential Leaders of tomorrow

Leaders of tomorrow are those individuals who exhibit some of the key leadership characteristics (outlined above) but require additional development to realize their full leadership potential.

Companies need to build their leadership talent pipeline and look outside their home markets for further talent. Understanding the supply of leadership is crucial for organizations.  As such, they need to develop and invest in their future leadership talent for the long-term in order to remain competitive in the global economy.

The Four Quadrants

Leadership Development 2b

Countries fall into four quadrants:

In The Talent Vacuum – countries with leadership gaps both today and in the future;

Talent Leapfroggers – countries in short supply of leaders today but have a huge pool of leadership potential in the future;

Talent Timebombs – countries with strong supplies of leaders today and gaps in leadership supplies in the future;

Talent Trailblazers – Countries with strong supplies today and in the future;

Depending on your geography you will fall into one of the four quadrants – the question is, given where you are, what are you going to do to address the long-term problems and implications in the now?

Five Steps to Cultivating Leadership Success

So what can you and your business do to build long-term success by building the necessary leadership skills and future pipeline?  There are 5 steps:

  1. Identify the behaviors and skills which make a successful leader in your organization;
  2. Have a complete overview of the leadership potential across your organization and don’t restrict that view to only those you think are high potential;
  3. Using data, benchmark your people against competitor talent and identify leadership shortages to avoid succession risk;
  4. Focus on development interventions including where to spend learning and development budgets and apply this across the business;
  5. Take a global view of where your leadership talent is located and be prepared to use creative strategies to source talent across borders to fill leadership gaps

What are you doing to develop and retain leadership and high-potentials in your organization?  Do you have a long-term view or are you driven by short-term requirements? Share your ideas, insights, and experiences here for others to benefit.

Share the knowledge, share the wealth!

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Using the Leadership/Management Matrix to Develop Your People

Leadership and management may complement each other, but they are very different

So which is more important, management or leadership? This is not the right question to ask, rather the question to ask what is the balance between management and leadership that you need to have? To answer this, you need to at what role each plays. Management ensures the stability and efficiency necessary to run today’s business reliably. Leadership creates the change needed to take advantage of new opportunities, to avoid serious threats, and to create and execute new strategies. The point is that management and leadership are very different, and when organizations are of any size and exist in environments which are volatile, both are essential to helping them win.

The Leadership/Management Matrix

The management/leadership matrix show what happens when you have weak or strong leadership interacting with weak or strong management.  The four quadrants are:

  • Doomed – weak management, weak leadership.  Here the business is run inefficiently and with no clear direction to guide and align people’s efforts, decisions and the allocation of resources.  People are not inspired or motivated to achieve high-performance, and the business is losing to its competitors.  The business is unlikely to survive beyond the short-term.
  • Innovative – weak management, strong leadership. Here the business is able to adapt quickly and effectively, but there is insufficient management and associated skills in place to drive stability, efficiency and to create the necessary order to manage the resulting complexity and create order from which to build.
  • Well run but bureaucratic – strong management, weak leadership.  Here the business is well-structured and managed; it works efficiently which is good while the status quo exists.  However, in an environment of change it finds itself relatively rigid and inflexible with its existing bureaucracy and organization being unable to adapt effectively.  This can expose the business with existing strengths potentially becoming major liabilities, potential competitors going unrecognized or changes in customer needs going unmet.
  • Well run and innovative – strong management, strong leadership.  Here there is a healthy balance of management and leadership skills and capacity.  The business has a clear direction around which everyone and all actions are aligned, people are inspired and motivated, and as a result they work both efficiently and effectively.  They are competitive, adaptive and have the right mix of skills, capacity enabled by a strong business culture which supports the people in their work.

Look at this matrix and, for you and your team, assess their level of management and their level of leadership.  People do not need to be a manager or a leader per se, nor is it about their position in their hierarchy. Rather it is how good they are at delivering on and exemplifying the attributes got management and leadership (see the table below for ideas).

Score yourself and each of your team members on leadership and management using the following scoring range of 0 (very weak) to 10 (very strong).  The two scorings will give you each individual’s relative positioning and your own.  A good idea is to assess people yourself, then get them to self-assess, and then to share your respective findings and discuss the differences/similarities. This is a good tool to identify where and how an individual needs to develop their management and/or leadership skills. This can then be used in helping put together their personal development plan.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Distinguishing Between Your Leaders and Your Managers

Leadership and management may complement each other, but they are very different

Most people use the words “management” and “leadership” interchangeably and usually only distinguish between the two by where the person is in the organizational hierarchy.  Here you have ‘leaders’ at the top, ‘managers’ in the middle, and ‘labor’ at the bottom. Simple, but wrong! There are significant differences between management and leadership, their areas of focus, what they do, how they do it, and their implications

A business needs to have both effective managers and effective leaders; it cannot operate without one of them. Leadership and management are different roles, not different people.  As such, all leaders are managers but not all managers are leaders.  Let me explain further.

There are many in management positions – those who control or administer part of the business who have a title such as “manager”, or “supervisor” or  “director” – who have the necessary management skills (for example, being able to plan, schedule time effectively, manage budgets etcetera). But titles do not make leaders.  To be a leader you need to have people who will willingly follow you.  This has two implications:aders.  To be a leader you need to have people who will willingly follow you.  This has two implications:

  • If no one is following you then you are just a manager.
  • You can have no formal title or authority but, because people follow you, you can be a leader.

As such, leadership is not a noun, it is a verb. But leadership is not just about having followers, and management is not just about control – there are differences that collectively make management and leadership very different but complementary. Kotter concisely defines management and leadership as the following:
“In fact, management is a set of well-known processes, like planning, budgeting, structuring jobs, staffing jobs, measuring performance and problem-solving, which help an organization to predictably do what it knows how to do well. Management helps you to produce products and services as you have promised, of consistent quality, on the budget, day after day, week after week. In organizations of any size and complexity, this is an enormously difficult task. We constantly underestimate how complex this task really is, especially if we are not in senior management jobs. So, management is crucial — but it’s not leadership.

Leadership is entirely different. It is associated with taking an organization into the future, finding opportunities that are coming at it faster and faster and successfully exploiting those opportunities. Leadership is about vision, about people buying in, about empowerment and, most of all, about producing useful change. Leadership is not about attributes, it’s about behavior. And in an ever-faster-moving world, leadership is increasingly needed from more and more people, no matter where they are in a hierarchy. The notion that a few extraordinary people at the top can provide all the leadership needed today is ridiculous and it’s a recipe for failure.”

The essence of the difference between management and leadership can be summarized in one sentence: Management is about coping with Complexity; Leadership is about coping with Change.  As such, Management is about Resources, Leadership is about People.  Let’s explore this further in the table below which highlights some of the key differences.

Key Differences between Management and Leadership

Management Leadership
Doing things right… Doing the right things…
Efficiency Effectiveness
Transactional Transformational
Speed Direction
Practices Principles
Things People
Manage complexity Manage change
Drive stability, efficiency, and order Drive innovation, adaptability and change
Task-focused People-focused
Operational role Situational role
Content is important Context is important

As you can see from this list there is a tension between management and leadership which, if you achieve the right balance between the two, can be highly productive and beneficial.
However, if you have management with weak leadership or leadership with weak management you will have an imbalance. We explore this in the next email when we look at the Leadership/Management Matrix tool.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

5 Steps to Creating Your Leadership Brand

Just as businesses need to build their brands, so leaders need to build their leadership brand.

You probably already have a personal leadership brand. But do you have the right one? And is it the one that will take you from where you are to where you want to be?

This is an important question as it is your leadership brand that conveys your identity and distinctiveness as a leader. It communicates the value you offer. If you have the wrong leadership brand for the position you have or the position you want, then your work is not having the impact it could. A strong personal leadership brand allows all that’s powerful and effective about your leadership to become known to your colleagues, enabling you to generate maximum value.

What’s more, choosing a leadership brand can help give you focus. When you clearly identify what you want to be known for, it is easier to let go of the tasks and projects that do not let you deliver on that brand. Instead, you can concentrate on the activities that do.

Five Steps to Building Your Leadership Brand

  1. What results do you want to achieve in the next year?

The first thing you should do is ask yourself, “In the next 12 months, what are the major results I want to deliver at work?” Take into account the interests of these four groups:

  • Customers
  • Investors
  • Employees
  • The organization
  1. What do you wish to be known for?

What are the six key descriptors which you need to have to balance your strengths and qualities? A good way to do this is to ask your boss, peers and some of your most trusted subordinates. “What are the traits that someone in this role (and/or future role) should exhibit?” Their responses will help you to refine your list.  For example, the traits you ultimately select might include being collaborative, deliberate, independent, innovative, results-oriented and strategic.

  1. Define your identity

The next step is to combine these six words into three two-word phrases that reflect your desired identity. This exercise allows you to build a deeper, more complex description: not only what you want to be known for, but how you will probably have to act to get there. For example, the above six descriptors could be combined into the following three phrases:

  • Independently innovative
  • Deliberately collaborative
  • Strategically results-oriented

Test these ideas with your colleagues.

  1. Construct your leadership brand statement, and then test it.

In this step, you pull everything together in a leadership brand statement that makes a “so that” connection between what you want to be known for (Steps 2 and 3) and your desired results (Step 1). Fill in the blanks:

“I want to be known for being ______________ so that I can deliver __________.”

For example: “I want to be known for being independently innovative, deliberately collaborative and strategically results-oriented so that I can deliver superior financial outcomes for my business.”

With your leadership brand statement drafted, ask the following three questions to see if it needs to be refined:

  • Is this the brand identity that best represents who I am and what I can do?
  • Is this brand identity something that creates value in the eyes of my organization and key stakeholders?
  • What risks am I taking by exhibiting this brand? Can I live this brand?
  1. Make your brand identity real

To ensure that the leadership brand you advertise is embodied in your day-to-day work, check in with those around you. Do they see you as you wish to be seen? If you say you are flexible and approachable, do others find you so?

Share your personal leadership brand with others. Let people know your evolving as a leader and ask them for their feedback. The exercise of forging a leadership brand requires day-to-day discipline to make it real, the courage to make the changes you need to make, and humility to ask and take on the ideas and advice of others.

Your leadership brand isn’t static; it continually evolves to the different expectations you face at different times in your career. Leaders with the self-awareness and drive to evolve their leadership brands are more likely to be successful over the long term — and to enjoy the journey more.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.