The Leadership & Management Framework

Size: px
Start display at page:

Download "The Leadership & Management Framework"

Transcription

1 The Leadership & Management Framework Helping to improve leadership one organisation at a time

2

3 Content Introduction....1 The Framework provides a basis for:....2 Evaluation... Development... Assessment... Strategy... Benchmarking... Principle 1 Strategic Positioning...3 Principle 2 Governance...4 Principle 3 Leadership Principles...5 Principle 4 Leadership Behaviours...6 Principle 5 People Engagement...7 Principle 6 People Development...8 Principle 7 Recruitment and Selection...9 Principle 8 Financial & Commercial Awareness...10 Principle 9 - Succession Planning...11 Principle 10 - Anticipating Future Business and Leadership Needs...12 Ways to Achieve the Leadership & Management Standard...13 Glossary of Terms & Guidance Notes...15 Next Steps...18

4 Introduction In a report by the British Government entitled, Leadership and Management The Key to Sustainable Growth, it was identified that 43% of managers rate their line manager as ineffective. World-wide research repeatedly shows that leadership is the number one concern in deciding the effectiveness of an organisation. This surpasses financial awareness, team working and technology, although innovation and creativity do come a relatively close second. The cost to organisations of ineffective leadership and management is estimated in the billions per year. Kasper RØrsted, CEO of Henkel, says, Our global leadership team is aware that they will be assessed on the basis of their leadership conduct. We do not allow anyone to hide behind good business results but fail their leadership responsibility In many organisations, the biggest stumbling block to improved business performance and profitability is the way leaders and managers approach their responsibilities. Getting results through people is the essence of what leadership is about. The Leadership and Management Framework and Standard is designed to help organisations evaluate their approach into how leadership and management drives their business. The electric light did not come from the continuous improvement of candles. - Oren Harari This framework uses 10 key Principles to help identify and develop leadership and management ability for the present and the future. 1

5 The Framework provides a basis for: Evaluation An organisation can carry out a self-assessment against the Standard as a method of evaluating their current position in each of the ten areas. This will immediately identify which areas are strong and which areas would benefit from development. Development The Leadership and Management Standard provides a structure by which to identify and provide relevant training and development for managers at various levels. The content of the Standard, provides a basis for training, coaching or mentoring activities. The ten principles can also be an approach to performance reviews to keep leaders and managers focused and measure progress. Assessment The ten principles provide the basis by which an organisation can be assessed by an external Assessor, who brings a fresh set of eyes to the organisation. Certain principles are core and provide the foundation for good leadership and management. To gain recognition as Commited to Leadership and Management, an organisation will need to be assessed against five of the ten principles. Three of those are mandatory and two are optional based on your current organisational needs. The mandatory Principles are: Strategic Positioning Leadership Principles People Engagement To achieve Accreditation, an organisation will have been assessed against all ten principles and achieved the requirements of the principles. All Recognised and Accredited organisations will need to be assessed every three years to maintain their status. However, continuous improvement checks are carried out each year in the form of an on-line review and/or discussion with their Assessor, of progress made and plans for further development. Strategy The delivery of any strategy will require good leadership and management driving it, as well as people engaged in the execution. This framework provides the opportunity to ensure that the organisation has considered what is needed from their managers at all levels when communicating and delivering their service. Benchmarking As organisations adopt and use the Leadership and Management Standard, it becomes possible to use other organisations as a benchmark of good practice. Every organisation is looking for effective measures that help them drive their organisation forward. Through assessment and achievement, organisations can establish areas for improvement and how they compare with other organisations in the market place. Those that achieve accreditation will have access to information that will help them in this process. 2

6 Principle 1 Strategic Positioning What does this mean? The aspiration, approach and culture of the organisation is defined and understood by leaders, managers and people. Why is this important? An organisation needs direction and purpose. Therefore, your organisation will have considered what it aspires to achieve, what approach or business model it needs, and what culture is required to drive success. What this means in practice? Senior Leaders 1. Senior leaders have defined the aspirations and purpose of the organisation. 2. Senior leaders have defined the organisations approach to the market and the culture needed to deliver on their aspirations. 3. Senior leaders can explain how they ensure the culture and associated values are correct for the organisation and continue to drive high performance. 4. Senior leaders can explain the evaluation process for measuring and improving the performance of the organisation. Leaders 5. Leaders and managers understand the aspirations of the organisation and why the defined approach to market is important. 6. Leaders and managers can explain why the chosen culture best fits the organisation and they can provide examples of how it drives performance. People 7. People can confirm that they understand the aspiration, approach to market and culture, and the benefits that these bring to the organisation (at a level appropriate to their role). 3

7 Principle 2 Governance What does this mean? Leaders and Managers practice the principles of Good Governance and understand the assurance this provides for investors, customers, owners, suppliers, contractors and employees. Why is this important? The Board has clearly defined the legal and ethical requirements needed to meet its strategic aims, and these form the basis of Good Governance. The roles of the Shareholders, the Board, the CEO and the Operational Managers, are clearly defined and understood by all parties. Leaders and Managers can show how Governance guides decisions to ensure sustainable compliance, and that leaders and managers aspire to the practice of Good Governance. People recognise what good Governance means in their organisation and how it is being practised. What this means in practice? Senior Leaders 1. The roles and responsibilities of the Shareholders, the Board, the CEO, and the Operational Managers are clearly defined and do not overlap. 2. The Board oversees the strategic direction of the organisation and the values by which it operates, and defines what Good Governance means in line with the strategy it seeks to deliver. 3. The senior leaders involved in the implementation can differentiate between strategic aims, organisation planning, and operational practice, and ensure these are actioned effectively. 4. Senior leaders can show they have identified the areas of the organisation that require legal and ethical parameters, and the plans, processes or principles are in place. 5. Senior leaders regularly review governance arrangements to ensure that the evidence shows they are effective, and report progress to the legally accountable people, organisations and internal or external stakeholders. 6. Senior leaders show they consider and respond appropriately to feedback and guidance provided. Leaders 7. Leaders and managers can explain what Good Governance means in their organisation and how this impacts on their role. 8. Leaders and managers demonstrate how their leadership and management practices align with this Good Governance. People 9. People can describe and provide examples of Good Governance decision making at all levels of the organisation. 10. People express confidence in the way that the organisation is governed and can give examples of how it works effectively. 4

8 Principle 3 Leadership Principles What does this mean? The required approach to leadership and management has been defined, communicated, and understood. Why is this important? To achieve aspirations that are supported by a consistent culture, your organisation will have considered what approach to leadership and management is required at every level. This includes the structure, roles and responsibilities of leaders and managers and the skills, knowledge and behaviours that are needed to deliver results while following the principles of responsible leadership. What this means in practice? Senior Leaders 1. Senior leaders have defined the structure needed and how this will drive and improve the organisation s performance, support its aspirations, approach to market, working practices, and responsible leadership. 2. Senior leaders define the requirements (knowledge, skills and behaviours including coaching and mentoring) that leaders and managers need to contribute to the organisations aspirations and performance. Leaders 3. Leaders and managers understand and can describe the organisations leadership and management requirements, including the reporting structure. 4. Leaders and managers understand and can describe how effective leadership and management will drive and improve the performance of the organisation, teams and individuals and how progress will be measured. People 5. People can confirm that they understand the defined structure and approach to leadership and management and how this contributes to the organisations performance, its aspiration, approach to market and culture. 5

9 Principle 4 Leadership Behaviours What does this mean? Leaders and Managers have the understanding, qualities and skills to create a workplace that engages people and motivates them to deliver exceptional performance. Why is this important? Having defined what you expect from your leaders and managers (Principle 3), it is important to carefully review your present leaders and managers against the approach that you defined and support their development as required. What this means in practice? Senior Leaders 1. Senior leaders can explain how they set an example that demonstrates and supports the approach that has been determined by the organisation s defined leadership principles. 2. Senior leaders can provide examples of how they are developing leaders and managers across the organisation in line with the defined leadership requirements. Leaders 3. Leaders and managers can give examples of their practical use of the defined structure and approach to leadership and management that the organisation has chosen. 4. Leaders and managers can describe how they coach and mentor other managers and their people so that the defined approach to leadership and management becomes embedded throughout the organisation. People 5. People confirm that the defined structure and approach to leadership and management generates commitment, enables and encourages them to be they best they can be in the interests of the success of the organisation. 6. People can explain (at a level appropriate to their role) how effective leadership and management supports them in their role and the performance of their team and the organisation. 7. People can confirm that coaching and mentoring (formal or informal) is available to help them improve their performance and add value. 6

10 Principle 5 People Engagement What does this mean? Leaders and Managers are effective in engaging people to improve organisation performance. Why is this important? Engendering commitment and encouraging improved performance from your people is one of the essential foundations upon which great leadership is built. Your leaders and managers create the type of environment that involves people and inspires them to deliver exceptional performance through creativity and engagement. Leaders and managers have the structures in place to ensure people can be engaged whilst ensuring the required performance is sustained. What this means in practice? Senior Leaders 1. Senior leaders define what strategy or approach they have taken to develop a culture of engagement and creativity in the organisation. 2. Senior leaders define how people are encouraged to become involved and take ownership for their contribution and engage with the organisation effectively. 3. Senior leaders seek continuous improvement, innovation and creativity that contributes to the engagement of people in the delivery of the organisations performance, its aspiration, approach to market and culture. 4. Senior leaders measure the effectiveness of their people engagement at all levels. Leaders 5. Leaders and managers can explain the strategy and/or approach the organisation has to developing a culture of engagement and creativity, what this requires of them and how it has been applied. 6. Leaders and managers can give examples of the benefits gained from the effective use of the defined strategy or approach to people engagement and creativity. People 7. People can describe the organisations approach to engagement and creativity and confirm this enables them to take ownership of their role, collaborate with others and engage with the organisation as a whole. 7

11 Principle 6 People Development What does this mean? Leaders and Managers are effective in developing their people to improve organisation performance. Why is this important? Helping people learn and develop while at work is a core leadership and management attribute. Leaders and managers understand how people learn and take every opportunity to support and encourage people to grow and develop the skills, knowledge and behaviours needed. What this means in practice? Senior Leaders 1. Senior leaders define the learning and development strategy for the organisation to ensure people at all levels are given the support they need to develop the appropriate knowledge, skills and behaviours required to contribute to the organisation s aspirations, approach to market and culture. Leaders 2. Leaders and managers identify the learning and development needs at organisation, team and individual levels. The resources and plans to implement the requirements and precise outcome measurements are all defined and in place. 3. Leaders and managers have an understanding of how people learn and the mix of learning opportunities available. 4. Leaders and managers can describe the overall investment made by the organisation in the development of people. 5. Leaders and managers can explain how the outcome measurements set for their learning and development have demonstrated improvements in performance of the organisation and contributed to its aspiration, approach to market and culture. People 6. People can confirm that they are provided with the support they need to develop the knowledge, skills and behaviours required for the organisation to be successful; and can give examples of how they have developed and grown within their role. 7. People can give examples of how the outcome measurements set for their learning and development have demonstrated improvements in their performance and the performance of the team and the organisation. 8

12 Principle 7 Recruitment and Selection What does this mean? Recruitment and selection strategies are efficient and effective and meet the needs of the organisation. Why is this important? If your organisation is going to be successful in bringing value to the market, it will have considered the knowledge, skills, attitudes and talents that will be needed from future employees. With this in mind, your leaders and managers follow transparent processes for the recruitment, selection and progression of people that fit the aspirations and culture of the organisation at all levels. What this means in practice? Senior Leaders 1. Senior leaders define the recruitment and selection strategy of the organisation and how this contributes to the organisation s aspiration, approach to market and culture. Leaders 2. Leaders and managers understand and can describe the recruitment and selection approach and process, their role within it, and how this contributes to the organisation s aspirations, approach to market and culture. 3. Leaders and managers actively undertake the recruitment and selection of people (including leaders and managers) with the values and behaviours that match those defined by the organisation. People 4. People believe that the recruitment and selection approach and process is transparent and fair. 5. People confirm that the approach and process results in the recruitment of people with the values and behaviours that contribute to the achievement of the organisation s aspirations, approach to market, and culture. 9

13 Principle 8 Financial & Commercial Awareness What does this mean? Leaders and Managers are financially literate and competent, and ensure people understand the implications of their decisions. Why is this important? Financial astuteness is critical to an organisations success. Your organisation places emphasis on making sure that its leaders and managers have a sound understanding of corporate finance and how financial situations impact on an organisation. What this means in practice? Senior Leaders 1. Senior leaders define what depth of commercial acumen and understanding of organisation finance is required by people at all levels within the organisation. 2. Senior leaders make sure that they and their people have a sound understanding of the organisation s finance and a commercial aptitude (relevant to their role) through education, training, and work experience. 3. Senior leaders understand the importance of taking quality decisions, which are moderated and informed by financial implications and situations that the organisation encounters. Leaders 4. Leaders and managers can explain the commercial aptitude and relevant depth of financial knowledge that relates to their role, and how this supports them to perform their roles effectively. 5. Leaders and managers describe and give examples of how they use appropriate financial considerations within their management practice and decision making. People 6. People give reasons as to why they have confidence in the financial acumen of their leaders and managers. 7. People explain how they are encouraged to apply commercial acumen when making decisions within their job. 10

14 Principle 9 - Succession Planning What does this mean? There is clear succession planning at all levels of the organisation. Why is this important? For your organisation to sustain its performance, it has to consider and plan for every eventuality and the future. It is critical to ensure that you are not solely dependent on an individual or group of individuals and that succession and progression plans are both in place. These are designed to make the most of talents / abilities within your organisation and also identify how you can harness any relevant external sources of talent. What this means in practice? Senior Leaders 1. Senior leaders have defined the organisation s strategy to succession at all levels to assure continuity and improvement of the organisation s performance. 2. Senior leaders define how people are given the opportunity to make the most of their abilities within the organisation, and where appropriate contribute to the succession plans. Leaders 3. Leaders and managers can describe how the organisation s approach to succession planning impacts on the performance discussions held with their people. 4. Leaders and managers can confirm that they provide people with the information, advice and guidance that ultimately supports them to plan and develop. People 5. People can confirm that they understand the organisation s approach to succession planning and that they receive information, advice and guidance that helps them plan their careers. 11

15 Principle 10 - Anticipating Future Business and Leadership Needs What does this mean? The organisation challenges its approach to leadership and management to anticipate future organisation needs. Why is this important? Measurement is essential to monitoring progress and identifying areas for improvement. Your organisation uses a blend of effective measurements and feedback channels to enable it to monitor the performance of its leaders and managers, and then puts plans in place for continuous improvement activity. Your aspirations, strategy, culture and approach to leadership and management evolve as a result. What this means in practice? Senior Leaders 1. Senior leaders define how the organisation evaluates the future prospects of the organisation and commercial trends using internal and external forms of comparative review. 2. Senior leaders define methods that are used to understand the organisation s leadership and management needs in line with the future prospects and how they will review and / or benchmark the quality of their leadership and management. 3. Senior leaders can give examples of how creativity and innovation are used to continually respond to changes to the internal and external organisation environment. 4. Senior leaders are able to explain how the Board reviews corporate governance and the steps in place to make adjustments where necessary. Leaders 5. Leaders and managers are aware of the commercial trends that require the organisation to adapt and the impact that may have on their leadership and management approach. 6. Leaders and managers can explain how they review and evaluate their own capabilities as a leader and use this to inform their own development to deliver on the future aspirations of the organisation. 7. Leaders and managers can explain how they review and evaluate people leadership, management and development and use this learning to shape the future. 12

16 Achieving the Leadership & Management Standard There are a number of unique characteristics to the Leadership and Management Standard. This is a Leadership and Management Standard and not a People Standard. It is probably the only Standard aimed exclusively at Leadership and Management. It covers elements such as Governance, Finance and Succession Planning. The Leadership and Management Standard is designed to challenge an organisation and help them focus on what is important to them about leadership and management. Principle 10, which is aimed at the future and not the present. Most Standards assess your current position and practices. Principle 10 looks at how the organisation is gearing up for the future requirements of their leaders and managers. The Standard can be attached onto any other Standard an organisation is being assessed against, so as to enhance the benefits of their existing Standard. An organisation does not have to achieve all the elements of the Standard to be recognised. An organisation can be awarded a Commitment to Leadership and Management by achieving the three mandatory Principles required and then two optional Principles relevant to their organisation. To achieve full accreditation against the Leadership and Management Standard To achieve the full Standard, an organisation needs to be assessed against all ten of the Principles that make up the Standard. The accreditation lasts for three years, at which stage an organisation will need to be reassessed. At the end of the assessment, the organisation will gain feedback that will help it identify areas for improvement. Every twelve months an organisation will discuss progress with their Assessor, and/or participate in an on line assessment, as part of the continuous improvement the Standard is designed to encourage. Once an organisation has achieved the Standard, it is possible for an organisation to split the assessment up over the three years and be assessed against a third of the Standard each year. We aim to be flexible to meet the customers needs, while at the same time not compromising on the quality of the assessment process. 13

17 To be recognised as Committed to Excellence in Leadership and Management To achieve Committed to Excellence in Leadership and Management an organisation needs to achieve three mandatory Principles and two optional Principles. The three mandatory Principles: Principle 1 Strategic Positioning The aspiration, approach and culture of your organisation is defined and understood by leaders, managers and people. Principle 3 Leadership Principles Your organisation s approach to leadership and management has been defined. Principle 5 People Engagement Leaders and managers are effective in engaging and developing people to improve organisation performance. The two optional Principles are any of the remaining seven Principles the organisation chooses which are relevant to their organisation. As an attachment to an Existing Standard If an organisation is currently being assessed against a Standard (for example Customer Service Excellence) they can add the three mandatory principles to their assessment, and gain extra recognition and benefit. By using this approach, an organisation can add significant value to their existing assessment, save money and time and achieve further recognition. The requirement would be that they are assessed against the three mandatory Principles: 1. Principle One; Strategic Positioning, 2. Principle Three; Leadership Principles, 3. Principle Five; People Engagement. The organisation would then achieve a Leadership & Management recognised certification. 14

18 Glossary of Terms & Guidance Notes This defines how the terms below are used in relation to the Framework and Standard Leadership and Management The terms are often used interchangeably, but they are two distinct and complementary processes essential to all organisations. Leadership is the capability to influence people, by means of personal attributes and / or behaviours, to achieve a common goal. A leader does not necessarily have the title. Management is a set of processes that keep a complicated system of people and technology running smoothly and efficiently. Aspiration A description of what an organisation wants to achieve. These aspirations can be specific in terms of time etc, but can equally state a direction of travel. The aspirations, in turn, serve as a guide or broad understanding of the direction of travel for all those involved with the organisation. This is the organisations philosophy about who it is and what it offers. A typical mission statement would not necessarily suffice. The aspiration set is fully understood by people at all levels and helps define the purpose for their existence and offering to the market. Approach to Market Based on a target market, an organisation is clear about the needs of the market and the style of approach they want their organisation to take to enable its product or service to reach customers within the sector in which they operate. An organisation may well be providing the same services as other competitors, but the approach to market defines how they differ to others in its approach that is meaningful to their target market. Business Planning An organisation planning process sets out what it plans to achieve over a set period of time with objectives or outcomes that can be measured. An organisation will be able to explain how it goes about planning, and consideration given to who is involved in its development and review. 15

19 Coaching, Mentoring A method of assisting the development of people in line with the needs of an organisation. It is about the practical application of learning and development in line with the individual s and the organisation s needs. The organisation needs to have a clear definition of what it means by the terms coaching and mentoring and how it will be used across the organisation. To be effective in developing others, leaders must be aware of the example they set to others by their own behaviours and the way they tolerate the behaviours of others. Finance The approach of an organisation to the management of revenues, and the conduct or transaction of matters relating to money. This is about individuals understanding the financial implications of the way the organisation operates, how what they do on a day-to-day basis contributes to managing finance effectively and efficiently to achieve the best outcomes all at a level relevant to their role. Commercial Awareness Understanding the wider implications of developments relating to the organisation, the market the organisation operates in and in the commercial world. The organisation is aware of trends that may impact its organisation and how the way it operates may impact upon its customers, competitors and suppliers, and the implications of decisions on these areas. Culture The organisation s accepted norms in terms of behaviour and/or etiquette. An organisation clearly knows what is acceptable behaviour and what is not acceptable behaviour, these are uncompromising for the way the organisation operates. Senior leaders and managers have articulated this in a way that can be understood at all levels. Governance The way an organisation sets out the legal and ethical rules, norms, regulations and actions required for making decisions and acting in or on behalf of the organisation to ensure sustainable success. It requires that the defined legal and ethical requirements are structured, sustained, regulated and show who is accountable. Governance determines who has power, who makes decisions, how other players make their voice heard and how account is rendered. Institute of Governance. An organisation will have clearly defined what Governance means to its organisation based on the operating structure. It is bottom up as well as top down in terms of ensuring that good Governance is a way of ensuring the organisation has the necessary checks and balances to remain ethical as well as legal. 16

20 Learning & Development Means by which individuals and teams gain knowledge and skills or adapts behaviours that help them to progress their own capabilities. An organisation will show that its approach to learning and development is in line with the organisations objectives or aspirations, provides value for money and delivered in a manner that meets the needs of the individual and the organisation. Outcome Measures An outcome is a measurable and observable change in individuals, groups, organisations, systems, or communities. Outcome measurement is a systematic way to assess the extent to which an activity / programme has achieved its intended results. An organisation will show how it goes about defining outcomes and measurements in a way that is both meaningful to the organisation as well as engaging to the individuals and teams that are measured. Quality of Decisions Decisions made based on considered and objective judgement, whilst taking into account other influences and factual analysis. Responsible Leadership Someone that is answerable or accountable for something within one s power, control or management and capable of being held to account for it. Responsible leadership is about making business decisions that takes into account all stakeholders, such as employees, clients, suppliers, shareholders, the environment, and the community and the impact on the future. Understand what you mean... An aspiration defines the philosophy the organisation takes towards positioning itself in the world. An approach to market sets out the manner an organisation will approach the market. A strategic aim sets out the method or positioning to achieve an outcome. A business plan will set out the steps needed to get there. An operational plan will set out the systems and processes that need to be carried out. 17

21 Next Steps What do I need to do next? Talk to a human being: Send us a quick note and get a call back: info@excellencesquared.com

22 e, l p em o pe th d nd a le ehi To k b l a w If you are nothing but profit-conscious, you cannot see the opportunities ahead. - Akio Morita People are like flowing water, obstruct them and they stagnate, open channels for them and they move and stay clear. 19

23

24 All Rights Reserved