We usually know very well EBITA, profit, cash flow etc, BUT:
How many leaders do you have – let’s say 30
What is the turnover rate – let’s say 20%
How many replacements are needed per year – 6
What is the cost of one replacement – 6-9 months salary
What is the average cost of replacement of one leader – calculate yourself 🙂
How long does it take to develop a specialist to a well-functioning leader? It’s definitely not a matter of days or months, can take years of practice
We know that:
We should look at our people as the most important asset
We should have a system at place how to plan, track, operate and upgrade our asset according to business needs
How do we do it? Usually offer training. And we have experienced that it usually has only short-time effect on motivation and does not influence much above-mentioned numbers.
This is what Leadership Pipeline can be for your organization – a framework to enable clarity, effectiveness and continuity in your people business.
Leadership ranks as one of today’s foremost challenges. Every organization, regardless of size, must tackle this issue. Typically, a leadership crisis reflects a systemic failure within the company rather than just the shortcomings of an individual. A critical element of leadership culture involves the process of development and succession.
The four steps, or transitions, in Leadership Pipeline mark significant milestones in a leader’s career. Understanding these transitions, along with the challenges they present, is crucial for organizations aiming to establish a solid leadership culture. It also equips the organization to effectively manage changes and challenges in the business landscape.
THE FOUR STEPS OF THE LEADERSHIP PIPELINE MODEL
Each stage is designed to help leaders develop the skills needed for the next role, ultimately preparing them to take charge of the organization.
Step 1: Managing self to managing others
The initial phase targets employees who have minimal leadership experience. These individuals typically possess strong technical and professional capabilities yet may lack advanced interpersonal skills crucial for leadership roles.
Once these employees become proficient individual contributors and start showing an ability to work collaboratively, they often receive additional responsibilities. Successful management of these duties, along with adherence to company values, typically leads to promotion to first-line managers.
The transition may appear straightforward but can be surprisingly challenging. The shift required at this stage is from a self-centered approach to appreciating the importance of leadership and teamwork. While first-level managers continue to handle individual tasks, they must begin transitioning their mindset towards managing others instead of just themselves. High performers, in particular, may resist changing the behaviors that initially brought them success. Consequently, many transition to managerial roles without a real shift in behavior or values, essentially becoming managers in title only.
The most challenging aspect of Step 1 is the change in values. Managers must learn to value and prioritize their managerial duties, understanding that these responsibilities are essential to their success and not just tasks to be tolerated. Assessing changes in values is more complex than observing changes in skills or time management. True value change requires reinforcement from upper management and success in their new roles to cement the new values.
Step 2: Managing others to leading managers
The second step in the Leadership Pipeline is critically neglected by many organizations, despite its importance in building the company’s management foundation. In this role, managers are responsible for selecting and developing future leaders, a task that forms the core of an organization’s leadership capabilities.
The primary focus at this stage is on the skills necessary for evaluating and selecting candidates for first-level managerial roles, providing them with the necessary support and guidance, and monitoring their development. Essentially, first-level managers transition to becoming mentors in the second step, which is pivotal for the leadership pipeline to function effectively.
Despite its importance, few companies adequately address this step in their training programs. At this stage, managers must shift entirely from individual tasks to managing only. They need to master key skills such as selecting individuals, delegating leadership tasks, tracking progress, and offering coaching. Moreover, managers at this level must broaden their perspective to include broader strategic issues affecting the business.
A significant issue is that managers promoted directly to managing other managers without properly transitioning through Step One can clog the leadership pipeline. They may continue to hold first-line managers accountable for technical rather than managerial tasks and instill inappropriate values in their subordinates. Managers in this role must also identify and address any resistance to managerial roles among first-line managers, ensuring that those who prefer individual contributions over leadership are reassigned, rather than allowed to obstruct the pipeline.
Furthermore, coaching is crucial at this level but often overlooked. Many first-line managers lack formal training in management, relying instead on their superiors for on-the-job guidance. However, the ability to coach effectively is not always recognized or rewarded within organizations, leading to a deficiency in initiative and accountability among specialists and first-line managers. This oversight can significantly impact the effectiveness of the leadership development process.
Step 3: Leading managers to functional manager
Transitioning to a functional manager role involves significant changes, primarily centered around enhancing communication skills and developing a broader organizational perspective. Functional managers must excel in understanding diverse needs across the organization and adopt a “big picture” approach, which is crucial for crafting long-term strategic plans.
“Managerial maturity” is a key attribute for functional managers. This maturity is characterized by the ability to formulate strategies that outperform competitors, thus providing the organization with a sustainable competitive edge. Functional managers must look beyond immediate challenges to devise long-term strategies that improve their function’s performance relative to the competition.
The role requires navigating complex communication channels, as functional managers must interact through multiple layers of management. Skills in team collaboration with other functional managers and strategic resource allocation are essential. Additionally, these managers must integrate their function’s strategy with the broader business strategy, often necessitating participation in business-team meetings and less time spent on direct functional tasks.
Ultimately, succeeding as a functional manager demands a shift in thinking—from being a member of a function to leading it, with a focus on long-term, innovative strategies that secure a sustainable advantage for the organization. This stage challenges managers to expand their strategic thinking and operational scope, pushing them to lead their functions into future-oriented growth.
Step 4: Functional manager to business manager
In the fourth Step of their leadership development, managers face a significant shift as they transition into the role of a business manager. This stage is characterized by increased pressure and autonomy, requiring managers to possess genuine leadership qualities and an ability to perform under heightened expectations.
The development focus for business managers is on enhancing their ability to manage diverse teams effectively and inspire their members. A deep understanding of emotional intelligence is crucial, enabling managers to connect with employees on an emotional level and better understand the dynamics between different functions within the organization.
A key challenge for business managers is making strategic decisions that balance the organization’s immediate needs with long-term goals. This involves not only ensuring smooth operational functionality but also meeting financial targets that will influence future profitability.
Business managers spend much of their time reflecting on and analyzing the organization’s past, present, and future performance, moving away from direct resource allocation to more strategic considerations. They must be open to trusting and receiving feedback from functional managers across different areas, even those they are unfamiliar with personally.
FINAL THOUGHTS
The Leadership Pipeline Model is a strategic framework aimed at fostering leadership development from the early stages of an employee’s career. It emphasizes the importance of nurturing potential leaders by providing clear transitions from managing oneself to managing others and beyond.
This model facilitates the growth of internal talent, reducing the need for external recruitment and significantly enhancing the success rate of leaders within the organization. It also provides clarity about the content of leadership jobs and responsibilities of different roles thus enabling smooth and efficient collaboration and value creation in entire organization. By focusing on strategic thinking and value-based decision-making, the Leadership Pipeline Model can markedly differentiate successful companies from those that fail.
The Leadership Pipeline Model is focused on developing a structured framework for fostering leadership skills across various organizational levels. It assists organizations in identifying and nurturing potential leaders, ensuring that their growth is in line with the organization’s goals.
The model is particularly effective in creating a sustainable leadership culture, where leaders are prepared for the challenges of their specific roles and the future needs of the organization. Leadership Pipeline framework will help you:
The impact of working with the Leadership Pipeline principles will be significant. Not just for the leaders in question but for the entire organization.
LPI model distinguishes the skills, time allocations, and work values required at each leadership tier, allowing for a more targeted approach to developing leaders. The combination of those 3 elements increases the likelihood that learned skills will be put into practice because clear role-based expectations make it evident what needs to be done to achieve results together with the team.
For each leadership role the combination of work values, time application, and skills are different – to act by role expectations some old behaviors need to be skipped, some changed, and some new ones will be added. Based on the experience of the majority of organizations worldwide it is seldom an intuitive process, yet usually, no help or guidance is provided for leaders transitioning into new roles.
An Introduction to the Leadership Pipeline Model
Implementing Leadership Pipeline principles can vary in approach, and each organization has its unique optimal starting point. We collaborate with your organization on your preferred terms, initiating the process where it’s most crucial for you.
If you want more information on how to create an internal management support system and develop leaders, look here or book an appointment for a free consultation here.
Change Partners helps companies to achieve desired results at every level of management throughout the Baltics.
The Leadership Pipeline offers first principles for mapping and building an efficient and agile leadership architecture, infrastructure, and operation model in smaller as well as in bigger businesses. LPI solutions are 56% better at creating lasting behavioural change for leaders and it’s proven by leading third-party training auditor since 2009 based on more than 10’000 measurements.
Inga and Regina are both experienced leaders and trainers.
🆕 Inga Kalna delivers Leadership Transition Programs across the Baltics and Scandinavia for the last 10 years. Before joining Leadership Pipeline Institute, Inga has more than 15 years of experience in the banking sector. Thanks to her various roles, she has gained solid expertise in business development, change management and leadership development.
🆕 Regina Reke has provided LP trainings since 2020. She speaks five languages and delivers Leadership Transition Programs in Latvian, Lithuanian and English, enabling companies in 🇱🇹 Lithuania or 🇱🇻 Latvia to organise learning process in their native tongue, while for mixed Baltic groups – in 🇬🇧 English.
Before joining Leadership Pipeline Institute, Regina has been actively involved for more than half a decade working as a business trainer and consultant. Her more than 15-year experience in diverse industries (transportation, travel, construction,) in leading positions, has built substantial know-how in leadership and business development.
Together we can really leverage your company’s competitive advantage!
We are pleased to announce that in 2021 we started cooperation with the Leadership Pipeline Institute in Denmark, which allows us to bring a globally recognized Leadership Pipeline framework to our customers.
Imagine a company that has a CFO but does not have a budget process and no accounting system. In such circumstances, it is difficult for a financial manager to succeed. Financial processes create clarity and certainty, financial matters are under control and problems are easy to talk about.
Less attention is paid to the fact that management itself is one of the functions that ensure the success of the company and needs also an internal system. Usually, management is considered a general topic, for example, it is discussed whether Rein is a good leader at large, but the data is insufficient to make such an assessment. At best, there is annual employee feedback. This is one reason, why the efficiency of management training is low, as a rule, less than 15%.
The Leadership Pipeline approach helps to create an internal management system that recognizes the value created by each level of leadership and formulates specific behavioral expectations to get the job done. This provides an opportunity to select, assess and develop performance on a specific basis. Rein can be a good leader of others but may not want to do the job of leader of leaders. Mihkel is an excellent functional leader, but in order to develop into the role of a business leader, he should work more with some skills. And no one has to feel bad about it. Because everybody knows the value that each level of management creates and what needs to be developed in order to move to the next level.
The Leadership Pipeline framework provides a common language and a common understanding of what needs to get done and by whom, helping to solve problems, make decisions, and use opportunities across the organization. The whole value chain will work more efficiently. The head of the company can deal with strategic issues and communication with various stakeholders, as the leaders in his team develop their areas, cooperate effectively with each other, and manage the implementation plans. There is an overview of succession available for each level, as managerial work and the necessary skills are regularly monitored and developed across the organization.
If you want more information on how to create an internal management support system and develop leaders, look here or book an appointment for a free consultation here.
Prosci is committed to continually searching for better ways to manage the people side of change.
Part of Prosci’s promise is ensuring that they provide the most up-to-date thinking, research and models within their programs. Each year they release updated content, program design, research and tool enhancements. This year’s updates are some of the most robust Prosci has ever produced.
They listened to the Prosci Community and, using a Design Thinking approach, began collecting information to empathize and understand the needs and problems of change practitioners. They used the data to define their focus and concentrate efforts to address the most urgent, pervasive and high-value issues for practitioners.
The core of the Prosci Methodology is still the same, but the enhancements driven by your input have created a more effective, applicable, and actionable methodology. Download this guide first for an overview of what is changing and how it impacts your role, as you interact with the content.
Use the resources below to review the core content of the Prosci Methodology
Read these articles to learn about key concepts of the Prosci Methodology. These articles do not compare the legacy and updated models and methodology, but they will provide a clear overview of the current thinking. Once you read through the overview guide, download our FAQ document for additional information.
If you’re ready to upgrade and want to refresh your Prosci change management knowledge and license, then our Prosci Refresher Program is exactly for you. Read more from here.
Organisations are constantly undergoing change. Whether organization is implementing a new strategy and culture or responding to market trends like digitalisation, change is a necessary and vital part of long-term organisational success.
Yet, all too often, people react to changes so differently. Have you ever wondered why? What are some of the change management strategies to handle these various reactions? One of the reasons that change efforts fail is when leaders fail to take the human side of transition into account.
In the landmark change management study of more than 100 companies over 10 years, Harvard Business School professor John Kotter, reported the incredible finding that approximately 70% of change initiatives fail. Whether it was a large scale or a smaller scale change, it often failed to achieve the necessary commitment. This is where DiSC® assessments can help.
Using DiSC psychometric model to understand these differences along with Prosci® change management tools will go a long way to facilitating change and managing people more effectively.
The DiSC model is constructed on two behavioral dimensions which form four basic profiles. Each profile, or behavioral prototype, describes preferred environments, communication styles and workplace relationships. The profiles also indicate the greatest fears, motivators, stressors and attitudes toward change.
Without thoughtful leadership to manage personalities within your team, changes can become much more difficult on people and will ask a lot from leaders.
One of the most frustrating things for leadership can be employee resistance to change. “Why can’t they just get on board and do what’s needed to get this initiative done?”. But that would be too easy…
Importance of understanding other personalities
During change, the emotional intelligence of yourself and others is critical for:
Keeping employees engaged and productive
Decreasing resistance, stress and conflict
Maintaining the quality of services that customers need and expect
Using the DiSC Profile can be a very powerful tool to carefully assess people on key change competencies. Not all people embrace change with the same level of enthusiasm. A percentage of the population will dread the prospect of change, while others cynically deny that change will actually ever happen.
By understanding what DiSC styles are more represented in the organization we can predict the potential success or failure of change initiatives and anticipate if they likely will either positively or negatively impact the change process. Ignore these issues, and the probability of delay and change failure increases.
When planning the change process, develop a richer, multidimensional picture of employees and how they view change. Remember the adage, “We love change, as long as someone else does it!” That simple picture speaks volumes.
DiSC helps to develop a deep understanding of each person’s motivators, their limitations and their challenges. Be realistic about what to expect from each individual dealing with the change process. Then, plan accordingly.
Change management for High D’s
High D’s make quick decisions, are on board with change easily and are happy to move forward towards a goal. They are daring and risk-takers. They can be innovators who love new ideas. On the surface, this is a wonderful asset, and momentum is needed to drive change, but they sometimes don’t wait for all the details of a plan before they act. High D’s tend to have a hard time tolerating the conversations necessary to construct the execution plan. This can negatively impact the team’s ability to reach its goals. It’s important to give them an immediate task they can accomplish right away that is part of the larger plan so they can act quickly and achieve a win early in the change process.
What does the D style need during times of change?
Progress: being able to get results quickly and efficiently
Control: having influence over decisions that affect them and their success
Justification: knowing how and why changes were made
Change management for High i’s
High I’s usually get excited about the initiative and want to talk about it. They show great enthusiasm and are early adopters of an initiative. I style openly share their ideas and are usually fun to work with. The challenge with high I’s is focusing them during the execution phase and not letting them get sidetracked chasing the next idea that excites them. Strategies for this group are games, themes and smaller goals that engage their desire for stimulation. They also make great advocates of the initiative. Use High I’s to inspire other members of the team who may need additional encouragement to get on board.
What does the i style need during times of change?
Excitement: being part of energizing new opportunities
Being heard: knowing that their opinions and feelings about the change(s) are heard
Relationships: maintaining a connection with important people in their world
Change management for High S’s
High S’s can be challenging on the surface because they don’t fundamentally like change. They like the status quo that is predictable and calm. “If it isn’t broke don’t fix it.” It’s important to involve them as early as possible in the change process to allow them time to get used to a new idea. Although initially they can be frustratingly slow adopters, this group can become your best advocates for an initiative once they have time to understand the logic behind a change and they feel engaged in the change management process and their role in it.
What does the S style need during times of change?
Reassurance: knowing that things are under control and will turn out okay
Harmony: freedom from tension, conflict, and ongoing stress
Direction: knowing where we are headed and what is expected of them
Change management for High C’s
High C’s have excellent analytical skills, are superb at knowing the details and are very systematic and careful in their work style. They will catch mistakes and keep the team honest when reporting stats and results. The challenge with this style is that they need all the details upfront, and their questions and feedback can come across as resistant and negative. It’s important to learn to embrace these qualities and use them to enhance the team by asking them to help in creating a detailed execution plan. This group may need to be encouraged to move toward the bigger goal, but C’s are an invaluable resource to a team’s success.
What does the C style need during times of change?
Competence: knowing that they can do their jobs well and maintain credibility
Understanding: knowing the implications of the change(s) and maintaining their expertise
Stability: having a sense of predictability and freedom from chaos
Are these generalities? Yes. And every person and organization is unique. But the more the leaders understand behavioral styles, the more they can work within each person’s zone of strength to position the team for success in managing change.
Multidimensional communication is always the key to change project success. Business leaders cannot effectively manage and clearly communicate changes without understanding the personalities of their people and the motivators behind them. DiSC along with ADKAR creates a powerful language for change management and gives leaders a framework for helping people embrace and adopt changes through effective communication and better self-control. Embracing change means putting people first.
WHAT’S YOUR DISC PROFILE?
Reach out to us at info@changepartners.ee to get your personal DiSC profile today to learn about your own DiSC style.
Changes ultimately come to life through the individuals who have to do their jobs differently as a result of a project or initiative. Whether the project involves a process impacting 15 people, new technology impacting 150, or a transformation impacting 15,000, the success of the project is inextricably linked to the success of each of those individuals. Did they get on board, or did they stay on the shore?
To help visually depict this, imagine two ships: one where the people’s side was managed effectively, and one where it was not. In both cases, a beautiful ship was constructed, and it now needs a full working crew. However, one ship was left isolated and empty while the other ship was full of life and people who “got on board.” Below are the types of things you might hear from a project leader in each situation.
Think about the projects and initiatives you’ve supported - have they been more like the comments on the left or the comments on the right?
It is your choice: Have you done what is needed to get people on board, or have you just built a beautiful ship?
*Adapted from an original blog post by Tim Creasey, Prosci.com
The way we team is more important now than ever before.
Read the latest research report from Wiley to understand the challenges teams are facing today and how The Five Behaviors® could be the solution for building truly cohesive and effective teams.
State of Teams is a great resource regarding the need for strong teamwork skills in today’s work landscape. The report covers new research from Wiley conducted in the last two months on the dynamic nature of teams in today’s workplace, based on insights from over 20,000 employees.
Today’s teams are more complex, fluid, and dispersed
The study shows that teams are becoming more complex, more fluid, and more dispersed—and that our working lives are becoming more team-oriented than ever before. Today’s teams are more complex:
Employees work on more teams with more people on a daily basis compared to just five years ago.
76 percent of employees are part of at least two teams within their organization.
Directors and execs are often on more than five teams.
Today’s teams are more fluid:
73 percent of people are on more than one type of team.
62 percent are on project-based teams, most often lasting just a few months.
41 percent have worked on teams with consultants and temporary contractors.
Today’s teams are more dispersed:
In the past year, 28 percent of respondents have worked with at least one member based in another country.
51 percent have worked on teams with at least one member who collaborated virtually.
High D’s make quick decisions, are on board with change easily and are happy to move forward towards a goal. They are daring and risk-takers. They can be innovators who love new ideas. On the surface, this is a wonderful asset, and momentum is needed to drive change, but they sometimes don’t wait for all the details of a plan before they act. High D’s tend to have a hard time tolerating the conversations necessary to construct the execution plan. This can negatively impact the team’s ability to reach its goals. It’s important to give them an immediate task they can accomplish right away that is part of the larger plan so they can act quickly and achieve a win early in the change process.
High I’s usually get excited about the initiative and want to talk about it. They show great enthusiasm and are early adopters of an initiative. I style openly share their ideas and are usually fun to work with. The challenge with high I’s is focusing them during the execution phase and not letting them get sidetracked chasing the next idea that excites them. Strategies for this group are games, themes and smaller goals that engage their desire for stimulation. They also make great advocates of the initiative. Use High I’s to inspire other members of the team who may need additional encouragement to get on board.
High S’s can be challenging on the surface because they don’t fundamentally like change. They like the status quo that is predictable and calm. “If it isn’t broke don’t fix it.” It’s important to involve them as early as possible in the change process to allow them time to get used to a new idea. Although initially they can be frustratingly slow adopters, this group can become your best advocates for an initiative once they have time to understand the logic behind a change and they feel engaged in the change management process and their role in it.
High C’s have excellent analytical skills, are superb at knowing the details and are very systematic and careful in their work style. They will catch mistakes and keep the team honest when reporting stats and results. The challenge with this style is that they need all the details upfront, and their questions and feedback can come across as resistant and negative. It’s important to learn to embrace these qualities and use them to enhance the team by asking them to help in creating a detailed execution plan. This group may need to be encouraged to move toward the bigger goal, but C’s are an invaluable resource to a team’s success.
