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The Critical Role of Behavior in Management Success

20 2DecisonDynamicsLC

Predicting Success in Management Careers


Presentation to the HEC School of Management

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An Important Observation Research clearly shows that the vast majority of executives who fail in their job do so because of behavioral or cultural issues, not because of lack of skill or experience.

It therefore seems odd that most of the emphasis in business education, succession planning and hiring still focuses almost exclusively on skills and experience.
20 2DecisonDynamicsLC

Warren Bennis
Decision Dynamics
Decision Dynamics LLC

Drivers of Management Success


Aptitudes X Motivation = Success

Knowledge
Education Skills Experience

Leadership Styles Thinking Styles Emotions

Behaviors

Values
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Motives Expectations

Situation
Strategy Organization Culture/Value System Job Requirements
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What Styles Are and What Styles Arent


Its all about Situational Fit no absolute goods or
bads Different from traditional IQ and Aptitude assessments Habits of thinking and deciding

Unrelated to general intelligence Formed through experience


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Experience with other people - culture Direct experience with information and decisions

Styles can and do change Effectiveness depends on the situation


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Key Dimensions of Decision Styles

Information Use
Amount of information actually used in the process of making decisions and solving problems

Solution Focus

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Zeroing-in on a limited number of clear-cut solutions or courses of action vs. identifying multiple solutions and/or alternate courses of action

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Korn/Ferry Behavioral Assessment Model


Dimension I: Information Use
High

Maximizer Level of Understanding Satisficer

Dimension II: Solution Focus


Low
Low High
d a t a d a t a
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Amount of information Used

UNI FOCUSED STYLE

MULTI FOCUSED STYLE

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Two Faces of Styles


Leadership (Interpersonal) Style and Thinking (Task Performance) Style

Leadership Styles
Styles used when people are watching themselves attempting to behave as they believe they should behave

Thinking Styles

20 2DecisonDynamicsLC

Styles used when people are not watching themselves and not thinking about how they should behave -- when they are focusing on a task or situation or are absorbed in a problem

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KFI Decision Style Assessment


Information Use
Low/Mod Task/Action-Focused Thinking Uni-Focused High Intellectual/Complex Thinking Leadership
Quality-oriented Data-driven Thorough

Leadership

Quick Steady Productive Efficient Terse Clear Focused Directive

Logical Serious Dominant

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Focus

Multi-Focused

Social/Flexible Thinking Leadership


Intuitive Fast Changeable Adaptive Open Informal Outgoing Humorous

Participative/Creative Thinking Leadership


Exploratory Analytic Creative Patient Inquisitive Listening Team-oriented

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Emotional Competency Definitions



Ambiguity Tolerance: The capacity to deal with uncertainty and unanticipated change Composure: The capacity to remain cool in the face of adversity or frustration Confidence: The willingness to take on challenges and risk
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Empathy: The ability to objectively perceive others strengths and weaknesses


Energy: The capacity to handle demanding tasks without tiring or losing motivation Humility: The capacity to see or do things in different ways without imposing ones preferred way
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Decision Styles: Getting Down to the ROOTS of Behavioral Competencies


Articulating Responding Ideas Cooperating to Others Communicating Resolving Expectations Adapting Conflicts to Change Recognizing Trends Initiating Generating Ideas Relationships Creativity Planning
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Organizing Events Meeting Commitments Productivity Delegating


Behavioral Competencies Decision Style Roots

Listening

Action Style

Flexible/ Social Style

Participative Style

Complex Style

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Validation Research
We randomly selected 110,000 managers/executives from our assessment database of over 500,000 individuals We divided sample into five management levels
Supervisor
Manager

Director
Vice President

Executive C Level

We split each level into the most and least successful and compared the decision styles of both groups
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Key findings Behavioral competency scores were markedly different between the two groups and between management levels

Successful executives have markedly different leadership and thinking styles


Results offer insights that challenge traditional competency theory namely, required behavioral competencies differ materially by level and role

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Leadership Styles by Management Level


Most Successful Managers and Executives
(N = 21,355)
1.5

1.0
Averaged Standardized Assessment Scores

0.5

0.0
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-0.5

-1.0

-1.5

Supervisor

Manager
Task Social

Director
Intellectual

Vice President
Participative

Executive

Statistical probability that style differences between levels could have occurred by chance (ANOVA results):
Decisive Operating Style = 0.00% Flexible Operating Style = 0.00% Hierarchic Operating Style = 0.00% Integrative Operating Style = 0.00%

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Thinking Styles by Management Level


Most Successful Managers and Executives
(N = 21,355)
0.4 0.3 0.2
Averaged Standardized Assessment Scores

0.1 0.0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6


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Supervisor

Manager
Action Flexible

Director
Complex

Vice President
Creative

Executive

Statistical probability that style differences between levels could have occurred by chance (ANOVA results):
Decisive Operating Style = doesnt differ significantly between levels Flexible Operating Style = 0.0% Hierarchic Operating Style = 1.3% Integrative Operating Style = 3.4%

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Leadership Role Styles by Mgmt Level


Contrasts: Top 20% vs. Total Sample vs. Bottom 20%
Top 20%
2.00
2.00

Average

1.50

1.50

1.00

1.00

0.50

0.50

0.00

0.00

-0.50

-0.50

-1.00

-1.00

-1.50

-1.50

-2.00

-2.00

Supervisor (n = 1,258)

Manager (n = 7,358)

Director (n = 6,061)

Vice President (n = 4,622)


INTEGRAT

Sr. Executive (n = 4,486)

n = 6,275 (Supervisor)

n = 36,680 (Manager) n = 30,102 (Director)

n = 23,057 (Vice President)


INTEGRAT

n = 22,475 (Sr. Executive)

DECISIVE

FLEXIBLE

HIERARCH

DECISIVE

FLEXIBLE

HIERARCH

Bottom 20%
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2.00

1.50

1.00

0.50

0.00

-0.50

-1.00

-1.50

-2.00

Supervisor (n = 1,612)

Manager (n = 7,102)

Director (n = 5,987)

Vice President (n = 4,614)


INTEGRAT

Sr. Executive (n = 4,684)

DECISIVE

FLEXIBLE

HIERARCH

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Decision Dynamics LLC

Leadership Role Styles by Mgmt Level


Contrasts: Top 20% vs. Total Sample vs. Bottom 20%
Top 20%
0.80

Average
0.60

0.60

0.40

0.40

0.20
0.20

0.00
0.00

-0.20
-0.20

-0.40

-0.40

-0.60

-0.60

Supervisor (n = 1,258)

Manager (n = 7,358)

Director (n = 6,061)

Vice President (n = 4,622)


INTEGRAT

Sr. Executive (n = 4,486)

Supervisor (n = 6,275)

Manager (n = 36,680) Director (n = 30,102)

Vice President (n = 23,057)


INTEGRAT

Sr. Executive (n = 22,475)

DECISIVE

FLEXIBLE

HIERARCH

Bottom 20%
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DECISIVE

FLEXIBLE

HIERARCH

1.00

0.80

0.60

0.40

0.20

0.00

-0.20

-0.40

-0.60

-0.80

Supervisor (n = 1,612)

Manager (n = 7,102)

Director (n = 5,987)

Vice President (n = 4,614)


INTEGRAT

Sr. Executive (n = 4,684)

DECISIVE

FLEXIBLE

HIERARCH

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A Multi-Cultural Perspective Leadership Styles


North America Leadership Styles by Mgmt Level
0 .5 0
0 .4 0

Australia,New Zealand Leadership Styles by Mgmt Level

0 .4 0

0 .3 0

0 .3 0
0 .2 0

0 .2 0
0 .1 0

0 .1 0
0 .0 0

0 .0 0
-0 .1 0

-0 .1 0

-0 .2 0

-0 .2 0

-0 .3 0

-0 .3 0

-0 .4 0

-0 .4 0

E n try

M id d le

S e n io r

E n try

M id d le

S e n io r

Managem ent Lev el


T a sk (D e c i si v e ) S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) P a r ti c i p a ti v e (I n te g r a ti v e )
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Managem ent Lev el


T a sk (D e c i si v e ) S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) P a r ti c i p a ti v e (I n te g r a ti v e )

Latin America Leadership Styles by Mgmt Level


0 .3 0

UK, Northern & Western Europe - Leadership Styles by Mgmt Level


0 .1 5

0 .1 0
0 .2 0

0 .0 5
0 .1 0

0 .0 0

0 .0 0

- 0 .0 5

- 0 .1 0
-0 .1 0

- 0 .1 5
-0 .2 0

- 0 .2 0

-0 .3 0

- 0 .2 5

E n try

M id d le

S e n io r

E n try

M idd le

Se nio r

Managem ent Lev el


T a sk (D e c i si v e ) S o c i a l (F l e x i b l e I n te l l e c tu a l (H i e r a r c h i c ) P a r ti c i p a ti v e (I n te g r a ti v e )

Managem ent Lev el


T a sk (D e ci si v e ) S o c i a l (F l e x i b l e I n te l l e ctu a l (H i e ra rc h i c ) P a r ti ci p a ti v e (I n te g ra ti v e )

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A Multicultural Perspective Thinking Styles


North America Leadership Styles by Mgmt Level
0 .1 5
0 .1 5

Australia,New Zealand Leadership Styles by Mgmt Level

0 .1 0

0 .1 0

0 .0 5

0 .0 5

0 .0 0

0 .0 0
-0 .0 5

-0 .0 5
-0 .1 0

-0 .1 0

-0 .1 5

E n try

M id d le

S e n io r

E n try

M id d le

S e n io r

Managem ent Lev el


A c ti o n -F o c u s (D e c i si v e ) F le x ib le C o m p l e x (H i e r a r c h i c ) C r e a ti v e (I n te g r a ti v e )
A c ti o n -F o c u s (D e c i si v e )

Managem ent Lev el


F le x ib le C o m p l e x (H i e r a r c h i c ) C r e a ti v e (I n te g r a ti v e )

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Latin America Leadership Styles by Mgmt Level


0 .2 0 0 .1 5

UK, Northern & Western Europe - Leadership Styles by Mgmt Level


0.10 0.08 0.05 0.03 0.00 -0.03

0 .1 0

0 .0 5

0 .0 0

-0 .0 5

-0 .1 0

-0.05
-0 .1 5

-0.08
-0 .2 0

E n try

M id d le

S e n io r

-0.10

Managem ent Lev el


A c ti o n -F o c u s (D e c i si v e ) F le x ib le C o m p l e x (H i e r a r c h i c ) C r e a ti v e (I n te g r a ti v e )

Entry

Middle

Senior

Management Level l
Action-Focus (Decisive) Flexible Complex (Hierarchic) Creative (Integrative)

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Matching Values to Organizational Culture

The Basis of Cultural Fit

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Four Different Career Patterns and their Motives


Expert

Life-long focus on one specialty

Expertise Stability & Security

Competitive

Fast progression up the ladder


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Power & Influence Achievement Many other motives

Learning
Lateral movement thru
different but related occupations

Personal Growth Creativity

Entrepreneurial

Frequent moves between very different kinds of work

Novelty Independence People Involvement


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Career Concepts & Corporate Cultures


Competitive Expert
Maintain share Increase quality

Learning
Diversification based on core technology

Entrepreneur
Immediate targets of opportunity

Strategy
Structure Valued Performance Factors Rewards

Growth Market share

Tall pyramid Narrow span of control Cost reduction Leadership skills Logistics mgmt skills

Flat & functional Broad span of control


Accuracy Reliability Technical expertise
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Matrix structure Open systems High involvement Creativity Skill diversity Team skills

"Ad Hocracy" Temporary teams


Speed Adaptability Recognizing opportunities

Promotion Mgmt incentives Mgmt training

Fringe benefits Tech training Recognition awards Budget authority

Lateral assignments Job rotation Education Creative latitude

Cash bonuses Special assignments Job rotation Independence

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Leadership Style Comparison Sales and Marketing Executive


7

6
5.82

5.03

4.18

Sr. Marketing Executive


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3.87 3.59 3.46 3.39

Sr. Sales Executive

2.35

1 Task Focused Social Intellectual Participative

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Thinking Style Comparison Sales and Marketing Executive


7

6
5.75 5.44 5.24

4.18

4.06
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Sr. Marketing Executive Sr. Sales Executive

3.91

3
2.87

2.04

1 Action Flexible Complex Creative

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Emotional Profile Comparison Sales and Marketing Executive


7

6
5.52 5.56

5.46

5
4.57 4.40 4.41 4.13 4.17
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4.34

4.49 4.43 Sr. Marketing Executive

4
3.84

Sr. Sales Executive

1 Ambiguity Tolerance Composure Empathy Mental Stamina Humilty Confidence

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