Industrial and Commercial Training

Developing the next generation of leaders

Bonnie Hagemann Saundra Stroope

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To cite this document:
Bonnie Hagemann Saundra Stroope, (2013),"Developing the next generation of leaders", Industrial and Commercial Training, Vol. 45 Iss 2
pp. 123 - 126
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Developing the next generation of leaders

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Bonnie Hagemann and Saundra Stroope

Bonnie Hagemann is CEO

at Executive Development
Associates, Oklahoma City,
Oklahoma, USA.
Saundra Stroope is Talent
Management and
Development Manager at
ATK, Salt Lake City, Utah,
USA.

Abstract
Purpose The fundamental skills leaders need to master include creating vision, leading teams, driving
for results, and managing performance have not changed from the past. The aim of this paper is to
explore the development of the next generation of leaders.
Design/methodology/approach The bigger issue is that the majority of next generation leaders are
just not ready and do not have the skills necessary to lead. This emphasizes the strong need for clear
succession plans and a proactive emphasis on the development of high potentials and emerging
leaders.
Findings At the executive level the most commonly used development strategy is executive
coaching.
Originality/value Given the changing workforce demographics with the large number of Baby
Boomers entering retirement and the pace of change organizations face today, the development of high
potential and emerging leader talent pools is vital. Development is more important today than it has been
in the past to attracting and retaining talent within organizations. Critical thinking skills and leadership
skills such as leading change, creating vision, engaging others top the list of skills imperative to
success.
Keywords Development, Leaders, Leadership, Career development
Paper type Conceptual paper

aby Boomers are retiring at a rate of one every eight seconds according to statistics.
Many companies in a wide range of industries from Aerospace, Energy, Engineering
and Retail report that they have as much as 60 percent of their workforce eligible for
retirement within the next three years. This demographic shift in the workforce is forcing
companies to evaluate the strength of current leadership and focus on developing bench
strength from within.

The fundamental skills leaders need to master include creating vision, leading teams, driving
for results, and managing performance have not changed from the past. However, these
skills are simply not enough to stay competitive in todays fast paced global marketplace. In
the 2011/2012 Trends in Executive Development research study conducted by EDA
(Hagemann and Mattone, 2011), researchers found the number one competency gap in
leaders expected to fill executive level positions within the next three to five years is the
ability to use critical thinking skills. Learning to apply critical thinking (creative thinking,
problem solving, strategic thinking and decision making skills) in complex situations is the
most significant trend in executive development today. This is a significant finding since
leadership skill has been rated as the number one topic in EDAs research for the past 25
years.
There are additional competencies that are crucial for success going forward, that include
leading in a new way. Collaboration, creativity, flexibility and tolerance are emerging in key
trending analysis as well.

DOI 10.1108/00197851311309570

VOL. 45 NO. 2 2013, pp. 123-126, Q Emerald Group Publishing Limited, ISSN 0019-7858

INDUSTRIAL AND COMMERCIAL TRAINING

PAGE 123

Whats changed?
Why do we need different competencies today compared to what leaders needed in the
past? Well, the workplace is changing rapidly, both the way we work and the workers
themselves. For example, lets consider Critical Thinking as a key competency today.
Executives are expected to make sound judgments every day and to consider the impact of
decisions on the organization at all levels while operating at greater speed than ever before.
The pace and complexity of business and the rate of change requires executives to have
heightened ability in recognizing assumptions, evaluating arguments, and drawing clear
and valid conclusions certainly more so than in years past.

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Why are thinking skills so imperative to our future leadership? Leaders are expected to lead
teams, build talent, develop business strategy, run meetings, and handle disagreements,
often with busy calendars, without much designated time to think. In a complex environment,
the ability to assimilate information and make high quality decisions quickly in the face of
uncertainty and pressure is essential to the success of the leader. Critical thinking skills
require intellect, knowledge, time and practice. President John F. Kennedy said it best Too
often we . . . enjoy the comfort of opinion without the discomfort of thought. Its important that
future leaders receive the training and tools to deliberately learn and practice these skills
over time.
At the top of organizations, the Baby Boomer generation is still at the helm. Many of them are
most comfortable leading from a command and control style of leadership. Critical thinking
requires the ability to draw in information and analyze data from a team perspective, as well
as considering the impact on the organization at all levels. This requires greater
transparency in decision making, the openness to inquire and learn and the ability to work
with the next generation. Many leaders are struggling with this shift from top down authority
to an inclusive, learning environment.
Leaders must also be collaborative and able to work easily across the company, peer
groups, customers, suppliers, contractors and strategic partners. Leaders who insist on silo
mentality will find themselves behind, left out and forgotten in the new workplace.
Wave upon wave of creativity is driving change into the workplace and a tremendous pace.
Providing structure and atmosphere where creatively can flourish will help leaders take their
organizations to new levels.
Without flexibility and tolerance leaders will find success eludes them. They will need
flexibility to deal with the continuous stream of changes, kinks, market shifts and economic
ups and downs. And they will need tolerance of everything from diverse religions to
generational differences. It will be just as important that the up and coming leaders can
accept and value the traditional leadership mentality as it is for the Baby Boomers to value
the new and dramatically different Gen Y. We are finding a seeing some reverse prejudice
where those who have grasped the leadership of the future no longer value the leadership of
the past. Both are important and we will need all of the skills from both to be successful going
forward.
Also in the top five competencies needed in the next generation of leaders according to
EDAs Trends in Executive Development, the ability to engage and inspire others was ranked
No. 2; cooperating and collaborating with other parts of the business to optimize operations
was ranked No. 3; No. 4 was leading change, and No. 5 understanding the total enterprise.
Other hot trends included strategy execution and leading the next generation of talent.

Researchers found the number one competency gap in leaders

expected to fill executive level positions within the next three
to five years is the ability to use critical thinking skills.

PAGE 124 INDUSTRIAL AND COMMERCIAL TRAINING VOL. 45 NO. 2 2013

Developing bench strength

The bigger issue is that the majority of next generation leaders are just not ready and do not
have the skills necessary to lead. This emphasizes the strong need for clear succession
plans and a proactive emphasis on the development of high potentials and emerging
leaders. Unfortunately, EDAs study found that although most organizations recognize the
importance of bench strength development the investment in development efforts did not
match the need.

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Another study, the Hewitt Research Highlights, How the Top 20 Companies Grow Great
Leaders (Salob and Greenslade, 2005) by Hewitt Associates of large US companies found
that only a bit more than half consistently use a formal approach to identifying high
potentials, yet those that do perform in the 75th percentile or higher for total shareholder
return. The results increase even further when these organizations formally track the
development and performance of high potentials.
Most organizations also struggle to identify high potentials and emerging leaders and
overemphasize the use of subjective perceptions and the use of current performance
measures which often have very little to do with predicting likely future performance in
more challenging and difficult roles. There is a need to utilize more objective-based
assessments and rigor to estimate potential and readiness for future leadership roles.
Increasing bench strength and accelerating the development of high potentials and
emerging leaders is critically important, given the changing workforce and the large number
of Baby Boomers approaching retirement age. Organizations that fail to grow and develop
talent internally will lose talent to the competition. Younger generations are interested in
growth and development and are quicker to leave organizations that arent able to offer a
clear and transparent development path.
Research has shown that each generation brings specific views towards career
development. Generational differences can become a cause of employee dissatisfaction
and drop in productivity if organizations fail to consider the needs of each group. While the
Baby Boomers are loyal to the organization with reservations and are ok with working long
hours, Generation X in contrast has been found to value freedom, autonomy and work life
balance. They are loyal to their career and progression rather than loyal to a specific
organization. The Millennial or Y Generation values career options and fulfillment and has an
expectation for work-life balance, meaningful work and immediate feedback. Knowledge
and appreciation of generational and individual differences can help us engage, determine
the best development approaches and retain the next generation of leaders within the
organization.

Development approaches
At the executive level the most commonly used development strategy is executive coaching.
Coaching is highly targeted, customized and personal to fit the development needs of the
individual. The selection of the coach is important to match the leader with the most
appropriate coaching style and produce business results in a defined period-of-time. A
coach can help the leader analyze strengths, assess development areas, clarify goals,
develop skills and take action aligned with the organizations business needs and strategy.
The use of custom-designed programs provided by external vendors and internal
development staff continue to be popular methods for executives, high potentials and
emerging leaders.
Incorporating action learning assignments focused on real business challenges allows high
potential and emerging leaders to develop skills and competencies and gain exposure to
executives. Developmental job assignments / rotations, mentoring, and coaching are also
frequently used approaches that strengthen business knowledge and agility within the
organization. Job rotations or assignments to a series of different roles in the organization for
small periods of time can help high potentials or emerging leaders learn how to navigate the
company culture and structure as well as develop new skills related to the profession.

VOL. 45 NO. 2 2013 INDUSTRIAL AND COMMERCIAL TRAINING PAGE 125

 Why do we need different competencies today compared to

what leaders needed in the past?

The value of a mentor assignment, formal or informal, is creating an ongoing relationship of

learning and dialogue between a less experienced high potential or emerging leader, and
more experienced or knowledgeable person. Mentors can help expand the potential of
people by helping identify teachable moments in day-to-day work experiences and
creating greater awareness of what has been learned. Its always relationship based and
typically involves routine bi-weekly or monthly meetings for a sustained period-of-time.

Summary

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Given the changing workforce demographics with the large number of Baby Boomers
entering retirement and the pace of change organizations face today, the development of
high potential and emerging leader talent pools is vital. Development is more important
today than it has been in the past, to attracting and retaining talent within organizations.
Critical thinking skills and leadership skills such as leading change, creating vision,
engaging others top the list of skills imperative to success.
The full research report, additional articles webinars and publications are available for
purchase at www.ExecutiveDevelopment.com

References
Hagemann, B. and Mattone, J. (2011), Trends in Executive Development: A Benchmark Report,
Executive Development Associates, and Pearson Education, Inc, Oklahoma City, OK, and Boston, MA,
respectively.
Salob, M. and Greenslade, S. (2005), Research Highlights: How the Top 20 Companies Grow Great
Leaders, Hewitt Associate, Lincolnshire, IL.

Corresponding author
Bonnie Hagemann can be contacted at: bhagemann@executivedevelopment.com

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PAGE 126 INDUSTRIAL AND COMMERCIAL TRAINING VOL. 45 NO. 2 2013