Mumbai, Janury 24: Is there a formula for developing leaders for businesses? Are there permutations of attributes that can help companies in separating the leaders from the followers? Finally, can managers be transformed into leaders by building on these specific attributes? ``Possibly,'' says the Dutch multinational Royal Philips Electronics experience.``The challenge faced by the HR manager today is to be able to partner the management in growing able leaders from across the organisation. At Philips, we have evolved a model that will help us do this,'' said managing director Philips India Limited, K Ramachandran, in a presentation made during the The Economist Intelligence Unit (EIU) HR Roundtable last week.
Developed by Philip NV two years ago the model for leadership development is currently under implementation at the multinational's Indian subsidiary Philips India Limited. The model superimposes on the existing HR processes - selection, performance appraisal, development planning, education andtraining and succession- a fifth parameter: Leadership Competencies.
``Leadership competencies are the common personal characteristics to be found in leaders which are critical for outstanding performance and are both observable and measurable,'' defines Ramachandran.
Following detailed interviews with 100 senior managers ``who delivered performance,'' Philips zeroed in on these characteristics which are integral to leaders. Thus evolved a framework which divides leadership competencies into two components: task-based and people-based. The task-based competenices include determination to achieve excellent results, marketplace focus and better ways of doing things. In terms of the people-based competencies, the person should demand top performance, inspire commitment and develop self and others.
The company has defined four levels for each of these competenceies, ranging between a high of `world class leadership' to a low of `demonstrates leadership potential'. A precise mechanism to measure the levelsof these competencies was subsequently put into place.
This Leadership Competency framework put together with the experience and professional skills of the managers and constitutes their `track record' within the organisation.
Following a cultural pilot exercise the process was launched within Philips India in the middle of last year as part of a global roll out. After building awareness among the senior management, development workshops were carried out to determine the existing levels of leadership competenices.
Here, with the help of basic exercises and simulation, a team of assessors comprising senior business heads evaluated 30 managers in the mid- to senior management level on all the leadership competency parameters.
Based on the results collected at the development centre, 360-degree evaluation, and the employee track record, individual training and development programmes were finalised. These were a combination of transparent sharing of information in a non-threatening manner, workingthrough cross-functional teams and constant interaction with superiors and mentors.
Even as the initial stage of the process is underway, the company plans to take the process further down the entry level management cadres.The challenges facing the HR manager according to Ramachandran are manifold. Besides working as partners in business they have had to ensure numeracy and processes that attract and nurture leaders. Measurable leadership performance indicators are key, explains Ramachandran: ``What gets measured gets done.'' Further, creating shared opinion and growing standards of leadership is crucial.
``In the process of establishing norms we have to benchmark not only with industry leaders but with the best-in-class internationally. For example, our lighting division benchmarks their logistics and movement with that of the computer industry,'' says Ramachandran. Finally, the ability to challenge conventional wisdom is important.
For Philips India, the effort should ideally transform into a crop ofleaders from within the company ranks. Says Ramachandran, ``In the next ten years I would like to see 90 per cent of the people moving into the top 50 positions at Philips from within the organisation.'' A tough target given the fact that Philips India has recruited more people in the top 50 positions from outside the organisation in the past five years-than ever before. But then who said nurturing leaders was easy?
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.