DDI's Leadership Architects Reveal a Blueprint for 21st Century Leaders.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--Jan. 21, 2003

There is a New Set of Criteria and a New Approach for Assessing

Leadership Potential -- It's About Personal Attributes

There are lessons to be learned from the public leadership failings of Enron, WorldCom and their peers this year. Most organizations are assessing leadership potential incorrectly by basing it strictly on past performance, according to Development Dimensions International (DDI). A leader's personal attributes are just as critical.

"Characteristics like greed and lack of authenticity have gotten in the way of organizational success," said Bob Rogers, President of DDI, a global human resources consulting company. "We have to do a much better job of identifying who are the right leaders and who are the wrong leaders."

Industry knowledge, professional experience and management skills are all prerequisites for leadership roles. However, the last thirty years of research by DDI and other organizations has unveiled a new set of criteria for identifying potential.

Personal attributes, from adaptability and humility to tolerance for ambiguity, are critical in assessing leadership potential to identify those individuals who hold the most promise for the organization's future. Examining the flawed characteristics of some now-dethroned leaders is key to avoiding a repeat of the same leadership mistakes. Rogers said: "Those leaders were not authentic. They did not bring out the best in people. And they were not receptive to feedback."

Big ego = big problems

Recruiting star senior executives with a big name and a big price tag is a common practice for organizations, but Rogers warns of the damage. Often, they lack a cultural fit with the organization and don't share the same values and goals. The initial PR bang of the hire is followed by an echo of disillusionment.

Ego can be a double-edged sword -- although it is important for those in leadership positions to have a high level of confidence, it is a problem when the ego becomes a negative force, engulfing the position and actually overshadowing the goals of the organization.

"When companies really have problems is when big ego senior leaders come in from the outside and have all of the answers and think they are going to change everything and then hit barriers because they don't fit with the cultural paradigms at the organization," Rogers said. Those cultural elements can be style of leadership, degree of teamwork and how credit is shared.

The big ego leader is driven by greed rather than the legacy of the organization, which is reinforced with high salaries and inflated compensation packages. Greed and ego have been a destructive combination for many companies recently.

In contrast, the strong ego leader has the confidence to make decisions and has a passion for results that will benefit the organization -- not themselves. They share credit and center stage. When things go wrong, they look at themselves first, learn from their mistakes and are strong enough to admit their shortcomings.

Look inside

Fifty percent of leaders brought into a company from the outside fail. So DDI is sending businesses back to the drawing board: pay more attention to the potential that lies in your workforce. There is a higher success rate of growing leaders from within the organization.

Most people bring their personal attributes with them on their first day of work -- organizations need to recognize these traits and focus leadership development on those with the most potential. "The linchpin is identifying those potential leaders early enough to groom them so they are already within the organization when they are needed," Rogers said.

Until recently, there has not been a focus on developing leaders internally. He recommends examining the landscape of the organization for people who demonstrate potential, some of whom might be early in their careers. Begin that process during an employee's late 20s and early 30s to ensure that their personality is fully developed.

Individuals who are good performers need to be assessed on the 10 factors (grouped in four categories) that DDI has defined as being critical to the success of a leader. Early identification of these factors dramatically improves the predictability of that leader's performance.

However, these traits are not easily trainable, which makes it critical to do an accurate job of assessing them. "These are fundamental parts of the personality that are developed early," Rogers said.

Leadership Potential Factors

-- Leadership Promise

Has the propensity to lead -- are willing to step up to the plate in the absence of leadership

Brings out the best in people -- people gravitate to them

Authenticity -- has sincerity and humility

-- Personal Development Orientation

Receptivity to feedback -- has the ability to admit mistakes and learn from them

Learning agility -- includes curiosity and ability to apply learning experiences

-- Balance of Values and Results

Cultural fit -- shares values with the organization

Passion for results -- is driven to create a legacy for the organization

-- Mastery of Complexity

Adaptability -- can adjust to other cultures and situations

Conceptual thinking -- looks at the big picture and identifies strategic issues

Ability to navigate ambiguity -- able to make decisions without all of the information

Once performers with the right attributes are identified, organizations should establish an accelerated development program to prepare their future leaders.

Available for interviews: Bob Rogers, President of DDI; Audrey Smith, Senior Vice President, Consulting for DDI.

To schedule an interview or for more information, contact Jennifer Pesci-Kelly at 412/257-3862; [e-mail].

About DDI

Since 1970, Development Dimensions International has worked with some of the world's most successful organizations to achieve superior business results by building engaged, high-performing workforces.

We excel in two major areas. Designing and implementing selection systems that enable you to hire better people faster. And identifying and developing exceptional leadership talent crucial to creating a workforce that drives sustainable success.

What sets DDI apart is realization -- we focus on the needs of our clients and have a passion for their success. Our 1,000 associates, located in 75 offices and 26 countries, work with each client to craft and implement solutions that improve people's performance

The outcome? You bring the best people onboard, who get up to speed faster, contribute more and stay longer -- giving you the ultimate competitive advantage. To learn about the results our clients' experience, visit www.ddiworld.com.