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BEST LEADERS:
SELECTING THE MOST-EFFECTIVE MANAGERS IN ANY SPECIFIC INDUSTRY SECTOR

Is your specific industry sector so unique that successful leaders need to have special competencies?

On the one hand, leaders in different companies and industry sectors do different things in different ways. For example, in biotech companies the combination of competencies that leaders must have to be effective could be called unique and different from the competencies in other work environments since special technical skills and knowledge are needed. On the other hand, leadership is more similar across different industry sectors than it is different. After all, the bottom line is the ultimate and common criterion for leadership effectiveness in all profit-based enterprises. So, the reality about whether any industry requires  unique leadership skills probably lies somewhere between the extremes outlined above. Regardless of how unique you find your specific industry sector, here is  how you can pick the best leaders in any environment - including yours. Investing in this process costs less than one week of average salary of most executive and professional staff, a small proportion of recruitment fees or the cost of hiring the wrong person, while payback is very substantial.

Step 1: Identify the must-have competencies.

This is not art, but merely science. Several sound approaches help to  understand the key competencies to deliver success in a specific work environment, whether managing knowledge workers or a production line.

They include traditional job analyses, collecting opinions from job incumbents and managers, and testing existing managers to see what competencies high performers have in common and that are also different from the low performers. Don't  believe everything you hear but approach the question empirically. For example, I have run into the paradox of on the one hand the executive committee saying that high assertiveness and creativity were attributes of highly effective leaders in their company. On the other hand the managers of the most successful parts of that company were in fact under-assertive and not at all creative--they just managed creative thinkers well. The executive committee had shared with me their values and beliefs but had not tested their convictions against reality.  I found out that the client must be comfortable with the process in step 1 to be committed to the outcome, because it can be a counter-intuitive.

Step 2: Measure the competencies--design an appropriate assessment process and sensible standards.

In Step 2 a focused, scientifically based assessment kit and sensible standards are developed of what competency level is acceptable and what isn't. This kit serves to identify, quantify and feed back the competencies of  internal  candidates for leadership jobs or of external candidates. The best way to develop the kit is to rank order the must-have competencies, and select the most appropriate measure for each competency.  Often an existing instrument (such as a questionnaire with high predictive validity for job performance) picks up on a series of core competencies, at which point it becomes part of the kit.

The kit must offer a pleasant, respectful experience for candidates and deliver an actionable, well-articulated report. Most importantly, it must deliver accurate, reliable information that demonstrably predicts performance on the job.

Step 3: Apply the competency assessment outcomes in the selection process.

First, people who are tested should receive full disclosure of their results and how these will be used. This demonstrates the value the company puts on people. Naturally, employees need to know their strengths and development areas. External candidates must be treated respectfully so that the sponsoring company can be an employer of choice. The company must be briefed on how to use assessment outcomes: where individual employees fit best, how they can develop shortfalls, how job candidates can capitalize on strengths. I give hints on how to develop/manage candidates recommended to be hired. Of course, the hiring decision remains with the hiring manager but by using formal competency measurements this decision is broadened, is made more responsibly, and has demonstrably better long-term consequences in terms of lower turnover and higher performance.

This focused, systematic approach to predicting job performance through measuring key competencies that results in a kit does not only apply to selection issues, but is equally applicable to succession planning and career management problems. In sum, the major advantages of this focused and systematic approach to identifying leaders are: Substantially improved leader selection decisions--and more effective leaders; increased competitiveness and desirability as an employer; more-effective management of employees; maximized retention and minimized turnover of staff; optimized productivity of staff through high motivation and morale; sound succession and assignment planning, and improved articulation of training and development needs.

Michael Godkewitsch PhD, C. Psych
Consulting Psychologist & Partner