Assessing Senior Executives

Transcription

1 Delta Assessing Senior Executives The Group Evaluation Method (GEM)

2 Your Problem: I m embarrassed by the number of times we ve failed to pick the right people for senior leadership roles. We can t afford to make any more of these costly mistakes. 2

3 No strategy, organizational design, or management process can overcome a fundamental lack of leadership talent. But while senior leadership forms the foundation of a successful organization, it s a difficult asset to build and maintain. Putting the right people in the right jobs is a frustratingly elusive skill. So how can you improve the odds? First, the most successful leadership development strategies are closely linked to a company s strategy and business context. Next, it s important to objectively identify the skills and strengths a position requires, then match candidate profiles to job profiles rather than haphazardly evaluating candidates by a set of highly subjective criteria. It s also advantageous to use a combination of assessment methods that are likely to produce the most reliable data. Additionally, our experience indicates there are at least two systemic problems that undermine the ability to pick the right talent. The first is a lack of candid discussion about a senior leader s strengths and developmental needs. Assessing Senior Executives 3

4 { The political nature of organizations and people makes maintaining frank communication within and between levels of an organization one of the most challenging problems for the CEO and the Vice President of Human Resources. No matter what assessment or talent management approaches are used, they must address this very real failing: when evaluating another individual, people are either reluctant or unable to be honest about what they see and experience. Bosses and others have all sorts of biases, but when unchallenged by information and facts, they remain unaltered. Even if the data from a formal assessment is 100 percent accurate, it can easily be misinterpreted. The combination of flawed input and subjective interpretation is not apt to yield an accurate picture, so it s no surprise that most organizations do poorly in predicting an individual s future success in a job. Whether this is done consciously or unconsciously, the result is the same: costly and visible selection and placement failures. The second problem is the use of assessment methods that don t accurately predict performance in a more responsible or different role. Most assessments stop with descriptions of a candidate and don t use the data to predict how an individual might perform in a different context. Even the best executive assessment won t force people to be open or erase biases when they are evaluating someone else. However, one of our evaluation processes the Group Evaluation Method (GEM) can significantly increase your chances of picking the right people for critical positions by allowing for a frank discussion about an individual s strengths and weaknesses and including a prediction of performance in a more responsible role. GEM goes beyond a mere description of a candidate by predicting his or her future success and offering developmental suggestions. 4 Oliver Wyman Delta

5 Our Approach: The Group Evaluation Method (GEM) The same unique culture that gives a company a competitive edge can also make it difficult to see how someone from the outside will fit in. Our experience has shown that: Organizations frequently overlook leadership talent that already exists Success in senior positions depends upon whether a new leader is accepted by his or her peers Developing and promoting internal talent already performing successfully within your current and unique culture is preferable to hit-ormiss recruiting of external senior-level executives Promotions send a signal that you value your current management cadre Many external candidates fail, not because they lack capability and talent but because the existing culture rejects them GEM is a unique process for evaluating internal candidates for senior-level positions that has been effective in predicting future success. Through a group discussion by people who know both a position s requirements and the candidate being considered for the position, it assesses that candidate s ability to lead. The group focuses on questions and discussions that lead to balanced and complete information about a candidate s characteristics and behaviors. A skilled facilitator helps surface assumptions, push for evidence, refine perspectives, and reconcile differences in opinion so that a sophisticated, valid, and shared view of the candidate s potential to perform successfully in a role with increased scope and responsibility emerges. Unlike most assessment methods, GEM goes beyond a mere description of a candidate by predicting his or her future success and offering developmental suggestions. Specifically, the structured process focuses on three areas: 1. Description: review of an individual s leadership abilities across a broad spectrum of issues, such as integrity, handling pressure or a crisis, selecting people, strategic thinking, managing performance, interpersonal skills, and communication. 2. Prediction: discussion of how the candidate is likely to perform in a more responsible or different role. 3. Development: identification of critical short- and longterm development priorities as well as areas that have the potential to cause derailment or failure. GEM also enhances acceptance of leaders as they move into more senior positions. Because the evaluators often end up being the new leader s peers, they are invested in making the promotion work. Assessing Senior Executives 5

6 How Oliver Wyman Delta Can Help } For more than two decades, we have helped top leaders address the challenges of organizational change, collaborating with them to design the structures and processes that bring their strategies to life. In addition, we have years of experience with GEM and other leadership assessment methods. This puts us in a unique position to help clients create a successful executive selection and development strategy that is grounded in their business objectives. We understand that your executive assessment needs may be driven by a variety of organizational challenges. GEM is particularly valuable when you are: Determining promotability Moving senior leaders across functions and businesses Planning for succession, including selection of the new CEO Preparing leadership development plans When you need to fill a seniorlevel position, our consultants will serve as GEM facilitators. They will lead the group of 4 6 people, who are typically chosen from individuals who are senior to and have experience working with the person being evaluated. This could include the individual s manager, the manager s manager, and senior people who have worked directly with the candidate. Subordinates are excluded, although at times it is appropriate to include peers. The group should understand the potential demands of the position and have a vested interest in the success of the candidate. GEM is paper-free and requires neither preparation by the participants nor the completion of any forms. Once an organization and participants are familiar with the GEM process, most sessions can be conducted in an hour or less. The consultant/facilitator takes notes and compiles a report synthesizing the discussion for the ultimate decision-maker. Since we find that multiple assessment approaches often give a decision-maker the most complete picture, we can help you determine what data will best complement the information collected in GEM. This could include: 360 feedback from peers, subordinates, and/or customers via interviews and/ or questionnaires Candidate interviews focusing on work history, achievements, and preferences Standardized tests of personality, work style, aptitudes, etc. While we usually recommend that we conduct the first wave of GEM sessions, we can also train people from your organization to be facilitators. We ensure that your GEM facilitators are carefully chosen, certified, and give you the internal capability of running the process for the long term. We also recommend that our consultants return periodically to ensure that quality standards are being maintained. Building executive teams Identifying candidates with the highest potential to succeed 6 Oliver Wyman Delta

7 } As You Move Forward Whether or not you decide to work with Oliver Wyman Delta to select and develop your most senior leaders, we strongly urge you to keep these issues in mind: 1. All assessment methods, including GEM, are most effective when they are part of a leadership development strategy that is driven by a company s business needs. 2. Use objective information as a basis for predicting how well a candidate will perform in a new position. 3. Demonstrating that internal candidates have the best chance of filling highly sought-after positions will help you retain and develop successful leaders. 4. In order to build a great internal talent pool, leadership development must be on the CEO s agenda. It has to be a company-wide priority backed up by the necessary resources and continued commitment from the top not something that gets attention only when an important position opens up. 7

8 About Oliver Wyman Delta Oliver Wyman is an international management consulting firm that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, organizational change and transformation, and leadership development. Oliver Wyman Delta works with CEOs, executive teams, boards, and other senior executives, in the design and implementation of large scale, transformational change with impact across the enterprise. We help leaders increase their individual effectiveness, teams improve their collective performance, and organizations achieve their strategic objectives. We bring our deep understanding of the leadership challenges at the top of the organization and proven approaches to: Maximize CEO and senior executive effectiveness Enhance senior team performance Build an engaged and high-performing Board of Directors Manage executive talent and CEO succession Redesign organizational structures and processes Manage the dynamics of change Develop and implement new strategies Shape a culture consistent with your strategy Use communications to engage and mobilize Apply metrics to measure performance and impact To obtain further information about Oliver Wyman Delta, please contact us at deltainfo@oliverwyman.com or the telephone numbers below. Visit us online at United States Toll-free: Boston New York Philadelphia San Francisco Canada Montreal: Ottawa: Toronto: France Paris: Germany Frankfurt Munich Hamburg Spain Madrid: United Kingdom London: Bermuda Oliver Wyman. All rights reserved.