FRUARY9,2006

tartFindingTomorrow'LeaderNow
VandanaAllmanandarrConchiewithJerrHadd

Theketodicoveringwhowilltakeour
organizationtothenextlevel
Thehottopicatwatercoolertheedai:"Who'retiringnow?Andwho'takingtheirplace?"
That'notaurprie.In2006,theoldetoftheaoomerwillturn60,which
willmeanigchangeintheworkplace.AccordingtotheU..Departmentof
Laor,aoomerwillreachthetraditionalretirementageof65etween
2011and2029,and"theirretirementwilldramaticallaffecttheworkforceof
thefuture."
venthoughthiarealit,toomanexecutiveteamareneglectingtohave
thoughtfuldicuionaouttheirleaderhippipeline.Thequetionthe
houldeakingi:Whoicapaleofguidingourorganizationintothefuture?
Forward-thinkingorganizationknowthattheneedleaderandaleaderhipucceionplanthat
deliverreult.Motucceionplanaredeviedwithgoodintention,utfewhavetheright
criteriaandmeaurementinplacetodeliverthoereult.
Aouthinkaoutourorganization'ucceionplan,keeptheepointinmind:
Whatexperienceandkillfactorareeentialtoourfuture?
Howwillouaethetalentofpotentialleader?
Howcanouetaetheperformanceofemergingleader?

killandexperience.Acandidate'kill,knowledge,andexperiencemuteconideredand
weightedappropriatel.Forexample,toleadthefinancialfunctioninaninternationalcompan,a
candidate'immerioninandexpertieaoutexchangerate--andhiorherappreciationof
culturalnuance--couldeverimportant.
Talent.Aneffectiveleaderhipucceionplan
tartwithfundamental,eginningwithatalent
review.Whohaleaderhippotentialinour
organization?Andhowdoouidentifthoepeople?
Identifingleaderhippotentialrequireawato
predicthoweffectivelacandidatewillperformina
leaderhiprole.Theaccuracofthatprediction
dependonavarietoffactorandourceofevidence,notjutwhetheranemploeeha
demontratedleaderhipcapailitinhiorherpreentrole.
Currentperformance.Whatarethekeperformanceoutcomeforthecandidate'currentrole?How
welliheorhemeetingthem?Reviewingcurrentperformanceprovideinightintohiorher
potentialperformanceinaleaderhiprole.Itidifficulttoimaginepromotingpoorperformerinto
leaderhippoition.
Integratingmeaureofacandidate'currentperformancewithanaccuratepredictionofleaderhip
potentialicrucialtoaneffectivetalentidentificationproce.TheucceionPlanningGridelow
offerauefulwafororganizationtoconideracandidate'currentperformanceandleaderhip
potential.Inthefollowingection,we'lldicuhowtoevaluatecurrentperformance,thenexplore
howtoaeacandidate'potentialforleaderhipucce.

valuatingcurrentperformance
Thefirttepinthetalentidentificationproceideterminingwhatmetrictouetoplotcurrent
performance.Whatarethekeperformanceoutcomefortherole?Inotherword,whatactionor
reponiilitiearenon-negotiale,andwhichonearemerel"nicetohave"?
Motperformancemeaurementtemlack
implicitandclaritoraretooheavilweighted
towardujectivefactor.Performance
meaurementtpicallfallintooneofthee
categorie:
Poormetric.omeorganizationuemetric
thatmeaurethewrongthingormeauretherightthingineffectivel.temliketheecan
actuallencourageehaviorthatruncountertotheorganization'goalorvalue.
Toomanmetric.Otherorganizationueanumer-happpotpourriofmetric.Intemlike
thee,emploeeareoftenconfuedaoutexpectationandhaveahardtimeknowingwhat'
importantintheirrole.Theendupchaingaftermultiplemetricandareneverquiteure
whetherthearedoingtheworkthatmattermot.Inthiituation,fewemploeearealeto
performtheirjowell,letaloneatexcellence.

Nometric.ometime,there'nomeaurementatall.
xampleofkewedmeaurementtemaound.InonecallcenterGalluptudied,cutomer
ervicerep(CR)weren'tratedonhowwelltheolvedcutomer'prolem;intead,thewere
ratedontheirailittoadheretorule,uchatakingreakattheappropriatetime.o,toget
goodevaluation,CRatthicompantaketheirreakontime,uttheoftenenduptranferring
cutomertoadifferentCR,whothenmuttarttheprolem-olvingprocealloveragain.Iit
anwondertheircutomerareunhapp?Inanothercompan,aleexecutivewereheld
accountalefor13differentmetricthatmeauredeverthingfromrevenueandprofittocounting
coldcall.Anothercompanhaduchtrongemploeerelationhipthattheverideaoftalking
aoutperformanceandmetricwaconideredacrilegiouecaueitdiruptedteamharmon.
Toplotperformanceconitentlandaccuratel,organizationmut:
Identifquantifialemeaurethatdriveperformance.Thiinotalwaea.Itrequire
organizationtoavoidujectiveaementorirrelevantmeaure.
Ifmultipleperformancemeaureareuedforapecificrole,cominetheemeaureintoa
ingleratingthatreflecttherelativeignificanceeachmeaurehaonuinegrowth.
Calirateperformancemeauretoacommonandcomparalecaleothecaneaccuratel
comparedontheucceionPlanningGrid.Thimameanaccountingforfactorucha
differenceinlocationormarketopportunit.
Holdlinemanageraccountaleforexportingtalentinternall.Greatmanagerhaveaknackfor
identifing,growing,andmovingtalentwithinanorganization.Thihelpexpandthe
organization'performancecapacitwhilepreervingaworkgroup'ailittoachievetop
performance."Hoardingtalent"doenotaidleaderhipdevelopmentorutainedgrowth.
Aeingleaderhippotential
Determininghowtopotleaderhippotentialcanechallenging.Whenaeingpoileleader,
executiveoftenrelheavilongutintinctandperonaljudgment,whichhaveprofoundlimitation.
Partoftheprolemithattheexitingcropofleadergenerallhaaprettgoodpictureofwhatit
currentltaketoeuccefulintheirrole.Iteemlogicaltothemthatthehouldealeto
pot"riingtar"whoaredeervingoffutureadvancement.utourexperienceuggetthatthe
arenotconitentlgoodatit.

Well-meaningexecutivemagoofaratooerveandevaluateleaderhiproletodeterminethe
ehavioralcharacteriticthatarenecearforucceintherole.Thenacoringproceiued
toaetheecharacteritic.Thereitremendouvalueinclearlarticulatingleaderhip
competencethiwa;itendatrongmeagethattheorganizationvalueleaderhipandknow
whatittaketoperformatexcellenceinaleaderhiprole.
Unfortunatel,thikindofaementalohaerioulimitation.It'noteafororganizationto
maintainojectivitandconitencaoutwhatieingaeed.Thewillhavetoeparticularl
vigilanttopreventunintendediaefrominfluencingtheiraement.Thichallengei
evidencedtheoervationthatmanleaderhipteamlackdiverit,whetheriteinage,gender,
race,ordiailit.
Uingavalidated,predictiveaementthatigroundedinreearchiafarmoreeffectivewato
aeaperon'potentialforucceinaleaderhiprole.Giventhatanorganization'futureret
onitailittoidentifanddevelopleader,uingavalidatedpredictiveaementieential.
TheGallupLeaderhipAementiagood
exampleofoneuchtool.uiltonreearch
conductedacroindutrieandinnumerou
organizationthroughouttheworld,thitool
meaureinnateleaderhiptalentandaee
apiringleader'talentinrelationhiptothoethe
areeekingtoucceed.Itprovideanojective
meaurethatcanhelpcompanieachievediveritandavoidadverehiringimpact.Itcanalo
provideaenchmarkofexitingleaderhiptrengthwithinacompanorexecutiveteam,awella
aepotentialleaderinlightofthoetrength.
Howdoeameaurelikethiworkinpractice?Let'a,forexample,thatGallupiakedtomeaure
apotentialleader'fitwithCompanA'exitingexecutiveleaderhipteam.Firt,Gallupwould
quetiontheleaderhipteammemeruingtheexecutiveleaderhipaement,meauring
leaderhipailitinfourcrucialdimenion.(Thiaementaloprovideamorecomplexanali
withineachoftheedimenion;thiin-depthanalihaeenomittedforthepurpoeofthi
article.)Thefourdimenionare:
Directionmeaurefuturefocuandtrategiccapailit.Itaee"igpicture"aptitudeand
readthofthinking.
Drivemeaureprimarmotivationandinfluence.Itaeewhatmotivateleaderandhow
theenlitupportandcommitment.

Relationhipmeaureacomplexrangeoftalent.Itaeetheimportanceofcloe
relationhip,whetheraperonhanaturalnetworkingailitie,whetherheorhe"read"people
well,andwhethertheperongetcloeinacoachingrole.
Managementevaluatemanagementandoperationalailit.Itaeeoperationalthinking,
organizedthinking,andnaturalcapacittothriveoncomplexit.Italoaeeaperon'goal
orientation.
ThereultiareportdetailingcoreforCompanA'chiefexecutiveofficer,chieffinancialofficer,
chiefoperatingofficer,andfiveotherexecutiveteammemer,ahowninthegraphic"xecutive
TeamLeaderhipReport":

Athegraphichow,theindividualteammemerhowtrongcoreindifferentleaderhip
dimenion.Generallpeaking,though,thiteamiahighldriven,hard-charginggroupthati
operationallatute.Youcanimaginethemrollinguptheirleeveandthrowingthemelveatever
challengetheface--andforthemotpart,the'llovercometheirchallenge.

Althoughit'likelthattheworkwelltogether,motoftheexecutiveonthiteamhowlower
coreontheRelationhipcomponent;workiwhatringthemtogether.Thealohowlower
coreonDirection.Thiuggetthattheteamwillfunctionwellwhenworkprovideaclear
direction,thoughthemanotadapteailtochange.ThanktotheirDriveandManagement
talent,thiteammaeexpertatqueezingcotoutofanoperation,utthemaeleadept
atanticipatingnewmarkettrendorexploitingnewtrategicopportunitie.
IfoulookattheprofileoftheCO,it'clearwhoiprovidingtheexecutiveteam'Direction.Thiia
high-performinggroup,utit'lecertainwhetherthewillremainooncetheCOmoveon.A
martteamuilder,thiCOhaurroundedherelfwithpeoplewhocomplementher.However,
doehefullappreciateherowncontriutiontotheexecutiveteamorwhatitwilltaketomatch
thoecontriutiononcehemoveon?
CompanA'profilerevealtwoleaderhipchallenge.Firt,thiteamneedtoeeklong-term
ucceorwhocanutainleaderhipcapacitacurrentexecutiveretire.Andit'imperativethat
theeekaleaderwithaviionforthefuturewhenthe'rerecruitinganewCO.
econd,eachnewperonwhojointheexecutiveleaderhipteamneedtohaveamuch
leaderhiptalent--ormore--thantheperonheorheireplacing.Fororganizationtogrow,top
leaderhipneedtocommittohiringucceorwhoeojectivelaeedleaderhiptalent
trengthen,notweaken,theorganization'leaderhipcapacit.
Pullingthepicturetogether
Foreverkeleaderhiproleinanorganization,potentialleaderhouldeevaluatedagainta
ucceionmatrixuingojectivemeaureofperformanceandleaderhiptalent.Thiapproach
willprovideamorecompletepictureofthoewhohavethepotentialtoeucceful,ahownin
theampleucceionPlanningGridelow.

Organizationhouldinvetthemottimeandenergdevelopingthehigh-potentialgroup.Uingthe
ucceionPlanningGridcanalohelporganizationidentifemergingleaderwhomaneed
additionalexperience,kill,andknowledgetoconverttheirpotentialintoreult.When
organizationadoptthiapproachfortheirleaderhiporexecutiveteam,thecaneffectivel
managetheirucceionplanningneed.
oardmemerandcutomerarecountingoncompanietoediligentinucceionplanningin
leaderhiprole.Chooingapoorleadercantarnihacompan'randpromieothinternalland
externall.oevercompanhathereponiilittoeadiciplined"talentcout"--touea
rigorou,validatedprocetopotriingtar--andtofoterandadvancethattalent.
VandanaAllmanithecoauthorofAnimal,Inc.:auineParaleforthe21tCentur.
arrConchieithecoauthoroftrengthaedLeaderhip.
JerrHaddiaformerwriteratGallup.

RLADAT: Feruar9,2006

OURC: Galluphttp://www.gallup.com/uinejournal/21337/tart-finding-tomorrow-leader-now.apx
CONTACT: GallupWorldHeadquarter,901Ftreet,Wahington,D.C.,20001,U..A
+1202.715.3030

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