November, 2005, Volume
10, Number 2
CONTENTS
Leading with Resilience: Leadership Conference at Wharton on June 13
Building Leadership: Identifying Success Factors that Drive Sales
Leadership at Citigroup Private Bank
Globally Responsible Leadership: Fostering the Next Generation of
Business Leaders
Exhibit A;
Exhibit B
leading with resilience:
Leadership Conference at Wharton on June 13
The next Annual Wharton
Leadership Conference is focused on “Leading with Resilience: Coming
back from Challenge and Adversity.” Previously confirmed
speakers include Jim Collins (author of Good to Great)
and Sylvia Montero (SVP-HR at
Pfizer),
and newly
confirmed speakers include
David
Breashears is a filmmaker and mountaineer. He has worked on more than
two dozen films, including Seven Years in Tibet and
Cliffhanger; he has directed and produced IMAX films Everest
and Kilimanjaro; and he is the recipient of four
National Emmy Awards for achievement in cinematography.
Thomas
A. Stewart joined Harvard Business Review as the editor in
November, 2002. Prior to joining HBR, he was the editorial director of
Business 2.0 and a member of the board of editors of Fortune.
He is the author of Intellectual Capital: The New Wealth of
Organizations (1997) and The Wealth of Knowledge: Intellectual
Capital and the Twenty-First Century Organization (2001).
The editor of the Wharton Leadership Digest – Michael Useem,
professor of management and director of the Leadership Center at Wharton
– will also serve as a speaker.
Information on the conference is
available by clicking
here and online registration for the conference is available
here.
building Leadership:
Identifying Success Factors that Drive Sales Leadership at Citigroup
Private Bank
By Michael Barriere and John
Leto
The
Citigroup Private Bank (CPB) employs more than 4,000
employees
across 31 countries, manages more than $220 billion in client
business volumes, and serves the financial needs of more than 26,000 of
the world’s most successful and influential individuals and families.
Over the past four years, we have experienced record growth and success,
and have built into our strategy a focus on actively managing the
development of our employees so they can effectively meet and adapt to
changes in strategic objectives. The foundation for managing talent has
been our linkage of competency-based assessments with performance
outcomes in order to identify critical success factors. We have then
embedded the critical success factors into a professional development
platform and talent succession process.
One of the most
strategic roles within the Citigroup Private Bank is the Global Market
Manager (GMM). GMMs report directly to Regional Presidents representing
Asia, Europe, Latin America and the US, and they are responsible for
over 95 percent of the Private Bank’s revenue. As the organization’s
most senior sales leaders, the 43 globally dispersed GMMs play a
critical role in developing and executing the Private Bank’s strategy
within their local markets.
Identifying Critical
Success Factors for Sales Leadership
The approach to developing and retaining
world-class sales leaders began with identification of the success
factors that drive the performance of the Global Market Managers.
Success factors are defined as the competencies that are common to
top-tier performers and differentiate them from average performers.
Understanding how top-tier performers manage teams and lead the
organization in revenue growth, assets under management, and client
acquisition provides the opportunity to replicate their success in
others.
The process for determining the success factors for
sales leadership consisted of three steps:
1. Understanding how the GMM role supported the
strategic objectives of the business.
2. Developing a model that captured critical areas
of competency for GMMs.
3. Conducting an analysis of the impact of the GMM
competencies on the financial performance of their units.
Once we understood how the Global Market Manager
role supported the execution of the Citigroup Private Bank’s strategy,
we conducted a rigorous interviewing process of incumbent top-tier GMMs
and senior leaders across the organization. From this process, we
identified 41 specific behaviors that could be grouped into seven areas
that constitute the competency model:
1. Develop
Sales Strategies: Partner with leadership team members to develop
client, market, and product specific sales strategies.
2. Drive Sales
Results: Track sales performance, streamline processes, and
facilitate the delivery of client solutions.
3. Build &
Maintain Client Relationships: Prioritize client issues and assist
bankers in assessing client needs and developing recommendations.
4. Build
Effective Teams: Attract and retain talented individuals, establish
a culture of teamwork, and organize people, tasks, and activities to
maximize effectiveness.
5. Coach &
Develop Individuals: Pinpoint development needs and coach
individuals, motivating team members to acquire product and sales
acumen.
6. Navigate the
Citigroup Organization: Identify and initiate cross-referral
opportunities and influence others across the organization to support
client initiatives.
7. Promote
Integrity & Trust: Communicate risk and reduce exposure for the
client and business.
Our next step was
to conduct a multi-source assessment of the Global Market Managers on
the 41 behaviors in these seven competency areas: A total of 1,100
assessments of the GMMs were completed by their Regional Presidents,
peer GMMs, bankers (who directly report to the GMMs), and internal
clients (heads of products and functions), as summarized in
Exhibit A.
To identify the drivers of successful sales
leadership, we conducted data analyses using the banker ratings as the
most complete and consistent data source (a total of 529 bankers rated
the 43 GMMs). Exhibit B shows the distribution
of banker ratings of GMMs relative to the GMMs’ revenue growth from 2002
to 2003. The GMMs in the top 20 percent, as defined by their overall
mean rating across all 41 behaviors, differed significantly from their
peers in financial performance, such as client net revenue growth. The
average client net revenue growth for the top 20 percent was 11 percent,
whereas their peers in the middle 60 percent only demonstrated 1 percent
growth. Those GMMs in the bottom 20 percent actually showed a 3 percent
decline.
We then analyzed which of the 41 GMM behaviors were
most responsible for the differences in the financial outcomes. Using
correlational analysis, we found statistically significant relationships
between 10 behaviors and annual revenue growth.
Most of the10 behaviors fell within the first
and fifth competency areas: develop sales strategies, and coach &
develop individuals. The most predictive single behavior was,
“Pinpoint development needs and coach individuals in expanding their
capabilities and progressing to the next level.” The GMMs received the
lowest overall average rating on this behavior, yet the behavior
displayed the highest correlation with revenue growth. This finding
revealed that the few GMMs who were highly proficient in coaching and
developing their bankers were among the most successful in increasing
revenue year over year.
Application of Sales
Leadership Success Factors
Prior to developing a Global Market Manager
competency model, there was some ambiguity within the bank about what
should define the GMM role. Some GMMs were functioning as business
managers overseeing sales, marketing, and operational efforts, while
others acted as team leaders/producers. The development of the GMM
competency model clarified what was expected from the role, and it
defined the ideal GMM through specific behaviors that differentiated
top-tier from average performers. The multi-source assessment process
enabled GMMs to increase self-awareness of areas where they fell short
of the ideal behaviors.
The coaching and sales-strategy development
findings provided the foundation for designing our talent management
initiatives including professional development, succession planning, and
selection processes to help strengthen and inculcate the success factors
in current and future GMMs. Specifically, we designed a coaching
program for GMMs and established partnerships with leading business
schools to deliver programs on business strategy and leadership. In
addition, these success factors helped prioritize development activities
for bankers who had the potential to progress into a sales leadership
role. We provided high potential bankers with opportunities to gain
experience in managing people and developing strategy, and that enabled
us to build a pool of internal candidates for the GMM role.
Note: Michael Barriere is the Global Head
of Human Resources Strategy and Development for the Citigroup Private
Bank, he is responsible for the Private Bank’s global initiatives
involving performance management, human capital development, and
organizational effectiveness, and he can be reached at
michael.barriere@citigroup.com. John Leto is the Chief
Administrative Officer for the Citigroup Private Bank, and he is
responsible for human resources and professional development for the
Private Bank as well as managing the development of products and
services for ultra-high net worth individuals.
Globally Responsible Leadership:
Fostering the Next Generation of Business Leaders
Excerpted
from the
Website of the
Globally Responsible Leadership Initiative of the European Foundation
for Management Development
“Globally responsible
leadership is the global exercise of ethical, values-based leadership in
the pursuit of economic and societal progress and sustainable
development. It is based on the fundamental recognition of the
interconnectedness of the world.” –
Globally Responsible Leadership: A Call for
Engagement (2005).
The
Globally Responsible Leadership Initiative is the result of a year of
intensive work by a
group
of senior
representatives from
companies,
business schools, and
centers
for leadership learning from five continents. The group was formed by
the
European Foundation for Management Development (EFMD) with the support
of the United Nations Global Compact.
Businesses
are among the most influential institutions worldwide and have a
tremendous opportunity to shape a better world for existing and future
generations. The obligation of the globally responsible business is to
create economic and societal progress in a globally responsible and
sustainable way.
The Initiative aims
to promote understanding of globally responsible leadership and to
develop its practice.
The
Initiative is developing a body of knowledge on globally responsible
leadership and encouraging its practice in companies worldwide.
Specific action targets include:
-
making global responsibility a foundational
requirement within the accreditation systems for business schools.
-
piloting new best practice approaches to learning
within leading business schools and companies so that business
leaders not only know what is expected
of them, but also practise it.
-
developing self assessment tools for individual
and corporate performance, measured against clear and explicit
concepts of global responsibility.
-
advocacy to enable globally responsible leaders
to flourish and become role models of business behaviour.
“It is
our aim to establish the norms and expectations of business behaviour
for the 21st century and ensure that the emerging generation of business
leaders live by them. It is about the need to overhaul business
education worldwide to provide a foundation of global responsibility in
every area of learning.”
–
Anders
Aspling, EFMD board member and chair of the Initiative
The
European Foundation for Management Development has, on behalf of the
founders of the Initiative, published Globally
Responsible Leadership: A Call for Engagement. The report outlines
both fundamental conceptual issues of global responsibility and, as its
title suggests, is also an invitation to companies, business schools and
other learning organisations to become involved in the work.
Its
contents include a re-definition of the purpose of business, ethics for
global responsibility and practical proposals on transforming business
education.
The report addresses the substantial changes required in
the way business schools prepare the next generation of leaders. It
identifies not only curriculum issues but also recognizes that
engendering global responsibility within leaders will require a much
broader approach to learning which goes beyond the cognitive acquisition
of knowledge.
The 21
companies,
business schools, and centers for leadership learning whose senior
representatives have worked together over the past year and, as a result
of that partnership, founded the Initiative are:
Aviva (UK)
Barloworld Limited (South Africa)
Bordeaux Business School (France)
Groupe Caisse d’Epargne (France)
China Europe International Business School – CEIBS (China)
ESSEC Business School (France)
Fundação Dom Cabral (Brazil)
IBM
IESE Business School (Spain)
INSEAD (France and Singapore)
Instituto de Empresa (Spain)
Lafarge (France)
London Business School (UK)
Pepperdine University Graziadio School of Business and Management (USA)
Petróleo Brasileiro SA - PETROBRAS (Brazil)
Queen’s University School of Business (Canada)
Responsible Business Initiatives (Pakistan)
Telefonica (Spain)
The Oasis School of Human Relations (UK)
University of Management and Technology (Pakistan)
University of South Africa, Centre for Corporate Citizenship (South
Africa)
The European
Foundation for Management Development (www.efmd.org)
is an international network with more than 500 member organizations from
academia, business, public service and consultancy in 65 countries.
Note:
For
further information on the launch of the initiative, contact
Anders Aspling
at
anders.aspling@aspling.net or
click here.
Copyright 1996-2005, Wharton Center for
Leadership and Change Management
University
of Pennsylvania.
