On Leadership

Working Effectively in a Matrix: Tips for Building and Sustaining Cooperation

In a matrix organization—where people rely on getting work done through others over whom they have no direct authority—maintaining high levels of cooperation and coordination can be a challenge.  The findings of OnPoint’s 2011 Execution Gap study helps clarify the extent to which organizations struggle with this:

• Only 47% responded favorably to the item, “decisions and actions are well coordinated across departments/functions.”
• Only 49% responded favorably to the item, “decisions and actions are well coordinated across levels of management.”
• 40% do not believe that people cooperate across functions and departments to achieve their organization’s strategic objectives.
• 44% do not believe that people in different divisions readily share information, ideas, and best practices.

What can leaders do to encourage and sustain cooperation?  OnPoint’s research indicates that there are three key “cooperation builders” that are critical for success:

1. Improve Communication and Transparency: Two simple actions—not assuming people know what you are thinking and paraphrasing to check for understanding—can go a long way toward making communication transparent and help prevent communication-related missteps. 
2. Agree On When Cooperation Is Needed and What It Looks Like: Although the process of discussing roles and agreeing on “when and how” to work together takes time, it is well worth the investment.  Formally and explicitly working out roles at the early stage of a team’s formation, or whenever a lack of cooperation is noticed, helps preserve trust and enhances productivity.
3. Align Interests and Establish Common Ground: When the objectives of one person or group are at odds with the objectives of another, cooperation suffers. To facilitate alignment, leaders must develop compatible and mutually supportive objectives in a thoughtful and explicit manner.  One approach is to develop a set of broader, collective objectives for a team or work unit, then review the task objectives for specific individuals or groups and ensure that they are consistent with and mutually supportive of the collective objectives. 

While these cooperation builders provide a foundation to encourage collaboration, they won’t eliminate disagreements about what, when, and how to do things.  In order to sustain cooperation and collaboration in a global matrix structure, leaders must gain the support of others for their ideas and constructively resolve differences across organizational boundaries.  Therefore, it is essential for today’s leaders to hone their influence and conflict management skills. 

Leaders who focus on these areas will have much greater success in creating a culture of cooperation and achieving their business objectives in today’s matrix organizations. 

Developing Talent on a Shoestring: Five Strategies to Cultivate Future Leaders In Tough Times

Recent news headlines point to numerous shake-ups in corporate leadership.  Gap, Google, and Pfizer are just a few examples of companies with recent changes to senior leadership and many others are expected.  While some companies continue to allocate time and resources to grooming leaders for additional responsibility, those that reduced their commitment to leadership development during uncertain economic times will be much less prepared to identify successors for key positions and, as a result, may face a talent gap.

It is generally accepted that a lack of consistent focus on cultivating future leaders negatively impacts organizational performance.  The findings of OnPoint’s 2011 Execution Gap Survey support that view.  The study found that implementing succession management programs and offering leadership development programs is strongly correlated with job satisfaction, employee engagement/retention, and effective strategy execution, which are all key predictors of organizational success.  Specifically, the study found:

• 46% of 935 leaders surveyed indicated that their companies did not have a  program in place to fill key management positions
• 35% responded that their companies do not use training to enhance leaders’ skills

Firms with a more strategic focus continue to invest in succession and leadership development rather than simply cutting initiatives when budgets are tight.  As such, they are well-positioned to address planned and unplanned leadership changes.  Ronald Williams, Chairman and former CEO of Aetna reinforces the strategic importance of developing future leaders: “Are we managing the entire talent pool of the organization to create successor generations of expertise?  We don’t think addressing that is extraordinary; we think it’s essential if we are to be competitive in the long-term.”

It’s critical that organizations maintain their commitment to leadership development and succession management despite tough economic conditions.  But how can organizations do this when budgets are tight and still ensure they are prepared in the event of a leadership shake-up?  Rather than slashing programs, here are five strategies companies can use to maximize their talent management efforts in tough times:

• Focus on competencies that make a difference.  Rather than offer “leadership development 101”, it is more effective to identify the competencies that are most critical to the current and future success of the business, and focus skill development in these key areas.  Internal data (e.g., performance management or 360° data) may be available and can be used to determine the key development areas for most leaders.  For example, if leaders need to successfully operate in a matrix and enhance accountability, then it is beneficial to offer programs that will help leaders build these specific skills.  In addition, if group-level data suggests that leaders are strong in Delivering Results but weaker in Strategic Thinking or Managing Change, this information will help prioritize training needs.  

 

• Take learning and development out of the classroom.  Many organizations are creating activities that provide on-the-job learning opportunities such as cross-functional teams, job rotation and action learning projects where leaders work on solving real business problems.  Recently, Hartford Steam Boiler recognized that there was a need for its senior managers to enhance their level of customer focus and strategic thinking.  The CEO sponsored an action learning project where high potential managers worked in two teams to solve important business issues.  The teams generated high-quality recommendations to address these challenges while gaining knowledge that addressed their top development needs. 

 

• Focus on high potential leaders and critical roles.   When training dollars are scarce, focus on high potential leaders who will be critical to the future success of the organization.  The best practice to high potential identification is to use some form of assessment to provide objective data on these leaders.  In addition, determining what roles are of strategic importance to the company will help ensure there is a talent pipeline for those roles.  While succession for key executive positions is important, it is also beneficial to identify potential gaps in bench strength for other critical roles (e.g., sales management or procurement positions) throughout the organization. 

Investing differentially in talent is a strategic decision that pays off.  Daiichi-Sankyo Inc., the U.S. subsidiary of a global pharmaceutical company, recently implemented a leadership acceleration program to develop future sales leaders is a good example of this.  After identifying high potential employees, these employees participated in ongoing developmental activities to better prepare them for additional responsibility in the future.  Despite the challenging economic environment, this company proactively took steps to prepare leaders for its mission critical roles.

 

• Offer alternative delivery strategies.  Rather than simply reducing the number of leadership development programs offered, use creative ways to ensure leaders receive the necessary training to be successful. Due to travel restrictions and a need to increase efficiency, many organizations offer online training programs or blended learning solutions (a combination of web-based and in-person meetings), which can result in significant savings.  Other organizations leverage internal line managers to facilitate their leadership development programs. 

 

• Measure the impact of leadership development on business performance.   Companies with data that illustrates the return on investment (ROI) of their leadership development initiatives have a powerful business case for talent management.  Senior executives who understand the importance of strategic talent management continue to invest in their leaders.  Therefore, it is important to implement a measurement plan that demonstrates the value of talent management initiatives.  For example, data that shows the link between leadership development and customer satisfaction or other business metrics can be particularly compelling.

 

Although it can be difficult and require a clear vision and strong commitment, companies that continue to invest in succession management and leadership development during tough times are more likely to see the pay off when tough times are a thing of the past.