Hr Leadership Whats Your Bumper Sticker

Lessons on Leadershipfrom the

HR Front Line

Jim Shanley

February, 2007

2 Atlanta HR Leadership Forum Jim Shanley [email protected] 919-245-1018

Your organization is talking about you…..right now!

? ? ? ? ?

What are they saying about you? What’s your bumper sticker?


Confront reality…….don’t stick your head in the sand!


Agenda

• What’s shaped my point of view

• What’s your point of view?

• My lessons learned around what separates the Best from the Rest

• What CEO’s expect from HR

• Paradoxes in building your leadership bench

• The keys to building your leadership bench

• Seven characteristics of highly effective HR pros

• Open discussion


What & who have shaped my career & thinking

• My last 20 years @ Bank of America– The company’s growth– The superb HR leaders/generalists I’ve worked with– The HR/LD/OD/Learning/Staffing teams I’ve built and had the privilege of learning

from

• My current consulting clients

• The 1500+ HR professionals I’ve interviewed in the last 10 years

• My experience on McKinsey’s “War for Talent” steering group

• The 100+ presentations to groups like this in the past 5 years

• Thought leaders & mentors who’ve pushed me :

Bob Eichinger

Ram Charan

Pat Pinto

Dave Ulrich

David Dotlich

Mel Sorcher

Bob Stringer

Hal Johnson

Peter Cairo


The Hunch• Over-capacity• Massive consolidation• Changing regulation• Scale will matter

My Experience Influences My Point of View

1986

• Charlotte, NC• Small….NC only

– Revenue– Net Income– Market Cap– Branches– Geography– Employees

$500 mm$66 mm$500 mm150NC5,000


The Company Grew Fast

$70+bb

$20+bb

$240 bb

6,000

Global

225,000

Today

Revenue

Net Income

Market Cap

Stores

Geography

Employees

$500 mm

$66 mm

$500 mm

150

NC

5,000

1986

Our goal was to never let “leadership bench” be a constraint

to growth


Agenda








• Open discussion


Congratulations….you’ve just been hired as the top HR executive at a Fortune 500 Company. The CEO has charged you with significantly upgrading the HR staff…..and doing it quickly. You’ll need to hire externally:

The CEO wants to know the following:

1. What are the 3 questions you’ll ask to “test” a candidate’s business acumen?

2. What are the top three competencies you’ll hire to?

You’re in charge!!!


GEAllied SignalHoneywellUPSDiageoPillsbury

PepsiCoca ColaHome DepotYum BrandsDisneyMattel

IBMGatewayDellMotorola3M

AccenturePrice WaterhouseTowers-PerrinHewittSibsonPDI

WachoviaGoldman SachsMerrill LynchDuke Energy

Anheuser-Busch

1. ? ? ?

2. ? ? ?

What do these companies have in common?


Business leaders

that can

establish credibility, build relationships & influence executivesand

leverage broad based & deep technical HR skills

to

grow the top line & bottom line

My hiring profile for HR, TM, OD, LD, Staffing, Comp etc.


II IV

I III

TE

CH

NIC

AL

HR

SK

ILL

S /

BU

SIN

ES

S A

CU

ME

N

CREDIBILITY / RELATIONSHIP / INFLUENCING SKILLSLO

LO

HI

HI

Fail now….

Goal

Dangerous

Shame

Where are you?

30% 30%

30% 10%


What CEO’s Should Expect From US

• Relevant to the business

• Trusted counselor to the CEO & team

• Focused on driving the P&L

• Simple processes

• Flawless execution

• Catalyst for change


My view from the “trenches”…the “state” of HR

• 50 +% of the talent falls in one of the following categories:

• irrelevant or “non-essential”

• implementers with limited “ theory of the case”

• administrative and/or transactional

• employee relations focused

• The majority don’t recognize a “P” from an “L”

• Most are either threatened by or totally dependent on consultants

• Few real meaningful metrics exist

• More and more will get outsourced

A great opportunity!!!!!


Agenda








• Open discussion


Common characteristics of the BEST HR Pros

1. They are great business people and think like executives

2. They are technically grounded and don’t fall for fads…..they know what it takes to build a leadership bench

3. They have a strong performance orientation and display guts & courage

4. They are great teammates in HR and demand goal & role clarity

5. They are superb consultants that have a theory of the case, communicate a point of view and take a stand

6. They have power & influence and wield it appropriately, are widely trusted and are in the “inner sanctum” at executive levels

7. They are great talent managers & leaders ….they have a nose for talent and can attract great people to their teams

And they are great at & love EXECUTION


1. Explain your company’s strategy and how you make money in “kitchen English”.

2. Go through your company’s P&L and balance sheet

– Revenue– Net Income– EPS– P/E Ratio– ROE

– ROA– Revenue / Employee– Market Cap– Total Personnel Expense-Base

-Incentives-Benefits

– Revenue Growth– SVA– Expense Growth– Operating Leverage

4. Everything is public

5. There are NO excuses

Can you talk to your CEO?Business people that think like executives

3. Do you know your payroll expense….per day/week/month?


What CEO’s and senior executives care about

• Investors……..and analysts

• Their Board

• Next quarter’s results….and then?

• Top line & bottom line growth

• Expense reduction

• Regulators

• They don’t care about most of the stuff all of us talk about

The “BEST” frame up HR issues in ways CEO’s get












NO FADS!!!!!!!!

Free Jack Welch trading card in

every box!

Jack Welch -- G.E.

• Radical honesty

• Jesus as CEO

• Authentic leadership

• “Cheese” leadership

• etc

ELIMINATE THE FROO- FROO

Slide adapted from Marc Effron

Technically grounded


What’s New in Talent Management? The Current State

• “ Companies go outside too often to find talent”

• “Execs don’t have a choice when making appointments to key positions”

• “Companies have too many execs derail when promoted to higher level positions”

• “Companies are promoting people to their level of incompetence”

• “Development plans are pathetic…and if they exist are not implemented”

• “Companies start out with a huge pool of talented beginners, but lose too many of them”

• “Managers shy away from having frank discussions to and about their people”

SOURCE????????


What’s New in Talent Management

Not Much!!!!!!!!!!!!!!!!!

It’s all about “will” & EXECUTION

This talent stuff may be common sense, but it isn’t common!


They are REALLY grounded in all HR functions

SelectionHiring the Best

RecruitingFinding the Best

Professional DevelopmentProviding Challenge and Learning

Assignment ManagementPlacing the Best Retention

Keeping the Best

Talent ManagementPreparing the Best

Reward &Recognition Encouraging &Reinforcing High Performance

Performance ManagementSetting and Holding to Clear Expectations

They know how to architect HR systems to drive performance & strategy execution

The BEST are not 1 trick ponies

CompensationPaying for Performance


And revel in the ambiguity & paradoxes of talent management

1. Maintaining a consistent corporate philosophy on leadership development

2. Developing sound comprehensive / integrated processes that work

3. Emphasizing the development of high potential general managers

4. Keeping individuals in a position long enough for learning and development to occur

5. Filling positions with the “best fit” candidate

while

while

as well as

while

while

supporting the unique needsof individual business units

keeping it simple in appearance & process

high talent functional specialists

keeping the pipeline full to export talent to fuel new acquisitions and business opportunities

taking bets by providing stretch learning assignments and increasing the diversity of executives

companies continues to become leaner, flatter and more specialized

7. Providing individuals with a variety of experiences

8. Providing individuals with candid feedback

9. Promoting from within

10. Encouraging a positive HR role

6. Providing leaders with diverse global assignments as an increasing number of hipots are resisting multiple relocations

as

yet

yet

while

maintaining confidentiality of opinions

maintaining a flow of outside talent

keeping the process line-driven

This slide adapted from Pat Pinto


Your Assumptions….

• You've just become head of Human Resources for a large company without strong leadership development & talent management processes. In 10 minutes you have to give a presentation to your Board of Directors. They've charged you with building a deep bench of leaders to fuel growth.

• The CEO has asked you to articulate a point of view and engage the Board around the following questions:

1. With regards to building a deep bench of leaders…If we could focus our efforts on only four

things, what should we do and where should we start?

2. Explain how leaders develop and articulate your leadership development principles?

3. Which leader segments should we invest in?

4. What is all this “leadership pipeline” stuff about?

5. How much are “C” leaders costing the company?

6. What criteria will you use to determine if someone is a “high potential”? How will you develop

them once you identify them?

7. Why will leaders derail here?

8. What HR processes should we leverage to build our leadership engine?


Question #1

What should we do?

And . . . . .

Where should we start?


What to Do and Where to Start

Point of View... Where to Start

• Focus on four things

1. Create a winning value proposition for attractingand retaining great talent.

2. Build a talent mindset at the top.

3. Develop a culture that encourages candor andrisk taking when dealing with people and careers.

4. Build solid leadership development processes.


Create a Winning Value Propositionto Attract and Retain Great Leaders*


• Values & culture

• Exciting challenges

• Strong performance

• Well managed

• Talented teammates

• Industry leader

• Good at development

• Freedom & autonomy• Exciting challenges• Career growth &

advancement

• Differentiated compensation• High total compensation• Location & lifestyle

Great company(brand)

Great jobs(products)

Compensation & lifestyle(price)

_____Grade

_____Grade

_____Grade

*Adapted from McKinsey & Co. War for Talent Study


Keys to Building a StrongLeadership Bench*


• Line management accountability• Simple, rigorous, action oriented talent

review process• Executive Management jointly owns

development of the top 250 - 500• Robust processes in:

– Recruiting & Assimilation– Assignment Management– Assessment– Performance Management– Feedback & Coaching– Education & Development

• Executives talk about people frequently ina candid and probing way... they differentiate people on performanceand potential

• Willingness to put people in stretch assignments

• Executives are expected to askfor and give insightful feedback

• Executives talk candidly about their own and others' development

• Shared set of values around people development

• A belief that talent impacts business results

• Executives know what an 'A' player is• Performance bar continually raised

• A pervasive meritocracy & musclebuilding philosophy

• Executives are accountable for people management and development

Talent mindset

_____Grade

_____Grade

_____Grade

Create a winning value proposition to attract & retain great leadersC

ultu

re th

at e

ncou

rage

s

cand

or a

nd r

isk

taki

ngForm

al leadership

development processes













They demonstrate guts & call the question on “C” players

Fewer “A” playersattracted to join thecustomer group orcompany

Keep C’s incritical jobs

Development/advancementopportunitiesblocked

Subordinatesnot developed

Productivityand morale ofgroup is low

Performance injob is low

Highperformersleave thecompany

• At least 10 - 20% of leaders & HR professionals in every company are “C” leaders

• In 2007, “C” leaders will cost your company $X (20% of Salary & Wage expense)

• McKinsey’s “War for Talent” research indicates “A” players outperform “C” players by 3X

• “C” leaders & HR professionals create a vicious cycle

14


Strong performance orientation












Rol

e C

lari

ty

Process C

larity (PS

& D

M)

Goal Clarity

2. • Your HR Team

• Your HR partners

• Your Corporate HR teams

3. Answer the question around “who” owns the client and how work gets done

Role clarity……in HR

1. Stop the age old battle with Generalists & LD/OD/TM/Comp etc…………..….practice what we preach

Great HR Teammates

Trust


1. We are part of the HR team

2. HR

Provides the leadership, processes, toolsand business partnership:

• recruitment/talent management• compensation practices• business and people advisory

Leaders and Associates….so they can

– drive revenue & operating leverage– increase productivity– manage risk & cost– increase associate & customer satisfaction

Customers / Clients

….can experience banking working forthem in ways it never has before….

3. The HR generalist is the quarterback of the HR team……..period!

4. We support the HR generalists and their partners by developing and implementing processes, programs and initiatives to:

– Align leaders and systems to drive strategy execution– Build leadership talent and depth to fuel growth– Ensure associates & the “organization” have the skills & capabilities to perform– Architect and align HR systems to drive performance

TO

SOTHAT

My “mantra” at Bank of America

Can become the world’s most admiredCompany

ANDBank of America


My other HR “mantras” at Bank of America

“The strength of the wolf is in the pack ...…….& the strength of the pack is in the wolf……you can be a lone wolf, but the pack will turn on you and you’ll get cold & hungry”

NO P.A. Behavior!!!!!!!!!!

“No one in HR has to earn the trust of another HR teammate…..we trust each other with our corporate lives…..day 1”

“Once a decision is made……..make a savage embrace around the decision…..speak with one voice to the client

“We are clear as to where our “loyalties” lie ..the enterprise is first….ALWAYS……and then we are clear what’s next”












Consulting

• Peter Block was the best & WORST thing for internal consultants

– We’re not paid to just be “consultative”

• The best can operate with clients as peers

• Many HR professionals haven’t surfaced their assumptions or articulated their principles and frameworks to themselves……so they act without a “theory of the case”

• Since the best are confident……they are comfortable with articulating their point of view about the business and are willing to take a stand ……and “relish” taking stands that are politically dicey

• They force clients to choose

Superb consultants

FAST

CHEAP

GOOD

Pick2












Sources of power

• Position power– Authority based on your role– Control over resources & information– Ability to remove obstacles

• Expert power– Credibility based on your knowledge & experience

• Relationship power– People’s trust in, admiration of, and identification with you based on

how you interact with others

• Political power– Your perceived ability to apply negative or positive consequences to

others

Get straight around your personal view of power!

Are you leveraging ALL the power you have?

To master COMMAND SKILLS you have to get comfortable with the concept of power!

Power & influence


The inner sanctum

• Are you comfortable with power?

• Do your line clients & HR partners trust you with their corporate life?

• Are the majority of your discussions NOT about HR stuff?

• Are you seen as one of the prime architects of the business strategy?

• If you were in a conversation with your unit’s CEO & CFO would observers have a hard time figuring out who was the HR person?

If you answered yes to the questions above you’re IN


And you need to be widely trusted to wield power & be “IN”

• Hard to define…..you know it when you have it and when you don’t Do others question your motives, action or commitment? Do you shade, manage or withhold information? Do others sense a personal or functional agenda? Are you transparent?

• Without trust you can’t navigate or build coalitions.

• We trust people who are predictable They make their position known and clear

• To build trust Keep promises/ meet commitments Go first












Are you a role model?

• Are you seen as a key leader in the business? When there is a really tough business challenge do other leaders want you there & turn to you?

• When there is a critical hire to be made……..is your opinion sought out? Are you considered to be one of the best judges of talent?”

• Have you perfected Talent Management in your HR function?

• Do you have a talent mindset? Do you:– Have a belief that talent impacts business results?– Know what an 'A' player is?– Continually raise the performance bar?– Insist on muscle-building activities?– Insist on making meritocracy real?

Talent manager & leader


And in your shop

• Do you use all of the tools and processes you push out in your company?

• Are you seen as a great coach to your people?

• Have you ensured “A” players are in all your critical positions?

• Do some of the best in the profession want to work with you?

• Are many of your direct reports now in significant HR roles?












So……………………………..

1. Are you relevant or are you “non-essential”?2. Are you making a difference?3. How do you know? Are you in the inner sanctum?4. What’s your bumper sticker?

– What do they say when you’re not in the room?– Will they trust you with their corporate life?

5. If you’re in a company…………..– How strong and how much power does your HR function

have?– If it’s not a lot, what’s your plan?

6. If you’re on your own…………….– Are you making a difference?– Are you making a living?

7. Are you growing?8. Are you having fun?


So….face reality…….don’t stick your head in the sand!


In a fast paced, rapidly changing, highly competitive environment...

then you are probably

If you don't have the courage to risk your career

Risking your career !

36

And finally………


But….

37

Risk Wisely


Jim Shanley retired from Bank of America in March of 2006 after a 20 year career with the company. He played a leadership role in growing the company from a small regional bank into one of the world’s largest and most profitable companies earning in excess of $70bb in revenue, $20bb in net income and employing over 225,000 people. He led the cultural integration in over 15 significant mergers and acquisitions.

At Bank of America, he had corporate wide accountability for Staffing, Executive Development & Succession Planning, Organization Development, Leadership Development and Learning. He was a member of the

Management Operating Committee and regularly worked with the Board of Directors. He led a team of over 1500 professionals and managed a budget in excess of $300mm. Under Jim’s leadership, Bank of America earned a reputation as a benchmark company for their Leadership Development and Talent Management programs and processes.

Prior to Bank of America, Shanley was a Naval Officer, a management consultant, and headed up leadership development for a medium size manufacturing firm.

Jim is the past co-chairman of the Conference Board Council on Training, Education, and Development, and also served on the steering committee of McKinsey & Company’s groundbreaking “War for Talent” research project. He is a frequent national speaker on the topics of Leadership & Executive Development, Mergers & Acquisitions, and Change Management. He has also served as a consultant to the White House.

Jim’s consulting practice focuses on six areas:

• Talent Management & Succession Planning

• Executive Coaching , Executive Assessment, Executive Assimilation

• Leadership Development....processes, high potential programs, action learning, leadership training

• OD work with Mergers & Acquisitions (culture assessment, cultural integration, change management)

• Top Team Alignment

• Working with HR functions to increase their effectiveness and impact

Shanley received a B.S. from Purdue University and an MBA from the University of Georgia. His spouse, Vera, is a studio potter ( www.verapottery.com) and a retired pediatric anesthesiologist. They live on a farm in Hillsborough, North Carolina.

.

Jim Shanley

http://www.verapottery.com/

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Hr Leadership Whats Your Bumper Sticker