ideas@work vol.2

VOLUME 2

BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT

WHITE PAPERS
FEATURED:

Charting a Course During
Uncertain Times

Focusing on Employee
Engagement: How to
Measure It and Improve It

Closing the Gaps in
Leadership Development

Developing Real Skills for
Virtual Teams

Rethinking Generation Gaps
in the Workplace: Focus on
Shared Values

How to Help Leaders Succeed:
A Guide to Successful
Executive Career Transitions

A message from the
President and Associate Dean of
Executive Development at
UNC Kenan-Flagler Business School

Hello once again from the University of North Carolina a purpose-driven enterprise, as detailed in their recent
at Chapel Hill. I am pleased to present our second edition Harvard Business Review article, “The Power of Collective
of ideas@work, a journal designed specifically for Ambition”. Another paper tackles measuring and improving
business leaders who are involved and interested in talent employee engagement, offering examples and best practices
development issues. from different organizations. A third paper examines the
advantages, characteristics and challenges associated with
We created ideas@work in order to share the executive the virtual team environment. Other topics in this edition
development knowledge and expertise that we’ve gained include tips for managing the multi-generational workforce,
from working with our client partners around the world, enabling successful career transitions and overcoming gaps
and to highlight best practices from other organizations. in your leadership development efforts.
We’ve received great feedback and encouragement about
ideas@work, as well as ideas and suggestions for future I hope that you enjoy the latest edition of ideas@work
white paper topics to explore. Some of these suggestions and that you find some useful, actionable ideas that you
are represented in the following pages, and you can expect can apply in your organization. I encourage you to visit our
to see others in our next edition... so please keep the ideas website – www.uncexec.com – for our entire library of talent
coming, and we promise to do the same. development white papers. You can also subscribe to receive
our white papers and executive development newsletters
This latest edition of ideas@work features six new white via email at unc_exec@unc.edu.
papers, including, ”Charting A Course During Uncertain
Times”, a paper that was written by UNC Kenan-Flagler Thank you once again for your interest in UNC Executive
Professor, Doug Ready, and Emily Truelove. This paper Development.
explains how organizations can harness the power of

Consistently ranked one of Our commitment to At UNC Executive
the world’s best business developing socially Development, we believe
schools, UNC’s Kenan- responsible, results-driven that managing employee
Flagler Business School leaders distinguishes our talent is vital to the success
is known for experiential programs. We educate of any organization, and we
learning and teamwork, people at every stage provide unique learning and
superior teaching, of their careers and development experiences
innovative research and a prepare them to manage for our partners.
collaborative culture. successfully in the global
business environment.

2 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit www.uncexec.com

Inside this issue

Charting a Course During Uncertain Times
page 4

Focusing on Employee Engagement: How to Measure It and Improve It
page 16

Closing the Gaps in Leadership Development
page 28

Developing Real Skills For Virtual Teams
page 38

CLASS OF
‘72 ’92
‘02 ’22

Rethinking Generation Gaps in the Workplace: Focus on Shared Values
page 48

How to Help Leaders Succeed: A Guide to Successful Executive Career Transitions
page 56

(Note: The information or conclusions expressed in the following white papers are the authors’ review of findings expressed by the
organizations. All brand representations are registered trademarks owned by the respective companies or organizations.)

3

Charting a Course During
Uncertain Times
Douglas A. Ready
Professor of the Practice of Leadership – UNC’s Kenan-Flagler Business School
Founder – International Consortium for Executive Development Research

Emily A. Truelove
Director of New Program Development –
International Consortium for Executive Development Research

This paper is adapted from a December 2011 Harvard Business Review article that
Doug Ready and Emily Truelove wrote, entitled “The Power of Collective Ambition”.

Introduction
A luxury hotel chain emerges from the industry’s We discovered that these organizations (and all truly
worst time in its history stronger than ever. A financial great organizations) share a common thread: a well-
institution thrives while its peers receive government honed collective ambition, a story that depicts their
bailouts, suffer debilitating reputational blows, or cease purpose, vision and plans on how to achieve their goals.
to exist. A beauty retailer on the brink of extinction a Companies with strong collective ambitions have a deep
decade ago is now highly profitable and opening an understanding of why they exist and what they hope to
average of two new stores a week. accomplish. They have developed a path forward that
involves working as a team to address their challenges.
In many ways, these global companies could not be They align their brand promise with their core values and
more dissimilar. They are in different industries and life- use them as guideposts to execute their strategy.
cycle stages, yet they share a common trait: they defy
the conventional logic that during a recession, morale Companies with strong, well defined collective ambitions
and profits plummet. have leaders who realize that a business is more than a
group of people chasing a financial target. These leaders
We’ve spent the past two years studying these are also highly disciplined when it comes to achieving
organizations and dozens of others to understand what and sustaining top performance. They collaborate with
makes them different. What allows them to flourish others in their organizations to shape their collective
in times when most organizations flounder? How did ambition and to energize their employees. Finally, they
they use a crisis as an opportunity to transform their embrace the challenge of managing a powerful duality:
business models, to redirect their strategies and to build that of balancing collaborative engagement (what we
momentum during a downturn? refer to as the glue) with commitment to disciplined
execution and accountability for results (what we call
the grease).


C H A R T I N G A C O U R S E D U R I N G U N C E R TA I N T I M E S

As the companies examined in these pages will
demonstrate, developing and executing an organization’s
The Seven Elements of a
collective ambition requires involvement at all levels. HR Collective Ambition
and talent management professionals play a powerful
role every step of the way, from helping to shape the Scholars have studied what makes for engaged and
collective ambition to executing it. An organization’s sustainably profitable organizations for decades. Collins
collective ambition can only be successful if there are and Porras wrote eloquently about the importance of
the right people, in the right places and with the right linking strategy with vision. Schein championed the
knowledge, skills and abilities. Simply put, it takes importance of culture and values to an organization’s
people to make the glue and to facilitate the grease. success. Many others have written about brands,
strategic intent and leader behaviors. Hence, the
concept of collective ambition—which touches on all of
Promise these elements of organizational success—is not new.
Instead, it provides a framework
This white paper:
that will help pave the way for
• Discusses the seven elements of collective ambition
successful, organization-
and why they matter. wide change
initiatives.
• Explains why one of these elements may matter

more than the others.

• Shows how top organizations collaborate

to bring these elements together, enabling
employees at all levels (and senior leaders
in particular) to work together to provide
the glue and the grease to get them
where they want to go.

• Profiles several companies who have

done an outstanding job of
integrating these pieces into
a powerful whole.

• Outlines the HR practices

required at every level
to ensure success.

5

There are seven elements that comprise an organization’s collective ambition:

1. Purpose:
The organization’s reason for being; why it exists; its core mission.

2. Vision:
The position or status an organization aspires to achieve in a reasonable time frame.

3. argets and milestones:
T
The metrics used to assess the extent to which the organization has progressed toward
its vision.

4. trategic and operational priorities:
S
The actions an organization will take (and not take) in pursuit of its vision.

5. Brand promise:
The commitments an organization makes to its stakeholders (customers, communities,
investors, employees, regulators and partners) concerning the experience it will provide.

6. Core values:
The guiding principles that dictate what an organization stands for in good and
bad times.

7. Leader behaviors:
How leaders will act, day-by-day and in the long term, to implement vision and
strategy as they strive to fulfill their brand promise and live up to their values.

HR and talent management professionals (indeed, many story of their organization’s future, combine it with a
business leaders) often tend to get excited about these collaborative process to build the human capabilities
elements without taking the time to place them in a required to achieve that future, and have the discipline
broader context, causing them to behave more like to follow that course in what is often choppy and
initiative champions than integrative thinkers. It is not perilous waters.
uncommon to see business leaders who try to drive
change based on a vision that isn’t fully anchored in It is important to be clear about what these terms mean,
reality or who attempt to enlist their entire workforce and how they can be used to reinforce one another
in a values project without carefully investigating how and execute an organization’s collective ambition.
these values interact with the organization’s brand The terms vision and strategy, or values and leader
promise or strategic priorities. behaviors are often used interchangeably, which leads
to confusion and causes them to become little more
Leaders attempting to drive change must take the than meaningless jargon. These terms are not jargon,
time to examine the elements that should--indeed however. If understood correctly, they can be used to
must--interact with one another if the changes are to identify organizational capability gaps and to launch
have any chance to succeed. They must understand initiatives that address those gaps.
the importance of shaping a powerful, compelling



The Collective Ambition Compass
After years of working with organizations across the an organization’s collective ambition and when they are
globe, we believe there are seven elements that really focused, provide a compass that leads to success. We call
matter for organizational success. These elements define it the collective ambition compass (CAC):

7

For any organization trying to harness its collective
ambition, HR’s role is clear. HR and talent management
The Glue and the Grease
professionals are involved by: Shaping an organization’s collective ambition isn’t

•
Working strategically with other senior leaders to just about telling a compelling story that inspires

frame the story that will become the organization’s employees. The process itself--of working together

collective ambition. to create the story--can be a powerful engagement
builder and as such, is an opportunity to build or
•
Working with other senior leaders to build employee strengthen an organization’s glue. It can also be a
engagement across organizational boundaries for springboard to launch organization-wide change
the initiative. initiatives and to execute strategy—the grease.

•
Communicating to ensure the organization’s
message is aligned with its purpose, vision and To highlight the glue and the grease, two companies—

strategy. Four Seasons Hospitality Group and Standard Chartered
Bank—are examined. These companies differ in
•
Participating in the development of metrics to many respects yet are strikingly similar in their use
measure achievement. of collaboration to realize their companies’ collective

•
Ensuring that new and existing employees at all ambitions. Standard Chartered Bank’s glue was its

levels have the knowledge, skills and abilities, and recommitment to its founding principles which helped

cultural fit to achieve the new business model. This it through a difficult period in its industry. Four Seasons’

involves not only talent sourcing and development, grease was the use of its collective ambition to enable

but also leadership development and succession transformational change.

planning.

•
Ensuring that the organization’s compensation
and benefits systems are in keeping with
tomorrow’s business model.

•
Developing a culture that fosters collaboration
and innovation.

Example: Standard Chartered Bank – Building the Glue

While many of their competitors went bankrupt, received government
bailouts or suffered irreparable harm to their brands during the recent
recession, Standard Chartered Bank (SCB) emerged stronger than ever.
There are several reasons for its success, but one of the most important
factors was that SCB used the crisis as an opportunity to recommit to the long-held
principles that made it great in the first place, strengthening the glue and binding together
its diverse and dispersed stakeholders during the recession.



SCB has more than 85,000 employees comprised of 129
nationalities who work in 71 markets. Going into the recession,
the bank had a strong foundation, a compelling vision (“to be
the world’s best international bank, leading the way in Asia,
Africa and the Middle East”), and a robust, well-aligned collective
ambition. Despite this, most of the world—including many key
stakeholders—couldn’t articulate what made SCB unique among
financial institutions. It had always had “the glue,” but it needed
to strengthen it. SCB leaders believed the recession was the
perfect time to do this.

In 2009, Peter Sands, SCB’s CEO, created a taskforce of
senior leaders (including their chief human resource officer) that
traveled the world to speak with thousands of SCB stakeholders—
customers, employees, regulators, shareholders and the larger communities in which SCB
operates—to get their take on the organization’s vision and collective ambition. They heard a
similar theme among their diverse and geographically disbursed stakeholders; that SCB was
a positive force, an ethical partner, and a company in it for the long haul. As a result, “here
for good” became SCB’s new multi-layered brand tagline.

SCB didn’t just want a tagline with a nice ring—it wanted a promise. Senior leaders realized
that if they were to differentiate themselves from their competitors, they must deliver “here
for good” to every stakeholder in every part of the world. To ensure that the promise was
kept, they created a global accountability process.

The first step to deliver the promise was to engage all of their employees because they
would be the ones to deliver it on a daily basis. SCB held town hall meetings at all their
locations, a centerpiece of which was a two-minute “here for good” strategy video about
SCB’s positive impact on the world. The video inspired employees, who universally felt that
“here for good” perfectly captured the values already present in the company. “Here for
good” did not create the glue; it strengthened what was already there.

As one senior leader explained:
“’ ere for good’ really does reflect who we are. Our local connections are very deep, in
H
part because we our long-term efforts to develop local talent and because we’ve been
in our markets so much longer than other multi-nationals. It is not uncommon for me
to meet customers who tell me how we gave their grandfathers loans 50 years ago and
have stood by their family businesses in good and bad times. They wouldn’t go to
another bank. When the Asian financial crisis hit, many banks pulled out of the region.
But we stayed and learned the lessons the West is learning now. Integrity matters. We
are not separated from our communities. We are an integral part of them.”

9

“Here for good.”
SCB wanted to make sure that “here for good” was a promise not just to employees, but for
other its stakeholders (customers, clients, regulators, shareholders and the communities in
which they operate):

• ustomers: SCB promises that it will treat its customers as partners and offer them fair
C
deals. Whether lending to cocoa farmers in Ghana (SCB helps more than 70,000 farmers
in the cocoa industry in that country) or the big pharmaceutical companies in Europe,
SCB’s helps its customers build their businesses for the long term. SCB makes these
commitments loud and clear, for all to see in white papers published online.

• egulators: SCB does not undermine regulations or cut regulatory corners to make
R
a quick profit. SCB considers regulators partners in building thriving, healthy business
environments. In the UAE, for example, many international banks fail to meet the
country’s Emiritization quotas and instead choose to pay fines for not employing UAE
citizens. In contrast, SCB views these quotas as a key part in developing the local talent
the country needs for businesses to succeed. In Nigeria, because SCB’s policies adhere to
the highest ethical standards, the bank has found itself educating Nigerian regulators on
best practices. For SCB, these practices as nothing exceptional. Instead, they are a way to
conduct its business of building the human and economic capital of a region and paving
the way for a brighter future.

• hareholders: SCB promises to provide its shareholders with ethical and healthy returns
S
and to that end, has incorporated “here for good” into its core business processes. For
example, when SCB bankers complete loan applications for customers, they must write
a paragraph about why that the customer will be a valued long-term customer, or “here
for good”.

• Community: SCB’s community initiatives are a well-entrenched feature of the company’s
brand and culture. SCB is part of the fabric of the communities in which it operates, be
it building health centers for the blind in India or having employee “HIV champions”
regularly delivering HIV awareness workshops in 50 countries. SCB grants employees three
days a year of paid time off to volunteer and does not dictate how or where that volunteer
time is spent (a bank manager in London spends time at a stable for rescued horses). SCB
has found that community involvement is a powerful retention tool. As one manager
observed, “When you have helped build a community center with your SCB colleagues
and you walk by and see the lines outside, that’s energizing. It’s these intangibles that
make people stay.” In short, it’s the glue.

Many companies must plan and execute large-scale changes to shape and execute their
collective ambition. For SCB, the challenge was to remember and bolster—not abandon—
their roots.



Example: Four Seasons – Building the Grease
I
t may be easy to see how collaboration can
be used to tell a compelling story of your
company’s future and be the glue that binds.
But how can this story provide the grease to
enable and drive productive change?

Travelers worldwide brighten at the mention of Four Seasons,
the hospitality group that literally set the standard for
exceptional service in luxurious settings. Founded in 1961 by the
iconic Isadore Sharp, the Four Seasons’ reputation is the envy of its
peers. The last few years, though, have been particularly tough for
the industry as a whole and the company in particular.
The recession wreaked havoc on the hospitality industry, especially at the high-end market,
Four Seasons’ primary focus. As vacationers cancelled trips and business travelers opted for
less expensive hotels, bookings plummet. At the same time, Sharp was ready to retire and
enjoy the next phase of his life. In 2010, Katie Taylor, Four Seasons’ chief operating officer,
took the CEO helm in the midst of the worst recession in 80 years.

In 2008, the Four Seasons found itself at a turning point. In preparation for her new role,
Taylor had an important task; to engage 35,000 employees in more than 80 hotels in 35
countries in a collaborative process that would get Four Seasons back on track and poised
to lead the industry once again.

For decades, the company’s unique service, culture, quality and brand (called “the pillars”)
had led to success. The question in 2008 was how to ensure they would continue to do so
in an ever-changing competitive landscape. The company had in place three key measures
for success—people, product, profits (called “the bold ambitions”). While the bold ambitions
had been the same throughout the company’s history, Taylor knew they had to be captured
anew and related to the change process in a way that was clear and compelling.

To that end, Taylor and her team overlaid the seven elements of Four Seasons’ collective
ambition onto such a graphic compass. As Taylor noted after completing the work. “We
found that compass was very useful tool because it helped us do two things. First, it allowed
us to think about the company and its success drivers in a different framework than we had
before. Second, it allowed us to organize all of these thoughts in a way that gave them an
actionable direction that was entirely consistent with our purpose and values, but with a
new point of view.”

Today, the company uses the compass as their framework for action.

11

An actionable path forward was precisely what Four Seasons needed. It needed the
grease—a springboard to launch an enterprise-wide change initiative.

Taylor then formed a team of five vice presidents (including HR) from different parts of the
business. Over a six-month period they held more than 45 site visits in 14 countries and
conducted more than 400 interviews with Four Seasons guests, employees and stakeholders.
The team used their “bold ambitions” —product, people, and profit—to organize their
findings, which helped highlight how they were interrelated. They realized that to have the
best product (luxury hotels), the Four Seasons needed to attract and develop the best people
and create a culture that retained them. They knew that when they met their “people”
goals, their hotels would thrive and the profits would follow.

Taylor and the executive team also decided that each bold ambition would have five work
initiatives cascading from it. Working in small teams, senior leaders led the initiatives. Each
team’s focus was to make that piece of the puzzle align with Four Seasons’ purpose.

For example, in the “people” category, one team led an initiative called “who gets to be a
leader around here?” The goal was to transition Four Seasons from an informal promotion
system to a robust, systematic program that would promote people based on their potential
and performance. This was particularly important to Four Seasons because service is their
competitive advantage and it is vital to have the right people in the right roles and to ensure
that they are developed, rewarded and retained.

An important outcome of the initiatives is that they have made strategic and operational
priorities real, not just theory. As Four Seasons prepares for its next 50 years Taylor is
confident of its success:

“ e have 34,000 employees who get up every morning thinking about how to serve our
W
guests even better than the day before. Our promise to provide the most exceptional
guest experience wherever and whenever you visit us is instilled in the hearts and minds
of our dedicated employees. They are the ones who fulfill that promise day in and day
out, in good times and in bad. Our guests are a central focus of this company, and our
commitment to our employees to get them the tools they need to get that job done will
remain a focus as well. The combination of strong global leaders and dedicated and
caring employees is going to be the recipe for our success going forward.”



The Four Seasons’ Collective Ambition Compass

Copyright © 2010 Doug Ready. All rights reserved.

Copyright © 2010 Doug Ready. All rights reserved.

13

Putting the Compass Together
At the heart of the collective ambition compass or any example, to provide excellent entertainment or banking
figure used to create an organization’s story is purpose. services–is just as meaningful as improving healthcare in
Purpose is the center around which vision, strategy, emerging economies. It does not have to be about saving
brand, values and leader behaviors should be mapped. the world. It just has to be an authentic representation
of why your organization exists. A purpose statement is
While many organizations want their purpose statements the starting point to differentiate your organization and
to address a noble goal, simply having a purpose–for to engage your stakeholders.

Example: Sephora – Constructing the Compass
Founded in France in 1969 by Dominique Mandonnaud, Sephora is one of the world’s leading
beauty retailers. Mandonnaud believed that shopping for cosmetics should be fun, and he
designed Sephora stores to be entertaining places where customers could test products
before purchase. The concept took off, and so did competitors’ adeptness in copying it. To try
to differentiate itself from its competitors, Sephora increased the number of brands it carried,
but it soon learned that carrying a wider range of cosmetic, fragrance and skin care brands
in addition to its own private label was not enough to stay ahead of the pack. It needed
something hard to copy.

Sephora is now part of LVMH, the world’s leading luxury products group. LVMH considered
selling Sephora in 2003 because of its troubles, but instead brought in a new CEO, Jacques
Levy, to turn the company around. Levy believed that saving Sephora was about creating a
sustainable competitive advantage.

As it turned out, the process of creating a sustainable competitive advantage became an
exercise in reinvigorating Sephora’s core purpose. After studying customer preferences, Levy
and his senior team realized that Sephora’s competitive advantage wasn’t in the store layout
or brands it carried. It was in something closer to what Mandonnaud sought to create: a truly
unique shopping experience. Thus emerged Sephora’s newly articulated purpose which was
a nod to the past and an acknowledgement of what sustaining success would mean in the
future: “To provide customers with the most entertaining shopping experience of the retail
industry—giving them a moment of relaxation and discovery, enabling them to experiment
and play with their beauty.”

With this purpose, Sephora spent the next few years shaping and implementing its collective
ambition. As a Sephora board member commented, “The market is moving so fast, but we’re
on the crest of the wave. And we’re there because of the energy that Levy gives us. It speaks
to the power of purpose. If you are a company that only wants to achieve targets, then you
reach those targets and stop. But if you have a purpose like ours, you’re always working to
satisfy it more fully. You’re always on the move.” Today, Sephora has 17,000 employees in
1,600 shops spread across 22 countries—and it is opening roughly two stores each week.



Purpose may be the spring from which the other elements flow, but it is not the only thing
that matters in shaping and implementing an organization’s collective ambition. All seven
elements must be integrated into the powerful story that is your organization’s collective
ambition.

Sephora, for example, determined that if an entertaining shopping experience was its
purpose, then its strategy should be to deliver exceptional service. But not conventional
great service—service aligned with its core values of freedom, emotional connection,
excellence and boldness.

Purpose, strategy and values play a role in everything Sephora does. Consider training
at Sephora University. When employees learn about how to deliver exceptional service,
they are encouraged to use their own means to get to the desired ends. For example, in
a booklet that explains Sephora’s management style to employees, each principle is listed
with examples of how other employees have successfully achieved each principle and
then there is a space where trainees can list how they will do it.

Conclusion
The companies showcased in this article continue to Finally, they used the process itself as a springboard to
succeed despite the economic environment because initiate change and execute strategy.
they have harnessed the power of collective ambition
to chart a course during these uncertain times. The Harnessing the power of collective ambition isn’t easy,
successes experienced at companies like SCB, Four but then again, the path to excellence is never easy.
Seasons and Sephora could not happen without a There is no GPS button that will take an organization
clearly defined purpose and genuine commitment at effortlessly to the Promised Land, or an external guru
the senior executive level. As demonstrated throughout who can show the way in an hour’s speech. The good
this paper, an organization’s purpose is the center of news is that it can be done if the organization pulls
its collective ambition. Purpose matters for business together to work for it. This requires the commitment
enterprises. Purpose drives and informs employee of HR and talent management professionals to ensure
engagement, leadership development initiatives and that the organization has the right people with the
branding. It breeds trust, speeds decision-making and right skills and cultural fit to execute an organization’s
is the heard of compelling change initiatives. These collective ambition. HR leaders must also work to
companies embraced collaboration to shape their prepare employees at all levels so that they are ready for
collective ambition and to energize their employees. the changes to come.

15

Focusing on Employee
Engagement:
How to Measure It and
Improve It
Pat Cataldo
Managing Director
UNC Executive Development

Introduction
For the past few years now, workers lucky enough to
have a job hunkered down to ride out the economic
storm. They did more with less and often had to
87 % f C-Suite executives
o
recognize that disengaged
employees is one of the biggest
accept salary freezes, time off without pay, or cutbacks threats to their business.
in hours in exchange for continued employment. Source: Re-engaging With Engagement, The Economist, 2011.
Uncertain about how long the recession would last
and not willing to be a victim of “last one in, first one
out,” they also stopped looking for that next great job
at a competitor down the street. As a result, employee
retention rates soared and not surprisingly, employee
Promise
engagement suffered. This white paper:

• Outlines the characteristics of engaged employees
According to a 2010 Hewitt survey of companies from
around the world, half of the organizations responding • dentifies the traits that engaged, disengaged and
I
said they had experienced significant drops in employee actively disengaged employees demonstrate
engagement, the largest decline Hewitt has seen in • xplores the costs of poor employee engagement to
E
more than 15 years of researching the metric. organizations
• Provides suggestions to human resource and talent

Filmmaker, comedian and well-known neurotic Woody
management professionals on how to gauge
Allen once said: “Eighty percent of success is showing
employee engagement in their organizations
up.” This may have been true thirty years ago, but
today, it no longer applies. In our internationally • ffers employee engagement trends and steps to
O
competitive business environment, employers need improve employee engagement that HR and talent
dedicated employees fully committed to the success management professionals can take
of their organizations.


EMPLOYEE ENGAGEMENT: MEASURE AND IMPROVE IT

Characteristics of Engaged Employees
Researchers for the Institute for Employment Studies Engaged workers:
(IES) recently asked about the characteristics common to • Believe in their organization
engaged employees as they embarked on the study,
The Drivers of Employee Engagement. They found that • Desire to work to make things better
there was general agreement among HR professionals • nderstand the business context and the “bigger
U
about engaged workers. picture”
A key finding of the IES study was that engagement was • Are respectful and helpful to colleagues
a two-way street. For employee engagement to succeed,
• Are willing to go “the extra mile”
organizations must work to engage employees; in turn,
employees have a choice about the level of engagement • eep up to date with developments in their field
K
they offer employers.

17

Example: Fortune and Employer Engagement

Fortune publishes an annual ranking of the Top 100 Best Companies to Work
For, and while being on this list does not guarantee employee engagement,
it’s a very good indicator of worker satisfaction. Employee engagement can
be described as a sense of personal investment where employees want to do whatever they
can for the success of the organization. The companies on the Best Companies to Work
For list have demonstrated that they are equally invested in their employees, and they do
what they can to help their employees succeed. These companies have found that employer
engagement can have a positive impact on employee engagement, and when both the
employer and employee are engaged, the organization benefits.

Fortune partners with the Great Place to Work Institute to identify the Top 100 Best
Companies to Work For. Two-thirds of a company’s score is based on the results of the
Institute’s Trust Index survey, which asks questions related to their attitudes about the
management’s credibility, job satisfaction, and camaraderie. The remaining third of the score
is based on the company’s responses to the Institute’s Culture Audit, which includes detailed
questions about pay and benefit programs and a series of open-ended questions about
hiring, communication, and diversity.

Software firm SAS has ranked at the top of Fortune’s list in 2010 and 2011, and has made
the list for the past 14 years. SAS believes that focusing on people and relationships leads
to more productive, satisfied and dedicated employees. Their focus on building these
relationships has driven them to offer their employees a wide range of perks and benefits
at their headquarters in North Carolina, including on-site healthcare, childcare, car cleaning,
a beauty salon, and a state-of-the-art, 66,000-square-foot gymnasium.

Fortune’s 2011 Best Companies to Work For® - The Top 10
1. SAS 6. Zappos.com
2. Boston Consulting Group 7. Camden Property Trust
3. Wegmans Food Markets 8. Nugget Market
4. Google 9. REI
5. NetApp 10. Dreamworks

Source: 100 Best Companies To Work For, CNN Money, 2011.

Engagement Levels:
The Engaged, Disengaged and Actively Disengaged
If your CEO asked you today what percentage of your If your workforce is typical, about one-third of your
workforce was actively engaged, would you be able to employees are actively engaged, according to a recent
give a fair ballpark figure? Gallup poll. The poll found that nearly half, or 49 percent,
are disengaged while 18 percent are actively disengaged.



A study by consulting firm Towers-Watson revealed an As the economy recovers, employees at all levels will
even bleaker situation. Their research concluded that emerge from where they were and may begin to look for
only about 15 percent of employees were fully (actively) new opportunities. The biggest concern will be the
engaged; 65-70 percent of employees were moderately potential loss of an organization’s most valued talent, so
engaged, while 15 percent were totally disengaged. if improving employee engagement has not been on your
organization’s radar screen, it should be.

Actively Engaged Workers .....................................................................................................................................................
The Gallup organization provides a detailed profile of
• motional commitment to what they do
E
an engaged worker based on its G12 employee
engagement survey. Engaged workers demonstrate: • High energy enthusiasm

• onsistently high levels of performance
C • Commitment to their organization, work group and job

• atural innovation and a drive for efficiency
N
Engaged workers are the ones you look forward to
• ntentional building of supportive efficiency
I seeing on Monday morning because their enthusiasm is
catching. They have likely been identified as high-potential
• lear understanding about the desired outcomes
C
employees and feature prominently in their organization’s
for their roles
succession planning process.

Disengaged Workers ...................................................................................................................................................................
Disengaged workers, on the other hand, view their jobs Disengaged workers may have been actively engaged
as an exchange of time for a paycheck. They arrive and workers at one time. Somewhere along the way, though,
leave on time, take their breaks, never volunteer for extra they became disengaged because of a lack of career
work or projects, and do little else in between beyond the growth or promotion, a perception of salary inequity,
minimal effort. They show little passion or creativity for job dislike, or distrust in their direct manager and senior
their jobs and go through the motions. management.

Actively Disengaged Workers .............................................................................................................................................
Actively disengaged workers are the most damaging negative attitudes have a disproportionate effect on the
employees in the workplace. They are unhappy and let performance of their co-workers and overall operational
that unhappiness show in words, attitudes and actions. performance.
They undermine the performance of others by constantly
voicing their displeasure and listing the many reasons why While it is not impossible to re-engage actively disengaged
they are so miserable in their jobs. Kelly Services notes workers, it is much more challenging. Letting employees
that while these actively disengaged workers make up know that senior leaders are aware of employee
only 15-18 percent of the employee population, their engagement levels and are committed to taking positive
action to address it is a key step.

19

Measuring Employee Engagement

One reliable instrument to measure employee engagement is Gallup’s G12 feedback
system. Gallup has identified the factors that determine whether people are actively
engaged, disengaged, or actively disengaged. Their research (which consistently shows
a correlation between high survey scores and superior job performance) yielded a series
of 12 questions known as Gallup’s Q12.

The 12 questions are (rated on a scale from 1 to 5):
1. Do I know what is expected of me at work?
2. Do I have the materials and equipment that I need in order to do my work right?
3. At work, do I have the opportunity to do what I do best every day?
4. In the last seven days, have I received recognition or praise for doing good work?
5. Does my supervisor, or someone at work, seem to care about me as a person?
6. Is there someone at work who encourages my development?
7. At work, do my opinions seem to count?
8. Does the mission or purpose of my company make me feel that my job is important?
9. Are my coworkers committed to doing quality work?
10. Do I have a best friend at work?
11. In the past six months, has someone at work talked to me about my progress?
12. This past year, have I had opportunities at work to learn and grow?

Source: Gallup, n.d.

The Cost of Low Employee Engagement
L
ow employee engagement has ramifications far Other researchers have determined that the value
beyond immediate co-workers. According to the added by good (not even outstanding) performers
Gallup organization, the cost for keeping actively versus average performers was one-half of their
disengaged workers over a five-year period was gross salary. In an article in the Headwinds Journal,
approximately $300 billion in lost productivity and Joel Head points out that poor performers will cost
employee performance. an organization about one-half of their gross salary;
the difference between a poor performer and a
Research indicates that studies exist which show good performer, then, is equal to one employee’s
that low employee engagement not only affects annual salary.
performance, it increases employee turnover,
lowers customer service satisfaction and increases
absenteeism.



Potential Increase in Overall Engagement?

Intent to stay has steadily increased another 2.3 percent across the first quarter of 2011.
More importantly, discretionary effort took an upswing from its decline and increased by
over 8 percent.

The combination of employees exhibiting an increase in both discretionary effort and
intent to stay reflects a potential increase in overall employee engagement.

Quarterly Data of Intent to Stay vs. Discretionary Effort

Intent to Stay
Discretionary Effort

Percentage of
Employees

70%

60%

50%

40%

30%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
‘09 ‘09 ‘09 ‘09 ‘10 ‘10 ‘10 ‘10 ‘11

Source: The Corporate Executive Board, Employee Engagement Trends Report: Q1 2011.

21

Get the Pulse on Employee Engagement Levels
How can HR and talent management professionals assess the level of employee engagement in
their organizations? Just ask.

smaller workplaces, one-on-one meetings with employees may be the easiest, most effective
For
method to assess employee engagement. For medium and larger workplaces, one-on-one
meetings may be supplemented with town hall meetings, focus groups and surveys. In all cases,
it is important that employees are asked the same questions. This allows for better analysis of the
feedback, which leads to better, more targeted action steps.

Quantum Workplace, a leader in building science-based tools to measure and manage employee
engagement, loyalty and retention, has developed survey questions to assess employee
engagement.

This survey asks employees to rank on a scale of 1 to 10 their responses to these statements:
1. Management provides good leadership and guidance during difficult economic conditions.
2. My job is mentally stimulating.
3. I understand how my work contributes to my company’s performance.
4. There are future opportunities for growth at my company.
5. My company affords me the opportunity to develop my skills.
6. I receive recognition and reward for my contributions.
7. There is open, honest communication between employees and managers.
8. I see professional growth and career opportunities for myself in this organization.
9. I know how I fit into the organization’s future plans.
10. onsidering the value I bring to the organization, I am paid fairly.
C

Gathering feedback should not end here. There is a strong do discretionary work above and beyond their
link between leadership and employee engagement. As normal assignments? Do they understand how these
such, HR and talent management professionals should activities align with the organization’s goals? If not,
attempt to gauge the engagement levels of CEOs and are managers and employees given an opportunity to
senior leaders. question the value of doing this discretionary work?

Becky Shambaugh, president and CEO of Shambaugh • Are you and senior leaders creating a corporate culture

Leadership, offers the following questions for CEOs and built on shared values, trust and empowerment, valuing
senior leaders regarding employee engagement: diversity and team work? Or has the climate become
restrictive, un-collaborative and mistrusting? Are people
• ow are you and the other C-Suite execs “showing
H being perceived as commodities rather than assets?
up”? How visible are you and your senior leaders to
your employees? • re you taking a multi-cultural view of inclusiveness
A
and diversity where people feel valued for what they
• oes it seem like your employees are tuning lately
D bring to your company rather than feeling like they
to radio station “WIIFM”… What’s In It for Me? Do have to conform and fit into an uncomfortable mold?
employees understand why they are being asked to



• re you giving employees examples where individuals
A
and teams have gone above and beyond the call of
duty to overcome a challenging business problem or
exceed a client’s expectations? Story telling is a critical
way for a manager to help employees relate to what
needs to be accomplished with real live examples.

• re your managers helping employees sort through
A
tasks and priorities so the urgent doesn’t overwhelm
what’s important?

• astly, are you and your management team
L
proactively asking employees how to make things
better, improve customer relations and leverage
innovative ideas for competitive advantage?

Shambaugh suggests—and research confirms—
that if the answer to any of these questions is no,
then employee engagement is suffering. Employee
engagement starts at the top.

Four Steps for Improving Employee Engagement
There is nothing more damaging to employee morale • nvolvement in decision making
I
than asking employees for their thoughts and opinions
on an issue and then failing to take any action based • The extent to which employees feel able to voice

on their input. It is vital that employees understand that their ideas, and managers listen to those views and
steps are being taken to improve employee engagement value employees’ contributions
as a result of their responses.
• he opportunities employees have to develop
T
their jobs
Step 1: Know What Drives Employee
Engagement • he extent to which the organization is concerned
T
for employees’ health and well-being
Now that you have a pulse on your employees’
commitment to the organization, action is required. In all cases, two-way communication and management
Knowing what drives employee engagement will help play vital roles in keeping employees engaged.
you plan those action steps. IES identified several
components of what drives employee engagement:

23

Step 2: Get Senior Leader Buy-In
As the IES study revealed, senior leader buy-in “ ith high levels of engagement,
W
is critical for employee engagement initiatives to firms can see revenue growth 2.5
succeed. Good leaders create a culture of engage-
times that of their peers and a
ment, keep employee trust, and help increase
productivity, employee satisfaction and retention. 40 percent reduction in expensive
staff turnover.”
If senior leaders do not understand the importance
Source: Giving Everyone the Chance to Shine, HayGroup, 2010

of employee engagement, now is the time for HR
and talent management professionals to educate
them. Show them the direct correlation between
employee engagement and the organization’s Step 4: Act on the Results
bottom line. Share with them the results of the
Each organization will differ in what they need to do
employee survey (or of the one-on-one meetings,
to improve employee engagement. In some cases, for
focus groups or town hall meetings) and the steps
example, feedback may reveal that employees don’t
needed to improve engagement.
understand the organization’s mission and vision. If this
is the case, a series of meetings or brown-bag lunches
Consider using customer satisfaction surveys to
can be arranged where the organization’s mission, vision
corroborate the results of the employee survey.
and strategic plan are discussed and a link made to each
Monica Nolan of PeopleMetrics notes that several
employee’s role in the organization and how their work
studies have shown a positive correlation between
contributes to the organization’s success. The important
customer satisfaction surveys and employee
point is that the action steps should be tailored to the
engagement. If customer satisfaction is high, it is
needs identified through employee feedback.
likely that employee engagement is too. Conversely,
if customer satisfaction is low, so is employee
Action steps to improve employee engagement do
engagement. In either case, comparing the results
not need to be costly or time-consuming. A McKinsey
of customer satisfaction surveys with employee
Quarterly survey revealed three effective non-cash
engagement levels can make a stronger business
awards that improve employee engagement that can
case to senior leaders of the need for their support.
work for small and large organizations:

Step 3: Communicate with Employees • Praise from immediate supervisors
• ttention from leaders (e.g., one-on-one meetings or
A
One of the hallmarks of organizations with strong
attention from the top)
employee engagement is communication. Let
employees know the steps you have taken to assess • Opportunity to lead projects or task forces

employee engagement, the outcome of those steps, Kevin Sheridan, chief executive officer and chief
and the plans moving forward to improve employee consultant for HR Solutions believes organizations will
engagement. Communication can take the form of increasingly use actively engaged employees as mentors
town hall meetings, articles in employee newsletters to help motivate and re-energize disengaged workers.
and on employee intranets or e-mail. Always use the Other engagement trends predicted by Sheridan include
communication methods you have found to be most the use of social media to engage employees. For
effective in your workplace. example, using internal social networks to acknowledge
employees for jobs well done or to promote new
organizational and CSR (corporate social responsibility)
initiatives can be effective uses of social media.



Example: Southwest Airlines and Employee Empowerment
Employee engagement can lead to better customer service. Southwest
Airlines is renowned for its outstanding customer service, the keys to which
are its recruitment and employee empowerment philosophies. According
to Kevin Freiberg in the book Nuts! Southwest Airlines’ Crazy Recipe
for Business and Personal Success, “Southwest looks for people with other-oriented,
outgoing personalities, individuals who become part of an extended family of people who
work hard and have fun at the same time.”

To empower their employees, according to Freiberg, Southwest dispensed with rigid work
rules and job descriptions so their employees could assume ownership to get the job done
and get their planes out on time, regardless of whose “official” responsibility it is. The
airline also gives employees the flexibility to “bend” company policy if they think it would
be in the best interest of its customer.

This flexibility allows Southwest employees the ability to go above and beyond to deliver
exceptional customer service—a challenge in any industry. “It can be tough and put you
into a bad mood real quick when you deal with a nasty and abusive person,” notes Libby
Sartain in a recent article for SHRM Online. Sartain is an HR management consultant and
former chief HR officer for Southwest Airlines and Yahoo. “It’s a matter of training and
empowering employees to do the right thing,” she said. “If you trust that employees will
do the right thing and handle situations as best they can, then that’s what will happen.”

Southwest tightly links the way it empowers its people and manages its operations on
the inside, and the way it positions itself to the customer and the marketplace on the
outside. Sridhar Balasubramanian, Professor and Associate Dean of UNC Kenan-Flagler’s
MBA program, notes that this linkage has helped the company to be true to its values,
and to execute on its customer promise flawlessly. “Southwest is a fun brand that
delivers focused value,” he said, “and the flight attendants and pilots who crack jokes
and entertain the passenger are not just putting on a show. They have been hired at
Southwest because that sense of humor comes naturally to them.”

25

Conclusion
As the economy continues to improve, organizations Organizations in which people feel
with active employee engagement programs in place
will prosper. The time is now for HR and talent both motivated and “enabled”can
management professionals to do more about helping achieve revenue growth 4.5 times
everyone achieve their maximum level of potential
and satisfaction. Assessing and improving employee
that of peers.
engagement to re-energize and re-engage workers can
Source: Giving Everyone the Chance to Shine, HayGroup, 2010
be the first step in this retention process to ensure the
best and brightest continue to attain both personal
and professional success with the organization.

100 Best Companies To Work For. Ellig, J. Ellig, C. (May 31, 2011). Change Kelly Services (n.d.). Disengaged Employees Sheridan, K. (January 10, 2011).
CNN Money. Retrieved June 16, 2011 from at the Top Can Shatter Employee Morale. Costs the Company. Smart Manager. Retrieved Top 2011 Employee Engagement Trends.
http://money.cnn.com/magazines/fortune/ Business Insider. Retrieved June 2, 2011 from June 3, 2011 from http://www.kellyservices. MonsterThinking. Retrieved June 2, 2011
bestcompanies/2011/index.html. http://www.businessinsider.com/churn-at-the- com/eprise/main/web/us/ hr_manager/articles_ from http://www.monsterthinking.com/2011/
top-can-topple-employee-morale-2011-5. nov08_actively?printer=1. 01/10/employee-engagement/.
Bellon, J., Estevez-Cubilete, A., Rodriquez,
N., Dandy, R., Lane, S. Deringer, E. (2010). Everett, C. (May 13, 2011). Report Reveals Leonard, B. (April 19, 2011). Study: Employee Wiley, J. (July 13, 2010). The Impact
Employee Engagement and Customer Engagement More Complicated than Moods Impact Performance. SHRM Online. of Effective Leadership on Employee
Satisfaction. Allied Academies International We Thought. HR Zone. Retrieved June 2, Retrieved June 16, 2011 from http://www. Engagement. Employee Relations Today, 37,
Conference, New Orleans: LA. 2011 from http://www.hrzone.co.uk/topic/ shrm.org/hrdisciplines/ employeerelations/ 2, 47-52.
managing-people/report-reveals-engagement- articles/Pages/EmployeeMoods.aspx.
Bolchover, D. Re-engaging With Engagement. more-complicated-we-thought/111498. Wilson, C. (2010). The High Cost of Low
The Economist: Economist Intelligence Unit. Nolan, M. (May 2009). Dream Jobs: Engagement. Management Concepts, Inc.
Retrieved June 17, 2011 from http://haygroup. Freiberg, K. (1998). Nuts: Southwest Airlines’ Companies with the best employee
com/EngagementMatters/Re-engaging-with- Crazy Recipe for Business and Personal engagement scores. PeopleMetrics. Retrieved Woods, D. (May 20, 2011). Mine’s a latte with
engagement.pdf. Success. Crown Publishing. June 2, 2011 from http://blog.peoplemetrics. extra employee engagement, says Caffé Nero
com/ dream-job-companies-with-the-best- HRD. HR. Retrieved June 2, 2011 from http://
Cataldo, P. (April 5, 2009). Thinking Ahead: Gallup. www.gallup.com. employee-engagement-scores/. www.hrmagazine.co.uk/hro/news/ 1019501/
Why keeping staff engaged matters. Centre mine-s-latte-extra-employee-engagement-
Daily Times. Retrieved June 2, 2011 from Giving Everyone the Chance to Shine. (2010). Ohannessia, K. (May 25, 2011). American caff-nero-hrd.
http://www.centredaily.com. HayGroup. Retrieved June 17, 2011 from Employees Are Staying Put. FastCompany.
http://www.haygroup.com/Downloads/ww/ Retrieved June 2, 2011 from http://us.mg203. Wright Results. www.wrightresults.com.
CLC Human Resources (April 2011). misc/Giving_everyone_the_chance_ to_shine_ mail.yahoo.com/neo/launch?.partner= sbc.
Engagement Trends: Q1 2011. Corporate whitepaper_singles.pdf. rand=c7055etegiqu.m.
Executive Board. Retrieved June 16, 2011
from http://cebengagement.com/wp-content/ Gruman, J. Saks, A. (June 2011). Robinson, D., Perryman, S., Hayday, D. (April,
uploads/2011/05/CLC-Quarterly-Employee- Performance Management and Employee 2004). The Drivers of Employee Engagement.
Engagement-Trends-Q1-2011.pdf. Engagement. Human Resource Management Report 408. Institute for Employment Studies.
Review, 21, 2, 123-136.
Shambaugh, B. (September 16, 2010). Are
Head, J. (February 25, 2011). Beware the High Your Employees Engaged? Shambaugh
Cost of Low Engagement. Headwinds Journal. Leadership. Retrieved June 2, 2011 from
Retrieved June 2, 2011 from http://www. http://www.shambaughleadership.com/blog/
headwindsjournal.com/?p=34. comments/are_your_employees_engaged/.


If you’re ready totake the
next step in your career,
make a quick trip back to
the classroom first.

E X E C U T I V E D E V E L O P M E N T I N S T I T U T E

At UNC’s Executive Development Institute,
you’ll gain the core knowledge of an MBA program
without the long-term time commitment. You’ll
also learn how to view the business world from a
senior executive’s perspective. And you’ll develop the
UNC EXECUTIVE DEVELOPMENT
key leadership characteristics that lead to effective
The Power of Experience.
strategic performance. The result? In two weeks,
you’ll be fully prepared for that next step.

To learn more, visit www.edi.uncexec.com.

27

Closing the Gaps
in Leadership Development
Brigitta Theleman
Director, OneMBA Program
UNC Kenan-Flagler Business School

Introduction
The bottom line from leadership study after leadership • n American Management Association study found
A
study: the better the leader, the better the organiza- that organizations with global leadership programs
tional performance. According to a 2011 Development in place are more likely to report higher market
Dimensions International (DDI) leadership forecast,
organizations identified in the study as the top third in
overall leadership quality out-performed organizations
in the bottom third in workforce retention, employee Top Positions in Organizations
engagement, organizational performance and the
Held by Leaders, Not Managers
passion to lead. “Passion to lead” was defined in
the study as “those in leadership positions who are
In a survey of 50 global companies,
committed to and enjoy their roles as leaders for
the right reasons: helping see their company, teams
research firm ISR found a direct
and each individual they manage succeed”. These link between effective leadership
organizations also report increased customer satisfaction and financial performance. In
and productivity. organizations whose employees
rated their leaders as “average”,
HR and talent management professionals know the sales improved a little more than 6
value of strong leadership but continue to struggle to
percent in a year. In organizations
create learning cultures in their organizations:
whose employees rated their leaders
• ccording to the DDI report, 66 percent of leaders in
A as above average or higher, sales
organizations that rate their overall leadership quality rose more than 10 percent.
as high are confident of their organization’s success.
Source: Symonds, 2009
Only 4 percent of leaders in organizations with low
leadership quality are confident of their organization’s
success.


CLOSING THE GAPS IN LEADERSHIP DEVELOPM E N T

performance. Only about two-fifths of respondents,
however, agreed or strongly agreed with the statement
Promise
that their “leadership development program is highly This white paper examines the knowledge, skills and
effective.” That same study found that among abilities business leaders must have to ensure the
companies with 1,000 or more employees and some continued success of their organizations in today’s
degree of a multinational presence, approximately half competitive global marketplace. It will introduce HR
had implemented one or more leadership development and talent management professionals to a four-step
programs (Vickers, 2010). process taught at UNC’s Kenan-Flagler Business
School to improve leadership skills and to create
• report by Theresa Minton-Eversole, editor/manager
A a leadership culture within organizations.
for SHRM Online, found that only 40 percent of
employers reported having a formal succession or
executive coaching program in place, and only 54
percent said they had a process in place to identify
high potential employees (Minton-Eversole, 2009).

Organizations in the top third in overall leadership out-performed those in the
bottom third in employee engagement and other related performance factors.

PERFORMANCE FACTOR LEADERSHIP QUALITY
BOTTOM 1/3 TOP 1/3

Workforce Retention 24% 70%

Employee Engagement 9% 50%

Organizational Performance 13% 52%
(Financial performance, customer
satisfaction, service quality,
productivity)

Passion to Lead 7% 53%
Source: DDI Global Leadership Forecast, 2011.

29

Leadership Knowledge, Skills and Abilities
Needed Today
An increasing number of employers understand the directly to the increasing influence of HR and talent
connection between leadership and organizational management professionals in an organization. An IBM
success. During the recent recession when organizations study also noted that creativity and innovation were
slashed training budgets, leadership development critical leadership skills. Neuroscientist and founder of
programs were retained (Mattiolli, 2009). Employers the NeuroLeadership Institute David Rock would add
learned their lesson from previous lean times and knew adaptability to that list (Fox, 2011).
that if they were to emerge from the recession in good
shape, they needed to find, keep and foster good Not all organizations will need all the leadership skills
leaders to effectively lead in difficult times. DDI, IBM and others identified at the same time or
in the same proportion due to differing industry and
But what skills do business leaders need for today’s organizational needs. However, these skills are a good
business environment? The DDI study tried to determine start when looking at the present and future needs in
whether the skill sets leaders need in today’s business your own organization.
environment would be the same needed in the next few
years. They found that some of the key skills required London-based competency consultant firm Worldwork
today, such as driving and managing change; coaching has identified 10 key leadership competencies that
and developing others; and executing organizational help global business leaders become quickly effective
strategy, would still be required. Two new skills were in unfamiliar cultural settings. Although these
identified as being increasingly vital in the near future: competencies were determined with global business
identifying and developing future talent and fostering leaders in mind, they can easily be applied to all business
creativity and innovation. These latter skills speak leaders (Worldwork, n.d.):

What Makes a Good Leader? It May Be Neuroscience, Not Rocket Science

In a recent interview with HR when to stick to their beliefs and when to
Magazine, David Rock, founder work collaboratively. They also know when
of NeuroLeadership Institute in to look at the big picture and when
Sydney Australia, reported they need to get into the nitty-gritty.
that neuroscience has This means, according to Rock,
discovered that self- that leaders have “tremendous
regulation—the ability connections across all regions of
to regulate emotions, the brain.” This does not mean
thoughts and attention— that leadership is in the genes;
is essential to leadership. The Rock believes that most leaders
optimal leader, then, is adaptive. learn the ability to adapt and self-
The optimal leader, for example, knows regulate through experience.

Source: Fox, 2011



1. penness (new thinking, welcoming strangers,
O
acceptance)
A Framework for
2. lexibility (flexible behavior, flexible judgment,
F Developing Leaders
learning new languages)
Despite the hundreds of studies and books dedicated
3. Personal autonomy (inner purpose, focus on goals) to leadership development, a single formula has yet
4.
Emotional strength (resilience, coping, spirit of to emerge that will ensure an organization’s success
adventure) in developing good leaders. Global consulting and
outsourcing firm Hewitt (now Aon Hewitt) found
5. erceptiveness (attuned, reflected awareness)
P no single best leadership practice in their survey of
6. istening orientation (active listening)
L top leadership qualities. Instead, they uncovered a
framework that top organizations have in place to
7. ransparency (clarity of communication, exposing
T
sustain their ability to build leadership talent:
intentions)

8. ultural knowledge (information gathering,
C • CEO and board leadership support and inspiration
valuing differences) • A maniacal focus on high potentials
9. nfluencing (rapport, range of styles, sensitivity
I • The right leadership practices, done right
to context)
Hewitt found that CEOs at organizations rated high
10. ynergy (creating new alternatives)
S in leadership development were truly passionate about
developing leaders and felt it was their legacy to ensure
Talent development and HR professionals should that there were strong leaders in place throughout the
identify the knowledge, skills and abilities required for organization after they left. Hewitt’s study also revealed
leaders in their organization so that they can build a that the boards of companies with high leadership
framework that will support the development of these development believed it was one of their primary
competencies. responsibilities to ensure there was sufficient leadership
strength to sustain their organizations for three to
five years.

Not surprisingly, organizations with strong leadership
The Global Leaders of Tomorrow development cultures (called Top Companies in the
Hewitt study) identify and keep a sharp eye on their
Project
high potential employees. The Hewitt study found
that 95 percent of the Top Companies in leadership
U.K.-based Ashridge Business School’s 2008
development identify high potentials as compared with
survey found that 76 percent of CEOs and
77 percent of other companies. Top Companies track
executives surveyed said it was important that
turnover of high potentials 72 percent of the time,
senior executives have the skills and knowledge
versus 60 percent in other companies. In addition, the
to respond to trends like climate change,
Top Companies use internal training and developmental
resource scarcity and doing business in emerging
assignments with high potential employees 90 and 89
markets. Less than eight percent felt these skills
percent of the time, respectively. In comparison, non-
were currently being developed very effectively
top companies use the same development activities
by their organizations.
just 51 percent and 43 percent. Top Companies also
Source: Gitsham. n.d.
compensate high potential employees just for being
high potential 75 percent of the time, versus 38 percent
of the time for non-top companies.

31

Hewitt found that Top Companies develop the right organizational needs, but share the three common
leadership practices for their organization and industry themes just described: top management and board-level
and ensure accountability for their success 85 percent support for leadership development, an organizational
of the time, versus 35 percent for non-top companies. commitment to high potential employees, and
In addition, 85 percent of Top Company leaders are held accountability for the success of their leadership
accountable for developing high potentials through practices.
performance management systems versus 46 percent in
Talent management and HR professionals should assess
non-top companies, further demonstrating the leader-
whether these three factors exist in their organizations
ship development culture developed in Top Companies.
because they are vital to creating leadership learning
Top-performing companies may focus on different cultures that will ultimately make their organizations
leadership skills to develop based on industry and stronger and more successful.

Closing the Gap with the Continuous Learning Cycle
You can spend a lifetime reading about leadership; • Ethics (facing ethical dilemma and exhibiting integrity,

a quick Internet search will show that there are nearly courage, compassion and honesty)
70,000 books on the subject available through
Amazon.com and more than two million research • anagement communication (clearly expressing
M
articles. Thought leaders at UNC’s Kenan-Flagler a
uthority, persuasion, motivation, transparency,
Business School have condensed the best of these influence and inspiration)
publications into an effective continuous learning
cycle that HR and talent management professionals This is by no means an inclusive list as the results of
can incorporate into their organizations’ leadership studies by DDI, IBM and others can attest. Other areas
development programs to strengthen each individual’s that could be identified for development may include
ability to learn and adapt as a leader. The continuous the ability to deal with ambiguity, working well with
learning cycle is an integrated approach that focuses others (teamwork), negotiating effectively, developing
on the following four core components and produces self-awareness or developing open-mindedness (a
solid results in leadership development. development area that is vital to a global leader’s success).

The Continuous Learning Cycle
1. Principles N PRIN
Principles are the knowledge, skills and abilities leaders CTIO C
IP
LE

need to possess. The first step in an organization’s
LE

Shaping
REF

leadership development plan begins with identifying
S

what knowledge, skills and abilities need to be further
developed in the organization. These can include such
areas as: Leaders
CE
FE

• eading and managing (decision-making, problem-
L
TI
ED

BA
C

solving, using power and authority)
CK A
PR
• trategy (developing a business strategy and using
S
TM
strategy to make informed business decisions)



Example: IBM’s Corporate Service Corps Development Program

In 2007, a team of 30 top
leaders at IBM set out to identify
the knowledge and skills that
IBM would require of its future
leaders. The team discovered that in the past,
it was sufficient for IBM leaders to know
about the business. In the future, however,
they would need to be aware of the wider
political landscape in the locations in which
they operate. They identified that future global
leaders at IBM would need:

• deep understanding of the business,
A
economic and political landscape of
emerging markets

• he ability to form relationships with the social sector, local governments, non-governmental
T
organizations (NGOs), and other influencers

• ncreased sensitivity toward different cultures and customs
I

• he ability to work with and to lead multi-cultural teams
T

• wareness of core societal, educational and environmental challenges affecting the way the
A
organization does business in the 21st century

• commitment to understand and maintain the highest global integrity standards
A

To develop these needed skills, IBM’s corporate citizenship and HR teams created a six-month
“Service Corps” program that includes:

• hree months of pre-work (through online and wiki-enabled learning platforms) to help
T
participants to become familiar with the language, culture, socioeconomic and political
climates of the destination countries to which they would be assigned

• ne month of living in the emerging market area, the focus of which is to learn the core
O
societal, educational and environmental challenges of working with local NGOs and/or
governments

• wo months of post-service work that includes synthesizing the lessons learned and
T
participation in structured activities to share experiences with other participants and to
transfer knowledge (Gitsham, M., n.d.)

33

The “Three Cs” of Important Leadership Knowledge and Skills:

Context: Complexity: Connectedness:
The ability to identify social and The ability to lead in the face The ability to understand the
environmental trends and their of uncertainty, ambiguity and actors in the wider political
business implications and to disagreement. landscape and to engage and
understand how to factor them build effective relationships with
into strategic decision making. new kinds of external partners—
this can mean regulators,
competitors, NGOs or local
Source: Gitsham, n.d. communities.

2. Practice
Identifying an area for development is not enough. leadership development opportunities include Unilever,
Leadership studies have repeatedly shown that the best IBM, Novo Nordisk, ABN Amro and BG Group. Examples
way to learn, particularly for adults, is through practical of hands-on action learning opportunities include
experience such as on-the-job, project-based work and coaching others, leading a meeting, team building, or
action learning. Companies that excel at offering such even taking an expatriate assignment.

Example: Unilver’s Leadership Development Program
Unilever is a Dutch-based manufacturer of leading brands in food, home and
personal care. The company offers employees identified as high potentials a variety
of leadership programs, one of which was designed with Unilever’s emerging and
developing markets strategy in mind. Participants in this program are asked to develop
an emerging and developing market strategy that will position Unilever to quickly
acquire a strong share of the market as it develops. After participating in a residential workshop,
employees conduct field visits over a two-month period in “next practice” organizations in the
targeted emerging or developing market. “Next practice” organizations include NGOs, social
entrepreneurial and micro-finance organizations.

The learning from this experience is incorporated into a second residential workshop where
project teams develop business proposals and present them to Unilever executives. Successful
proposals are then taken forward and implemented (Gitsham, M., n.d.).

3. Feedback
The pioneer of leadership studies Warren Bennis organizations must foster cultures where leaders
once said: “Make sure you have someone in your life can give and receive it. Feedback can come in many
from whom you can get reflective feedback.” Honest forms--mentoring and coaching, performance reviews,
feedback is critical to a leader’s success, and as such, personality assessments, and monitoring reactions to



written and verbal communications (e.g., combative, The process of giving and receiving feedback is a
supportive, tense, etc.). Feedback helps individuals leadership development opportunity in itself. If your
gather information about how others view their organization does not have coaching or mentoring, peer
strengths and development opportunities. feedback, active listening or 360-degree programs in
place, this is a good time to implement one or more.

4. Reflection
In this continuing learning cycle, reflection means taking plans, career coaching, executive coaching or even
the time to put the principles, practice and feedback reflective essays.
into context. Did the leadership development experience
deliver the intended results? Why or why not? Ultimately, reflection may close one door and open
a dozen more—which leads back to the cycle of
Reflection may come in informal forms—such as principles, practice, feedback and reflection. As the
meeting peers to review a project outcome—or it may famous educator John Dewey concisely summarized:
be more formal and include professional development “Experience plus reflection equals learning.”

Example: InterfaceFLOR’s 2020 Development Program
Atlanta-headquartered InterfaceFLOR designs, produces and sells modular
flooring systems. InterfaceFLOR has manufacturing plants on four continents
and offices in more than 100 countries. Its vision is to become the world’s first environmentally
restorative company by 2020. To meet that vision, the company developed its Fast Forward
2020 leadership development program, consisting of three different levels:

• evel 1 is a short program to introduce key issues on sustainability and to introduce
L
employees to the company’s strategy and approach to achieve its mission. All InterfaceFLOR
employees must go through this program.

• mployees who have completed the first level can apply to participate in Level 2 (about
E
half of all employees choose to move on to this level). Level 2 is a one-day program
and is customized by functional area—for example; there are customized programs for
marketing, sales and operations employees. The focus is on building knowledge about
sustainable development and what that means to the business. Participants are encouraged
to link sustainable development to their own functional areas in general and their roles in
particular. To pass this level, participants must take an exam and complete an assignment
that features developing a personal action plan to help achieve the company’s mission.

• evel 3 is a two-day program in which about 10 percent of InterfaceFLOR employees are
L
chosen to participate. Participants at this level conduct research on future trends that will
affect the organization. Participants develop critical analysis skills and participate in debates
on difficult issues such as nuclear power, biofuels and the role of business in easing poverty.
Finally, all participants are required to participate in a mock television interview, where
external journalists pose challenging questions. This final step requires participants to reflect
on their research (Gitsham, M., n.d.).

35

Conclusion
John F. Kennedy once said that leadership and learning must help create learning cultures that nurture the
are indispensable to each other. In today’s increasingly development of strong leaders at all levels. Framing
complex business world, his words have never been more leadership development as a continuous learning cycle
fitting. Employers must ensure that their leaders have the such as the one used at UNC’s Kenan-Flagler Business
knowledge, skills and abilities that are crucial for their School offers HR and talent management professionals
organizations to succeed today and in the future. To meet a model in which to create long-term leadership
this challenge, HR and talent management professionals development solutions.

Bliss, W. (December 14, 2010). Eubanks, D., Antes, A., Friedrich, T., Koprowski, R. (May 27, 2004). The Six Solansky, S. (August 2010).
Developing Organizational Leaders. SHRM Caughron, J., Blackwell, L., Bedell-Avers, K., Principles for Developing Global Leaders. The evaluation of two key leadership
Online. Retrieved July 6, 2011 from Mumford, M. (June 2010). Criticism and AME Info. Retrieved July 4, 2011 from www. development program compenents:
http://www.shrm.org. outstanding leadership: An evaluation of ameinfo.com/40293.html. Leadership skills assessment and leadership
leader reactions and critical outcomes. The mentoring. The Leadership Quarterly,
Boatman, J. Wellins, R. Leadership Quarterly, 21, 3, 365-388. _____ (n.d.). Learning Leadership Principles. 21, 4, 675-681.
Global Leadership Forecast 2011. UNC Kenan-Flagler. Retrieved July 9, 2011
DDI International. Fox, A. (June 2011). Leading with the Brain. from http://www.kenan-flagler.unc.edu/ Symonds, M. (June 19, 2009). B-School’s
HR Magazine, 52-53. leadership/principles.cfm. Big Challenge: Developing Leaders, Not Just
DDI (June 13, 2011). Managers. Forbes.com. Retrieved July 5, 2011
DDI Global Leadership Forecast Shows Gitsham, M. (n.d.). Developing the Global Mattioli, D. (February 9, 2009). from http://www.forbes.com/2009/06/19/
Leadership Development Processes and Leader of Tomorrow. Ashridge Business Despite Cutbacks, Firms Invest in Developing business-schools-innovation-leadership-
Practices Need to Change. Newswire Today. School, Hertfordshire: U.K. Leaders. The Wall Street Journal. Retrieved careers-education.html.
Retrieved July 4, 2011 from http://www. July 5, 2011 from http://online.wsj.com/article/
newswiretoday.com/news/922229/. Goodman, N. (June 6, 2011). Best Practices: SB12339587424605897.html. _____ (n.d.). UNC Kenan-Flagler Leadership
What Not to Do When Developing Global Overview. Retrieved July 3, 2011 from http://
Effron, M., Greenslade, S. Salob, M. (July 4, Leaders. Training. Retrieved July 3, 2011 from Minton-Eversole, T. (February 18, 2009). www.kenan-flagler.unc.edu/Leadership/
2007). Growing Great Leaders: Does It Really http://trainingmag.com. Companies Doing Little to Close Leadership leadership-initiative-overview.cfm.
Matter? Human Resource Planning, 28.3. Gaps, Study Finds. SHRM Online. Retrieved
Hollenbeck, G. McCall, M. (January 28, July 6, 2011 from http://www.shrm.org/ Vickers, M. (August 5, 2010). Four Key
Ely, K., Boyce, L., Nelson, J., Zaccaro, S., 2002). Developing Global Executives—How to hrdisciplines/orgempdev/articles/. Practices for Developing Global Leaders.
Hernez-Broome, G. Whyman, W. (August Train Leaders for a More Global Perspective. American Management Association. Retrieved
2010). Evaluating leadership coaching: Harvard Business School. Retrieved July 4, Simmonds, D. Tsu, O. (November 2010). July 4, 2011 from http://www.amanet. org/
A review and integrated framework. The 2011 from http://hbswk.hbs.edu/archive/2732. Effective design of a global leadership training/articles/Four-Key-Practices-for-
Leadership Quarterly, 21, 4, 585-599. html. programme. Human Resource Development Developing-Global-Leaders.aspx.
International, 13, 5, 519-540).
_____ (n.d.). International Competencies.
World Work. Retrieved July 4, 2011 from
http://www.worldwork.biz/legacy/www/docs3/
competencies.html.


MBA for EXECUTIVES ONLINE MBA@UNC

At UNC Kenan-Flagler, your high-potential

employees can pursue one of the highest-

ranked MBA degrees in the nation while on

the job. They’ll gain the skills to compete

collaborate. Inspire instruct. With

ambition integrity.

CHOOSE FROM UNC’S MBA PROGRAMS

W I T H A VA R I E T Y O F S T U D Y O P T I O N S .

To learn more, visit www.mba.unc.edu

37

Developing Real Skills for
Virtual Teams
Meena Dorr
Director, Corporate Relations
MBA@UNC

Kip Kelly
Director, Marketing Business Development

Introduction
If estimates from the Telework Research Network are that business travel takes away from productivity and
correct, there’s a good chance that as you read this increases costs. The faltering economy was “the final
paper, you are sitting in your home office, catching momentum builder,” according to Malhorta, firmly
up on some reading on your designated telework day. entrenching virtual workers and virtual teams into most
According to the network, regular telecommuting grew corporate structures (UNC Kenan-Flagler, 2010).
by 61 percent between 2005 and 2009, and based
on current trends, the organization estimates that the
number of telecommuting workers will grow to nearly
five million by 2016—a 69 percent increase (Lister
Promise
Harnish, 2011). Not surprisingly, participation in and management of
virtual teams comes with its own unique challenges
With the growth of telework—increasingly called virtual and opportunities. This white paper will explore virtual
work—is the inevitable growth of virtual teams, groups teams, their benefits and challenges to organizations,
of people who are geographically dispersed but who and will outline the three key steps that HR and talent
work together virtually through the use of technology management professionals can follow to ensure that
such as teleconferencing and videoconferencing, e-mails, virtual team members and leaders in their organizations
text messages and telephone. Today, you would be hard have the skills, competencies and tools needed to
pressed to find an organization that doesn’t have one or succeed. These important steps are:
more virtual workers and virtual teams. 1. Participate in the selection process of virtual team

members and leaders.
And as Arvind Malhotra, associate professor of strategy
2. Ensure for the appropriate selection, training and use

and entrepreneurship at UNC Kenan-Flagler Business
of virtual team technologies.
School, notes, virtual teams are here to stay. Malhorta
says organizations realized more than 15 years ago 3. Provide training for virtual team members.


DEVELOPING REAL SKILLS FOR VIRTUAL TEAMS

The Rise and Staying Power of Virtual Teams
There are a variety of factors that led to the rise of In addition to increased productivity, studies confirm
virtual teams, but increasingly sophisticated technology that virtual teams offer employers and employees
made it possible, and globalization made it necessary. flexibility, reduce time-to-market, often offer better work
Once virtual teams began, organizations noticed an outcomes than conventional work teams, attract better
unanticipated bonus: virtual teams were, on average, employees and increase knowledge sharing. Global
more productive. According to Chad Thompson, senior virtual teams allow organizations to garner talent from
consultant with Aon Hewitt, the productivity of effective all parts of the world, save money on travel, and allow
virtual teams tends to increase from 10 to 43 percent, access to low-wage resources (Lockwood, 2010).
depending on the industry and the organization.
Thompson’s research also shows that in several cases, Virtual teams are not only attractive to employers,
the net increase in productivity was equal to or more they’re green too. According to the Telework Research
than the organizations’ savings on real estate costs. Network, the existing 2.9 million U.S. telecommuters
save 390 million gallons of gas and prevent the release
Surveys repeatedly show that employers will continue of 3.6 million tons of greenhouse gases annually (Lister
to host and even expand the number of virtual workers Harnish, 2011).
and teams:

• AON Consulting’s 2009 Benefits and Talent Survey

found that 97 percent of respondents said their
organizations either planned to increase
virtual work and telework options or
keep them at the same level (Leonard,
2011).

• A SHRM survey found that

22 percent of organizations
expect the number of their
employees who work
virtually to increase in the
next 12 months. Seventy-six
percent expect that it will
remain the same and only
3 percent expect it to
decrease (Lockwood, 2010).

• Forty-three percent of HR
professionals responding to
another SHRM poll predict that a
larger proportion of their workforce
will be telecommuting within the
next five years
(Lockwood, 2010).

39

Virtual Team Challenges
There are challenges, however, inherent in the virtual included language (64%), holidays, local laws and
team concept. It is difficult to build trust and to manage customs (59%) and technology (43%).
conflict when team members lack the ability to interact
Much of these challenges are exacerbated when
face-to-face. Communication is often more challenging,
working with global virtual teams. According to
particularly among global virtual teams, which can also
Karen Cvitkovich, managing director of global talent
make it more difficult to overcome cultural barriers
development at Asperian Global, cultural issues
(Ebrahim et al, 2009).
often inhibit team communications. She notes that
A recent report by RW3 LLC, a cultural training service, people in North America tend to be “low context”
found that 46 percent of employees who work on virtual communicators, and rely on words and signals
teams said they had never met their virtual team cohorts to interpret what a person means. Most of the
and 30 percent said they only met them once a year. world’s populations, however, are “high context”
The report, The Challenges of Working in Virtual Teams, communicators, meaning that they rely on nonverbal
was based on a survey of nearly 30,000 employees from cues and focus more on the relationship, the setting,
multinational companies. The survey also found that: and previous interactions to interpret what someone
means (Hastings, 2008).
• he top challenge for virtual team members was the
T
inability to read nonverbal cues (94%). As noted in the survey results, selecting and using the
• here is an absence of collegiality among virtual team
T appropriate technology for the task—and ensuring that
members (85%). all members on a virtual team have access to the same
technology—can also be a stumbling block. E-mail and
• t is difficult to establish rapport and trust in virtual
I
the telephone may be widely available and appropriate
teams (81%).
for relaying fact-based information, but they lack the
• ost virtual team members (90%) said they don’t
M
ability to convey the nonverbal cues so vital to building
have enough time during virtual meetings to build
trust and teamwork. As a result, selecting the wrong
relationships.
technology may result in misunderstanding among
• anaging conflict is more challenging on virtual
M team members and ultimately harm interpersonal
teams than on conventional teams (73%). communication, trust and productivity (Lockwood,
• ecision making is more difficult on virtual teams
D 2010).
than on conventional teams (69%).
These challenges to virtual teams are not insurmountable.
• t is more challenging to express opinions on virtual
I
HR and talent management professionals’ active involve-
teams than on conventional teams (64%) (Hastings,
ment in the proper selection and training of virtual team
2010).
talent, the selection of the appropriate technologies
In addition to these interpersonal challenges, survey
(and the training for use in those technologies) and the
respondents noted that different time zones are a
encouragement of executive support for virtual teams
stumbling block for virtual teams (81%). Other hurdles
can turn these challenges into opportunities.

The Characteristics of Effective Virtual Teams
Research by Lynda Gratton and Tamara Erickson (2007) 1. Executive support
found that successful virtual teams shared the following
2. Effective HR practices
characteristics:
3. Well-structured teams
4. Strong team leaders



Practical Tips to Improve Virtual Team Relationships

Diversity training service group RW3, LLC offers Karen Cvitkovich, managing director of global
the following practices organizations can use talent development at Asperian Global, offered
to improve the relationships among virtual team the following tips during a 2008 SHRM Diversity
members: Conference to help with the challenges of cultural
• old monthly virtual lunches to build rapport.
H diversity faced by many global virtual teams. Her
first word of advice for virtual meetings: set ground
• se online chats, video-conferencing and
U
rules for team interactions. Some practical ideas to
audio-conferencing in addition to one-on-one
help set those ground rules include:
conversations and e-mail.
• Speak slowly.
• ost profiles of team members on an online
P
directory. The profiles can include each member’s • Don’t interrupt.
areas of expertise and how they fit into the • Listen to understand.
overall organization. • peak as though remote participants are in
S
• e sensitive to the amount of participation virtual
B the room.
team members will engage in if meetings are • on’t use a computer or text message
D
held early in the morning or late at night in their during meetings.
time zones. • et agendas for meetings and distribute them
S
• an multi-tasking during calls and meetings
B beforehand.
(Hastings, 2010).

1. Executive Support
Their study found that virtual teams do well when in one or both of those practices, often in ways that
executives support the development of social reflected their organizations’ cultures and business
relationships at work (thereby building trust among strategies.
colleagues) and demonstrate collaboration. The ways in
Collaborative behaviors include demonstrating
which executives build and support social relationships
appreciation of others, engaging in purposeful
in their organizations are as varied as the organizations
conversations, creatively and productively resolving
themselves, but Gratton and Erickson found that the
conflicts, and program management. Informal
most successful executives employ “signature” practices
community building activities include feedback,
that are memorable, hard to replicate and particularly
mentoring and coaching because these practices help
well-suited to their organizations.
virtual workers feel connected to the organization.
2. Effective HR Practices HR should also ensure that succession planning and
promotions are tracked to make sure virtual team
The study also found that two particular HR practices
members are receiving recognition and credit
improved team performance; training in skills to build
(Leonard, 2011).
collaborative behavior and informal community building.
In instances where collaboration was strong, they found
that the HR team had made a significant investment

41

3. Well-Structured Teams experience difficulty building trust and rapport among
team members. To help foster trust and rapport, virtual
Selecting the right people to serve on virtual teams is
team leaders must focus on relationship building,
critical to a team’s success. T.H. Ong, vice president,
demonstrate excellent communication skills (including
Americas and Asian Pacific for Global Integrations,
the ability to provide frequent feedback), and have
Inc., notes that the best virtual workers are those who
emotional intelligence. Because decision-making can
thrive in interdependent work relationships and who
be a challenge, particularly early in a virtual team’s
are self-reliant and self-motivated. Good virtual team
partnership, virtual team leaders must also have a track
members tend to like or tolerate ambiguity, and are
record of producing results and a focus on process
independent thinkers who are willing to take initiative.
(Lockwood, 2010).
Most importantly, Ong notes, good virtual workers
have strong communication skills (Leonard, 2011).

4. Strong Team Leaders
For virtual teams to succeed, strong leadership is a
must, and while the skills and abilities needed for
managers of conventional teams are similar to those
needed for leaders of virtual teams, there are a few How HR Can Support
key differences. Virtual teams don’t have the benefit
of frequent face-to-face interaction, and consequently,
Virtual Work Teams
In 2010, SHRM asked HR professionals how they
supported their organization’s virtual workforce. The
poll, Transitioning to a Virtual Organization, found the
vast majority (76 percent) of respondents said they
Practices of Effective Virtual Leaders had established policies and procedures for virtual
UNC professors Ben Rosen and Arvind Malhotra work and 66 percent had worked with IT to ensure there
and University of Southern California professor was support for questions from workers about
Ann Majchrzak studied virtual teams and found the hardware and software required for virtual work
that effective virtual leaders: Only 37 percent of respondents, however, had provided
e-learning opportunities for their virtual worker, and a
• stablish and maintain trust through the use of
E mere 8 percent had provided cultural sensitivity training
communication technology. for their virtual leaders. Less than a quarter (20 percent)
said they had provided training on leadership styles. The
• nsure that diversity on the team is understood,
E
growth of virtual teams has clearly outpaced the support
appreciated and leveraged.
activities needed to ensure these teams’ success.
• anage virtual work-cycles and meetings.
M
Step 1: Participate in the Selection
• nhance external visibility of the team and its
E Process of Virtual Team Members and
mentors.
Leaders
• nsure that individuals benefit from participation
E The characteristics of successful virtual employees
on the virtual team. include self-motivation, self-reliance, and the ability to
tolerate ambiguity. They are able to work independently
Source: Rosen et al, 2007.
but aren’t “lone wolves”, and they are good team
members and excellent communicators. HR and talent
management professionals can assist virtual team



leaders at the team formation stage by assessing Examples of ways to recognize virtual team members
whether employees in contention for membership on include hosting virtual reward ceremonies, recognizing
a virtual team possess these skills. In addition, because individual contributions at the start of virtual meetings,
it is expected that organizations will expand the use and making team members’ local bosses aware of their
of virtual teams, assessing job candidates for these contributions (Malhotra et al, 2007).
skills during the selection process will help position the
organization for the future. When forming virtual teams, HR and talent management
professionals should be aware of the skills and
Effective virtual leaders understand that the lack of competencies effective virtual leaders demonstrate and
face-to-face interaction in virtual teams makes it difficult assess whether potential virtual leaders currently possess
to establish trust and take it upon themselves to build them or can develop them with additional training.
that trust. Successful virtual leaders do this by focusing
on team norms and how information is communicated Step 2: Ensure For the Appropriate
(often by setting up communication protocols, setting Selection, Training and Use of Virtual
team expectations and articulating objectives, and
Team Technologies
clearly defining team member roles). In addition, they
ensure that all geographically dispersed team members Before a virtual team is formed, HR and talent
“suffer equally” by rotating virtual meeting times to management must consider the technologies teams
accommodate different time zones. These leaders will need to be successful. Virtual workers rely on
find that offering frequent feedback, mentoring and these technologies to see facial expressions and to
coaching also help build communication and trust assess nonverbal cues--key drivers to establishing trust
among team members. among team members. Instant messaging and chat
platforms (like Yahoo! Messenger and Skype), shared
It is easy to lose track of project deadlines when technology services (like Lotus Notes and Microsoft
individuals work on virtual teams. Good team leaders Exchange), remote computer access, web conferencing
closely track progress and productivity using software (like WebEx and NetMeeting), file transfer ability, e-mail,
tools and other technologies to do so. Studies have and telephone (either hard-wired or VOIP) must be
found that good virtual team leaders manage virtual assessed by IT and HR, and made available to all virtual
meetings well (ensuring that there is ample time for team members. HR should ensure that training on how
social relationship building, that all team members are and when to use these communication technologies is
participating, and that conflicts are resolved during offered (and offered again as remote team members
virtual meetings). Effective virtual team leaders often rotate in and out).
communicate project progress through balanced
scorecard measurements posted on the team’s virtual When implementing technologies for virtual team use,
workspace (Malhotra et al, 2005). HR should consider creating a space in the organization’s
computer system specifically for that team’s use—a
Effective team leaders also avoid the “out-of-sight, out- section or a bulletin board—where team members can
of-mind” syndrome by reporting virtual team activities share personal experiences and family news. Creating
and progress to other managers and stakeholders. such a social networking platform will encourage
This not only enhances the team’s visibility, it also lets employees to interact on a more personal basis and
the team know that others value their work, thereby help build trust and a sense of community among team
fostering a team mentality. members. Experts recommend that employers refrain
from “policing” these areas because that may inhibit
Effective virtual team leaders also ensure that members interaction among team members (Leonard, 2011).
receive recognition from participating on the team. These virtual areas can be considered a kind of virtual
break room.

43

Step 3: Train, Train, Train
There is no doubt; the skills and competencies required working virtually challenging. Similarly, you may find
of virtual team members are high level and complex, that great communicator who has all the makings
making the odds of assembling that A-team of virtual of becoming a great virtual team leader, but who is
teams who possess all the skills and competencies befuddled by “groupware” and “social networking
required to successfully navigate in a virtual environment platforms”. Training will be necessary for virtual teams
a long shot. You may find that technical guru whose to succeed, and it is the HR and talent manager’s
knowledge is critical to the project at hand, but who imperative to identify the skills gaps and to ensure that
finds the expanded communication skills needed when training to close those gaps is made available.

Examples of Best Practices in Virtual-Team Training
• abre, Inc. hosts team-building sessions with
S • ocketdyne uses information-sharing technologies
R
virtual teams to develop a mission statement, to such as virtual knowledge repositories for their
set team objectives and clarify roles, and to create extensive training for virtual teams.
a shared group identify. • GlaxoSmithKline uses cultural awareness exercises
• t Dow Chemical, virtual team members take
A to break down stereotypes, improve virtual team
courses on etiquette and meeting management communication and to clarify role expectations.
for virtual teams.


UNC professors Ben Rosen and Richard Blackburn Virtual team members needed to develop skills in:
conducted an in-depth study on the training needs for • Establishing trust and managing conflict among

virtual teams and found that executives working on the team
virtual teams needed training in the following:
• Demonstrating cultural sensitivity and communication

• Leading a virtual team meeting • Exhibiting positive team building practices

• Coaching and mentoring team members virtually • Using communication technologies

• Monitoring progress and taking corrective action • Selecting the appropriate technology to fit a task

(Rosen et al, 2006)
• Managing external relationships with local managers
• valuating and rewarding individual contributions
E Based on the outcome of their survey and additional
to the team research, Rosen and Blackburn offered a comprehensive
prototype for virtual team training (see call-out on
page 34). The model reflects the best practices of
successful virtual teams and can be used as a starting
point for training in any organization seeking to
implement or improve virtual teams.



Example: Cisco’s Collaborative Enterprise Framework
Cisco Systems, Inc. developed a model to help organizations align their business
strategies with the emerging technologies that allow for virtual teamwork. Called a
Collaborative Enterprise Framework, it is focused on managing people, processes and
technology—in that order.

How do they know the framework is effective? They implemented it in their own organization.

According to Christine Fisher, head of Cisco’s supply chain collaboration center, before
implementing the framework, most collaboration among the 9,000 supply chain employees and
30,000 outsourced workers occurred through phone, e-mail and in-person meetings. With the
company’s rapid global expansion, the group turned to new technologies to help coordinate the
resulting challenges.

The group started by using collaboration tools to address particular projects where virtual
team input was necessary. For example, employees used Cisco WebEx Connect, a collaborative
workspace and document sharing software, to create a blueprint for lean manufacturing.
Employees also started using video conferencing technology to replace face-to-face meetings.

The use of these tools lowered costs by eliminating travel and increasing productivity. Most
importantly, reports Fisher, they helped boost the quality of their efforts. Fisher found that
employees provided richer contributions that were easier for all participants to see and comment
on.

But her group found that simply providing collaborative tools to employees was not enough.
Although employees wanted more of the latest and greatest collaboration tools like the
corporate versions of wikis, Facebook, or My Yahoo sites, they often became information
graveyards. “We’ve seen this not just in the supply chain team, but throughout Cisco,” Fisher
says. “People were so focused on the tools they didn’t really think about how they would use
them.”

The group wanted to ensure that collaboration tools were acquired strategically, keeping the
company’s business goals in mind, and were used properly, so instead of continuing to roll-out
technologies on an ad hoc basis, the group took a step back. They held a series of workshops
where employees received basic training on Web 2.0 tools. Workshop participants were then
asked to identify high-touch and problem areas where people and information intersect.
Workshop participants then detailed various what-if scenarios to see how Web 2.0 tools might
address various operational challenges. With the information gathered in these workshops, the
group formulated a strategy for using new collaborative technologies to meet their needs.

As a result, the “Connected Supply Chain Workspace,” was born, a place where all the people
involved in Cisco’s supply chain (partners and Cisco employees) can share pertinent information
to coordinate their activities.
Source: Cisco Systems, Inc. (2009). Creating a Collaborative Enterprise.

45

A Model Virtual Team Training Program
Training Modules for Virtual Team Leaders
• itting the technology to the task
F • oaching and mentoring virtual
C • anaging external relations
M
• Setting expectations, measuring
team members (on-site managers, sponsors)
and rewarding team • odeling desired virtual team
M
contributions behaviors (responsiveness, using
groupware to share information)

Training Modules for Virtual Team Members and Leaders
• Face-to-face teambuilding • astering virtual team
M • eam management
T
session before virtual team technology – irtual meeting logistics
V
launch – Use of groupware (synchronizing schedules,
– Establish team identity – eleconference and
T setting agendas)
– Create mission statement videoconference procedures – Defining roles
– Establish team norms • Communication skills – Resolving conflicts
– Build trust – Electronic etiquette – Meeting milestones
– Cultural awareness – valuating process and
E
– Brainstorming electronically progress
– Decision making

Conclusion
Virtual teams have a promising future in organizations • Participating in the selection process of virtual team

seeking to leverage the strengths of their globally members and leaders by assessing virtual team fit.
dispersed workforces. Successful virtual teams can • nsuring the selection of virtual leaders who possess
E
increase productivity, lower operating costs and speed the right combination of communication skills and
the time to market. Virtual team member and leaders, business acumen.
however, face unique challenges when compared with • ffering training programs designed to keep virtual
O
conventional work teams. HR and talent management teams up-to-date with the appropriate technology and
professionals can foster the success of virtual teams in to fill identified skill gaps.
their organizations by:

Cisco Systems, Inc. (2009). Creating a Hastings, R. (July 1, 2010). Fostering Virtual Malhotra, A. Majchrzak, A. (Winter 2005). Rosen, B., Furst, S., Blackburn, R. (Summer
Collaborative Enterprise. Working Relationships Isn’t Easy. SHRM Online. Virtual Workplace Technologies. MITSloan 2006). Training for Virtual Teams: An
Retrieved August 6, 2011 from http://www. Management Review, 46, 2, 11-16. Investigation of Current Practices and Future
Ebrahim, A., Shamsuddin, A. Taha, Z. (2009). shrm.org. Needs. Human Resource Management, 229-247.
Virtual Teams: A Literature Review. Australian Malhotra, A., Majchrzak, A. Rosen, B.
Journal of Basic and Applied Science, 3(3), Leonard, B. (June 2011). Managing Virtual (February 2007). Leading Virtual Teams. UNC Kenan-Flagler (April 13, 2010). Managing
2653-2669. Teams. HR Magazine, 39-42. Academy of Management Perspectives, 60-70. an A-Team of Far-flung Experts Requires Special
Leadership Tactics. Forbes India. Retrieved
Gratton, L. Erickson, T. (November 2007). Lister, K. Harnish, T. (June 2011). The State of Oates, N. (Fall 2005). The Best Way to Train August 6, 2011 from http://business.in.com/
Eight Ways to Build Collaborative Teams. Telework in the U.S. Telework Research Network. Virtual Teams. UNC Business. Retrieved August article/kenanflagler/managing-an-ateam-of-
Harvard Business Review, 3-11. Carlsbad: CA. 6, 2011 from http://www.kenan-flagler.unc.edu/ farflung-experts-requires-special-leadership-
news/alumniMag/2005Fall/virtualteam.html. tactics/7802/1.
Hastings, R. (December 3, 2008). Set Ground Lockwood, N. (2010). Successfully Transitioning
Rules for Virtual Team Communications. SHRM to a Virtual Organization: Challenges, Impact
Online. Retrieved August 8, 2011 from http:// and Technology. SHRM Research Quarterly.
www.shrm.org. Alexandria: VA.


We help you
develop executive talent
while tackling real-world
challenges.
(Now that’s multi-tasking.)

U N C E X E C U T I V E D E V E L O P M E N T CUSTOM EXPERIENCES

Businesses today face many distinctive challenges.
We listen to your needs and develop a thorough
understanding of your business and industry.
Then we create unique executive learning
experiences designed to develop your executives
as they address and overcome these challenges.
Multi-tasking at it’s best.

To learn more, visit www.uncexec.com.

47

Rethinking Generation Gaps
in the Workplace:
Focus on Shared Values
Marion White
Account Director

Introduction
A friend of mine told me recently that she had
“ ou can only be young once.
Y
e-mailed a funny story about her pre-teen daughter to You can always be immature.”
her 75-year-old mother and promptly got the response,
– Dave Barry
“LOL.” My friend said she was glad her mother was
LOL, because had she been ROTFL, then she would
have been worried if her mother could get up. My
friend went on to tell me that her mother thanked her Are my friend’s parents an exception, or have we been
for the gift certificate she had e-mailed to her 85-year- so intent emphasizing the differences in the generations
old stepfather for his birthday. My friend told me that that we’ve been blind to our commonalities? Have
he applied the gift certificate to his online account and we unwittingly become victims of stereotyping? Is the
used it to download books for his new e-reader. generation gap really that wide?

A story like this makes you wonder if we’ve got this
whole generation gap concept right.
Promise
This white paper reviews emerging studies that suggest,
The popular press has had a field day alerting human while there are some tensions among the generations,
resource (HR) and talent management professionals the generation gap has been overly exaggerated in
to the looming generation gap in the workplace. The the popular press. In fact, the different generations
stories invariably begin something like this: “For the first may actually have more in common than previously
time in history, four generations will be in the workplace thought. These studies will be used to highlight the
at the same time.” Most reporters then describe the values generations share in the workplace and provide
gap and its potential adverse impact on the workplace. guidance to HR and talent management professionals
In many cases, it isn’t described merely as a gap. It’s on how to improve organizational culture and
a crisis, a war, a chasm so deep that it threatens our communication by focusing on and leveraging these
organizations’ very futures. common traits.


G E N E R AT I O N G A P S : F O C U S O N S H A R E D VA L U E S

Defining the Generations
A generation is defined as a “group of people born Generation gap analysts believe these shared life
in the same general time span who share some life experiences condition generational groups to see and
experience—such as big historical events—pastimes, act differently than other generational groups; hence,
heroes and early work experiences” (Weston, 2001 in the emergence of a generation gap. These generational
Blauth, McDaniel, Perrin Perrin, 2011). differences, they believe, cause us to communicate and
use technology differently and have different world-
views and perspectives on family and work-life balance.

There are currently four
generations in the workplace:
“ arents often talk about
P
Traditionalists the younger generation as
Born before 1945, experienced the if they didn’t have anything
Great Depression, World War II,and
the Korean War. According to gener-
to do with it.”
ation gap experts, their heroes include – Haim Ginott
John Wayne and Joe DiMaggio.

Baby Boomers
Born between 1945 and 1964, Generation gap experts say that traditionalists’ shared
experienced suburban sprawl, the experiences have resulted in a strong work ethic; belief
explosion of television, the Vietnam in the “greater good”; focus and perseverance; loyalty;
Era and Watergate. Their heroes stability; and a view that work is a privilege. Baby
include Martin Luther King, Jr. and boomers’ shared experiences resulted in a generation
Dr. Spock. with a strong customer-service orientation. Baby
boomers are dedicated, optimistic, future-oriented team
Generation X players with a wealth of knowledge and experience
Born between 1964 and 1980, shared to contribute to the workplace. Generation Xers are
Sesame Street, MTV, PCs, soaring adaptable, technologically proficient, independent,
divorce rates and were the first latch- creative and willing to buck the system. Millennials are
key kids. Their heroes include Michael optimistic multi-taskers with a global world view who
Jordan and Bill Gates. believe in volunteering and serving their communities
(AICPA, Undated).
Generation Y or Millennials
Born after 1980, experienced the
These diverse world views and life approaches, some
development of the digital camera,
experts contend, can cause workplace clashes of epic
social media (Facebook, Twitter,
proportions, lower morale and increase turnover,
LinkedIn), YouTube, 9/11, Katrina and
requiring HR and talent professionals to take special
increased diversity. Their hero is
care to keep the peace in workplaces.
President Barack Obama.

Source: Daniels, 2009.

49

Shedding New Light on the Generation Gap
Surprisingly, these generational characteristics are In fact, the Korn/Ferry report concluded, all four
based on little scientific research. While there are generations share the same top work motivators of
certainly differences among us in how we approach desire for continuous employment and opportunities for
work, emerging research is starting to turn traditional promotion. Additionally, the study noted, commitment
thinking about the generation gap on its head. A levels were the same across generations, although
2008 Australian study on generational differences in younger generations tended to accept higher risk levels
personality and motivation concluded that the results earlier in their careers (Johnson Lopes, 2008 in Mlodzik
of the study “are not supportive of the generational Demeuse, 2009). Another study cited in the Korn/
stereotypes that have been pervasive in management Ferry report found that Baby Boomers and Gen Xers had
literature and media.” In fact, the authors noted, similar perception of leadership, organizational climate
“Even when differences have been observed, these and work attitudes (Hart, Schembri, Bell Armstrong,
have related more to age than generation.” (Wong, 2003). Yet another study concluded that Gen Xers and
Gardiner, Land Coulon, 2008). Yers also shared similar attitudes toward leaders (Levy,
Carroll, Francoeur Logue, 2005).

A 2011 Achieve Global survey also concluded that “it’s
not generational difference: it’s ageism,” and that the
“ .Yet, many of the
… stereotypes regarding generations limit contributions
of people of all ages and organizational levels and
age-related stereotypes can, in fact, hurt collaboration, production, workplace
presented in the relationships and individual self-perception (Blauth, et al,
2011).
media…appear to be
anecdotal, testimonial
or human interest
stories masquerading “n case you’re worried
I
opinion as fact.” about what’s going
Source: Mlodzik DeMeuse, 2009.
to become of the
younger generation,
it’s going to grow up
and start worrying
The executive recruiting firm Korn/Ferry International about the younger
reviewed scholarly literature to see if the claims of a
generation gap had any scientific merit. They found generation.”
that no study supported the existence of differences – Roger Allen
across all four generations and the few that found
support for differences “lacked scientific rigor”.
(Mlodzik Demeuse, 2009).



Rethinking the Generation Gap in the Workplace
Research conducted by Ben Rosen, Ph.D., Professor of Researcher Huntley Manhertz Jr., Ph.D. (2007 in Blauth
Organizational Behavior for the Kenan Flagler Business et al, 2011), also found four universal needs among
School at the University of North Carolina at Chapel generations in the workplace. The top-rated need
Hill, also suggests that generations may have more among all generations was the need to be respected.
in common than previously thought. Rosen recently Other shared needs Manhertz identified were
conducted a survey to examine how the generations competence (feeling valued as knowledgeable, skilled
viewed each other, what they expected from their and experienced), connection (through collaboration
employers and how they defined ideal leaders. More with co-workers) and autonomy (the ability to exercise
than 5,400 people responded to the survey. “We found self-control within specified guidelines to achieve
that Baby Boomers, Gen Xers and Millennials all shared shared goals).
the same top five expectations of their employers. They
also agreed in their views of what an ideal leader should
look like,” Rosen reported.

Rosen’s research found that all three generations
expected the following from their employers:
1. To work on challenging projects.
2. Competitive compensation.
3. pportunities for advancement, and chances to
O
learn and grow in their jobs.
4. To be fairly treated.
5. Work-life balance.

All three generations agreed that the ideal leader:
1. Leads by example.
2. Is accessible.
3. elps others see how their roles contribute
H
to the organization.
4. Acts as a coach and mentor.
5. hallenges others and holds others accountable.
C

“ y research findings reveal that there are some
M
work expectations and leadership perceptions that
the generations have in common,” reports Rosen.
“ hat doesn’t mean, however, that there isn’t cross
T
generational friction as well, but I believe the
starting point for bridging any possible generation
gap is to build on the similarities.”

51

“ here was no respect for youth when I was young, and
T
now that I am old, there is no respect for age - I missed
it coming and going.”
– J.B. Priestly

Working with Shared Values across the Generations
The bottom line: It’s time for HR and talent We all want the same thing from
management professionals to stop looking at what
our leaders
divides us among the generations and start with what
keeps us together—our desire for our organizations to As Rosen’s research suggests, all generations agree
succeed, our need for good leaders, finding success in on the characteristics of an ideal leader. HR and talent
our careers, and recognizing that we all face aging and management professionals can use this knowledge
uncertainty in our futures. to develop leadership programs that encourage the
development of those characteristics and to foster
organizational cultures that encourage leaders to lead
We all want our organizations to by example, be accessible, serve as coaches and mentors
succeed and who can challenge employees and hold them
accountable.
All generations desire continuous employment and
are highly committed to good employers. It stands
to reason, then, that we all want our organizations to We all want some measure of success
succeed. A 2000 Catalyst study of 1,200 Gen Xers in in our careers
North America found that 85 percent of respondents
We all want opportunities for promotion and the chance
said they cared a great deal about their organization’s
to work on challenging projects, suggesting that all
future, and 83 percent said they were willing to go
generations want to feel successful in their careers
beyond what is expected to ensure the success of
regardless of what their life stage may be. We all want
their organizations, countering prevailing wisdom
to feel that we are viewed as competent, knowledgeable
that Gen Xers lack loyalty to their employers
workers and to be treated with respect for our
(Giancola, 2006).
contributions.

What HR and talent management professionals
Typical generation-gap thinking says that Gen Xers lack
should do:
loyalty to their employers and are far more likely to jump
• evelop an organizational culture that encourages
D ship than Baby Boomers. The truth may be that as Gen
employee decision making. Xers search to find a good employee/employer fit, they
• ffer employees learning and development
O tend to take more risks in their career and will change
opportunities that will allow them to succeed in jobs more frequently than Baby Boomers until they find
their jobs. that fit. Once they find that fit, they are as committed to
• mplement coaching and mentoring programs.
I their employer as any other generation.



What HR and talent management professionals can do: by Gen Xers and Baby Boomers. Their expectations can
• evelop strong leadership programs to enhance
D be modified if they understand that these two older
existing leaders’ skills and abilities and which identify generations may enjoy some integration of their social
and foster future leaders within the organization. lives into their work lives, but not at the expense of
their children, spouses or parents. Gen Yers can now
• ffer coaching and mentoring programs to
O
understand a little better why their Gen X and Baby
encourage cross-generational communication and
Boomer co-workers can’t hang out every Friday night
enhance career satisfaction.
at the local tavern or why they tend to “get down to
• reate employee reward systems that acknowledge
C business” a little faster to avoid long work days.
employee contributions.
Clarifying expectations about what work-life balance,
professional behavior and workplace engagement
means to different generational cohorts can promote
“t’s one of nature’s ways
I workplace collaboration.

that we often feel closer to What HR and talent management professionals can do:

distant generations than to • Offer work-life balance programs that meet

employee’s needs at every life-stage.
the generation immediately • Develop coaching and mentoring programs to

preceding us.” encourage cross-generational communication.
• Clarify expectations about how different generations

-Igor Stravinsky define work-life balance, professional behavior and
workplace engagement.

We will all face challenges in the future
We are all aging
Just as aging is inevitable, so is the uncertainty that
If we refocus “generation gap” to mean life stages, comes with the future. The challenges we face today
the differences among age groups can be seen as a will change and new, unanticipated challenges will
continuum and not necessarily divisive. For example, arise. Our world is changing faster than ever, as
Gen Yers may crave feedback and coaching. This need seen through the evolution of technology, the global
has been translated by generational gap pundits as seen economy, growing and waning populations across
as time-consuming and ego-centric to Baby Boomers. If the world, and the ever increasing strain on the
we rephrase that need for feedback and coaching into environment. These and other changes have a ripple
a life stage, Baby Boomers can better understand that effect on the business world and will require a collective
anyone embarking on a new career may need more effort of all generations to ensure the survival of their
frequent confirmation and support than a seasoned organizations.
professional. Instead of Baby Boomers hearing a great
What HR and talent management professionals can do:
sucking sound of valuable work time lost, they become
the coach to the next generation in their fields. • Develop change management programs to help

employees at all levels cope with a rapidly changing
Conversely Gen Yers, who expect their social lives to be workplace.
integrated with their work lives, can be educated about
the complications of marriage and family experienced

53

Conclusion
If employers focus on what the generations have in
common, treat their employees fairly and offer them
work-life balance, challenging projects, opportunities “ am happy to report
I
for advancement, learning and growth in their jobs,
they will get committed, loyal workers and productive that my inner child is
workplaces in return.
still ageless.”
HR and talent management professionals must look at
-James Broughton
what we have in common and build organizations that
speak to these commonalities. Instead of focusing first
on what divides us, a better approach to managing
generations in the workplace may be to start with our
similarities.
CLASS OF
‘72 ’92
‘02 ’22

AICPA (Undated). Finding Common Ground: Erickson, T. (2010, June 8). Redefining Gen Lesonsky, R. (2011, February 9). How to Thurman, R. (2010, July 27). 36 Facts About
Recognizing the Value of Multi-generations Y. Bloomberg Businessweek. Retrieved March Manage Employees from Every Generation. Generation Y in the Workplace and Beyond.
in Your Workplace. AICPA. Retrieved March 25, 2011 from http://www.businessweek. Business Insider. Retrieved March 25, 2011 Rosetta Thurman.com. Retrieved March
25, 2011 from http://www.cpai.com/risk- com/managing/content/jun2010/ from http://www.businessinsider.com/ 25, 2011 from http://www.rosettathurman.
management/ employergard/generational- ca2010067_362970.htm. managing-different-generations-in-the- com/2010/07/36-facts-about-generation-y-in-
article.jsp. workplace-2011-2. the-workplace-and-beyond/.
Gelston, S. (2008, January 30). Gen Y, Gen X
Blauth, C., McDaniel, J., Perrin, C. Perrin, P. and the Baby Boomers: Workplace Generation Manhertz, H. (2009). The Generational Divide: Weddle, P. (2010, November 8). The Non-
(2011). Age-based Stereotypes: A Silent Killer Wars. CIO. Retrieved March 25, 2011 from Crucial Consideration or Trivial Hype? Achieve Generational Talent of American Workers.
of Collaboration and Productivity. Achieve http://www.cio.com/article/178050/Gen_Y_ Global. Tampa: FL. MonsterThinking. Retrieved March 26,
Global. Tampa: FL. Gen_X_and_the_Baby_Boomers_Workplace_ 2011 from http://www.monsterthinking.
Generation _Wars. Mlodzik, K. DeMeuse, K. (2009). A Scholarly com/2010/11/ 08/career-activism.
Daniels, S. (2009, May). Generational Investigation of Generational Workforce
Differences Aren’t that Prevalent. Talent Giancola, F. (2006, December 1). The Differences: Debunking the Myths. Korn/Ferry Wong, M., Gardiner, E., Lang, W. Coulon, L.
Management. Retrieved March 25, 2011 from Generation Gap: More Myth than Reality. International. Los Angeles: CA. (2008, February). Generational differences in
http://www.talentmgt.com/performance_ Human Resource Planning. Retrieved March personality and motivation. Do they exist and
management/2009/ May/945/index.php. 30, 2011 from http://www.allbusiness. what are the implications for the workplace?
com/public-administration/ administration- Journal of Managerial Psychology, 23, 8.
human/4010578-1.html.


Helping you
grow your greatest asset:
your people.

OPEN ENROLLMENT
U N C E X E C U T I V E D E V E L O P M E N T
PROGRAMS

Our executive development open enrollment offerings combine powerful continuing
business education content with real-world work experience. Through action learning
and business simulation activities, we challenge participants to think, reflect, and
grow as leaders.

GENERAL BUSINESS MANAGEMENT HUMAN CAPITAL MANAGEMENT
• xecutive Development Institute
E • usiness and Human Resources:
B
• egotiation Skills for Effective
N Leading HR and Your Organization
Managers into the Future
• hange Management
C
• ales Management
S FINANCIAL MANAGEMENT
• trategic Planning and Business
S • inancial Analysis for
F
Decision Making Non-Financial Managers

LEADERSHIP AND EFFECTIVENESS STRATEGIC BUSINESS INNOVATION
• eadership Effectiveness Workshop
L • trategic Innovation for the
S
• roject Leadership: Build a
P New Business Environment
Best-in-Class Project Team
• omen in Business: Transitioning
W CORPORATE SUSTAINABILITY

to Leadership • ecoming Green: Effective
B
Sustainability Strategies for
You and Your Organization
To learn more, visit www.uncexec.com. The Power of Experience.

55

How to Help Leaders Succeed:
A Guide to Successful
Executive Career Transitions
Chris Hitch, Ph.D.
Program Director

Bob Bennett
VP and Chief Learning Officer of FedEx Express
FedEx Corporation

Introduction Promise
Landing a new executive job can be tough. Succeeding This white paper provides HR and talent management
in that new job may be even tougher. According to professionals six simple steps they can take with newly
Bradt, Check Pedraza (2009), less than 36 percent hired executives to ensure successful transitions into
of executives hired from outside an organization their roles and organizational cultures. These steps
will succeed and perform well in their new jobs. A are cost affordable and can be scaled to any size
Harvard Business School report estimated a failure organization. With today’s leaner organizations, it is
rate between 40 and 60 percent for all U.S. executives more important than ever to reduce the break-even
in 2003. A 2005 Right Management report found point—the point at which new leaders have contributed
that approximately 30 percent of new managers and as much value to their organizations as they have
executives fail at their new jobs and leave within 18 consumed from it—from six to three months (Watkins,
months (Williams, 2010). 2003). Throughout this white paper are examples of
organizations that have recognized this need and have
The ramifications are significant. Losing an employee developed programs that provide guidance to their
can cost as much as three times the person’s salary, executives to ensure successful career transitions.
according to estimates from the HR consulting firm The
Wynhurst Group. The cost of losing an executive goes
well beyond financial, however, and these costs may The Basics of Onboarding
be more difficult to overcome. Employees can lose trust The term “onboarding” is frequently used to describe
and confidence in their leadership teams which can the process used to acclimate new executives to
affect morale, turnover, service, quality, processes and organizations. According to George Bradt, co-author of
much more. Onboarding: How to Get Your New Employees Up to
Speed in Half the Time, onboarding is “the process of
acquiring, accommodating, assimilating and accelerating
new team members, whether they come from inside or
outside the organization.”


CAREER TRANSITIONS: HELPING LEADERS SUCCEED

Too often, a newly hired executive’s assimilation to an
organization’s practices, policies and culture are left to
chance and personal initiative. And while U.S. culture
The 6 Derailers for New
values a “bootstraps” mentality, leaving new executives Executives
to their own devices and expecting them to learn about According to the Corporate Leadership Council,
the organization on their own can lead to errors in there are six derailers for new executives:
judgment, poor decision making, and misinterpretation
of the organization’s culture. In short, many new 1. Failure to establish key connections and

executives end up “shooting themselves in the foot,” partnerships.
alienating superiors and co-workers and polarizing
2. Lack of political savvy or support to

the workplace.
effectively navigate through the organization.

HR and talent management professionals can help 3. Failure to establish cultural fit.
new executives acclimate to their new roles and/or
organizations by ensuring they have the knowledge and 4. Confusion about role expectations.
tools needed to succeed. This responsibility is not a one-
5. Lack of feedback and coaching.
time action; it is an ongoing process that starts before
they are hired and continues throughout their careers. 6. Ineffective people management/team

building skills.
There probably are a thousand different ways talent
management and HR professionals can help career (Source: Moore, 2008)
transitions, but focusing on these six simple steps
consistently will help standardize and accelerate
successful career transitions.

57

Example: Johnson Johnson’s Formal Approach to Onboarding
The Brunswick, New Jersey-based pharmaceutical giant Johnson
Johnson takes a more formal approach to executive onboarding. After
assessing new executive success rates, the company established three different programs
for new leaders coming into the company and for those being promoted from within the
organization.

Their New Business Leader program targets senior executives moving from a functional
responsibility to a more complete job. The Transitions Leadership Forum is for vice presidents
and executive vice presidents taking on new functional roles, and the Transitions Coaching
Program helps senior leaders continue their transitions through a formal coaching program.

As a result of these programs, Johnson Johnson reports that 95 percent of new leaders feel
they are better able to focus on appropriate priorities, 83 percent of new leaders say they
developed new partnerships and 82 percent said they had clarified expectations with their
new boss.

Step 1: Encourage Candidates to Do Their Homework
Before the Interview
A wise person once said, “Some people dream of think the position will help them get closer to achieving
success…while others wake up and work hard at it.” those goals; suggesting they research the organization;
Unfortunately, for many HR professionals, it seems that and offering ideas as to where they can obtain more
people increasingly expect HR to lead them to career information (usually through the organization’s website
success. It is important to let candidates know from and news media).
the outset that they are in charge of their career paths.
These simple suggestions let candidates know that:
They must develop the path, research and achieve the
a) they are expected to have some basic understanding
skills needed to move along that path, and identify the
of the job and the organization at the time of the
coaches and/or mentors to help them get there.
interview, and
That is not to say that HR cannot facilitate the process. b) the organization is interested in their employees’
HR can prepare outside candidates during the screening career development and the “fit” of an employee to the
process by asking about their career goals and how they position in particular and the organization as a whole.



Step 2: Give New Executives as Much Information as
Possible About the Organization
New hires are often so busy wrapping things up in their Provide organizational performance
previous positions that they let important steps to orient
themselves to their new jobs lag—steps like learning
data
more about their new position and organization. Let Now that you have encouraged new leaders to do their
new hires know that homework doesn’t end at the homework by gathering available data, it is time to
pre-interview stage. Encourage them to map out a plan provide them with important organizational data
for the transition and to be sure to include time to learn such as:
about the new job and/or organization.
• Financial reports

New executives should assess the organization and
• Strategic plans

determine where it stands in its lifecycle. Is the
organization expanding? Is it a new start-up or a • Employee performance reviews of direct reports

more established organization focused on sustaining (personally identifying information removed if the
success? Is the organization going through a rough reviews are provided before assuming the position)
patch, and have you been hired to clean it up? Is it
• Results of employee satisfaction and loyalty surveys

ripe for a takeover? Is it a newly merged organization?
from within the group and among your customers
Each phase offers different opportunities and calls for
different leadership approaches. • Internal performance targets and metrics

• Exit interview summaries

Before their first day, HR should provide new executives
with information about the organization so they can • Individual development plans for everyone in the

learn the technical, political (key sources of influence organization (personally identifying information
and coalitions) and cultural (the norms, habits and removed if the information is provided before
customs that shape the organization) aspects of the assuming the position)
organization – knowledge they will need to succeed. • Analyst reports

• Goals and objectives of the predecessor

Encourage new leaders to obtain as
• Internal/external customer goals and objectives

much publicly available information
about the organization as possible They need to know the good, the bad and the not-so-
pretty aspects of the organization before they start the
Encourage new leaders to conduct an external scan job, and this information will give them insight into
of the organization to assess how the organization organizational strategies, goals and culture.
is perceived from the outside in. Encourage them to
review any and all public documents available (such
as annual reports if applicable). An Internet search
should provide plenty of quantitative and qualitative
information and give new leaders a sense of the
issues surrounding the organization.

59

Step 3: Provide Opportunities to Meet with
Key Stakeholders
Effective orientation must consider how new leaders HR executives can coach new leaders for this interview
can avoid the missteps often caused by a lack of by suggesting the following questions:
understanding of an organization’s technical, political • What is the guidance from your boss (your boss’

and cultural landscape. Although providing internal boss)?
documentation can shed some light, HR and talent
management professionals can help new leaders gain • What are the informal keys to success here?

valuable knowledge about the organization’s internal
• Where is the strategy working well and where can it

operations by ensuring that new leaders meet with
be improved?
key stakeholders. Key stakeholders include the job
incumbent (if possible), the new leader’s direct reports, • What are the organization’s strengths and

the boss two levels up (the boss’ boss), peers, staff challenges?
members and key external clients. If possible, have
newly hired executives meet with someone from the • What metrics does the organization use to track

internal communications department to gain insight progress?
on how to effectively “frame the message” they want
While it is important that new executives come to the
to leave with these stakeholders in a way that aligns
job with an open mind and form their own opinions
with organizational communication approaches and
about people and the environment, this might be
practices. These meetings should be scheduled during
a good time for them to get their predecessor’s
the new leader’s first few days on the new job.
opinion on:
Meeting the Job Incumbent • Primary customers’ and the boss’ likes, dislikes and

This meeting will help new leaders get a better “hot buttons” issues.
understanding of the incumbent’s perspective on • Information about staff, such as informal leaders, the

the organizational strategy, priorities, performance likes and dislikes of each, who can be counted on for
objectives and any measures for those objectives. The what, special skill sets, etc.
goal is for incoming leaders to get the incumbent’s
ideas on the key challenges facing the organization in
the next 12, 24 and 36 months—the near future.



Meeting the Boss
This meeting should focus on getting a sense of the • What does “success” look like for you in your job?

boss’ priorities. New leaders should ask similar questions
• What would “success” look like for me in my job?

to those posed to the incumbent, but the following
questions could also be revealing:
Meeting with Other Stakeholders
• hat are the organization’s top three to five priorities?
W
New leaders should also be given a chance to meet
• How do we plan to achieve those priorities?

with his/her boss’ boss, peers, direct reports and clients.
• What are your top three priorities? (This question
Similar questions to the ones listed above should be
will allow new leaders to see how well that person’s asked and answers should be noted. Asking similar if
individual priorities match with the organization’s not identical questions allow new leaders to assess how
priorities.) consistent organizational goals, objectives and priorities
are among all leadership levels and to identify hidden
• What are the three to five things we should preserve
agenda items that may affect their decision making.
and maintain? Why?
At the end of these meetings, HR should suggest that
• What are the top three things that need to be
it may be appropriate for the new leader to establish or
changed? Why? begin to establish customer/supplier agreements that
will be a “contract” for what, when and how each
• What goals do you hope I achieve? What do you

stakeholder will support each other. This “contract”
envision is the timeframe for accomplishing these
should identify deliverables, articulate timing, processes
goals?
and accountability, and any other details important to
• What are you most concerned that I do?
any of the involved parties.

• If you were in my shoes, what would you do first?

Example: Bristol-Myers Squibb’s “Survivor Analysis”
A
“survivor analysis” at global biopharmaceutical company Bristol-
Myers Squibb found that they were losing new executives because
the organization was not taking steps to ensure their success.

They developed an executive onboarding program that started during the selection
process. All candidates for positions of vice president or above are subjected to a three-
hour interview intended to gauge their leadership abilities and organizational fit.

Newly hired executives are under intensive scrutiny during their first 30-60 days. During
that time, they are provided organizational guidelines, given opportunities to clarify
their roles, having meetings arranged with influential colleagues and informed of the
organization’s cultural norms.

Follow-up meetings are scheduled during the new executives first year to check on
their progress. Bristol-Myers Squibb reports a substantial improvement in their executive
retention rates (Wells, 2005).

61

Step 4: Help New Leaders Establish a Clear Break Point
New leaders—whether they are moving into a new As new leaders scramble to wrap-up their current roles
position from within the organization or from outside and prepare for their new ones, encourage them to
the organization—generally have 30 to 60 days to make think through the differences in the old and new jobs.
the transition. If new leaders are moving into a new Leadership is situational, and by virtue of moving to a
position from within the organization, HR can assist the new position, they are, in fact, in a new “situation.”
transition by ensuring there is enough time for them to Consequently, they may need to change their behaviors.
wrap-up and delegate work from the previous position.
The chart below may help crystallize their thinking in
Let new leaders know they should determine what
this regard by identifying the behavior and offering
tasks and projects they will complete for their current
ideas as to what specifically those changes should be.
job and which tasks and projects will be left undone
but sufficiently documented to allow a successor to
efficiently and quickly take over.

Major How you think, Questions
Areas look, act and you have
Of behave about your
Focus “Current Job” “New Job” differently new job

Priorities

Leadership
Team

Key
External
Stakeholders

Key
Internal
Stakeholders



Step 5: Assign a Coach and Follow-up on Progress
Laying the framework for new leaders to succeed • Assigning a coach who can offer the personal and

shouldn’t stop after the first 60 days. Ask anyone who professional support new leaders will need as they
has moved to a new country; acculturation can take learn about their new organizations.
years. The same is true for a new executive. It will take
• Being a partner themselves in the development and

time to fully understand the organization’s nuances, and
success of the new executive.
having a trusted colleague to turn to can help. HR and
talent management professionals can facilitate ongoing • Making “orientation” a lifetime process through

acculturation by: the availability of additional learning.

• Being actively involved in the individual’s develop-

ment plan.

63

Example: FedEx’s Executive Success Orientation

Through FedEx’s Leadership • Leadership Principles 2 for senior managers which help

Principles Program, the them understand themselves and the basics of leading
company works with both managers.
formal and informal leaders at all levels to foster career
paths. They have created a learning organization through • Leadership Principles 3 for directors which help them

the development of a curriculum composed of formal, make the transition from a tactical thought process to
accelerated, experiential, online (e-learning) and other one more strategic in nature.
blended learning programs, starting with
non-management employees and reaching up through • EXCEL for vice presidents, integrating the complexities

senior and executive officers: of operating in a global environment and providing
support in recognizing the need for corporate and
• enter for Employee Self Development for employees
C personal responsibilities within our community.
to view career paths and gain the knowledge and skills
needed to pursue their chosen path. • Executive coaching for senior level officers.

• ollege Consortium composed of accredited learning
C All these are supported with (a) recurrent intervention
institutions that provide incentives to employees--such training that is provided at all levels depending on
as credit for experience and courses taken at FedEx particular needs and (b) a formal ten-month Coaching
Express. for Performance program that uses webinars, peer
coaching and conference calls to foster and recognize
• eadership Principles 1 for managers, a nine to
L implementation of desired behaviors. All these offerings
12-month program providing them the basics they are tied into a comprehensive talent management and
need (operational/business skills and how to lead succession planning process.
people) to make the large step into management.

Step 6: Encourage Ongoing Communication
By following these last five steps, HR and the One important action HR can encourage and be
organization has made sure the new executive’s involved with are regular employee meetings and
network is in place to ensure success. The new executive feedback sessions to foster communication, read the
has been informed, met with key stakeholders, been pulse of the organization, learn about what is going
coached and is ready to go. HR should now let them well and what is not, and gather thoughts for moving
know that during their first 90 days on the new job, forward. If this is done, the new executives are ready to
they should work quickly to align their teams, identify begin making significant contributions quickly—and the
or reaffirm key goals and objectives, and set direction. entire organization will be there to support them.
And, the HR team should assure them that they will be
with them every step of the way on this journey.



Ferris, E. (2008). Nyman, M. (2010, August 18). Wells, S. (2005, March).
Why Executives Fail. Leader Values. Retrieved February 26, The Executive Onboarding Challenge. Diving In. HR Magazine, 50, 3.
2011 from http://www.leader-values.com/content/detail. Industry Week. Retrieved February 26, 2011 from
asp?ContentDetailID=1328. http://www.industryweek.com/articles/the_executive_ Williams, R. (2010, May 2). CEO Failures: How On-Boarding
onboarding_challenge_22537.aspx. Can Help. Psychology Today. Retrieved February 26, 2011 from
Moore, M. (2008, October). http://www.psychologytoday.com/blog/wired-success/201005/
Spotlight on Executive Onboarding. PA Times, 5. Watkins, W. (2003). ceo-failures-how-boarding-can-help.
The First 90 Days: Critical Success Strategies for New Leaders
at All Levels. Cambridge, MA: Harvard Business Press.

65

Lead your
HR organization
into the future.
B U S I N E S S A N D H U M A N R E S O U R C E S

Now more than ever, senior HR leaders need the
knowledge, skills and experience to respond to
emerging trends that are shaping the future of global
business. Offered in partnership with the Society for
Human Resource Management (SHRM), UNC’s
Business and Human Resources program is designed
to equip senior HR leaders with the most up-to-date
business knowledge and skills needed to succeed in
the rapidly changing business environment today -
and tomorrow.

To learn more, visit www.bhr.uncexec.com.


Managing employee talent is vital to the success of
any organization. At UNC Executive Development,
we provide unique learning experiences to create
solutions for our partners.

We listen to the needs of our partners and develop
a deep understanding of their businesses and
industries. We also make a commitment to the
organizations we work with to meet their goals
and objectives while providing ongoing support
and client management.

We call our approach The Power of Experience.
We combine traditional with experiential and
unique learning. Through action learning and
business simulation activities, we challenge
participants to think, reflect, and make
decisions differently.

Our goal is to provide unique, memorable, and
transformational learning impacting individuals,
as well as the organization itself.

67

ideas@work vol.2

More Related Content

What's hot (16)

Viewers also liked (17)

Similar to ideas@work vol.2 (20)

More from Kip Michael Kelly (19)

Recently uploaded (20)

ideas@work vol.2