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Three top HR and talent development experts from Continental Automotive Systems, Vail Resorts Management Company, and ArvinMeritor share their insights on: Leadership T raining: Three Perspectives on Development Methods That Work Brent Adams VP, Human Resources — NAFTA Continental Automotive Systems Steve Fitzgerald Senior Vice President, Human Resources Vail Resorts Management Company Robert Ostrov Senior Vice President, Human Resources, ArvinMeritor, Inc. A robust talent pipeline is key to long-term competitiveness, and one of HR’s most essential tasks as the workforce’s demography shifts. Leadership development is a companywide priority, demanding robust processes implemented in alignment and cooperation with top busi- ness and HR leaders. Leadership training, especially when targeted at mid- dle managers, drives alignment with company strategic goals, shares accountability and vision, and is key for tapping into unutilized employee potential. It must be thoroughly targeted arou nd the company’s strategic direction and future needs, and be focused on creating a more agile and productive workforce. When implemented correctly and in concert with a culture of development, leadership training can be an extremely powerful weapon in the battle for talent. in partnership with Aspatore Books Exec Blueprints www.execblueprints.com  Action Points I. Focusing on the Middle Leadership training has the greatest value when it’s focused on the middle of the company. II. The Bottom Line Leadership training can have the most tangible impact in the area of performance management. III. Must-Haves for Creating a Culture of Development A culture of development demands CEO involvement, thorough documentation and accountability, and an emphasis on people. IV . The Golden Rules for Effective Leadership Training Target your training. Implement a thorough succession planning process. Share the broad view.  V . Essential Take-Aways Any training or development must align with competencies that will drive the company into new markets and profitability. Company leaders must align with HR to create a culture of development that permeates the organization. Contents  About the Authors . . . . . . . . . . . . . . . . . . . . p.2 Brent Adams . . . . . . . . . . . . . . . . . . . . . . . . . p.3 Steve Fitzgerald . . . . . . . . . . . . . . . . . . . . . . p.6 Robert Ostrov . . . . . . . . . . . . . . . . . . . . . . . . p.9 Ideas to Build Upon & Action Points . . . p.12 Copyright 2008 Books24x7®. All rights reserved. Reproduction in whole or part is prohibited without the prior written permission of the publisher. This ExecBlueprints™ document was published as part of a subscription based service. ExecBlueprints, a Referenceware® collection from Books24x7, provides concise, easy to absorb, practical information to help organizations address pressing strategic issues. For more information about ExecBlueprints, please visit www.execblueprints.com.

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Three top HR and talent development experts from ConAutomotive Systems, Vail Resorts Management CompaArvinMeritor share their insights on:

Leadership TrainingThree Perspectives oDevelopment Metho

That WorkBrent Adams

VP, Human Resources — NAFTAContinental Automotive Systems

Steve Fitzgerald Senior Vice President, Human Resources

Vail Resorts Management Company

Robert OstrovSenior Vice President, Human Resources, ArvinMeritor, Inc.

Arobust talent pipeline is key to long-term competitiveness, and one

of HR’s most essential tasks as the workforce’s demography shifts.Leadership development is a companywide priority, demandingrobust processes implemented in alignment and cooperation with top busi-ness and HR leaders. Leadership training, especially when targeted at mid-dle managers, drives alignment with company strategic goals, sharesaccountability and vision, and is key for tapping into unutilized employeepotential. It must be thoroughly targeted around the company’s strategicdirection and future needs, and be focused on creating a more agile andproductive workforce. When implemented correctly and in concert with aculture of development, leadership training can be an extremely powerfulweapon in the battle for talent. ■

in partnership with Aspatore Books

Exec Blueprints

www.execblueprints.com

Action Points

I. Focusing on the MiddleLeadership training has the greatestvalue when it’s focused on the middleof the company.

II. The Bottom LineLeadership training can have the mosttangible impact in the area ofperformance management.

III. Must-Haves for Creating a Cultureof DevelopmentA culture of development demands CEOinvolvement, thorough documentationand accountability, and an emphasis onpeople.

IV. The Golden Rules for EffectiveLeadership TrainingTarget your training. Implement athorough succession planning process.Share the broad view.

V. Essential Take-AwaysAny training or development must alignwith competencies that will drive thecompany into new markets andprofitability. Company leaders must alignwith HR to create a culture ofdevelopment that permeates theorganization.

Contents

About the Authors . . . . . . . . . . . . . . . . . . . . p.2Brent Adams . . . . . . . . . . . . . . . . . . . . . . . . . p.3Steve Fitzgerald . . . . . . . . . . . . . . . . . . . . . . p.6Robert Ostrov . . . . . . . . . . . . . . . . . . . . . . . . p.9Ideas to Build Upon & Action Points . . . p.12

Copyright 2008 Books24x7®. All rights reserved. Reproduction in whole or part is prohibited without the prior written permission of the publisher. This ExecBlueprints™ document was published as part of a sua Referenceware® collection from Books24x7, provides concise, easy to absorb, practical information to help organizations address pressing strategic issues. For more information about ExecBlueprints, ple

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© Books24x7, 2008 About the Authors ExecBlueprints 2

About the Authors

Brent Adams is vice president of human resources at ContinentalAutomotive Systems, N.A. He

joined the company in March of 2004and is responsible for overseeing thedevelopment and implementation of human resources initiatives in the UnitedStates and Mexico.

Mr. Adams started his career in 1986with General Dynamics. As an HR gen-eralist, he developed a new salary struc-ture for exempt employees. In 1996, he

accepted a position with Allied Signal asa human resources manager. There, heimplemented an HR strategic plan forSBU headquarters affecting engineering,marketing, finance, quality, and infor-mation systems.

In 1998, Mr. Adams joined EatonCorporation as division human resourcemanager, responsible for human re-sources initiatives impacting operationsin North America, Europe, and Asia. In2000, he became human resources

director at Axcelis Technologies (formerlyEaton Semiconductor), responsible foremployee initiatives worldwide.

Mr. Adams earned a bachelor’s degreein human resources from Brigham YoungUniversity and a master’s in businessadministration from San Diego StateUniversity.

Brent AdamsVice President, Human Resources — NAFTA , Continental Automotive Systems

☛ Read Brent’s insights on Page 3

Steve Fitzgerald was appointed seniorvice president of human resources in

June of 2006. He formerly served asa human resources executive atStorageTek and Sun Microsystems, twocompanies with strong Colorado ties.

At StorageTek, he held several seniorpositions within the HR area. He playedan instrumental role in building the HRfunction, which was recognized for itsexcellence by publications such asFortune and HR Executive.

Mr. Fitzgerald was also deeplyinvolved in the acquisition of StorageTekby Sun, and led substantial portions of theintegration of the two companies. Uponthe close of that acquisition, he led Sun’sglobal talent management organization,which included the recruiting, succes-sion, leadership development, and diver-sity functions.

Prior to joining StorageTek, Mr.Fitzgerald spent 14 years in thehuman resource and corporate strategy

organizations of Ford Motor Companyand Ford Motor Credit. He is an award-winning potter and sculptor, and lives inColorado with his wife Diana and sonsSean and Ryan.

Steve Fitzgerald Senior Vice President, Human Resources , Vail Resorts Management Company

☛ Read Steve’s insights on Page 6

R obert Ostrov is currently the sen-ior vice president of humanresources for ArvinMeritor, Inc.,

a Fortune 200 global industrial company.As the chief HR officer, he has overallresponsibility for the company’s 30,000employees working in over 150 plants in25 countries around the world.

Prior to assuming his current role, Mr.Ostrov was the chief HR officer for a

Fortune 300 global wholesale logisticscompany with over 100,000 employeesand operations in 65 countries around theglobe.

During his 35-year career in humanresources, he has also worked for Fortune500 companies GE and FedEx.

His academic credentials include a B.S.from the Cornell University School of Industrial and Labor Relations, an

M.B.A. in finance and strategic planning,and a J.D. with an emphasis on labor andemployment law. He is a member of theIllinois Bar.

Robert Ostrov Senior Vice President, Human Resources , ArvinMeritor, Inc.

☛ Read Robert’s insights on Page 9

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Primary Responsibility The primary responsibility for lead-ership training at the companyfalls on the CEO. The top person

must believe that if he is not grow-ing his team and helping it stay cur-rent, the company is going to fallbehind the competition and he isnot going to have the bench strengthto lead the growth that he antici-pates within the business. HR is abusiness partner that provides theCEO with the necessary tool kit tomeasure executive development.

Tangible Impact Leadership training can have themost tangible impact in the area of performance management. If aleader has the capability of provid-ing a clear vision, an aligned set of goals, a fair and thorough methodof evaluating performance, and away to monetarily recognize per-formance, he will be able to maxi-mize the capability of his humanresources.

Many leaders find managingperformance to be the most difficultaspect of their job. It requirestough messages and they don’talways feel that they have thecapability to deal with the emotionsthat are associated with the process.HR can help develop the leader’sability to manage these high-maintenance situations.

Leadership Training BreakdownAt the very top level, 5 percent of our training is dedicated to execu-tive development. Because we aretrying to build our succession planand bench strength, 20 percent of the overall development pie goesto the junior executive. Middle

management receives 40 percent of our training and developmentefforts and the remaining 35 percentgoes to non-management or entry-level training.

In the automotive industry, weare seeing some significant globalcompetition. The U.S.-based auto-motive companies are losing mar-ket share, so suppliers within thatindustry are going through toughtimes in 2008. Therefore, spend-ing on training and developmentwill likely be reduced. Even in this

environment, HR can provide

© Books24x7, 2008 Brent Adams ExecBlueprints 3

Brent AdamsVice President, Human Resources — NAFTA

Continental Automotive Systems

“There shouldn’t be any training that isn’t specifically linked to a weakness.”

• Oversees development and imple-mentation of company HR initiativesin the U.S. and Mexico

• Over 20 years of HR experience

• Experience at General Dynamics,Allied Signal, Eaton Corporation, and others

Mr. Adams can be e-mailed at [email protected]

Brent AdamsVice President, Human Resources — NAFTA , Continental Automotive Systems

Leadership training can have the most tangible impact in the

area of performancemanagement.Brent Adams

Vice President,Human Resources — NAFTA

Continental Automotive Systems

Training Investment Breakdown5% Executive Development

20%Junior

Executives

40%Middle

Management

40%Non-Management

or Entry-LevelTraining

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low-cost solutions to trainingneeds. These solutions are oftendeveloped in-house. HR can’t beashamed to use off-the-shelf prod-ucts that fit the company’s needs.

ExampleWhen I was at General Dynamics,we had a workforce that was veryspecialized. Employees could onlydo a certain task. Even the collec-tive bargaining agreement indi-cated that they could only performa certain job responsibility with noflexibility.

We implemented work cells anda new job classification structurethat allowed employees to performmultiple skills within each work

cell. We created a new structure thatwould compensate employees asthey learned more and more skillswithin each cell. We presented andnegotiated the plan with the unionand implemented it on the shopfloor.

We were able to reduce scrap,increase quality, and have betterthroughput. Our cycle times were

faster and we were able to increaseemployee satisfaction. People weren’tjust performing routine tasks; theycould do multiple things that createda better work environment.

Identifying Candidatesfor Training We identify candidates for leader-ship training through our per-formance appraisal process. Welook back and determine someone’sperformance, then we look forwardand determine whether they havethe potential for the next levelor the next two levels. Dependingon how they were evaluated to ourcompetencies, we target certaindevelopment programs to addresscompetency needs.

Elements of Successful Leadership Training Successful leadership training istargeted; it is a direct stride at a spe-cific competency with a specific pro-gram. It needs to be directlyapplicable and tailored to anemployee or executive. There has tobe accountability on the employees’part. They should own their devel-opment and find a way to fulfilltheir training and developmentplan.

Training activity should be doc-umented, whether it is going to anexecutive seminar at a reputableuniversity, reading a book, or being

© Books24x7, 2008 Brent Adams ExecBlueprints 4

Brent AdamsVice President, Human Resources — NAFTA , Continental Automotive Systems (continued

Successful leadership training is targeted; it is adirect stride at a specific competency with aspecific program.

Brent AdamsVice President, Human Resources — NAFTAContinental Automotive Systems

Customizing Your Leadership Training

Complete thorough performance appraisal.

Look at each candidate’s past performance.

Look at each candidate’s future potential.

Tailor leadership training to the candidate.

Target individual needs.

Transfer accountability and ownership to the employee.

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mentored or coached. There needsto be a return on report. I ask ourexecutives to write an executivesummary to be turned in at the endof the training experience. It simplystates what they learned and howthey can apply it to their currentresponsibilities. They have to pres-ent the report to their boss and tome. There is a dialogue about howthey can take those “aha” momentsand apply them to their job. ■

© Books24x7, 2008 Brent Adams ExecBlueprints 5

Brent AdamsVice President, Human Resources — NAFTA , Continental Automotive Systems (continued

Expert Advice

Any training or development needs to align to a set of competencies that are deter-mined to be successful within the business culture. HR will provide a list of train-

ing and development opportunities that would enhance these competencies andhelp develop the high performance culture that the company is trying to achieve.I assess the impact of leadership training on the bottom line by looking at vol-

untary attrition, profit margins, and the ability to avoid draconian measures like areduction in force. If you are proactively managing your headcount and have a goodforecasting system, you should never have to go through a layoff. I look at employeesatisfaction surveys to see how satisfied employees are in terms of the work envi-ronment and whether they would recommend the company to a friend.

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The Roles of Internal and External Groups inLeadership Training The HR function has primaryresponsibility for ensuring that lead-ership development occurs. Otherpeople need to be deeply involved,but there’s a huge difference betweenresponsibility and involvement.

When it comes to leadershiptraining, it’s impossible to do wellunless the leadership of the com-pany is intimately involved. Thisdoesn’t mean supporting training bysending people to classes; it means

helping to teach them. Involvement

outside the classroom means beingwilling to fill positions with some-one who may have a lot of poten-tial, but hasn’t worked in aparticular area yet. It may be wiseto move that person into a generalmanager role. You need to haveleaders who are willing to movearound because they have their eyeon the bigger prize.

There are innumerable opportu-nities for people outside the com-pany to help you as you developleaders, whether through assistingwith the curriculum that you use orhelping with the approaches youuse. Sometimes it’s hard to separatethe wheat from the chaff when itcomes to quality, but there’s a lot of

external support that can beinvolved. Depending on the subject,there are subject matter expertsinside the company who can helpyou impart information to thosewho are lacking it.

The Middle Man: WhereLeadership Training Hasthe Most Impact Leadership training has a substan-tial, tangible impact on the mostsenior positions in the company.The benefit of teaching people howto lead and giving them the oppor-

tunity to learn on the job is greatest

in the middle of the organization.One thing that a senior personquickly comes to appreciate is thatwhile they may have a lot of opin-ions and ideas, only by virtue of their ability to work through themiddle tier of the organization canthey be successful.

There is a huge value in having

skilled middle managers with a highlevel of leadership acumen who canappreciate the connection betweentheir initiatives and the advance-ment of the entire enterprise. Theycan see beyond the impact to theirjob or their team. When managershave the ability to impart that visionto their group of direct reports,change goes much more smoothly.

Leadership Training Outside the ClassroomWhen a person moves from man-aging himself or herself intomanaging others, there’s a wholenew set of skills. In our company,we spend roughly a third of ourtime on those skills.

Some people go from managinga team that reports to them to help-ing a group of managers managetheir teams. Very little that they’velearned before other than the basicskills of leadership apply, because

now they are helping somebody bea better coach rather than being acoach. They are probably gettinga team of people to focus onbroader business objectives. Onethird of our time is dedicated tothose skills.

The final third of our time is ded-icated to helping people at the direc-tor level and above better their

© Books24x7, 2008 Steve Fitzgerald ExecBlueprints 6

Steve FitzgeraldSenior Vice President, Human Resources , Vail Resorts Management Company

There is a huge value in having skilled middlemanagers with a high level of leadership acumenwho can appreciate the connection between their initiatives and the advancement of the entireenterprise.

Steve FitzgeraldSenior Vice President, Human Resources

Vail Resorts Management Company

Steve FitzgeraldSenior Vice President, Human Resources

Vail Resorts Management Company

“I profoundly believe that the minority of what you need to know about lead-ership is learned in a classroom or book.”

• Deeply involved in the acquisitionand integration of StorageTek by Sun

• Led Sun Microsystems’s global talent management activity

• 14 years’ experience in the HR and corporate strategy organizations of Ford

Mr. Fitzgerald can be e-mailed at [email protected]

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skills, their business acumen,their enterprise knowledge, and theirability to view our business as atotality to understand that thereare choices we make and prioritieswe assign without obvious solutions.

Spending on LeadershipTraining Our overall expenditures on lead-ership training will increase. Interms of internal leadership time,spending will increase significantly.There’s more to be learned bybeing coached and practicing the

skills that you then learn than thereis in the classroom. While we’ll dosome of the classroom stuff, wedo a lot more of pairing people withother leaders in the organization.

I have a leadership team that isvery people-centric. Our CEO RobKatz and our CFO Jeff Jones aresome of the most attentive execu-tives I’ve ever seen. Fundamentally,we get everything done for ourguests through our own people.Because they appreciate that somuch, they’re interested in helpingus enhance people and they’rewilling to spend time and resourceson it.

Our leaders are also willing tosupport the work that we need todo to make it easier for our employ-ees to make our guests’ experiencesexceptional. Some of the scores thatwe track around guest satisfaction

are amongst the highest out there.There’s something called a netpromoter score. We have resortsin Vail and Beaver Creek that are inthe high 80s from week to week,which is almost unheard of. Com-panies like FedEx are typically in thehigh 70s. We are good at what wedo, and we want to get even better.

When you are already reallygood at something, it usually takesa lot more effort and money tomake incremental improvements

than it does to go from average toa bit above average. I have to beconcerned about where to spend alot of time and money. There areparts of the company that are inmore need of attention than theleadership and the guest experienceside.

Seeing Results: TheTangible Impact of Leadership Training

We recently filled an executiveposition at one of our resorts. Goinginto the process, we didn’t perceivethat we had a person in the com-pany who was the right fit for thejob. We tend to operate very largeski resorts and we did not havesomeone in the pipeline who hadpreviously led a smaller resort. All

© Books24x7, 2008 Steve Fitzgerald ExecBlueprints 7

Steve FitzgeraldSenior Vice President, Human Resources , Vail Resorts Management Company (continued

Expert Advice

Good leaders are fundamentally good leaders, whether they’re in a senior managerrole or not. That same skill is going to follow them all the way up, and they aremore impressionable and willing to learn when they are junior managers. Asyou move through time and levels, you go from managing a team to a group ofpeople who manage a team to a number of people who manage a number of teamsto managing a business.

Key Leadership Trainings

KeyLeadership-Specific

Skills

Learning toManage

Managers

Viewing theBusiness as a

Strategic Whole

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five of our resorts are among thebiggest in North America.

When we had an opening at a bigresort and looked around our com-

pany, our initial impression was thatwe didn’t have anybody in thepipeline with enough experience.We thought it was important tolook on the outside. We looked atevery major player in the NorthAmerican skiing and snowboarding

industry from a run-the-resortstandpoint and met with our bestinternal candidates.

At the end of the process, we felt

that four of the top six candidatesfor the position were in our owncompany, even though they hadn’trun an entire resort. They had highintellectual horsepower that putthem in good stead versus the com-petition, and we had taken time

over the years to develop them.Because the leadership climatearound them was so strong, theyhad learned from the best. Wefocused on choosing from ourinternal candidates, and the personwe chose is making real traction inher role. When you build a cultureof effective leadership and coaching,it’s contagious. ■

© Books24x7, 2008 Steve Fitzgerald ExecBlueprints 8

Steve FitzgeraldSenior Vice President, Human Resources , Vail Resorts Management Company (continued

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Areas of Impact In our company, HR has primaryresponsibility for leadership train-ing. We make sure the business unit

presidents and senior officers of thecompany, including the CEO, areincluded in the process.

The areas where leadership train-ing can have the most tangibleimpact are in the management,recruitment, and retention of peo-ple. As we build the companyglobally, we need managers who aretrained to understand a global

economy and lead people aroundthe world.

Most of our training is devotedto mid-level managers and subjectmatter experts who have the oppor-tunity to become managers withintheir departments. Around 75 per-cent of our training is focused ondepartmental line managers, whomanage the function, shift, and firstline supervision on both an hourlyand a salary basis.

Assessing Bottom LineImpact Overall expenditures on leadershiptraining will substantially increase

over the next 12 months. We assessthe impact of leadership training onthe bottom line in terms of increasesin margins, increases in product lineprofitability, and earnings per share.

Our leadership training is focusedon getting people to understandhow the global economy impactsour company and how we can ben-efit from it. We recently announced

a major growth investment in AsiaPacific, with new plants in China,

India, Korea, Thailand, andVietnam. The training of our man-agement team has allowed us to pur-sue these investments.

Developmental NeedsAround 50 percent of our develop-ment needs concern people man-agement. Another 25 percent of ourneeds focus on how to judge

performance of people. The final25 percent focuses on understand-ing the cultural differences of peo-ple around the world.

Identifying CandidatesIn order to identify candidates for

leadership training in our company,we use a robust succession planningprocess. Through that process, weidentify potential leaders thatshould be eligible for more training.

We do an in-depth analysis of our managers around the world. Weassess their potential for greaterresponsibility and their need forleadership training in order to

© Books24x7, 2008 Robert Ostrov ExecBlueprints 9

Robert OstrovSVP, HR

ArvinMeritor, Inc.

“Leaders have to understand the criti-cal elements of our business and how to communicate those elements totheir staff members.”

• Fortune 200 global industrial company

• Overall responsibility for 30,000employees in over 150 plants in25 countries

• 35-year career in human resources;experience at GE and FedEx, amongothers

Mr. Ostrov can be e-mailed at [email protected]

Robert OstrovSVP, HR, ArvinMeritor , Inc.

Most of our training is devoted to mid-level managers and subject matter experts who havethe opportunity to become managers within their departments.

Robert OstrovSVP, HR

ArvinMeritor, Inc.

Expert Advice

When we benchmark leadership training, we take a strong look at how many peo-ple we have in the pipeline to assume new leadership roles and where they live.We measure our progress based on filling the pipeline of available talent in vari-ous parts of the world. We assess our success twice a year.

One of our best practices has been educating our management staff on appre-ciation and respect for different cultures. Focusing on the diversity of people aroundthe world has served us well as a company.

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assume additional responsibilities.We use a very individualized,robust, and in-depth successionplanning process.

Best PracticesLeadership training focuses on howto manage people and how to man-age financials. People are the mostimportant part of the equation, andunderstanding our particular pieceof the business in the global econ-omy is a close second. We are teach-ing our new management teamshow to understand the massiveimpact of the globalization of theworld.

The most critical element of leadership training is getting newmanagers and leaders in the com-pany to understand how to find theright people, train the right people,retain the right people, and lead theright people. It is critical that ourmanagers understand their respon-sibilities as leaders. The most chal-lenging part of running a global

company is the fact that we have thefinancial means to grow, but we stillneed more human capital skills.

© Books24x7, 2008 Robert Ostrov ExecBlueprints 10

Robert OstrovSVP, HR, ArvinMeritor , Inc. (continued

Our leadershiptraining is focused on

getting people to

understand how the global economyimpacts our companyand how we canbenefit from it.

Robert OstrovSVP, HR

ArvinMeritor, Inc.

Foundational Leadership Lessons

StayingFlexible and Agile

Having the Right

People in Place

Staying Competitive Globally

Our Development Needs

50%People

Management

25%Judging

EmployeePerformance

25%Understanding

Global CulturalDifferences

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ChallengesOne of the challenges specific toleadership training is getting peopleto understand how to get others to

be productive.We try to stress certain themes inour leadership and managementtraining. We talk about the fact thatwe have to be competitive in theworld, we need to have the right peo-ple in the right place at the righttime, and we have to be flexible aswe move our business globally.

International ConcernsAround two-thirds of our leadershiptraining efforts are international.One third of our efforts are domes-

tic. Assessing leadership trainingneeds for international locations isour most critical element.

As a company, we put our effortsinto not using American expatriatesto run our businesses around theworld. We do everything possible todevelop, train, and promote localcitizens to run our businesses. We

need to train these people to under-stand their place in our global foot-print and in their local culture. ■

© Books24x7, 2008 Robert Ostrov ExecBlueprints 11

Robert OstrovSVP, HR, ArvinMeritor , Inc. (continued

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I. Focusing on the MiddleLeadership training has the greatestvalue when it’s focused on the middleof the company.• There is a huge value in having a

skilled level of middle managers.• Middle managers who see the

connection between their workersand the company’s goals are ahuge driver of profitability.

Leadership training should focus oncreating middle managers who:• Have a high level of leadership

acumen• Can appreciate the connection

between their initiatives and theadvancement of the entire

enterprise• Look beyond their function, job,and team

• Impart the company vision totheir direct reports

• Encourage innovation and changein their units

• Are eager to learn more

A robust middle management notonly drives the company’s currentproductivity; it also ensures a deep tal-ent pool for the future. The same lead-ership skills will follow them all the wayup, and create the next generation of executives.

II. The Bottom LineLeadership training can have the mosttangible impact in the area of per-formance management. Enhanced lead-ership skills at all levels of the companycan drive increased productivity fromthe same set of employees.

Increased worker productivitycomes from leaders who have:• Clear vision• An aligned set of goals• A fair and thorough method of

evaluating performance• A way to recognize and reward

performance

These leaders will be able to maxi-mize the capability of their humanresources, and have a real impact on thebottom line. Leadership training at alllevels should be focused on creatingleaders with these key skills.

III. Must-Haves for Creating aCulture of Development CEO involvement • The primary responsibility for

leadership training at thecompany falls on the CEO.

• The top person must believe thatif he is not growing his team andhelping them stay current, thecompany is going to fall behind.

• HR provides the tool set, but theCEO provides the credibility andvision.

Thorough documentation and accountability • Training activity should be

documented and evaluated.• HR should monitor the impact of

every type of leadership training,and engage in dialogue with thetrainees.

• Every training should be linked toa specific weakness, and its impacton that weakness should bemeasured.

Emphasis on people• The most critical element of

leadership training is getting newmanagers and leaders in thecompany to understand how tofind, train, retain, and lead theright people.

• Human capital is critical forsuccess, and leadership training iscritical for maximizing its impact.

IV. The Golden Rules for Effective Leadership Training Target your training.• Successful leadership training is

targeted; it is directed at a specificcompetency with a specificprogram.

• It needs to be directly applicableand tailored to an employee orexecutive.

Implement a thorough succession planning process.

• There must be a thorough processfor identifying candidates forleadership training.

• Determine someone’s pastperformance, then look forwardand determine their futurepotential.

• Target development programs toaddress overall competency needs.

Share the broad view.• Leadership training must teach

people to focus on broaderbusiness objectives.

• Leaders at all levels shouldunderstand the company’s goals,strategies, and objectives, andunderstand how their team alignswith those.

V. Essential Take-AwaysAny training or development must alignwith competencies that will drive thecompany into new markets and prof-itability. Understand what you need tobe competitive in the world, and howto get the right people in the right placeat the right time. Target your trainingaround these skills.

Company leaders must align withHR to create a culture of developmentthat permeates the organization.• Successful leadership training

requires the support andinvolvement of companyexecutives.

• It’s impossible to do well unlessthe leadership of the company isintimately involved. ■

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10 K EY Q UESTIONS AND D ISCUSSION P OINTS

In your company, who has primary responsible for leadership training? Is leadershiptraining primarily handled through HR? Which other people in the company should beinvolved to ensure success?

In what areas of an organization do you believe leadership training could have the mosttangible impact? Could you please describe how your organization has benefited fromleadership training?

Could you give a breakdown of the leadership training efforts within your company?What percentage is devoted to senior executives? Mid-level managers? Otheremployees? Who are these employees?

Do you expect that overall expenditures on leadership training will increase or decreaseover the next 12 months? What is driving this increase or decrease? What do youpredict will be the impact on the company?

How do you assess the impact of leadership training on the bottom line? Is there a wayto calculate ROI for these development efforts?

How should leadership training efforts be linked to business goals? Is that approachused for other development programs around the company as well?

Could you cite an example of a leadership training effort that had a substantial impacton the company’s profitability? What are the best practices you took from this effort?

Could you give a breakdown of the developmental needs that leadership training ismost commonly used to address in your organization? What percentage of effortsis targeted at developing personnel management skills? Enhancing overallperformance? Another developmental area?

What process is used to identify candidates for leadership training in your company?Do you expect your leadership training priorities to change over the next 12 months?

What kind of benchmarks do you use for leadership training? How is progressmeasured? How often?

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