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Introduction

Robert B. Kaiser

Kaplan DeVries Inc.

The task at the top of the human resources/organizational development and effectiveness (HR/OD&E) short list these days is ensuring a deep supply of leadership talent that is ready to step into more senior roles when called upon. There are lots of reasons why. Chief among them is that competition is fiercer today than ever before and effective leadership represents a rare source of competitive advantage. With strong leadership and a richly stocked pool of future leaders, organizations prosper and endure.

But the flow in the leadership pipeline has slowed to a trickle. The mass exodus of middle managers initiated in the 1980s by downsizing means that now there are fewer seasoned veterans available for top jobs. Most organization charts and succession maps are noteworthy for the number of blank slots five years out. And the graying and impending retirement of baby boomers coupled with steep and steady declines in skilled entrants to the workforce adds up to an even greater shortage of talent in the U.S. labor market of the early twenty-first century. This could make the “War for Talent” of the late 1990s look more like a street fight.

The Business Case

There is an easy case to make for the imperative of investing in tomorrow’s leaders today. It’s the law of supply and demand: more organizations in greater competition under increased pressure to perform put a premium on scarce talent. The labor economy has become a seller’s market, and poaching or luring talent away from other organizations is a losing proposition. The alternative is to become good at developing your talented managers into great leaders and aggressively seeking out potential and developing it anywhere and everywhere you can find it across the organization.

This defines an agenda for HR/OD&E and talent managers: creating integrated systems for churning out homegrown leaders. It’s not enough to help individuals be effective in their current positions. We need talented managers ready to step into jobs of greater responsibility and hit the ground running. This is the challenge weighing on the talent profession today. With an urgent and daunting mandate, best-in-class talent managers have been courageously experimenting, curiously benchmarking, and feverishly seeking solutions.

The purpose of this volume is to share what has been learned in the last few years of increased attention to the systematic and strategic cultivation of leadership talent. The time is ripe for leading practitioners to share key lessons about building and filling a leadership pipeline.

The Audience for This Book

This collection of chapters was written expressly for those responsible for building leadership bench strength. The authors, all from internationally renowned consultancies and educational institutes, were asked to speak directly to senior human resources executives, organizational development and effectiveness directors, and consultants and trainers. The goal was to pass on lessons from experience. Each chapter is packed with practical advice and suggestions. At the same time, it is rigorously backed by scientific research, tested theory, and firsthand examples from Fortune 500 companies and major government organizations like the Central Intelligence Agency.

What follows, I think you will agree, is a collection of road-tested frameworks, strategies, and tactics that are useful in building your leadership pipeline. My reading of the five chapters suggests that each holds out the promise of at least one new “big idea” and a handful of specific action steps that flow naturally from it.

Structure and Content

This volume is divided into three parts, each corresponding to a particular perspective or set of considerations about building a leadership pipeline. These three perspectives are represented in figure 1. The basic idea is that there is a larger business environment shaping trends and offering examples to learn from. Within that larger context are your own particular organization and unique circumstances. On the one hand, you can consider your company’s pool of talent, who these managers are as individuals, and what they need to realize their potential. On the other hand, you can look at the pipeline question from the perspective of development systems—the mechanics of talent development including processes, content, and tools for growing leaders. And there should be overlap between the individual and systems perspectives—effective talent development strategies are designed with both firmly in mind.

Rather than provide exhaustive coverage of each of the major considerations in figure 1, the focus of this volume is to provide targeted points of view relevant to each. The collection of chapters is also integrated; rather than submitting disparate papers to lump together, the authors have carefully considered their contributions in light of what the other authors have to say. Based on the synergy and interconnectedness of the chapters, it seems evident that the authors found much to learn from each other.

Figure 1. Key Considerations in Building a Leadership Pipeline

Part 1: Business Environment

The first part frames the larger context of preparing for the leadership needs of the future with a chapter by Pat Weik of RHR International Company. Weik reports on a benchmarking survey summarizing current practices across 115 companies (most with greater than $1 billion in U.S. revenue) of preparing now for the future leadership of their enterprises. A key finding: filling the pipe is a new priority—most companies report ramping up the identification and focused development of high potentials only in the last three years. Weik also reports on the skills most sought after in high potentials, the roles senior leaders are playing, and key techniques facilitating accelerating development. Weik takes on the issue of impact: how are companies tracking investments in filling the pipe, assessing progress, and estimating ROI? Most are struggling with this. But there is hope: some companies are figuring it out.

Part 2: Considerations about Individual Managers

The next part includes two chapters that focus primarily on the needs of individual managers and leaders. First, Arthur Freedman of American University, National Training Labs Institute, and Quantum Associates describes a refined version of his “pathways-and-crossroads” model of how managers go from being frontline supervisors to CEOs. He considers how managerial jobs change across the hierarchy and how this poses a psychological challenge for ambitious, upwardly mobile individuals. Freedman describes how managers must reinvent themselves—by letting go of anachronistic skills, fine-tuning others, and picking up new skills and perspectives as they climb the corporate ladder. In addition to offering a practical psychology of moving through the leadership pipeline, he also identifies formal mechanisms that organizations can employ to prepare and support managers to make these moves. The chapter closes with an illustrating example of what is required of executives promoted to the role of CEO. Freedman’s psychological model of the career pathways and crossroads was the subject of a paper voted article of the year for Consulting Psychology Journal in 1998.

Chapter 3 is a natural follow-up to Freedman’s chapter; veteran consultants and authors Diane Downey and Amy Kates of Downey Kates Associates use a similar pathways-and-crossroads model to provide an in-depth treatment of general manager transitions. They also use Freedman’s psychological model of managerial promotions to illustrate key sources of leverage for improving the success rate among newly promoted executives. This chapter provides an array of rich examples from the authors’ considerable experience helping major companies like American Express, Wal-Mart, and Pfizer develop transition management and on-boarding programs. The chapter also includes a number of specific techniques and tools that can be readily adapted in your organization. One of the most compelling observations Downey and Kates offer is that, with few exceptions, successful techniques for helping leaders transition into more senior roles are fairly simple, low cost, and low tech. They are commonsense interventions, some of which you may be using. They see the greatest impact when these models are systematized, integrated, and woven into the cultural fabric of the company.

Part 3: Considerations about Development Systems

The final part includes two chapters relevant to the content, processes, and tools organizations use to develop talent. First, Skip Leonard of Personnel Decisions International builds on Freedman’s pathways-and-crossroads model and makes an important point regarding the content of talent development efforts. From over twenty-five years of experience in dozens of organizations and with hundreds of managers at all levels, Leonard has made a striking observation: in the haste to turn every manager into a leader, fundamental management skills have been largely overlooked (for example, planning, delegation, follow-up, project management). The startling result is that senior executives regularly enter advanced leadership courses lacking the basic building blocks of management. He grounds this observation and his alternative recommendation in strong leadership theory—like John Kotter’s classic distinction between leadership and management—as well as a great deal of statistical research on the distinction between transformational and transactional styles of leadership. Leonard’s central message is that leadership development interventions need to be tailored to the particular organizational level and that adopting a “one best way” approach to development, although seductively simplifying, is ultimately shortsighted. Leonard concludes his chapter by helping HR/OD&E professionals take a more strategic approach to answering the question of ROI.

The fifth and final chapter in this volume is by Jennifer Martineau, Greg Laskow, and Lisa Moye of the Center for Creative Leadership, and their collaborator at the Central Intelligence Agency, Dick Phillips. They describe how they helped the CIA use leader development to transform its culture. In particular, they demonstrate a fully integrated approach to creating a competency system for all levels of management. The system contains both consistent themes that cut across all layers of management as well as unique themes that capture the particular challenges facing supervisors, middle managers, and executives. The case vividly illustrates design principles, strategies, and tactics for building a model of leadership that serves as the central architecture guiding all leader development initiatives. They show how this “customized integration” competency model specifies the content of training and development, provides a basis for receiving 360-degree feedback, and identifies the metrics for evaluating impact, the ROI in leadership development.

Final Comments

It is an honorable challenge to be responsible for ensuring your organization’s continuity and sustainability by preparing the next generations of leaders. May you find much to pick from in the following buffet of essential insights from respected practitioners. It is our highest hope that this volume will provide you with practical suggestions, creative ideas, and inspiration for new initiatives.

I would like to thank the Center for Creative Leadership, long a pioneer in the development of leaders, for providing this forum, in which the field’s leading institutions can pool together their collective wisdom for the benefit of those charged with the responsibility of building the leaders of tomorrow.