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Achieving ROI on your Achieving ROI on your Leadership investment Leadership investment Presented by: John F. Bradford Senior Vice President Consulting Services Profiles International, Inc. [email protected] 254-399-5551

Achieving ROI On Leadership Investment John Bradford

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Objective of presentation is to identify what actions to take to achieve return on your investment when investing in the development of leaders.

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Page 1: Achieving ROI On Leadership Investment John Bradford

Achieving ROI on your Achieving ROI on your Leadership investmentLeadership investment

Presented by:

John F. BradfordSenior Vice President Consulting Services

Profiles International, [email protected]

254-399-5551

Page 2: Achieving ROI On Leadership Investment John Bradford

2

Focus in the Current Focus in the Current Economic ClimateEconomic Climate

• Reducing CostsReducing Costs

• Increasing Productivity / OutputIncreasing Productivity / Output

• Improving Bottom LineImproving Bottom Line

……investments of any kind are now only investments of any kind are now only justifiable if they contribute to one or more of justifiable if they contribute to one or more of

the above!the above!

Page 3: Achieving ROI On Leadership Investment John Bradford

Surely more?Surely more?

“…“…corporations spend, on average, 36 percent corporations spend, on average, 36 percent of their revenue on human capital expenses..”of their revenue on human capital expenses..”

Mercer/Mercer/CFO MagazineCFO Magazine study study

Page 4: Achieving ROI On Leadership Investment John Bradford

4

How do we meet How do we meet these challenges?these challenges?

• Get the RIGHT people & avoid the “WRONG” Get the RIGHT people & avoid the “WRONG” people!people!

• Retain the RIGHT peopleRetain the RIGHT people

• Make those RIGHT people maximally productiveMake those RIGHT people maximally productive

• Develop any “WRONG” people they’ve already gotDevelop any “WRONG” people they’ve already got

Page 5: Achieving ROI On Leadership Investment John Bradford

..

‘‘LowLowProducers’Producers’

16%16%

48% 48% lessless than averagethan average

‘‘Superior Superior Producers’Producers’

16%16%

48% 48% moremore than averagethan average

‘‘Average Producers’Average Producers’

68%68%

Page 6: Achieving ROI On Leadership Investment John Bradford

• Two year study of Two year study of leadership behaviours leadership behaviours with greatest business with greatest business impactimpact

• 200,000 evaluations of 200,000 evaluations of 20,000 leaders20,000 leaders

• Compared top 10% Compared top 10% with bottom 10%with bottom 10%

Page 7: Achieving ROI On Leadership Investment John Bradford

Mortgage Bank Leadership Team – 360Mortgage Bank Leadership Team – 360AssessedAssessed

Statistics from Statistics from The Extraordinary Leader,The Extraordinary Leader, by Jack Zenger and Joe Folkman by Jack Zenger and Joe Folkman

Great leaders generate Great leaders generate higher net incomehigher net income

-$1.2M-$1.2M

$2.4M$2.4M

$4.5M$4.5M

-2-2

-1-1

00

11

22

33

44

55

Net

In

com

e (m

illi

ons)

Net

In

com

e (m

illi

ons)

Least EffectiveLeast Effective10%10%

Middle 80%Middle 80% Most EffectiveMost Effective10%10%

Page 8: Achieving ROI On Leadership Investment John Bradford

Statistics from The Extraordinary Leader, by Jack Zenger and Joe Folkman

Inspirational Inspirational leaders leaders make make

a remarkable a remarkable differencedifference

Average leaders Average leaders have average have average

impactimpact

Poor leaders Poor leaders cause cause

disengagement disengagement & ‘mental & ‘mental turnover’turnover’

Leadership Effectiveness Leadership Effectiveness Impacts Employee EngagementImpacts Employee Engagement

Lead

ersh

ip E

ffec

tiven

ess

Lead

ersh

ip E

ffec

tiven

ess

Employee EngagementEmployee Engagement

Page 9: Achieving ROI On Leadership Investment John Bradford

Your Best Manager-Leaders?Your Best Manager-Leaders?• Do you know who they are?Do you know who they are?

• Really?Really?

• Do you know what makes them different – why they are Do you know what makes them different – why they are so much better?so much better?

Page 10: Achieving ROI On Leadership Investment John Bradford

Your Best Manager-Leaders?Your Best Manager-Leaders?• Do you know what makes them different – why they are so Do you know what makes them different – why they are so

much better?much better?

• Have you a comprehensive profile so you could easily replace Have you a comprehensive profile so you could easily replace them tomorrow if you needed to?them tomorrow if you needed to?

• Are they being managed to get the very best from them – are Are they being managed to get the very best from them – are they capable of more?they capable of more?

Page 11: Achieving ROI On Leadership Investment John Bradford

Best Possible Leaders?Best Possible Leaders?

Page 12: Achieving ROI On Leadership Investment John Bradford

1.1.

They do the job well They do the job well

– – Get the required resultsGet the required results

Page 13: Achieving ROI On Leadership Investment John Bradford

2.2.

They get results – without negatively affecting They get results – without negatively affecting your most expensive asset: your peopleyour most expensive asset: your people

Page 14: Achieving ROI On Leadership Investment John Bradford

3.3.

They have the potential to deal with it should They have the potential to deal with it should your business environment changeyour business environment change

Page 15: Achieving ROI On Leadership Investment John Bradford

What Makes the What Makes the Best Different?Best Different?

Page 16: Achieving ROI On Leadership Investment John Bradford

First, it’s potential: First, it’s potential:

‘ ‘Who they are and what they can become’Who they are and what they can become’

Page 17: Achieving ROI On Leadership Investment John Bradford

Then, it’s Then, it’s competency: competency:

WHAT they do WHAT they do

Page 18: Achieving ROI On Leadership Investment John Bradford

Building Superior LeadersBuilding Superior Leaders– just three strategies– just three strategies

• Hope Hope – a hopeless strategya hopeless strategy

• Clone them using medical scienceClone them using medical science– not yet possible, ethical, legal, or most importantly affordablenot yet possible, ethical, legal, or most importantly affordable

• Do the next best thing – ‘clone them’ with management scienceDo the next best thing – ‘clone them’ with management science

Page 19: Achieving ROI On Leadership Investment John Bradford

Leader Cloning 101Leader Cloning 101• First, identify First, identify PotentialPotential required for success required for success

in in youryour organisation – and plan to find it organisation – and plan to find it

• Then, identify Then, identify Competencies Competencies required for required for success in your organisation and plan to success in your organisation and plan to develop themdevelop them

Page 20: Achieving ROI On Leadership Investment John Bradford

Leader Cloning 101Leader Cloning 101• First, identify First, identify PotentialPotential required for success required for success

in in youryour organisation – and plan to find it organisation – and plan to find it

Page 21: Achieving ROI On Leadership Investment John Bradford

Unless you manage both potential AND Unless you manage both potential AND competency you include hope as an competency you include hope as an

element in your strategyelement in your strategy

Page 22: Achieving ROI On Leadership Investment John Bradford

Step One: Identify PotentialStep One: Identify Potential• ‘‘Begin with the end in mind’ – think RESULTS!Begin with the end in mind’ – think RESULTS!

Page 23: Achieving ROI On Leadership Investment John Bradford

Step One: Identify PotentialStep One: Identify Potential• ‘‘Begin with the end in mind’ – think RESULTS!Begin with the end in mind’ – think RESULTS!• Rate your leaders as top, middle and bottom Rate your leaders as top, middle and bottom

performers using OBJECTIVE criteria – money is performers using OBJECTIVE criteria – money is best for ROI!best for ROI!

Page 24: Achieving ROI On Leadership Investment John Bradford

Step One: Identify PotentialStep One: Identify Potential• ‘‘Begin with the end in mind’ – think RESULTS!Begin with the end in mind’ – think RESULTS!• Rate your leaders as top, middle and bottom performers Rate your leaders as top, middle and bottom performers

using OBJECTIVE criteria – money is best for ROI!using OBJECTIVE criteria – money is best for ROI!• Analyse Analyse youryour Top Performers & create a profile of your best Top Performers & create a profile of your best

leaders – what they share in commonleaders – what they share in common– Their core abilitiesTheir core abilities– Their personality and behavioursTheir personality and behaviours– Their motivationsTheir motivations

Page 25: Achieving ROI On Leadership Investment John Bradford

Step One: Identify PotentialStep One: Identify Potential• ‘‘Begin with the end in mind’ – think RESULTS!Begin with the end in mind’ – think RESULTS!• Rate your leaders as top, middle and bottom performers using OBJECTIVE criteria – Rate your leaders as top, middle and bottom performers using OBJECTIVE criteria –

money is best for ROI!money is best for ROI!• Analyse Analyse youryour Top Performers & create a profile of your best leaders – what they share Top Performers & create a profile of your best leaders – what they share

in commonin common– Their core abilitiesTheir core abilities– Their personality and behavioursTheir personality and behaviours– Their motivationsTheir motivations

• Use this Profile toUse this Profile to– Specifically hire for the potential your Top Performers haveSpecifically hire for the potential your Top Performers have– Carefully avoid hiring what your Bottom Performers haveCarefully avoid hiring what your Bottom Performers have– Figure out how to raise the game of your ‘average’ or Middle performersFigure out how to raise the game of your ‘average’ or Middle performers

Page 26: Achieving ROI On Leadership Investment John Bradford

Predicting Performance

The example’s on the following slides were generated from the ProfileXT. The Profile XT is the most technologically advanced, state-of-the-art system available today for measuring human potential and predicting job performance.

Page 27: Achieving ROI On Leadership Investment John Bradford

Information processing Information processing capability & style capability & style

Personality & BehaviorPersonality & Behavior

Turn ons / turn offsTurn ons / turn offs

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Thinking StyleThinking Style

Occupational InterestsOccupational Interests

Behavioral TraitsBehavioral Traits

Learning IndexLearning Index

Verbal SkillVerbal Skill

Verbal ReasoningVerbal Reasoning

Numerical AbilityNumerical Ability

Numeric ReasoningNumeric Reasoning

EnterprisingEnterprising

Financial/AdminFinancial/Admin

People ServicePeople Service

TechnicalTechnical

MechanicalMechanical

CreativeCreative

Energy LevelEnergy Level

AssertivenessAssertiveness

SociabilitySociability

ManageabilityManageability

AttitudeAttitude

DecisivenessDecisiveness

AccommodatingAccommodating

IndependenceIndependence

Objective JudgmentObjective Judgment

Page 28: Achieving ROI On Leadership Investment John Bradford

Top PerformerTop PerformerProfileProfile

Shaded areas indicate Shaded areas indicate the required potentialthe required potential

The Profile shows The Profile shows requirements for requirements for

superior performance superior performance in in youryour company company

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Thinking StyleThinking Style

Occupational InterestsOccupational Interests

Behavioral TraitsBehavioral Traits

Learning IndexLearning Index

Verbal SkillVerbal Skill

Verbal ReasoningVerbal Reasoning

Numerical AbilityNumerical Ability

Numeric ReasoningNumeric Reasoning

EnterprisingEnterprising

Financial/AdminFinancial/Admin

People ServicePeople Service

TechnicalTechnical

MechanicalMechanical

CreativeCreative

Energy LevelEnergy Level

AssertivenessAssertiveness

SociabilitySociability

ManageabilityManageability

AttitudeAttitude

DecisivenessDecisiveness

AccommodatingAccommodating

IndependenceIndependence

Objective JudgmentObjective Judgment

Page 29: Achieving ROI On Leadership Investment John Bradford

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Thinking StyleThinking Style

Occupational InterestsOccupational Interests

Behavioral TraitsBehavioral Traits

Learning IndexLearning Index

Verbal SkillVerbal Skill

Verbal ReasoningVerbal Reasoning

Numerical AbilityNumerical Ability

Numeric ReasoningNumeric Reasoning

EnterprisingEnterprising

Financial/AdminFinancial/Admin

People ServicePeople Service

TechnicalTechnical

MechanicalMechanical

CreativeCreative

Energy LevelEnergy Level

AssertivenessAssertiveness

SociabilitySociability

ManageabilityManageability

AttitudeAttitude

DecisivenessDecisiveness

AccommodatingAccommodating

IndependenceIndependence

Objective JudgmentObjective Judgment

GoodGoodMatchMatch

Page 30: Achieving ROI On Leadership Investment John Bradford

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Thinking StyleThinking Style

Occupational InterestsOccupational Interests

Behavioral TraitsBehavioral Traits

Learning IndexLearning Index

Verbal SkillVerbal Skill

Verbal ReasoningVerbal Reasoning

Numerical AbilityNumerical Ability

Numeric ReasoningNumeric Reasoning

EnterprisingEnterprising

Financial/AdminFinancial/Admin

People ServicePeople Service

TechnicalTechnical

MechanicalMechanical

CreativeCreative

Energy LevelEnergy Level

AssertivenessAssertiveness

SociabilitySociability

ManageabilityManageability

AttitudeAttitude

DecisivenessDecisiveness

AccommodatingAccommodating

IndependenceIndependence

Objective JudgmentObjective Judgment

QuestionableQuestionableMatchMatch

Page 31: Achieving ROI On Leadership Investment John Bradford
Page 32: Achieving ROI On Leadership Investment John Bradford

Know with total clarity what Know with total clarity what PotentialPotential is essential for is essential for

leadership success in your leadership success in your organization organization

– and hire / develop to produce it– and hire / develop to produce it

Page 33: Achieving ROI On Leadership Investment John Bradford

Predicting Performance

The example’s on the following slides were generated from the ProfileXT. The Profile XT is the most technologically advanced, state-of-the-art system available today for measuring human potential and predicting job performance.

To learn more please contact:John Bradford, Senior Vice President

Profiles International, [email protected]

Phone: 254-399-5551

Page 34: Achieving ROI On Leadership Investment John Bradford

Step Two: Now You have Identified Step Two: Now You have Identified potential, look to competencypotential, look to competency

• Rate ALL managers using a well-researched Rate ALL managers using a well-researched universal leadership competency tooluniversal leadership competency tool

Page 35: Achieving ROI On Leadership Investment John Bradford

You must know your managers You must know your managers

and their competencies…and their competencies…

……inside outinside out

Page 36: Achieving ROI On Leadership Investment John Bradford

8 Universal Leadership Clusters8 Universal Leadership Clusters‘Hard’ & ‘Soft Skills’‘Hard’ & ‘Soft Skills’

CommunicationCommunication

LeadershipLeadership

AdaptabilityAdaptability

RelationshipsRelationships

Task ManagementTask Management

ProductionProduction

Development of OthersDevelopment of Others

Personal DevelopmentPersonal Development

Page 37: Achieving ROI On Leadership Investment John Bradford

Task ManagementTask Management• Works EfficientlyWorks Efficiently

44.44. Applies current technology in practical ways to maximize efficiencyApplies current technology in practical ways to maximize efficiency

45.45. Makes wise use of outside resourcesMakes wise use of outside resources

46.46. Avoids procrastinationAvoids procrastination

47.47. Set priorities and tackles assignments accordinglySet priorities and tackles assignments accordingly

• Works CompetentlyWorks Competently

48.48. Demonstrates mastery of fundamentals necessary to jobDemonstrates mastery of fundamentals necessary to job

49.49. Is skilled at learning and applying new information quicklyIs skilled at learning and applying new information quickly

50.50. Integrates new theories, trends and methods into appropriate business Integrates new theories, trends and methods into appropriate business operationsoperations

… … 8 Skill clusters break into 18 Skill Sets, and further into 70 individual survey items…8 Skill clusters break into 18 Skill Sets, and further into 70 individual survey items…

Page 38: Achieving ROI On Leadership Investment John Bradford

15 minute to look inside 15 minute to look inside your leadership capabilities…your leadership capabilities…

Anonymous & Confidential

Anonymous & Confidential

Page 39: Achieving ROI On Leadership Investment John Bradford

Measuring Competencies

The example’s on the following slides were generated from the Checkpoint 360 survey. The Profiles CheckPoint Management System is a powerful three-part solution for management and leadership skills.

Page 40: Achieving ROI On Leadership Investment John Bradford

How do my manager-How do my manager-leaders rate leaders rate

on critical on critical competences?competences?

Page 41: Achieving ROI On Leadership Investment John Bradford

How do my manager-How do my manager-leaders rate leaders rate

on critical on critical competences?competences?

Page 42: Achieving ROI On Leadership Investment John Bradford

Step Two: Now You have Identified Step Two: Now You have Identified potential, look to competencypotential, look to competency

• Start with your top performers – and identify those Start with your top performers – and identify those competencies that your Top Performers share in competencies that your Top Performers share in commoncommon

• Rate ALL managers using a well-researched Rate ALL managers using a well-researched universal leadership competency tooluniversal leadership competency tool

Page 43: Achieving ROI On Leadership Investment John Bradford

Step Two: Now You have Identified Step Two: Now You have Identified potential, look to competencypotential, look to competency

• Develop individual plans that address gaps in these Develop individual plans that address gaps in these competencies in your Middle and Bottom performerscompetencies in your Middle and Bottom performers

• Rate ALL managers using a well-researched universal Rate ALL managers using a well-researched universal leadership competency toolleadership competency tool

• Start with your top performers – and identify those Start with your top performers – and identify those competencies that your Top Performers share in commoncompetencies that your Top Performers share in common

Page 44: Achieving ROI On Leadership Investment John Bradford

Step-by-Step Individual Step-by-Step Individual Development Action Plan Development Action Plan

Page 45: Achieving ROI On Leadership Investment John Bradford

Measuring Competencies

The example’s on the following slides were generated from the Checkpoint 360 survey. The Profiles CheckPoint Management System is a powerful three-part solution for management and leadership skills

To learn more please contact:John Bradford, Senior Vice President

Profiles International, [email protected]

Phone: 254-399-5551

Page 46: Achieving ROI On Leadership Investment John Bradford

Step Two: Now You have Identified Step Two: Now You have Identified potential, look to competencypotential, look to competency

• Develop a corporate wide plan to develop these critical Develop a corporate wide plan to develop these critical competenciescompetencies

• Rate ALL managers using a well-researched universal Rate ALL managers using a well-researched universal leadership competency toolleadership competency tool

• Start with your top performers – and identify those Start with your top performers – and identify those competencies that your Top Performers share in commoncompetencies that your Top Performers share in common

• Develop individual plans that address gaps in these Develop individual plans that address gaps in these competencies in your Middle and Bottom performerscompetencies in your Middle and Bottom performers

Page 47: Achieving ROI On Leadership Investment John Bradford

Competences and Competences and Skill essential for Skill essential for

success?success?

Page 48: Achieving ROI On Leadership Investment John Bradford

How good do we How good do we believe we are in believe we are in

these critical areas?these critical areas?

Page 49: Achieving ROI On Leadership Investment John Bradford

What does my organization What does my organization need to focus on? need to focus on?

Development prioritiesDevelopment priorities- presented in order of - presented in order of

urgencyurgency

Page 50: Achieving ROI On Leadership Investment John Bradford

Step Two: Now You have Identified Step Two: Now You have Identified potential, look to competencypotential, look to competency

• Review progress at least annually – our businesses changes Review progress at least annually – our businesses changes more quickly than even we realisemore quickly than even we realise

• Rate ALL managers using a well-researched universal Rate ALL managers using a well-researched universal leadership competency toolleadership competency tool

• Start with your top performers – and identify those Start with your top performers – and identify those competencies that your Top Performers share in commoncompetencies that your Top Performers share in common

• Develop individual plans that address gaps in these Develop individual plans that address gaps in these competencies in your Middle and Bottom performerscompetencies in your Middle and Bottom performers

• Develop a corporate wide plan to develop these critical Develop a corporate wide plan to develop these critical competenciescompetencies

Page 51: Achieving ROI On Leadership Investment John Bradford

The ‘game’ changes all the time - The ‘game’ changes all the time - and you must change with itand you must change with it

Page 52: Achieving ROI On Leadership Investment John Bradford

““Sure, the lion is king of the jungle, Sure, the lion is king of the jungle, but airdrop him into Antarctica,but airdrop him into Antarctica,and he's just a penguin's bitch”and he's just a penguin's bitch”

Dennis Miller

Page 53: Achieving ROI On Leadership Investment John Bradford

Results we Results we Require?Require?

Potential Potential to achieve to achieve

thesethese results?results?

Competency Competency to achieve to achieve

thesethese results results

Action! Action! Identify, Identify,

Plan, Plan, DevelopDevelop

Page 54: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership MANAGING for ROI on your leadership investment – consciously!investment – consciously!

Page 55: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership MANAGING for ROI on your leadership investment – consciously!investment – consciously!

• Targeting specific developments to achieve Targeting specific developments to achieve specific, clearly identified resultsspecific, clearly identified results

Page 56: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership MANAGING for ROI on your leadership investment – consciously!investment – consciously!

• Targeting specific developments to achieve Targeting specific developments to achieve specific, clearly identified resultsspecific, clearly identified results

• ‘‘Raising the game’ of every managerRaising the game’ of every manager

Page 57: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership MANAGING for ROI on your leadership investment – consciously!investment – consciously!

• Targeting specific developments to achieve Targeting specific developments to achieve specific, clearly identified resultsspecific, clearly identified results

• ‘‘Raising the game’ of every managerRaising the game’ of every manager

• MANAGING your leadership funnelMANAGING your leadership funnel

Page 58: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership MANAGING for ROI on your leadership investment – consciously!investment – consciously!

• Targeting specific developments to achieve Targeting specific developments to achieve specific, clearly identified resultsspecific, clearly identified results

• ‘‘Raising the game’ of every managerRaising the game’ of every manager

• MANAGING your leadership funnelMANAGING your leadership funnel

• Abandoning hope!Abandoning hope!

Page 59: Achieving ROI On Leadership Investment John Bradford

What are you then doing?What are you then doing?

• MANAGING for ROI on your leadership investment – MANAGING for ROI on your leadership investment – consciously!consciously!

• Targeting specific developments to achieve specific, Targeting specific developments to achieve specific, clearly identified resultsclearly identified results

• ‘‘Raising the game’ of every managerRaising the game’ of every manager

• MANAGING your leadership funnelMANAGING your leadership funnel

• Abandoning hope!Abandoning hope!

• Assuring your futureAssuring your future

Page 60: Achieving ROI On Leadership Investment John Bradford

If you keep doing what you’re doing…If you keep doing what you’re doing…

You’ll keep getting what you’re gettingYou’ll keep getting what you’re getting

Page 61: Achieving ROI On Leadership Investment John Bradford

Gratuitous Plug

To learn how we can help you “AchieveROI on your Leadership Investment “ please contact:

John Bradford, Senior Vice PresidentSenior Vice President Consulting Services

Profiles International, [email protected]

Phone: 254-399-5551

Page 62: Achieving ROI On Leadership Investment John Bradford

Achieving ROI on your Achieving ROI on your Leadership investmentLeadership investment