1. 1 Chapter Fifteen Leadership Development and Succession © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. 2 Learning Objectives  Explain how leaders develop through self-awareness and self-discipline.  Explain how leaders develop through education, experience, and mentoring.  Summarize the nature of leadership development programs.  Describe the nature of leadership succession.

3. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Self-Help Leadership Development  Self-awareness involves insightfully processing feedback about oneself to improve personal effectiveness  Levels of self-awareness Single-loop learning Double-loop learning  Self-discipline is mobilizing one’s efforts and energy to stay focused on attaining an important goal

4. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Figure 15-1 Single-Loop Learning Versus Double-Loop Learning

5. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Figure 15-2 Four Kinds of Lopsided Leaders

6. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Factors Contributing to Leadership Development  Education  Experience Challenging experiences Broad experience Pivotal life experiences  Mentoring Formal Informal

7. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Keys to Successful Mentoring Programs 1. HR and Senior Management set goals together 2. Program administrator uses care in pairing mentors with protégés, has reasonable expectations, and follows up with pairs frequently 3. Senior Management is firmly committed to the program

8. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Types of Leadership Development Programs  Feedback-Intensive Programs  Skill-Based Programs  Conceptual Knowledge and Awareness Programs  Personal Growth Programs  Socialization Programs  Action Learning Programs  Coaching and Psychotherapy

9. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 A model of leadership development that tightly links leadership development with management responsibilities at each level of the organization Leadership Pipeline

10. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Leadership Succession  An orderly process of identifying and grooming people to replace managers  Succession planning is linked to leadership development in two ways Being groomed as a successor is part of leadership development The process of choosing and fostering a successor is part of a manager’s own development

11. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Emotional Aspects of Leadership Succession  Decision is not detached, objective  Can be highly-emotional, esp. in family-owned businesses or when founder is replaced  Can affect turnover, productivity, and cause emotional reactions throughout the organization

12. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Developing a Pool of Successors  Evaluate the extent of an organization’s pending leadership shortage  Identify needed executive competencies  Identify high-potential individuals for possible inclusion in the pool  Establish an individually tailored developmental program for each potential candidate

13. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Developing a Pool of Successors (cont’d)  Select and place people into senior jobs based on their performance, experience, and potential  Continuously monitor the program and give it top management support

14. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Insider v Outsider  Insiders know the company, culture, people  Promoting insiders demonstrates opportunities for advancement to other workers  Political ties and unclear thinking can hinder an insider’s potential  Best solution is to groom insiders with an outsider perspective

15. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Challenges of Being a New Leader  Time management  Overcoming resentment  Building relationships quickly enough  Being realistic about the process  Becoming comfortable with unpopularity

16. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Summary  Leadership and management development are widely practiced in many firms  Leadership development may include self- development or an organizationally- supported leadership development program  Education, leadership experience, and mentoring are all contributors to leadership development  Organizationally-supported leadership development programs vary widely

17. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Summary (cont’d)  Leadership succession is linked to leadership development  Succession can have emotional outcomes  Research shows insiders with outside perspective make good leadership candidates  First time leaders must face inevitable challenges in the role