Features

Published October 2002

Building Leaders and Driving Change

Albert A. Vicere, D.Ed.

In tough times, the argument goes, leadership development is the first thing to cut. Maybe so for some organizations, but not necessarily for forward-looking companies. From the worst of times comes the best of times, and organizations with hopes of capitalizing on the coming economic upturn-and it will come-are using leadership development to strengthen their leadership ranks and position themselves for the future.

This article focuses on the leadership development practices of four top organizations: 3M, Advanced Micro Devices (AMD), Cisco Systems and First Data Corp. Each has struggled in these difficult economic times, yet each sees leadership development as a key to its future. And they are using leadership development as a cornerstone of their efforts to achieve and maintain positions of prominence and profitability in their respective industries.

From consulting with all four companies on their leadership development initiatives, I know firsthand of their commitment to making those programs drivers of organizational success. But this is not your father's leadership development. Instead, these benchmark companies have created relevant, "just-in-time" programs focused on crucial business challenges. They are using leadership development not as training, but as a process to help get results, shape culture and build leadership depth.

Intense Commitment
That each company is visibly committed to leadership development is an understatement. Hector Ruiz, CEO of AMD, noted in his first letter to employees, "Leadership development is absolutely crucial to the future of our business. If we aspire to grow, our cadre of leaders must grow." And each company is ramping up quickly to build that cadre of leaders. "Nothing was in place three years ago," said Myron Beard, senior VP of leadership development at First Data. "We had to make a case quickly." First Data started with "Leadership Conferences" hosted by CEO Charlie Fote. "It sent the message that we were serious, that leadership development was going to be a big deal," said Beard.

Similarly, Mary Eckenrod, director of executive development and talent resourcing at Cisco, commented, "We started at the beginning, discussed what the business will look like in the future, how it will be different, what kind of people will be needed, how we can develop those talents." Cisco CEO John Chambers took on the task as a personal challenge. "John's made leadership development a top priority, and he's championing the cause."

Clearly, it helps to have a CEO who believes. Margaret Alldredge, VP of selection and learning at 3M, noted, "A CEO who has a clear vision, expectations for accelerating the development of leaders, and is willing to actively champion the cause can have a huge impact in a short time." That impact can include deeper understanding of the company's strategic direction, according to 3M CEO Jim McNerney. He cites the "messaging" segment of 3M's programs-the times when he simply dialogues with teams of global leaders for several hours-as a great way to shape corporate culture and clarify business direction.

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