TM                         Overview
         CLC Learning and Development has identified 20 key components organizations should include in their leadership development strategies.  Use this 
         information to ensure that your organization’s strategy incorporates the components needed for success.  Additionally, use each component’s 
         maturity model to determine the current state of their leadership development strategy and identify focus areas for improvement.
         Instructions:
            Review each component individually and understand the definition and purpose of each component using the description at the top of the page.
            Looking at the maturity levels, identify your organization’s current level of maturity (Level 3 being the most mature).
            Using the maturity level information, and taking into consideration the importance of the individual component to your particular organization, 
             identify areas you would like to prioritize for development, based on your organization’s business strategy.
            Use the action steps on each page to determine next steps for your focus areas.
            Access the associated CLC Learning and Development support resources to help you take those next steps and advance your leadership 
             development strategy.
         CLC Learning and Development, Corporate Leadership Council
          © 2010 The Corporate Executive Board Company. All Rights Reserved. LDR6979510PRO                                                                                       2
                            TM                         Anatomy of an Effective Leadership Development 
                                                       Strategy
         CLC Learning and Development offers a comprehensive “terrain map” of a world-class leadership development strategy:
         CLC Learning and Development, Corporate Leadership Council
          © 2010 The Corporate Executive Board Company. All Rights Reserved. LDR6979510PRO                                                                                       3
                            TM                         Leadership Development Strategy Business Case
          Four reasons why organizations focus on executing an effective leadership development strategy to drive organizational performance include:1,2,3
          1.   New Business Environments Require New Leadership Skills—Business strategies increasingly necessitate leaders to manage increased 
               scopes of responsibility and develop new skills (see graph on left below).
          2.   Chronic Talent Shortages Necessitate Internal Development—The imminent retirement of the “baby boomer” generation and increasing 
               fluidity and transparency of labor markets will create a shortage of leaders and increase retention risks.
          3.   Importance of Human Capital as a Competitive Differentiator—The shift to a “knowledge economy” makes human capital an increasingly 
               critical competitive advantage, placing pressure on organizations to develop strong leaders.
          4.   Demonstrated Impact of Leadership Development Programs on Revenue—Leadership development programs significantly drive 
               organizational performance (see graph on right below).
          Percentage of Successors Immediately                                             ROI of Leadership Development Programs
          Ready for Their Next Roles
           13% 
           Ready
                                                         87% 
                                                    Not Ready
         CLC Learning and Development, Corporate Leadership Council
          © 2010 The Corporate Executive Board Company. All Rights Reserved. LDR6979510PRO                                                                                       4
                            TM                         Section I:  Strategy Alignment and Communication
                       Section I:                                  Section II:                                Section III:                                Section IV:
               Strategy Alignment and                         Leadership Needs                      Development Planning and                           Evaluation and 
                    Communication                                Assessment                                     Delivery                               Accountability
            Components:                                Components:                                 Components:                                 Components:
            1.  Business Strategy                      5.   Future-Focused Needs                   9.   Leadership Segmentation                17. Strategy Assessment
                Alignment                                   Assessment                             10. Individualized                          18. Program Evaluation
            2.  Integrated Leadership                  6.   Leadership Capability                       Development Planning                   19. Strategy Governance
                Strategy                                    Audits                                 11. Experiential Learning
            3.  Values Alignment                       7.   High-Potential Talent                  12. Social Learning
            4.  Executive Involvement                       Identification
                                                                                                   13. Leader-Led Development
                                                       8.   Retention Risk Tracking
                                                                                                   14. Leadership Rotations
                                                                                                   15. Knowledge Transfer
                                                                                                   16. Leadership Transitions
                                                                                                   17. Targeted Formal Programs
         CLC Learning and Development, Corporate Leadership Council
          © 2010 The Corporate Executive Board Company. All Rights Reserved. LDR6979510PRO                                                                                       5
                                  TM                               #1:  BUSINESS STRATEGY ALIGNMENT
          BUSINESS STRATEGY ALIGNMENT—The leadership development strategy is developed and revised based on business strategy.
          MATURITY LEVELS:
                Level 1:  The business strategy influences the leadership development strategy on an ad hoc basis.
                Level 2:  The organization consistently and reactively adjusts the leadership development strategy based on changes in business strategy.
                Level 3:  The organization proactively works to understand future leadership and business needs simultaneously to create the leadership 
                development strategy.
                                              4
          WHAT TO DO AND WHY:
          1.    Set Leadership Development and Business Strategies in Unison—Less than one-quarter of development programs align with the business 
                strategy.  Therefore, L&D should incorporate setting leadership development objectives into the overall business strategy-setting process.
          2.    Ensure All Leadership Development Activities Advance the Business Strategy—Progressive L&D functions articulate and demonstrate the 
                strategic relevance of all leadership development activities to broader organizational goals before implementing them.
          3.    Review Leadership Development Strategy as Business Strategy Changes to Ensure Relevance—As the business strategy changes, L&D 
                must revisit the leadership development strategy objectives to ensure that the leadership development strategy continues to support the 
                business strategy.  
          SUPPORT RESOURCES:
          Aligning L&D Strategy with Business Objectives
          Listen to this Webinar replay and access the presentation slides to learn best practice examples of aligning the L&D strategy with business objectives 
                to drive critical business outcomes.  Additionally, access tactical tools and resources to help L&D create strategically relevant solutions.
          Value-Based L&D Management Platform (CNA Financial)
                Learn how CNA strikes a balance between investments focused on advancing the strategy of the firm and driving the effectiveness of day-to-day 
                operations by defining simple prioritization criteria to focus L&D investments on core value-creation opportunities.
          Strategy-Informed Development Planning (Sydney Water)
          See how Sydney Water involves managers in the objective-setting process and helps them align their leaders’ individual development goals and 
                opportunities with overall business objectives.
           CLC Learning and Development, Corporate Leadership Council
            © 2010 The Corporate Executive Board Company. All Rights Reserved. LDR6979510PRO                                                                                                                         6