Although times are bad, talent still matters. Organizations that take a long-term view recognize that talent management is particularly important during tough times to avoid talent shortages when the economy improves.
Understanding which competencies make the difference in a leader’s effectiveness and the extent to which this varies by level becomes is a critical starting point. To help answer these questions, OnPoint Consulting, in partnership with the American Management Association, collected data on the managerial effectiveness of 622 managers across organizations including government agencies, non-profits, multi-nationals, Fortune 500, and Fortune 1000 organizations.
Four key findings from our study and tips for using this information to enhance talent management efforts are shown below. A complete report of findings is available upon request.
1. Exceptional managers, regardless of level, demonstrate competence in four key areas.
Our study found that Action Orientation, Building Teams, Building Trust & Personal Accountability, and Critical & Analytical Thinking differentiate top performers at all three levels: first-line manager, manager of managers, and functional manager.
Implications for Talent Management—Because these competencies appear to be essential for top performance at higher levels as well as for managers of individual contributors, both formal and on-the-job training that help develop these competencies should be targeted to first-line managers to ensure they develop these skills early in their careers. Allocating resources to this area will help build a strong pipeline of internal managers who are prepared to make the transitions to the next level of management and take on additional responsibility.
2. In addition to the four core competencies, it is important to master specific competencies that are critical for success at each level.
In addition to the four core competencies described above, exceptional managers master specific competencies required for success at their level. We found that exceptional managers received substantially higher ratings than average performers in the following key areas:
§ First-line managers: Self Development and Resilience & Stress Tolerance
§ Managers of managers: Influencing, Interpersonal Savvy, Creative Thinking, Emotional Intelligence, and Strategic Planning
§ Functional managers: Action Orientation, Customer Focus, and Managing Conflict
There is “face validity” to these findings when one considers the unique challenges experienced at each level. Being a learner and having a tolerance for stress would certainly serve new managers well as they take on the responsibility of getting work done through others for the first time. Likewise, interpersonal skills are particularly relevant for someone who is managing managers. Taking a broader strategic view is also a key competence at this level. For the functional manager, although all the previous skills are certainly important, the unique challenges of the job require an action orientation, a focus on the customer, and the ability to manage cross-organizational differences.
Implications for Talent Management—These findings provide guidance for making selection decisions and for the timing and content of training and development. For example, since the most successful first-line managers are learners and have a high tolerance for stress, organizations should assess leaders for these competencies as part of the selection process. On the job support for developing these competencies would also be important. In addition, preparing people to take a broader organizational perspective and building strong interpersonal skills before they are promoted to a manager of managers role would increase the probability of success in that position.
3. The ability to effectively execute plans and initiatives is the hallmark of an exceptional manager.
The managers in our study who were considered exceptional received higher ratings in the areas related to execution and getting things done: Action Orientation, Problem Solving, Decision Making, and Results Orientation. Competence in these areas appears to set the best apart from the rest.
Implications for Talent Management—Most organizations understand the need to develop an exciting vision and a realistic strategy. The key issue for organizations today is fulfilling the promise of that vision. In a recent OnPoint survey, 49% of respondents reported a gap between their organization’s ability to formulate a vision and strategy and deliver business results. Sixty-four percent of those people lack confidence in their organization’s ability to close the gap. Ensuring managers have the skills required to deliver consistent results and get things done day-to-day should be a top focus of an organization’s management development activities.
4. Practice is required to build competence and expertise—managers don’t need to be born with it.
Our study suggests that managers who are in a position for five to ten or more years are more likely to be seen as exceptional. Exceptional managers gain competence and enhance their performance over time, while the average managers reach a performance plateau. This supports the idea that expertise and effectiveness are the result of experience and practice.
Implications for Talent Management—Moving managers to the next assignment too quickly does not provide enough time for them to learn from the experience. Managers need to see the impact of their actions to truly develop competence. In addition, expertise results when managers are required to tackle problems and situations they have not faced before and that take them out of their comfort zone. This finding emphasizes the importance of providing on-the-job learning opportunities such as action learning projects where leaders work on solving real business problems.
********
OnPoint Consulting specializes in helping companies close the gap between strategy and execution. For more information, please visit our website at www.onpointconsultingllc.com.
