Finding the First Rung - DDI

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Trend Research

Finding the First Rung

A study on the challenges facing today’s frontline leader

Written by Scott Erker, Ph.D., and Bradford Thomas

Why are new frontline leaders struggling in their jobs? They’re learning leadership through trial and error—and are blind to their management shortcomings. Read on to discover what organizations can do about it.

®

The Talent Management Expert

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Over the past couple of years we’ve been bombarded with headlines telling us that there is a real leadership readiness crisis at the front line: • “HR leaders rate their first-line managers as their ‘least ready’ workgroup, even less capable than their entry-level employees.” 2010 Bersin & Associates Report • “Companies say they are finding they don't have the managers to spearhead new projects or step in for departing executives, a problem as companies try to shift into growth mode.” August 3, 2010 Wall Street Journal article • “Sixty percent of organizations are facing a shortage of readily available leadership skills.” 2008 Aberdeen Group report Each of these studies uncovers the challenges associated with the inability to identify and develop capable, first-level leaders. But they only address this critical issue from an organizational or human resources point of view.

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Missing from this analysis, until now, has been the perspective of the managers themselves.

This study of 1,130 frontline managers gives them a chance to weigh in. Do they know what

it takes to be a good leader? Do they feel prepared for the challenge of leadership? Are they getting the support they need from their managers and their organization?

The responses to these questions speak volumes about their difficulty finding footing on the first rung of leadership:

• Only 11 percent were groomed to be a leader by their organization.

• Fifty-seven percent learned their leadership skills through trial and error. • Only 56 percent of new managers understand what it takes to succeed.

• Eighty-nine percent of managers possess at least one leadership skill “blind spot.”

All of these factors lead to just 40 percent of frontline managers being satisfied with their

organization’s leadership development offerings. In this report, we’re going to look behind the curtain at each of these findings and offer you advice on how to avoid the common mistakes which keep managers from finding the first rung.

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More MoNey, More ProbleMs? FINdING #1: leaders get and take the promotion for the wrong reason.

If you ask most HR or business executives, they would tell you that they want to prac-

tice a “grow-your-own-leader” strategy at all levels. It demonstrates the organization’s

commitment to rewarding and growing their top performers.

Yet many of these organizations tip-toe around this practice because of the difficulty

they have in identifying their next frontline manager. Our research finds that only

11 percent of managers were promoted through a formal development program “People seem to think that if you're good at what you do, you are also good at leading people. It doesn't necessarily translate as these can be very different skill sets.”

Legal Department Manager

(see Figure 1). The vast majority of managers were not promoted through a grow-

your-own strategy. They were given their jobs through less desirable means, such as

external hiring (33 percent), a reward for strong technical skills (20 percent) or asking

for it (9 percent). Even more disconcerting is that 11 percent of respondents said that

they were given the job by default. FIGURE 1

How dId you becoMe a leader?

I was hired into a management position

33%

I was given a leadership position as a form of reward for my technical expertise

20%

There was no one else for the job

11%

Others see me as a natural leader

I was groomed to be a leader by a development program within my organization I asked for it

I was given a leadership position as a result of my educational background (e.g., MBA)

Respondents selected top choice only

12% 11%

9% 4%

Two industries are lagging behind the rest in this area. Over half (56 percent) of

business and professional services managers were external hires. Thirty percent

of all managers in high-tech roles reported that they were promoted because of their

technical skill.

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Suffice it to say that organizations need to do a better job in giving promotions for the right reasons. But are the managers any better?

We asked managers to tell us why they took their promotion. Their answers are detailed in Figure 2, where it’s apparent that managers do not take promotions for

altruistic reasons. Only 33 percent said they took the promotion to “make a greater contribution” to their company or because of a calling to “lead others” (23 percent). Compare this to more self-serving reasons, such as “greater compensation”

(50 percent), “it’s the only way to advance my career” (33 percent), and “power and influence” (21 percent). FIGURE 2

“I took the job for more money.”

Real Estate Manager

wHy dId you Take THe ProMoTIoN?

GreaTer coMPeNsaTIoN

Desire to broaden your skills or improve yourself

50% 39%

It’s the only way to advance my career

33%

I want to lead others

23%

Desire to make a greater contribution to the company Power and influence

Percentages reflect top two choices

33% 21%

Compensation was much more of a reason for accepting a promotion in the financial

services industry (59 percent) and less of a reason in high-tech (44 percent) and health care (45 percent). While this is not a problem on the surface, over the long-term

compensation loses its potency for motivating people to be engaged in their work. This holds true for first-level leaders as well.

Many of the respondents who took the job for money quickly became disillusioned.

They were 57 percent more likely to regret the promotion than those who wanted to make a greater contribution. A telecommunications manager put it best when she

said, “I had a lot more work to do and the compensation was good, but not that good.”

The best advice comes from this manufacturing manager, “Assess the reason why

you want to be a manager—just don’t do it for the compensation.”

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a Tale oF Two ProMoTIoNs FINdING #2: leaders learn more often through trial and error, but more effectively through a manager’s support.

Becoming a leader for the first time should be very exciting. You have an opportunity

to broaden your skills, to take on new responsibilities—and make more money.

“I didn’t get clear expectations from my manager, no matter how hard I tried.” IT Manager

At the same time it can be overwhelming. Practicing in front of the mirror for days before your first presentation to upper management. The knots in your stomach when you have to provide negative feedback to an underperformer.

As Dickens would say, “It was the best of times. It was the worst of times.”

We asked participants what word would best describe their first year as a manager.

The overwhelming response was “challenging” (45 percent), followed by “stressful”

(18 percent), “invigorating” (8 percent), “overwhelming” (7 percent), and “complicated” (7 percent).

If you are a glass half-full person, “challenging” can be good. You’re learning new

skills. You’re pushing yourself. If you are a glass half-empty person, “challenging” can take on a whole different meaning—keeping your head above water.

So what does it take for a first-time manager to go from feeling invigorated about

being a leader to being stressed or overwhelmed?

It is as simple as how organizations help them learn the ropes. We asked managers

to tell us what methods have been the most influential in building their leadership

skills. As you can see in Figure 3, the two most common methods of learning to

become a manager are at opposite ends of the continuum of organizational support:

On one end, acquiring their leadership skills through trial and error (57 percent)—

and on the other, support from their managers (51 percent). FIGURE 3

wHIcH oF THe FollowING Have beeN THe MosT INFlueNTIal IN acHIevING your curreNT leadersHIP skIlls?

Trial and error on the job

57%

Formal on-the-job training

40%

support from my manager/supervisor Support from a mentor other than my manager

26%

Professional colleagues at other organizations

12%

Formal educational experience Books or articles on leadership

Professional organizations or associations

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51%

Respondents were asked to submit their top three choices

22%

10% 9%

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THrowN IN THe deeP eNd Top 10 situations New Managers weren’t ready For

We asked managers to describe their most uncomfortable situation in their first year on the job. Here are the 10 most common challenges

that they did not feel they were prepared to handle. 1. reprimanding an underperformer (selected by 204 managers)

2. Firing someone (160)

3. Going from co-worker to boss (96) 4. learning the ropes (75)

5. dealing with senior management (47) 6. Handling customer complaints (43)

7. Hr issues such as sexual harassment (38) 8. coaching or managing others (31) 9. resolving conflicts (27)

10. layoffs (19)

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Trial and error on the job is far more prevalent in business/professional services

(70 percent) and health care (63 percent) and less prevalent in the high-tech industry

(41 percent). These two extremes, trial and error versus manager support, are clearly a

tale of two promotions—in terms of the effect that it has on the new manager’s confi-

dence, morale, and performance, and the subsequent effect it has on the organization. The managers who had to learn through trial and error were 52 percent more likely to

describe their first year on the job as “stressful” and twice as likely to describe it as

“The stress made me physically ill.”

HR Manager

“overwhelming” than those managers who learned leadership skills from their manager.

These same managers were also significantly less confident in their abilities. Forty

percent of those who learned through trial and error reported that it took more than

nine months to feel confident on the job, compared to just 27 percent of those with

a strong manager. A customer-service manager who learned by trial and error said,

“I was so overwhelmed that I thought that I was certain to fail.”

According to the respondents, all of this stress caused by learning through trial and error

takes a toll on morale as well. These respondents had more negative feelings about

themselves as leaders. Twenty percent said that level of interest in being a manager

has decreased, compared to just nine percent of those who had a strong manager.

The ‘trial and error’ learning method for leadership was linked to less positive attitudes about their organizations. The results captured in Figure 4 demonstrate that trial FIGURE 4

IMPacT oF learNING MeTHod oN PercePTIoNs abouT THeIr orGaNIZaTIoN

My manager has the knowledge to support my development

45%

Trial & Error:

Manager Support:

My manager is committed to my development Trial & Error:

Manager Support:

I get sufficient feedback about my performance Trial & Error:

Manager Support:

32%

59%

38%

My development assignments are good learning experiences

44%

Trial & Error:

Manager Support:

65%

60% 63%

I am satisfied with my company’s leadership development offerings Trial & Error:

Manager Support: 8

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29%

47%

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and error learning causes new managers to feel like they are stranded alone,

with very little support from their managers and their organization.

At the end of the day, learning through trial and error led many of them to

rethink the whole promotion. Over one-third of respondents (35 percent) said

that they regretted being promoted. Many people echoed the sentiment of the

HR manager who said, “I like my old job better” or the retail manager who

laments, “It seemed like more stress than it was worth.”

All of these negative feelings and lack of skills have a dramatic impact on frontline

leader performance and the performance of their teams. Twenty percent of

the trial and error managers felt unprepared to take the role, compared to nine

“I’m struggling because I can’t do the job.”

Engineering Manager

percent who had managerial support. Overall ratings suffer as well with 18

percent viewing themselves as “poor” or “fair” as a leader compared to just

seven percent of those who learned from a manager. While both groups of

managers rated themselves similarly on their technical knowledge and expertise,

managers who relied on trial and error rated themselves lower on each of the

remaining six critical managerial competencies (See Figure 5).

FIGURE 5

coNFIdeNce IN leadersHIP coMPeTeNcy by learNING MeTHod

Coaching

Communication

Decision Making

Trial and error

Manager support

43%

55%

34%

51%

40%

55%

Delegating

29%

34%

Planning & Organizing

53%

59%

Gaining Commitment

Technical Knowledge & Expertise

28%

48%

38%

46%

Managers who learn through trial and error are much less confident in their skill

as a leader than managers who have the support of their boss. Several managers

mentioned how the lack of proper training and support caused their performance to suffer. A sales manager told us, “I think I’m not a very good leader. I can’t

seem to grasp when to delegate or how to coach properly.”

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advIce For GeTTING THrouGH THe FIrsT year

Survey respondents were more than willing to offer their advice to new managers on

how to survive the first year. The following quotes are representative of the most common suggestions.

• “ask for advice and admit when you don't know something.”

• “Have confidence in your abilities. Don't worry about what you have no control over.”

• “seek out a mentor and focus on learning as much as you can about the hard stuff.”

• “be true to yourself and know your strengths and weaknesses.”

• “Everyone makes mistakes. All one can do is learn from those mistakes and continue on.”

• “be patient—take time to learn the dynamics of the organization, how to get things done, and how to use the abilities of the staff.”

• “listen to everyone and don't be afraid to ask others for their opinions.

It's better to ask for help to make the right decision than to make wrong decisions.”

• “Everyone has different things that motivate and make them excel—find them.” • “earn respect. It's not a given.”

• “Always be accountable for your actions.” 10

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daZed aNd coNFused FINdING #3: large numbers of leaders still don’t understand how to be effective.

We now know that managers tend to struggle in their first year. So are we to assume that at the one-year mark all managers magically have the skills and behaviors that it takes to succeed?

We asked managers if they have a good understanding of what it takes to be a

successful leader in their organization. Overall, 74 percent said they have a good

“I wasn’t familiar with the skill set.” IT Manager

understanding of their role. Figure 6 breaks down understanding by tenure,

showing that the longer they have been in the position, the better they feel they

understand it. Having said that, even at six or more years on the job, 20 percent of managers say that they don’t fully understand what it takes to succeed. FIGURE 6

PerceNTaGe oF leaders wHo rePorT uNdersTaNdING THeIr role TeNure as leader 6 years

% aGreeING 56%

70% 76% 80%

IT managers have the most difficulty understanding what it takes to be successful.

Only 67 percent said they had a good understanding. One IT manager says bluntly,

“I wasn’t familiar with the skill set.”

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Not surprising, but concerning nonetheless, is that many who say they don’t under-

stand the job are right. We asked them to rate the importance of critical leadership

skills to their success on the job. While 92 percent of the managers who know the

job felt “Decision-Making” was critical, just 75 percent of those who don’t understand

the job rated it as critical. In fact, across the board, managers who said they don’t

fully understand what it takes to succeed rated the critical competencies 12-17 per-

“I don’t have time to listen to my staff; my workload does not give me any opportunity to effectively supervise.”

Administrative Manager

cent lower than those who said they knew the job.

For many of the respondents, the transition from an individual contributor role was

difficult because they couldn’t move from a “doer” mindset. A consulting manager

told us that “going from being a doer to having to delegate work and manage

resources is easy on paper, but hard in reality.” Another manager said that “It's hard

to let go of what you know and [what] you're good at and trust others to do it.”

The net result of this “doer” mindset is that ineffective managers could be spending

time on the wrong activities. Figure 7 shows that 30 percent of managers spend the

most time on administrative tasks compared to 20 percent on execution and only

15 percent on coaching direct reports. FIGURE 7

How Is your TIMe allocaTed?

15%

One-on-one with direct reports

30%

Administrative

20%

Executing strategy

18%

Planning

17%

Your own development

This allocation of time is echoed by a number of managers in the survey. An opera-

tions manager said, “I’m always running short on time. Time management of key

issues is very important to staying on top of everything and getting everything done.”

A project manager discussed the lack of time spent with direct reports. “The work-

load was so heavy that it made it very difficult to give any focus on leading.”

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seeING blINd sPoTs FINdING #4: leaders over-rate their skills, and may be oblivious about areas they need to develop. Objects in the mirror may be bigger than they appear. This is not just an adage for when you drive; it also applies when you reflect on your skills as a manager.

The managers in the study are no different. As seen in Figure 8, they have overwhelming confidence in their leadership skills, with 87 percent of managers rating themselves as “good” or “excellent” in overall leadership skills. When asked why

they rated themselves the way they did, the most common response was the modest

“there is always room for improvement.” But a significant number of respondents voiced an opinion similar to this one from a public-sector marketing manager, “Because I am excellent at all I do!” FIGURE 8

How would you raTe your overall leadersHIP skIlls? 65%

1%

Poor

22%

12% Fair

Good

excellent

Truly see yourself—warts and all

Managers need to realistically evaluate their level of skill in each success area—warts and all—in order to realistically focus on improvement. For an overwhelming majority

of managers this is like looking in a distorted fun-house mirror. In a separate study,

DDI asked more than 200 managers going through a frontline leader assessment

program to rate themselves in seven leadership skills: coaching, communication,

delegation, gaining commitment, planning & organizing, problem analysis, and

judgment. We compared their self-ratings to their actual performance during the

assessment.

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We found that 89 percent of the managers had at least one leadership skill where they rated themselves above their actual skill level. We call these “blind spots.”

Fifty percent of the managers had three or more blind spots. In most cases these

“blind spots” were areas they thought were “strengths” but they were actually just

“proficient.” Forty-five percent of managers had at least one serious blind spot—that

is an area they thought was a “strength” but in reality they scored “deficient.”

The most common blind spots were in “Gaining Commitment” (52 percent) and

“Judgment” (46 percent). The least common blind spot was in “Delegation” (36 percent).

Blind spots are the Achilles’ heel of managers. Someone who thinks he has good

interpersonal skills may in fact be exhibiting behaviors that erode trust among his

direct reports. Someone weak at problem analysis may make a hasty decision prior

to gathering all the necessary information. Lacking the self-insight to know that one

needs to improve, managers will turn down—or not fully engage in—development

opportunities that would fill in missing skills. When the disparity persists, it’s to the

detriment of the individual and his or her organization and teams.

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How caN you HelP THeM FINd THe FIrsT ruNG?

Based on the research, new frontline leaders have a hard road ahead of them— and many aren’t sure how they’re going to navigate it. Here’s our advice on how organizations can help. understand why they want to be a leader.

Money and power aren’t enough of a reason to want a leadership role. Managers should also aspire to guide and motivate others, to want to make bigger things

happen—and, most importantly, relish and ensure the success of the individuals on

their teams. If someone’s motivations aren’t aligned with the success of others and

with developing their own skills, they may not be the leader you want.

There are two simple things you can do to ensure that your new managers are

taking the job for the right reasons. First, ask specific questions about motivation

during the hiring and promotion process. One question you can ask is “Tell me

about a work situation that included responsibilities that you really dislike. Why

did you dislike this aspect of the job?”

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The second thing you can do is paint a realistic preview of the job for them.

Let them know that they may have to work longer hours, make tough personnel

decisions, or have the added pressure of working with senior management.

To this end, some organizations place aspiring leaders in temporary management

positions to let them ‘try it on’ before committing. Providing potential leaders with a

comprehensive picture of the challenges they are expected to face will help them decide whether they are up for the responsibility. Give them more clarity.

Many participants expressed frustration similar to this IT manager: “I didn't get clear

expectations from my manager, no matter how hard I tried.” In fact, 43 percent of the

participants said that their transition to a first-time manager would have been easier

with “a more clear understanding of the expectations and accountabilities of the role.” So how can you give them better clarity? In addition to specific job responsibilities,

provide leaders with a list of the skills and behaviors critical for the job. This should

include descriptions of what separates strength or proficiency from poor performance. Take “Delegation,” for example:

Managers who excel at delegation carefully select individuals

to accomplish a task by considering skills, experience, and

growth opportunities. They offer guidance to help their direct

reports succeed without taking away responsibility for action.

Many managers struggle with delegation because they are

afraid to give up control. By delegating effectively, managers

will get more work done, develop stronger team resources, and

build the overall level of engagement and success necessary

for associates to excel.

Organizations also need to educate and reinforce the guidelines. Every manager in

the organization should know what is expected of them and be held accountable for

that level of performance and behavior. Finally, teach the managers of first-level

leaders how to recognize the behavior—or lack of—and how to provide feedback

and just-in-time coaching.

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Take their blinders off.

First-level leaders need accurate, unbiased information about where they stand in

terms of their performance and capability as a leader. Simulation-based assessment is an effective tool that provides objective, in-depth insight into an individual’s

strengths and areas for improvement. The assessment process can accurately evaluate the behaviors and skills that are critical for success as a leader.

Once they have received feedback from the assessment, the challenge becomes

getting them to accept it and willingly take the necessary action to change behavior. One way to gain their acceptance is to ask them to seek the perspective of their peers or direct reports. Asking coworkers to provide honest and open feedback

about specific behaviors they have observed can be a real eye opener for someone coming to terms with a blind spot.

Place a priority on development.

Leaders should leverage the results from assessments to facilitate meaningful

development discussions with their manager. These discussions should lead to

formal development plans with specific skills to be learned, specific ways to apply those skills on the job, and formal measures to track progress. According to our

respondents, this is one practice that isn’t followed very well—only 33 percent of

first-level leaders have a specific, written development plan that they have agreed to with their manager.

build their managers’ skills.

To create a development-rich environment, provide a first-level leader’s manager

with the skills he or she needs to support development. The role of the “boss” is often

overlooked in terms of its importance in creating an environment where development

is supported. If ignored, the best assessment and development efforts at the first-

level can be wasted.

A multi-layered leadership development effort will provide the biggest pay-off and

lead to increased leadership bench strength (and improved succession pools for

leadership at higher levels). This includes training them on how to establish strong

development plans, to provide balanced, timely feedback, and to recognize coaching

opportunities as they occur.

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DDI’s Finding the First Rung Research In July-August 2010, Development Dimensions International surveyed 1,130 leaders in the United States. Their responses inform the findings contained in this report. The demographics of those surveyed are: > Gender: 43% male, 57% female > Geography: 100% United States

> age: 9% 25-29, 24% 30-39, 29% 40-49, 12% 50-54, 26% 55+

> Tenure: 18% < 1 year, 11% 1-2 years, 13% 3-4 years, 57% 5+ years

Acknowledgments

editorial: Colby Fazio, Elizabeth Speed Kabus, Jennifer Pesci-Kelly, Ashley Roppo, and Sue Wilson

design: Stacy Infantozzi and Susan Ryan

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About the Authors scott erker, Ph.d., is the senior vice president of Development Dimensions International’s (DDI) Selection Solutions. Scott’s global perspective on workforce selection comes from his work with organizations around the world on personnel hiring strategies. Scott is invited to deliver presentations internationally on hiring trends and is frequently quoted in business and industry publications including The Wall Street Journal, HR Magazine and Inc. magazine. He is also a member of RecruitingTrends.com's editorial board and regular columnist to the site.

bradford Thomas, is a product manager with Development Dimensions International (DDI). Brad has more than 18 years of business development, consultative sales, and marketing experience. He is the co-author of six research studies on leadership readiness and sales talent management. Brad has been published in the SmartBrief on Leadership, Workforce magazine’s “Dear Workforce” and DDI’s blog Talent Management Intelligence. Contact him at [email protected].

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