Ram Charan - The Leadership Pipeline: How to Build the Leadership Powered Company
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Table of Contents
THE
LEADERSHIP
PIPELINE
Copyright 2011 by John Wiley & Sons, Inc. All rights reserved.
Published by Jossey-Bass
A Wiley Imprint
989 Market Street, San Francisco, CA 94103-1741www.josseybass.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.
Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.
Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.
Library of Congress Cataloging-in-Publication Data
Charan, Ram.
The leadership pipeline : how to build the leadership powered company Ram Charan, Stephen Drotter, James Noel. 2nd ed.
p. cm.
ISBN 978-0-470-89456-9 (hardback)
1. Leadership. 2. Industrial management. I. Drotter, Stephen J. II. Noel, James L., 1943- III. Title.
HD57.7.C474 2011
658.4'092dc22
2010034709
9780470921463 (ebk)
9780470921470 (ebk)
9780470921487 (ebk)
Foreword
This model has changed the dialogue at my table, says the CEO of a major fast-moving consumer goods company. We now focus more on strategy and talent, not just revenue and volume.
The Leadership Pipeline idea and model has helped us push accountability down the organization in a coherent way, says the CEO of a major mining company. It has freed us at the top to focus more on the future while lower levels drive productivity and early operating results.
We are now focusing our coursework on the right skills for the right level.
Our succession planning is now anchored in reality about what potential means and what it looks like.
I can do better coaching of my people, given the improved clarity of expectations for them and for me.
The overwhelmingly positive response to the first edition of The Leadership Pipeline has been most gratifying. Our discussions with readers and our work as consultants have provided us with invaluable feedback about the Pipeline modelfeedback that has helped make this model even more effective in practice than when we first wrote about it. We want to pass on the lessons weve learned so that companies can maximize the Pipelines value.
Since the first edition of this book was published, weve worked with over one hundred companies using this framework. Many of the best and most successful corporations in the world have adopted the Leadership Pipeline model as the core framework for their efforts on the human side of their businesses. Built around the common leadership passages all leaders go through, it helps organizations select, develop, and assess based on specific responsibilities and work values at each leadership level.
Our approach to revising this work is a bit unorthodox: we decided not to go in and change the individual chapters with all new examples and context. The reader will notice we talk about certain players in business who are no longer in the role they are cited in. Because the examples, although no longer all current, serve the point we are trying to make, we decided to leave them and instead to add two significant sections at the end of each chapter. The first, Observations from the Field, allows us to update our model, share some additional stories, and add some advice based on almost ten years of experiences working with companies around the world. We have also included the answers to frequently asked questions.
Our hope is that this new and improved version of our work continues to be effective and used easily by all.
Preface to the Revised Edition: Observations from the Field
As weve worked with a variety of organizations to put the Pipeline framework into practice, weve found a number of serious flaws with development efforts that must be corrected to enable sustained operational and financial success. At a time when organizations are enormously dependent on internal development of present and future leaders, these efforts are falling short. Here are four failings the Pipeline model is designed to correct:
Deep-Seated Development Errors
Line managements dissatisfaction with human resources has not abated. We believe one critically important reason is the lack of an enduring central architecture. Imagine a company that has a chief financial officer but doesnt have a general ledger, a budget process, a cost accounting system, and a capital allocation process that are tied together. That finance officer wouldnt have much success. Finances architecture enables the entire organization to work with and talk about financial matters in a consistent way. Companies need an enduring architecture to focus human resource processes and programs. The architecture should set common standards for both performance and potential, differentiated by layer of management. It should also establish language and processes to address issues, identify problems, and exploit opportunities effectively, as well as data for making decisions about everything from job transitions to performance improvement.
Weve found that most development efforts lack this central architecture. Although most HR departments make sincere and sometimes even heroic efforts at leadership development, when these efforts dont produce the desired results, they stop spending money on development, or they replace an existing program with the next one, or they try a third program and then a fourth. Changing programs often means one leader emerges speaking one language, while another leader from a different program speaks a second language. These changes in development content and philosophy create distrust. Because theres no cumulative effect from a comprehensive but flexible architecture, theres no solid base for development purposes. This book outlines a central architecture that you can adapt to your companys specific situation.
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