The Leadership Pipeline: How to Build the Leadership Powered Company
By Stephen Drotter, Ram Charan and James L. Noel
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About this ebook
In business, leadership at every level is a requisite for company survival. Yet the leadership pipeline –the internal strategy to grow leaders – in many companies is dry or nonexistent. Drawing on their experiences at many Fortune 500 companies, the authors show how organizations can develop leadership at every level by identifying future leaders, assessing their corporate confidence, planning their development, and measuring their results.
New to this edition is 65 pages of new material to update the model, share new stories and add new advice based on the ten more years of experience. The authors have also added a "Frequently Asked Questions" section to the end of each chapter.
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Book preview
The Leadership Pipeline - Stephen Drotter
Six Leadership Passages
An Overview
The six turns in the pipeline that we’ll discuss here are major events in the life of a leader. They represent significant passages that can’t be mastered in a day or by taking a course. Our goal here is to help you become familiar with the skills, time applications, and work values demanded by each passage, as well as this particular leadership gestalt. Once you grasp what these passages entail and the challenges involved in making each leadership transition, you’ll be in a better position to use this information to unclog your organization’s leadership pipeline and facilitate your own growth as a leader. Going through these passages helps leaders build emotional strength as they take on tasks of increasing complexity and scope. The following six chapters will provide you with ideas and tools to achieve full performance at all leadership levels in your organization.
As you read about each passage, you’ll naturally apply it to your own organization and may question how we’ve defined and divided each turn in the pipeline. The odds are that you’ll immediately think of at least one (and probably more) leadership transitions that apply to your own company that we have not addressed in the Leadership Pipeline model. While there certainly are other transitions, they are too small or incomplete to qualify as a major passage. For instance, many global companies have business general managers at the country level and regional executives with responsibility for several countries. These regional executives report to a person with a title such as global consumer products head. Although this global consumer products head manages group managers (the regional executives, in this case), she isn’t an enterprise manager, because she reports to a CEO or president and has little accountability for total corporate profit-and-loss matters. For our purposes here, we would categorize her as a group manager, even though she may have responsibility for other group managers.
Similarly, you may wonder why the transition from team member to team leader isn’t worthy of its own passage. First, this is usually a subset of Passage One (from managing self to managing others). Second, team leaders frequently lack the decision-making authority on selection and rewards that first-line managers receive. Third, team leaders usually focus on technical or professional matters (getting a project or program completed) and aren’t tested in more general management areas.
Each organization is unique, and each probably has at least one leadership passage with distinctive aspects. It’s likely, however, that you can fit that distinctive passage into one of our six passages. As you become more attuned to each of them, we believe you’ll see how they apply to your own situation and organization. If there is a passage in your business that doesn’t fit our model, create your own definition of the transition and tell us about it.
Passage One: From Managing Self to Managing Others
New, young employees usually spend their first few years with an organization as individual contributors. Whether they’re in sales, accounting, engineering, or marketing, their skill requirements are primarily technical or professional. They contribute by doing the assigned work within given time frames and in ways that meet objectives. By sharpening and broadening their individual skills, they make increased contributions and are then considered promotable
by organizations. From a time application standpoint, the learning involves planning (so that work is completed on time), punctuality, content, quality, and reliability. The work values to be developed include acceptance of the company culture and adopting of professional standards. When people become skilled individual contributors who produce good results—especially when they demonstrate an ability to collaborate with others—they usually receive additional responsibilities. When they demonstrate an ability to handle these responsibilities and adhere to the company’s values, they are often promoted to first-line manager.
When this happens, they are at Passage One. Though this might seem like an easy, natural leadership passage, it’s one where people often trip. The highest-performing people, especially, are reluctant to change; they want to keep doing the activities that made them successful. As a result, people make the job transition from individual contributor to manager without making a behavioral or value-based transition. In effect, they become managers without accepting the requirements. Many consultants, for instance, have skipped this turn, moving from transitory team leadership to business leader without absorbing much of the learning in between. The result, when business leaders miss this passage, is frequently disaster.
The skills people should learn at this first leadership passage include planning work, filling jobs, assigning work, motivating, coaching, and measuring the work of others. First-time managers need to learn how to reallocate their time so that they not only complete their assigned work but also help others perform effectively. They cannot allocate all of their time to putting out fires, seizing opportunities, and handling tasks themselves. They must shift from doing
work to getting work done through others.
Reallocating time is an especially difficult transitional requirement for first-time managers. Part of the problem is that many neophyte managers still prefer to spend time on their old
work, even as they take charge of a group. Yet the pressure to spend less time on individual work and more time on managing will increase at each passage, and if people don’t start making changes in how they allocate their time from the beginning, they’re bound to become liabilities as they move up. It’s a major reason why pipelines clog and leaders fail.
The most difficult change for managers to make at Passage One, however, involves values. Specifically, they need to learn to value managerial work rather than just tolerate it. They must believe that making time for others, planning, coaching, and the like are necessary tasks and are their responsibility. More than that, they must view this other-directed work as mission-critical to their success. For instance, first-line knowledge managers in the financial services industry find this transition extremely difficult. They value being producers, and they must learn to value making others productive. Given that these values had nothing to do with their success as individual contributors, it’s difficult for them to make this dramatic shift in what they view as meaningful. While changes in skills and time applications can be seen and measured, changes in values are more difficult to assess. Someone may appear as though he’s making the changes demanded by this leadership turn but in fact be adhering to individual-contributor values. Value changes will take place only if upper management reinforces the need to shift beliefs and if people find they’re successful at their new jobs after a value shift.
Passage Two: From Managing Others to Managing Managers
This leadership passage is frequently ignored, especially relative to the previous passage (where the transition to new responsibilities is more obvious). Few companies address this passage directly in their training, even though this is the level where a company’s management foundation is constructed; level-two managers select and develop the people who will eventually become the company’s