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BuildingIn-houseLeadershipand
ManagementDevelopmentPrograms:
TheirCreation,Management,and
ContinuousImprovement
Rothwell,WilliamJ.;Kazanas,H.C.
GreenwoodPublishingGroup
1567202586
9781567202588
9780585384276
English
Executives--Trainingof,Supervisors-Trainingof,Organizationalchange--Study
andteaching,Leadership.
1999
HD30.4.R681999eb

658.4/07124
Executives--Trainingof,Supervisors-Trainingof,Organizationalchange--Study


andteaching,Leadership.


Pagei

BuildingIn-House
LeadershipandManagement
DevelopmentPrograms


Pageii
Thispageintentionallyleftblank.


Pageiii
BuildingIn-House
LeadershipandManagement
DevelopmentPrograms
TheirCreation,Management,
andContinuousImprovement
WilliamJ.Rothwell
andH.C.Kazanas


Pageiv
LibraryofCongressCataloging-in-PublicationDataRothwell,WilliamJ.,

1951–
Buildingin-houseleadershipandmanagementdevelopment
programs:
theircreation,management,andcontinuousimprovement/WilliamJ.
RothwellandH.C.Kazanas.
p.cm.
Includesbibliographicalreferencesandindex.
ISBN1–56720–258–6(alk.paper)
1.Executives—Trainingof.2.Supervisors—Trainingof.
3.Organizationalchange—Studyandteaching.4.Leadership.
I.Kazanas,H.C.II.Title.
HD30.4.R681999
658.4′07124—dc2199–14846
BritishLibraryCataloguinginPublicationDataisavailable.
Copyright©1999byWilliamJ.RothwellandH.C.KazanasAllrights
reserved.Noportionofthisbookmaybereproduced,byanyprocessor
technique,withouttheexpresswrittenconsentofthepublisher.
LibraryofCongressCatalogCardNumber:99–14846
ISBN:1–56720–258–6
Firstpublishedin1999
QuorumBooks,88PostRoadWest,Westport,CT06881
AnimprintofGreenwoodPublishingGroup,Inc.
www.quorumbooks.comPrintedintheUnitedStatesofAmerica
ThepaperusedinthisbookcomplieswiththePermanentPaper
StandardissuedbytheNationalInformationStandardsOrganization
(Z39.48–1984).
1098765432


Pagev

To
MarcelinaRothwellandNuriaKazanas


Pagevi
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Pagevii

Contents
Preface

ix

I.LeadershipandManagementDevelopment:BackgroundIssues 1
1.DefiningLeadershipandManagementDevelopment

3

II.PlanningandDesigningtheLeadershipandManagement
DevelopmentProgram

31

2.FocusingaLeadershipandManagementDevelopmentProgram 33
3.IdentifyingLeadershipandManagementDevelopmentNeeds

53


4.EstablishingaLeadershipandManagementDevelopment
Curriculum

75

5.AdministeringaLeadershipandManagementDevelopment
Program

89

III.Selecting,Planning,andUsingFormal,Informal,andSpecial
Methods

115

6.HowShouldRecruitmentandSelectionBeUsedasPartofa
LeadershipandManagementDevelopmentProgram?

117

7.PlanningandUsingFormalMethods

127

8.PlanningandUsingInformalMethods

181

9.PlanningandUsingSpecialMethods


203


Pageviii
IV.EvaluatingLeadershipandManagementDevelopmentMethods
andPrograms
221
10.EvaluatingMethodsandPrograms

223

11.Epilogue:SpecialIssuesinLeadershipandManagement
Development

243

Bibliography

259

Index

273


Pageix

Preface
Managementplaysthekeyleadershiproleinplanninganddeploying
organizationalassets.Managementdecisionsdramaticallyaffectthelives

ofotherpeople.Indeed,managementemployeesmakestrategic
decisionsaboutlayoffs,mergers,acquisitions,expansions,union
negotiations,andbankruptcyfilings.Theyalsomaketacticaldecisions
aboutworkgroupstructureandindividualpayincreases,promotions,
demotions,dismissals,andtransfers.Whilepresenttrendspointtoward
lessarbitrarymanagementdecisionmakinginanefforttoimprove
productivityandproductorservicequalitythroughincreasedemployee
involvement,managementcontinuestoplayakeyleadershiprole
whethereffortsarefocusedonauthoritativelydirectingtheworkofothers
orparticipativelyguidingit.
Atthesametime,workersatalllevelsareincreasinglybeingencouraged
—andcalledupon—toexertleadership.Indeed,leadershipisnotfor
managementalone.Forthisreason,then,manyforward-thinking
decisionmakersaresponsoringLeadershipandManagement
Development(L&MD)programsintheirorganizations.Thegoalofsuch
programsistoencourage,support,andnurturebothleadershipand
managementdevelopment.
THEPURPOSEOFTHISBOOK
Manypeopleweknowhavebeenaskedtoestablish,maintain,renew,or
evaluateanL&MDprogram.Rarelydotheyknowwheretoturnforhelp.
Theyinventtheirownjobdescriptionsandstruggletosatisfythe
(sometimesconflicting)preferencesofexecutives,managers,and
supervisorswhoseetheneedforaplannedL&MDprogrambutdonot
knowhowtoestablishandoperateonesuccessfully.


Pagex
WhilemanybooksandarticleshavebeenwrittenaboutL&MD,few
booksprovidepracticalguidanceforthosestartinguporrenewinga
plannedL&MDprogram.Wewrotethisbooktoserveasapractical,

how-to-do-itmanualforestablishingandadministeringaplanned
ManagementDevelopment(L&MD)programgearedtoaddressingthe
training,education,anddevelopmentneedsofsupervisors,managers,
executives,andotherswhoexertleadershipinorganizationalsettings.Its
purposeistoslakethegrowingthirstforinformationaboutsuccessfulL&
MDprograms.
Youmayhaveheardalreadythatmanylargeorganizationshaveenjoyed
immensesuccesswithplannedL&MDprograms.Smallorganizations
havealsobenefitedfromthem,thoughtheirtriumphsareusuallyless
widelypublicized.Manyofyoumayhavealreadyworkedin—orvisited—
high-performingorganizationsinwhichL&MDprograms,whilenot
overtlyvisible,playimportantrolesinstrategicandtacticaldecisionsand
actions.
Whateveryourinterests,thisbookisintendedtogiveyouuseful,
practicalinformationonhowtoplan,establish,manage,operate,and
evaluateaplannedL&MDprograminanorganizationalsetting,based
onwhatisknownaboutbestpractices.
SOURCESOFINFORMATION
Aswetookupthetaskofwritingthisbook,wedecidedthatitwas
importanttobaseitonstate-of-the-artpractices.Tothatend,we
consultedseveralmajorsourcesofinformation:
1. Atailor-madesurvey.Asaninitialstepinresearchingthisbook,
WilliamJ.RothwellsurveyedL&MDprofessionalsin1998about
practicesintheirorganizations.Thesurveyresultsarepublished
inthisbookforthefirsttime.
2. Aliteraturesearch.Weconductedanexhaustiveliteraturesearch
onL&MD.Weprovidekeyreferencesthroughoutthebooksoyou
candelvefurtherintoissuesofspecialinteresttoyou.
3. Firsthandexperience.Thefirstauthorofthisbookisan



experiencedL&MDprofessional.Thefruitsofhisexperienceare
reflectedinthisbook.
THESCHEMEOFTHISBOOK
BuildingIn-HouseLeadershipandManagementDevelopmentPrograms
iswrittenprimarilyforL&MDspecialists,humanresourcedevelopment
(HRD)specialists,WorkplaceLearningandPerformance(WLP)
practitioners,andhumanresourcemanagers.Butthebookalsocontains
valuableinformationforchiefexecutiveofficers,chiefoperatingofficers,
generalmanagers,universityfacultymemberswhodoconsultingonL&
MD,andotherpeoplewhobearresponsibilitiesfordeveloping
managementtalent.
Thebookisdividedintofourmajorparts.PartIconsistsofonechapter,


Pagexi
whichservesasthebook’sprologue.Initweprovidebackground
informationaboutL&MD.Morespecifically,wedefineaplannedL&MD
program,distinguishbetweentraining,education,anddevelopment,
explainthepurposesofaplannedL&MDprogram,describethescope
ofL&MDactivitiesintheUnitedStates,distinguishplannedfrom
unplannedL&MDefforts,summarizemajorbarrierstoaplannedL&
MDprogram,andexplainwaystoovercomethosemajorbarriers.
PartIIconsistsofChapters2through5.Itfocusesonplanningand
designingL&MDprograms.


Chapter2describeshowto
1. Setupacommittee
2. DeterminethepurposeofaplannedL&MDprogram

3. Establishprogramgoalsandobjectives
4. Targetgroupstobeserved
5. Prepareaprogrampolicyandphilosophy
6. Prepareaflexibleactionplantoguideprogramstartup
7. Establisharegularscheduletoreviewprogramresults
TheseareinitialstepsinthestartupofmostplannedL&MDprograms.
InChapter3weturntoidentifyingL&MDneeds.Thischapteris
importantbecauseL&MDiscarriedouttomeetindividual,group,and
organizationallearningneedsanddesignedtoimproveindividual,group,
andorganizationalperformance.Wedistinguishbetweenlearningand
nonlearningneedsandexplainwhencorrectiveactionsotherthan
training,education,ordevelopmentarewarranted.Themostimportant
partofthischapterfocusesonmethodsforcollectingandanalyzing
informationaboutL&MDlearningneeds.
InChapter4wedescribehowtoestablishalong-termlearningplanto
meetpredictablelearningneeds.Wecallsuchaplanacurriculum,and
weexplainhowacomprehensiveL&MDcurriculumisdesignedand
summarizedifferentwaysbywhichtodesignanL&MDcurriculum.


Chapter5posesthefollowingquestions:
1. WhereshouldtheL&MDfunctionbepositionedinthe
organization’sreportingstructure?
2. Whatrewardsorincentivesshouldbeofferedtomanagementto
encouragememberstoacceptresponsibilityfordeveloping
themselvesandthosereportingtothem?
3. WhatkindofleadershoulddirecttheplannedL&MDprogram?
4. Howshouldtheprogramleaderberecruited,selected,and
oriented?
5. Howshouldinternalstaffmembersandexternalvendorsbe

selected,oriented,andtrained?
6. HowshouldplannedL&MDactivitiesbescheduled?


Pagexii
1. Howshouldbudgetingbehandled?
2. WhatrecordsofL&MDactivitiesshouldbekept?
3. HowshouldL&MDprogramactivitiesbepublicized?
PartIII,consistingofChapters6through9,describesformal,informal,
andspecialL&MDmethods.Weusethetermmethodtomeanan
organizedwaybywhichtomeetlearningneedsandthusbringabout
individualorgroupchangethroughlearning.Formalmethodsare
planned.Theyareusuallyfocusedonmeetinggrouplearningneeds.
Informalmethodsarenotplanned.Theyareusuallyspontaneously
focusedonmeetingindividualneeds.Specialmethodsareonthecutting
edgeofpractice.Sometimestheycanbecontroversial.
Chapter6providestwomodelstohelpselectappropriateL&MD
methodstomeetidentifiedneeds.
Chapter7focusesonplanningandusingformalL&MDmethods.These
methodsincludesuccessionplanningprograms,managementcareer
planningprograms,internalgrouptrainingprograms,externalgroup
trainingprograms,externaleducationprograms,jobrotationprograms,
andpositionassignmentprograms.
Chapter8focusesonplanningandusinginformalL&MDmethods,such
ason-the-jobmanagementtraining,on-the-jobmanagementcoaching,
managementmentoringorsponsorship,managementself-development,
andmanagementself-study.
Chapter9focusesonplanningandusingspecialL&MDmethods.
Amongthem:adventurelearning,NewAgeTraining(NAT),andaction
learning.

PartIVconsistsofChapter10only.Inthischapterwedefineevaluation.
Wealsodescribedifferenttypesofevaluation,keyobstaclesto
evaluation,methodstoovercomethoseobstacles,andastep-by-step
approachforconductingaprogramevaluation.


TheEpiloguefocusesonthreespecialissuesaffectingL&MD:
globalism,downsizing,andteam-basedmanagement.Ouraiminthis
finalchapterisnottoaddresstheseissuesexhaustively;rather,we
explaintheissuesandprovidegeneralguidanceaboutreviewingand
revampingL&MDprogramsinlightoftherecent,pervasiveinfluenceof
theseissues.
Finally,aBibliographyclosesthebook.Itcontainsnotonlythenotesfrom
allchaptersbutalsoadditionalresourcesthatcanleadreadersonto
othercurrentworksandresearchonLeadershipandManagement
Development.


Page1



PartI
LeadershipandManagementDevelopment:Background
Issues
PartIprovidesbackgroundinformationaboutLeadershipand
ManagementDevelopment(L&MD).WeintroduceChapter1witha
realisticcasestudy.PlannedL&MDprogramsoftenoriginatefrom
effortstohandleanisolatedcrisisliketheonedramatizedinthecase
study.InChapter1wealso:

DefineaplannedL&MDprogram
Distinguishbetweenmanagementtraining,education,and
development
ExplainthereasonsforaplannedL&MDprogram
DescribethescopeofL&MDactivitiesintheUnitedStates
DistinguishbetweenplannedandunplannedL&MDefforts
SummarizemajorbarrierstoaplannedL&MDprogram
Explainwaystoovercomethosemajorbarriers


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Page3

Chapter1
DefiningLeadershipandManagementDevelopment
INTRODUCTORYCASESTUDY
JosephineIronsisworried.Asexecutiveinchargeofalargedivisionina
prominent,well-known,andfinanciallystablebank,shehasjustreceived
wordthatLeahSmith,oneofhermostexperiencedsupervisors,will
retireinthreemonths.Leah,a23-yearbankveteran,supervisesa
criticallyimportantworkunitof30employees.Leahhasalsobeenan
outstandingworkerandhasbeeninfluentialinmakingmanypositive
changestoherworkunit.
TheannouncementofLeah’sretirementdoesnotcomeasacomplete
surprisetoJosephine.Thebankrecentlyextendedagenerousearly
retirementoffertolong-serviceemployees.Josephinehasknownforsix
monthsthatLeahwouldqualify,butLeahdidnotindicateuntilrecently

thatshewouldaccepttheoffer.Amidpainfulcost-cuttinganddownsizing
efforts,Josephine’sdivisionhasbecomesoshorthandedthatshefeels
luckytobegettingtheworkoutatall.Insomeareasheremployeeshave
beenworking600hoursofovertimeannuallytoholddownstaffingneeds
andemployeebenefitexpenses.Leahisnottheonlysupervisor
Josephinewillbelosingtoretirement.ButLeah’sdepartureposesthe
greatestproblembecauseJosephinehasnotpreparedanyoneto
assumeLeah’simportant,technicallyoriented,andtough-to-master
position.
JosephinecanfillthevacancycreatedbyLeah’sretirementinseveral
ways.Onewayistopromotefromwithin,gamblingthatsomeonefrom
Leah’sworkunitcanmasterthejobinareasonabletime.Inthisprocess
sheknowsshecanalwaysaskforLeah’sopinionaboutwhich
employeeshavethebestpotentialforsuccessinthejob.Promotionfrom
withinisthebank’stime-honoredmethodoffillingsupervisoryopenings.
Infact,manyemployeesexpectanewsupervisortobepromotedfrom
withintheworkunit.Somewillbeupsetifthevacancy


Page4
isfilledinanyotherway.Unfortunately,Josephineisnotconvincedthat
anyoneintheworkunitiscapableofmasteringLeah’sduties.
Josephinehasotherwaystofillthevacancy.Shecanaskother
executivesinthebanktonominateemployeeswithmanagement
potentialfromtheirdepartments.Ifchosen,suchacandidatewouldbe
promotedorwouldreceivealateraltransfertoLeah’sposition.But
Josephineknowsthatmovingaworkerfromanotherareawilltouchoff
movesalloverthebankasareplacementissoughtforeachvacated
position,aproblemcomplicatedbytheearlyretirementoffer.Norwillitbe
aneasytasktoconvinceothermanagerstogiveupatrainedworker—

evenforapromotion.Duringdownsizing,somemanagershoardworkers
sotheyneednotjustifyreplacementsortakeprecioustimetotrain
newcomers.Tomakemattersworse,thebankhasnocentralizedskillor
staffinginventoryandhastemporarilysuspendedjobpostingfor
supervisorypositions.Josephine’seffortstorecruitaqualifiedcandidate
insidethebankwillthusbecomplicatedbylackofinformation.Itcould
provetobetime-consuminganddifficult.
Josephineisalsoawarethatshecouldhireasupervisorfromoutsidethe
bank.Thatoption,Josephineworries,isaminefieldofpotentially
explosiveproblemsbecause‘‘outsiders”haveestablishednotrackrecord
insidethebank.Inanycase,Josephinewouldclearlywantsomeonewith
bankingindustryexperience,preferablysomeonewhohasworkedat
anotherbankinapositionsimilartoLeah’s.Althoughsuchpeopleexist,
theyarerare.Recruitingonewillnotbeeasy.Evenifasuitablecandidate
canbelocatedandhired,heorshewilllackjob-specificand
organization-specificknowledgeaboutthisbank’suniqueproceduresand
culture.Anewhire,nomatterhowexperienced,alsolacksasocial
supportnetworktoeasethetransitionfromoutside.Unexpectedturnover
inLeah’spositionisanunpleasantprospectforJosephine.Butthebank
doesnothaveagoodrecordofretainingthosehiredfromoutsidetofill
supervisorypositions.Newcomerstoooftenbecometurnoverstatistics.
Afourthwaytodealwiththevacancy,Josephineknows,istorestructure
thedivisiontoeliminatetheneedforLeah’sposition.Ifthatmoveresults


inreducedstaffing,itwillundoubtedlypleasetheCEO,Josephine’sboss,
becauseitwillreducethebank’soperatingexpenses.ButLeah’sduties
willhavetobeshiftedsomewhere—probablytoothersupervisors—and
Josephinefeelsthattheyhavealreadybeensaddledwithtoomuchwork.
Throughtheirfacialexpressionsandoccasionalcomments,theyshow

evidencethatstressandovertimearetakingtheirtoll.Josephineis
reluctanttopushthemanyharderforfearthatseveralmightquit.That
wouldonlyintensifyherstaffingproblems.
Afifthwaytodealwiththevacancyistoeliminatetheneedforany
supervisorbymakingLeah’sunitaself-directedworkgroup.IfJosephine
chosethatoption,shewouldredistributeLeah’sworktoemployeesofthe
unit.Josephinewouldliketoexperimentwiththispromising,popularnew
approachdesignedtoincreaseemployeeinvolvement.Butsherealizes
thatemployeesmustfirstbetrainedinhowtosupervisethemselves.
Threemonthsisnotlongenoughto


Page5
introducesucharadicalchangetotheworkunit’sculture,which(likethe
bank)haslongbeenmanagedwithatop-downapproachtodecision
making.Theworkers,Josephineknows,arepresentlyill-preparedto
acceptsucharadicalshiftofresponsibility.(However,Josephinewillbear
thisideainmindforthefutureandperhapsintroduceitatalatertime.)
Despiteallthesepossibilities—andJosephinecanthinkofothersaswell
—sheremainsunsureofwhattodoaboutthependingvacancyinLeah’s
position.Butsheknowssheisnotaloneinfacingaproblemofthiskind.
Theearlyretirementofferaffectstoomanyotherpeopleandpositions.
Perhapsitistime,Josephinereasons,tosuggestthatthebankintroduce
aplannedLeadershipandManagementDevelopment(L&MD)program.
Whilestartingupsuchaprogramnowwillnothelpsolvetheimmediate
problemcreatedbyLeah’searlyretirement,itmayhelpavoidsimilar
staffingdilemmasinthefuture.Moreover,Josephinewasnotallthat
happyaboutthe“sinkorswim”approachsheexperiencedwhenshe
enteredmanagement.Shefeelsthattheremustbebetterwaystotrain,
educate,anddeveloppeople.Sheresolvestofindout.

WHATISLEADERSHIP?
Inthecaseabove,Josephineislookingforsomeonetoexertleadership
aswellassomeonetofillamanagementvacancy.Manydefinitionsof
leadershiphavebeenofferedovertheyears.Amongotherdefinitions,
leadershiphasbeendescribedas:
“Directingtheactivitiesofagrouptowardasharedgoal.”1
“Theprocessofinfluencingtheactivitiesofanorganizedgroup
towardgoalachievement.”2
“Theabilitytostepoutsidetheculturetostartevolutionarychange
processesthataremoreadaptive.”3
Thesedefinitionsshareacommonthread:leadershipisnotlinkedto
positionbutislinkedtotheabilitytoinfluenceothers.
WHATISMANAGEMENT?
Managementisassociatedwithposition.Individualswhoaresaidtobe