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Performance Management

Published June 2009

8 Leadership Mistakes

 

  Robert P. Gandossy and Michelle Salob Freiberg

"Sometimes the questions are complicated and the answers are simple." – Theodor Seuss Geisel

In the ever-challenging task of managing talent, Dr. Seuss couldn't have been more right. The head of executive development for GE once said without a touch of arrogance: "We will share what we do around talent and leadership with anyone — including our competitors — because we don't believe it is replicatable."

Yet, what GE does is not all that complicated: It hires great people. It sells careers, not jobs. It identifies, rewards and develops great talent. That's it.

But if the answers are so straightforward, why don't more companies get it right?

Eight Obstacles to Success

1. Complex programs and practices vs. simple ones: The best leadership development processes aren't overly engineered or sophisticated. Complex and rigid models do not work well in this era of speed, uncertainty and volatility. While technology can enable processes, talent leaders should be able to do many things on the back of the proverbial envelope. Provide practical tools for managers; design programs for scalability to grow with the organization; and drive for honest conversations about performance, potential and capabilities.
2. Do as I say, not as I do: If the CEO and senior executives won't spend the time to make talent and leadership a priority, neither will anyone else. The magic is not around the programs and practices. The underlying values and behaviors of leaders make the difference. Leadership isn't just about what leaders do. It's something they are, which then drives what they do. Genuine leadership comes from within. Programs and practices are the manifestation of these beliefs and values.
3. Haves vs. have-nots: Though research shows the benefit of differentiating the best talent, many organizations are paralyzed by inaction when it comes to this talent. Executives worry about alienating or disengaging others in the organization. Or conversely, they over-reward average performance in a misplaced effort to acknowledge everyone's contributions. These both send wrong messages. According to Hewitt Associates, under-recognition of high potentials is one of the single biggest issues companies face. But making sure top talent feels special doesn't have to supplant making solid performers feel successful. One key is establishing ratings and rewards systems that send the desired messages to top talent, solid contributors and underperformers. Another is equipping leaders to have the right kind of honest and open conversations about performance and potential.
4. The road less traveled: For some talent managers, realizing there is a need to focus on leadership is only the first baby step. Then you must act. This need not be complicated — just start somewhere. The best companies constantly refine and improve, but doing nothing can move an organization backward in the talent marketplace. The best people may be walking out the door while you wait. Don't tackle everything at once. Attack a few key processes in parallel. Take a life-cycle perspective focused on getting the right practices in place to have the greatest short- and long-term impact. First, talent managers have to get the hiring right. Focus on the most critical talent: high potentials, high performers and those with key skills. Get the right leaders in place to grow the business and future talent. Make an honest assessment of talent capabilities and gaps through robust performance management and talent reviews. Finally, get succession management right. This sends a message the organization is serious about growth from within.
5. Potholes left unfilled: Many companies have some kind of discussion about talent capabilities and skill growth needs. But that often is where it stops. The content of that discussion winds up in a drawer. Or action steps are assigned without accountability. Taking the time to identify development needs and then failing to build those capabilities is a waste of time. The best companies take the extra steps to hold individuals responsible for developmental action steps, monitor follow-up actions and assess progress.
6. Broken chains: Leadership practices — performance management, selection, talent reviews, development — often are not well-connected. They are owned by different groups that do not always share accountabilities or talk to one another. In some organizations, leadership assessments in business units are kept secret from corporate so top talent isn't moved. Talent and leadership practices are interrelated, and success requires they be coordinated and aligned. Even more troubling is the frequently missing link to strategic business objectives. Leading companies design their practices to support business goals and drive business success. They think about the skills needed to meet future business needs, provide critical talent with experiences that will enable them to be better leaders, and make talent decisions with business needs in mind.
7. Confidence without capability: Many leaders talk about the importance of leadership and talent. Many of those leaders wrongly believe they are doing the right things to create a talent engine. This is one of the most difficult hurdles to overcome. Some organizations think they are better at leadership than they actually are. Often, these companies may do one process fairly well, but they don't address the bigger picture. Or they are missing some of the basic elements of good leadership. Others have not evolved good programs over time. These companies often are weakest around executive ownership and passion. A third group does all the right things, but only on paper. All the boxes are checked off, but they are not effectively executing these practices in a meaningful way.
8. Just-in-time talent: During the past several decades, many companies formed bad habits by buying what they needed, when they needed it. This was possible due to the ready supply of available talent. The consequences of that strategy are becoming clearer. Too many companies have bought talent on the open market. This can be time consuming and increasingly cost-prohibitive. Evidence inside and outside of companies shows overinflated talent often underperforms, and this has undesirable financial and cultural impacts.

Most CEOs will admit they do not have enough senior leadership talent to sustain significant growth demands. And given market conditions for the most talented leaders, many now realize the best way to ensure a strong pipeline of talent is to find and develop it themselves. While increasingly challenging, this task has proved highly effective, especially at senior levels.