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IRS 360IRS 360° Assessment Study:° Assessment Study:Developing Great LeadersDeveloping Great Leaders
Jim TrinkaJim TrinkaDirector, Leadership and Organizational EffectivenessDirector, Leadership and Organizational Effectiveness
IRS Strategic Human ResourcesIRS Strategic Human Resources
2
Motivations for this StudyMotivations for this StudyFeedback showed that while we had leaders Feedback showed that while we had leaders
complete 360° assessments, we did not do a complete 360° assessments, we did not do a great job of either interpreting the results or great job of either interpreting the results or customizing developmental improvementscustomizing developmental improvements
In a tight budget environment, we needed to In a tight budget environment, we needed to focus developmental efforts to achieve the focus developmental efforts to achieve the greatest impact on behavior and resultsgreatest impact on behavior and results
4
Leadership Effectiveness Impacts Balanced Measures Leadership Effectiveness Impacts Balanced Measures
Data from The Extraordinary Leader, by Jack Zenger and Joe Folkman
19
14
9
02468
101214161820
Ave
rage
Per
cent
Tur
nove
r
Poor Leaders Good Leaders Great Leaders
Great leaders have lower
turnover
Employee Satisfaction
-1.2
2.4
4.5
-2
-1
0
1
2
3
4
5
Net
Inco
me
(mill
ions
)
Poor Leaders Good Leaders Great Leaders
Great leaders generate higher
net income
Business Results
39
49
68
0
10
20
30
40
50
60
70
Cus
tom
er S
atis
fact
ion
(%)
Poor Leaders Good Leaders Great Leaders
Great leaders havemore satisfied
customers
Customer SatisfactionLeadership Effectiveness – 360Assessed (Insurance Co.)
Leadership Effectiveness – 360Assessed (High Tech Co.)
Leadership Effectiveness – 360Assessed (Mortgage Bank)
5
Leadership Effectiveness Impacts Employee Leadership Effectiveness Impacts Employee EngagementEngagement
22
30
3843 45
52 54
70
8084
10
20
30
40
50
60
70
80
90E
mpl
oyee
Eng
agem
ent
10 20 30 40 50 60 70 80 90 100
Data from The Extraordinary Leader, by Jack Zenger and Joe Folkman
Great leaders makea great difference
Good leaders havean adequate impact
Poor leaders createdissatisfaction
Finding: Finding: It takes a substantial change in leadership It takes a substantial change in leadership effectiveness (perceived by 360effectiveness (perceived by 360 assessments) to greatly assessments) to greatly impact balanced measures and employee engagement impact balanced measures and employee engagement (i.e., the relationship is not incremental)(i.e., the relationship is not incremental)
Leadership Effectiveness – 360 Assessed (High Tech Co.)
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IRS Leadership Competency ModelIRS Leadership Competency ModelLeadershipLeadership Employee Employee
SatisfactionSatisfactionCustomer Customer
SatisfactionSatisfactionBusiness Business ResultsResults
EEO and EEO and DiversityDiversity
Adaptability Adaptability (AD)(AD)
Continual Continual Learning (CL)Learning (CL)
Customer Focus Customer Focus (CF)(CF)
Achievement Achievement Orientation (AO)Orientation (AO)
*Supporting *Supporting Compe-Compe-tenciestencies
Communication* Communication* (CO)(CO)
Developing Developing Others* (DO)Others* (DO)
Entrepreneurship Entrepreneurship (EN)(EN)
Business Business Acumen (BA)Acumen (BA)
Decisiveness Decisiveness (DC)(DC)
Diversity Diversity Awareness* (DA)Awareness* (DA)
External External Awareness (EA)Awareness (EA)
Political Savvy Political Savvy (PS)(PS)
Integrity/Integrity/Honesty* (I/H)Honesty* (I/H)
Group Group Leadership* (GL)Leadership* (GL)
Influencing/ Influencing/ Negotiating* (I/N)Negotiating* (I/N)
Problem Problem Solving* (PR)Solving* (PR)
Service Service Motivation (SM)Motivation (SM)
Teamwork (TW)Teamwork (TW) Partnering* (PA)Partnering* (PA) Technical Technical Credibility (TC)Credibility (TC)Strategic Strategic
Thinking (ST)Thinking (ST)
• A daunting list of 21 competencies for IRS leaders to become A daunting list of 21 competencies for IRS leaders to become proficient in to increase overall perceived leadership effectivenessproficient in to increase overall perceived leadership effectiveness
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Traditional Incremental Development ApproachTraditional Incremental Development Approach
33.13.23.33.43.53.63.73.83.9
4
AO AD BA CM CL CF DC DO DA EN EA GL I/N I/H PA PS PR SM ST TW TC
Prof
icie
ncy
Scor
e - 3
60 A
sses
sed
IRS Leadership Competencies (in alphabetical order)
Traditional developmental approach would primarily focus on Traditional developmental approach would primarily focus on circled weaknesses (a 10% rise in these 3 competencies would circled weaknesses (a 10% rise in these 3 competencies would improve this executive’s effectiveness to the 55improve this executive’s effectiveness to the 55thth percentile with a percentile with a corresponding increase of only 3% in employee engagement!)corresponding increase of only 3% in employee engagement!)
• Here is an IRS executive with an overall leadership effectiveness Here is an IRS executive with an overall leadership effectiveness rating at the 50rating at the 50thth percentile assessed through a 360 percentile assessed through a 360 evaluation evaluation
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IRS 360IRS 360 Assessment Methodology Assessment Methodology Rigorous statistical analysis of the 360Rigorous statistical analysis of the 360° assessment ° assessment
data from 785 IRS managersdata from 785 IRS managers– 101 Executives101 Executives– 498 Senior Managers498 Senior Managers– 186 Front-line Managers186 Front-line Managers
Compare “great” IRS leaders (top 10%)* to the Compare “great” IRS leaders (top 10%)* to the bottom 10% to determine what others perceive are bottom 10% to determine what others perceive are the key competencies that put them above the restthe key competencies that put them above the rest
Compare developmental approaches of building key Compare developmental approaches of building key strengths vs. correcting weaknesses of IRS leaders strengths vs. correcting weaknesses of IRS leaders to determine which approach most increases to determine which approach most increases perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)*percentile ranked by average “Total Others” scores across all 21 competencies for each leader*percentile ranked by average “Total Others” scores across all 21 competencies for each leader
9
Key Competencies that Set Apart Great IRS LeadersKey Competencies that Set Apart Great IRS Leaders
LeadershipLeadership Employee Employee SatisfactionSatisfaction
Customer Customer SatisfactionSatisfaction
Business Business ResultsResults
EEO and EEO and DiversityDiversity
Communication*Communication* Developing Developing Others*Others*
External External AwarenessAwareness
Business Business AcumenAcumen
*Supporting *Supporting CompetenciesCompetencies
Service Service MotivationMotivation
Group Group Leadership*Leadership*
Influencing/ Influencing/ Negotiating*Negotiating*
Political Political SavvySavvy
Strategic Strategic ThinkingThinking
Problem Problem Solving*Solving*
Technical Technical CredibilityCredibility
Comparing the top 10% of IRS leaders to the bottom 10% yields a Comparing the top 10% of IRS leaders to the bottom 10% yields a much more manageable list of what others perceive are the key much more manageable list of what others perceive are the key competencies that put “great” IRS leaders well above the restcompetencies that put “great” IRS leaders well above the rest
Finding:Finding: The list balances 2-4 key competencies in each IRS Core The list balances 2-4 key competencies in each IRS Core Management Responsibility (many support EEO and Diversity)Management Responsibility (many support EEO and Diversity)
10
Impact of Displaying Strengths in Key IRS CompetenciesImpact of Displaying Strengths in Key IRS Competencies IRS leaders who display profound strengths in key differentiating IRS leaders who display profound strengths in key differentiating
competencies (scores competencies (scores 3.95) achieve much higher levels of overall 3.95) achieve much higher levels of overall perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)
Finding:Finding: IRS leaders who build just 1 more profound strength in IRS leaders who build just 1 more profound strength in a key competency experience a 10-95% improvement in overall a key competency experience a 10-95% improvement in overall perceived leadership effectiveness (360perceived leadership effectiveness (360 assessed) assessed)
33
6572
8090
0102030405060708090
100
0 Strengths
1 Strength
2 Strengths
3 Strengths
4+ Strengths
Lea
ders
hip
Eff
ectiv
enes
s – 3
60 A
sses
sed
Number of Profound Strengths in IRS Key Competencies
11
Build Strengths in Key Differentiating CompetenciesBuild Strengths in Key Differentiating Competencies
33.13.23.33.43.53.63.73.83.9
4
Prof
icie
ncy
Scor
e - 3
60 A
sses
sed
AO AD BA CM CL CF DC DO DA EN EA GL I/N I/H PA PS PR SM ST TW TC
IRS Leadership Competencies (in alphabetical order)
Building existing strong competencies to very high levels (raising Building existing strong competencies to very high levels (raising circled strengths just 5%) could increase this executive’s overall circled strengths just 5%) could increase this executive’s overall perceived effectiveness to about the 80perceived effectiveness to about the 80thth percentile (+62%) and percentile (+62%) and employee engagement scores to about 72% (+60%)employee engagement scores to about 72% (+60%)
• Same IRS executive, different approach – build key strengths Same IRS executive, different approach – build key strengths
12
Impact of “Fatal Flaws” on Leadership EffectivenessImpact of “Fatal Flaws” on Leadership Effectiveness This IRS leader displays 2 key competency strengths (should score This IRS leader displays 2 key competency strengths (should score
at at 7272ndnd percentile), yet only scores at the 49 percentile), yet only scores at the 49thth percentile due to a percentile due to a pronounced weakness or “fatal flaw” (scores pronounced weakness or “fatal flaw” (scores 3.0 out of 4.0) 3.0 out of 4.0)
Finding:Finding: IRS leaders must fix “fatal flaws” to achieve marked IRS leaders must fix “fatal flaws” to achieve marked increase (increase ( 50%) in overall perceived leadership effectiveness 50%) in overall perceived leadership effectiveness
2.93
3.13.23.33.43.53.63.73.83.9
4
AO AD BA CM CL CF DC DO DA EN EA GL I/N I/H PA PS PR SM ST TW TC
IRS Leadership Competencies (in alphabetical order)
Prof
icie
ncy
Scor
e –
360
Ass
esse
d
13
““Fatal Flaws” for IRS LeadersFatal Flaws” for IRS Leaders
26 25
1816
14
0
5
10
15
20
25
30
Perc
ent o
f Lea
ders
Tech Cred Bus Acu Infl/Neg Dev Oth Comm
““Fatal flaws” typically include Technical Credibility, Business Fatal flaws” typically include Technical Credibility, Business Acumen, Influencing/Negotiating, Developing Others, and Acumen, Influencing/Negotiating, Developing Others, and Communication (5 of 11 key differentiating competencies)Communication (5 of 11 key differentiating competencies)
Effects of fixing “fatal flaws” on overall perceived leadership Effects of fixing “fatal flaws” on overall perceived leadership effectiveness not as dramatic as building profound strengthseffectiveness not as dramatic as building profound strengths
Finding: Finding: Leaders should build profound strengths unless they have Leaders should build profound strengths unless they have “fatal flaws”“fatal flaws”
Most Often Occurring Weaknesses in IRS Leadership Competencies
14
New Insight for Competency DevelopmentNew Insight for Competency Development Competencies are interdependent, so increasing proficiency in Competencies are interdependent, so increasing proficiency in
competency companions (i.e., those with high correlations) has competency companions (i.e., those with high correlations) has an additive effect on raising scores in the targeted competencyan additive effect on raising scores in the targeted competency
Finding:Finding: Strongest increases in proficiency scores on targeted Strongest increases in proficiency scores on targeted competencies achieved by developing competency companionscompetencies achieved by developing competency companions
Competency Competency CompanionCompanion
TargetedTargetedCompetencyCompetency
Competency Competency CompanionCompanion
StrongStrongStrategic Strategic ThinkingThinking
GreatGreatTechnicalTechnicalCredibilityCredibility
PoorPoorTechnicalTechnicalCredibilityCredibility
WeakWeakDevelopingDeveloping
OthersOthers
StrongStrongDevelopingDeveloping
OthersOthers
WeakWeakStrategicStrategicThinkingThinking
Prof
icie
ncy
Scor
es -
360
Prof
icie
ncy
Scor
es -
360
Ass
esse
d A
sses
sed
The Power of Perception
15
Competency Companions for Developing Key Competency Companions for Developing Key StrengthsStrengths
Targeted Key Targeted Key CompetenciesCompetencies Competency Companions*Competency Companions*
CommunicationCommunication AdaptabilityAdaptability Diversity AwarenessDiversity Awareness Group LeadershipGroup Leadership
Service MotivationService Motivation PartneringPartnering Technical CredibilityTechnical Credibility Strategic ThinkingStrategic Thinking
Strategic ThinkingStrategic Thinking Problem SolvingProblem Solving External AwarenessExternal Awareness Technical CredibilityTechnical Credibility
Developing OthersDeveloping Others Group LeadershipGroup Leadership Achievement Orient.Achievement Orient. Diversity AwarenessDiversity Awareness
Group LeadershipGroup Leadership Developing OthersDeveloping Others CommunicationCommunication DecisivenessDecisiveness
External AwarenessExternal Awareness Continual LearningContinual Learning Business AcumenBusiness Acumen Strategic ThinkingStrategic Thinking
Influence/NegotiateInfluence/Negotiate External AwarenessExternal Awareness PartneringPartnering Group LeadershipGroup Leadership
Business AcumenBusiness Acumen External AwarenessExternal Awareness Political SavvyPolitical Savvy Problem SolvingProblem Solving
Political SavvyPolitical Savvy PartneringPartnering Problem SolvingProblem Solving
Problem SolvingProblem Solving DecisivenessDecisiveness AdaptabilityAdaptability
Technical CredibilityTechnical Credibility Strategic ThinkingStrategic Thinking Service MotivationService Motivation Developing OthersDeveloping Others
List of statistically significant (List of statistically significant (pp > .001) competency companions > .001) competency companions to develop to dramatically increase the proficiency scores (360to develop to dramatically increase the proficiency scores (360 assessed) on targeted key competenciesassessed) on targeted key competencies
*Development of 5 in circles yields greatest influence on targeted competencies (each listed as 3 companions)
16
How to Build Strengths in Key CompetenciesHow to Build Strengths in Key Competencies
33.13.23.33.43.53.63.73.83.9
4
Prof
icie
ncy
Scor
e - 3
60 A
sses
sed
AO AD BA CM CL CF DC DO DA EN EA GL I/N I/H PA PS PR SM ST TW TC
Same IRS executive, new approach – develop competency companions Same IRS executive, new approach – develop competency companions
IRS Leadership Competencies (in alphabetical order)
Developing competency companions just 2% builds this executive’s Developing competency companions just 2% builds this executive’s targeted areas by 5% and indirectly improves several other targeted areas by 5% and indirectly improves several other competencies (creating a “halo” effect) to easily increase overall competencies (creating a “halo” effect) to easily increase overall perceived effectiveness to the 90perceived effectiveness to the 90thth percentile (+80%) and employee percentile (+80%) and employee engagement to about 80% (+78%)engagement to about 80% (+78%)
17
SummarySummaryGood does not equal great and we need more Good does not equal great and we need more
great leadersgreat leadersGreat leaders are not superheroesGreat leaders are not superheroesGreat leaders get the power of perception Great leaders get the power of perception
working for them, not againstworking for them, not againstBuilding strengths raises perceptions of overall Building strengths raises perceptions of overall
leadership effectiveness much more than sealing leadership effectiveness much more than sealing “performance perforations”“performance perforations”
One of the keys to building leadership strengths One of the keys to building leadership strengths is leveraging a leader’s passionsis leveraging a leader’s passions
When building strengths, sometimes the best When building strengths, sometimes the best way is to build around themway is to build around them
18
How to Operationalize FindingsHow to Operationalize Findings Arm instructors/coaches/counselors with Arm instructors/coaches/counselors with
information to easily interpret a leader’s 360° information to easily interpret a leader’s 360° assessment and design individually customized assessment and design individually customized developmental efforts to achieve huge developmental efforts to achieve huge behavioral improvements in key differentiating behavioral improvements in key differentiating competencies and balanced measure resultscompetencies and balanced measure results
Use information to design core foundational Use information to design core foundational leadership courses at each level to achieve huge leadership courses at each level to achieve huge behavioral improvements in key differentiating behavioral improvements in key differentiating competencies and balanced measures resultscompetencies and balanced measures results
Provide baseline for further statistical workProvide baseline for further statistical work– Measure actual results against predicted resultsMeasure actual results against predicted results– Ongoing look into 360° results against performance Ongoing look into 360° results against performance
evaluations, promotions, mobility, etc.evaluations, promotions, mobility, etc.
19
IRS Leadership Development FrameworkIRS Leadership Development Framework
Front-line Manager
Core Curriculum
Senior ManagerCore
Curriculum
ExecutiveCore
Curriculum
Front-line Leader Readiness
Senior Manager Readiness
Executive Readiness
Entry Mastery
Entry Mastery
Entry Mastery
20
IRS Leadership Competencies IRS Leadership Competencies Arrayed By Leadership LevelArrayed By Leadership Level
ExecutiveLeader
Senior Leader
Front LineLeader
Employee
• Entrepreneurship• External Awareness• Group Leadership • Political Savvy• Service Motivation• Strategic Thinking
• Achievement Orientation• Business Acumen• Continual Learning• Decisiveness• Developing Others• Influencing/Negotiating
• Adaptability• Communication• Partnering• Problem Solving• Teamwork• Technical Credibility
• Customer Focus• Diversity Awareness• Integrity/Honesty
21
Impact of Manager’s Response/Follow-Up Impact of Manager’s Response/Follow-Up on Overall Leadership Effectivenesson Overall Leadership Effectiveness
18 18 23
45
7486
0102030405060708090
Perc
ent I
mpr
ovem
ent
No/None
Yes/Non
e
Yes/Litt
le
Yes/Som
e
Yes/Freq
uent
Yes/Con
sisten
t
Amount of Response/Follow-up
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