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Development and Coaching

of NextGen Leaders

Sattar Bawany

“Organizations move their leaders through positions of


r­ esponsibility and challenge to develop talent and ensure
capability for the future. These transitions are known as
“role to role” transitions, i.e. a leader who is successfully
performing in one role takes on another role with different
responsibilities. Successfully assuming a new leadership
role is almost never easy. It is more often challenging and
daunting—regardless of the amount of experience a leader
may have.”
Prof. Sattar Bawany (2014a)

Abstract: Talent management represents an organiza-


tion’s efforts to attract, develop, and retain skilled and
valuable employees. Its goal is to have people with
the capabilities and commitment needed for current
and future organizational success. An organization’s
talent pool, particularly its managerial talent, is often
referred to as the leadership pipeline (Charan et  al.
­
2000). However, one of the biggest challenges facing
­organizations today is the greater pressure to develop
Prof. Sattar Bawany is the CEO of the future or ­next-generation leaders faster in response
Centre for Executive Education (CEE).
He is also concurrently the Regional
to the c­hallenges ahead for business and HR leaders
Managing Director and C-Suite in a ­dramatically changing ­digital, volatile, uncertain,
Master Executive Coach of Executive complex, and ambiguous (VUCA) business landscape
Development Associates (EDA) in Asia (Bawany 2018).
Pacific. He is also the Adjunct Professor
How do organizations develop the next generation of
of Leadership and member of the
Advisory Board of the Curtin Graduate leaders? This article is designed to provide insights into
School of Business (CGSB) of Curtin and understanding of the best practices and contempo-
University, Australia. rary approaches to the development of future leaders of
Email: sattar.bawany@cee-global.com an organization with a focus on executive coaching as a
Website: www.cee-global.com
LinkedIn: www.linkedin.com/in/
development tool.
bawany
Keywords: Talent management; War for talent; High
potentials; Next-Generation leaders; Leadership
pipeline; Talent development; Executive coaching,
Transition coaching, Onboarding coaching

© Business Expert Press 978-1-94858-021-2 (2018) Expert Insights


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Development and Coaching of NextGen Leaders

Introduction competencies and skills, to lead and drive


Today’s dramatically changing work envi- the organization’s strategy successfully
ronment demands that organizations have now and in the future.
to continuously ensure that there is a robust
leadership pipeline ready to be d ­ eployed Today’s businesses face unprecedented
now and in the future. Identifying, assess- challenges operating in a global environ-
ing, selecting, and developing the next- ment that is increasingly volatile, uncertain,
generation or potential future leaders are, complex, and ambiguous (VUCA). Leaders
therefore, critical strategic objectives for are also confronted with increased compe-
ensuring a sustainable, competitive orga- tition, globalization, demand for growing
nization. The business case for doing so is social responsibilities, and a stream of tech-
clear as supported by extensive published nological revolutions causing disruption in
research (Bawany 2018). the marketplace. Hence organizations need
The high impact and cost of new leader to increase their leadership bench strength
derailing within the first year are stagger- and also ensure the availability of leaders
ing. As Michael Watkins (2003) states in today and tomorrow to take on the respon-
his book The First 90 Days, “studies have sibility to ensure the sustainability of the
found that more than 40 to 50 percent of organization (Bawany 2016).
senior outside hires fail to achieve results” One of the challenges of identifying
(p. 8). The reason for most of these failures high-potential individuals is the inherent
is not the lack of intelligence (IQ), skills, or complexity of making predictions about
­experience, but rather the inability of these how successful a person might be in the
executives to assimilate effectively into the long-term future. It involves defining what
new culture or new role and make the nec- you are trying to predict, assessing a per-
essary “mindset shift” as they go through son against the appropriate criteria, and
fundamental changes in roles. making predictions about future perfor-
Developing future leaders requires an mance. A wide range of issues needs to be
alignment between achievement of business considered, including the person’s capa-
goals and leaders’ skills to drive achievement bilities and motivations and the challenges
of those goals. To accomplish this, the orga- and opportunities associated with future
nization needs to start with the creation of a positions in the organization. This is differ-
business strategy, followed by a leadership ent from a selection decision where there
strategy, followed by a leadership develop- is a clear understanding of the specific job
ment strategy. It’s important to know the requirements for the position to be filled.
distinctions: In essence, the heart of the leadership
challenge that confronts today’s leaders is
■■ Business strategy: The roadmap of achiev- also applicable to next generation of leaders
ing the organization’s business goals. who will be expected to lead in situations of
■■ Leadership strategy: The organization’s ever greater volatility and uncertainty in a
plan for assigning leaders in key job roles globalized business environment, allied with
by defining the relevant competencies the needs to deal with scale, complexity, and
­including skills, knowledge, and experi- new organizational forms that often break
ences required to achieve the organization’s with the traditional organizational models
­desired current and future business goals. and structures within which many have
■■ Leadership development strategy: The learned their leadership trade (Bawany 2015).
organization’s plan for the development
of current and future leaders at all lev- Who Are the NextGen Leaders?
els to ensure they, individually and col- Broadly speaking, next-generation or future
lectively, have the crucial and relevant leaders are primarily the high potentials

2 © Business Expert Press 978-1-94858-021-2 (2018) Expert Insights


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Development and Coaching of NextGen Leaders

of the organization. A high-potential tal- and then transforming high-potential indi-


ent is often viewed as an employee who is viduals to a variety of developmental oppor-
­assessed as having ability and organizational tunities and experiences (Bawany 2014b).
commitment, aligning to the organization’s Organizations are facing unprecedented new
values, and having demonstrated the com- leadership challenges, including d ­ eveloping
petencies and skills as well as the motivation different generations of leaders likely to
necessary to rise to and succeed in more be from Gen Y or Millennials, meeting the
senior positions in the organization. Each demand for leaders with global fluency and
­organization will have its own definition of flexibility, building the ability to innovate
high-potential talent, but in essence, the pro- and inspire others to perform, and acquir-
cess and criteria for assessment and identi- ing new levels of understanding of rapidly
fication of high potentials are quite similar changing and emerging technologies and
­between o ­ rganizations (Bawany 2018). new disciplines and fields. As experienced
A robust leadership pipeline is critical leaders, managers, and professionals continue
to driving strategy and growth so organiza- to leave an organization, their intellectual
tions may achieve their goals. But, while capital and tacit knowledge, unless codified,
many organizations have devoted consider- will be lost, creating tremendous c­ hallenges
able resources to the development of these at a time when the market is growing more
next-generation or future leaders, few have global and ­dynamic. This translates to
a readily available pool of these leaders who tougher competition in the marketplace,
are ready to take on greater responsibilities making the search for high-potential people
and to meet the daunting challenges of the externally more difficult and future success
future. While the severity of the issue var- more ­elusive. Further, there is a sense of
ies among organizations and industries, it’s urgency for organizations today to accelerate
clear throughout the business world that the the time to competence, which compounds
demand for these future leaders is greater the challenge of building a strong leadership
than supply and as a result, many organi- pipeline from within (Bawany 2018).
zations face a shortage of leadership talent. The relevant leadership d ­evelopment
The complexity and fast-changing nature intervention, including e ­ xecutive c­ oaching
of the hypercompetitive global economy and leadership d ­ evelopment training pro-
have created the demand for new lead- grams, may be ­strengthened, b ­ roadened,
ership mindsets, skills, and c­apabilities. and deepened to  ­include  ­inspiring  an
With the failure of leadership ­development d  ­engaging others, as well as cognitive
­programs to develop people fast enough to ­readiness skills and emotional and social
fill the new and changing roles required for intelligence competencies. These capa-
success, many organizations are in a pre- bilities can be addressed by incorporating
dicament and their long-term sustainabil- specific activities and exercises designed
ity is in question. to increase awareness of their impact and
Having a robust leadership pipeline importance in familiar techniques, such
­remains one of the critical talent manage- as case studies or applicable business
ment issues facing organizations around simulations.
the world operating in a VUCA business Additionally, opportunities for appli-
environment as this would contribute cation and practice can be provided in
toward the development of a sustainable
­ experience-based approaches where par-
competitive advantage of the organization. ticipants work to apply the concepts and
This is achieved by identifying and culti- skills directly to real business issues, while
vating emerging talent early while enhanc- colleagues and facilitators provide feedback
ing ­organizational capability. Developing a based on behaviors they observed during
leadership pipeline starts with identifying their work together.

© Business Expert Press 978-1-94858-021-2 (2018) Expert Insights


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