B u s i n e s s C u l i n a r y A r c h i t e c t u r e C o m p u t e r G e n e r a l I n t e r e s t C h i l d r e n L i f e S c i e n c e s B i o g r a p h y A c c o u n t i n g F i n a n c e M a t h e m a t i c s H i s t o r y S e l f - I m p r o v e m e n t H e a l t h E n g i n e e r i n g G r a p h i c D e s i g n A p p l i e d S c i e n c e s P s y c h o l o g y I n t e r i o r D e s i g n B i o l o g y C h e m i s t r y e WILEY B O O K WILEY JOSSEY-BASS PFEIFFER J.K.LASSER CAPSTONE WILEY-LISS WILEY-VCH WILEY-INTERSCIENCE The Leadership Pipeline Ram Charan Stephen Drotter James Noel The Leadership Pipeline How to Build the Leadership-Powered Company Copyright © 2001 by Jossey-Bass Inc., 350 Sansome Street, San Francisco, California 94104. Jossey-Bass is a registered trademark of Jossey-Bass Inc., A Wiley Company. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher or authoriza- tion through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750–8400, fax (978) 750–4744. Requests to the Publisher for permission should be addressed to the Permissions Depart- ment, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158–0012, (212) 850–6011, fax (212) 850–6008, e-mail: [email protected]. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly, call (888) 378–2537, fax to (800) 605–2665, or visit our website at www.josseybass.com. Substantial discounts on bulk quantities of Jossey-Bass books are available to corpora- tions, professional associations, and other organizations. For details and discount infor- mation, contact the special sales department at Jossey-Bass. Printed in the United States of America. Library of Congress Cataloging-in-Publication Data Charan, Ram. The leadership pipeline: how to build the leadership-powered company / Ram Charan, Stephen Drotter, James Noel. p. cm. ISBN 0–7879–5172–2 1. Leadership. 2. Industrial management. I. Drotter, Stephen J. II. Noel, James L., date. III. Title. HD57.7 .C474 2001 658.4’092—dc21 00–011188 HB Printing 10 9 8 7 6 5 4 3 2 1 FIRSTEDITION Contents Preface ix Acknowledgments xvii About the Authors xix Introduction 1 1. Six Leadership Passages: An Overview 15 2. From Managing Self to Managing Others 33 3. From Managing Others to Managing Managers 51 4. From Managing Managers to Functional Manager 65 5. From Functional Manager to Business Manager 81 6. From Business Manager to Group Manager 99 7. From Group Manager to Enterprise Manager 115 8. Diagnostics: Identifying Pipeline Problems and Possibilities 131 9. Performance Improvement: Clarifying Roles and Creating Performance Standards 143 10. Succession Planning 165 11. Identifying Potential Pipeline Failures 183 12. The Functional Career Passage 197 vii viii Contents 13. Coaching 213 14. Benefits Up and Down the Line 225 Index 243 Preface Though the Leadership Pipeline is a fresh concept that is specifically geared toward the issues facing organizations today, it has its origins in a model created many years ago by a man named Walt Mahler, a highly acclaimed human resources consultant and teacher. Walt contributed a great deal to human resource planning and succession at a number of blue chip companies, including General Electric. His approach laid the foundation for modern succession planning ap- proaches. In fact, it can be argued that his contribution was one of the secrets behind GE’s success in developing leaders. We’d like to tell you this story, not only because it will help you understand the value of the pipeline model but also because it’s a fascinating story in and of itself. Telling it is also a good way for us to introduce ourselves and how we became advocates of this lead- ership development approach. In the early 1970s, Walt did some of the most critical design work for GE’s succession planning process, conducting in-depth as- sessments of young GE leaders to help them develop their potential and plan their future. Walt focused much of his work on the tran- sition from business manager to multi-business manager and ac- quired a deep understanding of the difference between these two leadership levels. ix
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