Management masterclass: Nurturing future leaders

Management masterclass / 10 February 2012

In a series for senior managers, Edge looks at the key issues facing leaders. In this masterclass, Scott Beagrie asks how to identify and develop the leaders of the future

An organisation may well have the best leadership team in the business but there is no guarantee it will still be in place in 12 months’ time.

To be continually successful an organisation must ensure it has a constant pipeline of leadership talent.

In a large company, this may be the remit of a talent management director, but anyone working at senior level needs to be able to identify and nurture the company’s future leaders.

While the term ‘succession planning’ has been part of the HR vernacular for many years, organisations still seem to struggle with it, says Yvonne Sell, director of leadership and talent practice at global management consulting firm, Hay Group.

“Firms have often confused ‘replacement planning’ with succession planning or talent management,” she explains “So, for many companies, a clear future focus has been an area of neglect.”
 
Senior level managers and directors must understand the role they have in spotting and helping to develop future leaders.

As successful leaders steering the organisation, they know what qualities and characteristics are important as new leaders move up through the ranks and are also best placed to assess what sort of people will be required to implement future strategy.

01: Identify and assess suitable candidates

While it is important to keep in mind the leadership styles and traits that best suit the organisation, there is a danger in being overly prescriptive and fixing on a single definition of leadership.

Firms have often confused ‘replacement planning’ with succession planning or talent management.So, for many companies, a clear future focus has been an area of neglect.

Yvonne Sell, director of leadership and talent practice, Hay Group

Successful organisations are made up of individuals with a mix of leadership styles and it wouldn’t necessarily be ideal if everyone aspires to be a charismatic visionary.

On a practical level, verify with those responsible for talent management what mechanisms and practices are in place to measure potential leaders against the different models.

As well as performance appraisal, this will typically include a robust, 360 degree feedback system. When identifying potential leaders, a common mistake is to confuse performance and potential, says Sell.

“Several bodies of research show that potential is distinct, yet most line managers think a good performer is the best person to be promoted – that is not always the case,” she says.

“Characteristics such as breadth of perspective or learning agility – that don’t show in day-to-day performance – are critical to someone’s capacity to make the most of learning opportunities and develop into great leaders.”

Another common mistake is to look for and develop leaders in the same image as yourself.

Sell warns this can be a mistake for two reasons: “First, what helped us to be successful may not be what leaders will need in the future. For example, our research on the megatrends that will emerge over the next two decades suggests that leaders of the future will need to be far better networkers external to the organisation than they are now.

"Second, we may not be able to recognise what it is that has actually made us successful.”

02: Inform the process

The CEO is the embodiment of what good leadership looks like in an organisation and should be an inspirational figure for upcoming leaders and managers.

In practical terms, they need to be closely involved in any programme of leadership development since they have the best grasp on what is required to align new leaders and leadership development to the organisation’s strategy.

Sell says the role of the CEO is to “decode” the strategy to help figure out future leadership requirements.

“She/he should pass on that understanding to managers,” she explains. “The CEO should also support any initiatives regarding development. Knowing that there is senior buy-in to any programme is critical to encouraging line managers to share talent across the organisation and engaging people to spend time on development. Finally, of course, CEOs should model the desired leadership behaviours themselves.”

03: Designate coaches and mentors

Coaching and mentoring are an important component of leadership development.

Sell points to research which shows that mentors are critical for connecting potential leaders across the organisation, for helping navigate the political landscape and for focusing on what’s important in an organisation.

External coaches, meanwhile, can provide both a safe environment to explore problems and a level of challenge and feedback others within the organisation may not want to give, she says.

04: Use targeted development

Nurturing future leaders is all about providing them with the appropriate opportunities to develop at the right time.

This includes giving them direct leadership responsibilities and could typically mean putting them in charge of a project or division where they will be required to lead and motivate people as well as achieve organisational/business objectives and deliver results.

Provide them with plenty of challenge and opportunity to stretch themselves but also make sure you offer support. As well as in the workplace, recommend that they seek further opportunities to develop their leadership skills outside of work.

Sell advises the best way to develop an individual’s leadership qualities is to help them understand the gap between where they are and where they need to be.

“Provide an impetus to development,” she says. “Make it clear that the organisation is expecting change and create a supportive environment for that change.

“Ensuring that context and self-awareness are incorporated into the development, providing opportunities for failure while communicating that learning is the intent, offering balanced feedback and helping people adjust their self-image from a ‘do-er’ to a leader are all key steps to developing your future leaders.”