Towards Inspirational Business Leadership in Challenging Times – The New HR Agenda - DR A K Balyan
1. 2nd National HRD Leaders Retreat
Goa
24-26 July, 2014
Towards Inspirational Business
Leadership in Challenging Times
– The New HR Agenda
Dr. A.K.Balyan
2. 2
The Chanllenging Business Environment
Inspirational Leadership
The HR Agenda
Presentation Overview
3. Going Ahead :The New World Order of Business
Mistrust of big business
Far less stability in economic and political affairs
A shift in the centre of economic power away from the
traditional bastions of USA & Western Europe to other
economies, especially the BRIC countries
A far stricter regulatory environment
Much greater public-private-not for profit partnerships
Demand for addressing the triple bottom-line of profit, people
and planet.
___________________________________________________________
VUCA World : Volatile, Uncertain, Complex & Ambignous
3
5. How Uncertain Are Companies
55
30
28
24 24
0
10
20
30
40
50
60
Sales Customer Preference Availability/cost of funding Competitor Actions Regulatory Actions
% of companies less able to make satisfactoryforecasts
Source : Mckinsey global survey on economic conditions5
6. Striking the Balance: to Manage the New World
Order in Business
Manage the
Present
Selectively
Forget the
Past
Create the
Future
6
7. 7
The Chanllenging Business Environment
Inspirational Leadership
The HR Agenda
Presentation Overview
8. A Leadership Story
A group of workers and their leaders are set a task of clearing
a road through a dense jungle on a remote island to get to the
coast where an estuary provides a perfect sit for a port.
The leaders organise the labour into efficient units and
monitor the distribution and use of capital assets – progress is
excellent. The leaders continue to monitor and evaluate progress,
making adjustments along the way to ensure the progress is
maintained and efficiency increased wherever possible.
Then, one day amidst all the hustle and bustle and activity, one
person climbs up a nearby tree. The person surveys the scene
from the top of the tree.
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9. A Leadership Story (contd.)
And shouts down to the assembled group below…
“Wrong Way!”
(Story adapted from Stephen Covey (2004) “The Seven
Habits of Highly Effective People”).
“Management is doing things right, leadership is doing
the right things”
(Warren Bennis and Peter Drucker)
9
10. Leadership:Definitions
The only definition of a leader is someone who has followers.To
gain followers requires influence , but doesn't exclude the lack of
integrity in achieving this. Indeed, it can be argued that several of
the world's greatest leaders have lacked integrity and have adopted
values that would not be shared by many people today.
Peter F. Drucker, Management Guru
10
Leadership is influence - nothing more, nothing less. This moves
beyond the position defining the leader, to looking at the ability of
the leader to influence others - both those who would consider
themselves followers, and those outside that circle. Indirectly, it
also builds in leadership character, since without maintaining
integrity and trustworthiness, the capability to influence will
disappear.
John C.Maxwell,(born 1947) Renowned ‘Leadership’ writer
11. Leadership:Definitions
Leadership is a function of knowing yourself, having a vision that
is well communicated, building trust among colleagues, and taking
effective action to realize your own leadership potential.
Warren Bennis, Noted ‘Leadership’ Thinker
11
A true leader would like to leave behind a legacy of that he
made a difference that he improved the quality of life of the
people whom he served and that there was nothing that he did
which was in a manner speaking for himself,”
Ratan Tata, Chairman, Tata Group
12. Leadership:Definitions
We’ve got 25,000 people at Apple. About 10,000 of them are in
the stores. And my job is to work with sort of the top 100 people,
that’s what I do. That doesn’t mean they’re all vice presidents.
Some of them are just key individual contributors. So when a good
idea comes, you know, part of my job is to move it around, just
see what different people think, get people talking about it, argue
with people about it, get ideas moving among that group of 100
people, get different people together to explore different aspects
of it quietly, and, you know – just explore things.”
Late Steve Jobs on on his role as leader at Apple
12
13. *US 2008 Crisis: Lack of Leadership?
Mckinsey Survey of Corporate Leaders-2009
14. Why Leadership is important?
History has been crafted by leaders
The Progress of Human Development is a treatise on outstanding
leaders – with diverse motives & styles who created a remarkable
impact through their foresight, courage, charisma and influence.
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15. 15
Leadership : The hidden key to variance in
performance
Similar Size
Similar product
portfolios and
price points
Similar market /
competitive
positions
Source : Hay Group
16. 16
50 years of Hay Group research into outstanding
leaders has proven that effective leaders impact
results, by creating a ‘climate for Success’
INDIVIDUAL
v Motives
v Competencies
Leadership
Styles
Job
Requirements
Organisational
Climate
DISCRETIONARY
EFFORT
70% 30%
Motives and Competencies
Influence natural Leadership
Styles (to an extent of 50 to 70%),
which in turn influences Climate
Climate contributes to 30% of the
variations in bottom – line
performance
ORGANISATIONAL
EFFECTIVENESS
(Measured in Profit,
Margin & Growth
Source : Hay Group
17. Set a Compelling Vision
Troubleshooting and Solving Problems
Enthuse People
Utilise the power of collaboration
Provide a Safety Net for their People
Lead and Manage Change
Act as Coach and Mentor
Lead by example
Accept Mistakes
They drive Motivation
What do Inspirational Leaders do ……….
17
18. How Inspirational Leaders Make a Difference
Leadership Versus Management
Manager Leader
1. Has a short-range perspective Has a long-range perspective
2. Plans how and when Asks what and why
3. Eyes the bottom line Eyes the horizon
4. Imitates others Originates
5. Accepts the status quo Challenges the status quo
6. Does things correctly Does the correct thing
7. Seeks continuity Seeks change
8. Focuses on goals for improvement Focuses on goals of innovation
9. Power is based on position or authority Power is based on personal influence
10. Demonstrates skill in technical competence Demonstrates skill in selling the vision
11. Demonstrates skill in administration Demonstrates skill in dealing with ambiguity
Demonstrates skill in supervision Demonstrates skill in persuasion
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19. Manager Leader
1. Works toward employee compliance Works toward employee commitment
2. Plans tactics Plans strategy
3. Sets standard operating procedures Sets policy
4. Relies on analytical decision-making style Relies on intuitive decision-making style
5. Is risk cautious Takes the necessary risks
6. Uses a “transactional” communication style Uses a “transformational” communication style
7. Mostly uses an informational base of data
and facts
Uses an informational base, including “gut”
feelings
8. Builds success through maintenance of
quality
Builds success through employee commitment
9. Does not want to experience anarchy Does not want to experience inertia
10. Plans, budgets, and designs details steps Develops the vision and the strategies to achieve
it
11. Sets standards of performance Sets standards of excellence
12. Develops the detailed plan to achieve
results
Develops the future direction by gathering future
trends
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How Inspirational Leaders Make a Difference
Leadership Versus Management
20. Leadership Company
Need to move from a Command- and- Control Company to a
Leadership Company
Run with a network of leaders
No hierarchy
People free to speak their minds about company performance & thus
people are more productive
Multiple first-among-equals leaders in a leadership company will make
decisions of a consistently higher quality because many leaders and
constituents will be involved in much of the decision making
Employees derive satisfaction from being involved in work that
produces products or services that customers buy with increasing
satisfaction
20
22. “The process of becoming
a leader is similar, if not
identical, to becoming a
fully integrated human
being”
WARREN BENNIS
Leadership Guru
22
23. REINVENTING LEADERSHIP
OLD LEADERSHIP NEW LEADERSHIP
1. Economy : Profitability Ecology : Sustainability
2. Character : Situational Integrity : Unconditional
3. Talent : Compliance Talent : Commitment
4. Position Power Influence Power
5. Isolation / Separation Connection / Cause
6. Protective Custody Interdependency
Source : Drucker, Leadership Excellence23
24. OLD LEADERSHIP DEVELOPMENT NEW LEADERSHIP DEVELOPMENT
1. Semi – academic Field Performance
2. Classes / Content Experience / application
3. Solo and site learning Social / mobile learning
4. Maps and charts Compass and context
5. Teacher / Consultant Coach and mentor
6. Skillsets / mindsets Social / Political savvy
7. Dominance / deference Cooperation / Synergy
8. Draw from business Disparate fields
9. Focus on managers Focus on followers
Source : Drucker, Leadership Excellence
REINVENTING LEADERSHIP DEVELOPMENT
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25. 25
The Chanllenging Business Environment
Inspirational Leadership
The HR Agenda
Presentation Overview
26. Imperatives for HR
Demographic Changes -
Multi-generational
workforce
Ageing Workforce-
talent crunch
Workforce diversity
Cultural Changes -
Personal and
professional life
balance
Social responsibility
and global
sustainability
Macro factors -
Economic Crisis
Lack of funding
Political uncertainty
Change in policy
framework
Entry of foreign players
Technology Evolution:-
IT enablement, internet and mobile
systems, GPS, ERP pervasiveness
Globalize
Retain Talent
Technology Renewal
Pressure to innovate
Imperatives for HR
27. GLOBAL HUMAN CAPITAL TRENDS 2014
CEO’s and HR Leaders consider Talent Management as a key for their organisation
growth
Survey : 2500 + organisations, 90+ countries
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Lead & Develop Attract & Engage Transform & Reinvent
(i) Leadership is top concern
- “Readiness Gap
(i) Change in Talent
acquisition, recruitment
(i) Reskill HR Team –
All-rounder –
Business Consultant
(ii) Globalise Leadership
Programmes
- New age & ways of
Learning and Development
(ii) Build Passion & Purpose
- “Talent Magnet”
(ii) Use HR Analysis
(iii) New Model of
Performance Management
- Replace ‘rank & yank’ with
coaching & development
(iii) Diversity as business
strategy
(iii) Globalise and localise -
- High impact and flexibility
(iv) Create a Global skill
supply chain
Source : Delloitte, NHRDN
28. INDIA TOP HUMAN CAPITAL TRENDS 2014
Survey : 1500 Business, HR Leaders
1. Leadership Pipelines and readiness
2. Talent Acquisition and access
3. Reskilling the HR function
4. Retention and engagement
5. HR Technology
6. Talent and HR Analytics
7. Performance Management
8. Work Force Capability
9. Diversity & inclusion
10.Learning & Development
____________________________________________________________
Level of preparedness (capability index) lags the expectations.
The “Capability gap” ranges 20% to 29% for most of the trends.
28 Source : Delloitte, NHRDN
29. Inspirational Leadership Competencies
1 . Dealing with uncertainties
Extrovert
Awareness of the External Environment
Unruffled
Risk assessment capability
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30. Inspirational Leadership Competencies
2. Manage Complex Teams
Have strong interpersonal skills
Networking capability
Negotiating ability
Communicate Clearly
Has the ability to promote team decision
making
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31. Inspirational Leadership Competencies
3. Managing Business using Analytics
Institutionalize Metrics /Analytics in all
Managerial domains
Uses latest tools and technology to
analyse business data
Has the ability to take sound decisions
based on analytics
31
32. Inspirational Leadership Competencies
4. Management of Change & Work Environment
Create the environment necessary in the
organization to embrace proactive change
Be seen as a Change Champion – who
walks the talk
Create guiding coalitions at all levels to
take the change process forward
Reward the key people who have
successfully steered the change
32
33. Inspirational Leadership Competencies
5. Capability to understand dynamics of
performance & strategy
Understanding of business
Can strategies effectively, leveraging
strengths and opportunities
Is able to deploy people at key positions –
right people for the right role
33
34. Inspirational Leadership Competencies
6. Capable of Quick Decision Making
Can develop scenarios while taking a
decision
Ability to analyze objectively these
scenarios
Capable of creating a consensus on best
option
Understands when is the right time to
execute the decision
34
35. Inspirational Leadership Competencies
7. Use and promote Technology
Understanding the nuances of changing
technology
Able to choose which technology has to
be adopted
Reward people who implement
technological change
35
36. 1. Defining Leadership Criteria
-Define the criteria of
Leadership
-Map the criteria in
performance appraisal
- Skill gap analysis
Actions:
Define KRAs
Structure the parameters
36
Developing Inspirational Leadership Competencies :
HR Agenda
37. 2. Benchmarking Strengths and Weaknesses
Companies that excel in
leadership development
“ grow leaders as
opposed to buying
them”. HR should tell
individuals know what
they are doing well and
what they can improve
upon.
Actions:- Conduct
Assessment Centres,
Share the results and
frame development
plans
37
Developing Inspirational Leadership Competencies :
HR Agenda
38. 3. Training and Leadership Development
Great leaders and
managers do not
necessarily start off
with the basic skills to
make them great.
Companies should
consistently offer
training in management
and leadership for up-
and-coming employees
for them to be ready to
take on added
responsibility.
Actions:- Technical
Trainings, Managerial
Trainings, Job rotation,
Stretch Assignments, etc
38
Developing Inspirational Leadership Competencies :
HR Agenda
39. Accountability for
developing leadership
skills falls upon the
organization as well as
the individual
Actions:- Engage with the
identified potential
leaders and make them
accountable for their own
development
4. Leadership Development: A Joint Effort
39
Developing Inspirational Leadership Competencies :
HR Agenda
40. 5. Coaching & Mentoring
It can be a very formal program
where a more seasoned and
experienced employee is assigned
to a high-potential individual, or it
can be an informal relationship
that develops between two
employees who happen to work in
one area of the office.
Actions:- Identify people who can
be good coaches/mentors and the
potential employees who need to
be coached/mentored
40
Developing Inspirational Leadership Competencies :
HR Agenda
41. *
HR should sit down with
senior management to
examine people within the
organization and talk about
their potential and best fit
role
Actions:- Have career
conversations and deploy
high potentials for critical
assignments
6. Basic Career Pathing and Planning for an
Organization
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Developing Inspirational Leadership Competencies :
HR Agenda