7 reasons why strengths-based development just works better

1. 7 reasons why strengths-based development just works better Jack Zenger—CEO Joe Folkman—President Zenger Folkman

2. Brief Overview of Zenger Folkman • Zenger Folkman is the authority in strengths-based leadership development. • Our extensive research proves that by focusing on strengths, organizations will boost employee productivity, strengthen employee commitment, and improve bottom-line profitability. • We use hard science to develop good managers into extraordinary leaders.

3. Life is Full of Big Choices Where you live

4. Life is Full of Big Choices Your Occupation

5. Life is Full of Big Choices Your Partner

6. Today’s Topic Has Far Reaching Effects • How leaders develop themselves • The choice: fixing weaknesses or building strengths Most leaders, left to their own devices, will gravitate toward fixing a weakness

7. Why Leaders Choose to Work on Weaknesses? • Child rearing practices • Educational process

8. Why Leaders Choose to Work on Weaknesses? • Performance appraisal and performance management systems • Past success

9. Good News and Better News • Both approaches can produce positive results • There are times when each is the right thing to do • We should not discourage people from fixing a weakness if they are motivated to do that

10. Case Study—Large Financial Services Company • 80 executives worked to improve their leadership effectiveness. • Three levels of leaders in the organization participated. • The senior leader for the group set the example by sharing his action plan, following up with his direct reports and checking on their progress. • Other leaders followed his example. • After 8 months all leaders rated their progress. • After 24 months they did a reassessment and checked their progress.

11. Pre-test Results Leaders Scoring Below Average Leaders Scoring Above the 75th Percentile Leaders Scoring Between 51st and 74th

12. Post-test Results: Leaders Showed Significant Improvement Study based on results of 80 leaders

13. What These Leaders Worked On • 15 leaders had one or more competencies at or below the 10th percentile, revealing a significant weakness or potential “fatal flaw.” • 11 of the 15 leaders worked on their lowest score. • 65 leaders worked on their strengths or a combination of strengths and weaknesses • Overall, 58% showed a significant positive change.

14. Impact of Improving “Fatal Flaws”

15. Poll #1 • Working on a fatal flaw clearly pays off. Why? • A. When you have a fatal flaw that is all people notice • B. Change is very obvious to others • C. Starting from a low base helps to produce greater change • D. All of the above

16. Limitations of Working on Weaknesses • Gets you to average • Does not produce exceptional leaders Our research shows that it is the presence of strengths, not the lack of weaknesses, that differentiates the best leaders

17. The Link Between Exceptional Leaders and Business Results • They deliver… • Greater productivity • Increased innovation • Higher employee engagement • Elevated customer satisfaction

18. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

19. 1. Building Strengths Is the Only Way to Become an Exceptional Leader • Exceptional leaders are defined by their strengths • Consider the three major options • Eliminate weaknesses • Become reasonably good at everything • Work on strengths • The first two do not make you exceptional

20. Impact of Fatal Flaws Study based on 24,657 leaders having 7 or more respondents Number of Profound Strengths(Competencies at the 90th percentile) * Leaders with no strengths and no fatal flaws

21. Removing Fatal Flaws Gets You to Average Study based on 24,657 leaders having 7 or more respondents Number of Profound Strengths(Competencies at the 90th percentile) * Leaders with no strengths and no fatal flaws

22. Three Strengths Raises Leadership Effectiveness to the 80th Percentile Study based on 24,657 leaders having 7 or more respondents Number of Profound Strengths(Competencies at the 90th percentile) * Leaders with no strengths and no fatal flaws

23. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

24. 2. A Strengths Focus Produces Greater Improvement +26 +12 * Fixing weaknesses excludes those fixing fatal flaws

25. Poll #2 • Why did those focusing on strengths get 2 times the level of improvement? • A. They had passion for what they were doing. • B. Focus on strengths was a positive experience for them. • C. Their efforts were more noticeable to others.

26. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

27. 3. The Organization Benefits • On several dimensions, the organization improves. • What impact did the fixing weakness vs. building strengths approach have on employee engagement and commitment?

28. What Factors Influence the Satisfaction of Customers? • Case study • 81 regional unit leaders, each with unique customer base. • Each leader gathered 360 feedback from managers, peers, direct reports and others. • Unit leaders did not interface with customers directly but had direct reports that maintained the relationships. • Customer had an ongoing relationship with the organization and the customer’s level of satisfaction was assessed.

29. Impact of Leadership Effectiveness Based on 81 leaders

30. What Creates Customer Satisfaction? Employee Satisfaction Employee Retention Customer Satisfaction Leadership Effectiveness

31. Employee and Customer Satisfaction, Profit Connection Employee Satisfaction Customer Satisfaction Store Revenue Growth • Sears: For every 5-point improvement in employee attitude, customer satisfaction goes up 1.3%, which in turn increases revenue 0.5%, or $250 million per year. • Best Buy: If employee engagement rose 2%, that store increased its sales $100,000 annually. • JCPenney: Employee engagement scores rose from 67% in 2005 to 80% in 2009; earnings per share grew 5 times the industry average.

32. Impact of Leadership Effectiveness Based on 81 leaders

33. Leaders Who Had Profound Strengths, Have Significantly Higher Employee Commitment Scores Results based on 19,905

34. Poll #3 • Why did those who had profound strengths get 2 times the level of improvement in employee commitment/satisfaction? • A. They were better role models. • B. They were more likely to achieve their organizational goals. • C. Direct Reports had more confidence in their leader. • D. Don’t know

35. Impact of Leadership Effectiveness on Sales Results from 170 Sales Leaders

36. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

37. 4. Broader Spectrum of Development Methods Available • For weaknesses, we have linear methods • For strengths, the options greatly expand • Cross Training or “Non-linear Development” • Companion Behaviors

38. The Concept of Cross-training • How it works in development of athletes • Why it works? • We know that statistically these go together • We speculate regarding the reasons

39. Companion Behaviors • Drives for Results

40. Companion Behaviors

41. Companion Behaviors

42. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

43. 5. Motivation Increases • Motivation increases with autonomy and sense of mastery (Daniel Pink) • Participant chooses what to develop • When working on weaknesses, people invariably go for their lowest score and work on that

44. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

45. 6. Positively Impacts the Culture of the Organization • Moves culture away from a “looking for mistakes and weaknesses” mindset • Moves to the more positive side • Emphasizes opportunities versus what people cannot do • Ratio of positive to negative comments between leaders is single largest predictor of their effectiveness as a team

46. 7 Reasons Why Strengths-based Leadership Development Just Works Better • Building Strengths Is the Only Way to Become an Exceptional Leader • A Strengths Focus Produces Greater Improvement • The Organization Benefits • Broader Spectrum of Development Methods Available • Motivation Increases • Positively Impacts the Culture of the Organization • Much More Fun to Work on Strengths

47. 7. Much More Fun to Work on Strengths Think of examples of behaviors or activities that you don’t enjoy. Do you look forward to working on those to get better? • Now, think of behaviors or activities you really enjoy. • How do feel about the prospect of working on those?

48. Other Observations • Leaders’ behavior is not fixed • Has been debate about leaders being made or born • Building strengths has a spill-over effect on other competencies

49. In Conclusion • Many organizations are using a weakness-based approach to development • People don’t like process • Not much change occurs • Loosing 70-80% of the training value • Negative and punishing

50. In Conclusion THERE IS A BETTER WAY • Zenger Folkman can help you switch to a strengths-based approach • You can use your existing competencies and 360 • Leaders will begin to see that good is not great • Leaders can begin the process of building profound strengths through non-linear development