Third, incorporate customer feedback into evaluations of executives. Second, ensure that leaders internalize customers’ high expectations. First, make sure managers master the basics of leadership-for example, setting strategy and grooming talent. In examining 150 companies with strong leadership capabilities, the authors found that the organizations follow five strategies. The outside-in approach helps firms build a reputation for high-quality leaders whom customers trust to deliver on the company’s promises. The slogan of Bon Secours Health System is “Good help to those in need.” It demands that its managers balance business skills with compassion and caring. The Lexus division of Toyota, for instance, translates its tagline-“The pursuit of perfection”-into an expectation that its leaders excel at managing quality processes. They begin with a clear statement of what they want to be known for by customers and then link it with a required set of management skills. Organizations with leadership brands take an “outside-in” approach to executive development. It’s what Ulrich and Smallwood-cofounders of the RBL Group, a leadership development consultancy-call a leadership brand. How do some firms produce a pipeline of consistently excellent managers? Instead of concentrating merely on strengthening the skills of individuals, these companies focus on building a broad organizational leadership capability.
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