fm01.

qxp 3/21/08 8:15 AM Page i

The AMA Guide

to Management
Development

Daniel R. Tobin

Margaret S. Pettingell

American Management Association

New York • Atlanta • Brussels • Chicago • Mexico City

San Francisco • Shanghai • Tokyo • Toronto • Washington, D. C.
fm01.qxp 3/21/08 8:15 AM Page ii

Special discounts on bulk quantities of AMACOM books are available to

corporations, professional associations, and other organizations. For details,
contact Special Sales Department, AMACOM, a division of American
Management Association, 1601 Broadway, New York, NY 10019.
Tel: 212-903-8316. Fax: 212-903-8083.
E-mail: [email protected]
Website: www.amacombooks.org/go/specialsales
To view all AMACOM titles go to: www.amacombooks.org

This publication is designed to provide accurate and authoritative information

in regard to the subject matter covered. It is sold with the understanding that
the publisher is not engaged in rendering legal, accounting, or other profes-
sional service. If legal advice or other expert assistance is required, the
services of a competent professional person should be sought.

Library of Congress Cataloging-in-Publication Data

Tobin, Daniel R., 1946–

The AMA guide to management development / Daniel R. Tobin, Margaret
S. Pettingill
p. cm.
Includes index.
ISBN 978-0-8144-0899-5
1. Management—Study and teaching. 2. Executives—Training of.
3. Leadership—Study and teaching. 4. Mentoring in business. 5. Core
competencies. 6. Career development. I. Pettingell, Margaret S. II. Title.

HD30.4.T63 2008
658.407124—dc22
2008001434

© 2008 AMACOM, a division of

American Management Association.
All rights reserved.
Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system, or

transmitted in whole or in part, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of AMACOM, a division of American Management Association,
1601 Broadway, New York, NY 10019.

Printing number

10 9 8 7 6 5 4 3 2 1
fm01.qxp 3/21/08 8:15 AM Page iii

Contents

Foreword by Pat Leonard

EVP, American Management Association v

Introduction 1

CHAPTER 1
Starting with the End in Mind 7

CHAPTER 2
Competence: The Ability to Do Something Well 27

CHAPTER 3
The AMA Management Development Competency
Model: Knowing and Managing Yourself 49

CHAPTER 4
The AMA Management Development Competency
Model: Knowing and Managing Others 77

CHAPTER 5
The AMA Management Development Competency
Model: Knowing and Managing the Business 117

CHAPTER 6
Selecting for Competence 165

CHAPTER 7
Developing Employees 177

CHAPTER 8
Management Development Beyond Training 195
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
fm01.qxp 3/21/08 8:15 AM Page iv

iv Contents

CHAPTER 9
The Role of the Manager/Employee Relationship 211

CHAPTER 10
The Role of the Organizational Leadership 227

CHAPTER 11
The Role of the Human Resources Group 241

CHAPTER 12
The Role of the Training Group 253

CHAPTER 13
The Future of Management Development 267

APPENDIX
The AMA Management Development Competency
Model 277

Endnotes 323

Index 327

A PDF file of the AMA Management Development

Compentency Model, as well as other information about
the book, is available at:
www.amacombooks.org/go/AMAGuideMgmtDevelop

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
fm01.qxp 3/21/08 8:15 AM Page v

Foreword

For the last 85 years, AMA has been successfully developing managers.
More than 160,000 people a year will go through our seminar programs
worldwide, through open enrollment forums or through customized so-
lutions delivered on site. Companies trust us with their talent, and we
take their trust seriously. We concentrate on providing superior pro-
grams, webcasts, podcasts, research, and books.
Successful development of managers in your organization involves
much more than sending people to a training program. It requires new
roles for the organization’s leaders, the human resources function, the
internal training group, and for all employees and managers in the or-
ganization. This book provides expert guidance on actions you can take
today to improve your management development processes, no matter
the size of your organization, your location, or your industry.
The traditional scope of duties and influence of expanding manage-
ment responsibilities are constantly changing, but our model will give
you a guide for your journey. With this core you can then further
sharpen or customize the model to align competency priorities that are
important for your business. Then you can craft a development model
that aligns those priorities with the kind of contributions employees
make as their own sphere of influence expands from individual contrib-
utor, to manager of others, to managing the business. Your own man-
agement development plan for your team will be shaped by the role
and responsibility of each team member, his or her contribution, and
how it ties to your corporate goal.
Once you know your ultimate goal, you can begin to plan. What
skills do your people need to possess in order to get the job done and
move your business forward? What capacities do they need to be really
strong? In what roles do they need to excel, as part of the mosaic of
contributions they make individually and as part of the team effort of
doing business?
This is not a recipe book. Crafting a management development
strategy and execution plan is not that simple. This is work, and you
need a plan. You need to stick to the plan and be ruthless about devel-
oping your people to meet the needs of your business AND take them
© 2008, AMACOM, a division of the American Management Association v
www.amanet.org
fm01.qxp 3/21/08 8:15 AM Page vi

vi Foreword

to the next level of professional development. You owe it to your com-

pany. You owe it to your employees. You owe it to yourself as a man-
ager. Blissful is that state when all your employees are engaged, aligned,
pulling in the same, agreed direction, contributing to the discussion,
and anticipating the company’s needs.

“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where. . . . ,” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
Lewis Carroll, Alice in Wonderland

In the words of the Cheshire Cat, where are you going? What do you
want to achieve? What talents do you need on board to accomplish
your goals, personal or organizational, and how do those ingredients
need to come together to achieve that end? Unlike Alice, we trust that
you care . . . otherwise you wouldn’t be reading this book. It does mat-
ter “which way you go” on this journey, and as you will read, there are
many factors to consider. Trust in us, in AMA, to give you a guide,
steeped in experience, positive in outcome, that will get you where you
want to go.

Pat Leonard
Executive Vice President
American Management Association

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch00.qxp_jt_SR 3/18/08 2:49 PM Page 1

Introduction

ver the past eighty-five years, the American Management Associa-

Otion (AMA) has delivered thousands of seminars to millions of par-
ticipants across the globe. It is rare for us to attend any business
gathering without meeting people with fond memories of an AMA pro-
gram they attended sometime in their career, while many tell us of
AMA programs that were important milestones that shaped their career
progress.
For example, when Dan Tobin joined AMA several years ago, he
spoke with an uncle who retired fifteen years earlier from a sweater
manufacturer, where he worked his way up from office manager to
company CEO. He said that over the span of forty years he attended
half a dozen AMA seminars, and that they ranged from very good to
outstanding, and that all were important milestones in his career pro-
gression. AMA’s CEO, Ed Reilly, recently met a Fortune 500 CEO
who told him that early in his career he had attended an AMA seminar
on strategic planning, and by using what he learned in that seminar he
accelerated his journey from a young marketing manager to eventually
becoming the company’s CEO.
For years, AMA’s corporate customers have repeatedly asked us
two questions:

• What is AMA’s competency model for individual professionals,

first-level managers, and mid-level managers?
• How can our organization best develop its employees so that we
have a ready supply of future management and leadership talent to
grow our organization?

This book will help answer those questions.

In AMA’s history there were attempts to answer the competency
question with rudimentary competency models and a concept we called
“learning paths.” This is not to say that there was no information on the
subject generally available. There are many competency models to be
© 2008, AMACOM, a division of the American Management Association 1
www.amanet.org
6826ch00.qxp_jt_SR 3/18/08 2:49 PM Page 2

2 AMA Guidebook to Management Development

found in the worldwide management literature, from consulting and

training firms, business school professors, and training pundits, as well
as hundreds or thousands of company-specific competency models
developed over the past decades. And there are tens of thousands
of books offering management advice from hundreds of publishers
around the world, including AMACOM, AMA’s own book publishing
operation.
Starting two years ago, AMA’s portfolio management group, which is
responsible for defining AMA’s program offerings, led an organization-
wide effort to define an AMA competency model for individual pro-
fessionals, first-level managers, mid-level managers, and functional
managers. This research examined a number of models that existed in
the public domain, including many of the well-researched competen-
cies developed by the Lominger organization, the U.S. Government
Office of Personnel Management (OPM), and the UK Management
Standards Centre. In this book, we further categorized these competen-
cies into three broad categories, those that deal with:

• Knowing and managing yourself.

• Knowing and managing others.
• Knowing and managing the business.

Please note that even for individual professionals, both those who
aspire to climb the management ladder and those who plan to stay in
individual roles, there are important competencies required in all three
of these categories, for even if an individual professional will never
“manage the business,” he or she still needs to have some business
knowledge and acumen.
The AMA Management Development Competency Model, as pre-
sented in this book, is not meant to be the be-all and end-all of compe-
tency models, but it provides a realistic framework of competencies on
which to base your organization’s management development efforts.
Because competencies are general in nature, there can be lengthy de-
bate on what to call a given competency, or whether a particular com-
petency is more or less important for individuals at a given level of the
organization, or whether your organization’s culture puts greater or
lesser emphasis on some competencies as compared with others. These

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch00.qxp_jt_SR 3/18/08 2:49 PM Page 3

Introduction 3

discussions and debates are a good sign that your organization is think-
ing about the importance of developing its management talent to en-
sure its success.
The second question, “How should our organization develop its
managers?,” has no one right answer. If there were a single correct an-
swer, there would be one theory, one book, one training program, and
one guru on the subject, rather than the thousands that you can find in
today’s market. This book does not present an outline of a specific
training program for managers, but rather offers advice on what your
organization needs to do to be effective at developing the managers
(through training and many other development methods) who will keep
your organization running today and growing tomorrow.
The responsibility for developing managers cannot be left solely to
your organization’s training group. It is one of our objections to the
popularity of “corporate universities” that in too many organizations
that have established such entities, managers now feel freed from their
responsibilities to develop their employees—“I don’t have to worry
about that any more because we have the corporate university to han-
dle it.” As described in this book, there are vital roles in management
development for the organization’s executives, the human resources
group, the training group, and most importantly, managers and their
employees. Without the active participation in and support of manage-
ment development of all these groups, you will not get maximum value
from any development initiative you undertake.
Evaluation of training efforts has become an increasingly hot topic
over the years as training organizations try to justify their expenditures
on employee training. Most books on training use the last chapter to
discuss evaluation methods. We start this book with evaluation. Chap-
ter 1, “Starting with the End in Mind,” posits that if you plan your man-
agement development efforts well, by tying all such efforts to specific
organizational, group, and individual business goals, their value to your
organization will be self-evident and you will never be asked to justify
the expense post facto.
In Chapters 2 through 5, we present the AMA Management Devel-
opment Competency Model. Chapter 2, “Competence: The Ability to
Do Something Well,” defines competence, discusses distinctions between
“management competencies” and “leadership competencies,” and pro-
vides background information on the process we used to develop the

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch00.qxp_jt_SR 3/18/08 2:49 PM Page 4

4 AMA Guidebook to Management Development

AMA Management Development Competency Model. Chapter 3 cov-

ers those AMA competencies that deal with knowing and managing
yourself, while Chapter 4 describes those included in the category of
knowing and managing others, and Chapter 5 defines those related to
knowing and managing the business (whatever business your organiza-
tion may be in).
In seeking people with a given set of competencies, organizations
always have the options to either buy those competencies (hire em-
ployees who already possess the needed competencies) or build them
within the organization’s current employee base. Chapter 6, “Select-
ing for Competence,” discusses how to screen external or internal
candidates for specific competencies. Chapter 7 deals with employee
learning, both self-directed learning and training provided by the or-
ganization. Chapter 8 discusses a wide range of options for develop-
ing management competencies that fall outside the realm of formal
training programs.
Knowing the competencies needed for effective management, and
understanding how to develop those competencies, will not get your or-
ganization very far unless the right people in the organization step up to
take responsibility for management development. In Chapter 9, “The
Employee and the Manager: The Key to All Development,” we focus
on the two people who have the primary responsibility for all employee
development. Chapter 10 discusses the vital role that the organization’s
top leaders must play in building a “leadership pipeline” to ensure that
the organization has the management talent it will need in the future to
help the organization prosper. In Chapter 11, the focus is on the role of
the Human Resources (HR) group in identifying and developing man-
agement talent. In many organizations, the training group is part of the
HR group, while in other organizations it is separate from HR. For the
purpose of this book, we deal separately with the role of the training
group in Chapter 12.
In Chapter 13, “The Future of Management Development,” we ex-
amine some of the current and future trends that are likely to impact
the future of your company’s management development efforts. We are
grateful to Florence Stone, editorial director for the American Manage-
ment Association, who conducted a number of interviews with leading

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch00.qxp_jt_SR 3/18/08 2:49 PM Page 5

Introduction 5

thinkers in the field on our behalf and to the interviewees, listed below,
for sharing their thoughts with us. They include:

• Professor Richard Boyatzis of Case Western University

• Professor Henry Mintzberg of McGill University
• Jay Jamrog, research vice president of the Institute for Corporate
Productivity (I4CP)
• Professor David Ulrich of the University of Michigan
• Professor Allan Cohen of Babson College
• Professor Michael Watkins of IMD (Lausanne, Switzerland)
• Executive coaching guru Marshall Goldsmith

This book is not designed to be a blueprint for management devel-

opment with detailed specifications on every aspect of the process. No
two organizations’ management development efforts will look alike—
nor should they—each should be tailored to the specific needs and cul-
ture of the organization. Our hope is that this book will provide some
new ideas, and remind you of some longstanding principles, in the
broad field of management development that will help you succeed in
your organization’s efforts. If you get some new ideas, and if this book
sparks some debates within your organization on how you should be
developing your management talent for the future, we will consider our
purpose well served.

Dan Tobin
Peg Pettingell
American Management Association

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
This page intentionally left blank
6826ch01.qxp_SR 3/18/08 2:50 PM Page 7

C H A P T E R

1
Starting with the End in Mind

Our plans miscarry because they have no aim. When a man does not
know what harbor he is making for, no wind is the right wind.
Seneca (4 BCE–CE 65)

ost books on corporate training strategies and methodologies in-

M clude a chapter on evaluation methods in the last third of the
book. This is not a random placement—most people think of evaluating
learning initiatives after the fact. But if you want to make management
development, or any form of learning, a real contributor to individual
and corporate success, the evaluation process must begin even before
you start any developmental activity. You must start with the end in
mind.
In this chapter, you will learn how a learning contract enables you
to plan your organization’s management development initiatives and to
build in evaluation measures at the start. We will discuss methods of
evaluating learning, including the Kirkpatrick model and return on in-
vestment (ROI) analysis, showing how to use the learning contract to
plan management development activities that add value and demon-
strate how your management development efforts help the organization
and its employees meet their collective and individual goals. We will
also present several techniques to help you implement learning con-
tracts within your organization.

© 2008, AMACOM, a division of the American Management Association 7

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 8

8 AMA Guidebook to Management Development

The Learning Contract

The learning contract starts and ends with the organization’s goals. It
starts with an understanding of organizational goals and how those
goals cascade down to the business unit, group, and individual level
(Part I). The learning plan (Part II), where learning methods, schedules,
etc., are specified, comes next. Finally, Part III of the learning contract
specifies how that learning will be applied to the individual learner’s
work to make a positive difference in achieving personal and organiza-
tional goals and the specific results you expect in terms of individual
and organizational goal achievement as specified in Part I of the learn-
ing contract.
The learning contract can be used both to plan an organization’s
overall management development program and to draw up a develop-
ment plan for a specific individual. We will give examples of both types
of use.
The most important feature of the learning contract is that it is ne-
gotiated between the manager and the employee before any learning or
development activity is planned or undertaken. The learning contract
thus becomes the planning exercise for all management-related learn-
ing and development plans at both the organizational and the individ-
ual levels.

Part I: From Organizational Goals to a Learning Agenda

What are your organization’s goals? Are they a secret, or are they widely
known among employees? Do employees understand how those goals
cascade down to their business units, the groups in which they work,
and to their personal work? Can they connect their individual work to
group and organizational goals? Can they tell you how what they do
contributes to group and organizational success? These are not trivial

TABLE 1.1 The Learning Contract

Starts with … Produces …
Part I Organizational goals A learning agenda
Part II A learning agenda A learning plan
Part III Application of learning Effects of learning on goal achievement

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 9

Chapter 1 ◆ Starting with the End in Mind 9

questions—many employees, whether individual contributors, managers,

or company officers, often find it difficult to make these connections.
And if they cannot make these connections, they may well be working
at cross-purposes to those goals. Seneca had it right–if you don’t know
in what direction you should be moving, any direction will do. In other
words, if you don’t know what problem your training program is de-
signed to solve, you can’t design a proper training solution (see “What
Problem Are You Trying to Solve?”).

W H AT P R O B L E M A R E Y O U
T R Y I N G T O S O LV E ?

During the 1990s, when Dan Tobin was working as an independent con-
sultant, he received a call from the training director of his state’s Depart-
ment of Corrections. “I was reading an article you wrote on learning
organizations. Would you be interested in doing a half-day workshop on
learning organizations for the Commissioner of Corrections and his staff
and then repeating the same workshop a week later for the state’s twenty-
two prison superintendents?” she asked.
“I could do that,” I replied. “But can we meet and discuss what goals
you have set for the program?” We met in her office the next day.
“What is the problem you are trying to solve with this program,” I
asked.
“Let me make a long story as short as I can,” she replied. “The Com-
missioner has set aside a lot of money this year to create a new ‘inmate
management system,’ and I am co-chairing the task force to plan and im-
plement the new system. In the commissioner’s staff meetings, which I
attend, everyone supports the idea, but outside those meetings, several
members of his staff are nay-saying the idea. And when I take members of
the task force out to interview the superintendents, they show very little in-
terest in the project. What problem am I trying to solve? I guess the prob-
lem is how to get everyone moving in the same direction and supporting
the task force, so we can get our work done.”
“And how,” I asked, “do you think that my presenting a three-hour
workshop on learning organizations will help you solve that problem?” I
asked.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 10

10 AMA Guidebook to Management Development

“Well, I just finished reading Peter Senge’s book1,” she said, smiling. “I
just loved it. And I thought if I could get all of these people thinking like
that, it would solve a lot of the task force’s problems.”
“You are probably right,” I said. “But you can’t teach the five disciplines
in three hours and expect anything to change.”
“Why not?” she asked.
“How long did it take you to read the book?” I asked.
“I see,” she said. “Then what would you recommend?”
After more discussion, we agreed to interview the commissioner, sev-
eral of his deputies, and several prison superintendents. Based on these
interviews, the diagnosis was that the new system would be a major
change for the correctional system, and the system had never handled
change well. Because many people felt that this change initiative was prob-
ably doomed from the start, based on this history, they didn’t want to
waste their time working with the task force (a self-fulfilling prophecy).
What I finally proposed and implemented was a program on “leadership
and change” for the commissioner and his staff and a similar session for the
superintendents. Through these sessions, the audiences came to recognize,
first, that the new system was vital to their future and, second, that they
had to take a leadership role in ensuring that the task force could get its
work done. Following those two half-day sessions, we held a full-day joint
session to do action planning. Happily, it got the project back on track.
What happened in this scenario is repeated on a daily basis around the
world in organizations large and small: Someone reads a book or an article
or hears a presentation at a conference and gets so enthused by the idea
he or she has heard that he or she immediately proposes to implement this
“new approach.” Unfortunately, in most cases, this approach doesn’t work
because the proposer has never answered two basic questions: “What prob-
lem are you trying to solve?” and “Will this approach solve that problem?”

The same analogy can be made for many organizations’ manage-

ment development initiatives. If you don’t know how your initiatives
contribute to the achievement of organizational goals, you will never be
able to demonstrate that your management development efforts are
contributing to organizational success. It is a basic tenet of evaluation
methodology that a program’s goals should suggest their own evalua-

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 11

Chapter 1 ◆ Starting with the End in Mind 11

T H E F I V E H O W S2

One method of getting clarity for your goals is called “The Five Hows.” For
any nonspecific goal, ask “How would you know if you are successful?”
Keep asking the same question, focusing on your last answer, until you
have a measurable outcome. For example, with respect to a goal of “We
will become more environmentally conscious,” you would ask: “How will
we know when we are more environmentally conscious?” (Round 1). You
might answer, “When we exceed our industry’s measures for pollution
reduction.”
Next, you might ask, “How will we know when we exceed our indus-
try’s measures for pollution reduction?” (Round 2). You might answer,
“When we reduce our hydrocarbon emissions to X parts per million.”
Next, ask: “How will we know that we have reduced our hydrocarbon
emissions to X parts per million?” (Round 3). You might answer, “We will
install new filtering systems in our factory and a new monitoring system to
ensure that our hydrocarbon emissions do not exceed X parts per million.”
You can now change the original goal from “We will become more en-
vironmentally conscious” to “We will install a new filtration system in our
factory by year’s end and monitor emissions to ensure that hydrocarbon
emissions are reduced to X parts per million.” When you add a target date
to this, you will have a measurable goal.
To move from a “fuzzy” goal to a measurable goal may take up to five
rounds of questioning—the Five Hows. And, of course, you need to ensure
that each “how” is actually achievable—to say, for example, that you will
reduce emissions to X parts per million when the technology to do this
does not exist is not an achievable goal.

tion measures. For example, if the goal is to increase sales this year by
10 percent, then you can measure the increase in sales at the end of the
year and find out whether you achieved that goal. If a goal specifies that
the organization will reduce employee turnover by 20 percent this year,
then you can measure turnover at year’s end and compare it with the
previous year’s turnover statistic to determine if you have achieved the
goal.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 12

12 AMA Guidebook to Management Development

But if a goal is written in “fuzzy” language, it may be impossible to

measure. Some examples:

We will improve quality.

We will become more environmentally conscious.
We will make this a better place to work for our employees.
We will beat our competitors.
We will become an “employer of choice.”

S A L E S T R A I N I N G

A product manager came to the training manager. “We’ve got a great new
set of products. They’ve been getting great reviews in the industry press,
and the customers who participated in the beta tests of the products really
love them. Our competitors have nothing like them. But our salesforce isn’t
selling them. I need you to put together a worldwide sales training pro-
gram and deliver it to our salesforce. I need to get these products moving.
Just let me know how much it will cost and I’ll get you the necessary
budget.” (Training managers love people like this.)
“Have you talked with any of our sales reps or sales managers about
your problem?” asked the training manager. “Have you asked them what
training they feel they need on your products?”
“No, I haven’t talked to any of them,” replied the product manager.
“But it must be a training problem because this is a great set of products,
and if they knew about them, they would be selling them—and a lot of
them. I’ve got to get this product line moving. Let me know when you can
deliver the program. My team will give you all the help you need.”
After the product manager left, the training manager called several
sales reps and sales managers. The next morning, she went to see the prod-
uct manager.
“So, when do you think we can get started with this training?” asked
the product manager. “And how much will it cost?”
“Save your money,” said the training manager. “This isn’t a training
problem.”

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 13

Chapter 1 ◆ Starting with the End in Mind 13

“What do you mean?” asked the puzzled product manager.

“I talked with some sales reps and sales managers. They told me that
they have all of the marketing literature on your products, and they agree
that it is a terrific set of products.”
“Then why aren’t they selling them?!?”
“Because they’re not on their goal sheets. The sales reps get no credits
toward their quotas and get no points toward the annual sales prizes for
selling your products. So they focus on selling what helps them achieve
their personal goals,” reported the training manager.
“So how do I change that?” pleaded the product manager.
“A training program isn’t going to help. What you need to do is to talk
with corporate sales management. Get them to include your products on
the reps’ goal sheets. Get them to offer extra points toward the annual sales
contest for selling your products.”
“So you’re turning down my request to do the sales training? I’ve
worked for a number of companies and this is the first time I can recall a
training manager turning down an offer of money to build and deliver a
program.”
“Look, if you want to give my group $50,000, we’ll put together a
great training program on your products, and some of my people will love
the opportunity to travel around the world delivering the training. But it
won’t change anything. It won’t give you the results you are seeking. You’ll
be better off using that money to create some special sales incentives
around your product set—you’ll get much better results that way.”

Once you have a set of clear, measurable goals for the organization
and the individual, you must then ask: “In order to meet those goals,
what needs to change?” Changes may be related to management devel-
opment or they may have no relationship to any learning activity.
Not all of the changes needed to achieve your stated goals will nec-
essarily imply a learning or management development need. Instead,
you may need to look at your organizational structure; investments in
plant, equipment, or other manufacturing or services technology; prod-
uct or service improvements; different marketing strategies or tactics;

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 14

14 AMA Guidebook to Management Development

or, as in the above example, simply getting a product set onto the sales-
force’s goal sheets.
It is not an uncommon error to propose a training solution to a
problem that is not caused by a lack of training, or to propose a training

R A D I O S H A C K

Retailer Radio Shack proclaims four main values on its website:

• Teamwork
• Pride
• Trust
• Integrity

In explaining its value of “trust,” the company website indicates the be-
haviors to which it is dedicated: “Share the truth, both good and bad.”
Under Integrity, it specifies: “Doing the right thing, even when no one is
watching,” and, “Honesty and openness in relationships with associates,
customers, shareholders and vendors.”
In early 2006, it was revealed that Radio Shack CEO, David Edmond-
son, who had been in that post for twelve years, had falsified information
on his resume. The degrees in theology and psychology that he had listed
were bogus—he never graduated from college.
How did Edmondson’s misrepresentation square with the company’s
“values” of trust and integrity? And how did Edmondson’s boss—Radio
Shack’s board of directors—view the situation?
When the misrepresentation was first reported by The Fort Worth Star-
Telegram, the company board issued a statement saying it knew about the
matters raised by the report, “and has given due consideration to them,”
while deciding to let Edmondson stay in his job due to excellent job
performance.
It should be noted that Mr. Edmondson resigned his position three days
later due to overwhelming criticism from the business press, company em-
ployees, and the general public.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 15

Chapter 1 ◆ Starting with the End in Mind 15

agenda that will not remedy the problem it was supposed to solve. Too
often, because training is what training organizations do, they quickly
offer a training solution to any problem that may arise. To paraphrase
Abraham Maslow, if your only tool is a hammer, every problem looks
like a nail. One of the key competency areas for managers is problem
solving, as will be discussed later in this book. Before recommending a
training solution, you need to make certain that the proposed solution
will actually solve the problem.
Another challenge in management development is ensuring that the
organization’s culture and its measurement and reward systems rein-
force what you are teaching. Many organizational change efforts have
started with large training programs, and large expenditures for train-
ing, only to result in nothing changing because while the training partic-
ipants were taught to behave in new ways, the organization continued
to measure and reward them for behaving in the old ways. In the “Sales
Training” example, a lot of money could have been spent developing
and delivering the requested training program with no results, because
the measurement and reward system didn’t support selling the new
product line. In the “Radio Shack” example, proclaimed company val-
ues and executive behavior don’t match.
For our purposes, let us focus on those changes that imply a need
for learning or other forms of management development to help the or-
ganization and its employees meet their goals. These changes form our
learning agenda, which is the outcome of Part I of the learning contract.

Part II: From a Learning Agenda to a Learning Plan

The learning agenda from Part I of the learning contract specifies what
knowledge and skills need to be learned to achieve the changes that will
enable the organization to meet its goals. But how will that learning be
accomplished? As will be discussed throughout this book, there are
many ways to develop managers, ranging from formal, instructor-led
training programs to e-learning, to self-study, to a variety of temporary
or permanent work assignments, to coaching and mentoring, and more.
In Part II of the learning contract, you will develop specific plans for
your management development program, for the organization as a
whole, or for an individual employee.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 16

16 AMA Guidebook to Management Development

The learning plan will include many items, such as:

• The goals of your management development program, and how it

relates to and aligns with the organizational and individual goals
from Part I of the learning contract.
• The topics that you will include in the management development
program.
• The methods you will use to develop managers. Which methods
best apply to your learning goals?
• Who will participate in the management development program.
• When management development activities will take place.
• Where management development activities will take place.
• How you will measure whether the desired learning actually
occurred.
• The roles of various organizational groups (human resources, the
training group, organizational executives, participants’ managers and
employees) in planning, developing, and conducting the program(s).
• Whether to rely on your organization’s own training and develop-
ment resources or seek external assistance from training firms, pro-
fessional associations, or universities.

While developing a learning agenda, often in the form of a course

catalog and schedule, is a core activity of most internal training groups,
where those training groups often fall short is in relating the programs
they offer directly to, and aligning them with, the organization’s key
business strategies and goals. Too often, organizations send their em-
ployees to a management development program, internal or external to
the organization, without ever helping to tie what they are learning to
their individual, team, and organizational goals. This is why AMA rec-
ommends that every employee who will attend a training program first
sit down with her manager to discuss the content of the program and
how it relates to her and the manager’s goals.
The final dimension of the learning plan is how you will measure
learning achievement or the development of the desired management
competencies. This will be discussed later in this chapter.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 17

Chapter 1 ◆ Starting with the End in Mind 17

Alternatives for each of these dimensions of the learning plan will

be discussed in other parts of this book. But, in formulating your man-
agement development plan, you should keep in mind the basic model
of the four stages of learning.

The Four Stages of Learning The four stages of learning3 are:

Stage 1: Data
Stage 2: Information
Stage 3: Knowledge
Stage 4: Wisdom

We are all inundated with data (Stage 1). Every word we read on paper,
a computer screen, or as a text message on a cell phone, everything we hear
and see, everything that is taken in by our senses, is data. In today’s world,
we are flooded with so much data that it threatens to overwhelm us all.
Peter Drucker said that data, when imbued with relevance and pur-
pose, becomes information (Stage 2). In planning any learning initia-
tive, it is important to help learners sort through the jungle of data that
surrounds them to discover what is relevant to their work and has pur-
pose. If we swamp learners with irrelevant data for which they see no
purpose, they will ignore it or, worse, spend so much time trying to un-
derstand why it is being presented that they will have less time to focus
on the information most vital to their work. A primary purpose of the
learning contract is to have the manager discuss with the employee how
the employee’s job will change and what new skills the employee needs
today and for the future, thus helping the employee better sort through
all of the available data on development opportunities to turn it into
useful information to better construct his personal learning agenda.
Most training programs focus on providing information, i.e., data
that is relevant and has purpose, but many overwhelm the participant
with a plethora of information. Studies of all forms of learning show
that participants retain only a small percentage of the information pre-
sented through training programs for even a few weeks after complet-
ing the training.
What organizations really want is not necessarily for learners to re-
tain large volumes of information, but to apply what they learn to their

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 18

18 AMA Guidebook to Management Development

work to make a positive difference in individual, group, or corporate

business results. This leads us to Stage 3 of the learning model: To move
from information to knowledge, the employee must apply that information to
his work. That is, I can’t say that I really “know” something unless I
have used it. Even if we help (or force) employees to learn a lot of infor-
mation through our learning initiatives, there is little value to them or to
the organization from the activity if they never use what they learn.
For example, you can read books and articles on how to ride a bicy-
cle, watch videotapes or take an e-learning program that simulates
riding a bicycle in traffic, but you can’t say that really know how to ride
a bicycle until you apply your learning and actually get on a bicycle to
master the skills and knowledge you have accumulated from those
learning resources.
The final stage (Stage 4) of the learning model is that most precious
commodity, wisdom. Wisdom cannot be taught, but can only be devel-
oped within the individual. Wisdom comes from a combination of in-
sight and intuition based on knowledge and experience. Harvard
Business School professor Shoshanna Zuboff 4 tells the story of a paper
mill worker who could “sense” if the mixture of chemicals in a vat on
the production floor was correct by the way that static electricity af-
fected his hair as he stood next to the vat. This type of wisdom cannot
be taught in a classroom lecture or through an e-learning program. But
it can be transmitted by dialogue and demonstration.
When we speak of the looming talent management crisis resulting
from the retirement of millions of baby boomers, it is this loss of wis-
dom, or tacit knowledge, that will be the most difficult to replace.
As will be discussed in later parts of the book, this learning model
(see Figure 1.1) can provide a lot of guidance in designing management
development programs, such as:

• Ensuring that all content is relevant to the jobs of managers and has
purpose for them in achieving their individual and collective goals.
• Giving opportunities for participants in your programs to apply what
they learn so that they can turn the information they receive into
personal knowledge.
• Developing ways for participants in your management develop-
ment effort to learn from the accumulated wisdom of organizational

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 19

Chapter 1 ◆ Starting with the End in Mind 19

1. Data

2. Information = Data + Purpose + Relevance

3. Knowledge = Information + Application

4. Wisdom = Knowledge + Experience + Intuition

FIGURE 1.1 The Four Stages of Learning

leaders and from their own experiences and to test their intuition as
they develop their own wisdom about what will or won’t work in a
particular situation.

The last two of these items are covered in Part III of the learning contract.

Part III: From Application of Learning to Measuring

Effects on Goal Achievement
Traditionally, organizational training groups felt that their responsibili-
ties ended when the employee left the training program, either com-
pleting an instructor-led course or finishing an e-learning program. In
recent years, there has been more interest and activity targeted at
measuring the effects of learning activities once the employee returns
to the job. Later in this chapter, we will examine the Kirkpatrick
model for measuring the effects of training programs and Jack Philips’s
addition of return on investment (ROI) analysis to the Kirkpatrick
model.
The great difficulty of using many of the evaluation methods that
are so widely discussed today is that they are all done after the fact.
“Now that we have spent all this money on classroom training (or
e-learning, or webcasts, or knowledge management systems, etc.), let’s
go back and see if we can justify our expenditures. Can we can prove
that there really is a return on the company’s investment in these initia-
tives?” The learning contract solves this dilemma by specifying, before
any learning or development activities are planned, the expected bene-
fits in terms of the organization’s and the individual’s goals.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 20

20 AMA Guidebook to Management Development

L E A D E R S H I P T R A I N I N G
I N A C O N S U L T I N G F I R M

One of the managing partners of one of the world’s largest accounting and
management consulting firms once told us of a large investment he and
the firm had made in leadership education. They had hired one of the lead-
ing authorities on leadership from one of the most prestigious business
schools and, over the course of the summer, had 3,000 of the firm’s top as-
sociates attend two days of lectures by him at the business school’s facili-
ties. While he didn’t mention the budget for this learning event, it probably
ran close to a million dollars if you count the fees of the professor, the cost
of materials, and the travel and lodging expenses as well as the time spent
off the job by the 3,000 associates for the training and travel.
When asked how the associates would use their new knowledge, the
partner replied: “These are very smart people. They’ll figure out how to
use it.”
What return on this massive investment did this firm get from this am-
bitious program? No one knows, because it was never measured. How
much more return could it have gotten if all associates were required to
complete a learning contract with their managers before attending the pro-
gram to specify how they would apply their learning to their jobs and to tie
their learning directly to the firm’s business goals? We would venture that
the returns would have been many times greater.

Part III of the learning contract specifies:

• How the employee will apply the learning after completing the de-
velopment activity.
• What reinforcement the employee will need when returning to the
job to ensure correct application of the learning and where the em-
ployee will get this reinforcement or coaching, e.g., from his or her
manager, from another employee who has expertise in this area,
from a member of the training group (internal or external), or from
an internal or external coach.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 21

Chapter 1 ◆ Starting with the End in Mind 21

• What other changes need to be in place to complement the em-

ployee’s new skills and knowledge, e.g., systems, processes, organi-
zational structures, or culture changes.
• The expected changes in business results once the employee has
applied the learning to the job (allowing time for mastery of the
new knowledge or skill), as measured by achievement of organiza-
tional or individual goals.

Comparing the Learning Contract

to Other Evaluation Measures
Given that Kirkpatrick’s four levels of training evaluation have become
the de facto standard for evaluating learning initiatives, how does the
learning contract relate to the Kirkpatrick model?

• Level 1: Reaction to Training: Most training organizations use

an end-of-course evaluation instrument, commonly called a “smile
sheet,” that asks participants for their reactions to the learning pro-
gram, the materials, the instructor, the learning environment, etc.
These are standard measures for most training organizations and
will undoubtedly continue to be widely used. The learning contract
does not specifically address Level 1 evaluation. This should not
stop you from using end-of-course evaluations if you feel that they
are a meaningful measure within your organization.
• Level 2: Measurement of Learning: Level 2 measurements typi-
cally take the form of a pretest and posttest that measure the partici-
pant’s learning achievement, e.g., if the participant scores 50 percent
on the pretest and 90 percent on the posttest, you can point to an in-
crease in knowledge as a benefit of participating in the learning activity.
One of the items that the employee must negotiate with the manager in
Part II of the learning contract is how to measure learning achieve-
ment. Kirkpatrick’s Level 2 measurement is an obvious choice for this.
• Level 3: Behavior Change Resulting from Learning: Level
3 evaluation deals with how the participant’s behavior changes fol-
lowing the learning activity. This is the primary focus of the learning
contract. Part III of the learning contract specifies what behavior
changes the employee is expected to make following the learning
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 22

22 AMA Guidebook to Management Development

initiative. The benefit of the learning contract approach is that ex-

pected changes are specified before any learning is undertaken, rather
than looking for behavior changes after learning is completed. This
measurement of behavioral change is typically accomplished with a
follow-up survey of the participant and his or her manager several
weeks or months after completing the learning activity. Alterna-
tively, a 360-degree evaluation of the participant before and after the
learning activity to measure behavioral changes demonstrates Level
3 evaluation. As will be discussed later, you may encounter resist-
ance from managers to taking the time to do this follow-up evalua-
tion, but this really is the only effective means of conducting a
Kirpatrick Level 3 evaluation. The learning contract facilitates this
type of evaluation by specifying the expected business results in
terms of individual and organizational goals. If you try to do this
type of follow-up without the initial discussion required by the learn-
ing contract, many managers will have no recollection of why the
employee attended the training program (or participated in another
form of management development) or the original goals of the learn-
ing activity. For all AMA seminars, we ask participants to write an
Action Plan during the seminar that specifies what they will do dif-
ferently when they return to their jobs to apply what they have
learned, and then ask participants to review their action plans with
their managers upon returning to the workplace.
• Level 4: Impact of Training on Organizational Effective-
ness: Level 4 evaluation, the measurement of the impact of learn-
ing on organizational effectiveness, is greatly facilitated by use of
the learning contract. Rather than trying to discover whether a
learning activity has had any effect on the achievement of organiza-
tional goals, the expected impacts are specified in Part III of the
learning contract. More importantly, the learning contract nego-
tiation starts with a discussion of the organization’s and the em-
ployee’s business goals and bases all learning initiatives on those
goals, thereby making it much easier to specify the intended impact
and, therefore, to measure the actual impact of the learning initia-
tive on the organization.

Jack Philips extends the Kirkpatrick model to a fifth level: Return

on Investment (ROI), measuring the actual costs and benefits of a
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 23

Chapter 1 ◆ Starting with the End in Mind 23

learning activity and calculating an actual return on that investment.5

The learning contract does not attempt to do ROI analysis, and, we
would argue, if the learning contract is fully utilized, i.e., tying all learn-
ing initiatives directly to organizational goals from start to finish, orga-
nizational leaders will never ask for an ROI analysis because the value
of all learning initiatives will be obvious.6

R O I

The origins of return-on-investment (ROI) analysis come from the corporate

finance world. When a company is faced with a number of investment al-
ternatives, such as whether to build a new plant, upgrade technology, or
invest in a new marketing program, financial models are built for each of
the alternatives. These models estimate the costs and the projected revenue
streams, by year, for the life of each investment. Using financial formulas,
the organization can measure the projected rate of return for each alterna-
tive. Generally, the investment will be made in the alternative that promises
the greatest return on capital, or all may be accepted or rejected if the pro-
jected rate of return exceeds its target rate of return or falls below the com-
pany’s cost of capital. Other methods of evaluating potential investments
include net present value (NPV), which uses a fixed cost of capital and cal-
culates whether, using the specified rate of return, the project will show a
profit, and break-even analysis, which calculates how long it will take the
company to recoup its investment in the project.
In the corporate finance world, ROI is used to evaluate future invest-
ment alternatives—it is NOT used after the fact to judge whether the in-
vestment has shown a return. This is a major fault with using ROI to
evaluate management development and other types of training and learn-
ing programs. The author’s own experience, working with a number of
companies over the past two decades, is that if the training group waits
until the CEO or CFO asks it to do an ROI study to justify the company’s
training budget, it is already too late—the company has, in most cases, al-
ready decided to slash the training budget or outsource the training func-
tion and is only using the ROI study to justify a decision that has already
been made.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 24

24 AMA Guidebook to Management Development

A key point here is that in the world of corporate finance, ROI calcula-
tions correctly include the full range of costs and benefits that will flow
from a projected investment—the costs may include capital expenses for
new plant and equipment, labor costs for running the proposed operation,
materials costs, training costs, maintenance costs, etc. In the training world,
many ROI studies isolate the costs of training and separate them from the
many other costs involved in an organizational change initiative, but then
often attribute all of the benefits of the change effort just to the training
program. This is the equivalent of saying that if a company invests in a new
manufacturing plant and has to spend money to train its employees on
how to run the new plant, the full profits from the plant should be attrib-
uted to the training program, because the plant couldn’t have been oper-
ated without the training.
Is it possible to calculate the ROI on a training investment? It can cer-
tainly be done, if undertaken with great care and attention to detail to en-
sure that you can isolate the direct costs and direct benefits of the training.
We believe it makes greater sense to do ROI calculations on the entire
change effort, measuring the total costs (including training) and benefits of
the change initiative.
We would argue that the learning contract obviates the need to do ROI
studies on the individual training components of a change effort because
the evaluation measures for the training programs are built in from the
beginning and are tied directly to, and supportive of, the organization’s
business goals. And if the company’s executives see that all training and de-
velopment efforts directly support their business goals, they will most likely
never ask for an ROI justification for the training and development budget.

Summary
The learning contract is negotiated by the employee and his or her man-
ager before any formal training or development activity takes place. By
setting expectations of what will be learned, by tying the learning to
specific business goals, and by setting expectations of changes in in-
dividual goal achievement before the employee engages in any type of
learning or development activity, the employee and his or her mana-

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 25

Chapter 1 ◆ Starting with the End in Mind 25

ger recognize the importance of the activity and where to focus their
attention.
To get greatest value from a learning experience requires that par-
ticipants understand, from the start, what they need to learn, how they
will use what they learn (purpose), and what value they and their organ-
izations will get from the acquisition and application of that learning. It
is not enough to attend a training program, or to take on a developmen-
tal assignment, because “it sounds interesting,” or because “my man-
ager sent me,” and then try to determine its value after the fact, or just
hope that something worthwhile will result from the experience. The
use of the learning contract ensures that the employee and the organi-
zation will get maximum value from the investment in the employee’s
development by building in evaluation metrics from the start.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch01.qxp_SR 3/18/08 2:50 PM Page 26

This page intentionally left blank

6826ch02.qxp_SR 3/18/08 2:54 PM Page 27

C H A P T E R

2
Competence: The Ability
to Do Something Well

ompetence is defined as “the ability to do something well.” This

C would lead us to believe that if we can define a set of competencies
for a job role, and find someone who possesses that exact set of compe-
tencies, we should expect that the person will do the job well. That is
why some companies go to great expense to define a set of competen-
cies for every job in the company and use each job competency profile
to judge people who hold a particular job or aspire to a particular job. It
is much like defining a set of specifications for a piece of machinery or a
part of a machine: If the specs are followed, the part should fit exactly,
and the machine should work as predicted. But people are not ma-
chines or parts, and people are not subject to customization to fit a set
of job specifications. When an executive recruiter develops a job pro-
file, it contains many exacting specifications to help find the perfect
candidate for an open position. But most headhunters will tell you that
it is almost impossible to identify a candidate who meets all such speci-
fications exactly, and that they tend to settle for, at best, an 80 percent
match.
Even when we can agree on a specific competency, we will find that
the nature of that competency will vary with the level of the job. For ex-
ample, it is commonly agreed that good communications skills are
needed for almost every job because people need to work with other
people, and good communications skills enable people to work together.
But as a person moves from individual contributor to manager to ex-
ecutive, the nature of the needed communications skills will change. A

© 2008, AMACOM, a division of the American Management Association 27

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 28

28 AMA Guidebook to Management Development

first-level manager needs communications skills to work with individual

employees and with the group as a whole. He also needs to learn to com-
municate with upper-level management. The mid-level manager needs to
learn how to communicate with a larger group of employees, most of
whom do not work directly for her. A C-level officer needs to learn to
communicate with a wide variety of employees through public forums
and through other managers, as well as to communicate with a board of
directors and with the investment community. Even within a single level,
required communications skills may vary widely. Consider the engineer
who works as part of a global team, the customer service representative
who communicates primarily via the telephone, and the salesperson who
must make sales presentations to customer committees. In subsequent
chapters, where we explore specific competencies for individual profes-
sionals and the three levels of management (first-level manager, mid-level
manager, and functional manager) that are the subject of this book, we
will examine each competency area for these types of differences.

Management Versus Leadership

Competencies
For the past several decades, more and more management theorists and
business writers have been telling the world that we need more leaders,
that we need leaders (rather than managers) at all levels of the organiza-
tion, resulting in a strong emphasis on leadership competencies and
lesser focus on traditional management competencies.
Marcus Buckingham differentiates the roles of manager and leader
as follows:

The great manager’s starting point is the individual. He or she seeks to

understand the talents, skills, knowledge, experience, and goals of the
individual and then finds ways to help make the person successful.
Great leaders’ starting point is the “better future” they see in their
mind’s eye. This future is what he or she ruminates on, defines, and re-
fines. Guided by this clear image of a better future, he or she then ral-
lies people toward it—but through it all, the future remains the focus.1

Our point of view is that we need both management and leadership

competencies at all levels of the organization, but that the mix of the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 29

Chapter 2 ◆ Competence: The Ability to Do Something Well 29

two varies with the level of management. For first-level managers, the
mix may be up to 80 percent management competencies and only
20 percent leadership competencies, while at the level of corporate
officers, the mix may be just the opposite requiring 70 to 80 percent
leadership competencies and only 20 to 30 percent management com-
petencies. The exact ratio of the two types of competencies is not as im-
portant as the recognition that managers or leaders at all levels need a
mix of both types and that the mix varies by level (see Figure 2.1).
There are literally hundreds of competency models that have been
developed by consulting firms, public bodies, industry consortia, and
competency researchers, not to mention the thousands of competency
models developed within organizations over time. While they are all
different, they are also all the same; that is, no one group or researcher
or company has discovered a “magic competency map” that distin-
guishes its managers or leaders from the rest of the pack. The words
may be somewhat different, the level of detail may vary (some list
dozens of competencies, others have hundreds), and their organization
and presentation may appear to be different, but they all describe
roughly the same sets of skills, aptitudes, and knowledge. Similarly,
some organizations will place greater emphasis on one set of competen-
cies than on others, based on the nature of their business, their industry,
the organization’s culture and values, and what it views as the orga-
nization’s core competencies. For example, at one Internet database

100%
Leadership Competencies

Management Competencies

0%
First-Level

Mid-Level
Manager

Manager

Manager
Senior

FIGURE 2.1 The Mix of Leadership and Management Skills, by Level

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 30

30 AMA Guidebook to Management Development

company, all applicants were required to pass a programming aptitude

test, regardless of whether they needed programming skills in their
work. The founders of the company felt it important that all employees,
regardless of position, be able to relate to this core competency that had
been defined for the company and that the company would distinguish
itself from its competitors by instituting this requirement.
In developing AMA’s Management Development Competency
Model for individual professionals and the first three levels of manage-
ment, we examined existing models from several organizations:

• The U.S. Government Office of Personnel Management

• The New York State Department of Civil Service
• Carnegie-Mellon University
• The UK Management Standards Centre
• Lominger

We also focused on key competencies outlined by Drotter, Charan,

and Noel 2 in describing career transitions inherent in the management
pipeline. Finally, we developed our own list of forty-six key competen-
cies (comparing them to other models to ensure completeness). Because
so many of the competencies can be listed for all four personnel cate-
gories, we developed a list of illustrative behaviors for each of the com-
petencies, and it is through these behavioral descriptions that we made
the distinctions in the requirements at the various levels.

Combinations of Competencies
Each position in a company will need a combination of competencies
tailored to the requirements of the job. As mentioned earlier, as jobs
grow more complicated, and as the level of the job rises in the organiza-
tional hierarchy, it may not be possible to find the exact combination of
competencies that are listed in the competency profile. Each organiza-
tion must therefore develop its own ranking system to determine which
competencies are absolutely essential for the job and which are “nice to
have.” This weighting may be further adjusted during the hiring
process, e.g., if the group in which the position exists already has em-
ployees who are strong on certain competencies, the hiring manager
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 31

Chapter 2 ◆ Competence: The Ability to Do Something Well 31

may place less importance on finding a new employee with those par-
ticular competencies and greater importance on competencies that are
needed but in short supply within the existing group.

Buying Versus Developing Competence

But just because we list a competency as being important at a given
level of management, it does not necessarily mean that the competence
can be developed, or that the right way to develop the competence is
through training (which is AMA’s core business). Sometimes, you hire a
person because she has already demonstrated a given set of competen-
cies in her previous job. For example, basic intelligence is not some-
thing that any employer can develop—either the employee has it or he
doesn’t.
Writing in Harvard Business Review,3 Justin Menkes states:

Thinking critically is the primary responsibility of any manager, in

any organization, and a leader’s capacity to engage in this process is
largely determined by his or her intelligence. Of course, there are
many academically brilliant people who might score in the genius
range on an IQ test but who could never make it as the CEO of a For-
tune 500 company. That’s not surprising, since IQ tests focus on the
cognitive skills central to success in school, not success in business.

While some competencies can be improved through training, such

as listening skills, time management, and organizational abilities, a well-
organized employee who listens well and manages his time well will
likely be recognized as having greater management potential than one
who doesn’t demonstrate these competencies. Other competencies are
better learned on the job than in the classroom. For example, develop-
ing a broad understanding of the organization’s business is better
learned by development activities such as assignment to a cross-
functional team, job rotation, or an international assignment than by
any classroom experience.
You buy competencies by hiring employees who already have
demonstrated those competencies. Competency models are often used
to develop job descriptions and interview guides. Using behavioral
interviewing, you can ask specific questions, keyed to specific
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 32

32 AMA Guidebook to Management Development

competencies, about an applicant’s knowledge and experience to judge

whether the applicant has the required or desired competencies.

Discovering Areas of Competence

and Incompetence
Generally, we are aware of our major areas of competence, but often
there are areas of competence that we have but don’t recognize. Simi-
larly, we may know that we lack competence in some areas, but there
are other competencies required for a job that we don’t recognize that
we lack. Figure 2.2 displays these combinations of competence and in-
competence, and those of which we are conscious or unconscious.
For areas of conscious competence, we know what we are able to do.
We list these competencies on our resumes and talk about them in job
interviews. When asked to list our strengths, we focus on these areas of
conscious competence.
Areas of unconscious competence focus on abilities that others may see
in us, but that we do not recognize ourselves. You might say to a col-
league: “You did a great job putting together that slide set for the pres-
entation. Could you teach me how to do those special effects you
used?” Your colleague may have been doing this type of work for a
long time, but never recognized that this was a special area of compe-
tence. Or, you might compliment a colleague on how well she handled
a customer complaint: “You really put the customer at ease and not

Competence Incompetence
Conscious Conscious Conscious
Competence: Incompetence:
I know what I am I know what I am not
able to do able to do

Unconscious Unconscious Unconscious

Competence Incompetence
I am unaware of I am unaware of what
what I am able to do I am unable to do

FIGURE 2.2 Types of Competence

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 33

Chapter 2 ◆ Competence: The Ability to Do Something Well 33

only saved the situation, but helped us develop a loyal customer for the
future.” Your colleague might not have recognized that she had this spe-
cial talent: “Oh, I didn’t do anything special—that’s just how I have al-
ways handled this type of situation.” These are areas of unconscious
competence, and it behooves managers to help employees discover
these types of special abilities that employees may not have recognized
on their own.
Areas of conscious incompetence are areas for development and are
probably recognized by the employee as such. “I’ve never been very
good at getting organized—you can tell by the usual mess in my office.”
Areas of unconscious incompetence pose a greater problem—the em-
ployee lacks a specific competency, but doesn’t recognize the need to
develop that competency. For example, after an employee has offended
other members of the team by using inappropriate language or making
a prejudicial remark, the employee may have no idea why he is sensing
hostility from other team members because he doesn’t recognize that
he made a mistake.
Methods to discover areas of competence and incompetence may
include:

• Personal assessment
• Manager assessment
• 360-degree assessment
• “Reflected Best Self”

The most common time when an individual may conduct a personal

assessment of competencies is when she decides to look for a new job, ei-
ther within or without her current organization. In writing a resume,
she will focus on what she considers to be her key competencies and
focus on presenting those to a potential employer. Most career guides
and books and websites that focus on finding a new position provide
tools to conduct this type of personal competency assessment.4 A per-
sonal assessment should focus on all three competency areas that we
will use to describe the AMA Management Development Competency
Model: knowing and managing yourself, knowing and managing
others, and knowing and managing the business. (Remember that even
though an individual professional isn’t managing others or managing the

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 34

34 AMA Guidebook to Management Development

business, he or she still requires competencies in the second and third

categories related to knowing others and knowing the business.)
By definition, a personal assessment focuses on areas of conscious
competence, but will generally fail to include areas of unconscious com-
petence. That is why we recommend that you also get an assessment of
your competencies from your manager, who may have a different
perspective.

C O M P A R I N G S E L F-
A S S E S S M E N T A N D
M A N A G E R ’ S A S S E S S M E N T

When I first became a manager, while working at Digital Equipment Corpo-

ration many years ago, I attended a week-long program for new managers.
Part of the preparation for this program was completing a self-assessment,
which included more than 100 competency descriptions. I was instructed
to rate each item on two scales: first, on how well I believed I rated on that
competency and, second, on how important I felt that competency was to
my job as a first-level manager. I was also instructed to give a copy of the
same assessment to my manager, so that she could also rate me on the
100+ items on the same two scales. The manager’s assessment was sent to
the instructor for the program.
At one point in the program, the class was instructed to take out the
personal assessments and was then given the managers’ assessments to
compare with them. There were a number of surprises for me (and others
in the class):

• There were competencies on which I rated myself higher than my man-

ager’s rating—obviously, we had different opinions on these items and
would need to discuss them, for I obviously wasn’t demonstrating the
knowledge, skills, or behaviors that she was expecting.
• There were some competencies on which I rated myself lower than my
manager’s rating—again, these were items for discussion and may have
been areas of unconscious competence for me.
• There were some competency areas where my manager and I dis-
agreed on the level of importance of the competency to the job. These

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 35

Chapter 2 ◆ Competence: The Ability to Do Something Well 35

were areas for discussion as to their relative priorities for my work in this
job.

The point here is that without using this instrument, I would not have dis-
covered some areas of unconscious competence and the need to discuss
priorities for the job with my manager. I could have assumed that I was
doing well, when my manager was dissatisfied with my work. Having the
perspective of my manager on the competencies needed for the job and
how well I demonstrated those competencies allowed me to learn more
about myself and about my manager’s priorities, and, therefore, to better
plan my work and my personal development in this job.
Dan Tobin

The manager’s assessment of an individual’s competencies gener-

ally focuses on his observations of how well the individual is doing his
or her job. It will generally start with technical competencies (knowing
and managing the business)—those required for the individual’s work,
whether the person is in customer service, marketing, sales, engineering,
accounting, training, etc. The manager may also comment on inter-
personal and communications skills (knowing and managing others)—
how well the individual works as part of the team, how well she com-
municates with peers, her manager, customers, suppliers, etc., as well as
personal characteristics (knowing and managing oneself), such as time
management, organizational skills, and perseverance. (It is important to
remember that a manager’s views of an employee’s competencies are
generally focused on the specific job the employee holds. For example,
a new employee may have a broad background in marketing, but it the
employee is hired to focus on marketing communications, the manager
will focus the evaluation of the employee’s competencies on the em-
ployee’s role in marketing communications and likely forget or over-
look the opportunity to review the employee’s other marketing skills or
contributions.) In the text box “Comparing Self-Assessment and Man-
ager’s Assessment,” we discuss another approach that works best for in-
dividual professionals, first-level managers, and others for whom the
organization does not want to invest in a full 360-degree assessment.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 36

36 AMA Guidebook to Management Development

An even more comprehensive view of an individual’s competencies

can be gained by conducting a 360-degree assessment. This involves
getting not just the perspectives of yourself and your manager, but also
those who work for you and your peers (see Figure 2.3). Doing a 360-
degree assessment can be a time-consuming and expensive proposition,
and it is generally undertaken by the organization’s human resources
group as part of a larger effort, such as a talent development program,
for a specific training program, or as part of the organization’s succes-
sion planning process. Sometimes, an individual can request the human
resources group to do a 360-degree assessment as part of a personal de-
velopment or assessment plan, but this is not common (although it
never hurts to ask).
It should be noted that there are dozens of vendors of 360-degree
assessments on the market. Many have long-established instruments
that they will not alter. The advantage of using this static type of instru-
ment is that many of these vendors have developed a comprehensive
historical database and can provide norms for various jobs and/or in-
dustries to use for comparison with the individual’s assessment results.
Other vendors will create a customized instrument that can be focused
on specific competency areas that are of importance to the individual
or the organization. But because each instrument is customized, it will
not have a reference database for direct comparison of results. A third
alternative, taken by many organizations, is to develop its own 360-
degree assessment instrument for use solely within the organization.
Whatever form of 360-degree assessment your organization may
use, the results will often be enlightening to the individual, but enlight-
enment is not sufficient as an end result. As was explained in the learn-
ing model in Chapter 1, a 360-degree assessment will provide a lot of

Assessment by Manager

Assessments Assessments
Self-Assessment
by Peers by Peers

Assessments by
Employees

FIGURE 2.3 The 360-Degree Assessment

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 37

Chapter 2 ◆ Competence: The Ability to Do Something Well 37

information, but this information does not have value unless it is applied
to improve individual and organizational business performance. There
should always be follow-up to a 360-degree assessment, resulting in an
individual development plan focused on improving competencies that
were judged to be below-par. Without this follow-on process, there will
be little value to the 360-degree assessment exercise for the individual
or the organization. One approach is to assign each person a develop-
ment advisor (see “The Role of the Development Advisor”).

T H E R O L E O F T H E
D E V E L O P M E N T A D V I S O R

At one company in which Dan Tobin served as director of organizational

learning and employee development, a 360-degree assessment was under-
taken for each of the “top 150” individuals in the company. The instrument
used was based on one purchased from a well-known consulting group,
but customized for the company.
Each individual being assessed was assigned a “development advisor”—
a senior manager in the company outside the individual’s line of command.
There were several roles specified for these development advisors:

• Along with analyzing the data from the assessments (development ad-
visors were given training on how to do these analyses), they also in-
terviewed each of the assessors. In some cases, we found that the
interviews yielded very different results from the written assessment be-
cause, despite promises of confidentiality, some assessors were fearful
that their managers would see the ratings they gave them.
• The development advisors had the responsibility to present their find-
ings, from the assessment scores and the interviews, to the company’s
executive committee (the CEO, the chairman, and other C-level offi-
cers) and to lead a discussion of each individual’s potential.
• The development advisor was then to work with the individual, the in-
dividual’s manager, and a designated human resources partner to craft
a development plan for the individual.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 38

38 AMA Guidebook to Management Development

One longstanding criticism of 360-degree assessments (as well as of

typical performance reviews) is that they tend to focus on the negative, on
“areas for improvement.” Even when the tone of the overall evaluation is
positive, people tend to remember and dwell on negative aspects rather
than on their strengths. Writing in Harvard Business Review,5 a group of
scholars from Harvard Business School and the University of Michigan’s
Ross School of Business suggest an exercise that they call “Reflected Best
Self” to help you focus on your strengths, rather than your weaknesses. In
this exercise, you write to a group of current and former colleagues, man-
agers, and family members, asking each to “provide information about
[your] strengths, accompanied by specific examples of moments when
[you] used those strengths in ways that were meaningful to them, to their
families or teams, or to their organizations.”6 Once the feedback is re-
ceived, the article provides a worksheet to help you “recognize patterns”
in the responses and then compose a self-portrait. Using the self-portrait,
the authors then recommend that you work with your manager to re-
design your job so that it plays to your strengths. One great advantage of
the Reflected Best Self exercise is that it is something you can do for your-
self, by yourself, without having to wait for the company to include you in
a 360-degree assessment program. It can also help you uncover areas of
unconscious competence that you can use to improve your performance
in your current job and to further your career.

Developing Competence
There are many ways in which people develop competence. For the
purposes of this book, we will focus on the actions that companies can
take to develop competent managers/leaders at the various levels under
discussion, namely:

• Individual professional
• The first-level manager
• The mid-level manager
• The functional manager (e.g., accounting manager, IS manager,
marketing manager)

We categorize the actions that a company can take to ensure that

employees have or develop the competencies they need as:
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 39

Chapter 2 ◆ Competence: The Ability to Do Something Well 39

• Screening candidates for existing and innate competencies

• Self-study
• Formal, instructor-led training
• Coaching
• Developmental assignments

We will discuss each of these methods briefly here. Following our

presentation of the AMA Management Development Competency Model
in Chapters 3, 4, and 5, we will devote a chapter to each of these topics.

Screening Candidates
Some of the competencies in our model are innate and the best way of
ensuring that an employee has the required competency is to screen for
it in the hiring process. In the book, Smarts: Are We Hardwired for Suc-
cess?,7 Chuck Martin and co-authors argue that some skills are hard-
wired into our brains, and if they do not exist, no amount of training
will enable us to master them. For example, some people are wired to
be excellent time managers and some are not. For those who are time-
challenged, Martin argues that no amount of training will be able to
overcome the brain’s wiring.
Individuals build some competencies throughout their lives, in
school, at home, and at work, and we often hire people because they al-
ready have those competencies. For example, if a job requires fluency
in a foreign language, we typically will not hire someone who is not al-
ready fluent in the language, no matter how great their general ability
to learn a new language. This is not to say that we do not hire people
for their potential—if we didn’t hire on the basis of potential, we would
never hire a new graduate because he or she will almost never have the
requisite experience and the full range of competencies we are seeking
when people first enter the workforce.

Self-Study
There are some competencies that can be mastered by self-study. By
self-study, we mean by reading, using other study materials, or taking
an e-learning program. For example, for people with a good aptitude
for computer technology, self-study programs have proven effective in
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 40

40 AMA Guidebook to Management Development

learning new technical material to master a new system, new software,

or prepare for an industry-certification program. Self-study is effective
when you are mastering a competency that requires a Level 2 evalu-
ation (see Chapter 1) that demonstrates that you have learned the
material.
Self-study is less successful when trying to master a motor skill or an
interpersonal or communications skill, all of which benefit from live
practice and feedback. For example, you can read many books and arti-
cles on how to drive a car, learn all of the motor vehicle laws from the
government booklets, and observe others driving, either live or through
watching videos, but you cannot say that you are a competent driver
unless you get behind the wheel and practice the skills of driving until
you feel comfortable in the driver’s seat and receive feedback from an
experienced driver to confirm your mastery. While computer-driven
simulators are sometimes used for training of some expensive motor
skills, such as piloting an airplane, these types of simulations can be
very expensive to develop and operate and don’t provide the actual
practice of live application.
Similarly, you can learn a lot through self-study about how to put
together an effective presentation and the skills needed to make that
presentation, but you cannot say that you are a good presenter until
you have practiced those skills with a coach or a live audience. These
types of skills require a Level 3 evaluation—you cannot say that you
have mastered these competencies until you have actually used them
on the job.

Formal, Instructor-Led Training

Formal instructor-led training is most useful when the classroom is used
to help you not just learn, but also to practice new skills in a safe envi-
ronment. In these cases, the instructor can watch you and coach you as
you try out new skills in an environment where making an error can be
quickly corrected before the car or the system crashes, or where com-
mon errors can be corrected before you become embarrassed by mak-
ing the error on the job. Of course, this type of instruction requires
instructors who have the skills and experience to provide this type of
instruction and feedback, and an instructional design that emphasizes
this type of experiential learning process.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 41

Chapter 2 ◆ Competence: The Ability to Do Something Well 41

Coaching
A coach is someone who can watch the individual try out new skills
and provide commentary and guidance on the individual’s perform-
ance. Sometimes, the coach teaches new skills. More often, the coach
provides feedback and helps the individual fine-tune her performance.
In the organizational setting, the coach is often the individual’s man-
ager, but can also be a peer, a subordinate, or another employee who
has already mastered the required competency.

Developmental Assignments
Developmental assignments offer a wide range of opportunities for the
individual to gain new knowledge and skills and master new competen-
cies. For example:

• In many organizations, a new graduate may be assigned to work

with a more experienced employee to “learn the ropes.” (The
Buddy System)
• A manager may say to an employee, “You’ve done about 75 percent
of the tasks required to manage a total project. Now, I think it’s time
for you to try managing an entire project on your own, and I will
coach you on the areas where you haven’t yet had experience.”
( Job Enlargement)
• An employee who has worked in one area of a company’s opera-
tions may be assigned to work on a cross-functional task force to
broaden his view of the company’s overall operations. (Cross-
Functional Teamwork)
• In one high-tech company, the comptrollers for the engineering
and manufacturing organizations switched jobs for six months to
learn more about the other function. ( Job Rotation)
• In many large international organizations, a high-potential manager
may be given an overseas assignment for one or two years to gain
experience working in another culture while learning more about
the company’s international operations.

You can also combine methods to create an even richer learning ex-
perience. For example, you may combine some self-study or instructor-
led training with a developmental assignment to provide “action
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 42

42 AMA Guidebook to Management Development

learning” where you provide real-world practice of the skills the em-
ployee has learned on her own or in the classroom. Adding coaching to
this model makes the learning experience even more complete.
What is important in planning for an employee’s development is to
ensure that the employee has the opportunity to use his newly acquired
knowledge and skills on the job. This helps the employee master the
needed competencies and ensures that the organization’s investment in
the employee’s development has a real payoff in terms of individual
and organizational goal achievement.

Turning Competence into Action

Remember that competence is defined as the ability to do something
well. But having the ability to do something doesn’t necessarily mean
that it will be done in a competent manner. Jeffrey Pfeffer and Robert
Sutton of Stamford University studied the problem, which they call the
“Knowing-Doing Gap.”

Some organizations are consistently able to turn knowledge into ac-

tion, and do so even as they grow and absorb new people and even
other organizations. Other organizations, composed of intelligent,
thoughtful, hard-working nice people, fail to translate their knowledge
about organizational performance into action.8

Pfeffer and Sutton focus on what company management needs to

do to ensure that knowledge is turned into action. Too often have we
heard a participant evaluate a training program in this manner: “It was
a great program. I learned a lot and I really changed. But then I re-
turned to my office and, while I had changed, my manager and the rest
of the organization hadn’t. So, no, I haven’t implemented much of what
I learned in the program.”
Referring back to the levels of evaluation discussed in Chapter 1, a
Level 2 evaluation, which measures knowledge acquisition by perform-
ing pre- and posttests around a learning activity, can demonstrate
whether an employee has mastered the learning content, i.e., whether
the employee has become competent on the subject matter. But Level 2
evaluation does not guarantee that the employee will apply what he has
learned to the job—this requires a Level 3 evaluation, something that
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 43

Chapter 2 ◆ Competence: The Ability to Do Something Well 43

most organizations do not require. This is why the third section of the
learning contract described in Chapter 1 requires that the employee
and his manager agree and specify, before any learning activity is under-
taken, how that learning will be applied to the employee’s work and
what changes in individual and business performance are expected to
ensue.

The AMA Management Development

Competency Model
The AMA Management Development Competency Model, presented
in the next three chapters, examines the competencies needed at four
levels in any organization:

• The individual professional

• The first-level manager
• The mid-level manager
• The functional manager who has responsibility for a specific func-
tional area within the organization

We include individual professionals in our model because many of

the competencies we will describe start with the individual profes-
sional—if the individual does not demonstrate these competencies, she
will not be considered for a management role. It is also important to re-
member that the competencies we will describe are cumulative, that is,
at any level of management, the designated individual must have first
mastered the competencies for the previous level(s) along with addi-
tional competencies designated for his or her current level in the organ-
ization. We use illustrative behaviors for each competency to further
demonstrate how the competency may manifest itself at each of the
management levels.
Table 2.1 provides a summary of the competencies by category:

• Knowing and managing yourself (10 competencies)

• Knowing and managing others (17 competencies)
• Knowing and managing the business (19 competencies)
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 44

44 AMA Guidebook to Management Development

TABLE 2.1 AMA Competency Model

Managing Self Managing Others Managing the Business
Emotional Intelligence/ Oral Communication Problem Solving
Self-Awareness
Written Communication Decision Making
Self-Confidence
Valuing Diversity Managing and Leading
Self-Development Change
Building Teams
Building Trust and Driving Innovation
Networking
Personal Accountability
Customer Focus
Partnering
Resilience and Stress
Resource Management
Tolerance Building Relationships
Operational and Tactical
Action Orientation Emotional
Planning
Intelligence/Interpersonal
Time Management
Savvy Results Orientation
Flexibility and Agility
Influencing Quality Orientation
Critical and Analytical
Managing Conflict Mastering Complexity
Thinking
Managing People for Business and Financial
Creative Thinking
Performance Acumen
Clarifying Roles and Strategic Planning
Accountabilities
Strategic Thinking
Delegating
Global Perspective
Empowering Others
Organizational Savvy
Motivating Others
Organizational Design
Coaching
Human Resources
Developing Top Talent Planning
Monitoring the External
Environment
Core Functional/
Technical Skills

Remember that all three categories apply to all four levels (individ-
ual professional, first-level manager, mid-level manager, and functional
manager). In the next three chapters we will provide definitions and a
list of illustrative behaviors of each competency. It is through discussion
of the behaviors that we will make the distinction in how each compe-
tency applies to each of the four levels of employee.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 45

Chapter 2 ◆ Competence: The Ability to Do Something Well 45

Defining Competencies for Your

Organization’s Employees
Given all of the competencies in the AMA Management Development
Competency Model, how can your organization use them, along
with their definitions and illustrative behaviors, in planning for the
development of managers within your own organization? There are
four major ways in which you can use a competency model:

1. Writing job descriptions.

2. Assessing how well employees fit within their current job descriptions.
3. Selecting employees to hire or promote.
4. Developing employees in their current roles within the organization
and preparing them for future roles.

The job of writing job descriptions is typically assigned to an orga-

nization’s human resources (HR) group working with the management
team. The HR group often provides a template that is completed by the
hiring manager for any new or replacement positions at the individual
professional level. At this level, most such job descriptions focus on
technical education (for entry-level jobs) or technical skills (for experi-
enced applicants), listing such requirements as:

• This position requires a bachelor’s degree in computer science

and having earned the certification of Microsoft Certified Systems
Engineer.
• The marketing specialist will have three years of experience in di-
rect mail marketing.
• The accounting manager will have a bachelor’s degree in business
administration and must have earned the designation of CPA.
• The project manager must have five years of project management
experience in our industry and have earned the Project Manage-
ment Professional certification from the Project Management Institute.

While these job descriptions focus on technical skills, training, and

certification, they usually have some general statements related to some

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 46

46 AMA Guidebook to Management Development

of the competencies in the AMA Management Development Compe-

tency Model, such as:

• Excellent written and oral communications skills.

• Must be able to work in a team-based environment.
• Must be able to handle multiple projects and manage time well.

The AMA Management Development Competency Model, as de-

tailed in Chapters 3, 4, and 5, will give those responsible for writing
your organization’s job descriptions a much more comprehensive set of
competency descriptions and behaviors to use as the basis for writing
those descriptions. But before starting to list dozens of behaviors on
each job description, the organization must decide which of the compe-
tencies and behaviors are most important to building its business and
engendering its organizational culture.
Defining the organization’s culture and values usually requires time-
consuming (and often difficult) discussions between the HR organiza-
tion and the organization’s leadership team, but they are worthwhile
and must be done every few years. We have seen many organizations
whose culture and values reflected those of its founder. When the
founder retired or otherwise left the organization, management found
that the culture, which often was built around the personality of the
founder, needed to change to better respond to current and future busi-
ness opportunities as defined by the founder’s successor. Without this
type of discussion, the old culture and values may continue while the
organization’s leaders wonder why people aren’t responding to the
changes they are trying to make. With a common understanding of
the organization’s values and strategies, people can much more easily
align their work with the directions set by the organization’s leaders.
The competency descriptions and illustrative behaviors for each com-
petency can help to facilitate these discussions, e.g., “How should we
prioritize the various competencies in looking for new talent?” or
“Look at the behaviors associated with this competency—is it important
for our functional leaders to behave in this way?” or “We have always
hired a number of new MBA graduates this year, screening them for
their technical skills—should we now be considering their teamwork and
communications skills in making these hiring decisions?”

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 47

Chapter 2 ◆ Competence: The Ability to Do Something Well 47

The result of these discussions between the HR group and the organi-
zation’s leadership team should inform the general job requirements for
all positions within the company and specific job descriptions for key
roles. But it also takes more than rewriting job descriptions (which are
rarely consulted except at the time of hiring someone). As explained
throughout the latter chapters of this book, developing managers is not
the sole responsibility of the HR group or the training function within an
organization. There are important roles to be played by those groups, but
also by the organization’s leaders in building a positive learning environ-
ment that nurtures the management development process. As will be ex-
plained, management development is not just a training function—there
are many ways in which any organization can help develop its manage-
ment talent to get work done today and to build management strength
for tomorrow. And while there are roles for all of these groups, the key
roles in developing employees belong to the employees themselves and
their managers. So it is vital that every employee and every manager in
the organization understand the competencies that they will need and the
priorities for those competencies as defined by the organization.
When do organizations assess how well current employees fit
within their current job descriptions? The answer is rarely. Logically,
this type of comparison is made when a person is hired or promoted
into a new job, and perhaps again at the end of a probationary period
in the new job (typically ninety days after hiring or promotion). While
most organizations conduct annual performance reviews, the judgments
made in those reviews are typically based on specific goals assigned to
the employee at the beginning of the year. Many performance review
forms also ask the manager and the employee to enter ratings on a set
of key characteristics, e.g., works well as part of the team, exhibits lead-
ership potential, works in an ethical manner, and so forth.
It is rare for a company to give a poor rating to an employee who
is meeting his or her business goals, even if the employee’s job behav-
iors cast him as a difficult person to work with. Many know of a techni-
cally brilliant employee who people cannot stand to work with
because of his arrogance, his brutal dismissal of ideas from others
whom he considers less brilliant than himself, and his refusal to attend
team meetings. This type of employee provides a real test of the orga-
nizational leadership’s commitment to the organization’s stated values.
Is he allowed to continue offending everyone because of his technical

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch02.qxp_SR 3/18/08 2:54 PM Page 48

48 AMA Guidebook to Management Development

knowledge, or is his behavior not tolerated despite his technical bril-

liance? At some companies we have seen this type of employee stick
around for years, while the organization loses many other competent
employees who can’t stand working with him. In other organizations,
we have seen the organization’s leadership and HR groups try to help
the individual by assigning an internal or external coach “to smooth
out his rough edges” and, if that hasn’t worked, subsequently fire him
because even though he was technically brilliant, he was too much of a
disruptive influence. It all comes down to the company’s culture, usu-
ally defined by its leadership team, and to how much time the com-
pany wants to spend building and enforcing that culture. If the
leadership team is committed to building and sustaining a certain cul-
ture, the AMA Management Development Competency Model pro-
vides many valuable competency and behavioral descriptors that can
be used to write job descriptions so that they reflect that culture. If the
leadership team does not have such a commitment, the exercise of
using the AMA model to write detailed job descriptions can be a time-
consuming and very frustrating exercise.
After we describe the AMA Management Development Compe-
tency Model in the next three chapters, we will further discuss how the
model can be used in selecting new employees and identifying internal
candidates for promotion. Following chapters will deal with the tasks
involved in developing managers through training and many other
means, and the roles that the organization’s leadership team, current
managers, the training function, and the human resources group need
to play to ensure that the organization has the management capabilities
it needs for today’s business and tomorrow’s success.

Summary
With competence defined as the ability to do something well, a compe-
tency model includes a set of individual competencies that describe the
abilities needed in a given position. Competency models can be used to
screen potential employees, as a way of determining an employee’s de-
velopment needs (for his or her current job or for future growth oppor-
tunities), or as a way to select employees for promotion up the
management ladder. In the next three chapters, we will detail the AMA
Management Development Competency Model.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 49

C H A P T E R

3
The AMA Management
Development Competency
Model

Knowing and Managing Yourself

e start with competencies in the category of knowing and manag-

Wing yourself, because if an individual cannot master most of these
competencies, he will likely never be trusted to manage others or to
manage the business. In the category of “knowing and managing your-
self,” the competencies defined in the AMA model for individual pro-
fessionals are displayed in Table 3.1.
We will first define each competency and then illustrate each with
sample behaviors to further clarify each competency and to demonstrate
at which level (individual professional, first-level manager, mid-level
manager, or functional manager) each competency becomes important
to success. The full AMA competency model, with illustrative behaviors

TABLE 3.1 Competencies for Knowing and Managing Yourself

• Emotional Intelligence/Self-Awareness
• Self-Confidence
• Self-Development
• Building Trust and Personal Accountability
• Resilience and Stress Tolerance
• Action Orientation
• Time Management
• Flexibility and Agility
• Critical and Analytical Thinking
• Creative Thinking

© 2008, AMACOM, a division of the American Management Association 49

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 50

50 AMA Guidebook to Management Development

and the levels at which each behavior becomes important, can be found
in this book’s appendix.

Emotional Intelligence/Self-Awareness
AMA defines this competency as analyzing and recognizing one’s own
strengths and weaknesses, attitudes, and feelings. An employee with this
competence maintains a clear, realistic understanding of her goals, capa-
bilities, and limitations. She seeks feedback about her effectiveness and
makes changes in response to that feedback. She is attuned to her inner
feelings, recognizing how these feelings affect her behavior and job per-
formance. She expresses her feelings and reactions appropriately.

Illustrative Behavior 1: Proactively solicits both positive and

constructive feedback on his or her performance.

Illustrative Behavior 2: Adjusts his or her behavior in re-

sponse to feedback.

At all levels, a person with this competency becomes self-aware by

continuously asking for feedback on his performance, whether that be
job performance, performance as a team member or leader, or in man-
agerial duties, to better understand his effects on the people with whom
he works, and to adjust his behavior to improve working relationships
with peers, managers, and peers. This sensitivity is a key element in
emotional intelligence.

Illustrative Behavior 3: Recognizes feelings and concerns

heard in conversation to address the other person’s expressed
and underlying needs.

Emotional intelligence also requires that the employee, at all levels,

recognizes the explicit and tacit feelings of others—employees, man-
agers, and peers. Emotional intelligence is not just about managing
your own feelings, but also about recognizing and reacting to the feel-
ings of others.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 51

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 51

Illustrative Behavior 4: Understands his or her personal pref-

erences for making decisions, solving problems, and working
with others; recognizes when his or her preferred style may not
be the most effective approach given the situation.

Every person, at every level of the organization, has an inherent style

of interacting with other people. In various seminars given by the AMA,
we use a variety of instruments to help people recognize their personal
styles, or ways they interact with other people. By learning your own
style and recognizing the styles of others with whom you work, you can
better understand the effects of your style on others, and of their styles on
you, and work to flex your style to improve working relationships. This is
an important competency at all levels of the organization.

Illustrative Behavior 5: Asks questions that create an atmo-

sphere in which the other person feels comfortable discussing
the situation and sharing concerns.

Illustrative Behavior 6: Expresses his or her feelings and reac-

tions in a calm, clear manner.

Illustrative Behavior 7: Communicates tactfully even when

others are unhappy or confused.

An employee with good emotional intelligence can control his own

emotions and related behaviors and can recognize the feelings of others
and adjust his behavior to keep both himself and others calm in tense
situations by expressing himself in a calm, collected manner and by
helping others to express their concerns similarly. This is an important
competency at all levels of the organization, perhaps becoming more
important as the employee climbs the management ladder.

Illustrative Behavior 8: Coaches others on the importance of

self-awareness and how to become more self-aware.

As important as behaviors 1 through 7 are for the individual pro-

fessional, when you progress up the management ladder, it becomes
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 52

52 AMA Guidebook to Management Development

important to not only practice all of these behaviors, but to coach your
employees on the importance of emotional intelligence and self-
awareness and to help them develop this competency. Hopefully, it has
become evident to you through these descriptions that self-awareness
and emotional intelligence are important competencies for all of the or-
ganization’s employees. Organizations that work to develop this com-
petency in employees at all levels are much more pleasant and
productive places to work.

Self-Confidence
AMA defines self-confidence as acting on the basis of one’s convictions
rather than trying to please others; being confident in oneself; having a
healthy sense of one’s capabilities without being arrogant.

Illustrative Behavior 1: Clearly and appropriately states his or

her opinions and perspectives, even if others disagree.

Illustrative Behavior 2: Exhibits confidence and conviction

when presenting his or her ideas and perspectives, both ver-
bally and in writing.

It is not enough to believe in yourself—you must also have the abil-

ity to express your opinions, both verbally and in writing. Often, we
have seen introverted people who have great ideas, and believe in
those ideas, but who, because of shyness or lack of self-confidence,
never speak up to make their ideas heard. These behaviors are needed
at all levels, but it must start at the level of the individual professional,
for a person at that level who lacks self-confidence and the ability to
speak up and fight for his ideas is much less likely to be promoted to a
management position.

Illustrative Behavior 3: Demonstrates a willingness to take on

challenging new projects or assignments.

A self-confident employee will take on challenging new projects or

assignments to demonstrate her abilities and to challenge herself. This
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 53

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 53

behavior can result in greater visibility at all levels and can lead to
promotion from individual professional to manager and further up the
management ladder.

Illustrative Behavior 4: Quickly and candidly informs others

when he or she cannot fulfill a request, and the reason for it,
and problem-solves an alternative.

Self-confidence also includes the ability to say “No”—to be able to

tell others when he cannot fulfill a request or will be late on a promised
deliverable. The self-confident employee knows that in order to make
others confident in him, he must be up front in admitting when prom-
ises cannot be met. But the key to success in turning down a request or
delivering the bad news that a deadline cannot be met is to provide that
information as early as possible and to help problem-solve a solution
that will help his manager, colleague, or customer find a solution to the
problem.

Illustrative Behavior 5: Admits when he or she is wrong or

someone else has a better solution and is willing to change di-
rection or reorient his or her actions as necessary.

Illustrative Behavior 6: Demonstrates confidence that his or

her plans and decisions will be successful.

There is a big difference between self-confidence and the need to

win every disagreement. The self-confident employee will admit when
someone else has a better idea or a more logical approach to a problem
and be willing to go along with that better approach. Too often have we
seen an arrogant employee who has such a great need to win that she
insists on doing it her own way, even when there is clear evidence that
there is a better way. When an employee is willing to change direction
in the face of a better solution, others (managers and peers) will develop
a greater respect for the employee when the employee does express
confidence that her plans and decisions will be successful. These behav-
iors demonstrate both self-confidence and reasonableness, and should
help the employee climb the management ladder.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 54

54 AMA Guidebook to Management Development

Illustrative Behavior 7: Is willing to delegate tasks or assign-

ments that team members may be able to perform better than
him- or herself.

A successful manager once told me that the key to his success was to
always hire people who were smarter than himself. Part of self-confidence
is in recognizing when others can do a task or project better than you
and, in so recognizing that fact, delegating the assignment to the better-
able employee. A self-confident manager is able to express confidence in
others without feeling that this act exposes a weakness in himself.

Illustrative Behavior 8: Takes responsibility for making diffi-

cult or unpopular decisions.

A self-confident employee takes responsibility for any difficult or

unpopular decision that she needs to make, without trying to slough off
that responsibility on others. Such decisions may deal with personnel is-
sues, budget allocations, selection or prioritization of work assignments,
for example. This behavior becomes increasingly important as an em-
ployee climbs the management ladder.

Self-Development
An employee who has this competency seeks feedback on his strengths
and weaknesses and initiates activities to increase or enhance his
knowledge, skills, and competence in order to perform more effectively
or enhance his career. With this competency, the employee spends time
learning new information or ideas and applying them effectively, keeps
up to date in his knowledge and skills and learns from his successes and
failures.

Illustrative Behavior 1: Routinely asks for feedback on his or

her performance and uses both positive and negative feedback
to enhance performance.

Illustrative Behavior 2: Receives feedback in a constructive

manner.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 55

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 55

Illustrative Behavior 3: Probes for concrete examples and sug-

gestions to improve his or her own performance.

Illustrative Behavior 4: Consults relevant sources (e.g., ap-

praisals, reports, videos, customer feedback) to get insight into
his or her own performance.

An employee interested in his own self-development regularly

seeks feedback and information on how to improve his performance in
the current job and to prepare for career advancement. When an em-
ployee takes his work seriously, continually challenging himself to im-
prove, the employee often becomes known as someone to consider for
the next rung on the management ladder. It should be noted that there
is an important difference here between an employee who seeks self-
development and one who is so lacking in self-confidence that he contin-
uously asks for feedback to ensure that he isn’t doing anything wrong.

Illustrative Behavior 5: Is self-critical; can name both strong

and weak points about him- or herself.

Illustrative Behavior 6: Learns from both successes and

failures.

Illustrative Behavior 7: Initiates project debriefs to clarify

learnings—both what worked well and what could be done more
effectively in the future.

An employee with this competency has learned to have a balanced

view of herself, knowing both strengths and areas needing develop-
ment. She learns from both successes and failures. Learning from one’s
successes is a way of discovering your areas of unconscious compe-
tence, while learning from failures helps to uncover areas of uncon-
scious incompetence. One way of learning from both successes and
failures is to conduct a debrief of every project, successful or unsuccess-
ful, to learn both what went well and should be repeated and what can
be improved in the future. This last behavior becomes increasingly im-
portant as the employee climbs the management ladder, for when her
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 56

56 AMA Guidebook to Management Development

subordinates see that their manager learns from failures, and helps
them learn from their own errors, it gives them permission to be cre-
ative and take prudent risks in their work.

Illustrative Behavior 8: Seeks both formal and informal devel-

opment opportunities.

Illustrative Behavior 9: Demonstrates a desire to perform

above and beyond the requirements of his or her position (e.g.,
enthusiastically takes on tasks outside of daily responsibilities to
learn and grow).

Employees with this competency continuously seek development

opportunities, both formal and informal, and recognize that their
growth comes not just from formal training programs, but also from
self-study methods and from on-the-job experience. By volunteering to
take on tasks outside their normal responsibilities, they can not only de-
velop their business acumen but can also demonstrate their ambition to
climb the management ladder. This is why many organizations rotate
jobs, so that people can learn more about the many aspects of the busi-
ness. Of course, there is a difference between self-development and
blind ambition—we have sometimes seen employees who are too eager
to take on too much responsibility too quickly and often just as quickly
“burn out” by taking on more than they can handle. However, employ-
ees who have shown the willingness to take on new responsibilities are
often those who are considered “management material.”

Illustrative Behavior 10: Coaches others to focus on self-

development.

Illustrative Behavior 11: Builds a culture that encourages

learning and continuous improvement.

This is a primary responsibility of any manager at any level—to help

his employees develop their knowledge and skills to improve their per-
sonal performance on the job. While this takes time (and poorer man-
agers often complain that they have no time to coach employees), this
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 57

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 57

competency is most often rewarded by having employees who are well

motivated and are very loyal to the manager. When exit interviews of
employees who are voluntarily leaving the organization are conducted
by an organization’s human resources staff, a frequent reason given for
departure is that the manager provided no coaching, no opportunities
for the employee to develop and grow.
Building a culture that encourages learning and continuous im-
provement has been shown to be a major contributor to success in or-
ganizations of all sizes. This behavior can be started by managers at any
level of the organization, but becomes increasingly important for func-
tional managers and more senior managers.

Building Trust and Personal Accountability

The AMA defines this competency as keeping promises and honoring
commitments; accepting responsibility for one’s actions; being honest
and truthful when communicating information; behaving in a way that
is consistent with espoused values; and assuming responsibility for deal-
ing with problems, crises, or issues.

Illustrative Behavior 1: Admits when he or she does not know

an answer and takes the necessary measures to locate required
information.

In today’s world, with the ever-increasing glut of information and

expanding spans of control, no employee (individual professional or
manager at any level) can know everything. But little is gained, at any
level, by bluffing an answer to a query—more is gained by admitting
that the employee does not know the answer, at the same time volun-
teering to find the needed information. Bluffing, or insisting that you
know the answer when you really don’t, can easily destroy trust.

Illustrative Behavior 2: Treats confidential information with

respect and integrity.

An employee who does not respect the need for confidentiality will
quickly destroy trust, not just of those people who are affected by the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 58

58 AMA Guidebook to Management Development

revelation, but by all employees, who will quickly learn to avoid shar-
ing confidential information with that person. And a person who can-
not be trusted should not be promoted.

Illustrative Behavior 3: Takes the initiative to provide all rele-

vant information, even when communicating about a problem,
mistake, or other difficult situation (e.g., is clear and direct).

Illustrative Behavior 4: Accepts responsibility for mistakes and

failures and learns from them (e.g., does not “point fingers”).

Being clear and direct in communications, especially about real or

potential problems, helps to build trust. Too often have we seen both in-
dividual professionals and managers at all levels withhold relevant infor-
mation or point fingers at others to try to shirk responsibility for a
problem. When employees withhold information, or blame others for
their own errors, they do not take personal responsibility, and the result is
the erosion of trust with peers, employees, and higher-level management.

Illustrative Behavior 5: Keeps promises and honors commit-

ments.

An employee with this competency is “as good as his word”—he

doesn’t forget what he has promised or the commitments he has made.
And if the employee cannot honor a commitment, he lets the affected
parties know as quickly as possible and offers alternative plans, rather
than ignoring the commitment and hoping that others won’t remember.
This competency is important at all levels, and a person lacking this
competency will generally not be considered for promotion up the
management ladder.

Illustrative Behavior 6: Demonstrates consistency between his

or her words and actions.

We have all heard the old saw: “Do as I say, not as I do.” A trustwor-
thy employee demonstrates consistency between words and actions.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 59

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 59

There is an old story of a national sales manager who comes into

town to meet with the regional sales manager. “These are hard times for
the company,” said the national manager. “We need for you to drasti-
cally cut your sales reps’ expense accounts. No more lunches or dinners
with customers.”
The regional sales manager replied: “You flew in here, probably in
business class, and are staying at one of the most expensive hotels in
town. We’re having breakfast here at your insistence, rather than meet-
ing at the office, and the bill will be near $100 before you are finished,
and you will have me pay for it and put it on my expense account. And
yet you are telling me that my sales reps can’t spend $25 to take a pay-
ing customer to lunch. Your actions are speaking so loudly, I can’t hear a
word you are saying.”

Illustrative Behavior 7: Backs up and supports team members

in difficult situations.

Trustworthy employees recognize that all work is interdependent

and that supporting team members in difficult situations can only help
to build trust. Whether a team member needing help is a peer, your
boss, or one of your direct reports, pitching in when the going gets
tough can only help to build trust. No one wants to work for a manager
or with a colleague who “hangs you out to dry” in difficult situations.

Illustrative Behavior 8: Handles work-related problems in a

confident and decisive manner.

Ignoring a problem doesn’t make it go away and doing so makes

the people who have been, or are being affected by the problem, wary
of your intentions. Of course, sometimes problems tend to solve them-
selves, and few people want to work for a manager who feels that only
he or she can handle any problem that arises. The trustful employee/
manager encourages people to solve their own problems, but, when the
employee has demonstrated that he or she cannot handle the problem,
then steps in to help solve the problem in a confident and decisive
manner.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 60

60 AMA Guidebook to Management Development

Illustrative Behavior 9: Is willing to hold tough discussions

with others about taking responsibility for their own actions and
decisions.

Few managers are totally comfortable in addressing a performance

problem with their employees—this is why doing annual performance
reviews is frequently viewed by managers as a chore rather than a de-
sirable part of their job. A manager with this competency knows it is
necessary to hold others accountable for their actions and decisions,
just as she builds her own reputation for trust and accountability.

Illustrative Behavior 10: Sets an example by behaving in a way

that is consistent with the organization’s values and principles.

As an employee of, or manager within, any organization, you are

expected to behave in a way that supports the organization’s values and
principles, rather than ignoring them or finding a way around them if
you disagree with them. If you find that you cannot support your orga-
nization’s values and principles, you will probably be better off finding
a new employer whose values and principles you can support. And few
organizations will promote people to higher-level management if they
consistently obvert or subvert the organization’s values and principles.

Illustrative Behavior 11: Asks open-ended, nonevaluative

questions about work-related problems to encourage people to
respond and provide a more complete picture of the situation.

Managers who do not have this competency often jump to conclu-

sions in any problem situation, rather than hearing people out and ask-
ing questions to fully understand the situation before reaching a
conclusion. When you ask people questions to fully understand the situ-
ation, you are building trust with those people.

Resilience and Stress Tolerance

An employee demonstrates resilience and stress tolerance by continu-
ing to perform effectively when faced with time pressures, adversity,
disappointment, or opposition. An employee with this competency
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 61

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 61

remains focused, composed, and optimistic in difficult situations and

bounces back from failures or disappointments.

Illustrative Behavior 1: Projects credibility and poise under

difficult or adverse conditions.

Illustrative Behavior 2: Maintains progress (while maintaining

quality) when handling multiple tasks and projects, even under
stressful situations or when faced with competing deadlines.

We have all been in these types of stressful situations—you are work-

ing on a tight deadline and something goes wrong, or your manager
comes in with another “urgent” priority for you to handle (while still
expecting you to meet the deadline on your current project). A person
with this competency handles these types of situations without panick-
ing and without falling apart.

Illustrative Behavior 3: Is patient, tenacious, and resourceful

when seeking information to satisfy a request or complete a
project.

Illustrative Behavior 4: Sees issues and problems through to

completion.

We have all operated under tight deadlines and often become impa-
tient to get results. An employee with this competency has the patience
and tenacity to get the job done. When facing a new urgent project, the
employee doesn’t just drop the completion of his current project, hop-
ing that no one will notice, but sees all of his responsibilities through to
completion. Displaying these behaviors makes him a more desirable
candidate for promotion up the management ladder.

Illustrative Behavior 5: Handles contacts with internal and ex-

ternal customers with a high degree of professionalism (e.g.,
maintains a calm disposition even when others are upset, with-
out conveying impatience or annoyance).

Illustrative Behavior 6: Treats all people with respect and

equity, even when under pressure.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 62

62 AMA Guidebook to Management Development

Resilience and stress tolerance can be demonstrated by how an em-

ployee treats others, both internal and external to the organization.
Even though the employee may be under stress, she still treats people
with respect, maintaining a professional demeanor. We have all known
people who, under stress, start treating other people badly, becoming
impatient or displaying annoyance. Employees who consistently dis-
play these negative behaviors are unlikely to be promoted.

Illustrative Behavior 7: Finds ways to overcome or eliminate

barriers that are hindering achievement of his or her goals.

Illustrative Behavior 8: Views failures and mistakes as an op-

portunity to learn.

Illustrative Behavior 9: Quickly responds to unforeseen changes

in the business.

When facing a barrier, some employees give up—“It can’t be done.

This person or situation is in the way and won’t move,” or “this last
change makes the whole thing impossible to accomplish.” Resilient em-
ployees find ways around or through barriers (even if the barrier is their
own mistake), staying focused on the goal. This type of persistence is
often sought in candidates for management positions.

Illustrative Behavior 10: Keeps team members calm and fo-

cused in uncertain or complicated situations.

A manager with this competency not only controls his own emo-
tions when facing a difficult situation, but also keeps his team calm and
focused when facing uncertain or complicated situations. Team mem-
bers find it much easier to tolerate stress when their manager doesn’t
panic.

Action Orientation
AMA defines this competency as maintaining a sense of urgency to
complete a task. An action-oriented employee seeks information rather
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 63

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 63

than waiting for it. She makes decisions in a timely manner regardless
of pressure or uncertainty, making decisions quickly when called upon
to do so and acting decisively to implement solutions and resolve crises.
She does not procrastinate. She is tough and assertive when necessary
while showing respect and positive regard for others.

Illustrative Behavior 1: Makes timely decisions based on the

best available information (e.g., is not overcome by “analysis
paralysis”).

Illustrative Behavior 2: Has the confidence to make decisions

in uncertain circumstances.

Illustrative Behavior 3: Balances information gathering and

analysis activities with an urgency to take action and “drive it
forward.”

Employees with an action orientation know that not all problems

can wait until all possible information is gathered. They demand faster,
more timely, decisions and are not afraid to make those decisions. The
difference here is between what we call an “academic orientation” and
action orientation. When a graduate student is studying for a doctorate
in any field, he is being trained on that field’s research methodology.
His qualifying examinations focus on how well he has learned that re-
search methodology. When he writes his dissertation, his work is not
judged on the results of his research, but on whether he applied the re-
search methodology correctly. This is what we call the “academic orien-
tation”—presupposing that if you follow the research methodology
correctly, you will get a defensible result, and if you don’t follow the
methodology exactly your result cannot be valid.
With action orientation, a decision maker says: “We have to make a
decision within, say, the next two weeks. Let’s learn as much as we can
over the next fourteen days to make the best, most informed decision
possible.” It is not that the decision maker in unconcerned about
methodology, but only that making the decision is more important.

Illustrative Behavior 4: Tackles problems or conflict head-on;

doesn’t procrastinate.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 64

64 AMA Guidebook to Management Development

Action-oriented employees do not ignore problems, hoping that

they will go away, but tackle them head-on. This does not excuse
micro-managers who do not allow their employees time to solve prob-
lems before charging in to solve all problems for the employee.

Illustrative Behavior 5: Avoids distraction from less critical

activities.

Illustrative Behavior 6: Clarifies priorities and objectives to

swiftly accomplish tasks.

Action orientation also requires that the employee be clear about

her objectives and priorities and focus on the highest priorities that will
help her, and the organization, reach their stated objectives. One of the
most important tasks for a manager is to ensure that employees under-
stand their objectives and to help them set priorities among competing
tasks.

Illustrative Behavior 7: Takes the initiative to identify and

solve work-related problems.

There is an old saying: “Everyone complains about the weather, but

no one ever does anything about it.” Similarly, employees often face a
longstanding problem in the workplace that has annoyed people for
years, but no one ever does anything to solve it, even though everyone
recognizes the problem. An action-oriented employee, when seeing
such a problem, will try to solve it, at the same time trying to ensure
that he is not overstepping the boundaries of his job.

Illustrative Behavior 8: Coaches others to be decisive.

An action-oriented manager coaches her employees to be equally

action-oriented and to make their own decisions whenever possible.
This is the opposite of the micro-manager who will never let her em-
ployees make a decision without her input or agreement.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 65

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 65

Illustrative Behavior 9: Checks to ensure priorities and objec-

tives are clear among team members.

Illustrative Behavior 10: Refocuses team members on the “big

picture” when they appear to have lost sight of it.

This behavior follows on from behavior 8 above—coaching employ-

ees to be decisive. When a manager ensures that his employees under-
stand how their work relates to the larger objectives of the team and the
organization as a whole, and that they know their own priorities, the
manager is much more likely to empower employees to make their own
decisions. Without this context, employees can take empowerment too
far—making decisions that may benefit themselves in getting their own
work done when, in fact, some of those decisions may also obviate the
larger work of the team or of the organization as a whole. For example,
an organization’s lawyer may hold up a vital partnership agreement
while sparring with the other party’s attorney over inconsequential
wording changes while the organization loses business opportunities it
would have won if the partnership agreement had been completed.

Time Management
An employee with this competency spends her time appropriately
among people and projects to ensure that both internal and external
client needs are met. She reprioritizes daily tasks as each day progresses
to ensure that newly emerging, urgent issues are resolved, while not los-
ing sight of longer-term projects. She balances her workload when in-
volved in multiple projects.

Illustrative Behavior 1: Shifts attention quickly to respond to

the unexpected and simultaneously make progress on planned
activities.

Illustrative Behavior 2: Understands what is required to get

things done and establishes/implements an effective course of
action (e.g., establishes appropriate deadlines and meets them).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 66

66 AMA Guidebook to Management Development

Illustrative Behavior 3: Plans each day’s work to complete

time-sensitive issues before deadlines.

These first three behaviors all deal with balancing day-to-day de-
mands with longer-term priorities. An employee with good time man-
agement skills is able to handle the inevitable changes in priorities and
tasks on a daily basis with aplomb.
Early in Dan Tobin’s career, a week before starting a new job with a
high-tech company, he was invited to a group dinner that was taking
place as part of a worldwide meeting of the group he was joining. After
introductions, his new manager handed him a wrapped gift box. Inside,
he found a can of tennis balls. “For the next week,” the manager ex-
plained, “I want you to practice the most important skill for this job—
juggling. You’ll have to do it on a daily basis.”

Illustrative Behavior 4: Takes ownership for delivering results

on multiple projects or initiatives.

Illustrative Behavior 5: Gathers the necessary information to

effectively prioritize work (e.g., urgency and importance).

Illustrative Behavior 6: Prioritizes and organizes a complex

workload while maintaining focus and staying on track.

While behaviors 1 through 3, above, dealt with juggling priorities,

these three behaviors deal with understanding the context for those pri-
orities. Good time managers understand that everything that is impor-
tant is not necessarily urgent, and everything that is urgent isn’t
necessarily important. Former U.S. President Dwight Eisenhower once
said that only two types of papers end up on his desk—those marked
“urgent” and those marked “important.” He spent so much time on “ur-
gent” matters, he complained, that he never got around to what was
really important.

Illustrative Behavior 7: Reallocates his or her time to ensure

the completion of his or her own assigned work/responsibilities
as well as helping others perform effectively.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 67

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 67

This can be a real challenge for a first-level manager who has been
accustomed to just managing her own time. As a first-level manager,
not only must she continue to complete her own work, but must also
help her employees to manage their own time in line with team and or-
ganizational priorities.

Illustrative Behavior 8: Establishes and maintains systems and

files to help resolve pending issues and problems in a timely
manner.

An individual professional may or may not be able to manage his

time without formal systems or files to keep all projects and priorities
straight, but as an employee climbs the management ladder, the num-
ber of projects and issues for which he is responsible grows exponen-
tially and requires that he use systems or files to keep track of
everything for which he and his employees are responsible.

Illustrative Behavior 9: Delegates appropriately to ensure that

he or she is focused on longer-term strategic projects.

Delegation is an important component of time management for

mid-level and functional levels. By properly delegating work to her em-
ployees, a manager at this level can focus her own attention on more
strategic issues while entrusting her employees to handle day-to-day op-
erational details.

Illustrative Behavior 10: Reprioritizes work efforts based on

changing situations and emerging issues (e.g., in response to or-
ganizational, systems, and/or market changes).

This is a primary job for managers—setting priorities for her em-

ployees and changing those priorities based on changes in organiza-
tional objectives, strategies, systems, etc.

Illustrative Behavior 11: Effectively balances his or her focus

on both strategy and operations to achieve optimal results.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 68

68 AMA Guidebook to Management Development

This is one of the more difficult transitions for a person who has
been promoted to a more senior-level management position. As an in-
dividual professional or as a manager at lower levels, he focused on get-
ting work done—his own or the work of his group. At more senior
levels, managers must learn to shift their thinking from strictly opera-
tional issues to a more strategic point of view. This often requires the
manager to learn more about other functional areas, e.g., if a marketing
communication manager is promoted to group marketing manager, he
must learn about, and value, the work of other parts of the marketing
organization. Or, if a marketing manager is promoted to a general busi-
ness management position, he must learn about and value the other as-
pects of the business—engineering, manufacturing, customer service,
and so on. Learning to balance strategic and operational concerns is a
key success factor for individuals new to senior-level management.

Flexibility and Agility

AMA defines someone with this competency as adjusting one’s behav-
ior to new information or changing circumstances. Such a person re-
mains open to new ways of doing things and experiments with new
methods. He also works effectively in an unstructured or dynamic
environment.

Illustrative Behavior 1: Adapts his or her behavior in response

to new information or changing circumstances.

In today’s ever-changing business environment, nothing is con-

stant except change. A flexible, agile employee understands this and
easily adapts his behavior, rather than panicking with every change in
circumstances.

Illustrative Behavior 2: Is open to new methods, ideas, or

approaches.

This behavior is a key to flexibility and agility. The world is in con-

stant flux and people who are not open to new methods, ideas, or ap-
proaches will soon be left behind. Consider that the amount of
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 69

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 69

information in the world is doubling every ten years, or look at what

the Internet has done to the world of marketing—without an openness
to new concepts, neither the individual professional nor the manager, at
any level, can succeed.

Illustrative Behavior 3: Works and collaborates effectively in

unstructured or dynamic environments.

The days of a stable bureaucratic environment that defined every

position and every reporting relationship within an organization are
long gone. The demands of the global business environment and the
ever-changing modes of communication have stripped away structure
and replaced organization charts with dynamic networks. Today’s busi-
ness environment demands flexibility and agility to work effectively,
both as an individual professional and as a manager at any level of an
organization.

Illustrative Behavior 4: Adjusts the original objective or plan

to allow the best possible results.

A flexible, agile employee will adjust goals and objectives continu-

ously to adapt to changing business requirements and environments,
and will consider this as a normal part of the job, rather than as an
imposition.

Illustrative Behavior 5: Demonstrates a willingness to embrace

new systems, processes, technology, and ideas.

This is a particular strength of the younger generations of employ-

ees (GenY-ers and Millennials) who have grown up with the newer
technologies and are great fans and avid users of technologies such as
instant messaging, text messaging, and Wikis. It is also a source of frus-
tration for many baby boomers and GenX-ers who are not as adept at
using newer technologies. No matter what generation, employees and
managers at all levels need to be flexible enough to utilize new tech-
nologies when and where they add value to the organization.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 70

70 AMA Guidebook to Management Development

Illustrative Behavior 6: Stays focused and keeps his or her

team focused during times of uncertainty or change.

This is a major component of flexibility and agility for managers at

all levels—to help employees at all levels keep focused when uncertainty
and change inevitably happen. In times of uncertainty and change, em-
ployees look to their managers as leaders to help them find their way.

Illustrative Behavior 7: Coaches others to be flexible and

adapt behavior to various situations.

Illustrative Behavior 8: Understands that ambiguity is a nor-

mal part of doing business and communicates that to people in
the work unit/function.

This is another aspect of the coaching role of managers at all levels.

Too often, an organization’s management team spends a lot of time and
energy dealing with uncertainty and change, finally making its deci-
sions, but then expects employees to embrace the changes instanta-
neously, not recognizing their own struggles with the changes. But just
as the management team had to work its way through the transition,
managers must coach their employees to help them similarly make
those transitions.1

Illustrative Behavior 9: Anticipates changes in the internal and

external environment (e.g., organizational, market, products,
and systems) and adapts accordingly.

This is a primary responsibility of more senior levels of manage-

ment—anticipating change in the company’s markets, in technologies,
and among its constituencies and competitors, and both adapting to
those changes and helping employees at all levels deal with the needed
changes.

Illustrative Behavior 10: Uses new ideas to reengineer work

processes or make changes in how resources are allocated
within the business.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 71

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 71

This is, again, a major responsibility of senior management (with

input from those actually doing the work)—to reengineer work pro-
cesses and reallocate resources to respond to change.2 The pioneering
work in reengineering done by Hammer and Champy is among the
most misunderstood of business methodologies—while we believe that
they have great merit, many businesses used the term “reengineering”
as justification for massive layoffs without actually doing any of the
work required to reengineer.

Critical and Analytical Thinking

An employee with this competency regularly questions basic assump-
tions about work and how it gets done, identifying underlying princi-
ples, root causes, and facts by breaking down information and data and
their implications, and drawing conclusions based on their analyses.
They understand the complexity of certain issues and crystallize the
components of those issues to make them more manageable by apply-
ing sound reasoning.

Illustrative Behavior 1: Challenges established thinking,

processes, or protocols with company success in mind.

This is the very definition of critical thinking—questioning assump-

tions. In every organization, employees work under a set of assump-
tions. These assumptions may be based on past rules and decisions or
more tacit elements of the company’s or a group’s culture. Too often,
employees at all levels make suboptimal decisions based on incorrect as-
sumptions. Employees with this competency will make tacit assumptions
explicit and question those assumptions if they believe that operating
under those assumptions will lead to less than optimal business results.

Illustrative Behavior 2: Quickly and systematically analyzes

the root cause of work-related problems before taking correc-
tive action.

Illustrative Behavior 3: Recognizes and communicates the im-

plications of data/information.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 72

72 AMA Guidebook to Management Development

Illustrative Behavior 4: Is able to clearly frame a problem,

identify and collect the necessary data, and make recommenda-
tions for solving the problem.

Illustrative Behavior 5: Takes complex issues or problems and

breaks them down into manageable components.

There is an old story about an Indian chicken farmer who lived out-
side of New Delhi. For many years, he successfully raised and sold his
chickens to support his family. One morning, when he went to feed the
flock, he found several dead chickens. Not knowing what to do, he
packed a bag, took a train into the Himalayas, climbed a high mountain
and found a guru. “Oh, guru,” he wailed, “some of my chickens have
died!”
“What do you feed them?” asked the guru.
“I feed them corn,” replied the farmer.
“You must change their diet to wheat,” declared the guru.
The farmer descended the mountain, took the train home, and
changed the feed from corn to wheat. For several weeks, everything
went fine. But one morning, he went to feed the flock and found several
more dead chickens. So he packed his bag again, took the train,
climbed the mountain, and found the guru. “Oh, guru—more of my
chickens are dead!”
“How do you give them water?” asked the guru.
“I have wooden bowls that I fill with water,” replied the farmer.
“Troughs!” declared the guru. “Go home and build troughs.”
Again the farmer returned home, built troughs, and his flock
thrived for the next several months. But one morning, the farmer found
more dead chickens. Back to the guru! “Guru! More chickens are
dead!”
“How do you house the chickens?” asked the guru.
“I built wooden chicken coops for them.”
“You need a new ventilation system,” declared the guru.
Back home, the farmer spent his savings to build a new ventilation
system. For two years, his business was better than ever—until, one
morning, he went to feed the flock and ALL the chickens were dead!
Back at the guru’s cave, the farmer cried, “All my chickens are dead!”
“That’s too bad,” said the guru. “I had many more solutions.”
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 73

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 73

Clearly, the guru did not have the competency of critical and ana-
lytical thinking and jumped to many conclusions without ever under-
standing the problem.

Illustrative Behavior 6: Understands how data and recom-

mendations may impact other functions and departments.

Illustrative Behavior 7: Relates problems to one another and

to strategic objectives to recognize opportunities for dealing
with several related problems at the same time.

These behaviors illustrate some of the major challenges when em-

ployees take more general business management positions after having
worked in a single functional area for most of their careers–understand-
ing how solving a problem in one area may cause even greater prob-
lems in other areas. To develop this competency, managers must learn
to view the organization as a complex system in order to trace prob-
lems to their source and to make decisions that optimize the entire sys-
tem. Too often, managers new to general business management
overrely on the function in which they started their career.

Creative Thinking
This competency involves reexamining traditional strategies and prac-
tices, and proactively looking for new ideas and ways to improve prod-
ucts, services, and work processes. An employee with this competency
looks at problems and opportunities from a unique perspective, seeing
patterns and themes that are not immediately apparent to others and
taking time to refine and shape a new idea so it has a higher likelihood
of success.

Illustrative Behavior 1: Suggests ways to improve processes

and create efficiencies (e.g., is willing to question current ap-
proaches in the interest of maximizing efficiency, suggests bet-
ter ways to do the work).

Illustrative Behavior 2: Demonstrates creative approaches to

solving problems and generates innovative approaches.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 74

74 AMA Guidebook to Management Development

While the first behavior is similar to “critical thinking,” it goes be-

yond questioning underlying assumptions to encompass brand new ap-
proaches to create both effectiveness (doing the right thing) and
efficiency (doing things right). A creative thinker considers brand new
approaches as well as modification to current approaches.

Illustrative Behavior 3: Demonstrates creative approaches to

locating and applying information to meet internal and external
customer needs.

Illustrative Behavior 4: Proactively identifies ways to improve

current workflow and procedures to better meet internal and
external customer needs (e.g., challenges the status quo).

Many people feel that really creative individuals have different ways
of thinking, that their brains may be wired differently. In reality, most peo-
ple have the capacity for creative thinking, but may need a spark to ignite
it. Often this spark can come from reading articles, taking field trips, visit-
ing customers, doing benchmarks on other companies (both within and
outside or the organization’s own industry), and using other methods of lo-
cating information relevant to the organization’s work and the needs of its
customers. Of course, creative thinking has no value unless the new ideas
are applied to the employee’s and the organization’s work to make a posi-
tive difference in personal and organizational performance.

Illustrative Behavior 5: Recognizes patterns or themes in

data/information that may not have been readily apparent (e.g.,
looks for relationships among issues/problems rather than as-
sume they are distinct and independent).

Again, this is related to the previous competency of analytical

thinking—seeking patterns or themes that may not have been readily
apparent in order to find root causes of problems and opportunities for
future improvements.

Illustrative Behavior 6: Solicits input from others who have

unique or vastly different perspectives when shaping an idea or
plan.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 75

Chapter 3 ◆ AMA Model: Knowing and Managing Yourself 75

This behavior is especially important for managers at all levels. Too

often, when an employee is promoted to a management position, at any
level, he feels that he must have all the answers himself, without the
benefit of consulting other people. To the contrary, the competent man-
ager will solicit ideas from a wide variety of sources to expand his own
thinking and to plan the best way forward for the group he manages.

Illustrative Behavior 7: Coaches others to think creatively and

encourages brainstorming when solving problems or making
decisions.

A competent manager knows that she alone cannot be the only cre-
ative thinker in her group or function if she wants to succeed. She
therefore encourages employees to practice creative thinking and
coaches them on creative thinking techniques, rewarding them for their
good ideas, at the same time allowing that not all creative ideas will be
successful.

Summary
While there are many competencies to consider and master within the
category of “knowing and managing yourself,” we should remind you
that it is virtually impossible for any one individual to master all of
these competencies, not to mention the two other competency cate-
gories (knowing and managing others and knowing and managing the
business) that will be presented in the next two chapters.
Our best advice for individuals is to identify areas of strength and
areas that need strengthening, to work with your manager to identify
which of those areas are most important for you, and to work to capital-
ize on your strengths and compensate for your weaker areas. For man-
agers, we recommend that you examine not only the strengths and
weaknesses of individuals, but also to try to assemble a team where in-
dividual employees can build on each other’s strengths and compensate
for each other’s weaknesses.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch03.qxp_SR 3/18/08 2:57 PM Page 76

This page intentionally left blank

6826ch04.qxp_SR 3/18/08 2:58 PM Page 77

C H A P T E R

4
The AMA Management
Development Competency
Model

Knowing and Managing Others

very employee has to deal with other people—peers, managers, em-

Eployees, customers, suppliers, and many others. In this chapter, we
will focus on the competencies needed to effectively relate to and deal
with others in the workforce.
The AMA competencies in the “knowing and managing others”
category cut across the organization and affect everyone from individ-
ual professionals to executives. Remembering the cumulative nature of
the AMA competencies, discussed earlier, competencies acquired at the
individual professional level continue and are built on and refined as
one ascends the management ladder.
The competencies addressed in this chapter are listed in Table 4.1.
Once again we discuss each competency and the level of the organiza-
tion where it first becomes obvious or needed and then comment on
how the competency may change as the employee climbs the manage-
ment ladder.

Oral Communication
AMA defines this competency as being able to convey ideas clearly to
others. It includes projecting credibility, poise, and confidence, even

© 2008, AMACOM, a division of the American Management Association 77

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 78

78 AMA Guidebook to Management Development

TABLE 4.1 Competencies for Knowing and Managing Others

• Oral Communication
• Written Communication
• Valuing Diversity
• Building Teams
• Networking
• Partnering
• Building Relationships
• Emotional Intelligence/Interpersonal Savvy
• Influencing
• Managing Conflict
• Managing People for Performance
• Clarifying Roles and Accountabilities
• Delegating
• Empowering Others
• Motivating Others
• Coaching
• Developing Top Talent

under difficult or adversarial conditions. People with this competency

speak enthusiastically and use vivid language, examples, or anecdotes
to communicate a message; they make use of unambiguous language,
gestures, and nonverbal communication. This competency requires the
basic skills of considering the needs of an audience and how it is likely
to react, talking to people in a way they can understand, listening atten-
tively to others, and using appropriate grammar and vocabulary.

Illustrative Behavior 1: Uses effective listening skills to iden-

tify important information in conversations and to engage
people (e.g., pays attention to orally communicated facts and
details, discerns and responds to the feelings and underlying
messages of others, paraphrases, asks relevant, open-ended
questions).

Everyone, at every level in the organization, needs listening skills. It

is important to pay attention when people communicate facts, details,
and ideas orally. Good listeners pick up on feelings and respond to
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 79

Chapter 4 ◆ AMA Model: Knowing and Managing Others 79

those feelings and to underlying messages conveyed in a conversation.

Good listeners are good questioners; they can paraphrase other’s ideas
and ask appropriate open-ended questions to gain more information.
Whether in a meeting or in one-on-one situations, listening is always
important. At higher levels of the organization, it takes on even more
importance because most executives are totally dependent on others to
bring them information about situations, problems, and future direc-
tions. Good listening and questioning skills help those executives sift
through the information to make appropriate decisions and determine
appropriate action steps.

Illustrative Behavior 2: Clearly articulates ideas, opinions, and

information so others understand them.

Everyone needs to be able to express ideas, opinions, and informa-

tion in a way that others will understand. This includes use of appropri-
ate vocabulary, sentence structure, and logical patterns of putting ideas
together in a conversation so others can easily follow and grasp the
meaning of what is communicated. Too much slang or inappropriate
humor can hinder understanding.

Illustrative Behavior 3: Uses appropriate medium (e.g., voice-

mail, face-to-face, one-on-one, team meeting) depending on the
information being communicated.

Selecting the media for a message is not just a matter of personal

preference. Certainly we all do have preferences for how we like to
communicate, and we would like to use them exclusively. But some
media are more personal, some are more easily misunderstood, and
some are more appropriate for the particular message being conveyed.
The business literature is filled with stories of inappropriate use of
e-mail, from companies that delivered termination notices to the indi-
vidual who criticized upper management decisions. It is good to re-
member that e-mail never disappears; it is easy to pass around and
leaves a record to be retrieved. E-Mail is efficient and easy, but the per-
sonal and emotional touch is missing. Any message dealing with per-
sonnel issues needs to be conveyed face-to-face so people have that
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 80

80 AMA Guidebook to Management Development

personal connection and a chance to ask questions, express feelings,

and hear the rationale in a dialog. Media selection is part of the
message.

Illustrative Behavior 4: Adapts his or her communication

strategy to the audience.

Most of us have heard it is important to adjust to an audience, but

doing it is hard. This is a particularly big adjustment for the first-level
manager. As individual professionals, most of us craft our messages
from our point of view, with the idea of being heard and getting our
message across. We focus on presenting it logically, being enthusiastic,
and “fighting” for adoption or implementation. Managers, beginning at
the first level, must begin to think of what will reach and motivate the
recipient of the message–the audience he or she is talking to. There re-
quires a mindset shift. No longer is it sufficient to present a message just
logically or enthusiastically. Thought must be put into shaping the mes-
sage to address the audience’s concerns, so the audience understands
and is engaged and motivated to take appropriate action. Managers and
executives need to take the pulse of their audiences and craft their mes-
sages accordingly.

Illustrative Behavior 5: Ensures that people are provided with

clear, timely, and accurate information about issues that may af-
fect their work.

Beginning at the first-level manager, the ability to identify informa-

tion that people need to do their jobs and to deliver it to employees
when they need it is a critical competency. Prior to being a manager,
people share ideas, but their focus is on their own performance. Man-
agers must develop the “radar” necessary to determine who needs to
know what and when they need to know it. Sharing information and dis-
cussing issues at the appropriate time not only enables employees to get
the job done, it builds the trust necessary for the team to function well.

Illustrative Behavior 6: Exhibits confidence and enthusiasm

when presenting information.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 81

Chapter 4 ◆ AMA Model: Knowing and Managing Others 81

For the mid-level manager and the functional manager, the ability
to communicate enthusiastically, with credibility and poise, inspires
trust and confidence in employees. When conditions are good, this fos-
ters the feeling of teamwork and promotes pride in the organization
and its leadership. When conditions are difficult, it inspires confidence
in employees that the leadership is aware of the difficulty and is work-
ing to remedy it. In either case, confidence and enthusiasm are read as
competence by employees.

Illustrative Behavior 7: Effectively facilitates group conversa-

tions in order to clarify issues and establish direction.

Much of the work of mid-level managers and functional managers

depends on leading group discussions and encouraging teamwork in
identifying issues and solving problems. They need to bring out the
best thinking in each of their direct reports, get employees working to-
gether, and keep the group focused on the issues at hand. Knowing
group dynamics and how to draw some people out, while quieting oth-
ers, are critical skills.

Illustrative Behavior 8: Delivers presentations to both small and

large groups in a well-organized, clear, and articulate manner.

Mid-level and functional managers spend a lot of time presenting

information to different-sized groups; they need to project both compe-
tence and confidence as they do so. To effectively convey their mes-
sages, they need to organize the message so recipients can follow it
easily, providing only essential information, appealing to the interests
and issues of importance to the audience, and projecting a warm and
caring presence. These presentation skills enhance the possibility of the
listeners’ understanding the message.

Illustrative Behavior 9: Understands when “skip level” com-

munication may be appropriate and necessary (e.g., stays in
touch with front-line employees without diminishing the author-
ity of his or her direct reports).
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 82

82 AMA Guidebook to Management Development

Sometimes a functional manager needs information from the front

line. An essential competency is knowing when, and how to, maintain
contact with front-line employees without hurting the authority of his or
her direct reports. This is called “managing by walking around” in
some management books, and it enables the functional manager to
gather critical information about what is happening in the business.
To be effective, the manager must maintain the trust of his or her di-
rect reports so they do not feel micro-managed or threatened by the
possibility of being second-guessed on how they are handling their
responsibilities.

Written Communication
AMA defines the written communication competency as expressing
ideas and opinions clearly in properly structured, well-organized, and
grammatically correct reports and documents. This competency re-
quires the use of language and terminology appropriate to the reader
and using appropriate grammar and punctuation.
All but one of the illustrative behaviors for this competency apply
at every level of the organization. The last behavior, “placing material
in a broader, organizational context, pointing out connections and rela-
tionships,” is most critical at the mid-level and functional manager
levels.

Illustrative Behavior 1: Uses language that is clear to the

reader.

Illustrative Behavior 2: Writes documents free of grammatical

or punctuation errors.

Illustrative Behavior 3: Presents ideas or opinions clearly and

succinctly in writing.

Writing well is a critical lifelong skill for everyone in the organiza-

tion. With the proliferation of electronic communications, documents
and ideas circulate freely. Well-written documents are more easily and
quickly read, more readily understood, and convey confidence in the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 83

Chapter 4 ◆ AMA Model: Knowing and Managing Others 83

ideas presented. Poorly written documents are frustrating to read and

often misunderstood. According to Lynne Truss, author of the runaway
best selling grammar book, proper grammar and punctuation are cour-
tesies that help readers to understand what was written without stum-
bling.1 Those courtesies are appreciated by readers, help convey the
author’s ideas effectively, and need to be used by all in the organiza-
tion. Sloppy usage or low standards project indifference toward the
message being conveyed.

Illustrative Behavior 4: Uses e-mail as an appropriate medium

(understands when a face-to-face or telephone conversation
would be more effective).

E-Mail is most effective for sharing a quick, straightforward mes-

sage with little emotion attached, for transporting large documents, and
for creating a paper trail when documentation is needed. It is not ap-
propriate for lengthy discussions, issues where reasoning might be mis-
understood, or where emotional reactions are anticipated. Personal
messages and issues are best shared in face-to-face situations, not in
e-mail.

Illustrative Behavior 5: Writes with a logical structure (e.g., in-

troduction, supporting information, conclusion).

Illustrative Behavior 6: Breaks down a complex concept so

that is easily understood by the target audience.

Illustrative Behavior 7: Uses examples that are suitable and

relevant for the target audience.

Logical structure makes communications easy to read and digest; it

makes a document reader-friendly. Since most readers today are in a
hurry, better-structured documents are quicker to scan and easier to un-
derstand. When Peg Pettingell was with Accenture, one of her responsi-
bilities was teaching new consultants an inductive reasoning structure
advocated for all senior executive level and client communications be-
cause it was believed C-level executives want the bottom line first, then
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 84

84 AMA Guidebook to Management Development

supporting evidence. Whether the organization relates best to inductive

or deductive reasoning, structuring your document helps ensure it will
be read and understood. At the same time, conveying ideas simply and
appropriately for the audience holds their interest and compels them to
read to the end. Purging your written communications of redundant
phrases and excess words allows the core ideas to emerge clearly.

Illustrative Behavior 8: Places material in a broader organiza-

tional context, pointing out connections and relationships.

Mid-level and functional managers have a broader understanding

of the issues facing an organization. They can draw on that knowledge
to convey important concepts to employees. This helps everyone un-
derstand the organization’s mission and operations better; it helps em-
ployees see beyond their small portion of the organization’s business
and put their job in the context of the whole.

Valuing Diversity
AMA defines this competency as demonstrating respect for individual
differences. This includes cultural differences, as well as diverse ways
of thinking or approaching issues. People with this competency are
able to establish a climate in which all people can be comfortable and
productive; they evaluate the work of others in a culturally neutral
way. This competency includes selecting and developing people in
multiple cultural settings and being able to communicate effectively
with and in multiple cultures. This competency is expressed by under-
standing how culture influences people’s behavior and adapting one’s
style and behavior to meet cultural norms and expectations. People
with this competency can take advantage of their unique cultural
knowledge, capability, or information to develop or enhance products
or services.
In today’s global business environment, this competency has taken
on more importance during the last few decades and will continue to
grow. It is a competency needed by everyone in the organization, but
some behaviors are particular to the manager levels.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 85

Chapter 4 ◆ AMA Model: Knowing and Managing Others 85

Illustrative Behavior 1: Relates effectively with people of di-

verse backgrounds (both cultural backgrounds and those who
have different ways of thinking or approaching issues).

Illustrative Behavior 2: Adapts his or her style and behavior to

meet cultural norms and expectations.

Each year most of us encounter more and more coworkers, clients,

and customers who are from backgrounds different from ours. Being
sensitive to cultural differences means you treat everyone with respect
and dignity; you try to learn the norms or expectations that are differ-
ent, and that you were not previously aware of, and adapt to them. This
goes beyond just cultural concerns to include tolerance of different
thinking and operating styles as well. Effective organizational teams are
composed of people with differing styles, people who can complement
each other’s strengths and make up for the other’s weaknesses. Conver-
gent and divergent thinkers bring very different skills to the table, and,
in concert, can bring more depth and perspective to a project—more
than either style would achieve individually. Recognizing and working
with people from other cultures and with different styles, and blending
the strengths of each, makes for a richer organization.

Illustrative Behavior 3: Reaches agreement with people who

share different opinions.

Illustrative Behavior 4: Includes people of diverse back-

grounds in his or her informal network.

Illustrative Behavior 5: Challenges others who make racial,

ethnic, or sexually derogatory comments.

Recognizing and accepting differences goes beyond mere tolerance.

It means including people in networks and social events, making them
feel a true part of the team, and treating them as others are treated. It
also means standing up to individuals who poke fun at or criticize dif-
ferent cultures, races, or styles; it means taking a stand to let those indi-
viduals know that behavior is not tolerated in this organization. In

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 86

86 AMA Guidebook to Management Development

short, these behaviors are evidenced by actions that individuals consis-

tently exhibit in their work unit.

Illustrative Behavior 6: Coaches others on how cultural norms

and expectations influence behavior.

Illustrative Behavior 7: Demonstrates a respect for individual

differences by creating an environment in which people can be
themselves.

Illustrative Behavior 8: Evaluates team members’ perform-

ance in a culturally neutral way.

Managers at all levels have even more responsibilities in supporting

diversity. Managers teach by example; employees observe their behav-
iors to see how they handle situations and how they evaluate people’s
performance. By constantly modeling respect for differences, managers
establish an open environment where all can be comfortable and feel
respected. For the good of the work unit, managers must continually as-
sess team members’ attitudes and behaviors with respect to diversity
and work with team members who are not as tolerant of, or comfort-
able with, differences. This ongoing coaching demonstrates the man-
ager’s commitment to a culturally neutral environment and helps
employees learn.

Illustrative Behavior 9: Leverages unique cultural knowledge,

capability, and/or information to develop or enhance products
or services.

Illustrative Behavior 10: Appreciates the contributions of dif-

ferent functions across the organization and involves them ap-
propriately and in planning and decision making.

Mid-level managers and functional managers work across teams,

departments, and divisions. They encounter more diversity and more
cultural differences simply because they are exposed to more people,
both inside and outside the organization. They are in a unique position

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 87

Chapter 4 ◆ AMA Model: Knowing and Managing Others 87

to recognize the knowledge and capabilities of the people they en-

counter; they need to harness those abilities for the good of the organi-
zation. Managers need to be open to crossing functional lines and to
involving people who can contribute special knowledge and talents to
business undertakings.

Building Teams
To AMA, this competency means facilitating the constructive resolution
of conflict; increasing mutual trust; and encouraging cooperation, coor-
dination, and identification with the work unit. People with this compe-
tency are seen encouraging information sharing among individuals who
do not know each other and who may represent different cultures. Peo-
ple with this competency include others in processes and decisions re-
gardless of geographical distance or location; they find creative ways to
minimize the effects of different time zones on the quality and fre-
quency of interactions.
This competency is important at every level of the organization,
with more implementation responsibilities coming into play at the first-
level manager, the mid-level manager, and the functional manager
levels.

Illustrative Behavior 1: Acts on opportunities to collaborate

across the organization, regardless of geography or cultural
differences.

Illustrative Behavior 2: Proactively helps team members both

within and outside of his or her group.

Everyone in the organization shares the responsibility for working

cooperatively within teams, even when team members are scattered in
different places. Each individual needs to be assertive in helping the
team function smoothly. This means sharing information, support-
ing team members, keeping in contact, attending meetings, etc. For a
team to function smoothly, everyone is responsible for contributing to
success.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 88

88 AMA Guidebook to Management Development

Illustrative Behavior 3: Shares credit for successes with team

members (i.e., gives credit where credit is due).

Illustrative Behavior 4: Solicits and offers feedback on how

people could work most effectively together.

When individuals join a team, at any level of the organization, they

take on some responsibility for helping that team function effectively.
One responsibility is to recognize and support other team members, ac-
knowledging their contributions and not trying to take credit for their
ideas, their work, or their successes. Another responsibility is to speak
up when he or she has ideas on how the team could function better and
to ask others for their opinions and ideas on that as well. That creates
an open environment where all share freely for the betterment of the
team’s work.

Illustrative Behavior 5: Encourages frank and open discussion

of a disagreement.

Illustrative Behavior 6: Encourages cooperation and team-

work among people who depend on each other to get the work
done.

Illustrative Behavior 7: Coaches people to partner with col-

leagues across the organization, regardless of cultural differ-
ences or geography.

Managers make special contributions to teams. Because they are re-

sponsible for seeing that work gets done, managers must continuously
support team cooperation and the healthy exchange of ideas. If and
when dissension occurs, the effective manager sees that it is acknowl-
edged and fosters an open exchange of all viewpoints, making sure all
individuals are respected in the process. Managers continue to coach
the team, and individuals on the team, in ways to resolve their differ-
ences and work productively together. To extend the concept of team-
work, managers encourage their teams to reach out beyond their work
unit to find the resources and information they need to do their job,
even when it is in a different locale.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 89

Chapter 4 ◆ AMA Model: Knowing and Managing Others 89

Illustrative Behavior 8: Recognizes conflicting priorities across

the organization and initiates joint problem solving to deter-
mine the best course of action for the organization.

Illustrative Behavior 9: Encourages and facilitates cross-unit

cooperation and coordination.

Mid-level managers and functional managers have a broader orga-

nizational perspective. Because of their knowledge of higher level or-
ganization initiatives, issues, and concerns, they see more interrelationships
and have ideas on how people who might not know one another could
be working together for the organization’s benefit. They are in a unique
position to make the necessary introductions and to foster that exchange,
particularly when they see conflicts that threaten organization initiatives.
Their responsibility to help solve problems requires them to call on the
best people, across the organization, to contribute to solutions.

Networking
This AMA competency is defined as socializing informally. It includes
developing contacts with people who are a source of information and
support and maintaining those contacts through periodic visits, telephone
calls, correspondence, and attendance at meetings and social events.
All the behaviors are important at every level of the organization—
an unusual occurrence. That underscores the importance of this compe-
tency for everyone. The more people network and keep in touch, the
better for them and for the organization.

Illustrative Behavior 1: Relays relevant experiences and

passes on knowledge unselfishly.

Illustrative Behavior 2: Maintains contacts with people in

other areas of the company or in different organizations who
can be useful sources of information or resources.

Illustrative Behavior 3: Does favors (e.g., provides informa-

tion, assistance, political support, or resources) to maintain good
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 90

90 AMA Guidebook to Management Development

working relationships with people whose cooperation and sup-

port are important.

Illustrative Behavior 4: Attends meetings and social events to

continually solidify and grow his or her network.

Connecting with other people helps “grease the wheels” for getting a
job done. Informal relationships help an individual get the information
he or she needs and keep abreast of what is happening in other areas of
the organization. Mere contact is not enough; information and experi-
ences need to be shared on a frequent basis to keep relationships current
and top-of-mind. One way to ensure the continuing exchange of informa-
tion is doing favors for others in the organization. The favors can be sim-
ple, like sharing information, or more complex, like providing resources
or political support. Networking helps everyone build support and be-
come known across the organization, while it also helps people know
what is happening in other areas and what political situations are emerg-
ing. Because of the importance of networking for staying informed,
everyone must continually grow his or her network by participating in
social gatherings and meetings, getting to know new employees, and con-
tinually keep in contact with their network members.
External networks are also important and can be developed
through professional organizations and attendance at various confer-
ences and specialized meetings. Those external networks bring an
added dimension due to the fact that people from different organiza-
tions will have differing perspectives. They can help you think things
through with a fresh eye and, in turn, have other people in their net-
works to call on for help.

Illustrative Behavior 5: Uses his or her network to solve prob-

lems efficiently and effectively.

Illustrative Behavior 6: Actively designs his or her network in

anticipation of future needs or plans (e.g., has clear goals in
mind when building his or her network).

One of the main reasons for networking is to have help in getting

the work done. Knowing whom to go to, who can point you in the right
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 91

Chapter 4 ◆ AMA Model: Knowing and Managing Others 91

direction, who has confronted similar problems previously, who is a

good sounding-board or mentor, or who has a good reputation for solv-
ing difficult situations is a tremendous benefit when issues arise. It can
help any individual make better decisions in timely fashion. At the
same time it is well to keep an eye out for people who are outstanding
in their abilities, or perhaps new to the organization and well thought
of, and include them in your network. As you progress in the organiza-
tion, you may have a need to call on their expertise.

Partnering
AMA sees partnering as identifying, building, and managing external
partnerships that add value to the company. This competency includes
initiating and leveraging opportunities to work with others across the
organization to maximize individual and organizational effectiveness
and working effectively across organizational boundaries to accomplish
a shared objective. This competency requires developing networks and
alliances across the organization to build influence and support for
ideas. It is important at every level of the organization, with two behav-
iors most evident and needed at managerial levels.

Illustrative Behavior 1: Builds relationships with colleagues in

other functional groups (e.g., proactively shares knowledge and
best practices with people in other groups, understands the ob-
jectives of other functional groups and their effect on the com-
pany’s success).

Illustrative Behavior 2: Readily shares information, knowl-

edge, best practices, and ideas with people across organizational
units.

Reaching beyond your unit of the organization is a great way to ex-

pand your understanding of the total operation and how all units fit into
the bigger picture. As you talk with people in other units, you gain an
understanding of the complexity of the business enterprise and the part
everyone plays in contributing to success. Those relationships are de-
pendent upon freely exchanging information, being sure to share what
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 92

92 AMA Guidebook to Management Development

your unit does, thereby helping others understand your unit’s function
and role in the business’s success, as well.

Illustrative Behavior 3: Asks consultative questions of cus-

tomers, colleagues, managers, and others to identify business
needs and solutions.

Illustrative Behavior 4: Forms alliances with people in differ-

ent organizational units to work toward mutual objectives.

Effective partnering requires your discovery of needs and solutions

for present and future business opportunities. Being interested in what
is going on in other departments, and with your customers, coupled
with good questioning and listening skills helps you probe for those op-
portunities. Once a need or solution emerges, you want to be able to
work with people in other units to successfully achieve business objec-
tives for the good of the organization. Effective alliances smooth the
way for such communications.

Illustrative Behavior 5: Coaches team members to consult

with other departments/work units in solving problems and
making decisions.

First-level managers, mid-level managers, and functional managers

need to coach their direct reports to partner within the organization. In-
deed, they also may have to help identify and create opportunities to
make this happen. Team members may not see the connections that
can be made, so making suggestions, offering advice, and using effec-
tive questioning skills will enhance their understanding.

Illustrative Behavior 6: Manages external partnerships accord-

ing to agreed-upon plans and standards.

Illustrative Behavior 7: Identifies and builds external partner-

ships that add current or future value to the company.

Mid-level and functional managers are responsible for reaching out-

side the organization and developing relationships that are, and will
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 93

Chapter 4 ◆ AMA Model: Knowing and Managing Others 93

continue to be, valuable to them and to the enterprise. Memberships in

key organizations and on boards, as well as community involvement
activities and personal business contacts, all serve this purpose. Being
tuned into the business and professional community, staying abreast of
political issues, and determining emerging opportunities are valuable
skills for higher level managers.

Building Relationships
AMA defines this competency as being skilled at detecting and inter-
preting subtle clues, often nonverbal, about others’ feelings and con-
cerns. People with this competency display empathy and sensitivity to
the needs and concerns of others and support others when they are fac-
ing difficult tasks. When you have this competency, you enjoy dealing
with people and working with people of diverse styles and back-
grounds. All of the behaviors are critical at all levels in the organiza-
tion; getting along with people is a critical skill for everyone.

Illustrative Behavior 1: Seeks out people and actively shares in-

formation instead of waiting for others to connect with him or her.

This competency requires you to be proactive in reaching out to

others, not being afraid to share information before you are asked.
When you are open and willing to communicate, it establishes a
friendly, open atmosphere in the workplace. People respond to that and
tend to be more open in return.

Illustrative Behavior 2: Promptly returns all forms of commu-

nication to others including e-mail, voicemail, and more tradi-
tional forms.

Timely responses to the communications of others makes other

people feel that you care about them and deem them and their commu-
nications important. No matter what mode of communication you pre-
fer, it is usually best to return a message via the same medium that it
was communicated. The message originator is showing a preference,
and you acknowledge that when you use the same vehicle.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 94

94 AMA Guidebook to Management Development

Illustrative Behavior 3: Displays empathy when a person is

dealing with a difficult problem or situation.

When a colleague is facing a difficult issue, it is important to be able

to lend an ear and understand how hard it is for the person at that mo-
ment. It isn’t necessary to offer advice or to try to solve the problem; it
is enough to “be there” with understanding and compassion for what
the person is going through.

Illustrative Behavior 4: Understands and adapts to the differ-

ent working styles, personalities, and cultural backgrounds of
the people he or she works with.

This is a critical skill for all in the workforce, as no two employees

are alike. There must be some tolerance for differences as people work
together. Everyone comes from a different background, with his or her
own view of the world, and each has had different life experiences. All
of this brings richness to the work environment.

Illustrative Behavior 5: Offers to provide advice and support

when a person is facing a difficult problem or issue.

Illustrative Behavior 6: Listens actively to detect both verbal

and nonverbal cues in conversation.

Offering advice to a person dealing with a difficult situation de-

pends upon listening actively. You want to be sure the person is actually
seeking help and not just venting. Active listening skills enable you to
read both verbal and nonverbal cues to more accurately determine
what the person means and if he or she is receptive to, and seeking,
advice.

Emotional Intelligence/Interpersonal Savvy

AMA defines this competency as being attuned to how others feel in
the moment, sensing the shared values of the group, and using that
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 95

Chapter 4 ◆ AMA Model: Knowing and Managing Others 95

insight to do and say what’s appropriate. This includes understanding

others’ feelings, motives, and reactions and adapting one’s behaviors
accordingly, as well as appreciating the effect of one’s behavior on oth-
ers. People with this competency are at ease when approaching others
during social occasions, able to make and maintain a favorable impres-
sion, and able to mingle effortlessly.

Illustrative Behavior 1: Demonstrates awareness for others’

feelings and adapts own behavior accordingly.

Illustrative Behavior 2: Encourages others to speak or share

their perspective on a situation.

Illustrative Behavior 3: Is attentive to others’ needs.

Illustrative Behavior 4: Is at ease in social situations; makes

others at ease.

These behaviors demonstrate sensitivity to the thoughts and feel-

ings of others. When this sensitivity is present, an individual or man-
ager senses the underlying emotions and messages in a communication
and delivers the correct response in conversations, providing the verbal
and nonverbal support the other person needs. Appropriate responses
are possible because of this “radar” that provides insight into what is
needed at the moment. This intuition smooths the way in social situa-
tions and puts everyone in the group at ease with one another.

Illustrative Behavior 5: Intuitively detects and avoids poten-

tially problematic situations before they take place.

Illustrative Behavior 6: Shows empathy for others’ problems

and concerns.

Illustrative Behavior 7: Knows when to talk and when to listen.

These behaviors help an individual manage almost any situation.

Being sensitive and tuned in to what is happening, and how others are
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 96

96 AMA Guidebook to Management Development

feeling about it, enables an individual or manager to react appropriately

and smooth over almost any situation. Some call this “a sixth sense.” It
is definitely an intuitive response that seems to be coupled with the
sense of knowing when to talk and when to listen during any exchange.
People also sense this competency in others and gravitate to them when
they have a problem or concern because they are certain of being
heard and understood.

Illustrative Behavior 8: Understands how others may perceive

his or her words and actions and that his or her intent may not
always yield the desired impact.

People who demonstrate this behavior seem to understand how

what they do or say affects others. They know they might be misunder-
stood in any exchange, but are comfortable enough with themselves
that they realize the interpretation of their words and actions is beyond
their control.

Illustrative Behavior 9: Helps team members develop the abil-

ity to take into account others’ concerns and perspectives.

The last behavior in this grouping is particular to the management

level. It is demonstrated when managers help their direct reports and
team members develop sensitivity to others and the intuition to analyze
what is happening in communication situations. It involves managers in
coaching others when they are insensitive and providing educational
opportunities for them to develop their interpersonal relationship
“radar.”

Influencing
AMA defines this competency as using techniques that appeal to rea-
son, values, or emotion to generate enthusiasm for the work, commit-
ment to a task objective, or compliance with a request. This includes
using appropriate tactics to change a person’s attitude, beliefs, or
behaviors.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 97

Chapter 4 ◆ AMA Model: Knowing and Managing Others 97

This critical competency applies to every person in the organiza-

tion, and all but one behavior is paramount to all positions.

Illustrative Behavior 1: Talks in a persuasive manner about

the importance of achieving tasks or objectives.

Illustrative Behavior 2: Describes a clear and appealing vision

of what can be accomplished with a person’s cooperation and
support.

These behaviors manifest an individual’s commitment to, and clar-

ity about, what needs to be accomplished. When a person is able to
communicate his or her vision clearly, concisely, and in a compelling
manner, he or she is very persuasive. These behaviors are particularly
valuable when trying to influence people over whom you have no con-
trol or authority.

Illustrative Behavior 3: Develops enthusiasm for a task or

project by appealing to a person’s needs or values (i.e., accom-
plishing a challenging task, beating competitors, doing some-
thing never done before).

Illustrative Behavior 4: Adapts style or approach to meet the

other person’s style.

Illustrative Behavior 5: Explains the benefits of the task objec-

tives to others.

These behaviors demonstrate a compelling delivery style that ap-

peals to the audience at hand, whether colleagues or upper manage-
ment. Enthusiasm is contagious; how can you expect someone else to
be enthusiastic about a project if you don’t demonstrate your own en-
thusiasm? Knowing exactly what will appeal to another person requires
knowing your own style and reading the clues other people give you to
signal how they might prefer to be approached. Emphasizing the bene-
fits of particular interest to other people goes a long way in persuading
them to do what you want. Many of AMA’s courses rely on assessment
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 98

98 AMA Guidebook to Management Development

instruments to help participants determine their style of communication

for just this purpose: Everyone needs to be able to identify the pre-
ferred style of other people and flex his or her own style to influence
others. Flexibility can be difficult, but it results in the other person’s
feeling good about how he or she was approached and being more
likely to comply with the request, particularly if the benefits are pre-
sented well.

Illustrative Behavior 6: Demonstrates willingness to incorpo-

rate input from others.

Illustrative Behavior 7: Listens to others’ points before making

his or her own points.

These behaviors emphasize the need to be open to others, to evalu-

ate their ideas fairly and not be so enamored by your own ideas that
you can’t see the value of ideas presented by others. This requires good
listening skills, skills referred to several times before under other com-
petencies. It depends on sensitivity to the feelings of others, as well. No
one likes his or her ideas dismissed without being considered. It is hard
to work with someone who only appreciates his or her own ideas.

Illustrative Behavior 8: Does not rely primarily on his or her

position power to influence others.

This behavior obviously is one that applies at upper managerial lev-

els, the mid-level, and functional manager levels, because those man-
agers are the people with more power in the organization. Telling people
to do something “because I said so” breeds resentment and mistrust.
Managers at those levels will get more accomplished if they continue to
use their enthusiasm and style-flexing abilities to present their ideas.

Managing Conflict
This AMA competency is defined as recognizing the potential value of
conflict for driving change and innovation. This means knowing when
to confront and when to avoid a conflict and understanding the issues
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 99

Chapter 4 ◆ AMA Model: Knowing and Managing Others 99

around which conflicts revolve. It includes identifying the goals and ob-
jectives of the parties involved and finding common ground. It means
looking for those win/win solutions and seeking agreement on a solu-
tion while eliciting commitment to making it work effectively.
This is a competency of great importance at all levels of the organi-
zation because conflict can be a creative force or a disruptive one, de-
pending on how it is managed. Everyone shares the responsibility to
manage it.

Illustrative Behavior 1: Tries to understand another person’s

perspective during a discussion or disagreement (e.g., does not
rush to refute each point the person makes, listens attentively,
paraphrases the other person’s point of view).

This behavior is evidenced, once again, by good listening skills:

being attentive, paraphrasing the other person’s point of view, and not
rushing to refute every point the other person makes. Questioning skills
also help to draw out the other person’s thoughts so a more thorough
understanding of his or her position is possible.

Illustrative Behavior 2: Wins concessions without damaging

relationships (e.g., creates “win/win” situations, makes appropri-
ate compromises).

Illustrative Behavior 3: Modifies his or her proposals or plans

to deal with concerns and incorporate suggestions to reach a
compromise that benefits the business.

When conflict arises, a focus on maintaining the relationship of the

individuals involved is critical to successful resolution. All people need
to show a willingness to take suggestions from others and to concede
some of their own positions. The focus should be on what benefits the
business as a whole, and the relationship between the individuals, not
on what benefits any one individual.

Illustrative Behavior 4: Challenges people in a way that is

constructive and nonthreatening.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 100

100 AMA Guidebook to Management Development

Illustrative Behavior 5: Confronts and facilitates conflict in a

way that helps people engage in conversation to yield a better
solution.

Illustrative Behavior 6: Understands when conflict should be

confronted and when it should be avoided.

Illustrative Behavior 7: Identifies the likely source of a conflict

before taking action.

Maintaining a calm demeanor, using effective listening skills, prob-

ing to determine what the conflict is really about, and knowing when to
make the call to confront or avoid conflict are all invaluable and impor-
tant skills that require thought and practice over time. Certainly people
with emotional intelligence have an advantage because they are sensi-
tive to others and used to dealing successfully with people in a variety of
situations. They generally have good listening skills and can question ap-
propriately. Those skills are particularly valuable in conflict situations.

Illustrative Behavior 8: Coaches others on how to resolve con-

flict in a constructive behavior.

Obviously a managerial skill, this behavior is needed from the first-

level manager and beyond. The ability to coach others depends on the
experience and skills gained and exercised at the individual profes-
sional level, accompanied by experience gained as you are responsible
for the behavior of others in a team atmosphere.

Managing People for Performance

AMA defines this competency as setting clear performance targets and
gaining a personal commitment to accomplishing those targets. This in-
cludes checking on the progress and quality of the work and providing
specific feedback on a regular basis so others understand what they
have done well and how they can improve in the future. It means
addressing performance problems by gathering information and set-
ting goals for improvement in a fair and consistent manner. This
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 101

Chapter 4 ◆ AMA Model: Knowing and Managing Others 101

competency is particular to people in the managerial levels of the or-

ganization, as you would expect.

Illustrative Behavior 1: Sets goals that are clear, specific, and

measurable (i.e., quantifiable or verifiable).

Illustrative Behavior 2: Conducts periodic performance meet-

ings with direct reports to review progress against goals and en-
sure that goals are relevant and realistic.

Illustrative Behavior 3: Provides balanced, specific feedback

on a regular basis.

All performance management systems list goals, periodic meetings,

and feedback as critical steps in managing people. Obviously this be-
gins with the first-level manager and continues up the organization.
This is an invaluable process for the monitoring and development of
employees, and all elements are critical skills for managers. The focus
here is to target behavioral goals and help direct reports improve skills,
correct problems, or address issues as they arise and before they be-
come major problems. The secret here is vigilance, regularly scheduled
meetings, and frequent exchanges of information and problem solving
together. Follow-up sessions and continuous coaching are integral com-
ponents for success.

Illustrative Behavior 4: Addresses performance problems in a

timely and fair manner by clearly defining where expectations
are not being met.

Illustrative Behavior 5: Develops a sense of commitment in

others to meet challenging, yet realistic, performance targets.

Performance management is not a once-a-year responsibility. If the

manager manages performance well, there will be absolutely no sur-
prises at the time of the annual written performance review.
Managers must be on top of performance issues, because if they are
not addressed immediately, the issues tend to grow quickly. This
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 102

102 AMA Guidebook to Management Development

requires an honest and straightforward appraisal of problems coupled

with a discussion of realistic changes in performance. There is an art to
crafting those realistic performance targets and measurement methods;
they must be created together, with both parties agreeing that they are
achievable and yet challenging enough to indicate change and growth.
By approaching it as a joint venture, the manager develops the employ-
ees’ commitment because they helped set the goals.

Illustrative Behavior 6: Holds first-level managers accountable

for managing others (not only for technical work).

Mid-level managers have a special responsibility as they manage

new managers. New managers are often most comfortable with the
technical aspects of the work and will feel comfortable managing them,
since, after all, they were probably promoted because they were very
good technical professionals. The challenge for the mid-level manager
is making sure new managers also recognize and follow through on
their responsibilities for managing others, with all the personnel issues,
performance issues, and emotions that entails.

Illustrative Behavior 7: Holds people accountable for achiev-

ing their performance goals.

Illustrative Behavior 8: Offers tangible, realistic suggestions

for how people can enhance or improve their performance.

As part of their job, managers at every level must embrace the re-
sponsibility of working with their direct reports to help them achieve
the organization’s and the individual’s goals. This includes helping the
employee set realistic goals and providing the support and coaching the
individual needs. It often falls to the manager to help identify where an
individual can improve and to help come up with suggestions the em-
ployee can consider as avenues to improvement.

Illustrative Behavior 9: Ensures that goals are aligned with or-

ganizational strategy and objectives; clarifies and communicates
cross-functional/departmental interdependencies.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 103

Chapter 4 ◆ AMA Model: Knowing and Managing Others 103

Mid-level and functional managers are in positions that require

working with other leaders and departments to accomplish the organi-
zation’s goals. Because of this, they must communicate more across the
organization and work to ensure their area of responsibility is aligned
with the efforts of other departments and divisions and with the larger
organizational strategy.

Clarifying Roles and Accountabilities

AMA defines this competency as being able to communicate with oth-
ers to make clear what is expected of them. It includes conveying ex-
pectations about timelines and the quality of the employee’s work and
helping people understand how their roles relate to the broader objec-
tives and success of the organization.

Illustrative Behavior 1: Clearly explains expectations about

the quality and timeliness of a task or project.

Illustrative Behavior 2: Specifies a date or time when a task or

project should be completed.

Everyone in the organization shares the responsibility for explain-

ing tasks and projects clearly and completely and for specifying time-
lines and deadlines. Without clear communications, the organization’s
work will not get done, and people will be in a constant state of confu-
sion. Problems and issues arise when directions are misunderstood or
misinterpreted. If tasks are well explained, there is less likelihood you
will hear “You never said it was due tomorrow,” or “I didn’t know you
wanted it done that way.” Clear communication saves time and effort in
the long run and helps avoid irritations and conflict among employees.

Illustrative Behavior 3: Explains how one’s role relates to the

broader objectives of the company.

Illustrative Behavior 4: Explains what objectives or aspects of

the work have the highest priority based on the current busi-
ness environment, organizational initiatives, strategy, and other
parameters.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 104

104 AMA Guidebook to Management Development

All managers need to put work assignments and roles into the con-
text of the total organization’s strategy. That message helps build em-
ployee commitment to the organization and its work. It also helps
emphasize the importance of each role in the total business operation.
When the explanation includes the rationale for priorities, the em-
ployee better understands why he or she is being asked to do some-
thing and the importance of following the directives. It also gives the
employee confidence that upper management has valid reasons for its
requests or for directing that the work be done in a particular way.

Illustrative Behavior 5: Sets task goals that are clear and spe-
cific (e.g., quantitative targets to be attained in the next quarter
or year, activities to be completed by a given date).

Illustrative Behavior 6: Tailors instructions to a person’s skills,

experience, level of confidence, and other needs.

When managers define work, they are responsible for being specific
about what is to be done and the timeframe in which it is to be com-
pleted. To be understood, they need to assess the individual’s skills and
experience and position the message appropriately for that individual.
They are also well advised to ask the person to repeat back the assign-
ment in order to clarify the employee’s understanding of the task.

Illustrative Behavior 7: Takes the initiative to meet with a

person who is not meeting expectations to clearly define what
is expected and why it is important for the business or work
unit.

When employees are not working up to expectations, they may be

unaware of that fact. Managers are responsible for being proactive and
bringing it to their attention. Emphasizing the interdependency of the
entire unit’s work helps the employee see how his or her performance
affects others, something he or she may not have considered. Knowing
that he or she is hindering the performance of others may motivate a
change in behavior.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 105

Chapter 4 ◆ AMA Model: Knowing and Managing Others 105

Illustrative Behavior 8: Coaches others to convey expectations

about the quality and timelines of projects and tasks.

Mid-level and functional managers share this responsibility because

of their unique positions in the organization. Their charge is to “mar-
shal the troops” and accomplish the organization’s work as defined by
senior management. They set the timelines and quality standards to ob-
tain certain business advantages. They need to make other managers
aware of the urgency to produce the quality needed in the time allo-
cated and coach the managers appropriately to make that happen.

Delegating
Delegating is a management responsibility at all levels. AMA defines
delegating as not only assigning responsibilities to direct reports, but
also giving them the authority to carry the assignments out. Effective
delegating includes maintaining the proper level of involvement with-
out abdicating or micro-managing. Managers who delegate well assign
tasks that are a good fit with the person’s capabilities, and when tasks
are assigned for development, they provide guidance to ensure success.
Effective managers always debrief assignments to reinforce learning.

Illustrative Behavior 1: Gives clear instructions (content, dead-

lines, decision-making authority) on delegated tasks and projects.

Illustrative Behavior 2: Clearly communicates the desired re-

sults of the delegated assignment.

When delegating, managers need to map out the assignment, speci-

fying the content, deadlines, decision-making authority, and results ex-
pected. The more explicit the manager is, the better. Managers do well
to leave the specifics of “how” the assignment will be carried out to the
employee. That encourages creativity and reinforces the confidence the
manager has in the employee to perform the task.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 106

106 AMA Guidebook to Management Development

Illustrative Behavior 3: Delegates assignments designed to

meet direct reports’ individual development or career goals as
well as assignments that enable better time management.

Managers have the responsibility for selecting assignments that will

help an individual grow and develop new skills or capabilities. They do
not just delegate things they don’t like to do or are bored with. Effective
managers think of an employee’s current skills and what will move that
person’s performance to the next level, or what will broaden his or her
potential career opportunities. Tasks then need to be selected for the
opportunity to develop that potential.

Illustrative Behavior 4: Provides ongoing coaching and sup-

port without micro-managing delegated assignments.

Managers at all levels must find the balance between giving too
much and too little help with delegated projects. Once a task is dele-
gated, the employee needs to feel ownership and responsibility. If a
manager continuously offers advice, makes suggestions on how to do
things, and generally interferes in the project, the employee will abdicate
that responsibility. A good guideline is to be available and interested in
how things are going, but offer advice only when asked or when you
genuinely sense that the employee is uncertain how to proceed.

Illustrative Behavior 5: Debriefs delegated tasks and projects

to identify key learning and provide both positive and construc-
tive feedback.

Finding the lessons learned from all tasks and projects is an impor-
tant part of any assignment. Managers need to discuss the learning with
employees while it is fresh in their minds. By doing this, the employee
is reinforced in the positive decisions he or she made and/or gets to ex-
amine how things might have been handled differently.

Illustrative Behavior 6: Coaches managers on the importance

of effective delegation for developing and retaining talent.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 107

Chapter 4 ◆ AMA Model: Knowing and Managing Others 107

Mid-level and functional managers hold a special responsibility for

coaching other managers about the importance of delegating. They
need to continually feed the leadership pipeline with people who are
learning to take on more responsibility and growing their skills. They
need to help other managers see that employees learn new skills so em-
ployees are motivated to stay and contribute to the organization. When
not fulfilled, employees take their talent elsewhere, and the organiza-
tion suffers. This is increasingly important today, with the potential
shortage of available people to fill jobs looming on the horizon.

Illustrative Behavior 7: Systematically reviews own responsi-

bilities and identifies opportunities to delegate projects or initia-
tives to ensure he or she is focused on strategic issues.

Functional managers need to continuously purge their tasks and as-

signments, selecting developmental and growth assignments to delegate
to their direct reports. It helps them continue to develop their staff and,
at the same time, free themselves for more time to do the strategic plan-
ning and outreach that will benefit their division and the organization.

Empowering Others
Empowering others, as AMA defines it, means giving people the au-
thority, information, resources (e.g., time, money, equipment), and
guidance to make decisions and implement them. Because of the nature
of this competency, it falls primarily to managers. However, individual
professionals may exhibit the first illustrative behavior and, as they ap-
proach promotion to manager, may exhibit the behavior more.

Illustrative Behavior 1: Provides people with the information

they need to do their jobs well.

Everyone in the organization needs to share information freely so

that all can perform to the best of their abilities. When information is
withheld or is incomplete, it hinders the effective accomplishment of a
task. Knowing that a person needs information, an effective employee
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 108

108 AMA Guidebook to Management Development

sees that the person gets what is needed and doesn’t necessarily look for
the individual to find it on his or her own.

Illustrative Behavior 2: Allows direct reports to make impor-

tant decisions and implement them without prior authority.

Illustrative Behavior 3: Presents an assignment in general

terms and allows others to determine action steps for imple-
mentation.

Illustrative Behavior 4: Encourages others to come up with so-

lutions or ideas on their own; acts as a sounding board when
needed.

Managers at all levels need to allow their direct reports some lee-
way in determining how they do their jobs. Letting go of the need to
control what happens enables an employee to be more creative in ap-
proaching a task. Continuing to maintain control and to direct people
hinders an employee’s initiative. Effective managers stand ready to lis-
ten, but help people think through solutions on their own.

Illustrative Behavior 5: Demonstrates confidence in people’s

capabilities; gives people the benefit of a doubt.

Employees quickly sense when a manager has confidence in them.

They pick up on subtle cues and feel good about their jobs and their
abilities when they sense that confidence. They strive to work to the
best of their abilities to demonstrate that the confidence is well placed.

Illustrative Behavior 6: Ensures people have the resources

they need to accomplish a task or objective.

Managers are responsible for seeing that people have what they
need to do their jobs. Without resources, the work cannot be accom-
plished. A vigilant manager anticipates what will be needed and pro-
vides it in a timely fashion. Employees then have what they need and
can accomplish their work.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 109

Chapter 4 ◆ AMA Model: Knowing and Managing Others 109

Illustrative Behavior 7: Asks people in the work unit/function

for feedback on the extent to which they feel empowered to
make decisions.

Mid-level and functional managers need to be confident enough to

solicit feedback from direct reports on how they feel things are work-
ing. If people don’t feel empowered, little will happen beyond the basic
job and tasks assigned. When people feel empowered, they exhibit a
creative energy that enables them to share ideas for improving
processes and products. Upper-level managers need to establish an
environment that ensures that energy exists in the organization so
progress is possible.

Motivating Others
AMA defines this competency as the ability to set high standards re-
garding the quality and quantity of the work to be done. It includes dis-
playing a commitment to the organization and enthusiasm for its
products and services. It is demonstrated by conveying confidence in
others’ capabilities and appealing to others’ unique needs, motives, and
goals to motivate them to achieve. It culminates in celebrating others’
successes and praising them for a job well done. AMA looks to the
management levels of an organization for demonstration of this
competency.

Illustrative Behavior 1: Sets high standards for performance.

Employees know when a manager has high standards. They sense it

through the everyday exchanges of what quality of work is acceptable
and what needs to be redone because it is not up to snuff. They see it
demonstrated in how a manager critiques their work, in what is ac-
cepted, and in what is rejected. Employees take pride in meeting high
standards and in having a manager who demands the best from them.

Illustrative Behavior 2: Models excellence and enthusiasm for

the work.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 110

110 AMA Guidebook to Management Development

Illustrative Behavior 3: Speaks positively and enthusiastically

about the organization’s products/services and future direction.

Illustrative Behavior 4: Inspires others to a greater effort by

setting an example in his or her own behavior of courage, dedi-
cation, or self-sacrifice.

Employees look to managers to model the behaviors that are ac-

ceptable in the organization. When a manager displays enthusiasm for
the products and services, dedication to the organization’s mission, and
when the manager speaks well of the future plans proposed by upper
management, employees are motivated to adopt similar thoughts and
feelings and to work hard for the organization. What a manager does
speaks louder than mere words.

Illustrative Behavior 5: Identifies and appeals to individual

needs and motives.

Illustrative Behavior 6: Establishes challenging, yet realistic,

performance goals that tap into people’s interests and motives.

Employees feel good when a manager takes the time to identify

what appeals to them and taps into their needs and interests when as-
signing tasks. Employees like to be challenged to learn what will benefit
them and to tackle tasks that help them grow. They appreciate realistic
performance goals that help them meet their personal goals. Managers
are challenged to look at each individual and identify what best moti-
vates him or her to work effectively.

Illustrative Behavior 7: Rewards and recognizes others for a

job well done.

All managers need to remember how motivating praise and cele-

bration are. Everyone likes to be praised for a job well done; teams like
to celebrate when their job is finished. Managers need to acknowledge
both people and teams when they have done a good job. The size of
the praise or the celebration is not the issue—people just want to hear
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 111

Chapter 4 ◆ AMA Model: Knowing and Managing Others 111

that they did well. That goes a long way in motivating them to work as
hard the next time they receive an assignment.

Illustrative Behavior 8: Uses others as a sounding board for

generating ideas and plans; acknowledges their expertise or per-
spective when asking for their opinions.

Employees are flattered when a manager acknowledges their talents

by asking their opinions. A wise manager knows this and takes every
opportunity to include direct reports at the idea stage of problem solv-
ing and decision making. Employees will work harder on a project
when they feel they were brought into the process early on.

Illustrative Behavior 9: Coaches others on ways to motivate.

Mid-level and functional managers are responsible for coaching

their direct reports on motivating their employees. As with all coaching,
this requires upper-level managers to observe what is happening in the
division or unit and to counsel their direct reports when they see oppor-
tunities for them to motivate their employees.

Coaching
This critical management competency is defined by AMA as providing
others with the opportunity to develop new skills. It includes clarifying
expectations, offering instruction and advice on the skills, and provid-
ing support and feedback to enhance performance. This competency is
required at all managerial levels and is extremely important for a first-
level manager to learn early and practice continuously.

Illustrative Behavior 1: Explains why he or she thinks a per-

son’s performance is good.

It isn’t enough for employees to know that they are performing

well; they need to know how that is determined, what they are specifi-
cally doing that makes the performance good, and the criteria by which

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 112

112 AMA Guidebook to Management Development

their performance is being judged. A manager needs to be able to put

that into words and concepts readily understood and easily conveyed to
employees. Thus coaching is used to reinforce good performance, not
just to improve poor performance.

Illustrative Behavior 2: Offers to provide advice or assistance

when a person needs help with a difficult task or problem.

Illustrative Behavior 3: Provides extra instruction or coaching

to others to help improve job skills or learn new ones.

When employees confront a new or difficult task, they often need

help getting started. Managers who are effective coaches provide that
assistance, not by taking over, but by stepping the employee through
the thinking and planning process. Employees need a manager who
will be patient and answer their questions, giving any additional instruc-
tion that might be needed when they face a difficult task or problem.

Illustrative Behavior 4: Encourages people to create a per-

sonal development plan.

Managers are responsible for developing their people. They know

that development cannot occur unless a person buys into the idea and
helps formulate the plan. Employees do not always see what they need
to improve, and a wise manager can help them realize the opportuni-
ties. Effective managers work with their direct reports to help them
identify skills to develop and make suggestions for ways to design plans
for acquiring them.

Illustrative Behavior 5: Provides feedback both on the spot

and through periodic meetings to monitor progress against
goals.

Illustrative Behavior 6: Helps people understand the impact of

their behavior on their peers, the work unit, the customer, and
others involved.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 113

Chapter 4 ◆ AMA Model: Knowing and Managing Others 113

Employees do not always understand how they are perceived by

others, nor can they be impartial judges of their own behavior. Man-
agers can help with timely and constructive feedback. Such feedback
helps employees realize the impact of their actions and words and can
help them in their development efforts. Managers can also use feed-
back sessions to help steer employees to more effectively reach their
goals.

Illustrative Behavior 7: Makes him- or herself available as a

resource to direct reports (e.g., provides information, helps to
remove barriers to their effectiveness, acts as a sounding board
to generate ideas).

Managers need to be there for their direct reports. Employees may

not have all the information needed, or they may encounter barriers
they are helpless to remove. Sometimes they merely need someone to
act as a sounding board to generate or react to their ideas. Managers
need to be there to provide what is needed in a timely manner.

Illustrative Behavior 8: Is patient and helpful when giving

complicated explanations or instructions.

Employees taking directions or being confronted with new tasks are

often hesitant or uncertain. They frequently need directions repeated or
rephrased; they may need additional encouragement and bolstering as
they confront new challenges and opportunities. Managers need to be
patient in explaining things and in supporting employees as they take
on new responsibilities.

Illustrative Behavior 9: Offers helpful advice on how people

can advance their careers.

Managers are in a unique position to assess people’s talents and

developmental needs. They must also be thinking of building the lead-
ership pipeline for the organization. Managers are obligated to share
their assessments and offer advice on how people can further develop
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 114

114 AMA Guidebook to Management Development

and advance their careers. They can be very instrumental in finding

opportunities for people to advance, even if it means transferring to an-
other department, division, or leaving the organization. Helping em-
ployees develop their careers motivates those employees and makes
them very loyal to their managers.

Developing Top Talent

AMA defines this competency as being able to consistently attract, se-
lect, develop, and retain high performers. With this competency a man-
ager raises the performance bar for his or her work unit or team so that
it consists of top performers and provides people with the opportunity
to develop new skills, carry out challenging assignments, and accept
new responsibilities. This competency requires a manager to hold peo-
ple accountable for their performance.

Illustrative Behavior 1: Does not tolerate mediocre or poor

performance; swiftly addresses performance problems.

Setting high standards does little good unless there are conse-
quences for not meeting those standards. Effective managers set those
high standards and are then quick to identify and deal with nonadher-
ence. That sends consistent signals to their staff that the standards are
real and that mediocre or shoddy work will not be tolerated. Solid per-
formers lose motivation when managers allow some employees to coast
along with poor job performance.

Illustrative Behavior 2: Ensures continuous and open lines of

communication and feedback.

Illustrative Behavior 3: Gives coaching and support to im-

prove team and individual results.

Ongoing, open communication is a key to maintaining top per-

formance. Being open to the comments, suggestions, problems, and
ideas of staff members helps a manager support top performers and

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 115

Chapter 4 ◆ AMA Model: Knowing and Managing Others 115

know when they need help, resources, or support in performing their

work. An effective manager is constantly in touch, coaching the team
and individuals and providing what they need when they need it.

Illustrative Behavior 4: Makes maximum use of the different

talents of team members.

Managers are responsible for identifying and utilizing the special

strengths of each team member. This helps the team function efficiently
and allows each individual to be appreciated for his or her unique tal-
ents. This means a manager recognizes talents that are evident and also
recognizes the potential an individual has for developing new talents.

Illustrative Behavior 5: Raises the bar for performance within

his or her work unit by setting challenging objectives and mea-
suring performance against them.

The effective manager is never content with just “what is”; he or she
is constantly working to improve performance and reaching for “what
could be.” This requires stretching the team to reach objectives that
might seem beyond reach, but are truly possible with the talent avail-
able. Once set, it requires assessing the team’s performance against
those higher performance measures.

Illustrative Behavior 6: Provides people with the opportunity

to develop new skills and accept new responsibilities.

Even though a manager has top-performing talent on staff, he or

she must continually develop that talent. Top performers need constant
challenges to be happy; they can easily become bored with the same
old activities. A manager must constantly search for, and come up with,
challenging assignments that will appeal to those talented people and
then help them succeed in those new ventures.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch04.qxp_SR 3/18/08 2:58 PM Page 116

116 AMA Guidebook to Management Development

Summary
Effective organizations are staffed by people who know how to work to-
gether. A critical part of that is learning about other people in the or-
ganization, treating them with respect, and adapting to their styles and
needs to get the job done. The competencies identified in AMA’s cate-
gory of “knowing and managing others” help everyone in the organiza-
tion work together more efficiently and effectively.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 117

C H A P T E R

5
The AMA Management
Development Competency
Model

Knowing and Managing the Business

he third set of competencies in the AMA model revolves around

Tknowing and managing the business. While these competencies may
vary depending on the business you are in and certainly are defined dif-
ferently at various levels on the management ladder, including the indi-
vidual professional, there are a number of universal categories that
apply to all businesses and all levels of employees, for while individual
professionals may have very limited roles in managing the business,
they must have general knowledge of the business of the company and
specific business knowledge and skills particular to their individual jobs.
The AMA competency model includes nineteen competencies in
this category (see Table 5.1). The complete AMA competency model,
with illustrative behaviors for each competency, can be found in the
Appendix.
In this chapter, we will define each of these competencies and ex-
plain each further with a number of illustrative behaviors.

Problem Solving
AMA defines this competency as identifying work-related problems,
analyzing problems in a systematic but timely manner, drawing correct
and realistic conclusions based on data and information, and accurately
assessing root causes before moving to solutions. Problem solving is a
© 2008, AMACOM, a division of the American Management Association 117
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 118

118 AMA Guidebook to Management Development

TABLE 5.1 Competencies for Knowing and Managing the Business

• Problem Solving
• Decision Making
• Managing and Leading Change
• Driving Innovation
• Customer Focus
• Resource Management
• Operational and Tactical Planning
• Results Orientation
• Quality Orientation
• Mastering Complexity
• Business and Financial Acumen
• Strategic Planning
• Strategic Thinking
• Global Perspective
• Organizational Savvy
• Organizational Design
• Human Resources Planning
• Monitoring the External Environment
• Core Functional/Technical Skills

competency needed at all levels of the organization–however, as one

rises up the management ladder, the problems tend to become more
complex.

Illustrative Behavior 1: Anticipates potential problems and

takes actions to prevent them.

Problems arise in every job. The key here is to anticipate potential

problems and try to prevent them. Employees at all levels must learn
from experience–their own experience and, through sharing knowl-
edge with others, from the experiences of others—to avoid reinventing
solutions to problems that have already been solved by others.

Illustrative Behavior 2: Quickly and systematically analyzes

the causes of work-related problems before taking corrective
action.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 119

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 119

Illustrative Behavior 3: Works to see all angles and perspec-

tives on a problem or issue before drawing conclusions or mov-
ing forward with plans or decisions.

Because no employee can be expected to be omniscient, to be able

to foresee every potential problem, employees must learn how to sys-
tematically analyze work-related problems to help them pinpoint the
correct solution. As in the story of the Indian chicken farmer related in
Chapter 3, continually jumping to the wrong conclusions can lead to
disaster. These types of problem-solving skills can be taught in a class
or through coaching from a manager or a more-experienced colleague.

Illustrative Behavior 4: Identifies the appropriate tools, re-

sources, and expertise across the organization to develop the
best solution to resolve a problem or issue.

Many employees will always try to solve the problems they en-
counter themselves, without asking for help from their colleagues or
their managers. This is a natural tendency–we want to prove that we
are able to do our jobs, and there is natural tendency to not want to be
the bearer of bad news to one’s manager.
It is up to managers, at all levels, to identify when a problem can
best be solved by seeking other tools, resources, or expertise outside the
local team. Because the manager’s purview is wider than that of any in-
dividual employee, the manager often has more experience and a bet-
ter perspective on when the employee is spending too much time on a
problem (and thus spending too little time on other parts of his job),
and can call in other resources, ranging from asking another employee
to help solve the problem to installing a new procedure or tool to pre-
vent such problems in the future, or calling on resources external to the
group, or perhaps outside the organization, to help analyze and solve
the problem.

Decision Making
The competency of decision making includes generating and evaluating
alternatives before making a decision or taking action, considering the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 120

120 AMA Guidebook to Management Development

risks associated with each option and selecting the option that has the
best balance of risk and reward, encouraging input from others when it
is appropriate, standing by decisions without reconsidering unless infor-
mation or circumstances make it necessary to do so, and evaluating the
effectiveness of decisions after they have been made.

Illustrative Behavior 1: Anticipates the consequences of

decisions.

Decision making is a forward-looking activity. It involves making a

choice among options, because if there were no options to consider,
there would be no decision to be made. There is always a minimum of
two choices: to do something or to do nothing. In considering what to
do, an employee must anticipate the results of a decision—what will
happen if I decide to do this? What alternatives do I have, and what are
the likely consequences of each choice? What would happen if I de-
cided to do nothing?

Illustrative Behavior 2: Involves people appropriately in deci-

sions that may impact them.

Being part of a team or an organization implies that you must work

with other people. It is important to include others appropriately in
considering decisions that may affect them. Of course, there are times,
especially for a manager, when it is not appropriate to include others in
the decision-making process. For example, in having to deal with a per-
formance issue, it is the manager’s job to manage the problem em-
ployee’s issue, and it is usually inappropriate to involve others in this
type of decision.

Illustrative Behavior 3: Makes decisions, sets priorities, and

chooses goals based on risks and rewards.

Most decisions involve risks. In considering alternatives, the em-

ployee must examine her priorities and the potential risks and rewards
of each before deciding on a course of action.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 121

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 121

Illustrative Behavior 4: Quickly responds with a back-up plan

if a decision goes amiss.

Because no employee is omniscient, it is likely that some decisions

will not yield the anticipated result. (In the game of baseball, even the
best batters in the history of the game only got hits two out of five times.)
A competent decision maker recognizes this fact and responds to errant
decisions by quickly devising a back-up plan. The back-up may be one
of the alternatives originally considered but not chosen, or the errant de-
cision may have yielded additional information that leads to a com-
pletely different decision. What is important here, for continued
development, is to learn from such errors so that they are not repeated.

Illustrative Behavior 5: Proactively identifies and prioritizes

the key issues involved to facilitate the decision-making process
for his or her team or group.

A key behavior for mid-level and functional managers is teaching

the people within their organization how to make optimal decisions.
The manager should help employees identify key issues and priorities
in order to improve their decision-making skills. When the manager
does this successfully, he can better focus on the more strategic issues at
his level, rather than micro-managing day-to-day decisions that are bet-
ter left to his employees.

Illustrative Behavior 6: Sticks to a decision even when faced

with resistance or opposition (e.g., stays confident in the deci-
sion, does not give in or falter).

Many times, more senior managers must make unpopular decisions

based on information and priorities that are unknown to her employ-
ees. It is important that, when making such decisions, the manager stay
confident in the decision, not faltering or giving in when faced with op-
position from employees who do not have complete information. This
may not make the manager the most popular person, but it is a neces-
sary part of the manager’s job.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 122

122 AMA Guidebook to Management Development

Managing and Leading Change

This competency involves putting opportunities and threats to the or-
ganization in context and clarifying how the organization needs to be
different and why; communicating a vivid, appealing picture of what the
organization needs to look like in the future; clearly communicating the
need for change and gaining people’s commitment; putting a realistic
plan in place to achieve the desired outcome and ensure it is resourced
adequately; preparing people to adjust to the change; keeping people in-
formed about the progress of change; and celebrating successes.

Illustrative Behavior 1: Defines clear targets and milestones

for change efforts and gains people’s commitment to them.

Illustrative Behavior 2: Proactively identifies and addresses

causes of resistance to change.

Illustrative Behavior 3: Clearly communicates the rationale

for and benefits of proposed changes.

Illustrative Behavior 4: Provides clear, timely, and accurate in-

formation about a change.

Illustrative Behavior 5: Answers questions related to the im-

pact of the proposed change directly and with candor.

Illustrative Behavior 6: Solicits people’s feedback about how a

change effort is progressing and how people are doing.

Managers at all levels need to help their employees deal with

change. This starts by defining clear targets for any change effort, ex-
plaining why change is necessary, laying out milestones for the effort,
and gaining employees’ commitment to the change. Change is difficult
for everyone—in general, people resist change. The old way may not be
as good as the new way, but we know it and are comfortable with it.
Managers need to identify employees who are resistant to the change
effort and work with those employees to help overcome their resistance
and assist them in implementing the change. This starts with a clear
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 123

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 123

explanation of the reasons why the change is necessary and taking the
time to answer employees’ questions about the change, then following
up, listening to feedback, and ensuring that milestones are met.

Illustrative Behavior 7: Adapts own behavior to support orga-

nizational change; acts as a role model for others.

“Do as I say, not as I do” doesn’t work. Employees who are strug-
gling to deal with a change effort will abandon the effort if they see that
their managers, at all levels, are ignoring the change themselves: “If
they don’t need to change, why should we?”

Illustrative Behavior 8: Determines a plan to introduce and

manage a change in line with the company’s strategy and avail-
able resources.

Illustrative Behavior 9: Evaluates systems and processes to en-

sure that they are aligned with and supportive of change efforts.

While first-level managers may have to implement any change pro-

gram, it is the responsibility of higher levels of management to do the
necessary planning before introducing the change: Is the proposed
change in line with the company’s strategy? What resources are avail-
able to help implement the change? How do the company’s business
systems and processes need to be altered to support the change effort?
Who needs to do what to make this change happen?

Illustrative Behavior 10: Gains the commitment of first-line

and mid-level managers early in the change process.

Illustrative Behavior 11: Ensures that the necessary resources

are available in the function or work unit to implement change;
revises plans if needed to reflect available resources.

This is the job of higher-level management—not just to mandate

change, but to explain to lower-level managers the need for the change,
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 124

124 AMA Guidebook to Management Development

the benefits that will come from the change, and the resources they will
have to implement the change. This is a primary leadership role. Less ef-
fective managers just tell their people about the changes they need to
make without explaining the reason why change is necessary and without
consideration of resources available and call this “empowerment.” But
this tactic is more aptly called abandonment, rather than empowerment.

Driving Innovation
Driving innovation requires managers to foster a climate that encour-
ages creativity and innovation. Managers who are effective at driving
innovation allow others to challenge and disagree. They take prudent
risks to accomplish goals and assume responsibility in the face of uncer-
tainty or challenge. They champion new, untested ideas and build sup-
port for those ideas among stakeholders. They celebrate successes and
worthy attempts at innovation and learn from failures. Effective innova-
tion managers build and maintain open channels of communication for
the sharing of ideas and knowledge throughout their organizations.
Driving innovation is a management competency that enables em-
ployees to develop their own creativity.

Illustrative Behavior 1: Recognizes and rewards others when

they suggest innovations and improvements.

The best way for a manager to encourage employees to be creative,

to constantly seek new and better ways of doing their work, is to recog-
nize and reward this type of behavior. Recognition can take many
forms—it does not necessarily need to be monetary (although everyone
appreciates a few extra dollars).

Illustrative Behavior 2: Allows others to question and posi-

tively challenge ideas and issues.

To drive innovation, a manager, at any level, must be open to new

ideas and must allow employees to question and challenge the status
quo. At the same time, the manager must ensure that the challenges are
positive in nature—too many good ideas are sunk by naysayers who
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 125

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 125

resist any type of change. We all know the many types of idea-killers
that are used to challenge any new idea: “That will never work here!”
“Who asked you?” “We tried that years ago and it didn’t work.” Being
open to new ideas is a learned behavior and takes practice for people
who are accustomed to resisting change. But it is a behavior that must
be mastered in order to achieve this competency.

Illustrative Behavior 3: Takes calculated, prudent risks to

achieve important objectives.

Illustrative Behavior 4: Takes prompt action to implement a

promising idea.

Illustrative Behavior 5: Fosters an environment where people

feel “safe” taking risks (i.e., acknowledges that mistakes and fail-
ures occur and focuses on learning from them rather than plac-
ing blame).

A competent manager realizes that innovation can be risky—not

every new idea will work or yield the anticipated benefits—but takes
prudent risks to achieve important objectives.
To foster a climate of innovation, managers must act quickly to im-
plement a promising idea. In many companies, management has imple-
mented a suggestion system to get new ideas from employees. But if the
ideas placed in a suggestion box never see the light of day, employees
will soon become frustrated and stop making suggestions. Employees
must feel safe in challenging the status quo—if an employee were to try
something new, have it fail, and then be punished for it, it will not take
much time before employee creativity is stifled because employees
don’t want to put themselves in jeopardy.

Illustrative Behavior 6: Provides forums for team members to

share ideas and knowledge and brainstorm new approaches.

Illustrative Behavior 7: Creates and reinforces a culture of

being proactive and taking initiative to improve existing
processes and procedures.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 126

126 AMA Guidebook to Management Development

A manager who is competent at driving innovation doesn’t just wait

for employees to suggest new ideas, but stimulates those ideas by creat-
ing a culture of creativity and innovation. This can be done in many
ways, from the age-old suggestion box (which only works if the sugges-
tions are read and responded to) to creating innovation forums for
brainstorming new approaches to taking employees on field trips to
stimulate creative thinking. While a first-level manager can initiate
many of these ideas and methods, it is up to more senior management
to create a culture of innovation throughout the organization.

Illustrative Behavior 8: Sponsors innovative approaches to

new business/markets that improve current results/performance.

Major innovation efforts such as these must be sponsored at the

level of functional managers and above, because the risks are greater
and the resources needed to implement these new approaches are gen-
erally not within the purview of first-level or mid-level managers.

Customer Focus
Employees who have customer focus demonstrate a concern for the
needs and expectations of customers and make them a high priority.
They maintain contact with their customers, both internal and external
to the organization, and use their understanding of customer needs as
the basis for decision making and organizational action.

Illustrative Behavior 1: Responds to a customer’s inquiry or

problem in a timely and effective manner.

No matter what jobs employees hold within an organization, their

ultimate goal is to satisfy the customer, for without customers, the or-
ganization would not exist. So, regardless of whether a customer in-
quiry is directly related to the job of the employee, he should take
responsibility to help that customer–to try to solve the problem or to
find someone else in the organization who can do so.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 127

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 127

Illustrative Behavior 2: Conveys realistic expectations to inter-

nal and external customers.

Illustrative Behavior 3: Effectively manages customer expecta-

tions (e.g., reshapes incorrect/inappropriate assumptions, estab-
lishes realistic timeframes, pushes back as necessary).

Nothing irks a customer, internal or external to the organization,

more than being given promises that a problem will be solved and then
having those expectations violated. Employees at all levels must learn to
set expectations realistically and then to live up to those expectations.
And, if the employee has set an expectation and finds that she cannot
meet it, it is incumbent on her to notify the customer as soon as possible,
rather than to wait until the last minute to reset the expectation.
At the same time, the employee must make certain that customer
expectations are realistic and sometimes must push back on the cus-
tomer when expectations are unreasonable. For example, a service
manager at a car dealership told me once of a call that he received from
a customer whose three-year-old car had broken down more than 1,000
miles away and demanded that the dealership provide a replacement
immediately.

Illustrative Behavior 4: Follows up on customer requests to en-

sure that the final product or service met expectations.

Have you ever gone to your doctor when you weren’t feeling well
and had the doctor prescribe a medication, and then receive a call from
the doctor later that evening to see how you are feeling? Or have you
ever had a service call from the telephone company or a plumber and
receive a call the next day to make certain that your problem was in-
deed fixed? If you have, you are dealing with someone who prides him-
self on his customer service.

Illustrative Behavior 5: Takes customer issues to the appropri-

ate people within the organization to obtain the most accurate
information to meet customer needs.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 128

128 AMA Guidebook to Management Development

Once, in trying to refinance my mortgage, I came upon an unusual

legal problem that only the bank that held my current mortgage could
solve. The bank was one of the largest mortgage lenders in the country.
When I called the bank’s toll-free customer service number, the person
on the other end had no idea how to solve the problem and offered no
assistance in finding the right person within the bank to help me. It
took a total of more than fifty calls from me and my attorney over a six-
month period, as well as letters of formal complaint to several state and
federal regulatory agencies, before I finally was connected with the
right person who could solve the problem. Needless to say, none of the
more than two dozen people I dealt with at this bank was competent at
customer service.

Illustrative Behavior 6: Gives high priority to addressing cus-

tomer complaints.

Organizations and employees who are competent at customer service

know that ignoring a customer’s complaint can lead to lost business not
just from that customer but also from many other potential customers
whom the customer will tell. They also know that successfully resolving a
customer complaint in a timely manner can lead to a more loyal cus-
tomer who may refer other business to the organization in the future.

Illustrative Behavior 7: Uses information about customers’

needs as the basis of problem-solving, decision-making, and or-
ganizational action.

While it is the responsibility of the individual professional to report

what she hears from customers about their needs, it is the manager’s re-
sponsibility to gather such data and use it to steer her group’s and the
company’s actions. Too often, gathering customer data is relegated to
the marketing department’s surveys—in actuality, everyone in the or-
ganization who interacts with customers should be gathering and re-
porting such data.

Illustrative Behavior 8: Reminds people about the importance

of the customer to the organization’s success.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 129

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 129

This is an important responsibility of managers at all levels—to keep

employees at all levels aware of the importance of customer service. It
is also important for managers to “walk the talk” here. For example, if a
manager attends a trade show or conference and gathers information
from current or potential customers, he should take the time to discuss
the customers’ needs with his staff upon return to the office. By showing
a personal interest in excellent customer service, the manager sets the
expectations for everyone else.

Illustrative Behavior 9: Anticipates how plans and actions of

the business will affect the customer in the short term and the
long term.

Managers must always keep in mind how any decision, any plan,
will affect the customer. In the early 1980s, Digital Equipment Corpora-
tion changed its business structure, realigning business units from an in-
dustry focus to a product-line focus. The changes were widespread. In
making all of the plans for these changes, the company forgot one
major customer-related item: Each of the former business units had its
own ordering system. When the structural changes were made, there
was no way to enter customer orders. It took several weeks, and many
lost orders, to solve the problem.

Illustrative Behavior 10: Proactively seeks feedback from cus-

tomers and uses this information to make improvements in sys-
tems, processes, etc.

Many organizations hide their heads in the sand, assuming that all
customer-related operations are working fine and need no improve-
ment. At one major company, the newly hired head of marketing hired
a well-known marketing research firm to conduct a customer survey to
see how customers rated the company on a number of dimensions.
When the study was completed, he invited all of the company’s vice
presidents to a presentation of the results.
The consultant started off the presentation with the finding that
more than 30 percent of the customers surveyed reported that salespeo-
ple didn’t return their calls and that they sometimes had to call three or

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 130

130 AMA Guidebook to Management Development

four times before they could contact a salesperson. The vice president
of sales replied: “That’s not true. What’s your next finding?” The con-
sultant then reported that many customers complained that the service
people didn’t have enough training to competently fix problems. The
vice president of customer service responded: “That’s not true.” And so
it went—every finding was denied by the responsible party.
If these senior managers had a customer service orientation, they
would have asked for specific names of complaining customers and
would have proactively had their staffs contact each and every cus-
tomer to resolve any outstanding issues. They would also have worked
to ensure that their response systems were improved so that customers
would not face these problems in the future.

Illustrative Behavior 11: Coaches others to forge relationships

with customers and add value.

This relates to the competency of coaching that was discussed in

Chapter 4. Mid-level and functional managers who want their employ-
ees to focus on customer service must coach them on how to build rela-
tionships with customers and how to use those relationships to add
value to the products and services that the organization provides to
those customers.

Illustrative Behavior 12: Understands and communicates how

different departments and functional groups interact to support
customer needs.

As an employee climbs the management ladder, her view and un-

derstanding of the company’s business must expand beyond the func-
tional area in which she started her career. As she develops her own
understanding of the interconnectedness of various departments and
functional groups within the company, she must help the managers
who report to her similarly develop their own understanding, with the
goal of breaking down walls so that every group focuses on how the or-
ganization, rather than just their function, supports customer needs.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 131

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 131

Illustrative Behavior 13: Actively seeks out the customer to

discuss business challenges in an effort to provide products and
services that meet the customer’s needs even before the cus-
tomer recognizes the need as critical.

The higher an employee rises on the management ladder, the more

removed he generally is from day-to-day contact with customers. In an
organization that is focused on customer service, senior managers seek
customer contact in order to gain and maintain the customer’s perspec-
tive on the company’s products, operations, and future plans. Whether
through attending trade shows, industry conferences, or making specifi-
cally planned customer visits, competent senior managers continuously
learn from their customers and use what they learn to inform planning
and decision-making processes.

Resource Management
A competent manager clarifies the financial implications of decisions
and uses resources effectively, in line with organizational policies and
goals. He deploys resources in a way that is consistent with the organi-
zation’s strategy and that benefits the organization, rather than advanc-
ing self-interest, and adheres to budgets. He ensures that employees’
time is used effectively.

Illustrative Behavior 1: Plans how to eliminate unnecessary

activities and procedures in order to improve efficiency and
make better use of resources.

A manager who competently manages resources is always on the

lookout for ways to make the work of her group more efficient by elim-
inating or streamlining activities and procedures, thus making optimal
use of the resources within her group. Because something “has always
been done this way” does not necessarily mean that the activity is nec-
essary or is being done to optimize the resources of the group.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 132

132 AMA Guidebook to Management Development

Illustrative Behavior 2: Determines priorities for different activ-

ities and plans an appropriate allocation of available resources.

With the constantly changing demands of any business, in addition

to emergencies that inevitably arise, it is the responsibility of the man-
ager to set priorities so that members of her group are focused on what
is most important to the organization at any given time.

Illustrative Behavior 3: Deploys resources based on what is

best for the organization versus advancing his or her own inter-
ests or agenda.

As a manager climbs the management ladder, his view of the or-

ganization must broaden beyond his functional roots. When, inevitably,
each group reporting to the manager requests manpower, budgets, and
other resources that total more than what is available to the group as a
whole, the competent manager must consider the tradeoffs necessary to
optimize the work of the entire group, showing no favoritism to any
one function. At higher levels of management, the manager becomes
part of a cross-functional team and must weigh the overall needs of the
organization, sometimes having to concede that other groups/functions
needs are greater than his own.

Illustrative Behavior 4: Monitors plans to ensure that re-

sources are used optimally and budgets are adhered to.

While good intentions are famed as a paving material, a manager

must continuously monitor the allocation of resources to ensure that all
resources within her control are being used optimally and that all em-
ployees are staying within budget. Budgets and plans sometimes seem
to have their own wills and often tend to get out of control. The earlier
that deviations from plans and budgets are identified, the easier it will
be to correct them.

Illustrative Behavior 5: Analyzes the short- and long-term fi-

nancial impact of decisions.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 133

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 133

Illustrative Behavior 6: In developing plans, considers how

they will affect the business’s financial strength, and seeks to
maximize this impact without adversely affecting other criteria
of success.

While it is good to be decisive, competent managers take the time,

before making decisions, to analyze both the short-term and long-term
financial impacts of those decisions. What may seem like an optimal so-
lution to a problem that the manager faces today may well have a
longer-term financial impact that dictates a different decision. In many
organizations that have had a long record of high growth, there is so
much money being generated that the solution to any problem is to
throw people, money, and other resources at it until it is solved. So long
as the organization continues in a rapid-growth mode, this may work.
But if the growth of revenue and profits suddenly wanes, the organiza-
tion may find itself with too many people and very inefficient use of
resources.

Operational and Tactical Planning

The competent manager determines short-term objectives and action
steps for achieving them, including efficient use of personnel, equip-
ment, facilities, and other resources in order to accomplish a project or
initiative. He determines how to schedule and coordinate activities
among individuals, teams, and work units.

Illustrative Behavior 1: Creates realistic plans that clearly de-

fine goals, milestones, and results.

Illustrative Behavior 2: Plans in detail how to accomplish a

large or complex project (e.g., identifies necessary sequence of
action steps, then determines when each should be done and
who should do it).

All employees must plan their work, defining goals, milestones, and
the results to be achieved. For large or complex projects, these plans
should include details on the sequence of action steps and, where others

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 134

134 AMA Guidebook to Management Development

are involved in the project, who should do what to accomplish the end
goals.
Project management is its own discipline, as defined by the Project
Management Book of Knowledge, issued by the Project Management
Institute. Some employees may find it beneficial or necessary to study
for and achieve certification as a Project Management Professional
(PMP).1 For the purposes of the AMA competency model, project man-
agement skills and certification are encompassed under the competency
of “core functional and technical skills.”

Illustrative Behavior 3: Understands the roles of others within

the company and uses this knowledge to improve efficiency (e.g.,
knows whom to contact in other areas to obtain information).

No employee works totally in isolation. Employees need to develop

an understanding of the roles of others, within or external to their own
group, as they relate to their work and know whom they can contact in
other areas to obtain information or assistance. For new employees,
their colleagues or their managers should provide initial guidance, but
all employees need to take personal responsibility for developing their
own networks of contacts.

Illustrative Behavior 4: Develops controls, checks, and bal-

ances to monitor progress against plans and ensure the accuracy
of the final product.

Illustrative Behavior 5: Anticipates possible delays or risks to

plans and determines alternative courses of action to ensure
timely delivery and results.

Two important parts of operational and tactical planning are moni-

toring and contingency planning. This is how the employee can ensure,
as she follows her original plan, that the project or plan is on track. But
given that even the best-laid plans often run into snags along the way,
she must consider how to handle problems as they arise to ensure the
timely delivery of the final results.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 135

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 135

As she climbs the management ladder, monitoring of day-to-day

operations against plans becomes more complicated. A first-level man-
ager may have as many as a dozen employees each working on their
own projects. A mid-level manager may have a number of first-level
managers whose groups each have multiple projects. At higher levels of
management, monitoring of work requires some type of reporting sys-
tem, because managers at those levels cannot possibly take a personal
interest in each and every project being undertaken by employees two
or more levels down in the organization. This is a difficult transition for
many newly appointed mid-level managers—as first-level managers,
they more closely monitored the work of their individual employees
and used their technical expertise to ensure that those employees were
doing their work correctly. Mid-level and higher-level managers must
learn to remove themselves from the technical work of the individual
professional and learn to manage through others.

Illustrative Behavior 6: Involves his or her team in planning

and setting priorities.

Competent managers, at all levels, involve their teams in planning

their work and setting priorities. Not only does this give the manager’s di-
rect reports ownership of the plans and priorities (the plans become “ours”
rather than “his”), but those closest to the actual work always have a better
perspective on the abilities of their employees and the nature of the work
than managers who are one or more levels removed from that work.

Illustrative Behavior 7: Determines priorities for both short-

term and long-term and plans an appropriate allocation of avail-
able resources.

Illustrative Behavior 8: Evaluates the current flow of work and

information across units and identifies opportunities to improve
coordination and make better use of resources to accomplish
projects/initiatives.

Because managers, at all levels, better understand the overall

business strategy and priorities of the organization than individual
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 136

136 AMA Guidebook to Management Development

employees, they must take responsibility for establishing short-term

plans and priorities that help the company fulfill its goals. Of course, as
the manager works to balance resource allocation with company needs,
he needs to explain the reason for changes in assignments and priorities
to those who will be affected by such decisions.
In one of Dan Tobin’s first jobs, his manager taught him an impor-
tant lesson—sometimes the manager has to make decisions and reassign
priorities based on the overall needs of the business. The manager’s de-
cision to defer what he believed to be an important and interesting proj-
ect was not a personal rejection of Dan’s value to the organization, but
was based on the priorities of the larger organization. It is a difficult les-
son, and one that Dan Tobin has often taught to his own employees.

Results Orientation
Employees with this competency communicate business performance
measures and clarify priorities. They work on important issues first,
staying with a plan of action or point of view until the desired goal has
been obtained or is no longer reasonably attainable. They recognize
opportunities, act on them, and look for ways to quickly overcome bar-
riers. They persevere in the face of adversity or opposition. They trans-
late ideas into action.

Illustrative Behavior 1: Takes appropriate risks to accomplish

goals.

A results-oriented employee determines how to accomplish his or

her goals, including the taking of appropriate risks if taking such risks is
the optimal way to achieve those goals.

Illustrative Behavior 2: Overcomes setbacks and adjusts the

plan of action to realize goals.

We have all seen some people who are paralyzed when they hit a
snag, for whom any setback stops all progress. Results-oriented employ-
ees quickly adjust their plans when they hit a setback and find other
paths to success.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 137

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 137

Illustrative Behavior 3: Focuses on high-priority actions and

does not become distracted by lower-priority activities.

Work in many, if not most, organizations is so hectic these days that

there are constant, and often competing, demands on the attention of
every employee. The results-oriented employee is able to focus on
high-priority actions, as defined by her own goals and the instructions
from her management, and not be distracted by the constant activity
surrounding her.

Illustrative Behavior 4: Challenges him- or herself and others

to raise the bar on performance.

Managers at all levels have the responsibility to challenge them-

selves and their employees to continuously raise the bar on perform-
ance. This is not the same as some managers who are constantly
“cracking the whip,” forcing their employees to work longer hours so
that the manager can brag about the performance of his group. Rather,
the results-oriented manager constantly works with his group to find
better ways for everyone to accomplish goals using tools of process
analysis and project management to help all members achieve more for
themselves, the group, and the organization.

Illustrative Behavior 5: Focuses people on critical activities

that yield a high impact.

Illustrative Behavior 6: Develops a sense of urgency in others

to complete tasks.

Too often, employees get so bogged down in day-to-day activities

and routines that they lose site of which activities are most critical to in-
dividual, group, and organizational success. The results-oriented man-
ager keeps her employees focused on those activities that are most
critical to success and creates a sense of urgency for those tasks.

Illustrative Behavior 7: Holds self and others accountable for

delivering high-quality results on time and within budget (e.g.,
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 138

138 AMA Guidebook to Management Development

models high work standards and demands the same from oth-
ers, criticizes mediocre or substandard performance).

A competent manager holds himself just as accountable for deliver-

ing high-quality results on time as he holds his employees. He models
the behaviors that he wants his employees to practice and doesn’t abide
slackers or employees who perform substandard work. This relates not
just to results orientation, but also to performance management—the
results-oriented manager actively manages the performance of his em-
ployees, which is not the most pleasant of duties but is an absolutely es-
sential part of the job for any competent manager.

Illustrative Behavior 8: Gives priority to achieving results for

the company or department, even if it conflicts with one’s own
personal goals or agenda.

It is a sign of a competent, results-oriented manager that she

sometimes sacrifices her personal goals for the benefit of the com-
pany. For example, if the company is facing hard times and has to re-
duce the number of employees, she may recognize that it is more
important, in terms of the company’s long-term survival and success,
for another group or function to keep employees than it is for her to
protect her own employees. This is never an easy decision for any
manager.

Illustrative Behavior 9: Develops a plan for execution with the

team to garner commitment and buy-in.

Mid-level and higher-level managers must manage through other

people, namely through the lower-level managers who report to him.
When he develops plans with his team, the plans become “our” plans,
rather than “the boss’s plans,” and the result is greater buy-in from the
team members who will have to execute those plans and sell them to
their own employees.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 139

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 139

Quality Orientation
Competent employees promote organizational effectiveness by antici-
pating and dealing with problems. They encourage others to suggest
improvements to work processes, and they persistently focus on quality,
as well as on results. They determine how to improve organizational
coordination, productivity, and effectiveness.

Illustrative Behavior 1: Ensures the quality of the work (e.g.,

monitors reports, reviews complaints from customers, notices
mistakes in his or her own work and in the work of others).

No organization can produce quality work unless every employee is

focused on the quality of his own work and that of others in the organi-
zation. It is not enough to just notice mistakes—employees with this
quality orientation take action—they work to correct their own errors
and help others to correct their errors.

Illustrative Behavior 2: Identifies sources of mistakes and de-

termines a course of action to prevent their recurrence.

Illustrative Behavior 3: Proactively raises critical issues that

impact organizational coordination, productivity, or effective-
ness, and takes the lead in resolving them.

Illustrative Behavior 4: Consistently monitors the quality of

products and services and the processes used to produce them.

While it is necessary for the employee to consistently monitor the

quality of products and services and correct any mistakes she notices,
whether in her own work or that of others, it is better to determine the
cause of any error and find ways of preventing a reoccurrence. In the
famed Toyota manufacturing system, known as a paragon of manufac-
turing excellence, any employee can stop the production line at any
time to fix a problem or suggest an improvement in the manufacturing
process. This is a true quality orientation.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 140

140 AMA Guidebook to Management Development

Illustrative Behavior 5: Evaluates how well a major project or

activity was done (e.g., monitors internal and external client sat-
isfaction, asks people what went well and what can be done bet-
ter next time).

It is the job of a competent manager to hold an “after-action re-

view” on every project to help employees learn lessons about what
went well (and therefore should be repeated on future projects) and
what didn’t go well (and the reason for any deficiencies). Too often,
such a review, if done at all, is called a “post-mortem” (literally, “after
death”) and is conducted only when a project ends in a disaster of some
type. The competent manager knows that there are lessons to be
learned from every project and helps employees continuously learn in
order to improve the quality of their work.

Illustrative Behavior 6: Communicates and reinforces the im-

portance of high work standards.

Illustrative Behavior 7: Encourages team members to take the

initiative to improve work processes.

The competent manager knows that he cannot be the sole monitor

and implementer of quality standards in the organization. He knows
that he must instill a culture that engenders an orientation to quality
among all employees. The manager’s job is to communicate and rein-
force the importance of high work standards and to encourage all em-
ployees to hold themselves accountable.

Mastering Complexity
The AMA defines this competency as quickly integrating complex in-
formation to identify strategies and solutions, learning new concepts
quickly, demonstrating keen insights into situations, assimilating large
amounts of information, and narrowing it down to and articulating the
core idea or issue.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 141

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 141

Illustrative Behavior 1: Understands new concepts quickly.

Illustrative Behavior 2: Assimilates large amounts of data/in-

formation to identify what is most important.

Illustrative Behavior 3: Integrates complicated ideas and ap-

proaches to develop the best possible solutions.

Illustrative Behavior 4: Breaks down complicated problems or

concepts into clear and manageable components.

The world continues to become increasingly complex and interre-

lated. Employees are inundated daily with more and more data. As ex-
plained in the learning model presented in Chapter 1, when data has
relevance to employees’ work, it becomes information. Mastering this
complexity, employees must have the ability to sort through all of
these data to find that which is most relevant to their work, thus
transforming it into information. The next step is to start using this in-
formation to make a positive difference in personal, team, and orga-
nizational business results—when employees use this information, it
becomes their personal knowledge. This is not an easy task, for it re-
quires employees to break down this mass of data into clear and man-
ageable components and then apply them to solve complicated
problems.

Illustrative Behavior 5: Focuses others on the core message or

desired result of a complex plan or idea.

Employees cannot begin this learning process unless they can rec-
ognize what is important to their work. In today’s complex business
processes, it is often difficult for employees to understand how their
personal work fits into the larger goals of the organization and to the or-
ganization’s accomplishment of those goals. It is job of the manager to
help employees focus on key business issues and to explain how their
work fits within the organization’s complex plans and the accomplish-
ment of the organization’s mission.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 142

142 AMA Guidebook to Management Development

Business and Financial Acumen

Employees with business and financial acumen possess the technical
and business knowledge needed to make the best decisions for the or-
ganization; they understand how strategies and tactics work in the mar-
ketplace. They assess the financial implications of decisions and actions
and balance data analysis with judgment and common sense.

Illustrative Behavior 1: Understands how his or her role con-

tributes to the overall success of the organization.

Every employee, at every level of the organization, needs to under-

stand how the job he does contributes to the overall success of the or-
ganization. Without this knowledge, the employee has no context for
his daily work tasks and may inadvertently make decisions that seem to
make sense from his limited point of view but ultimately impact the or-
ganization adversely. It is incumbent on managers at every level of the
organization to help employees understand this context and to help
them develop their business acumen.

Illustrative Behavior 2: Understands the key drivers of the

business, including how the business makes money.

Managers at all levels need to develop their understanding of the

key drivers of the business and the key indicators of business perform-
ance used by the organization so that they can make optimal decisions
that ultimately affect the success of the organization. This knowledge
helps managers organize the work of their employees so as to best con-
tribute to team and organizational performance.

Illustrative Behavior 3: Understands the financial impact of

decisions and actions.

It is not enough for a manager to know how her decisions and ac-
tions affect her group’s budget. She must also understand the interrelat-
edness of her group’s work with the work of other groups so that she
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 143

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 143

can optimize the overall effects of her decisions in terms of the financial
performance of the entire organization. For example, a purchasing
manager typically measures herself by obtaining raw materials at the
lowest cost. But if by ordering materials from the lowest-cost supplier,
she increases scrap rates because the low-cost supplier also has poor
quality controls, she may be costing the organization more than by or-
dering the materials from a higher-cost supplier who has better quality
control.

Illustrative Behavior 4: Analyzes data to identify trends and is-

sues that are important to the business and interprets the results
of the analyses to make recommendations for how the organiza-
tion should address the issues.

Illustrative Behavior 5: Understands how internal and exter-

nal business measurements are defined and influenced.

At one software company, the CFO did quarterly analyses of

how the company compared with its major competitors in terms of
several key performance measures. He then presented these analyses
at each quarterly town hall meeting of employees as part of the com-
pany’s quarterly financial results. Most employees found the compar-
ison somewhat interesting, but never really understood what they
meant.
The situation changed after providing education to the next tier of
managers in a program designed to develop their business acumen.
After completing this program, this group of managers not only under-
stood what the measures meant but how they were derived and, more
importantly, what they could do to improve their own and their groups’
performance on these measures.

Illustrative Behavior 6: Continuously learns and demonstrates

an in-depth understanding and knowledge of the company’s
core business and how the organization operates (e.g., has a
thorough understanding of overall business structure, processes,
policies, functions, and their interrelationships).
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 144

144 AMA Guidebook to Management Development

Starting at the mid-management level, all managers need to de-

velop their understanding of the organizational context of the groups
they manage. Their focus at this and higher levels must change from
their earlier functional responsibilities to a better understanding of the
overall business. They must understand the organization’s key business
processes and how their group fits into those processes. One of the best
methodologies for developing this understanding is to teach all man-
agers the skills of systems thinking.

Illustrative Behavior 7: Assesses existing talent base to deter-

mine whether the right mix of skills/competencies is in place to
ensure the current and future success of the work unit.

One of the hottest topics in today’s management literature is talent

management—how to ensure that the organization recruits, develops,
and retains the skills and competencies it needs today and will need for
the future success of the enterprise. This is especially important for
many organizations because of the current demographics of the work-
force, with millions of baby boomers due to retire in the next five to ten
years and fewer workers available in the next generation of the work-
force to take their places. This demographic fact makes it vital that
managers, starting at the mid-manager level, take seriously their re-
sponsibility for understanding and building the competencies of their
employees.

Illustrative Behavior 8: Has a working knowledge of profit

and loss and other key financial measurements used in the busi-
ness in terms of current performance, forecasting, and longer-
term business planning.

This is a key component of the competency of business and finan-

cial acumen. This is undoubtedly why courses with titles such as “Fi-
nance for Non-Financial Managers” continue to be one of the most
popular programs offered by AMA and many other academic and pro-
fessional education providers. Financial acumen becomes an increas-
ingly important competence as employees climb the management
ladder beyond the middle manager level.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 145

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 145

Illustrative Behavior 9: Communicates the key performance/

profit levers for the business and manages to these measures.

This behavior relates directly to Behavior 1 under this competency—

unless senior managers help employees at all levels understand key
performance and profit levers, they cannot expect those employees to
work to optimize the organization’s business results. To be effective at
these senior levels, managers must continuously educate employees on
this topic and communicate with them as to how they and the company
are doing against these measures.

Strategic Planning
A competent manager develops and drives a shared understanding of a
long-term vision that incorporates people’s input and describes what
the organization needs to look like and how it needs to operate in the
future. He determines long-term objectives and the tactics needed to
achieve them. He allocates resources according to stated priorities,
making sure that accountabilities and expectations for executing a strat-
egy are clear.

Illustrative Behavior 1: Translates company strategies into

meaningful plans for the business; connects them to people’s
daily work.

A company’s mission, vision, and goals are only as good as the

strategies put in place to accomplish them. Competent managers imple-
ment strategies to meet the company’s goals and help employees at all
levels understand those strategies and connect them to their daily work.

Illustrative Behavior 2: Demonstrates how priorities fit into

the company’s overall strategies (i.e., creates a line of sight).

If managers expect their employees to work toward the company’s

goals and implement their plans’ priorities, they must help employees
have a clear line of sight—to understand how the work they are being
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 146

146 AMA Guidebook to Management Development

asked to do will contribute to the achievement of those goals. If em-

ployees don’t understand the strategy, they may inadvertently work so
as to obviate the achievement of the company’s goals.

Illustrative Behavior 3: Pursues challenges that result in long-

term business benefit (e.g., proposes challenging but realistic
objectives).

Whether for the overall business, a functional group, a team, or an

individual employee, objectives need to be challenging, but realistic.
Most people like to stretch themselves beyond their day-to-day routine
and enjoy a challenge. At the same time, objectives need to have some
basis in reality—for example, it is probably unrealistic for a company
whose sales have stayed flat for the past five years to suddenly set an
objective of increasing sales by 50 percent for the next year if there is
nothing new to sell. For managers to continuously set unrealistic objec-
tives will only demoralize employees, especially if the employee’s com-
pensation is tied to those objectives. We have seen some companies that
hire employees with the promise of excellent annual bonuses based on
achievement of the employee’s and the company’s performance, only
for employees to later realize that the company’s management has al-
ways set such unrealistic goals that the company has rarely reached its
objectives and, therefore, bonuses are seldom paid.

Illustrative Behavior 4: Understands where the business is

going and the strategic objectives of the company and knows
how to support them.

Illustrative Behavior 5: Allocates resources based on strategies

and related objectives.

A competent manager understands how the work of his part of the

organization contributes to the achievement of the organization’s strate-
gic objectives and plans his group’s work to provide that support.
Further, she ensures that all employees in her group share this under-
standing so that they can make decisions on a daily basis that support
their achievement.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 2:59 PM Page 147

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 147

Illustrative Behavior 6: Stays abreast of changes in the market-

place and the company’s position relative to competitors.

Illustrative Behavior 7: Continuously learns and demonstrates

an understanding of the competitive environment, trends in the
economy, and technology that may impact the business; refers
to these trends in conversations; anticipates the effect of trends
on the business; and uses information about trends when evalu-
ating alternatives and making decisions.

Illustrative Behavior 8: Engages in scenario planning (e.g., as-

sesses where the organization is today against potential changes/
conditions in the external environment) to determine the best
path forward.

Strategic planning is an exercise in learning. The first task in the strate-

gic planning process is to learn about the marketplace, customer needs,
competitors, the economy, and other factors that will affect the organiza-
tion’s business. Next, the management team must develop a common un-
derstanding of both the organization’s current position and capabilities
and its readiness to meet the challenges of the marketplace. Finally, the
management team must develop strategies to meet those challenges.
Because the future is uncertain, there can be no guarantee of what
will emerge in the economy or the marketplace. Scenario planning is a
structured exercise where the management team imagines a variety of
futures, what each might mean to the company; based on what it has
learned and using its best judgment, the team makes decisions as to the
company’s future direction.
Today’s strategy is only as good as the information collected and
analyzed to develop that strategy, and as information changes, each
current strategy must be reassessed in light of that information and,
when necessary, modified or even abandoned in favor of a new strategy
based on that new information. Thus, strategic planning is not a one-
time or once-a-year activity, but a continuous process.

Illustrative Behavior 9: Communicates the company’s vision,

values, and strategy with conviction.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 148

148 AMA Guidebook to Management Development

Illustrative Behavior 10: Communicates business priorities to

all levels of the organization.

Once the organization’s strategy has been set, the competent man-
ager shares that strategy (as well as the company’s vision and values)
with all employees with conviction. If the manager expects employees
to work toward implementing the stated strategy, he must demonstrate
his personal commitment to that strategy and lead employees in setting
their work priorities so as to support that strategy.

Illustrative Behavior 11: Does not give up the long-term vi-

sion under present-day pressure; takes a long-term perspective
on problems and opportunities facing the organization.

This may be among the most difficult of behaviors for many man-
agers. The pressures of the financial community for ever-improving
quarterly financial results has led many company leaders to abandon
what they truly believe to be right strategies for the long-term success of
the organization in favor of meeting the short-term expectations of the
financial community and the organization’s stockholders. It is a very
difficult balancing act.

Strategic Thinking
Strategic thinking involves understanding the implications of social,
economic, political, and global trends. A manager with this compe-
tency understands the company’s position in the marketplace—both its
strengths and its weaknesses. She takes a long-term perspective on
problems and opportunities and applies insight and creativity to the de-
velopment of strategies that help the organization gain or sustain com-
petitive advantage. She proposes innovative strategies that leverage the
organization’s competitive position.

Illustrative Behavior 1: Prioritizes actions based on what is

best for the organization.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 149

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 149

A manager who thinks strategically keeps organizational goals in

mind when setting priorities for his group and bases those priorities on
what is best for the organization, even if that means that decisions he
makes are not necessarily optimal for his own group.

Illustrative Behavior 2: Demonstrates knowledge of customer

needs and uses this information to help determine the way
forward.

“Knowing the customer” is not just a responsibility of those groups

within the organization that have direct contact with customers. Every
manager and every employee within the organization must learn about
customers’ needs and focus their efforts on satisfying those needs.
A well-known industry consultant once presented to a group of sev-
eral hundred employees in a high-tech company. The audience was a
mix of engineering, product management, marketing, field service,
sales, and sales support personnel. He asked the audience: “How many
of you work in sales?” About 10 percent of the audience, those who
were in the sales organization, raised their hands. “Wrong!” he shouted.
“You are ALL in sales. You all have a responsibility for creating, selling,
and supporting products and services that meet the needs of your cus-
tomers. You all affect company sales, and if you want this company to
succeed, you must always, each and every one of you, think of yourself
as being in sales.”

Illustrative Behavior 3: Understands and drives toward in-

creasing his or her work unit’s financial performance (e.g., un-
derstands the financial impact of plans and decisions).

A manager who thinks strategically understands that her decisions

affect not just her own budgets and financial performance, but may also
impact the performance of other parts of the organization. This is not
always easy to do because different functional groups use different stan-
dards of performance. An engineering group may measure itself on the
elegance of its product design and including the latest state-of-the-art
features in each product. While they may be able to do that and keep

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 150

150 AMA Guidebook to Management Development

within their budget, they also need to consider how their design will af-
fect the financial performance of other groups. For example, they may
decide that the packaging for their latest product will look much more
elegant if the cabinet has rounded corners without considering that
those rounded corners may greatly increase the cost of manufacturing.
Or the manufacturing group may build a very compact package that
saves materials costs but adds hours to the time it will take a service
person to open and repair the product.

Illustrative Behavior 4: Demonstrates an understanding of key

business drivers and product attributes within his or her depart-
ment (e.g., aligns products offered with core organizational
capabilities).

Gary Hamel and C. K. Prahalad view core competence as an opti-

mal way for strategic thinkers to help the organization envision and
build the future. “It is the marriage of core competence and functional-
ity thinking that points a firm toward unexplored competitive space . . .
to move beyond what is to what could be.”2 Managers who are good
strategic thinkers always keep the organization’s key business drivers
(core competencies) in mind to ensure that their actions are aligned
with the company’s strategic business directions.

Illustrative Behavior 5: Anticipates strategic problems and op-

portunities and makes strategic decisions to address them.

As a manager rises to middle management and higher on the man-

agement ladder, her focus must change from operational decisions to
more strategic thinking. Competent mid-level (and higher-level) man-
agers anticipate strategic problems and opportunities and make plans
and decisions to solve those problems and take advantage of those
opportunities.

Illustrative Behavior 6: Continuously identifies and evaluates

viable future opportunities for the business; selects and exploits
the activities that will result in the greatest return.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 151

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 151

While individual professionals and first-level managers continu-

ously set priorities for getting their assigned tasks done, priority setting
at the higher levels of management must focus on future opportunities
and how to exploit those opportunities to yield the best returns for the
organization and its stakeholders. This is a major shift in thinking for in-
dividuals when they are first promoted to mid- and higher levels of
management.

Illustrative Behavior 7: Demonstrates creative thinking to

solve strategic issues (e.g., proposes innovative strategies that
capitalize on the unique qualities and core competencies of the
organization).

This is a whole different way of thinking about problem solving that

must be mastered by higher-level managers, based on the organiza-
tion’s core competencies. As stated by Hamel and Prahalad:3

Senior management teams compete to develop a prescient, well-

founded, and creative view of tomorrow’s opportunities that will spur
preemptive competence-building, provide focus to those efforts, en-
sure consistency in investment programs, and serve as a guide to deci-
sions about strategic alliances and acquisitions and a brake on
indiscriminate and tangential opportunities.

Global Perspective
This managerial competency involves understanding the international
issues facing the business. Competent managers appreciate how ethnic,
cultural, and political matters influence business and integrate local and
global information into decisions affecting multiple sites. They apply
knowledge of public regulatory frameworks in multiple countries and
make deliberate decisions about how to conduct business successfully
in different parts of the world.

Illustrative Behavior 1: Considers wide-ranging influences, sit-

uations, and implications both inside and outside the organiza-
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 152

152 AMA Guidebook to Management Development

tion when making plans or decisions, solving problems, or de-

veloping strategies.

As communications technologies and the increasingly complex

global business environment continue to evolve, managers at all levels
must consider the global range of their organization’s endeavors in
making any plans and decisions, developing their strategies, or solving
problems. What may work in the organization’s home country may be
impossible to implement in another country and may contradict an-
other culture’s norms or even violate their laws. Competent managers
get training and find ways of managing remote employees, allowing for
differences in work habits, attitudes toward management, time differ-
ences, and so on. They work to find optimal solutions that will work
globally.

Illustrative Behavior 2: Recognizes emerging patterns of busi-

ness on a global basis and formulates strategies in line with
these trends.

Trade barriers that once protected local businesses are all but gone,
and managers must widen their view of business trends and competi-
tion to the worldwide arena. Ignoring global trends and competition is
almost certain to yield unpleasant, if not devastating, surprises in the fu-
ture. This can be a major challenge for the new mid-level or more sen-
ior manager who has previously focused on managing a group of local
individual professionals.

Illustrative Behavior 3: Demonstrates an understanding of the

international issues facing a company.

Competent managers work to understand the organization’s inter-

national operations and issues, even if their personal management do-
mains are local. Only by understanding the organization’s worldwide
issues can managers optimize their decisions to benefit the overall or-
ganization. Developing this type of understanding is why many leading
companies build an international assignment into the career path of
high-potential employees.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 153

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 153

Illustrative Behavior 4: Communicates how international and

political issues may impact the business in the short and long
term.

Senior management in many organizations views international con-

cerns as the sole province of senior management. Competent managers
realize that decisions made at all levels of the organization may well im-
pact the organization’s international operations and, therefore, commu-
nicate with all employees about those concerns.

Illustrative Behavior 5: Implements global decisions while ad-

justing for local perspectives where appropriate.

When the United States dominated the world’s business markets,

many managers felt that their decisions and commands should be im-
plemented worldwide, without considering local laws, customs, mar-
kets, or other issues. While the United States remains the world’s
dominant market power, the balance of economic power has shifted,
and competent managers have become more aware of, and sensitive to,
how their decisions must be adjusted for local perspectives.

Illustrative Behavior 6: Creates/validates long-term directions

based on business dynamics, global trends, and the overall strat-
egy of the company.

Strategic planning and long-term directions for any organization

can no longer be the sole province of senior executives or a small team
of central-office strategic planners, but must involve the organization’s
worldwide management team as well as global partners, suppliers, and
customers. If managers do not develop this type of global orientation,
they will certainly suboptimize the organization’s results.

Organizational Savvy
Managers who have organizational savvy stay abreast of what is hap-
pening across the organization. They understand the effects of decisions
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 154

154 AMA Guidebook to Management Development

and actions on other parts of the organization and recognize the inter-
ests of others in different parts of the organization. They understand the
influence dynamics of the organization and use that information to es-
tablish alliances to achieve organizational objectives. They understand
the organization’s culture and norms of behavior.

Illustrative Behavior 1: Approaches problems with a clear un-

derstanding of organizational and political realities.

Illustrative Behavior 2: Understands how the culture of the or-

ganization impacts how the work gets done and takes this into
account in planning and decision making.

In every organization, of every size or shape, there are organiza-

tional and political realities that shape organizational life and some-
times make the job of the manager easier or more difficult. A savvy
manager keeps her antenna tuned to these realities so that she can find
practicable solutions to the problems and challenges she faces and
make realistic plans and decisions that don’t violate organizational
norms.

Illustrative Behavior 3: Understands the goals/objectives of

other departments/work units and uses this information to es-
tablish alliances and resolve issues.

Illustrative Behavior 4: Understands the interdependent na-

ture of operations and the impact of various departments/work
units on workflow within the organization.

Illustrative Behavior 5: Understands how his or her decisions

may impact others across the organization and involves them
appropriately.

While managers may vary in how well they pick up on organiza-

tional undercurrents, all managers with organizational savvy know that
they need to expand their views beyond their own groups to under-
stand the goals, objectives, and work methods of the other groups with
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 155

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 155

which they work and how these form interdependencies with their own
groups and others. The savvy manager, before making a local decision,
also examines how that decision may affect other groups’ work and in-
volves them before making such a decision. This becomes increasingly
important for mid-level and higher-level managers who, while they
started their careers in a particular function or specialty, must broaden
their view of the overall business in order to make optimal decisions
that may well require trade-offs between competing objectives and
competing subgroups.

Illustrative Behavior 6: Keeps up to date on what is happening

across the organization.

Savvy managers keep their eyes and ears open to learn what is hap-
pening in other parts of the organization, as well as their own. They
make it clear to the people within their own organization that they want
to hear of problems or challenges before they become crises. They
don’t “shoot the messenger” if they hear bad news.

Illustrative Behavior 7: Proactively shares information with

others across the organization based on an understanding of
their priorities, goals, and objectives.

Of course, people will be more willing to share relevant informa-

tion with you if you proactively share information with them, especially
when it may affect their priorities or the achievement of their goals and
objectives. Savvy managers know that communications flow in multiple
directions and ensure they are known as a willing receptor and sender
of information, rather than as an information roadblock.

Illustrative Behavior 8: Considers organizational culture and

norms of behavior in making decisions.

Every organization has its own culture and norms of behavior, and
the competent manager takes these into account in making decisions.
Employees, at any level, who violate these norms too frequently will
often find further progress in their careers stalled.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 156

156 AMA Guidebook to Management Development

Organizational Design
Competent managers ensure that the organization’s structure and systems
support its strategies. They take action to optimize resources and work
processes using such techniques as business process reengineering and con-
tinuous process improvement. They organize work to enhance efficiency
and to drive results by appropriately grouping responsibilities and estab-
lishing linkages within their own groups and throughout the organization.

Illustrative Behavior 1: Understands the importance of align-

ing organizational structure and strategy.

Illustrative Behavior 2: Reviews organizational structure, sys-

tems, and processes to ensure they support change initiatives.

Managers know that their strategies will be easier to implement if

the structure of their organization is aligned to support those strategies.
Should the organization be structured by industry or by product line?
Should there be a single global organization or a network of local coun-
try operations? Should services, such as information systems, human re-
sources, or purchasing, be centralized or decentralized?
Competent managers examine the alternatives available for organi-
zational design and choose the structure that will best support their
business strategies. They also realize that the optimal organizational de-
sign for a million-dollar company may not remain optimal as the com-
pany grows or as it expands into new markets or geographies. Thus,
with each major change in strategy, these managers re-examine their
organizational structure, systems, and processes to ensure that they
align with the new strategy, rather than continue to support an obsolete
strategy. Many change initiatives have failed because organizational
leadership has told people that it wants them to act in new ways, but
neglected to change systems, processes, measurements, and rewards
and allows them to continue supporting the old ways.

Illustrative Behavior 3: Identifies key skills within the work

unit and determines how to best organize the work (e.g., group-
ing responsibilities, establishing linkages) to enhance efficiency
and coordination.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 157

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 157

Illustrative Behavior 4: Collects feedback from employees at

all levels to understand what is working and what could be im-
proved related to existing systems and structure.

Illustrative Behavior 5: Identifies and implements ways to op-

timize resources and work processes.

Wise managers do not make changes in organization structure and

processes without input from all levels and without developing a thor-
ough understanding of current skill levels, job roles, and work
processes. While no one particularly likes change, employees will gen-
erally be much more responsive to change when they feel that their
voices have been heard—when employees participate in making plans,
the plans become “our plans” rather than “management’s plans.”

Illustrative Behavior 6: Creates clear descriptions of the work,

roles, and responsibilities to help facilitate coordination and co-
operation.

Little frustrates employees more than a manager who tells them:

“Things have to change around here” and then leaves them with no de-
tails or guidance. Competent managers provide clear descriptions of
the work, roles, and responsibilities of each group (if not to the individ-
ual employee level) when instituting changes. Before making the
changes, they focus not only on how to achieve the organization’s goals
and implement its strategies, but also on how to facilitate the coordina-
tion and cooperation that will be required across the organization to
achieve the goals of the change initiative. And once they have made
their plans, they explain to employees exactly what changes will take
place and the rationale for those changes, while supporting their em-
ployees as they work through the changes.

Human Resources Planning

A competent manager ensures the talent base is in place to meet orga-
nizational needs. He assesses current skills sets and identifies the right
mix of talent to fill gaps and ensure sustained results. He accurately
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 158

158 AMA Guidebook to Management Development

assesses “fit” based on the requisite skills and competencies, as well as

alignment with the organizational culture.

Illustrative Behavior 1: Develops clear job descriptions based

on the key skills and competencies (personal, interpersonal,
technical, and managerial) required for the role.

Illustrative Behavior 2: Clarifies the current skills and knowl-

edge within the work unit as well as its future needs.

Illustrative Behavior 3: Considers the long-term implications of

team performance and skills in order to ensure sustained results.

Human resources planning requires the manager to understand the

key skills and competencies that are needed within the organization to
meet its goals, both today’s goals and tomorrow’s. Based on the results
of such planning, the competent manager then writes job descriptions
that detail the skills and behaviors needed within the group. An impor-
tant point here is that even if the organization requires many people
with the same job description, it is rarely possible or wise to try to make
all employees clones of each other. Competent managers value diver-
sity, not just in terms of gender, race, nationality, etc., but also in terms
of styles of working and thinking. They value people who approach
problems from different points of view, find it desirable to have both
thinkers and doers on their teams, and so on. And while current plans
require just so much of skill A or competency B, it is often desirable to
have extra reserves of key skills and competencies so that people can
help each other out when work bottlenecks arise.

Illustrative Behavior 4: Makes plans to fill development or

skills gaps within the work unit.

Illustrative Behavior 5: Accurately assesses talent and makes

hiring decisions based on a clear picture of what is required for
success in the role, as well as cultural fit.

Few managers at any level can say that they already have all of
the skills and competencies within their organization to satisfy every
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 159

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 159

current and future requirement. The gaps that the manager identifies
may be for the group as a whole (for example, “we will be introducing a
new technology that everyone needs to learn”) or for one of more spe-
cific individuals (for example, “Bob and Mary are good candidates for
promotion to first-level manager, but they need to learn some team
leadership skills to prepare them for that role”). In many cases, this will
mean working with the individuals and the human resources or training
group to prepare a development plan for the group or for specific indi-
viduals. In other cases, it will mean preparing a job description for one
or more people to be hired from outside the organization.
Because people cannot be described by a list of specifications, as
can a machine part (if the machine part meets all of the technical specs,
you know it will fit and will work), the manager must also ensure that
any candidate for a position (new, promoted, or replacement) is a good
fit with the organizational culture. Every organization’s culture is differ-
ent, and thought must be given to what makes a good cultural fit. Au-
thor Dan Tobin worked for more than a decade for Digital Equipment
Corporation, which had a very unique organizational culture. He knew
people who worked for IBM, Digital’s main competitor and another
great player in the computer industry. But people who worked for the
two companies knew that each had a unique organizational culture and
that success in either company could not guarantee a good organiza-
tional fit if the person were to move to the other company.

Monitoring the External Environment

Competent managers collect information about opportunities and
threats in the external environment that may affect their work in the
short or long terms. They analyze trends and look for circumstances
that may enhance their own organization’s performance.

Illustrative Behavior 1: Understands industry and market

trends and the impact they may have on the organization in
both the short and longer term.

Gaining, maintaining, and improving competitive advantage cannot

be done without understanding both the market you are serving and
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 160

160 AMA Guidebook to Management Development

the other organizations against which you compete. While the tasks of
gathering market and competitive information may be assigned to a
specific market research function, it is incumbent on managers to study
market data if they want to make better strategic and operational
decisions.

Illustrative Behavior 2: Analyzes data and creates benchmarks

(based on research on the industry and on specific competitors)
to monitor the quality of products and services and improve ex-
isting processes.

While being profitable may be enough of a measure of success for

many managers, the most competent managers continually measure
themselves against their industry and their competitors to see how they
are doing. This may include such measures as sales per employee, re-
turn on equity, a product’s mean-time-to-failure, market share, or hun-
dreds of other possible measures. The management team must decide
which measures to monitor and analyze which of their products, ser-
vices, and processes measure up to the competition and which need
improvement.

Illustrative Behavior 3: Identifies trends and patterns in the

marketplace that may positively or negatively impact the
business.

Illustrative Behavior 4: Takes action to mitigate threats and

capitalize on opportunities in the external environment.

In monitoring the external environment, there are tons of data

available. As explained in the learning model in Chapter 1, only those
data that have relevance and purpose (as defined by the organization’s
managers) become information, and that information only has value to
the organization if it is applied to the organization’s work to make a
positive difference in business results. Thus, managers must use exter-
nal data to identify trends and patterns in the marketplace that pose
threats or create opportunities for the organization and must take ac-
tion to mitigate those threats and capitalize on those opportunities. If
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 161

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 161

managers ignore this responsibility, all of the market data that the or-
ganization collects will have no value to the organization.

Core Functional/Technical Skills

A competent employee maintains up-to-date knowledge and skills
within his field of expertise and remains abreast of developments in his
field and industry. He provides guidance or counsel on technical matters
related to his field. He knows how to use company-specific technology.

Illustrative Behavior 1: Quickly masters new technical knowl-

edge relevant to his or her position.

This is a vital competency for the individual professional and is the

basic competency for which most employees are hired. It is also very
important for the first-level manager, who must know the work of her
employees and be able to coach them on the technical aspects of their
jobs.
As managers climb the management ladder, their mastery of this
technical knowledge must yield to their new responsibilities as man-
agers of people and the business in general. Many technically proficient
employees have failed as managers because they could not make this
transition. This is also why many organizations have created separate
technical career paths for technology specialists, where technically bril-
liant employees who have no interest in (or talent for) management can
be recognized for their technical contributions to the organization with-
out have to abandon their technical proficiency by moving onto the
management ladder.

Illustrative Behavior 2: Has a comprehensive knowledge of all

existing computer systems and other technologies relevant to
his or her job responsibilities.

There are few jobs in any organization today that are not reliant on
computer or other technologies. Employees at all levels must master
the use of the systems and technologies that they use in their work. As
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 162

162 AMA Guidebook to Management Development

jobs change and as employees climb the management ladder, these

technologies may change—for example, a computer programmer must
have much more detailed knowledge of the systems he uses than does
the organization’s chief technology officer (CTO), while the CTO must
be able to master the operational dashboard he uses to monitor per-
formance of the company’s major technical systems.

Illustrative Behavior 3: Offers helpful advice and guidance

when others are learning technical matters related to his or her
role or function.

An employee who has key technical skills should always be willing

to help peers or managers with advice and guidance when they ask for
help in understanding technology. For the first-level manager, helping
employees learn is a key part of the job, and individual professionals
who regularly help others with advice and guidance are often consid-
ered prime candidates for first-level management positions.
Some companies are using what is called “reverse mentoring” to
help senior executives learn more about today’s technologies from
younger staff members. “The person generally credited with introduc-
ing formal reverse mentoring is General Electric’s former CEO Jack
Welch. In 1999, he ordered 500 of his top managers to find workers
who were well versed in the Internet and tap into their expertise. Welch
himself chose a mentor and blocked off time to learn about everything
from Internet bookmarks to competitors’ Web sites.”4

Illustrative Behavior 4: Is knowledgeable about best practices

relative to the technical aspects of his or her function/role and
benchmarks against other organizations.

With the rapid advance of technology, no employee or manager

can assume that he knows everything he will ever need to know about
his technical specialty. Competent managers keep up-to-date on ad-
vances in their fields through a variety of methods, including continu-
ing education, reading trade and industry periodicals, attending
tradeshows and conferences, and making benchmarking visits to other
organizations.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 163

Chapter 5 ◆ AMA Model: Knowing and Managing the Business 163

Illustrative Behavior 5: Acquires technical/functional knowl-

edge of new areas that he or she manages to sufficient depth to
be an effective manager of the overall function.

For mid-level and functional managers, it is not possible to be as

technically astute as the individual professionals or the first-level man-
agers within their groups, but they must still keep abreast of major de-
velopments in their technical or functional fields to be effective in their
roles.

Summary
Competencies related to knowing and managing the business are not
the exclusive province of senior managers. Starting with the individual
professional, all employees have a responsibility to understand their or-
ganization’s overall business goals and the major business systems with
which they work and that affect them. As employees climb the manage-
ment ladder, more of these competencies become relevant as more
senior positions require management of various aspects of the organiza-
tion’s business.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch05.qxp_SR 3/18/08 3:00 PM Page 164

This page intentionally left blank

6826ch06.qxp_SR 3/18/08 3:04 PM Page 165

C H A P T E R

6
Selecting for Competence

nce you have defined the management competency model for vari-
O ous positions in your organization, your challenge is to find the
right people with the right competencies for the right positions at the
right time.
Your first step is to devise strategic staffing plans for those areas crit-
ical to business success. Your strategic staffing plans should tie to the
overall business strategy and help you further refine which specific
competencies are most needed where. These areas might be ones that
are hard to fill or where competition is great; they may be for positions
where the organization needs to tap new or nontraditional sources of
talent; they may be plans to find management talent by blending exter-
nal hires with promotions from within.1 Strategic plans need to focus on
issues and look to the future of the organization. Not all positions need
to be addressed in a strategic plan.
Once the strategic plan is in place, you have a choice in how to go
about executing the plan and filling open positions in the organization:
You can “buy” competencies by hiring new people, or you can “make”
competencies by encouraging self-learning, providing training and de-
velopment for current staff, or promoting people who possess the com-
petencies you need or who show promise of being able to develop
those competencies.
In this chapter we address selecting for competence: hiring and pro-
moting people based on the competencies defined for a position. Subse-
quent chapters will address how to encourage self-learning and provide
training to help people further develop the competencies valued by the
organization.
© 2008, AMACOM, a division of the American Management Association 165
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 166

166 AMA Guidebook to Management Development

Hiring for Competence

Hiring procedures are anything but easy. Sifting through resumes and
participating in interviews, you search for the right candidate with the
competencies you need for a particular position. It can be confusing.
People can be hard to read. Couple that with the fact that candidates
today are well schooled in how to present themselves. They anticipate
traditional interview questions and rehearse what they think the pre-
ferred answers might be. They may look at work differently than the
person conducting the interview because they are of a different genera-
tion or cultural group.
Most of us can tell horror stories of when the interview process
went wrong, and, to be honest, not all future work circumstances can be
foreseen in an interview. And we all know the wrong hire can be a
great cost to the organization (see “The Wrong Hire”).
How do you find the right person? Certainly the old way of hiring,
where the interviewer developed rapport and made decisions on per-
sonal opinion or a “gut feeling,” is ineffective. Today’s more traditional
interviewing practices too often focus on situational scenarios: asking a
candidate “what would you do if . . . ” A better solution is competency-
based behavioral interviewing.
According to Victoria A. Hoevemeyer in her book, High Impact In-
terview Questions,2 competency-based behavioral interviewing (CBBI) is
“a structured process that combines competencies with the premise
that, with few exceptions, the best predictor of future performance/be-
havior is past performance/behavior and the more recent the perform-
ance/behavior, the more likely it is to be repeated.” This method comes
closer to predicting the on-the-job performance of candidates, so you
reduce your percentage of “bad hires.”
Hoevemeyer describes how the CBBI process focuses interview
questions exclusively on the competencies required for success in the
position. Interviewers are trained to use the specific questions, and rat-
ing scales provide more objectivity than a subjective gut feeling. Ques-
tions focus on actual current and past performance, not “might do”
behavior. Hoevemeyer outlines a six-step process for implementation:

1. Determine the structure for the competency model. This involves

the entire organization, all positions, functions, and levels, from in-
dividual contributor to senior C-level executives.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 167

Chapter 6 ◆ Selecting for Competence 167

T H E W R O N G H I R E

The candidate made a great impression on the interviewer: He was well

groomed, well spoken, and had a law degree. He explained that the law
wasn’t for him; he discovered his passion for public speaking while working
at his church. He wanted to hone his skills and help others do the same.
The presentation training company needed polished individuals to learn
their presentation methods quickly and train business executives in those
skills. It seemed like a perfect fit, and the candidate was hired.
During his initial training, the trainee appeared open to learning and
spent hours practicing the new methods. The only criticism was that he
was too “evangelical” in his presentation style. He needed to harness his
tendency to “perform” and to recognize that most business executives
sought a more conservative style. He needed to focus more on coaching
others to bring out their natural style that would resonate with the audi-
ences they addressed. For several months, he was coached and trained at
the headquarters office.
The second part of his training involved traveling with other staff mem-
bers to co-train client groups. Once he was on the road, calls to headquar-
ters revealed stories about his coming late to sessions or missing them
entirely. He always described extravagant travel delays, unforeseen circum-
stances with family, etc. After many incidents, he was given a warning and
counseling, but seemed unable to take responsibility for the changes he
needed to make. Then co-workers began to get strange phone calls at late
hours—he was double-checking program details, sometimes seeming a bit
disoriented, and sometimes offering excuses for travel delays. His unreliabil-
ity led to his dismissal. It later came to light that he had a substance abuse
problem and was seeking rehabilitation.
CBBI may have helped prevent this wrong hire. During the interview,
the manager could have asked questions about how the person handled
stressful situations, how he viewed his job responsibilities, if he had ever
failed to deliver what was expected of him, whether he was timely, and per-
haps even how he responded to taking directions from others. Answers to
those questions may have revealed some avoidance behaviors, inability to
handle stressful situations well, or tendencies to shirk job obligations or be
unreliable in following through on assignments. Since the nature of the job
(continued)

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 168

168 AMA Guidebook to Management Development

demanded those qualities, those answers might have alerted the hiring
manager to potential problems before offering the job.
Peg Pettingell

2. Determine and define the competencies for each level. This is

done independently of current or future employees and is based on
technical, functional, and special skills needed for success in the po-
sitions. We described the AMA management development compe-
tency model in Chapters 3, 4, and 5 as an example.
3. Determine the interview questions pertinent to the position and the
competencies you want to assess. Once developed, questions need
to be used consistently among all those people doing the interview-
ing.
4. Develop the rating scale(s) and criteria for differentiation in ratings.
Provide all interviewers with a rating scale, definitions of what the
scale means, and examples of how to use it.
5. Design the organization’s interview formats. For example, you may
require several telephone screening interviews and face-to-face
meetings.
6. Provide training to all interviewers. This training should include
role-play opportunities with feedback to ensure that participants
will get more comfortable with CBBI and that similar interviews
will yield similar ratings and results across the organization.

An example of typical CBBI questions illustrates the value of the

process. If you are seeking to hire a new manager who is action ori-
ented, you might ask each candidate to tell you about a time she will-
ingly took on additional work even though her current workload was
heavy and how she got the job done. Or you could ask her to describe
a time when others were not acting quickly enough on a critical task
and she took the lead to accomplish it. The answers to either of these
questions provide insight into the candidate’s actual behavior. You can
probe further if you need to. You then develop similar questions for the
other important competencies in the position you want to fill. By the
end of the interview you will have a good idea of whether the candidate
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 169

Chapter 6 ◆ Selecting for Competence 169

does or does not possess the specific competencies you desire. By keep-
ing a rating sheet based on the answers, you can more accurately com-
pare candidates after all have been interviewed.
This method of interviewing can help determine both innate com-
petencies and performance capabilities. Stories and examples of how a
candidate performed in the past give valuable insight into personal val-
ues and how he or she would handle a similar situation in your organi-
zation in the future. As you listen to the candidates’ descriptions, you
will learn about their character and their values, as well as their per-
formance abilities.
CBBI takes a substantial amount of time to develop and imple-
ment, but it ensures the gathering of systematic and objective perform-
ance data on the competencies you seek, resulting in a fair and accurate
assessment of the competencies you want in a particular position. It in-
creases the likelihood of hiring, or promoting, the candidate who is the
best fit for both the position and the organization.

Using Tests/Certifications
In some positions, tests or certifications provide data about a candi-
date’s abilities. This is particularly valuable in technical areas or areas
where you may have limited personal experience (see “The Cisco Cer-
tified Internetworking Expert (CCIE) Certification”). A caution: Be
aware that some commercial training programs train their students to
pass the certification test and that achieving the certification does not
automatically equate to the ability to do the job. You need to scrutinize
the pass rates. With higher pass rates, the certifying company looks
more successful; with higher failure rates, the company may look more
rigorous. Ask questions of others in your field, or in the industry, to de-
termine how the testing or certifying company is viewed in terms of re-
liability. If you use certification and testing, you need to be sure the
instruments are valid and reliable and accurately reflect performance
on the job.
Knowing these potential problems, you may also want to devise
some hands-on way of assessing desired skills and competencies in the
interview process, perhaps asking for a demonstration of a particular
process or procedure or providing a problem situation for candidates to
resolve. One example of this is how AMA hires its seminar faculty.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 170

170 AMA Guidebook to Management Development

T H E C I S C O C E R T I F I E D
I N T E R N E T W O R K I N G E X P E R T
( C C I E ) C E R T I F I C AT I O N

The Cisco Certified Internetworking Expert (CCIE) certification holds a

unique place among technical certifications. While most technical certifica-
tions require only that the candidate pass a written exam, the CCIE certifi-
cation requires not only a written examination, but also a hands-on lab
examination that takes place at a Cisco facility. Candidates for the CCIE
must demonstrate not only proficiency in designing Cisco networks, but
more important, the ability to troubleshoot network problems.
In speaking with people who have taken the CCIE exam, they say that
the focus is more on problem-solving techniques and speed—if you don’t
know the technology and how to solve relevant technical problems well
enough, you will never be able to complete the full array of exercises in the
allotted time. In fact, Cisco examiners generally say that they can tell, by
watching the candidate work for the first hour of the exam day, whether a
candidate will be able to pass the hands-on exam.
There are few parallels in the world of management education and
training—we do not require people to prove their capabilities before being
given a management position (a fact often pointed out by technical profes-
sionals who must prove their technical merit before being promoted on a
technical career ladder).

Many people complete AMA’s online application to join our faculty.

They cite experience and certificates or degrees in business or training,
as well as expertise in a particular subject area. Promising candidates
are interviewed by phone, and then must make a face-to-face presen-
tation to product portfolio and faculty management staff before they
are “cleared” to represent the organization. AMA staff assesses the
candidate’s subject matter expertise and actual facilitation skills in
presenting material and conducting discussions. Even if candidates
have previously conducted seminars, they may not meet the rigorous

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 171

Chapter 6 ◆ Selecting for Competence 171

AMA standards of competence. In fact, only 10 percent of applicants

meet the standards for AMA faculty positions. You could set up similar
situations to test certain competencies for the positions you are fill-
ing, relating it directly to the work applicants will perform for your
organization.

Promoting from Within

Most organizations find it desirable to promote their current employees
to fill management openings whenever possible. It is an especially smart
move now, as the competition for talent increases in a shrinking labor
force. Promoting from within can decrease hiring and training costs while
sending positive messages to employees. It demonstrates to employees
that they can achieve goals and advance without having to change com-
panies. It saves managers’ time as it eliminates external screening and in-
terviewing time, and it raises the company’s image by offering better
employment security than is usual in today’s work environment. Accord-
ing to a 2003 study conducted by the Mellon Financial Corporation, pro-
moting from within saves considerable time and expense as external
hires take up to twice as long to reach full productivity.3
How can you effectively blend bringing in new talent and promot-
ing employees from within? Some think the 80/20 rule is one to follow:
80 percent promoting from within and 20 percent hiring outside the or-
ganization. This provides good continuity and keeps promises to em-
ployees, while providing some freshness and new ideas.
Using the same rigorous screening process for internal and external
candidates yields excellent internal candidates and ensures a fair and
accurate assessment of abilities. An added benefit, internally, is your
ability to check any stories and examples a candidate provides with
other staff throughout the organization. This helps you objectify the
process so that internal and external candidates have an equal chance
to present their capabilities.
To ensure that the company favorite, or the employee with the
longest tenure, is not the automatic hire, have the job description and
competency list ready ahead of the job posting. If you discover that a
candidate’s skills are close, but not exactly what meets the require-
ments, consider training to fill the gap. That word will spread and other

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 172

172 AMA Guidebook to Management Development

employees will take notice and realize the company’s interest in helping
its employees progress.
There are two common traps that you must avoid when promoting
internal candidates. The first is the argument against an internal candi-
date because “he never did it before.” In this case, you may not seri-
ously consider internal candidates because they have never demonstra-
ted one or more competencies desired for the new position. In fact,
they may have the desired talent, but have never been called upon to
use it in their current role. Most people tend to judge internal candi-
dates more harshly than external applicants. The second trap is the “en-
titlement trap,” where we may promote an internal candidate without
setting clear expectations that are “owned” by the employee, i.e., what
she needs to work on to “earn” the position after it is given to her.

Conducting the Interview

A thorough interview takes a minimum of 45 minutes. Keep notetaking
materials on hand so you won’t have to rely on your memory alone to
track responses. Stick to your interview plan and ask the questions you
designed, so that all candidates have an equal opportunity to be rated
fairly. Study the resume, cover letter, and other assembled documents
ahead of time to save time during the first half of the interview. Be sure
you know the questions you cannot legally ask.
Resist your initial gut feeling and have faith in the process you put
in place. Most of us like to hire people like ourselves, but good teams
need a diversity of people and styles to function effectively. Keep in
mind the competencies you have attached to the job requirements and
focus your questions to measure those competencies. Ask the same
questions of all candidates and use your rating scale to evaluate their
answers.
Some companies also like to throw a “curve ball” in the interview—
something abstract with no right or wrong answer—to shed light on a
candidate’s reasoning power, outlook, and comfort in negotiating ambi-
guity, competencies that you may deem important, but which are gen-
erally difficult to measure. Scott Pitasky, general manager of recruiting
for Microsoft, explains that you want people who think differently from
each other or you end up with a group of talented people who always

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 173

Chapter 6 ◆ Selecting for Competence 173

come up with the same answer. One of Microsoft’s questions of choice

is “Why are manhole covers round?”4 How a candidate responds to
such a question reveals clues about creativity and thinking style.

Avoiding Common Mistakes

Thorough and adequate preparation can prevent some mistakes com-
monly made in the interviewing process:

• Talking too much: Give an abbreviated description of the company

background and your job, and focus on getting the candidate to do
most of the talking as he answers your open-ended questions. Re-
member that silence is uncomfortable; candidates will often reveal
more if you are not too quick to fill the silence with another ques-
tion or comment.
• Asking leading questions: Take care not to telegraph the answer
you’re looking for—e.g., asking a question like “You do create slides
in PowerPoint®, don’t you?”
• Being afraid to ask tough questions: Ask all candidates the same
questions regardless of whether you think they will be comfortable
answering them.
• Not giving adequate time: Take the time for a fair evaluation of
each candidate, even when you are tempted to cut it short. Some-
times a nervous candidate doesn’t come across well at first, but re-
laxes and reveals more competence as the interview progresses.
• Rating candidates against each other: Use your objective criteria
and rating scale, not your feelings. A mediocre candidate can look
like a superstar if he follows a weak candidate.

Hiring the right person for each job is the foundation of a successful
business. The selection process is critical, whether you are hiring from the
outside or promoting from within. It is also hard work. Success is more
likely when you base it on a well-thought-out competency model, employ
a definitive process with a common rating scale, and train your interview-
ers to be skilled and consistent in conducting effective interviews.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 174

174 AMA Guidebook to Management Development

Creating a Leadership/Management Pipeline

Future needs of the organization are another issue of concern. The
speed of change in business today makes it hard to predict exactly
when succession shifts will occur. How can you ensure that leadership
and management positions will be filled with the right people having
the right skills at the right time? Growing your own talent is one way to
ensure effective future leadership. The current predictions of a future
talent shortage, due to generational changes in the workforce, make this
approach an important part of your overall staffing strategy.
The Leadership Pipeline, by Ram Charan, Stephen Drotter, and James
Noel, presents an excellent blueprint to accomplish this.5 The book de-
scribes six critical career passages (see Figure 6.1) representing changes
in organizational positions: manage self, manage others, manage man-
agers, manage a function, manage a business, manage a group, and
manage an enterprise. Creating an effective leadership pipeline ensures
that your organization will have an adequate supply of high-quality can-
didates for both present and future leadership positions.
Charan and his co-authors explain that each passage in the pipeline
requires individuals to shift their mindset and acquire new ways of
managing and leading, leaving their old ways behind. The three areas
of change for each passage are:

• Skill requirements: New capabilities required to execute new

responsibilities.
• Time applications: New timeframes that govern how they work.
• Work values: What they believe is important, i.e., the focus of their
effort.

In using this approach, your responsibility is to adjust the pipeline

to meet the reality of your organization. Your challenge then becomes
making sure that people in leadership positions are at the appropriate
level for their skills, time applications, and values, and helping people
begin to develop the appropriate skills, time applications, and values
for promotion to the next level, so they are ready when you need them.
Building this type of pipeline requires a specified process and a com-
mitment to effectively manage it.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 175

Chapter 6 ◆ Selecting for Competence 175

r
age
se Man
rpri
Ente

Passage
Six Gro
up M
ana
g er

Passage
r Five
age
ss Man
ine
Bus

Passage
Four Fun
ctio
nal
Man
ag er

Passage
ers Three
nag
ag e Ma
Man

Passage
Two Man
ag e Ot
hers

Passage
One
S elf
age
M an

FIGURE 6.1 Critical Career Passages in a Large Business Organization

The methods presented in the book are designed to help you diag-
nose your current and future pipeline problems, create development
plans, and manage performance with tools and techniques for coaching
leaders, while dealing with succession issues, preventing leadership fail-
ures, and maintaining the flow in your pipeline. Adapting this method
to your organization’s specific needs can help enhance performance at
all levels of management. Integrating your competency model and the
pipeline provides an overall framework for people to determine what
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch06.qxp_SR 3/18/08 3:04 PM Page 176

176 AMA Guidebook to Management Development

skills, time applications, and values they need to develop to be eligible

for promotion to the next level in the organization. The competency
model helps pinpoint skills to work on. The total framework becomes a
tool for self-assessment of specific development needs, and the frame-
work can easily fold into your overall organizational performance man-
agement and development process.

Summary
Selecting people with the right competencies for the job you need done
is critical in today’s business environment. An integrated approach to
staffing includes an overall staffing strategy with provisions of how
much external hiring versus internal promotion is desirable, a compe-
tency model that defines the skills your organization values, and an ef-
fective leadership pipeline plan with appropriate maintenance methods
identified.
Your next concerns center around providing the training and op-
portunities for learning that will continue to help people develop within
the organization to meet changing business needs. The next few chap-
ters focus on these issues.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 177

C H A P T E R

7
Developing Employees

he war for talent is heating up. Labor force forecasts predict more jobs
T than employees by 2008 and beyond. This war will not be a minor
skirmish; in fact, Jay Jamrog of the Institute for Corporate Productivity
calls current talent conditions a “Perfect Storm” that will make retention
and engagement a key issue for organizational leadership in the future.1
Jamrog’s research says skilled, educated workers are at peak pro-
ductivity from age 35 to 54 and predicts the number of workers in that
age category will decrease by 15 percent while demand will increase by
25 percent in a few short years. The shortage will hit the fields of man-
agement and high-tech the hardest.2 What can your organization do
now to manage the situation? You need ways to increase retention. The
best way to do that is to build an environment that fosters retention and
engagement in your organization. One great strategy is to encourage
self-directed learning; another is to provide training for employees.
Employees want to increase their marketable skills. And research is
finding that the more training they get, the more likely the employer
will retain them. They stay when they feel the organization is investing
in them. Let’s take a more in-depth look at how you can encourage self-
directed learning and provide appropriate learning opportunities so
that employees can grow to meet their own personal goals and the or-
ganization’s skill and knowledge requirements.

Encouraging Self-Directed Learning

We learn our way through life. We learn to walk and talk, to play with
others, to love, to live compatibly with others, and to earn a living
through our work. Through it all we are self-directed learners; we
© 2008, AMACOM, a division of the American Management Association 177
www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 178

178 AMA Guidebook to Management Development

choose what we learn, even when we have no choice in what is being

taught.
In the workforce, employees often learn by observing, such as
when an employee watches a manager handle a situation and decides
whether, given the opportunity, he or she would handle that situation
similarly or differently. Some employees have been known to say they
learned more from poor managers than from good ones—the good ones
make it look easy, but when they observe a poor manager do some-
thing egregious to an employee, they think, “When I’m a manager, I’ll
never do that do my people!”
As Dan Tobin explained in his book of the same title, all learning is
self-directed.3 And self-directed learning is a powerful tool in the work-
place. When employees take responsibility for their own learning, they
improve their knowledge, competencies, and skills to do their work
more effectively and to prepare for advancement. To be successful,
though, they need some help and support from the organization and
from their managers, coaches, or mentors. They need the organization’s
leaders to establish a positive learning environment where learning is
nurtured and valued. They need advice and assistance from managers
who are themselves committed to learning and from the training organ-
ization, as well as access to tools to enable the process.
The new generation of workers, known as the Millennials, comes to
the workforce with a predisposition to self-directed learning. Their famil-
iarity with, and extensive use of, technology in every facet of their lives
has given them confidence in seeking answers. When they have a ques-
tion, they “poke around” the Internet, googling the topic, asking people
in chat rooms and discussion forums, and connecting with others who
might have some answers. These are very independent learners.
Workers in all generations can benefit from, and become adept at,
some self-directed learning. For organizations to harness an employee’s
natural curiosity and ability to find information, you need to provide
supplemental tools, advice, and guides to independent learning. You
need to provide a framework or model of what needs to be learned to
align with the goals of the organization—what needs to be mastered,
when, and why. For example, Dow Chemical created detailed compe-
tency models for all jobs so that employees could easily see what they
needed to learn for whatever job they aspired to. You also need to assist

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 179

Chapter 7 ◆ Developing Employees 179

learners in identifying what learning is done best independently, and

what learning is best acquired in other ways.

Four Learning Types

Not all learning can or should be done independently. Tobin identifies
four possible categories of learning types (see Table 7.14):

• Dependent self-directed learning

• Dependent other-directed learning
• Independent other-directed learning
• Independent self-directed learning

Quadrant I, dependent self-directed learning, is when the employee

decides what to learn. The employee is dependent on others to provide
the methods, materials, and schedule for learning. For example, an or-
ganization might provide a catalog of training programs or a library of

TABLE 7.1 Four Types of Learning

Other-Directed Self-Directed
Quadrant III Quadrant IV
Independent Learning topics, methods, Learning topics, methods,
and materials selected by the materials, and schedule
company. Employee may selected by the employee.
have some choice as to Employee is solely responsi-
method and schedule, but ble for what is learned.
must prove mastery of the
learning content.
Quadrant II Quadrant I
Dependent Learning topics, methods, Learning topics selected by
materials, and schedule the employee, but the em-
selected by the company, ployee is dependent on the
which also provides in- company or another source
struction. Employee is for determining learning
tested at end of program methods, materials, and
to prove mastery of the schedules.
learning content.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 180

180 AMA Guidebook to Management Development

self-study materials. The employee determines the need for learning,

but relies on the organization to determine the content.
Quadrant II, dependent other-directed learning, is when the organi-
zation mandates the learning and predetermines the requirements and
the methods, materials, and schedule. This category often reflects topics
demanded for legal compliance or safety regulations. Employees have
no choice in the training. For example, large corporations often man-
date management training for newly appointed managers; the training
presents “the company way” of managing the function and employees.
In many technical companies, where many employees have earned
Ph.D.s in their field, most of those doctoral programs included no in-
struction on managing a business or leading people. Companies need
to fill that gap.
Quadrant III, other-directed independent learning, is when the
company determines what must be learned but leaves the method se-
lection up to the employee. For example, when an organization intro-
duces a new phone system, there is no choice for employees—they must
learn to use it. The organization might offer training, but attendance is
not mandatory, and other resources might be available, such as a
printed brochure or a computer-based introductory training session.
Quadrant IV, self-directed independent learning, is when employ-
ees determine what they want to learn and how they will learn it. For
example, in accepting a new project, an employee might recognize the
need to learn how to create spreadsheets to monitor finances. The em-
ployee seeks out the information and the preferred resources, sets the
schedule, and proceeds to complete the learning and apply it to the
project at hand. His or her boss may be unaware of the employee’s
learning plan, being concerned only with the employee’s job perform-
ance as evidenced in the overall project management.
According to Tobin, choosing the right category of learning can be
done by asking two questions:

• Is there a clear reason why all company employees, or a specific subset of

employees, must master a new set of skills or body of knowledge? A clear
mandate puts learning into the other-directed (or company-directed)
category as represented in Quadrants II and III. Lacking a clear
mandate, employees can be made aware of the need, but decide for
themselves whether to pursue the learning.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 181

Chapter 7 ◆ Developing Employees 181

• Is there a clear reason why the company should provide specific training to
employees for these skills or body of knowledge? There may be manda-
tory or regulatory reasons for a company to provide training or a
contractual requirement with a client. Faced with needing to train a
large number of employees, an organization might create its own
training program as the most cost-effective measure.

Flexibility is the key. Allowing employees to have some choice in their

learning needs, methods, and schedules, while ensuring the organiza-
tion’s business needs are met, is generally the best choice.

A Positive Learning Environment

“A positive learning environment (PLE) encourages, even demands,
that every employee at every level be in a continuous learning mode,
constantly searching for new ideas, trying new methods, sharing ideas
and learning with others, and learning from others, to find new and bet-
ter ways to achieve individual, group, and organizational business
goals.”5
Real learning comes when employees apply new ideas to their
work, discovering what works and what doesn’t. More learning occurs
when they share their results with other employees and/or learn some-
thing new from the others to help them achieve better individual,
group, and organizational results.
If an organization lacks a positive learning environment, employees
are not encouraged, nor will they seek opportunities to learn, to use
their knowledge on the job or to share with others. They will use their
learning energy elsewhere or look for another job.
A positive learning environment is a powerful attraction for young
professionals. They want to learn and progress in an organization and
in their careers. They look for organizations that foster and encourage
that learning. They like working for managers who take an interest in
helping them learn and who are themselves learners. Everyone benefits
from the constant sharing that occurs in such an environment.
Some examples of company policies that support a positive learn-
ing environment include tuition assistance plans, company-paid profes-
sional memberships and conference attendance, corporate membership
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 182

182 AMA Guidebook to Management Development

at university libraries, and sponsorship of employees to write papers for

publication and to present at professional conferences.

Learning Responsibility
In a classic book in the adult learning literature, Malcolm Knowles
stated, “Every act of teaching should have built into it some provision
for helping the learner become more self-directing. . . . I don’t think it is
healthy—or even humane—for a person to be kept permanently depen-
dent upon a system or upon another person.”6
How can you foster that responsibility in learners? You can help
them identify their own needs, define a learning plan, find and access
learning resources, and find ways to apply their learning to their work.
Your first challenge is helping employees understand the goals of
the business, so they can plan their learning to help the organization
and themselves reach their goals. This can start with new hire training
and be constantly reinforced through company-wide newsletters, as
well as sharing press releases, annual reports, and news bulletins with
everyone in the organization. Leaders and managers need to reinforce
everyone’s contribution to the overall organization in their staff meet-
ings and in performance reviews.
Your next challenge is helping employees recognize their current
competencies and what competencies they need to learn or improve.
Your organization’s competency model explains competencies desired
or required for each job and level of the organization. It tells an em-
ployee what the organization sees as important and provides a blue-
print for skills and abilities to be developed for promotion. Employees
can use that as a starting point to identify the knowledge and skills they
want to learn to advance on their desired career path. Managers can be
trained in how to help people assess where they are and what they need
to learn as part of the organization’s performance management system,
as well as how to coach employees in their learning process.
Most people think they know what they are good at. And most are
probably wrong. Helping people identify their strengths, so they can
build on them, is an important part of supporting self-directed learning,
and an important role you play in this process as will be discussed fur-
ther in Chapter 9.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 183

Chapter 7 ◆ Developing Employees 183

Peter Drucker proposed a three-pronged approach to identifying

strengths.7

1. Do feedback analysis. When you make a decision or do something,

write down what you expect to happen. Several months later compare
the actual results with your expectations. Over time, this will show you
where your strengths lie and where you are not competent.
2. Concentrate on your strengths. Work to improve them and look at
where you need to improve or acquire new skills or fill a gap in
your knowledge.
3. Discover where your intellectual arrogance is causing ignorance
and overcome it. Recognize there are skills and areas of knowledge
that would enhance your strengths. For example, if your feedback
analysis shows that you continually fail in projects because people
don’t cooperate with you, perhaps improving your interpersonal
skills will provide the help you need.

Once employees identify what they want to learn, you can provide
learning resources. Some companies have learning guides that employ-
ees use to determine methods for a wide variety of learning needs. The
guides give pointers for relevant books, articles, websites, and courses,
as well as suggestions for assistance within the company from managers
and peers in applying learning to the job. Employees can be paired
with other employees who excel in the area of learning and get coach-
ing from that person. Other resources might include knowledge man-
agement systems that direct employees to sources of information within
the company or online.

Learning Contracts
An important part of promoting self-directed learning is encouraging
the development and use of learning contracts. Learning contracts help
employees organize their learning more efficiently, encourage them to
be creative in developing their strategies and finding resources, and
force them to provide better evidence of their accomplishments. Con-
tracts can be simple, stated as what I want to learn, what information I
need to look for, what sources I will use, how can I efficiently collect

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 184

184 AMA Guidebook to Management Development

the information from the sources, how will I organize and analyze what
I find, how can I report my findings, and how I intend to use the learn-
ing on the job for the benefit of me, my group, or the organization. Or
they can be more elaborate, detailing the learning needs, the learning
plan, how the learning will be applied to work either in an individual
case, in the team, or in the organization, and how results will be meas-
ured. Plans are more likely to be followed if they are written out and
shared with a manager. A sample learning contract for an employee is
shown in Chapter 9.
Managers need training, since coaching and teaching employees
how to learn may be a new role for them. They, too, can benefit from a
learning contract–perhaps at a greater level of detail than the em-
ployee’s. An example might look like Table 7.2, Sample Manager’s
Learning Contract.

TABLE 7.2 Sample Manager’s Learning Contract8

Part 1: Define Learning Needs
1. The company’s stated goal is to develop the use of self-directed learning by
employees at all levels to reduce the cost of training and to help the com-
pany reach its stated business goals.
2. Write one goal for yourself that reflects what you need to do to support
this corporate goal.
3. What specific behavior(s) do you need to adopt (or change) to meet these
personal goals?
4. What new knowledge or skills do you need to acquire to enable you to
meet these personal goals?
Part II: Develop a Learning Plan
5. What learning resources are available to you or can you find to help you
acquire the knowledge and skills specified above?
6. What learning methods will you use?
7. Develop a schedule for the specified learning activities: “I will complete
which activity by which date?”
8. How will I measure my learning?
Part III: Apply Learning to Work and Measure Results
9. How will you apply the learning to your job?
10. How will you know whether you have met your personal learning goals
and whether these have helped the company achieve its stated goal in re-
ducing training costs and enabling employees to help the company
achieve its business goals?

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 185

Chapter 7 ◆ Developing Employees 185

For self-directed learning to succeed, it must be part of an organiza-

tion’s culture. Every employee can benefit from self-directed learning,
but employees need coaching from their managers, and managers need
coaching from their managers. A continuing emphasis on self-directed
learning creates an environment focused on continuing learning,
growth, and change.

Providing Training
Employees view training as a sign that the organization values them
and their future in the organization. It is a perk that keeps on giving—
training provides knowledge and skills that employees benefit from in
their present job and take with them wherever they go in the future.
Training upgrades personal skills for better immediate job performance
and helps employees learn of new developments in a field. This is par-
ticularly valuable when employees have been out of formal schooling
for some time.
From your organizational viewpoint, training is a way for you to im-
prove staff skills and avoid the additional costs that come with having
to hire new people to find those skills. In the current job market, train-
ing is a differentiator for attracting Generation Xers and the new Mil-
lennials, because they put a high value on training and seek employers
who offer training. These younger generations are very self-confident
learners and performers; they expect the organization to provide av-
enues for their self-improvement.
Training is also a way for you to fill the skill gaps that the baby
boomers will leave when they retire, taking their management skills
with them. Recent research by Personnel Decisions International (PDI)
shows that companies will face a substantial loss in managerial knowl-
edge as the boomers begin to retire in the next ten years.9 In the PDI
research, when boomers and Generation Xers were compared, baby
boomers were more likely to be rated highly by their managers in ten
out of eighteen competencies, were more likely to be rated as “knowing
the business,” and were rated substantially better in their ability to
coach and develop others. On the other hand, Generation X managers
were more likely to rate higher in self-development and in analyzing is-
sues than their older counterparts. Many of the performance or knowl-
edge gaps that Generation Xers have can be filled through training.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 186

186 AMA Guidebook to Management Development

Training is flexible. You can find it being offered in many locations at

many different times during the year, and it comes in a variety of forms.
The training you recommend or select for a particular employee depends
on the type of training needed, the urgency of the need, personal learning
preferences, and the investments of time and money that are considered
reasonable by the manager. Self-directed learning and some of the ways
individuals learn on their own were addressed earlier. Those techniques
can be effective for acquiring information and in learning processes or
procedures. When it comes to interpersonal skills, practice is required for
real learning and behavior change to take place, and that happens only
when people interact, preferably face-to-face in a group setting. An added
benefit of the group experience in traditional classroom-based training is
the breadth of perspectives participants are exposed to.
The question of whether to sponsor the learning internally or exter-
nally needs to be thought through. Indeed, there are advantages and
disadvantages to both (see Table 7.3). You want to weigh your decisions

TABLE 7.3 Internal Versus External Training

Advantages Disadvantages
• Company-specific content • No opportunity to learn
• Contacts within the how other organizations
organization operate
• Less expense per person • No contacts or networking
Internal Training • Less time away from job outside the organization
• Immediate application of • Content limited to what is
learning can be monitored known internally
• Flexible scheduling • Participants may be reluc-
• Taught by organization tant to admit weaknesses
staff or errors
• New perspectives and • General content and ex-
content amples may not apply to
• Anonymity when your industry or situation
developing basic or • Often more costly
deficient skills • Schedule set by others
External Training • Networking opportunities • Time lost from job
with people in other
organizations
• More frequent offerings to
choose from
• Instructors who are expert
in their fields

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 187

Chapter 7 ◆ Developing Employees 187

carefully by asking several questions. Are there large numbers of em-

ployees needing the training? Can you provide it on a schedule to meet
the business demand? Is the content important to, or particular to, in-
ternal operations here in the organization? Would it be better for em-
ployees to learn with other employees, or would they benefit from
exposure to the way other organizations do things? Would it be appro-
priate for employees at different levels of the organization to be in the
same learning cohort?
Let’s take a closer look at group learning opportunities.

Group Learning Opportunities

Electronic Training
E-Learning was discussed earlier as an individual pursuit, but it can also
be a group training experience, with interaction and practice built in.
Online courses come in a variety of formats; some involve a cohort of
individuals who study, discuss, and submit assignments on a schedule
determined by the instructor, much like a bricks-and-mortar university
class without all participants being face-to-face or in the same location.
It can be done synchronously (with everyone participating at the same
time) or asynchronously (with people accessing learning resources at
different times).

• University model courses may or may not be degree-related.

Some “virtual universities” provide extensive degree programs on-
line, with scheduled “classes” (synchronous) and discussion groups
supported by individual work submitted to the instructor for feed-
back. If classes are held synchronously, they may be recorded so
that if someone cannot attend, they can review the class at a later
time. Each class may last 1 to 11⁄2 hours, with discussion boards or
chat rooms for follow-up conversations and sharing of information.
Assignments get e-mailed to the instructor, and grades are issued.
Some courses encourage practice of skills through online conversa-
tions, simulations, or follow-up work between student partners. If a
course is part of a degree program, the provider specifies the
progression of required and elective courses toward a degree.
However, many online colleges allow individuals to take a course
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 188

188 AMA Guidebook to Management Development

without enrolling in a formal degree program as well as providing

noncredit courses.
• Webinars are offered by various training companies and professional
associations. Webinars usually focus on a single subject of interest,
with one or more perspectives and/or topics presented and some
limited discussion time following the formal presentation or lecture.
Webinars typically last about an hour and include some polling of au-
dience interest or knowledge and limited discussion among partici-
pants. They sometimes allow the opportunity for participants to
submit questions, but they are primarily one-way communication ve-
hicles. When presented as a series, they may incorporate “homework
assignments” between meetings. Webinars can be effective for train-
ing on specific topics, particularly in fields where knowledge or per-
spectives are constantly changing. For example, a webinar may be
used to update users on the latest version of a software product, to up-
date accountants on the latest changes in tax laws, or introduce a new
therapy method to physicians. They are typically not offered for col-
lege credit, but may be used to fulfill the continuing education re-
quirements as set by various certification agencies.
• Company-specific web-training courses are often offered via
electronic media because of ready availability, relatively inexpen-
sive cost, and worldwide reach. When she was with Accenture, Peg
Pettingell conducted some communication skills training courses,
enabling people around the globe to come together to learn about
the topic, with interaction via both voice and keyboard to ask ques-
tions, clarify points, and add comments and stories to the discus-
sion. Practice of the skills was accomplished during “breaks” when
individuals in the same location had assignments—an opportunity to
interact and provide feedback. This method can be effective for
some topics, but class sizes need to be kept to reasonable numbers
for each class to maximize the possible interaction and discussion.
Multiple sessions can be scheduled, with individual or small group
assignments between meetings. People typically require initial in-
struction on how to use the system effectively and some technical
support to ensure smooth sailing during the broadcast.
• Discussion groups and online communities present opportuni-
ties to learn about topics in a field of interest and are considered

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 189

Chapter 7 ◆ Developing Employees 189

training when they provide more than just conversational ex-

change. Some professional associations maintain bulletin boards
and discussion groups where members can post questions and re-
ceive referrals to good sources of information or advice from an ex-
pert, or someone who has “been there.” Communities for ongoing
conversation around particular topics of interest are constantly
being formed. These communities are a resource and depository for
in-depth information on certain topics. They can be a rich source of
learning for your employees when they offer open discussions of a
topic. Sometimes these include regularly scheduled panel discus-
sions, with questions from the field, and additional sources for
follow-up on the topic. Of course, the danger of unmonitored pub-
lic discussion boards is that the answers provided have not been
validated, so people take risks when using advice from people
whose credentials or authority they have no way of checking.
• Webcasts offer a quick and easy vehicle for keeping people up to
date on the latest information or thinking around a particular topic.
They are a great vehicle for quickly updating your learning or being
introduced to a new topic with minimal investment of time out of
the workday. For example, recent AMA webcasts focused on the
topics of internal consulting skills for the HR professional, story-
telling as a leadership tool, the challenges of becoming a great
leader, and the use of the MBTI instrument in the workplace. None
lasted more than 45 minutes, and hundreds of people tuned in to
learn the latest thinking from experts in their respective fields.

Instructor-Led Classroom-Based Training

Most organizations offer some instructor-led, classroom-based training
of employees. Whether it is new hire training, training on current and
new equipment or procedures, or formal instruction on a particular
topic, face-to-face training helps employees do their jobs better. While
online training can allow participants to get their questions answered
immediately, most people prefer to ask questions face to face in a rea-
sonably sized group where they have the opportunity to quiz the in-
structor and other participants. Many large organizations even operate
corporate universities where they offer courses in a variety of business

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 190

190 AMA Guidebook to Management Development

topics, such as management, communication, business acumen, and fi-

nance. Many of those courses are instructor-led seminars and work-
shops and may or may not include online support or follow-up.
Instructor-led classroom-based training offers benefits other training
avenues lack. Communication is at its best when people have the com-
bination of verbal, vocal, and visual cues to read and use in expressing
their thoughts and ideas. The personal interaction of faculty and stu-
dents establishes an environment for questioning, group problem solv-
ing, teamwork, practice of new skills with feedback on performance,
peer-to-peer exchange and dialog, and informal networking. Training in
interpersonal skills requires practice with another person; only through
practice can employees develop the confidence and ability to use those
skills on the job. When conversing with another person, individuals can
take the necessary time to reflect and respond, hear their own opinions
stated aloud, and see if they are understood when their thoughts are re-
flected back from another person. So much of the work in organizations
requires individuals to work with others; face-to-face training provides a
laboratory to learn and practice those interpersonal skills for getting the
job done with minimal conflict and disruption. It also provides the op-
portunity to develop skills for handling situations that will occur in the
next promotion level in the leadership pipeline.
There are many options for instructor-led classroom-based learning:
• Internal training courses offer an opportunity to learn the organi-
zation’s preferred way of handling things, e.g., sales training pre-
sents its view of customers, its method of negotiating, or the
organization’s preferred problem-resolution tactics. Customer ser-
vice training reflects a company’s customer philosophy and treat-
ment preferences. The company’s preferred coaching model can be
taught to all managers. Instructors can be dedicated trainers, com-
pany technical experts, or managers from within the organization.
Using managers to conduct all of parts of internal training programs
reinforces the importance of the topics being taught and demon-
strate the importance and value placed on learning within the com-
pany. The content of this training can be developed within the
company or can be provided by other training providers, such as
AMA, or can be licensed from those training providers and taught
by company trainers.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 191

Chapter 7 ◆ Developing Employees 191

• External training courses. There are hundreds of training organi-

zations, such as AMA, that offer face-to-face public seminars and
have the capacity to customize them to your organization’s particu-
lar needs. Most have catalogs or online listings and schedules offer-
ing courses in various locations multiple times over the course of a
year. Some list courses by competencies, so you can match your
employees’ needs to the competencies the seminar addresses. All
provide options for you in helping your employees get the training
they need to either perform their current job or progress in their
abilities and skills, so they can better succeed in their current jobs
and be prepared for promotion to the next level. One of the bene-
fits of sending employees to a public program is that they are ex-
posed to people and ideas from other organizations. External
programs can also be beneficial when your organization wants to
provide training on a basic skill to a senior employee to address a
competency deficit because it gives the employee some level of
confidentiality (rather than having him attend an internal training
program with other more junior employees).
• Conferences. Professional groups continuously research the “hot”
and emerging topics of interest in a particular field and seek out ex-
perts to present information to their members at their annual con-
ferences. They take great pride in being on the cutting-edge of the
thinking in their respective fields. These conferences offer valuable
training to attendees, in large sessions with nationally known speak-
ers, and in small seminar-type presentations on other topics. As you
look for training for future managers, check the conferences that
pertain to their field of interest as an avenue for training. Additional
benefits are that attendees meet other people in the same industry
for networking opportunities, learn what competitors are up to, and
learn of new resources they can call on to search out solutions to
their problems.
• Professional group meetings. Many professional groups have
local or regional chapters that meet periodically to hear expert per-
spectives on a topic particular to, or related to, their field. Usually
meetings last just a few hours, but can be a rich experience with
presentations by experts and questions from the practitioners
present. Often the question-and-answer sessions are the better

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 192

192 AMA Guidebook to Management Development

opportunity for learning, as questions tend to be very practical and

real-world focused.

Future Training
The training literature is beginning to focus on concerns about meeting
the needs of the Millennial Generation. This is the first generation to
grow up with our advanced technology—they take it for granted. It is so
much a part of their life, they don’t consider it anything but a way they
communicate. They are constantly plugged in and multitasking. They
are easily bored if their learning is not specific to their perceived needs
or if it is not paced quickly enough. In their world, when they seek an
answer, they go online and find it. They share what they learn with
friends, and they help friends search for information through blogs,
chat rooms, wikis, and online messaging.
The training industry can expect new challenges from Millennials.
They won’t be content with day-long sessions of knowledge transfer, or
even with video games or online courses or exercises to enliven the
learning. You will need new learning models that blend and manage
the many elements of knowledge transfer: face-to-face group interac-
tion, accessibility of information online, the ease with which workers
communicate directly, and the setting up and monitoring of procedures
and processes to ensure these “fearless information seekers” are always
up to date.
Recently, some managers said they found 20- and 30-somethings
difficult to work with because they have all the answers and know how
to do everything—right or wrong, effective or ineffective. You need to
realize that as this generation matures into their 40s and beyond, they
will realize that things are not always what they seem, that much of
work takes a lot of listening and understanding of specific situations and
different worker’s perspectives. The key to their success will be staying
open to learning and challenging what they think they know. You need
to devise training programs to help them acquire that knowledge and
learn to deal with optional paths of action.
What can you do now to begin developing those new models? You
can begin with tying their learning opportunities to specific competen-
cies needed for success in jobs at the levels of individual professional,

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 193

Chapter 7 ◆ Developing Employees 193

first-line manager/leader, manager of managers, and executives. Know-

ing the competencies needed, you can help managers develop learning
contracts with realistic ways to help employees apply their learning to
the organization’s work. You can design learning to incorporate known
research findings and adhere to quality specifications that will help en-
sure knowledge, skill and attitude change, establishing standards based
on what is known about learning. An example of standards can be
found in Table 7.4, The AMA Design and Development Anchors,
which guide our seminar development process. Every seminar contains
these components, which are known to increase the likelihood of trans-
fer of learning back to the workplace.

TABLE 7.4 AMA Design and Development Anchors

Anchor Description
Value Proposition A statement of the seminar’s tangible benefits; it an-
swers the question “Why should I attend this seminar?”
Seminar Goals Two or three statements that describe what partici-
pants will know or be able to do to add value to their
own work and/or their organization.
Learning Objectives Clear statements of what participants will be able to do
after the seminar:
Key objectives: For each module, one objective that
defines the most important behavior required of the
learner
Enabling objectives: Objectives that state the skills or
knowledge learners must gain to perform the key
objective
Journey Map A visual representation of the learning path that partici-
pants will follow
Action Plan A plan for how participants will apply what they have
learned back at their workplace
Blended Learning Pre-seminar assignments, pre- and post-seminar assign-
ments, tune-up courses, and post-seminar resources
that create a more comprehensive experience for the
learner and produce a greater return on investment for
the employer
Exercises Practical, applicable, and relevant learning activities
Demonstrations Presentations that help participants apply what they
are learning in a way that motivates and engages them
(continued)

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch07.qxp_SR 3/18/08 3:07 PM Page 194

194 AMA Guidebook to Management Development

TABLE 7.4 (Continued)

Anchor Description
Appropriate Models Organizing structures that help participants remember,
and Frameworks learn, and apply new information, processes, etc.
Learner-Constructed, “Do-your-own” exercises that help participants
Guided Self- apply their learning to personal work situations
Discovery
Peer-to-Peer Opportunities for participants to discuss and learn from
Dialogue one another
Practice–Safe, Activities that give participants a chance to use new
progressively tools and processes and then get detailed feedback
challenging, and from the instructor and other participants
appropriate
Tools and Job Aids Practical, easy reference guides to facilitate the applica-
tion of learning back on the job
Expert References Research, quotations, citations of books and articles by
well-known experts or authors

Summary
More research is needed on the learning habits and styles of the future
generations of workers and on how to blend technology into learning
processes to assist employees in learning the communications, interper-
sonal, and management skills that are so critical in working with others
to achieve business goals. You need to stay open to new approaches to
learning and to changing your traditional view of training. In the next
chapter we address some ways to provide learning beyond training.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 195

C H A P T E R

8
Management Development
Beyond Training

raining, whether self-directed learning, e-learning, or internal or ex-

T ternal classroom training, is only part of the solution to developing
managers at all levels of any organization. Training can help employees
build their knowledge. But what you should really be concerned with in
developing the management talent to drive your organization’s future is
the application of learning to the job—how well your employees apply
what they learn, by any means, to make a positive difference in the
achievement of the organization’s goals. This is the Kirkpatrick Level 3
evaluation that we discussed in Chapter 1, and it calls for the organiza-
tion to provide opportunities for employees to apply what they have
learned and, through that application, to develop the knowledge they
will need to manage the business and its employees. This approach is
often called “action learning.”

Action Learning
Michael Marquardt defines action learning as “a dynamic process that
involves a small group of people solving real problems, while at the
same time focusing on what they are learning and how their learning
can benefit each group member, the group itself and the organization as
a whole.”1
Here are a few examples of group action learning projects under-
taken by organizations and the competencies that might be built or
strengthened through participation in each project.

© 2008, AMACOM, a division of the American Management Association 195

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 196

196 AMA Guidebook to Management Development

• At one company, a group of individual contributors identified as

having high potential for future management roles was assigned to
a cross-functional task force to make recommendations on revitaliz-
ing a longstanding product whose sales had been sagging in recent
years. The individual members of the task force came from market-
ing, sales, finance, manufacturing, and engineering. Participation on
the task force enabled each member to gain knowledge about the
other functions represented in the group while doing the needed
market research, competitive analysis, and product planning. The
competencies that were strengthened included business acumen
(broadening each member’s view of the company’s business be-
yond their individual functional silos), customer focus, resource
management, problem solving, and both working as a team and
team leadership.
• A group of mid-level managers was selected to manage the com-
pany’s United Way campaign for the year and given responsibility
for enlisting employees throughout the company to donate to this
charity. Competencies developed or strengthened included influ-
encing operational and tactical planning, interpersonal savvy, cre-
ativity, and presentation skills.
• A group of engineers was assigned to train the salesforce on a new
product they had developed. This allowed the engineers to gain
more knowledge of the perspectives of the salesforce and the cus-
tomer, forced them to improve their presentation skills, and helped
them view their new product from the perspective of customer ben-
efits rather than from their own perspective of product features and
specifications.
• A group of individual contributors from one manufacturing plant
was sent to another plant to learn about new methods being used
there and then to plan how to introduce the new methods into their
own plant. This action learning assignment helped these employees
develop their own learning skills as well as their planning and train-
ing skills. They also had to learn to influence their fellow employees
to get them to adopt the new methods.
• One organization set up a task force of employees to address em-
ployee retention—what was causing some employees to leave while
others stayed, and what could the company do to retain its best

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 197

Chapter 8 ◆ Management Development Beyond Training 197

employees? This helped the task force members develop their lis-
tening and problem-solving skills, while learning a lot more about
interpersonal savvy and how to present their findings to upper
management.

While Marquardt’s definition of action learning includes only group

projects, there are many opportunities to use action learning with an in-
dividual. Here are a few examples:

• At one company, the comptroller for its sales division was assigned
to take over the responsibilities for the manufacturing division’s
comptroller when she went out on a short-term medical leave. This
helped the sales comptroller broaden his perspective beyond the
sales silo.
• A new training manager for a marketing organization was assigned
to arrange the orientation of the newly hired head of the marketing
group’s European operations during her visit to headquarters. This
gave the training manager the opportunity to meet all of the man-
agers in the marketing group to arrange the visitor’s schedule and
then to learn about the work of the marketing group by accompa-
nying the European manager to all of the arranged meetings.
• A high-potential individual contributor was assigned to put together
a task group to solve a customer problem. This assignment tested
her team leadership capabilities as well as helping to develop
problem-solving skills, customer focus, and interpersonal skills.
• A first-level manager was sent to an external training program on a
new software application with the understanding that he would be
in charge of implementing the new application upon returning from
the training. This helped the manager develop competency in plan-
ning, problem solving, coaching, and innovation management. (It is
often said that you must develop a much deeper understanding of a
subject to teach it, as contrasted with just knowing it or using it
yourself.)
• An experienced individual contributor who had made it known that
she wanted to be considered for a management position was asked
by her manager to work with two recent college graduates newly
hired into the group, orienting them, teaching them the group’s

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 198

198 AMA Guidebook to Management Development

T H E W R O N G P E R S O N
F O R T H E J O B

This product line was twenty years old and had been a cash cow for the
company, performing well year after year—until two years ago. At that
time, a new competitor came into the market, and the product line man-
ager told everyone that it was no real threat to the success of the business.
But he was wrong—sales and profits had eroded steadily over the past two
years, and the competitor continued to gain market share with new innova-
tions that the company hadn’t even considered. When the product line ac-
tually lost money two quarters ago, for the first time in fifteen years, the
product line manager was summarily fired.
The company’s leadership team looked at possible replacements for the
product line manager within the company. They selected a younger mar-
keting manager who had been with the company only a few years, but
who had shown a lot of creativity and good results in another product line,
to head the troubled operation. He had been such a success in his current
role, certainly he could come in and save the situation.
It would be kind to say that the new person was an absolute disaster.
He came into the new job already “knowing” what was wrong and started
issuing orders immediately. He also summarily dismissed several key people
who had real knowledge of the problems and challenges when they dis-
agreed with his approach. Six months later, the hemorrhaging of profits
continued at an accelerating pace, some of the product line’s most talented
employees had left (and there were rumors that many others had their re-
sumes on the street), and the CEO had no choice but to fire this manager.
The costs to the company were almost immeasurable—not only the dollars
represented on the income statement, but also the loss of momentum in
the marketplace, the reputation of the product line among customers, and
the worsening morale of the employees within the product line.
How could this scenario (one that has occurred in many organizations)
have been avoided? What if the company had a development program for
employees who had been identified as having high potential for future lead-
ership positions? And what if, through a series of low-risk action learning as-
signments, the company had tested this individual to see if he had “what it
takes to succeed”? If the company had proceeded in this way, it might have

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 199

Chapter 8 ◆ Management Development Beyond Training 199

discovered that this promotion would be a disaster before making it and

saved the company many times the cost of the development program.

operating procedures, and coaching them on an ongoing basis until

they proved themselves ready to work solo. This assignment helped
her develop a number of her management competencies while test-
ing her readiness to step into a management role on a full-time
basis.

These are among the many types of action learning projects that
can be assigned to groups or individuals.2 There are many benefits
that organizations can accrue from these types of action learning
assignments:

• These types of assignments help employees apply what they have

learned through self-study, formal instruction, or just plain observa-
tion of other managers in the organization and to develop their per-
sonal competence in many areas.
• Assigning people to tackle problems that would typically be as-
signed to higher-level managers can bring new perspectives and ap-
proaches to those problems. Experienced managers often fall back
on longstanding processes and procedures and may benefit from
the input of people who aren’t limited in their vision by the blinders
of standard company practices.
• Action learning projects can also help the organization test employ-
ees’ competence before promoting them. Most organizations have
had more than one disaster arise from assigning the wrong person
to an open management position, as described in “The Wrong Per-
son for the Job.”
• Action learning assignments can also test whether employees are
willing to stretch themselves beyond their current assignments in
order to contribute to the company’s and their own success (see
“Who Will Follow Through?”).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 200

200 AMA Guidebook to Management Development

W H O W I L L F O L L O W
T H R O U G H ?

A software company created a two-year leadership development program

for a group of mid-level managers who had been identified as having high
potential for future leadership roles in the company. A primary feature of
this program was the assignment of participants to action learning teams
that were given developmental assignments to complete between each of
the program’s quarterly educational sessions. At the start of each quarterly
session, each team presented its project to a panel of senior company exec-
utives, talking about both what they accomplished and what they had
learned through the projects.
At one of these sessions, one team proudly presented its project and
then challenged the executive team, saying: “Now that we’ve proven the
concept of the new approach, what are YOU going to do to make certain
that our project is disseminated throughout the company? We’ve worked
very hard on this project and put in many extra hours over the past three
months, and we want to be sure that YOU are going to do something to
ensure that our efforts aren’t wasted.”
A second team presented its separate project, one that was equally as
exciting as the first team’s and produced equally impressive results. At the
end of its presentation, the second team told the executive panel: “We be-
lieve that what we have accomplished on a small scale with this action
learning project can benefit the company by broader implementation. So,
we have already started to involve people from other business units and
from other geographies, describing our efforts to them and our results—
and we have found a lot of interest throughout the company. Therefore, we
think that many other groups can use our project as a prototype for their
own efforts. We have already told them that our team members will be
happy to consult with them and advise them on any implementation issues
that may arise.”
Both teams had done a fine job with their assigned projects and had
proven their competence in attaining the goals set for their respective proj-
ects. But the first team felt no responsibility for its work beyond complet-
ing the assignment, while the second team had already planned how to

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 201

Chapter 8 ◆ Management Development Beyond Training 201

propagate its results on a larger scale throughout the company. To which

team do you think the executive team will look for future company leaders?

Being Coached
You can find dozens of different coaching models, each claiming to
hold the secret to success. In fact, if you search Amazon.com’s book
listings using the word coaching, you will find more than 45,000 list-
ings! There are also many different organizations that offer training on
coaching skills and at least a dozen different organizations that offer
coaching certifications. We will not offer a different coaching model
here, for the many different models that exist are basically the same.
They focus on providing the coaching client (or coachee) an opportu-
nity to self-discover solutions, eliciting solutions and strategies from the
coachee, rather than imposing them, and holding the coachee responsi-
ble and accountable for execution. The International Coach Federation
defines the coaching process as one that helps clients “deepen their
learning, improve their performance, and enhance their quality of
life.”3
Some try to distinguish among various purposes for coaching, e.g.,
to deal with a problem employee, to improve a good employee’s per-
formance, or to help an employee apply what he has learned in the
classroom, but the basic concepts remain the same in each situation. In
terms of management development, we will focus here on helping new
managers, at all levels, learn and improve their management competen-
cies as defined by the AMA competency model.
If you recall the four-stage learning model presented in Chapter 1,
knowledge is developed by applying information to one’s work. The
fact is that a lot of information garnered in the learning process,
whether through instructor-led training, e-learning, or other self-study
methods, never gets applied to people’s work. Too often, people fall
back on old ways of working rather than risk trying something new:
“The new method I learned sounds great, but I’ve never used it in the
real world, and while the new method promises a better result, I feel
safer using the method I know–the old way may not be as good, but I
am comfortable with it and I know it works.” This is one of the

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 202

202 AMA Guidebook to Management Development

longstanding objections to e-learning—once the employee returns to

work and tries the new method she learned, there is nobody there to
answer questions if something doesn’t work as planned.
Coaching by one’s manager is an effective way of handling this type
of conundrum. This is why the learning contract described in Chapter 1
requires that the employee and manager discuss, both before and after
learning takes place, how the employee will apply her learning on the
job and what assistance the employee will need from the manager to
support that application. This is a form of coaching built into the learn-
ing contract.
Another application of coaching to develop managers deals with
helping the new manager, at all levels, learn to trust his or her instincts.
Very often, a newly promoted manager instinctively knows the right
thing to do, but is hesitant to follow those instincts for fear of failure.
Coaching of the new manager can help to elicit those solutions and re-
inforce the strategies that the new manager has developed but is wary
of trying.
As valuable as coaching can be in developing managers at all levels,
it is neither the only nor the correct approach in all situations. There are
times when a manager must tell an employee what to do and other times
when the manager must teach the employee what to do. For example,
when there is an emergency situation that requires immediate action, the
manager may not have the time to help the employee find the right solu-
tion–the critical nature of the situation may require that the manager im-
pose a solution. In other cases, when the manager knows that the
employee doesn’t have the necessary knowledge or skills, the manager
may choose to teach the employee how to solve a problem so that the
employee can solve similar problems in the future without relying on his
manager’s input. For example, a new mid-level manager may approach
his boss with a problem situation and ask for assistance. A typical re-
sponse in this type of situation might be: “Let me tell you how I view
this type of situation, how I would handle it, and why I recommend tak-
ing this approach.” This is a prime “teaching moment.”
Coaching is built on trust, and the coach must be certain not to vio-
late this trust. If there is only one solution to a problem situation, or if
there are reasons why a particular solution must be imposed, the coach
should make it clear that she is going to impose a solution and explain
why. The worst thing a coach can do in this situation is to ask the

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 203

Chapter 8 ◆ Management Development Beyond Training 203

coachee to suggest possible solutions with the coach rejecting all offered
solutions until the coachee comes up with the one that the coach has in
mind—this isn’t coaching, it’s manipulation.
Who should coach the new manager? Coaching can be done by
one’s manager, a trainer, a human resources manager, a colleague, or
even an employee.4 The primary requirement for a coach is that he has
the opportunity to observe the manager in action and have the trust of
the manager. That said, we recommend that the primary coach of a
manager at any level be that manager’s own manager–as explained in
Chapter 9, the employee-manager relationship, at any and all levels, is
the key to development.
The nature of coaching may change depending on the level of the
coach and the coachee, but the basic skills remain the same. Marshall
Goldsmith, widely noted as one of the leading executive coaches of our
time, has written that executives often avoid coaching their direct reports
for several reasons—because of the demands of other facets of their work,
because they feel that their direct reports have greater knowledge about
their businesses than they do, and because they fear alienating their direct
reports. But Goldsmith argues that executives should also be coaches, al-
beit with a somewhat different focus than lower-level managers:

The “good news” is that while successful people tend to resist negative
feedback about the past, they almost always respond well to positive
suggestions for the future. By focusing on the future, executives can
help direct reports be “right” tomorrow, as opposed to proving they
were “wrong” yesterday. Effective coaches can generally cover what
they need to say by focusing on the future (as opposed to dwelling on
the past).5

The AMA regards coaching skills as a real key to developing man-

agers at all levels in an organization. For this reason, the AMA recom-
mends that all managers, at all levels, be trained on coaching skills and
be held accountable for coaching their employees.

Gaining Perspective
Many organizations pride themselves on growing and promoting man-
agers internally. While this is often an admirable practice, it is desirable,

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 204

204 AMA Guidebook to Management Development

if not absolutely essential, that the company also help managers gain
perspective from the outside. Just because the company has been suc-
cessful doing things in the same way for a long time doesn’t mean that a
better method that would bring greater benefit to the company doesn’t
exist somewhere else in the world. Dedicated managers at all levels
tend to focus inwardly and limit their perspective on what else is going
on in the outside world.
So, how can managers gain this type of external perspective? We
recommend the following methods:

• Reading and discussion

• Membership and participation in professional and industry organi-
zations
• Attending conferences and tradeshows
• External benchmarking and field trips
• Attending external education and training programs

Reading and Discussion

Thousands of new business and professional books are published each
year. While many offer only slight variations on old models, theories,
and methods, there are new ideas offered by many, and even those that
rehash old ideas often provide a fresh approach to their application.
Many business, professional, and industry publications and websites re-
view selected books in each issue. Other reviews can be found on web-
sites such as Amazon.com and 800CEORead.com. Similarly, there are
many business and professional publications and thousands of websites
that focus on new ideas related to management, as well as industry and
professional topics.
Your company should encourage reading outside of work and the
open discussion of new ideas and approaches. Does your company
maintain a company library or pay for employee subscriptions to rele-
vant journals and magazines? Will your company reimburse employees
for the purchase of relevant books? Has your CEO, having read a book
with some new ideas, ever ordered multiple copies for employees and
led an open discussion of the ideas (see “Have You Ever Been Caught
Reading on the Job?”)?
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 205

Chapter 8 ◆ Management Development Beyond Training 205

H AV E Y O U E V E R B E E N
C A U G H T R E A D I N G
O N T H E J O B ?

In many presentations I have given to corporate groups, I have often asked

the audience: “How would you feel if your CEO walked into your office and
found you sitting there reading a book?”
Most people reply that they would be embarrassed to be “caught”
reading, rather than “working” and would quickly hide the book. But as-
suming that the book had something to do with your job or the company’s
business (as opposed to a mystery or a romance novel), reading should be
viewed as a legitimate form of employee learning. A good CEO in this case
might ask: “What’s that you’re reading? Any good ideas we should be con-
sidering for our company? Would you recommend that I read it, too?”
At one company where I headed employee development and organiza-
tional learning, I purchased several copies of a new business book that I
thought could benefit the company and sent them to the CEO and a few
other officers with a note. A week later, the CEO called me and said that he
really liked the book and could I buy copies for all of his direct reports and
then lead a discussion of key ideas from the book at one of his staff meet-
ings a few weeks later. Another time, I sent a new book to a division head
who, after reading it, asked me to put together a discussion guide that he
could use with his division management team. (Of course, there were times
when I did this and got no response from the people to whom I had sent
the book—not every idea that rings true for you will appeal to everyone
else.)
Dan Tobin

Almost every woman we know belongs to a reading circle—a group

of local women who meet once a month to discuss a book that the
group chooses and everyone reads. In fact, these reading circles and
groups have become so widespread that many publishers provide dis-
cussion guides for popular books on their websites, and some have
even started publishing discussion guides as an appendix to the book
itself. Business book publishers have been lax in providing similar
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 206

206 AMA Guidebook to Management Development

discussion guides for their books, although some e-publishers6 sell study
guides for selected best-selling business books. The New York chapter
of ASTD has a book club whose members “share insights we gain from
articles, books and life experiences.”

Membership and Participation in Professional

and Industry Organizations
There are professional and industry organizations for virtually every
type of industry and profession. These organizations publish journals,
magazines, and newsletters, usually have annual meetings or conven-
tions, have websites with many resources, and often have local chapters
around the country or the world that meet on a regular basis. They pro-
vide opportunities for members to exchange ideas and learn from oth-
ers; host educational sessions and presentations on new ideas, methods,
tools, and processes; and host trade shows where members can see the
latest products and services from a wide array of vendors. Many of
these resources are provided free to nonmembers, and some associa-
tions allow nonmembers to attend meetings and conventions for an ad-
ditional fee. It is usually easy to find such associations—just put the
name of your industry or profession and the word “association” into a
search engine and scan the results.
These types of associations provide many opportunities for learn-
ing. Even if your organization provides many internal training pro-
grams, it is always good to look for new ideas on the outside.
Membership in these types of organizations helps employees network
with their fellow professionals, find out what’s working or not working
for others, and discuss their own ideas in a safe environment. Many of
these associations also have active discussion boards that can be very
helpful when you want to find a source or an answer to a question be-
cause you can draw on the knowledge of many people with many dif-
ferent levels of experience (see “Teaching in Brazil”).
Active participation in a local chapter or a national association can
also help to develop competencies that you may not have the opportu-
nity to develop in your job—competencies such as organizational abili-
ties, leadership, and teamwork.
Does your company pay for employees to join relevant industry
and professional associations? Do you reimburse employees for meeting

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 207

Chapter 8 ◆ Management Development Beyond Training 207

T E A C H I N G I N B R A Z I L

In the mid-1990s, I was invited to present a series of workshops in Sao

Paulo, Brazil. Never having been to South America, I didn’t know what to
expect in terms of my audience, how American ideas would be received in
Brazil, or how to work with the simultaneous translation that would be used
for the seminars.
I turned to a training and development discussion forum hosted by
Pennsylvania State University to which I belonged to gather more intelli-
gence. I posted a note about my assignment and asked the 6,000+ partici-
pants from around the globe for advice. Within 48 hours of posting my
note, I had more than a dozen responses. Some were from members in
Brazil who told me about the Brazilian business community to which I
would be speaking. Others came from Americans who had given seminars
in Brazil and offered some practical advice. On the subject of simultaneous
translation, I heard from several people who had worked with translators
and also from two people who did simultaneous translation. All of the ad-
vice enabled me to be more effective in the seminars I presented.
It should be noted that I did not know any of the people who re-
sponded to my request, but that they were, through this discussion forum,
part of my professional network and were willing to share their knowledge
and wisdom with another member of the profession, asking only that I con-
tinue my participation in the forum and offer my knowledge to answer
questions from others.
Dan Tobin

fees or expenses to attend a national conference? Do you allow employ-

ees to take time from their regular work to do work for the association?
There can be many benefits from doing so.

Attending Conferences and Tradeshows

There are thousands of conferences and tradeshows each year, covering
a myriad of topics and technologies. Attending such events can provide
many learning opportunities for your employees:

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 208

208 AMA Guidebook to Management Development

• At conferences, they will be exposed to many different ideas and

see how others have been implementing them.
• At tradeshows, they will see how your own organization presents it-
self to the public (assuming that your organization is participating)
and, by working at the company booth, hear the questions and re-
actions of current and potential customers.
• Employees also can visit the booths of your organization’s competi-
tors, see what they are offering, and hear the reactions of the buying
public to your competitors’ products and services.
• By presenting at a conference or tradeshow, your employees can
test their own ideas, develop speaking skills, and test the reaction of
current and potential customers to new ideas for products and
services.
• By speaking with other participants who have similar experience
and interests, employees can build their own professional networks
that can offer ideas and advice in the future.
• By bringing back to the workplace the new ideas they have gar-
nered from their participation in such events, employees can help
others learn as well, extending the benefits beyond themselves.

External Benchmarking and Field Trips

Benchmarking became very popular over the past several decades as
part of the quality movement. Organizations of every size have con-
ducted benchmarking visits to measure themselves against industry
“best practices” (see “A Note on Best Practices”).
Some organizations have created benchmarking groups whose sole
purpose is to conduct benchmark studies of others in their own industry
or in other industries, and sometimes within their own organization, to
find ways to improve performance and results. In other organizations,
such benchmark studies are assigned to the groups that will be affected
by changes, and in yet others, the studies were assigned to groups of
high-potential managers. We prefer the latter approach, because bench-
mark studies can provide valuable learning to high potentials (whether
individual contributors or managers who are candidates for higher-level
positions) by exposing them to ideas and methods outside the organiza-
tion. Being part of a benchmarking team can help to develop a number of

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 209

Chapter 8 ◆ Management Development Beyond Training 209

A N O T E O N B E S T P R A C T I C E S

AMA avoids using the term “best practices.” To state that one method or
model is a best practice implies that a scientific study has been done to
prove that this method or model is superior to all others that exist—and
that just isn’t the true in most cases. Further, just because a method or
model works well in one organization doesn’t necessarily imply that it
will work best for all organizations in all circumstances. For these reasons,
American Management Association, in creating instructional materials for
its many programs, prefers to use the term “excellent practices.”

competencies, including perspective, problem-solving, decision-making,

teamwork and team leadership, and influencing skills.
Field trips can also be a valuable learning experience, opening em-
ployees’ minds to new ideas and approaches. You can organize your
own field trips or use the services of a company that organizes such
field trips. One such organization is New York-based FutureThink, a
consultancy that provides education, best practices, and field trips on
innovation. FutureThink describes its organized field trips within New
York in this way:7 “To think out of the box, get out of the office. Take a
full-day innovation immersion in New York City. You’ll get first-hand
interaction with the innovative sites and experiences that are shaping
the business landscape.”

Attending External Education

and Training Programs
While there are many benefits to be gained from company-driven edu-
cation and training programs, designed specifically for the organiza-
tion’s employees and given by company trainers, there are also benefits
to occasionally sending employees to external programs. The benefits
include:

• Exposure to new ideas and approaches from the external training

organization.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch08.qxp_SR 3/18/08 3:08 PM Page 210

210 AMA Guidebook to Management Development

• The ability to try out new skills in a safe environment where the
participant doesn’t have to worry about exposing ignorance or of-
fering a novel idea that might embarrass him or her among peers in
his or her own organization.
• The ability to learn from the experiences of other participants from
a wide variety of organizations, both within and without the partici-
pant’s own industry.
• Building personal and professional networks that can provide ad-
vice and reinforcement beyond the time spent in training.

Summary
In this chapter we have discussed a wide variety of development meth-
ods that extend beyond formal training programs. As will be discussed
in the next chapters, many of these approaches to management devel-
opment require the active participation of both employees and their
managers. Further, there are new roles that will be defined within
the management development process for organizational leaders, the
human resources group, and the training group.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 211

C H A P T E R

9
The Role of the Manager/
Employee Relationship

ost managers understand their responsibility for developing their

M employees. The role of manager as developer is widely recog-
nized and written about in the management literature. It is a core
management responsibility that is vital to the manager’s and the organi-
zation’s success.
In Managing for Excellence, Bradford and Cohen1 identify several
benefits of the manager as developer role. First, it increases the proba-
bility that assigned tasks will be completed at a higher level of excel-
lence, as employees seize new opportunities, uncover problems and
difficulties early, share knowledge, and feel a commitment to the deci-
sions made. Second, it increases feelings of responsibility by employees,
not only for the task at hand, but for the success of the unit as they par-
ticipate in management decisions. Third, employees become more mo-
tivated as they gain a sense of influence and power over their work.
Those benefits are impressive and very desirable, which explains why
“developing employees” generally appears on every management posi-
tion description at every level of the organization.
Managers who develop employees effectively also reap their own
benefits. They enhance their reputation in the organization. Other man-
agers look to them and their department when seeking qualified staff.
The manager becomes known as the “go-to” person for high-quality
staff. His or her subordinates are seen as high performers. A senior
partner in one of the world’s largest accounting and consulting firms
once told Dan Tobin that his personal measure of success has always

© 2008, AMACOM, a division of the American Management Association 211

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 212

212 AMA Guidebook to Management Development

been how many of the junior associates whom he hires eventually be-
come partners in the firm.
Managers also make themselves more promotable when they de-
velop their staff. In looking for candidates for promotion, senior man-
agers observe who has someone ready to take their place, with minimal
disruption to the operation of the unit. If a manager feels threatened by
competent employees or is fearful of becoming obsolete when he devel-
ops an employee, the manager is, in reality, closing down his own
chance for promotion. While some managers hoard knowledge, feeling
that knowledge is power (“If I can’t be replaced, I can’t be fired”), more
savvy managers recognize that developing their employees can improve
their own careers (“If you can’t be replaced, you can’t be promoted”).
Employees like working for managers who help them develop their
skills and progress in the company. Employees are generally more mo-
tivated, more loyal, and trusting of a manager who has a reputation for
developing employees.
Most organizations reinforce the developer role by holding man-
agers accountable for their employees’ performance through a per-
formance management system that includes recommendations for
performance improvement. The system generally ties to advancement
and compensation. Whether an individual manager actually develops
direct reports depends on the organizational culture, the manager’s
comfort level in doing so, and the rapport that exists between the man-
ager and the employee.

Establishing the Relationship

The relationship between the manager and the employee is the key to
all successful development. No one knows an employee’s strengths,
weaknesses, and developmental opportunities as well as the employee
and his or her manager.
Effective development requires that a manager recognize the com-
petencies needed for success in a position and focus time and effort on
evaluating each individual, determining strengths and weaknesses, and
helping the employee to develop those competencies for the benefit of
the employee, the work unit, and the organization. The individual em-
ployee, in turn, must be open to suggestions and willing to take on the
challenge of learning.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 213

Chapter 9 ◆ The Role of the Manager/Employee Relationship 213

As they work closely together over time, the manager observes the
employee in a variety of situations and forms ideas and opinions about
performance and potential. The manager can test those assumptions
and discuss them with the employee. The employee, in turn, grows
more secure in trusting how the manager assesses his or her strengths,
weaknesses, and potential. The relationship develops as the lines of
communication and trust build over time.
The ideal relationship is a partnership between manager and em-
ployee, focusing on how best to use the individual’s talents to the bene-
fit of the employee and the organization. As the employee grows and
assumes more responsibility, he or she partners more with the boss,
helping him or her, in turn, becoming an even better manager.
Organizations must support this partnership approach in tackling
challenges, solving problems, and achieving common goals. This sup-
port is becoming increasingly important as organizations begin to lose
baby boomer managers and replace them with Generation X man-
agers. Generation X managers come to the table with a more collabora-
tive approach to management. As a group, Generation X managers are
more collaborative by nature, and they expect to accept responsibility
for their relationship with their own boss and with their employees. Or-
ganizations need to embrace this mindset and support more collabora-
tive partnership arrangements in getting work accomplished.
What does an effective partnership relationship look like? Accord-
ing to Influence Without Authority by Allen Cohen and David Bradford,2
partners stay loyal to the partnership’s objectives—objectives that they
set collaboratively and whose importance they agree upon. True part-
ners place the good of the organization ahead of their own good, work-
ing for mutual benefit by temporarily setting aside personal interests.
Partners value and take advantage of their differing skills and perspec-
tives, setting aside egos and capitalizing on the strengths of each part-
ner. Effective partners tolerate each other’s foibles and don’t assume
that bad behavior comes from bad intentions but rather from misinfor-
mation or misguided views. They are willing to give the partner the
benefit of the doubt and trust in the partner’s decisions.
Partners share vital information and speak up to avoid costly
mistakes. Partners don’t let partners make big mistakes. They help
each other identify and seek new opportunities. They are constantly
aware of the other and looking out for what is in the best interest of the

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 214

214 AMA Guidebook to Management Development

partnership. In an effective partnership each person realizes that each

has a stake in making every member of the partnership as productive
and successful as possible.

Identifying Strengths
Traditionally, managers were encouraged to identify the strengths and
weaknesses of their employees and devise ways for those employees to
overcome their weaknesses. In that way the employee would grow in
skills he or she did not have or that needed improvement. Performance
reviews briefly cited strengths and focused on areas that needed work,
proposing development plans, timelines, and assignments that included
things like courses, books, and workshops to help the individual change
and grow his or her skills and capabilities. For some this was effective,
for others a disaster. Consider the employee who was weak in organiza-
tional skills, took several courses and endeavored to improve, but no
matter how she tried was unable to keep project files organized. The
employee was extremely creative in her approaches to projects, but
could not organize the details. Should the manager terminate the em-
ployee because she could not master organizational skills and lose the
benefit of her creativity?
In the new workplace, where partnership is the preferred mode of
operating, managers begin by recognizing the competencies needed for
effective performance in a position. The first section of this book
defined the competencies for individual professionals, first-level man-
agers, mid-level managers, and functional managers. Knowing the com-
petencies needed at different levels in the organization helps managers
pinpoint the target—what will help each individual perform and succeed
in a position and what additional competencies that individual will
need to develop to progress to the next level of the organization. Re-
member, some competencies are innate—they are what we hire or pro-
mote for—and some can be developed. Once a person is hired, or
promoted into a position, the manager’s job shifts from identifying the
competencies a person brings to the job to helping her develop or im-
prove more competencies and determining how best to use those com-
petencies in the job at hand.
Once a manager knows what is desirable in a position, the manager
looks to what is unique about each individual and tries to capitalize on

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 215

Chapter 9 ◆ The Role of the Manager/Employee Relationship 215

it. According to Marcus Buckingham, in The One Thing You Need to

Know, great managers figure out the best way to transform talents into
performance.3 There is a growing realization that you will never change
what is not changeable in an individual. Instead, managers need to
identify the individual’s strengths and focus their efforts on how best to
utilize those strengths for the benefit of all—the individual, the team,
and the organization.
Buckingham sees the first talent required of a manager as an instinct
for coaching, and the second as the ability to perceive individual differ-
ences. A great manager works with employees, challenging them to
identify, practice, and refine their innate strengths and turn them into
performance, or rearranges the environment to take full advantage of
those strengths, while bolstering each employee’s self-assurance and
confidence.
Weaknesses can’t be ignored entirely, because if left unaddressed,
they can undermine strengths. Managers can provide training, support,
and coaching to help employees address weaknesses to mitigate their
effect, or work out partnering arrangements that compensate for the
weakness.
How can you help managers perceive an individual’s strengths?
Certainly they need sharp observation skills coupled with careful
thought. Those behavioral skills are trainable, but the thought takes
more work. The brain research on executive skills, reviewed in Smarts
by Chuck Martin,4 can help. Executive skills are defined as those skills
that help you make decisions about what information you should focus
on and how you will manage your behavior. The research says every
individual is hardwired to be stronger or weaker in certain executive
skills. This is not a new concept. We have long believed that no one
person can be strong in all competencies or skills, but that each person
shows preferences for certain ways of operating and is more successful
in some areas than others. There are numerous instruments—e.g., DISC
and MBTI—that try to pinpoint preferred personality style differences
and how best to take advantage of them in the workplace.
This brain research says that executive skills are not dramatically
changeable by the time you become an adult. So, constantly focusing
on weaknesses and working to overcome them can be self-defeating.
Knowing your stronger skills, you can identify jobs that play to your
strengths and situations that are more likely to result in failure. The

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 216

216 AMA Guidebook to Management Development

research advocates focusing on using your strengths, before addressing

the weaknesses. And even then, realize that you can mitigate the effect
of the weaknesses, but will never really change your hardwiring. Mar-
tin’s book provides a validated instrument for determining individual
strengths—it can be a valuable tool for managers to identify their own
and subordinates’ strengths.
Armed with that knowledge, a manager can plan how best to use
those individual strengths and work with subordinates to minimize the
effect of their weakest skills. So, the first step in helping managers de-
velop the partnership relationship is helping them recognize the
strengths and weaknesses of their direct reports. From there, you help
them develop plans for capitalizing on the strengths.

Holding a Development Discussion

When should a manager talk about development with a subordinate?
Although often combined with a performance review, a fruitful devel-
opment discussion can be held anytime. It is often even more effective
when it is separated from the performance review process. However, in
today’s business world, making it part of the regular review is common
practice.
Either the manager or the employee can initiate the discussion.
Both will want to prepare some thoughts beforehand, and they need to
set aside adequate time for the discussion. They may want to complete
an assessment instrument, similar to those mentioned previously in
Smarts, so they have a common vocabulary around strengths.
A neutral location—not someone’s office, but perhaps a small
conference room, a restaurant, or other comfortable seating area—
emphasizes that both will be contributing equally to the conversation. If
done as part of the regularly scheduled review or goal-setting process,
the discussion may be in one or the other’s office, and it may take sev-
eral meetings to cover everything.
The manager begins by asking the employee how she sees her ca-
reer developing, what she would like to be doing that is different from
her current responsibilities, and how she sees her contribution to the or-
ganization in the future. The manager listens and encourages the em-
ployee to state personal goals and aspirations.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 217

Chapter 9 ◆ The Role of the Manager/Employee Relationship 217

C A R E E R D E V E L O P M E N T
C O A C H I N G

As a communication specialist in an organization of educators and health

professionals, Peg was in conflict about her future career direction—should
she abandon communications and pursue a health professional career?
Would she be able to add more value to the staff of the organization if she
had that nutritional science degree?
She approached her boss for consultation. Over lunch one day, they
discussed Peg’s strengths and her current role in the organization, possible
scenarios of future roles she might play, and how she might prepare for
those opportunities.
The director spent a lot of time asking questions and sharing her per-
spective of Peg’s strengths. The conversation resulted in Peg’s decision to
pursue a degree in adult learning and training, which was an area of inter-
est for her, and an area that would add valuable depth to the organization’s
staff abilities.
The director’s patience, her careful questioning, and her knowledge of
Peg’s strengths were invaluable in helping make the critical career decision.

The manager then contributes what she sees as the individual’s

strengths and discusses them with the employee. This leads to a joint
discussion of how those talents might be better applied in the work of
the organization. They may review the business goals of the work
group and the organizational goals and discuss how all may integrate.
The manager and employee may identify learning opportunities to be
incorporated into the employee’s development plan to help the em-
ployee prepare for more responsibilities and greater contribution to the
organization (see “Career Development Coaching”).

Determining a Course of Action

Developmental needs of each employee then are blended into the over-
all employee development plan and also with the goals and objectives
of the organization and the work unit. An effective way to do this is

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 218

218 AMA Guidebook to Management Development

with a learning contract, as outlined in The Knowledge-Enabled Organiza-

tion by Daniel R. Tobin5 and discussed in Chapter 1. Tobin specifies five
steps in developing a learning contract: (1) determining the company’s
business goals, (2) determining the business unit goals, (3) determining
individual employee goals, (4) assessing employees’ current knowledge
and skill levels and comparing to needs, (5) developing employee learn-
ing goals and contract.
The manager is responsible for knowing the company goals and the
business unit goals and for setting goals with each individual employee
for his or her contribution to the work unit. The manager and em-
ployee work together to agree on individual goals, work roles, and the
competencies required. Our previous discussion on identifying
strengths is a helpful exercise for step 4—helping both to see any gaps
that need to be filled, skills that need to be developed, and learning ex-
periences that will be helpful. (A variety of learning experiences will be
discussed later in this chapter as an example of how to prepare an indi-
vidual contributor to become a manager.)
The learning contract is unique to each employee and specifies
measures of learning achievement, how the learning will be applied on
the job, and the business results expected (see Figure 9.1).
The learning contract specifies the gaps identified, the learning
methods the employee will use, a schedule for the learning activities,
how the learning will be measured, how the learning will be applied to
the job, and the business results expected.
Too often, organizations fail to assess what was learned through a
development activity, unless there is certification involved. For all devel-
opment activities, the measures of learning must be applied to the em-
ployee’s job and specified in the learning contract. Managers must also
recognize that the application of what was learned will take time and
will require continued practice to master. The employee may need
coaching from the manager throughout the process. Because the con-
tract is directly tied to business goals, the learning activity should lead to
a positive change in business results as specified in the learning contract.

Preparing to Become a Manager

Perhaps the biggest development challenge is in helping to prepare an
individual professional to become a manager. It can be a daunting task
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 219

Chapter 9 ◆ The Role of the Manager/Employee Relationship 219

Employee: _____________________ Manager: ___________________

Period Covered: ________________, 20__ to _____________, 20__

Business Goal(s):

Employee’s role/responsibilities in meeting goal(s):

Competencies needed for specified role/ responsibilities:

Gap between current and desired competencies:

Learning Plan to Fill Gaps:

Methods:

Schedule for learning activities:

Measurement of learning achievement:

Application of learning to job:

Business results expected:

FIGURE 9.1 Sample Learning Contract

and requires thoughtful preparation, communication, training, and

coaching.
Once a manager identifies the employee’s strengths and examines
which skills need to be developed for the first-line manager role, there
are many developmental activities available to the manager to help im-
prove the employee’s performance and capabilities. There are formal
avenues like training—study programs, seminars, e-learning courses,
workshops, and conferences. And there are other avenues, less formal
and often overlooked, that are very effective in developing competen-
cies. Those include delegated responsibilities, coaching arrangements,
mentoring relationships, job rotations, and developmental assignments.
In most instances, a combination of learning techniques combined with
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 220

220 AMA Guidebook to Management Development

coaching is most effective in helping employees develop new skills and

competencies. Let’s take a closer look at these avenues.

Developing Skills and Competencies

Self-Study This learning pursuit is undertaken by individuals on their
own and may be as simple as a literature search online or e-learning
courses when they are asynchronous and involve individual learning
pursuits. You might recommend this to an employee when the individ-
ual needs to acquire facts or deepen his general knowledge and un-
derstanding of a topic. Self-study works best when the plan includes
follow-up discussions and/or opportunities to practice and use what was
learned. For example, if a person has never run a meeting, you might
recommend she research how to set an agenda, how to craft an e-mail
to notify potential participants, etc. Then you might delegate the task of
running the next staff meeting to this individual, coach her through the
process, and offer feedback after the meeting.

Formal Instruction This could be any class, seminar, workshop, or

conference—an event where the individual is involved with other learn-
ers and goes through a learning experience with them. Any one the
3,000 AMA public seminars offered during the year on a variety of the
professional skills or management topics would provide an interactive
learning experience and an opportunity to meet and learn with people
from a variety of industries. Of particular note: Several AMA courses
offer an online learning contract, along with pre- and post-assessments to
measure knowledge gained in the course (Level 2 evaluation). “Presenta-
tion Training” gives an example of an interactive learning experience.

Coaching This is an important technique for managers. Coaching of-

fers employees specific advice about how to do a task, providing feed-
back on performance, and, in many cases, assisting the employee in
discovering how to solve a problem or improve his own performance.
Coaching is an important element in all developmental assignments,
helping ensure the employee’s success in applying learning to the job.

Developmental Assignments Delegating tasks or projects and in-

volving employees in developmental projects are powerful ways to

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 221

Chapter 9 ◆ The Role of the Manager/Employee Relationship 221

P R E S E N TAT I O N S K I L L S
T R A I N I N G

Early in her career, Peg Pettingell was a communications consultant with a

nonprofit organization. Primarily responsible for news releases, press rela-
tions, press events, and slide show presentations, she had little experience
presenting in front of groups. In her yearly performance review, her boss
proposed that she attend a two-day seminar on presentation skills. The ex-
pectation was set that she would learn the techniques and share them with
the rest of the staff.
The training included eight videotaped presentations with individual
feedback sessions. Participants included directors (her boss’s level in the or-
ganization) and other communication specialists from similar organizations
around the country. When the session began with the assignment of intro-
ducing yourself by telling a humorous story, Peg was panicked. Luckily, she
survived the assignment. Through the subsequent training, she received
excellent coaching and valuable stress-coping techniques and ended up
thoroughly enjoying the training.
Coming back to the staff, she learned to operate a video camera and
designed a learning session complete with coaching feedback sheets for
partnering exercises. Peg conducted the staff training, and became the
“resident expert” on giving presentations for the organization. Her commu-
nication skills expanded, and the organization gained valuable training
while providing her with an opportunity to learn and grow not only her
presentation skills, but her training skills as well. Both of these areas played
a large role in her later career choices.

develop staff competencies and bring fresh ideas to projects. Most em-
ployees enjoy new challenges and see them as growth opportunities.
They welcome the attention it brings to their abilities and recognize
that it can help them progress in their career. Learning by working on
and contributing to a real-world project can be more exciting and in-
volving than attending a class or reading about someone else’s experi-
ence. In making such developmental assignments, you want to
recognize the need to stay involved, monitoring what is happening,

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 222

222 AMA Guidebook to Management Development

continuing to coach the individual, and providing any necessary sup-

port through the assignment. What might qualify as a developmental
assignment?

• Researching a new approach. One manager wanted information on a

new software package and asked an employee to do the research
and compare it to what was currently being used in the company.
The employee eagerly did the comparison and, once the decision
was made to purchase the new software, became the in-house “ex-
pert” for orienting other staff. Meanwhile, he learned how to evaluate
and compare the software packages with respect to the company’s
specific requirements–a valuable skill for future managers.
• Representing the work group on a cross-functional team. One manager
was asked to serve on a task force to streamline the internal sales
order-taking process and delegated the responsibility to one of her
customer service representatives, who brought a very practical ori-
entation to the project. The employee also gained a perspective of
how her unit fit into the overall process and met people who would
be helpful when questions arose. It also helped the employee start
to build her in-company network—something that would benefit her
when she later became a manager.
• Coaching other employees on a process the employee is particularly good at.
One employee might be assigned to train a new hire. Another
could share a method or technique he developed or perfected be-
cause it has proven to be more efficient than the method being used
by others. Not only does this benefit others, but helps the employee
develop his skills in innovation and personal leadership.
• Providing opportunities to present to higher level management in the organi-
zation. Rather than personally make your annual update at your
manager’s next staff meeting, you might bring an employee to share
one aspect of the job that she is doing particularly well. This visibil-
ity to upper management is an opportunity for the employee to
begin building rapport with higher-ranking people and gaining a
comfort level with them. This comfort level will be valuable as she
progresses up the management ladder.
• Recommending an employee for a temporary management assignment.
In one company it was a temporary assignment that gave the em-

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 223

Chapter 9 ◆ The Role of the Manager/Employee Relationship 223

ployee a “taste” of what it means to manage while another manager

was out on sick leave; in another instance, it was a “trial” to see if
the employee was indeed ready to take over, a temporary arrange-
ment that would become permanent if the employee did well in the
new role.
• Arranging for an employee to join another work group to learn how it does
something. One organization uses this method to increase under-
standing across functions and to develop people so they can fill in
when a crunch occurs in another part of the organization.
• Volunteering your group for a new assignment. This can be a learning
opportunity for the entire group, as well as a chance to showcase
your group’s potential abilities in a new area. An example of this is
shown in “The Web Newsletter.”

These are but a few of the many types of developmental assign-

ments you can use to help your employees grow their competencies
and their careers. All require managers to continue monitoring and
coaching employees as they go through the process. When you estab-
lish an assignment and specify a learning contract for the experience,
you should build in sufficient opportunities for the interchange, such as
weekly conferences, telephone updates, e-mails, etc., and make them
an integral part of the learning process.
You may also want to assemble a group of managers who are facing
the same developmental issues so they can share ideas and approaches
that are working or have worked for them in the past. Having regular
sharing sessions provides employees with opportunities to brainstorm
ideas on how to handle situations can be invaluable to them. Remem-
ber that employees can also learn a lot from each other.

Helping the Boss

For real development to occur, the organizational environment has to sup-
port it. Managers need to be comfortable encouraging employees to speak
up, to disagree, to press for their own needs, and to help in problem solv-
ing. If the manager listens to and encourages that kind of interaction, the
team, the individual employees, and the organization as a whole will ben-
efit. These guidelines hold true across all levels of the organization.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 224

224 AMA Guidebook to Management Development

T H E W E B N E W S L E T T E R

The service line of the consulting firm was expanding, and teams around
the globe were engaged in new and different types of projects. They posted
project results to the firm’s knowledge network, but lacked a vehicle to let
other teams know what was learned.
Sarah recognized an opportunity for her communication team to pro-
vide a valuable service and learn about web-based communication skills at
the same time. Team members wanted to expand their skills in this area,
but had not pursued it to date. Sarah volunteered her staff to design and
write a monthly newsletter highlighting special projects around the globe.
The newsletter would “advertise” the projects and point interested teams to
the in-depth project information on the knowledge network.
Sarah had to bring her team up to speed on web design and writing
for the web. She shared a resource publication and developed a protocol
for how the newsletter would approach the content. She then made assign-
ments and coached each individual through the first few issues, emphasiz-
ing the differences in writing in web-style, helping to format their work to
be brief, punchy, and compelling, yet full of the most significant
information on each project.
Within a few months Sarah had a viable newsletter up and running. It
was widely read by the 3,000 consultants in the service line, as well as by
employees in other service lines who had heard about the newsletter and
wanted to know what other teams were doing. Soon, project teams were
approaching Sarah to feature their project in the next issue. At the same
time, Sarah’s staff became known as accomplished web-communicators
and was asked to assist other groups as new web material was developed
for client sites.
Peg Pettingell

What is often missing in these conversations is how employees, par-

ticularly managers, learn to relate to and develop relationships with
their bosses. How to keep the communication going is a constant chal-
lenge. Everyone needs to reassure the boss that he knows what he is

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 225

Chapter 9 ◆ The Role of the Manager/Employee Relationship 225

doing. Managers need to think of what their boss needs to know and
tell her before she asks. Sincerity and integrity are valued. So is caring
about what happens in the work group and doing your best to use your
skills and expertise to best advantage. At the same time, managers need
to be open with their bosses about what they need to succeed.
Some general guidelines:

• Deliver bad news in the context of what you are doing to fix the
situation.
• Don’t join the fray of boss-bashing; instead always give your boss
credit for what he or she does well.
• Don’t lose your cool. When frustrated or angry, say so, but don’t
blow up or explode. Display your emotional intelligence. Avoid
whining. Focus on fixing things you want to change and ask for the
boss’s help in changing them. Bosses appreciate a positive focus and
will be more receptive to your ideas for improvements.

Summary
The partnership relationship between manager and employee redefines
the nature of the traditional boss-subordinate relationship and will be
much more acceptable to the new-age workforce in the years ahead.
Those who see this partnership, both upward and downward in an or-
ganization, as a growth opportunity for all will be favorably received
and will achieve the most success going forward.
The relationship between manager and employee is critical in de-
termining how to develop an employee. No one knows better than the
manager and the direct report what is needed and how best to accom-
plish the task. Development is needed at every level of the organiza-
tion, and people look above them in the hierarchy of the organization
for direction and support. Managers at all levels who receive good
support from their bosses are more likely to provide support to their
employees.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch09.qxp_SR 3/18/08 3:10 PM Page 226

This page intentionally left blank

6826ch10.qxp_SR 3/18/08 3:11 PM Page 227

C H A P T E R

10
The Role of the Organizational
Leadership

hat roles should the organization’s top leaders (here defined as

W the CEO and C-level executives) play in developing manage-
ment talent? We have identified six major roles for leadership to play in
developing managers.

1. Linking people to strategy and operations

2. Developing the leadership pipeline through continuous improve-
ment, succession depth, and reducing retention risk
3. Teaching in the organization’s management development programs
4. Dealing with nonperformers
5. Linking HR to business results
6. Building a positive learning environment throughout the organization

Linking People to Strategy and Operations

In too many organizations, strategy is determined at the top of the
house, by senior executives, perhaps with the aid of a strategic planning
group, who then publish these strategies in the broadest terms to the
general workforce. In many of these organizations, the great majority of
employees have only the most peripheral view of what these strategies
are and, worse, cannot tell you what their personal role is in helping the
company to achieve those strategies. As the old saw goes, if you don’t
know where you are going, any road will do. So employees keep doing

© 2008, AMACOM, a division of the American Management Association 227

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 228

228 AMA Guidebook to Management Development

what they have been doing, and do little to help the company achieve
its goals beyond doing business as usual.
In more enlightened companies, the strategy development process
involves as many employees as possible, from every level, every busi-
ness unit, and all locations. When this more inclusive planning process
is completed, employees better understand the organization’s strategies,
and the strategic plan becomes “our plan” rather than “their plan.” Em-
ployees throughout the company understand the strategies, what they
must do to help the company succeed, and through the company’s suc-
cess ensure their own success.
Jack Stack took this even further in his company, developing what
he called “The Great Game of Business.” Stack states his business phi-
losophy as

The best, most efficient, most profitable way to operate a business is to

give everybody in the company a voice in saying how the company is
run and a stake in the financial outcome, good or bad.1

Stack educated every employee in his company on how to read the com-
pany’s financial statements and on how the decisions they made in their
jobs affected the company’s financial results.
The role of organizational leadership is to lead the strategy develop-
ment process and then to align all parts of the organization with the
stated strategies. For short-term strategies (0–2 years), this may mean
moving people into new jobs and responsibilities or hiring from the
outside. In many successful companies, such as General Electric and
Honeywell, leaders such as Jack Welch and Lawrence Bossidy have es-
tablished a rigorous evaluation process for current managers/leaders
and those in the organization’s leadership pipeline. This process not
only measures key competencies, but also the business results that each
person has achieved.

Developing the Leadership Pipeline

Bossidy and Charan describe the need for a leadership pipeline:

Meeting medium- and long-term milestones greatly depends on hav-

ing a pipeline of promising and promotable leaders. You need to

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 229

Chapter 10 ◆ The Role of the Organizational Leadership 229

assess them today, and decide what each leader needs to do to be-
come ready to take on larger responsibilities. . . . Nothing is more im-
portant to an organization’s competitive advantage.”2

If this sounds like a lot of work for senior executives, it is—Bossidy

states that done right, the CEO will devote 20 to 40 percent of his or
her time dealing with issues of people and talent to ensure that the or-
ganization has the right people in the right jobs, while Jack Welch has
stated that he spent approximately 30 percent of his time as GE’s CEO
dealing with personnel issues.
Without the right people in the right jobs, change is improbable, if
not impossible, and the job of the leader, according to B. Joseph White,
is to effect change. “To be a great leader, you have to be successful at
achieving change–important, consequential change in the results for which
you are responsible. Making change successfully is a leader’s greatest
challenge.”3 And change is accomplished by people. Technology, for all
its capability and promise, can enable change (make it possible) and fa-
cilitate change (make it easier), but technology cannot cause change
(make it happen). People make change happen, and if you don’t have
the right people with the right skills in the right jobs, aligned with the
organization’s strategy, change will not happen.
Bossidy’s approach focuses the organization’s leaders on succession
planning for top positions and on development of a relatively small
pool of high-potential talent. He then requires organizational leaders in
various business units and geographies to conduct similar reviews and
write similar development plans that reach deeper into their own
organizations.
In his book, Bench Strength,4 Robert Barner distinguishes between
two types of talent development strategies: “foundation” strategy and
“capstone” strategy. A foundation strategy provides at least a minimal
amount of management development for all levels of management in
the organization. After all, it is a truism that employees “join organiza-
tions and leave managers,” so there is merit in ensuring that all man-
agers at all levels of the organization have a chance to learn and
develop basic management skills. A capstone strategy focuses attention
and resources on a smaller group of employees who have been identi-
fied as having high potential for future leadership positions in the com-
pany (typically at more senior levels and often tied to the organization’s
succession planning efforts).
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 230

230 AMA Guidebook to Management Development

There are advantages and disadvantages to both approaches, as

shown in Table 10.1. We believe that the wiser path is to develop an ap-
proach to management and leadership development that encompasses
both strategies, providing basic training and development for all man-
agers in the organization while providing a supplementary program for
those in the high-potential pool.
Whether you opt for a capstone strategy, a foundation strategy, or a
hybrid approach, it is important that these development programs have
the active participation of the organization’s senior leaders. For example:

• During Jack Welch’s reign as General Electric’s CEO, he was sched-

uled to teach in its leadership development programs several hun-
dred times, and he missed only one session—and that was when he
was hospitalized.
• At Amoco’s Management Learning Center, the company’s vice
chairman presented to, and held a discussion with, each class, re-
quiring his attendance one morning a week for forty weeks a year.
• When Larry Bossidy first took over as CEO of Honeywell, he spent
as much as 40 percent of his time on personnel issues and contin-
ued to spend 20 to 30 percent of his time on talent issues.

TABLE 10.1 Advantages and Disadvantages of Foundation

and Capstone Strategies
Talent Development
Strategy Advantages Disadvantages
Foundation Strategy • Provides at least some • Lessens the focus on
training and develop- top performers
ment for all managers
at all levels
• Sends the message • Requires a large
that good manage- investment to reach
ment and leadership all managers
skills are important
at all levels of the
organization
Capstone Strategy • Supports succession • Members of the high
planning for top potential group may
positions become elitist
• Helps retain top talent • You may overlook some
• Improves visibility of solid performers
top performers

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 231

Chapter 10 ◆ The Role of the Organizational Leadership 231

In each of these cases, the company’s top leadership didn’t just say
that developing employees is important, they demonstrated its importance
by taking the time from other responsibilities to devote to developing the
next generation of managers/leaders who would build the company’s fu-
ture. In too many companies, top executives abdicate this responsibility
to the human resources and training groups. While these groups can do a
lot to provide the training and tools to develop employees, as will be dis-
cussed in the next two chapters of this book, there is nothing that can re-
place the role of the company’s top executives in building what we call a
positive learning environment as we will discuss later in this chapter.

Teaching in the Organization’s Management

Development Programs
While the decisions made in the types of talent review sessions held by
Welch, Bossidy, and many other corporate leaders is important, these
sessions are not visible to most employees. To best demonstrate the im-
portance of developing the organization’s leadership pipeline, the orga-
nization’s leaders must make their commitment visible, and there is no
better way of doing this than by teaching, and participating in other
ways, in the organization’s management and leadership development
programs. As mentioned above, Jack Welch and other top GE man-
agers spent a significant amount of time teaching in GE’s leadership
development programs. When the organization’s leaders make them-
selves available in these programs, they demonstrate a real commit-
ment to the organization’s next generations of leaders and emphasize
the importance of learning.

Dealing with Nonperformers

If an organization is going to be successful, it must deal with people at
all levels who are not performing to company standards. Whether a
person is not performing because he has been promoted beyond his
level of ability, whether a person doesn’t have the competencies needed
for a particular job, or whether there are other factors involved, ignor-
ing such problems does not make them go away. Whether the solution
is to demote an individual back to a job where she had proven her
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 232

232 AMA Guidebook to Management Development

competence, to provide training or coaching to a person to improve his

competence, or to dismiss that employee from the company, nonper-
formance must be addressed if the organization is to perform at optimal
levels. These types of decisions are never easy, but they are a major re-
sponsibility of the organization’s leadership.
Too often, nonperformers are ignored and left in their jobs because
their managers lack the courage to deal with them. It is never easy to
tell people they aren’t making the grade, that they are going to be de-
moted or, worse, lose their jobs. But leaving a nonperformer in place
not only hurts the business, it also damages the morale of the people
who work for and with the nonperformer. How often, when after toler-
ating poor performance for too long, a decision has been made to ter-
minate such an employee, do leaders hear the many people who have
been performing well and taking the time to compensate for the lack of
performance of the poor performer say “What took so long?”

Linking HR to Business Results

In many organizations, the HR group is given sole responsibility for
developing the leadership pipeline and managing employee perform-
ance. Bossidy and Charan argue for a greater role in these processes
for the organization’s senior leaders. So where does this leave the
HR organization? Their answer is that it makes the HR organization
even more important. By linking these typical HR functions directly
to the organization’s business results, it makes HR “more important
than ever, but its role must change radically. . . . In this new role, HR
becomes . . . a far more powerful force for advancing the organiza-
tion than it was in its typical staff function.”5 In Chapter 11, we will
deal with this changing role of the HR organization.

Building a Positive Learning Environment

Throughout the Organization
An organization that has a positive learning environment (PLE) “en-
courages, even demands, that every employee at every level be in a
continuous learning mode, constantly searching for new ideas, trying
new methods, sharing ideas and learning with others, and learning from
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 233

Chapter 10 ◆ The Role of the Organizational Leadership 233

others, to find new and better ways to achieve individual, group, and
organizational goals.”6
Organizational leaders who become teachers and who create in-
dividual development plans to guide the learning of employees are
certainly consistent with this definition of a PLE. Additionally, organi-
zational leadership can promote the development of a PLE by:

• Modeling learning behaviors

• Actively seeking talent from every part of the organization
• Becoming mentors and coaches
• Encouraging creativity and innovation
• Helping employees learn from their own experiences, both positive
and negative

Modeling Learning Behaviors

Organizational leaders need to devote time to their own learning and to
make their learning visible to the rest of the organization. Some examples:

• Many CEOs and C-level officers spend time talking with major cus-
tomers. At one company the CEO, returning from a customer visit,
called a meeting of the product development group, telling them
what he had learned from the customer about how they use the
company’s products and the customer’s ideas for both new prod-
ucts and modifications of current company services, leading a dis-
cussion of future product and service directions. (It should be noted
that the CEO made it very clear that he was not issuing orders to
do what this customer wanted, but only opening up a dialogue
based on what he had learned. Many CEOs have learned from
hard experience that often when they ask a question, many employ-
ees consider it an order, and that was not their intention.)
• A vice president of engineering attended a conference and was very
impressed with the presentation of a new engineering technique
being used at another company in a different industry. Upon re-
turning to the office, he briefed his staff on what he had learned
and asked them to assemble a group of people to visit the other
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 234

234 AMA Guidebook to Management Development

company to learn more about the innovation and to see if their

company could benefit from adopting it.
• On a fairly regular basis, AMA CEO Ed Reilly will send out an arti-
cle he has read to various employees asking them to read it and
then discuss it with him: Is the topic of the article relevant to the
AMA’s business? What are we doing in this area? Is it worth our
learning more and adopting or adapting the recommended ap-
proach to our business?
• At Whirlpool Corporation, the company’s senior leadership estab-
lished a corps of innovation mentors and coaches to help employ-
ees develop and test new ideas.
• By encouraging cross-functional teamwork, international assign-
ments, job rotation, and building of technology-enabled employee
forums, organizational leaders can help to extend learning beyond
the classroom and encourage the cross-fertilization of new ideas.

In many organizations, the action learning projects being done as

part of high-potential leadership development programs are presented
to senior executives (and sometimes to members of the board of direc-
tors). This not only encourages participants in these programs to do
outstanding jobs on their projects, it also helps the senior executives
learn more about the ideas arising from lower-level employees with
whom they would not routinely interact. It gives the executives a better
view of the next generation of leaders from organizations and geogra-
phies not in their regular line of sight and sends the message loud and
clear that the development program and the results of the action learn-
ing projects are valued by the organization’s senior leaders.

Actively Seeking Talent from Every Part

of the Organization
Good ideas are not the sole province of any organization’s executive
staff, nor do all solutions have to flow from the organization’s head-
quarters location. If an organization hopes to develop the best manage-
ment and leadership talent, it must look to every part of the organization,
every functional area, every level, every worldwide location, as potential

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 235

Chapter 10 ◆ The Role of the Organizational Leadership 235

sources of talent, and must devote as much energy and attention to tal-
ent residing in remote locations as to that located at the organization’s
headquarters.
Very often, organizations that are hidden from the view of company
headquarters tend to run their own shows. The remote managers feel
that as long as they deliver results in terms of production, sales, profit
margins, for example, they can safely ignore any mandates from the
company’s headquarters. In some cases, this is the right way of running
things—especially for foreign subsidiaries where the working culture
and local regulations may be very different from that of the headquar-
ters country. But in most cases, this local focus may optimize local re-
sults, but hurt the overall organization. For example, local managers
may hide high-potential employees from the rest of the company for
fear of having them recruited away from the local operations. While
this may help the local operations in the short run, it may not benefit
the larger organization in the longer run.
While the executive team can conduct talent reviews for their direct
reports and perhaps one more level down into the organization, they
should also require that every functional area and geography conduct
similar reviews that reach deeper into their respective organizations.
We have seen many organizations “require” this type of action, but few
that tie measures and rewards to its accomplishment. Too often, as long
as an executive is “making his numbers,” the softer measures of man-
agement and leadership development are allowed to falter.
Remember—what gets measured and rewarded gets done. At one
company, where the CEO’s mandates for talent reviews and develop-
ment plans were stymied by mid-level managers, she issued an order
that any manager who did not fulfill these responsibilities would receive
no stock options for that year—that certainly got people’s attention.

Becoming Mentors and Coaches

By acting as mentors to more junior employees, organizational leaders
help educate those employees about the company’s history and culture
while learning more about the younger generation and encouraging
them to build their careers within the company. Preserving the organi-
zation’s culture and memory will become even more important over

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 236

236 AMA Guidebook to Management Development

the next decade when so many baby boomers will be retiring and
many organizations will have to quickly develop a new cadre of man-
agers from a younger generation.
Coaching generally involves a person’s direct reports. To properly
coach someone, the coach should be able to observe that person’s per-
formance on a regular basis. Coaching focuses on improving perform-
ance by helping the employee better understand what he doesn’t know
that he doesn’t know, i.e., areas of unconscious ignorance, as well as dis-
covering areas of competence of which the employee may not be aware
(unconscious competence). Coaching does not impose a solution, but
helps the employee to discover her own solution and to learn from her
own experiences, both good and bad. When the organization’s top exec-
utives do coaching themselves, they establish an expectation that coach-
ing will take place at all levels of the organization, and this certainly helps
to establish a positive learning environment throughout the organization.

Encouraging Creativity and Innovation

Throughout history, creativity and experimentation have been the orig-
inal forms of learning—trying out new ideas and methods to discover
what will work and what won’t work. Does your organization promote
creativity or stifle it? If you want to nurture creativity, you need to rid
the organization of phrases that block new ideas and replace them with
those that encourage them, such as those shown in Table 10.2.
You also need to break complex problems down into simple solu-
tions made up of manageable steps. FedEx executive Tom Schmitt and
his colleagues have written an exceptional book on the topic7 in which

TABLE 10.2 Changing the Nature of the Dialogue

Instead of saying . . . Say . . .
That’s a dumb idea. That’s an interesting idea. Tell us more.
That doesn’t sound feasible. How would you see that working?
That will never work here. How could we make that work here?
We’d need too many resources What resources would we need to make
from other parts of the organi- that happen, and how do you think we
zation to make that work. can get them?
You’ll never be able to do that. How can we help you get that done?

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 237

Chapter 10 ◆ The Role of the Organizational Leadership 237

they recommend asking simple questions that lead to simple solutions.

For example,

• What would have to be true for us to lower production costs for this
product by 50 percent?
• What would have to true for us to sign up 5,000 new customers
next year?
• What would have to be true for employee turnover to be zero?
• What would have to be true to produce accurate financial state-
ments within two days of month’s end?
• What would have to be true for customer service to respond to each
customer call within 3 seconds?

If your company’s leadership continually asks these types of ques-

tions, they will encourage employees and managers at all levels to keep
thinking about how to better manage the organization’s business, how
to keep employees and managers challenged and engaged, and how to
create the company’s and their own future.

Helping Employees Learn from Their

Own Experiences
Some managers are better than others in helping employees learn from
their experiences (see “Take Risks but Don’t Fail”). Many management
training programs include sections on how to hold a performance dis-
cussion with an employee who is not doing well. Most organizations
have detailed procedures that must be followed in a corrective action
situation, starting with counseling and coaching by the employee’s man-
ager, followed by a verbal warning, a written warning, and, finally, ter-
mination if the employee fails to correct his errant behavior or improve
his work product. A lot of this effort is mandated by the organization’s
HR group, which tries to protect the organization from wrongful dis-
charge lawsuits.
Much less time is spent in these types of programs on how to help
successful employees get even better at their work, even though re-
search has shown that this is a much better investment of the manager’s
time in terms of the expected results.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 238

238 AMA Guidebook to Management Development

“ TA K E R I S K S B U T
D O N ’ T F A I L ”

I once worked for a manager who encouraged his people to take risks to
help the business grow. If you took such a risk and were successful, you
were handsomely rewarded–promotions, stock options, large raises,
bonuses–all were available if you had a spectacular success.
But what if the risk turned out badly–you failed or your project wasn’t
particularly successful? If you were only partially successful, you might con-
tinue working in the group, but it would be clear, from the manager’s be-
havior, that you were no longer among “the favored few.” If you failed,
you were almost shunned by the manager, and it quickly became evident
that you should look for new employment outside the group. Depending
on your track record in the group, he might give you a decent recommen-
dation and a few kind words upon your departure.
So, who took risks in this group? The people who tempted fate were
those who had confidence in their own ideas and abilities, were willing to
bet that they would win, and felt that even if they failed they could find
work elsewhere.
But by instituting this (unwritten) policy, the group manager lost a lot
of opportunities for even greater success. First, there were many people in
the group who had great ideas, but weren’t willing to take a risk. Second,
those who took risks that were only partially successful were shut off from
the group manager and basically none of their future ideas were heard or
acted on. But most important, the group manager made it impossible for
the unsuccessful employee or others, including himself, to learn from the
failed or less than fully successful initiative.
Dan Tobin

When is the most common time that a senior manager will call for a
post mortem review of a project? The answer comes from the phrase
“post mortem,” meaning “after death”—it takes place after a disastrous re-
sult or an unsuccessful project. What went wrong? Why did you fail?
Too often, these types of reviews are used to assign blame, rather than
to learn from experience.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 239

Chapter 10 ◆ The Role of the Organizational Leadership 239

Learning has to be a continuous process–what did we learn from

any project, successful or unsuccessful? What can help us avoid disaster
next time, but also what went right that we want to build on? Even if a
project is successful, there is always something that can be learned to
ensure better results the next time. If you think back to the four-stage
learning model presented in Chapter 1, wisdom comes from adding ex-
perience and intuition to knowledge. Through “after-action reviews” we
can help people distill the wisdom they have gained from almost any
experience, be it successful or unsuccessful. And the key tool for distill-
ing this wisdom is dialogue.
What the manager in the “Take Risks But Don’t Fail” story lost
through his actions was the ability to learn from experience, both for
himself and for the employees who took the risks. There was never an
after-action review, even if the risk produced an exceptionally good
result.
In Chapter 3, we repeated the oft-told the story of the “million-
dollar mistake” by a high-potential at IBM. When Mr. Watson told the
employee that he wasn’t going to fire him because he had just invested
$1 million in his education, he should have followed that statement by
asking the employee what he learned from that mistake to see if IBM
had gotten value from the investment. This is why after every NASA
mission, successful or unsuccessful, the first post-mission activity is to
debrief the participants—to learn while people’s memories are still fresh.
Learning from one’s mistakes and successes is a vital part of a posi-
tive learning environment, and it is the organization’s top leadership
that must set the example by asking the questions to help employees,
and the organization as a whole, learn from experience.

Summary
For an organization to be truly successful in creating a management/
leadership pipeline, the organization’s leaders must create a positive
learning environment that fosters learning at every level. Further, they
must take a personal role in identifying and grooming future leaders,
making this a priority for senior executive meetings, and set an exam-
ple for learning and development by their own teaching, coaching, and
mentoring others.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch10.qxp_SR 3/18/08 3:11 PM Page 240

This page intentionally left blank

6826ch11.qxp_SR 3/18/08 3:12 PM Page 241

C H A P T E R

11
The Role of the Human
Resources Group

I want bigger margins than anybody else, and to accomplish this we

have to have great people and train them better and faster than
everybody else. We need to have educational programs that are focused
on key business issues and problems, the things that matter. HR’s role is
to help me solve these problems.
Larry Bossidy1

n today’s business literature, “talent management” is a very hot topic.

I It has been the subject of many global surveys, dozens of books and
articles, and many training programs. Some define it as succession plan-
ning; others as developing high-potential employees. Some companies
have invested millions in buying and developing systems to keep track
of talent.
Every company pays at least some lip service to the concept. Some,
like Larry Bossidy, see it as an executive responsibility. Others, such as
Ram Charan, Stephen Drotter, and James Noel writing in The Leader-
ship Pipeline, say that it is a responsibility of all levels of management,
starting with the board of directors and continuing down to the first-line
manager.
For many, talent management is the prime responsibility of the
human resources and training organizations within a company. In its
highlight report on talent management, the Institute for Corporate Pro-
ductivity2 paints an “ideal scenario” of the future where “talent manage-
ment becomes highly integrated and spreads to all levels of the
organization.”
© 2008, AMACOM, a division of the American Management Association 241
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 242

242 AMA Guidebook to Management Development

Talent management processes, tracking of talent, and talent-related

strategy are interwoven with business strategy and everyday manage-
ment functions. Functionally and philosophically, all the once-
disparate areas that comprise talent management have been brought
together. Talent management is an umbrella that covers recruitment,
retention, and engagement. Also, functions such as performance man-
agement, training and development, leadership development, and suc-
cession planning . . . have been wrapped into talent management.
These and other affected functions, such as workforce planning,
talent acquisition, and retention initiatives, are reciprocally tied into
talent management’s recordkeeping and reporting. Line managers and
HR personnel can easily see data on all aspects of talent management,
per employee or broken out by group. All the areas that affect talent
are part of a comprehensive talent strategy and are leverage[d] to
work together.3

University of Michigan professor David Ulrich defines the vital

roles that the HR group must play in any organization, and the HR
practices that will “ensure that people and organizations perform at
their best.”4 These roles include:

• Coaching Organizational Leaders: Ulrich argues that HR leaders

are in a prime position to coach the organization’s leaders on their
behaviors and their actions. “HR players are in the ideal position to
do executive coaching because they are outside the career politics
(e.g., not after the senior leader’s job), have training in the human
side of the business, which enables them to observe unintended
consequences, and offer insights not often shared with the business
leader.”5
• Acting as the Organizational Architect: “They help turn general and
generic ideas into blueprints for organizational action,” says Ulrich.
“They help identify choices not evident to the business leader about
how organizations might be better governed. They come to the
management meeting understanding business realities and organiza-
tions and ensure that dialogue . . . focuses on the right issues.”6
• Facilitating Action: Having a good blueprint is not enough. HR
needs to go beyond the role of architect and actually facilitate the
changes in structure and behavior defines by the blueprint. Ulrich
states: “HR facilitation has a legacy in organization development
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 243

Chapter 11 ◆ The Role of the Human Resources Group 243

work of HR. In OD work, HR professionals would help groups

identify their charter and then learn how to collaborate to accom-
plish their charter. While some of the traditional OD work has been
downplayed, the need to facilitate teams, organizations, and alli-
ances continues.”7

Key Roles of HR in Management

Development
There is no one model that will work for every organization. If there
were a perfect model, there would be one book on the subject, one
guru, and every organization’s HR group would support company lead-
ership in exactly the same way. Let’s focus some of the key roles that
the HR organization can play in terms of management development in
your organization. These include:

• Succession planning
• Identifying internal management talent
• Leading talent reviews
• Planning for developmental assignments
• Coaching

Please note that the topic of management training is covered in the

next chapter. In many organizations, management and leadership train-
ing are a function of the HR group, while in others they are the respon-
sibility of a separate training group.

Succession Planning
In many, if not most organizations, succession planning efforts encom-
pass only top-level positions–the CEO and other C-level officers and
perhaps the heads of major business units. While these are important
jobs for which to have succession plans, your succession planning
process should be aimed at creating what Charan and Drotter call a
“leadership pipeline.” The idea of a pipeline is that you want to keep
the pipeline as full as possible to ensure that your organization has the
management and leadership talent ready for any eventuality–a sudden
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 244

244 AMA Guidebook to Management Development

departure of a key staff member, a sudden surge in business, the acqui-

sition of another company, and so forth. This means that you have to
delve deeper into the organization in looking for talent, not only to pro-
vide for quick and orderly succession at the top of the organization, but
also to create a management and leadership infrastructure that will
carry the business forward over succeeding years.
One common error to avoid in succession planning is to model
each successor as a clone of the incumbent. This is all too easy to
do–you start looking for successors who match the competencies of the
person who currently holds the job. A better approach is to do a modi-
fied 360-degree analysis of each key job. Ask the incumbent what com-
petencies or qualities he or she feels are important to the job today and
which will be important in the future. Also ask board members (for
C-level jobs), peers, and subordinates to specify the competencies they
feel are and will be important to the job. The competency profile you
derive from this type of exercise may be very similar or very different
from that of the incumbent. This may not reflect the quality of the job
that the incumbent has performed, but rather that requirements change
over time. Several years ago, General Electric’s chief learning officer
talked about how different current GE CEO Jeffrey Immelt is from his
predecessor, Jack Welch. While Welch has become an icon of business
leadership, Immelt’s style and method of operation are very different.
The CLO stressed that this was not to say that one was better than the
other, but that both were very effective in their roles. In fact, he said, in
the history of General Electric, every new CEO has been very different
from his predecessor, and each person has been “the right one for the
business at that time.”
The second vital part of the succession planning process, beyond
identifying the competencies needed for each position, is to identify
candidates for each position, judge them fairly, and derive development
plans for each individual to prepare for eventual promotion.
The third vital factor in succession planning and management is to
extend the process beyond C-level positions. As stated by the Institute
for Corporate Productivity:

Managers at all levels of an organization have to look for talent, but

they are reluctant to give up their most effective employees. The fear
of losing these people is justified, as many companies move promis-
ing candidates into “developmental” positions. Colgate-Palmolive

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 245

Chapter 11 ◆ The Role of the Human Resources Group 245

identifies its future “stars” after their first promotion from an entry-
level position, and immediately puts them into a rotational program.
Employees on the leadership track at GE are expected to move every
two to three years. These rotational programs involve real assign-
ments, in contrast to short-duration exposures.8

Identifying Internal Management Talent

The leaders of many organizations measure management success al-
most exclusively on the basis of numbers: Did the business unit “make
its numbers” in terms of sales, profits, units manufactured, quality statis-
tics, and so forth? While most leaders pay lip service to the many com-
petencies identified as being critical to management success, they don’t
have regular opportunities to observe many of those competencies, es-
pecially those we identified in the categories of knowing and managing
yourself and knowing and managing others.
The HR organization, on the other hand, has a much more compre-
hensive view of many of these management competencies. HR works
with employees at all levels and sees and hears on a daily basis how
well managers are doing in managing themselves and their people. HR
hears employees’ complaints about their managers and conducts exit
interviews with employees who are leaving. They see, on a daily basis,
which groups are being managed well and which have higher-than-
average turnover, which individual professionals are excelling at their
jobs and are showing potential for management positions.
And while the organization’s top executives deal on a regular basis
with their direct reports, HR has a broader view into lower levels of the
organization. So, in many ways, HR is in a better position to identify man-
agement talent at all levels of the organization than are top executives.
All of these factors put HR in a prime position to identify manage-
ment talent throughout the organization and to lead talent reviews by
top executives. HR can identify candidates who may be “protected” by
their bosses—those who are producing numbers but may be hurting the
organization through their lack of communications and interpersonal
skills, and those with high potential for more senior positions but who
are hidden from top management because their managers don’t want to
lose the benefit of having them in their own groups.
This is not to remove responsibility for identifying talent from man-
agers at all levels of the organization. No one in the organization knows
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 246

246 AMA Guidebook to Management Development

an individual employee’s capabilities better than his or her manager.

But to make this work effectively, managers at all levels must be mea-
sured and rewarded, at a substantive level, on how well they choose
and develop their employees to prepare those with the greatest poten-
tial for higher-level positions.

Leading Talent Reviews

Talent reviews are formal meetings where the organization’s leaders re-
view the management talent in the organization and make decisions
such as:

• Who is ready to be promoted?

• What does the organization need to do to develop the next genera-
tion of managers and leaders? This can be done in terms of specify-
ing the types of training programs the organization wants to offer to
employees, but should also include critical reviews of each manage-
ment candidate and what each of those individuals needs to do to
prepare for his or her next management position.
• Which managers, at all levels of the organization, just aren’t work-
ing out as hoped? In some cases, the solution may be to provide ad-
ditional training or coaching to remedy problems. In other cases,
the recommendation may be to move the person to a different role,
while in the most extreme cases the solution may be to terminate
the person.

Doing thorough talent reviews is time consuming. Jack Welch has

often been quoted as saying that he spent up to half of his time as GE’s
CEO developing people. Larry Bossidy has stated that he spends up to
30 percent of his time on personnel matters. If your organization wants
to be effective in ensuring that it has the management talent it will need
to succeed, it must recognize that this is a vital function and demand
this type of attention from the organization’s senior leadership.
HR’s role in conducting talent reviews is to collect information on
each employee who will be reviewed and to present that information to
the organization’s leadership team in formal talent review sessions. A
common tool for collecting such information is the use of 360-degree
evaluations keyed to the management competencies most critical to the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 247

Chapter 11 ◆ The Role of the Human Resources Group 247

organization. An important point to make here is that data collected

through the 360-degree evaluations and the talent review process itself
should not be used to do a performance review, but rather should be
viewed as a tool to help plan for the development of the individual em-
ployee (see “The Numbers Don’t Matter”).

T H E N U M B E R S D O N ’ T
M AT T E R

On my first day of work at a high-tech company, I was called in by my

manager, the senior vice president of human resources, and given my first
assignment. “More than a year ago,” she told me, “we developed a plan to
do 360-degree evaluations for the top 150 people in the company below
the executive committee level. We have an evaluation form and a process
all defined. The problem is that Harry (the company’s founder and CEO)
has never felt comfortable with the project, so we never got started. I want
you to go see Harry, find out what his objections are, and solve the prob-
lem so we can get started on this.”
I made an appointment to see Harry the next day. “Have you seen all
of the e-mails I sent on this?” he asked me. No, I hadn’t. “Let me forward
them all to you. Read them and then we can get together tomorrow to
discuss them.”
An hour later, I had printed out all of his e-mails. Harry was an en-
gineer, and what he was trying to do was to perfect the formula. The
360-degree evaluation would yield a score of between 1 and 5 for each
participant (to two decimal places). Harry’s dozen or so e-mails dealt with
adjustments to the raw evaluation score. If a person had exceeded his goals
for the past year, should we increase the overall score by 0.25? If he had
missed his goals, should we subtract 0.2 from the score? Should we give a
fractional boost to a person’s score if she had been with the company for
more than ten years? There were more than twenty different suggestions
for these types of adjustments.
When I met with Harry the next day, he asked me my reaction to all
of his e-mails. “You make some very good points,” I said. “But what you
didn’t recognize in all of it is that the numbers don’t matter.”

(continued)

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 248

248 AMA Guidebook to Management Development

He was shocked by my statement. “What do you mean the numbers

don’t matter? Why are we doing all of this if not to generate a score for
each person?”
I replied: “Harry, let’s say that we were able come up with the perfect
formula and, at the end of the process, have a rank-ordered list of all 150
people, based on their weighted scores. The day after we complete the
project, a member of your executive staff leaves the company for whatever
reason. Will you look at the rankings and say ‘Person A has the top score of
all 150 people—4.63. The next person on the list has a score of 4.52 and
the rankings go down from there. Therefore, we will automatically give the
open job to Person A’?”
“Of course not,” Harry replied. “There are a lot of other factors that will
go into the decision on who gets the job.”
“So,” I said, “the 360-degree evaluations will give you some good in-
formation that can be used to evaluate candidates and to plan for develop-
ing people in their areas of weakness, but the overall scores don’t really
matter. There is no perfect formula that will take the place of your and your
team’s judgment.”
We started the project the next day.
Dan Tobin

At the conclusion of the talent review process, the HR group should

also work with the individuals identified as high potentials and their
managers to write a development plan for each person. This develop-
ment plan may include training, coaching, developmental assignments,
and other methods discussed elsewhere in this book.

Planning for Developmental Assignments

In Chapter 8 we discussed the use of action learning projects in devel-
oping management talent. Developmental assignments take this ap-
proach a step further by rotating high-potentials through a series of
assigned jobs to further develop their business acumen, familiarize
them with various aspects of the organization’s business, and, in the
case of international assignments, bring them an appreciation and un-
derstanding of the ways the organization conducts its business in differ-
ent cultures. The difference here is that the employee is assigned to a
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 249

Chapter 11 ◆ The Role of the Human Resources Group 249

real job for a period of a year or more, rather than adding an individual
or group project to his or her current responsibilities.
A number of large corporations do this on a regular basis. Earlier
we mentioned the General Electric and Colgate-Palmolive programs.
In other companies, a financial development program or a marketing
development program may rotate high-potentials through a variety of
assigned positions to enable them to learn the full breadth of each disci-
pline as practiced in the organization. At the same time, the organiza-
tion carefully watches each individual’s job performance to see that
each one is adaptable enough and learns quickly enough to take on
each new role and to ensure that employees are not promoted beyond
their capabilities.
The role of HR in this type of program encompasses a number of tasks:

1. First is the identification of high-potential employees who should be

considered for placement in the rotation program. As stated earlier,
many managers try to hide and hoard talented employees, rather
than offering them up to other parts of the business, and this be-
havior sometimes requires HR to take responsibility for candidate
identification.
2. Second, while the employee’s manager will monitor the results of
each assignment in terms of business goals, HR is often in a better
position to monitor the employee’s performance in terms of the
“softer” side of management responsibilities. And this type of feed-
back will prove invaluable when the organization does its talent re-
views and succession plans.
3. Third, HR can help executives identify opportunities for develop-
mental assignments. HR may know before company executives
when an employee is planning to take an extended medical or per-
sonal leave, thereby creating an opportunity for a developmental
assignment. And by monitoring the leadership pipeline, HR may
suggest internal candidates for open positions thereby saving the or-
ganization the time and expense of searching for an external hire.

Coaching
In an ideal world, managers at all levels of the organization would ac-
tively coach all their employees. But many times, managers do not have
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 250

250 AMA Guidebook to Management Development

the time, interest, or capability to act as the employee’s coach on all

possible issues. Certainly, in terms of legal issues such as discrimination
and harassment, HR is the logical place for an employee at any level of
the organization to seek coaching and advice. Further, because HR as a
profession is more attuned to “the people side of the business,” HR staff
can be effective coaches on communications and interpersonal skills, as
well as on HR processes such as performance reviews. Exactly which of
these coaching roles is right for your organization’s HR group depends
on a number of factors, such as how proficient managers within the or-
ganization are at coaching their employees themselves and the role that
your HR group has chosen to take within the organization.
One area in which your HR group should regularly provide coach-
ing is on development plans. For example, many commercially avail-
able 360-degree surveys generate individual reports that can exceed 50
to 100 pages. Your HR group should take responsibility, not just for ad-
ministering the surveys, but also for coaching employees on how to in-
terpret their personal reports and how to use them to plan for their own
development. And, further, by examining the overall survey results
across all employees, HR can counsel senior management on the needs
to stress competencies for which there are widespread low scores.

Developing General Managers at McKesson

McKesson Corporation is a $75 billion diversified healthcare company
that includes businesses ranging from pharmaceutical distribution,
hardware manufacturing, software products, and integrated data ser-
vices. Concerned with the need to develop numerous general managers
who could manage large segments of its business, McKesson defined
the general manager role to include “wide variations in accountabilities,
functions managed, and competencies required, ranging from:

• Leaders of stand-alone strategic business units . . . with accountabil-

ity for all facets and functions of their business, to
• General sales and distribution managers . . . to
• Product GMs, managing business strategy, complex product plan-
ning, and development and customer fulfillment.”9

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 251

Chapter 11 ◆ The Role of the Human Resources Group 251

The HR organization, working with the company’s executives, set a

series of objectives to guide the development of a proactive general
management program:

• “Differentiate the nature and scope of the varied kinds of GM roles

presently existing in the company.
• “Identify competency-based (and other) criteria for selecting leaders
into those varied roles.
• “Provide a rationale for effective movement of key talent through
experiences that grow GM leadership breadth and depth.
• “Assure that the education curriculum provided is clearly targeted
to the needs of general managers.”10

Through an intensive, highly structured eight-step process, McKesson

created a series of “development maps” for general managers to “pro-
vide a structure for top executives to use during talent management
sessions to guide development planning.”11 The process includes the
following steps:12

1. Engage top leaders in defining the nature of GM work and future

development needs in the business.
2. Use the archetypes model to define basic GM job families.
3. Define the intellectual complexity requirements, motivational pro-
file, and competencies needed in the GM job family.
4. Map current GM roles to the experiences grid: terms of scale versus
strategic complexity or other factors most critical to the business.
5. Map critical competencies to the experiences grid to demonstrate
which roles are most likely to develop them.
6. Adapt the development roadmap to guide effective talent move-
ment across the enterprise.
7. Adopt a set of principles to guide strategic talent management and flow.
8. Align all talent-management practices around the road maps and
experience grids.

An example of one of McKesson’s development roadmaps is shown in

Figure 11.1.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch11.qxp_SR 3/18/08 3:12 PM Page 252

252 AMA Guidebook to Management Development

Product/Market GM: Development Roadmap

Positions that Prepare People for the Role

• Product Manager
• Marketing Director
• VP, Sales (Med Surg or Similar)
• SVP, Customer Ops

Experiences Needed Selection Criteria Competencies Developed

Product marketing Influence (L4) in Role
Sales or sales management Strategic Thinking Influence (level 5)
Managed a team of professionals Leadership (L4) Decision Making/Judgment (L5)
Exposure to financial statements Decisiveness & One-McKesson Orientation
and/or budgeting Judgment (L4) Innovation & Risk-Taking
Strategic projects (corporate or Results Orientation Marketing Know-How
functional role) & Energy Building Organization & Talent

Potential Next Job Moves

• Larger Product/Market GM
Role with Operation
• SVP, Sales Ops or VP
Distribution Ops
• President Rx Pack
• President, Med Management

FIGURE 11.1 McKesson Product/Market General Manager: Development

Roadmap13

It should be noted that this type of talent management study re-

quires a huge commitment of time and resources. But even if your
organization cannot make this type or size of commitment, asking the
right questions regarding job roles, competencies, and development
plans is a primary role for your HR group in helping your organization
develop the management talent it will need for the future.

Summary
An organization’s human resources group plays a key role in develop-
ing managers for current needs and for the future. The relatively new
concept of talent management defines multiple roles for the HR group,
from recruiting new talent to developing existing talent to coaching em-
ployees at all levels to help them succeed. To do this, HR needs to bet-
ter understand the organization’s business, its future goals, and its short-
and long-term strategies. HR must become a true strategic partner by
demonstrating how “people issues” are keys to organizational success.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 253

C H A P T E R

12
The Role of the Training Group

n previous chapters, we have emphasized the key roles in manage-

I ment development as belonging to the employee and his or her
manager, the organization’s leadership, and the organization’s human
resources group. So what is the role of the training group?
We are past the point in time when the training group sat in a
corner of the human resources organization offering individual skills
courses out of a catalog or just provided an e-learning platform that
contained a menu of canned e-learning programs bought from a ven-
dor. While these roles will still exist to some extent, we need to redefine
the role of the corporate training group to better meet the management
development challenges facing the organization.
The competencies described in the first section of this book, for in-
dividual contributors and all levels of management, apply as much to
the members of the training group as they do to employees in every
other function of the organization. Training staff members need to un-
derstand the organization’s business and its major business processes,
just as all employees do. But they also need to work with the human re-
sources group and the organization’s leaders to better understand em-
ployees’ learning needs and how those learning needs apply to the
company’s business goals.
Members of the organization’s training group need to develop more
of an action orientation and view their roles as extending beyond the
classroom and the e-learning platform to the successful application of
learning to the employees’ work. People who have long called them-
selves “trainers” need to change their basic orientation and now think

© 2008, AMACOM, a division of the American Management Association 253

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 254

254 AMA Guidebook to Management Development

of themselves as learning facilitators, as described in Table 12.1 and

“Sharing Your Learning.”
This is not to say that learning facilitators should not provide
generic training programs on management skills as part of the organiza-
tion’s management development program. There is a definite place in
the management development program for such generic management
programs, especially when a group of employees has recently been pro-
moted to new management positions at various levels of the organiza-
tion. First-time first-level or mid-level managers need to get a basic

TABLE 12.1 Comparison of the Roles of Trainers and Learning Facilitators

Trainers Learning Facilitators
A trainer determines what others A learning facilitator helps employees
need to learn, develops a training identify their personal learning needs and
program to transmit the required assists them in finding ways to satisfy
knowledge and skills, and provides those learning needs.
the training.
A trainer develops training A learning facilitator provides a variety of
programs. learning methods to help the employee
meet personal and organizational goals.
A trainer presents the training he A learning facilitator enables individual
or she has developed. and organizational learning from a wide
variety of sources.
A trainer creates generic training A learning facilitator tailors learning
programs for large audiences. solutions to meet individual learning
needs.
A trainer is focused on the acqui- A learning facilitator is focused on the
sition of knowledge and skills. application of knowledge and skills to
the job.
A trainer is focused on the goals A learning facilitator is focused on
of the training program. the goals of the employee and the
organization.
A trainer’s responsibility ends A learning facilitator’s responsibility ends
when the employee leaves the when the employee has completed a
classroom or when he or she learning activity AND has successfully
makes available an e-learning or applied that learning to his or her work.
other self-study program.
A trainer measures success by A learning facilitator measures success by
how satisfied the employee is how effectively learning is transferred to
with the training experience. the job to make a positive difference in
individual and organizational business
results.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 255

Chapter 12 ◆ The Role of the Training Group 255

S H A R I N G Y O U R L E A R N I N G

Some years ago, I presented a session on “knowledge sharing” at a confer-

ence of training professionals. Just prior to my breakout session, there was a
general session given by a futurist who was a marvelous speaker in which
he presented many unique and valuable ideas.
I opened my session by asking how many people had attended the pre-
vious session. Almost all of the 200 people in my session raised a hand.
Next, I asked, “How many of you thought that the ideas that the speaker
presented could have value not just for yourself, but also for your organiza-
tion’s CEO and other organizational leaders?” Almost all the hands were
raised again.
Then I asked, “How many of you are planning to buy the speaker’s
book or a recording of the speaker’s session to give to your CEO?” Two
hands were raised from the 200 attendees.
The people in the room were training professionals, whose job was to
spread knowledge in their organizations. And yet only 1 in a 100 was going
to take this opportunity to do so. If they thought of themselves as learning
facilitators, rather than as trainers and training managers, many more
would have taken the initiative to share their learning more widely with
their organization’s leadership.
Dan Tobin

orientation to the responsibilities of their new jobs and the expectations

for their new roles within the organization and start building the skills
required to succeed in those new roles.
Some generic skills must be taught to all people involved in the
management development process. For example, if the organization is
introducing a new performance management system, all managers
need training on how to use the system. This type of training provides
an opportunity to also reinforce more basic management skills, such as
giving feedback.
There is also a role for generic e-learning programs on basic indi-
vidual and management skills. With the continuing pressure within

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 256

256 AMA Guidebook to Management Development

organizations to reduce time away from the job for training, there are
certainly ways of using e-learning to provide information on a wide
variety of knowledge and skill areas. At the same time, it should be
noted that e-learning programs do not provide the most effective train-
ing on behavioral skills or motor skills. For example, you can obtain in-
formation on how to ride a bicycle from a variety of media and watch
videos of people riding bicycles, but you cannot say that you can ride a
bicycle until you get on one yourself and practice. Similarly, there
are a number of vendors in the market who sell e-learning programs
on presentation skills. Certainly, there are some basic topics on organiz-
ing presentations, rules for creating visuals, and even demonstrations
of effective presentation techniques that can be provided through
e-learning. But most training professionals know that the most effective
way of improving presentation skills is for the learner to practice those
skills in front of a live audience and to videotape the practice sessions
so that each learner can view and critique his or her own performance.
Many organizations buy a library of e-learning courses on various
business, professional, and management skills and make them available
to all employees as a supplement to live training. In this way, when there
are no classroom sessions available, employees who need to immediately
learn about a given topic at least have a resource they can use. It may not
be as effective as an instructor-led class, but at least it is something that
can help the employee. It is also a way to enable employees to explore
learning topics that are beyond their current responsibilities—for example,
it is a way for individual contributors to start learning about management
skills before they become eligible to enroll in a management training pro-
gram, or for a first-level manager to start learning about the strategic
planning process even though people at this level don’t have responsibil-
ity for strategic planning. Many global organizations also like to make
these types of e-learning programs available to employees in countries
where the number of staff is too small to justify bringing a live training
event to that country. By providing a library of e-learning courses to these
remote employees, the training group can make at least some learning re-
sources available to all worldwide employees.
But despite the enthusiasm of some e-learning zealots, it is not true
that all types of training can be done via e-learning just as or even more
effectively than in a classroom. We have seen examples of e-learning
companies that sell their services, saying that they can take any class-

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 257

Chapter 12 ◆ The Role of the Training Group 257

room program and convert it to e-learning with the promise of the

same or better learning outcomes. A common erroneous assumption
made by many companies is that they can take a week-long classroom
program, convert it to e-learning, and magically eliminate the need to
have employees spend any time taking that training. Perhaps in the far
future, when we implant chips in employee’s heads and download them
from the Internet, this might be possible, but today, this is the work of
science fiction, and the few science fiction stories that have included
this strategy in their plot lines almost always end in disaster.

New Roles for the Training Group

To effectively develop managers, there are a number of new roles and
methods that the AMA recommends for organizational training groups,
including:

• Training employees and managers on their respective roles in the

management development process.
• Developing learning guides to help employees and their managers
identify the full range of internal and external development meth-
ods and opportunities available to them as they write the em-
ployee’s development plan and learning contract.
• Coaching employees and managers on how to find and utilize this
wide variety of learning resources and methods.
• Customizing externally sourced training.
• Working with company management to define and oversee action
learning projects.
• Following up beyond the classroom or e-learning platform to help em-
ployees apply their newly acquired knowledge and skills to their jobs.
• Taking a more active role in the classroom and reinforcing learning
by challenging employees when they are not actively applying what
they have learned.

Training on Roles in the Management

Development Process
Throughout this book, we have described how an organization’s man-
agement development efforts require new roles for employees and their

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 258

258 AMA Guidebook to Management Development

managers, for the organization’s leaders, and for the human resources
group. A prime role for the training group is to help all of these players
learn about, and acquire the knowledge and skills required, for these
new roles. Some examples include teaching

• Managers how to hold development discussions with their employ-

ees who aspire to management.
• Coaching skills to managers at all levels of the organization.
• Human resources staff and managers at all levels of the organiza-
tion about the wide variety of learning methods and activities avail-
able to help develop management talent and how to choose among
the many alternatives.
• The organization’s leaders how to interpret results of 360-degree
reviews to evaluate management talent and what to do with the re-
sults of such reviews.

Developing Learning Guides

It is no longer sufficient for your training group to publish an annual cata-
log of the courses you offer to employees. When your responsibility was
simply to provide training, it was enough to let people know what semi-
nars you were offering when and where and how to enroll. But in your
role as a learning facilitator, your responsibility extends beyond the formal
programs you offer in your classrooms to include e-learning resources,
reading lists, directories of expert resources both within and without your
organization, and the pointers to other learning opportunities as described
throughout this book. To do this, you must widen your own learning re-
source networks both internal and external to your organization.
You also have to decide on which methods you want to recom-
mend. For example, which of the 200,000 book listings on Amazon.
com on the topic of leadership do you want to recommend to your or-
ganization’s employees? If they want to learn the “secrets of leader-
ship,” there are books promising such secrets from exemplars of
leadership ranging from Attila the Hun to Colin Powell, from Billy
Graham to Santa Claus, from H. J. Heinz to Jack Welch, from Abe Lin-
coln to Elizabeth I. Rather than letting your employees randomly
choose their own learning paths, your learning guides should reflect the
leadership philosophy of the organization.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 259

Chapter 12 ◆ The Role of the Training Group 259

The learning guide may also offer tips on how to find a coach or a
mentor within the organization, how to tap into an internal community
of practice, or how to join the national or local chapter of a local profes-
sional society. It could include a calendar of events, including not just
your training schedule, but also of local meetings and training events of
interest, relevant college courses offered locally, and so forth.
The learning guides should open the eyes of employees and man-
agers to the many learning opportunities that are available to them,
beyond the organization’s formal training programs, and help them
plan for their own and their employees’ development.

Coaching Employees and Managers

on How to Identify and Use Learning Resources
As managers work with their employees who aspire to a management
career, the training staff can coach those managers on how to identify
and use a wide variety of learning resources to help prepare employees
for those careers. Management development will no longer be limited
to sending employees to an internal or external management training
program, but may include a wide variety of developmental activities
and assignments that can help employees test their interest in a man-
agement career, prepare newly assigned managers for their newly ac-
quired responsibilities, and improve the skills of existing managers. The
learning guides we just discussed can be a great resource for this pur-
pose, but if the organization has always relied on the training group to
provide guidance on which courses to take, it will take time, and coach-
ing from your training group, to teach them how to choose from and
best utilize this vast array of learning resources and methods.

Customizing Externally Sourced Training

Many organizations purchase training programs from external vendors,
such as the AMA, and have the vendors’ faculty conduct the training
programs. This represents a substantial portion of AMA’s business. In
many cases, the program is bought intact, i.e., the organization may
have had one or more people attend an AMA public program and
found it so valuable for those people that they decide to bring it in-house
to reach a wider employee audience. In those cases, the AMA sends the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 260

260 AMA Guidebook to Management Development

materials to the organization and an AMA faculty member arrives to

teach the class just as it was taught in the public seminar setting.
In many other cases, the organization purchasing the training pro-
gram from the AMA will ask us to customize the program for them.
Some examples:

• For a Fundamentals of Finance seminar, the organization may

ask the AMA instructor to use the organization’s own financial
statements as examples in the class so that participants develop a
better understanding not just of financial principles, but also of the
organization’s own financial position.
• In teaching a class for first-time managers, the organization may ask
the AMA instructor to include the organization’s own performance
management forms in the section on doing performance reviews.
• In teaching a class on making sales presentations, the organization
may ask the AMA instructor to have participants practice their own
sales presentations, rather than using generic examples.

As learning facilitators, your training group should work with exter-

nal vendors to ensure that, as much as possible, their generic training
programs are tailored to your company’s specific learning requirements
and business goals.

Defining and Overseeing Action Learning Projects

We have advocated the wide use of action learning projects for both in-
dividuals and teams as a method of management development. Your
training group can work with your organization’s management and
human resources staff to define and structure these projects to maxi-
mize both the benefits to the company and learning by the participants.
For example, the training group might write a guide to working on an
action learning project, develop templates for reporting progress on
those projects, and develop an action planning booklet to facilitate the
employees’ transfer of their learning into their regular work roles.
Further, your learning facilitators can act as coaches to the partici-
pants in these action learning projects to help them succeed and to trans-
fer the learning from the projects to their regular jobs. For example, if
the action learning project involves a team of employees, a learning
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 261

Chapter 12 ◆ The Role of the Training Group 261

facilitator may attend some team meetings and provide just-in-time learn-
ing on topics ranging from running meetings to team problem solving
techniques to how to ensure involvement of all team members in the
project.

Following Up to Ensure Application of Learning

In the old training paradigm, the responsibility of trainers ended when
the training session ended. With the AMA’s recommended approach,
the learning facilitator’s responsibility continues beyond the formal
training activity to help ensure that learning is transferred to the partici-
pants’ jobs. When employees are in an internal or external classroom,
taking an e-learning program, or conducting self-study, they often don’t
know what questions to ask because the material is new to them, and
they have never tried to use what they are learning in their jobs. When
they return to their jobs and try out their newly acquired knowledge
and skills, new questions will inevitably arise. Your learning facilitators
can help speed the application of learning to the job by scheduling a
formal follow-up session several weeks after the completion of the se-
lected learning activity and being available to employees to answer
their questions on an as-needed basis—for example, through holding
regular “office hours” when they will take calls, by promising a 24-hour
turnaround on e-mail inquiries, or by monitoring a participants’ discus-
sion forum.
At the AMA, we have begun to hold virtual follow-up sessions for
selected seminars. Several weeks after participants complete an AMA
seminar, they are invited to participate in a web-based conference with
the instructor. In this session, the instructor may reinforce learning, ask
the participants to report on the progress they have made in imple-
menting what they learned in the formal classroom, lead a discussion of
challenges the participants have faced as they have implemented what
they learned, and answer participants’ questions–especially those ques-
tions that they didn’t even know to ask when they were in the class-
room. Your organization’s internal training group can provide a similar
service for in-house training programs and work with external vendors
to arrange for the same type of follow-up for externally sourced train-
ing. Feedback from such sessions may also be incorporated into the
original seminar—for example, if most participants have experienced
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 262

262 AMA Guidebook to Management Development

difficulties in applying one particular piece of learning, it may be ad-

vantageous to revise that portion of the original seminar. You can also
use this type of follow-up exercise to help participants form an internal
network for exchange of tips and other information, enabling employ-
ees to coach each other on what they have learned and their experi-
ences in applying that learning on the job. This type of activity, usually
supported by an intranet-based discussion board, can also help employ-
ees extend their personal networks within the company beyond the
limits of their functional silos or their geographic bounds.

Challenging Employees to Apply What They

Have Learned
Learning facilitators need to take more responsibility for ensuring that
the content they deliver actually results in the desired behavioral
change. This means that they have to extend their view from what hap-
pens in the classroom to what will subsequently take place when the
training participants return to their jobs. This can be difficult to accom-
plish and may move your training staff outside their zone of comfort.
“Team Training” describes a training scenario.
The trainers in this true story knew that they could conduct the
training program they were hired to do, but they also knew that no
matter how good the instruction they provided, there would be no
change in the participants’ behavior back on the job. They therefore
took it on themselves to challenge the group’s manager–something that
most trainers would not see as part of their job description. In this case,
the participants’ behavior was not going to change unless their man-
ager’s behavior changed first. In other cases, the trainer may sense that
the behaviors he or she is seeking to change just aren’t being accepted
by the training participants themselves (see “I Want to Fail Them All”).
In this story, the college instructor could not do what she felt was
right, because it wasn’t her job to change the students’ long-held preju-
dices. But in a corporate setting, the responsibility of the learning facili-
tator is different. If the learning facilitator finds that the employee’s
beliefs, attitudes, or behaviors may cause harm to the organization, she
must take responsibility to challenge the participant. If this relates to a
manager’s bigotry or sexism, and the manager is allowed to continue
with prejudicial and unfair attitudes and practices, the organization can
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 263

Chapter 12 ◆ The Role of the Training Group 263

T E A M T R A I N I N G

I once met two trainers from a Fortune 500 company. Their specialty was
training of intact work teams on how to better function as a team. They
had recently received a request from the head of an information technol-
ogy group to give their three-day program to that manager’s team.
On the first morning of the training, they started out by asking: “What
is your greatest challenge to working together as a team?” There was no
response.
Then they asked: “What do you like best about working as part of your
team?” Again, there was no response.
Next, they asked: “What are your team’s goals?” No response.
Finally, they asked: “Do you think of yourselves as a team?” One partici-
pant bravely spoke up: “We aren’t a team. We’re a bunch of people who
work for the same manager, each on our own tasks as assigned by our
manager. We don’t have team goals, just individual projects. We’ve never
met together as a group, never mind as a team, before today.”
Many trainers at this point would have continued to teach their three-
day program, telling the participants how much more productive they
could be if they functioned as a team and telling the participants to get
from it as much value as they could. But these trainers understood that un-
less the manager started treating her employees as a team, they would
never be a team, so they did something that most trainers wouldn’t dare to
do–they sent the entire group back to their offices and went to meet with
the manager to explain that if she wanted her employees to work as a
team, she needed to treat them as a team, and that before she could send
her employees to team training, she would have to attend a team leader’s
training program.
Dan Tobin

be held legally liable for the actions of the manager. Even if the prob-
lem behavior is not a matter of law, the learning facilitator must chal-
lenge participants who are blatantly (or even covertly) violating the
company’s standards. The problem could be with communication
styles, interpersonal behaviors, or writing performance reviews—no
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 264

264 AMA Guidebook to Management Development

“ I WA N T T O F A I L
T H E M A L L ! ”

For a number of years, I taught in a graduate management program for

working adults. One day, I received a call from a newer faculty member
whom I was mentoring.
“I’ve got a problem,” she said. “I’m teaching a class on diversity, and I
want to fail everyone in the class.” She explained that she was teaching the
class in a small industrial town and that the students were all from the area,
which had union-dominated blue-collar industries and few minorities.
I asked if her students were meeting the requirements of the class.
“They’ve done all the required work, written all the papers, made all the
presentations. But they’re a bunch of bigots!” she told me. “Not one of
them deserves to pass the course.”
I explained to her that it was unlikely that she would be able to change
lifelong beliefs over the course of eight weekly classes. “If they’ve met all
the requirements, you don’t have any choice but to pass them,” I told her.
“But they’re a bunch of bigots!” she shouted. “They don’t deserve to
pass a class on diversity!”
“I understand what you are saying,” I told her, “but from the college’s
point of view, they’ve met the requirements. And even though the college
faculty and administration would support your conclusions, they would feel
that they had to pass them all if they met the requirements of the course.
The problem with their bigotry is not yours to solve–it belongs to the stu-
dents, their families, their community, and their employers.”
Dan Tobin

matter what the subject, the reason the company is providing the train-
ing is so that employees will conform to company standards, and if it
becomes clear in the classroom that an employee is not willing to do so,
it is the responsibility of the learning facilitator to challenge the em-
ployee and, if necessary, report the problem back to the employee’s
manager or to the HR group for further action.
This is not a common behavior for trainers, and it may be very un-
comfortable and difficult for them to do, especially if the offender is of a
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 265

Chapter 12 ◆ The Role of the Training Group 265

higher rank in the organization than the trainer. Before trainers can feel
confident in doing this, they must feel assured that their actions will be
backed up by their own management, by the HR organization, and by
the company’s leadership.

The Shoemaker’s Children

There is an old tale of the shoemaker who is so busy making shoes for
his customers that his own children go barefoot. Similarly, many train-
ing groups are so focused on the learning needs of their customers that
they fail to recognize and act on their own learning needs. To be suc-
cessful in making the needed transition from training to learning facili-
tation will require learning and reorientation of many trainers, and
training managers, who have lived with the old model for many years.

A Note on Evaluating Training Groups

A number of training associations and consultants, including Training
Magazine and the American Society for Training and Development,
publish annual statistics on training within organizations. Some typical
statistics that these surveys collect and compare on a year-to-year basis
include:

• Company expenditures on training, overall and per employee.

• Number of days of training per employee per year.
• Number of trainers in the organization, total and per employee.
• The ratio of in-house versus external training expense.
• The percentage of the training budget spent on classroom training
versus e-learning.

The challenge of trying to interpret these statistics is that they tell us

nothing about the effectiveness of the training, whether the right people
are receiving the right training, and whether they are actually applying
it to their work to improve business results. In The Knowledge-Enabled
Organization,1 Daniel Tobin asserts that more than half of the money
spent by organizations on training programs is wasted because what the
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch12.qxp_SR 3/18/08 3:13 PM Page 266

266 AMA Guidebook to Management Development

employees learn in those programs never gets applied to their work.

But these are the statistics that are collected, because they are relatively
easy to measure. Albert Einstein once said: “Not everything that can be
counted counts, and not everything that counts can be counted.”
Will the changes recommended in this book on how organizations
should develop their management talent increase spending? Probably.
But following these recommendations will also ensure that the organi-
zation has the management talent it needs to help the company survive,
grow, and prosper. The use of the learning contract described in Chap-
ter 1 will ensure that the learning employees undertake will be tied di-
rectly to organizational, team, and individual business goals, and that
what gets learned also gets applied to the employees’ work to make a
positive difference in business results.

Summary
In order to meet the ongoing need for management and leadership de-
velopment, the role of the organization’s training group must change.
Rather than thinking of themselves as trainers whose responsibilities
end once the student leaves the classroom or completes an e-learning
program, members of the training group must redefine themselves as
learning facilitators. Learning facilitators work with employees from the
time that a learning need is defined to the time when it is successfully
applied to the employees’ work. Successful learning facilitation is not
measured by how many employees completed a class or how many
hours of training are provided to each employee, but whether employ-
ees at all levels are able to meet their individual, group, and organiza-
tional goals.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 267

C H A P T E R

13
The Future of Management
Development

ow will future efforts at developing management talent differ from

H those that are used today? What will be the effects and require-
ments of the looming shift in the age cohorts within organizations? Will
technology advances change the way that management development
happens? How will the roles of organizational leadership and human
resources and training groups change over the coming years?
In this final chapter of the AMA Guide to Management Development, we
will try to address these questions based on the AMA’s own experience
as well as the views of a number of management thinkers and consult-
ants with whom we have conferred.

Changing Demographics and the Loss

of Corporate Memory
In 2006, the United States reported that over the course of the last cen-
tury, the number of people aged 65 and over grew from 3.1 million in
1900 to 35 million in 2000.1 Globally, it is predicted that by 2050 more
people will be over the age of 60 than under the age of 15. These popu-
lation shifts will impact the future workforce.
The U.S. Bureau of Labor Statistics predicts talent shortages as the
baby boomer generation retires. Walter McFarland and Kate Morse of
Booz Allen Hamilton report:

Facing a shortfall of as many as 10 million workers, the U.S. workforce

will encounter a talent drought of epic proportions by the end of the
© 2008, AMACOM, a division of the American Management Association 267
www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 268

268 AMA Guidebook to Management Development

decade, according to the Bureau of Labor Statistics and the Employ-

ment Policy Foundation. A recent survey of 150 Fortune 500 compa-
nies found an average expectation of 33 percent turnover of execu-
tives within the next five years, while one-third do not believe that
they will be able to find suitable replacements.2

While many organizations are focused on the need for succession

planning and leadership development programs in order to replace
senior executives who will retire in the coming years, the loss of knowl-
edge that these executives will take with them as they retire is only the
tip of the iceberg. Stefanie Smith3 discusses other problems that will in-
evitably arise from the loss of knowledge and corporate memory:

They are the programmers who know the intricacies of computer net-
works and legacy integrations. They are the salespeople who have sus-
tained relationships with key customers over decades. They are the
accountants reporting to the controller who know how complex ex-
penses and transactions are classified for the auditors. They are the ad-
ministrators who know how to handle recordkeeping that appears
arcane and intricate to the executives to whom they report.

These types of knowledge are tacit in nature and, as explained in

the four-stage learning model presented in Chapter 1 of this book, can-
not be taught in the classroom, but can be transferred through dialogue
and discussion of the older generation of employees with the younger
generations. This reinforces the arguments made in Chapter 10 con-
cerning the role of organizational leadership in developing managers—
only by actively participating in management development programs,
including classroom training, coaching, and mentoring, can the organi-
zation’s older generation of leaders effectively transfer their tacit knowl-
edge to younger generations.

The Rise of Technology

The younger generations have grown up using technology. They con-
stantly use instant messaging (IM) from their computers, their cell
phones, and their Blackberries. They play complicated games in virtual
worlds. They use these electronic communication methods to build and
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 269

Chapter 13 ◆ The Future of Management Development 269

maintain incredibly large personal networks. Having grown up watch-

ing Sesame Street, they become easily bored if they do not have some-
thing new and exciting to view on a continuous basis, so they can easily
become bored with the repetitive tasks of many entry-level jobs and fre-
quently change jobs and employers to find new challenges. They do not
fear the next generation of technology, as do many in older genera-
tions, but eagerly await it and become impatient if the organization is
slow to introduce technical innovations. They rely on the Internet, on
Wikis, and discussion forums to quickly find answers to their questions,
and they welcome this type of collaboration.
But can all of this technology replace traditional, instructor-led man-
agement training? Some e-learning zealots have claimed that
e-learning is always more effective than instructor-led training, and there
are a number of companies whose business is converting instructor-led
training to e-learning. And many companies have jumped at the chance
to replace centralized instructor-led training to e-learning because of the
opportunity to reduce costs—no more travel expenses, no more instruc-
tor salaries, no expensive classrooms to maintain. But many of these
companies have made some poor assumptions about e-learning and
have learned difficult lessons because of those false assumptions, such as:

• Anything that can be learned in the classroom can be learned online.

E-Learning is best at transmitting factual knowledge, but less effec-
tive at building skills. So, while e-learning can be effective in teach-
ing people the basics of reading a financial report, it is much less
effective at teaching presentation skills or interpersonal skills.
• Converting instructor-led training to e-learning means that employees do
not need dedicated learning time. We have seen many companies that
have converted a five-day classroom program to e-learning and
then assumed that employees no longer need dedicated learning
time—they can learn it on their own time, when they have a lull in
their work or access the e-learning program from home on week-
ends and evenings. There have been successful court suits where
exempt employees have claimed that employers are forcing them
to dedicate many hours away from the office to learn work-related
information and skills, and they should be paid for this time. Also,
many younger-generation employees are seeking a better work–life
balance than the older generations and resent being required to use
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 270

270 AMA Guidebook to Management Development

their leisure time on work-related learning. There is also an impor-

tant dynamic that takes place in a dedicated classroom where the
instructor and the students are focused on a specific learning
agenda for an extensive period of time. This dynamic cannot be ef-
fectively replicated with short bursts of e-learning.
• Statistics on the rate of return of e-learning don’t generally focus on the right
part of the ROI equation. Many studies have been done that show that
there is a great rate of return on investments in e-learning. Rate-of-
return analysis, at its simplest, is the ratio of benefits to costs: ROI =
Benefits/Costs.4 Most of the ROI studies of e-learning have focused
on the reduction of costs, which will always raise the value of this
ratio. Throughout this book, we have emphasized that organiza-
tions should focus on the benefits of management development,
and most e-learning ROI studies have assumed that benefits will re-
main constant while costs are reduced.

This is not to say that management development in the future

should not take advantage of new technological applications that can
further the management development effort. For example, the Ameri-
can Management Association has already introduced several technology-
based supplements to selected programs:

• For most of its top-selling programs, AMA-Complete offers

computer-based pretests and posttests (to measure knowledge acqui-
sition) as well as tune-up courses that reinforce learning from the
classroom experience. We also offer other online resources, includ-
ing supplementary materials and online tools for selected programs.
• AMA’s recently introduced seminar designed to build business acu-
men is centered on a sophisticated business simulation that helps
participants learn about the interrelatedness of business functions in
planning and operations.
• AMA has created its first online community to serve people who
have taken its MBTI (Myers-Briggs Type Indicator) programs. This
community also includes a series of blogs.
• AMA has started to offer virtual follow-up sessions (VFS) to its corpo-
rate customers to help reinforce classroom learning and to assist
learners as they apply their learning after their classroom experience.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 271

Chapter 13 ◆ The Future of Management Development 271

• AMA has started a very successful series of webcasts and podcasts

to inform participants of new trends and ideas in the management
field. Because these sessions are limited to 60 to 90 minutes, they
are used to inform people, rather than to train them.

While many of AMA’s technology-based applications are designed

to appeal to more tech-savvy learners, we also recognize that the
younger generation’s reliance on technology as their primary means of
communication has also created other problems in the workplace. Sev-
eral years ago, AMA introduced a new program titled “How to Com-
municate with Diplomacy, Tact, and Credibility.” This seminar was
originally planned as an advanced-level communications program for
people who were already good communicators but wanted to hone
their skills, but this was not the audience it attracted. We found that
many organizations were sending to this seminar relatively young em-
ployees who, although they had excellent technical skills, were poor
communicators who tended to offend others with their bluntness.
Rather than seeking out this seminar, many of the participants were
sent to the seminar and had no idea why they were sent—they had no
idea that their interpersonal communication skills were lacking or that
others in their workplace found their communication styles offensive.
We quickly redesigned the seminar to meet these needs, and it quickly
became one of the AMA’s top sellers.
So evolving technologies will continue to expand opportunities for
collaboration and knowledge sharing, it cannot totally replace formal
learning experiences, whether in the classroom or on the job.

Rapid Management Development

Through Action Learning
Because of the rapidly changing demographics of the workforce ex-
plained earlier in this chapter, there is a great need to accelerate the de-
velopment of younger generations for more senior management and
leadership positions. While there will always be a need for formal edu-
cational programs to help prepare these younger employees for these
responsibilities, action learning will become an increasingly important
method of development.
© 2008, AMACOM, a division of the American Management Association
www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 272

272 AMA Guidebook to Management Development

In Chapter 8, we discussed the use of action learning to help em-

ployees apply what they have learned in the classroom (and through
other means of education). Action learning must, in the future, be used
and supported to help ensure successful development. In many organi-
zations faced with large numbers of retirees, younger employees are
promoted and then left to “sink or swim”—it is assumed that the best
employees will succeed in their new responsibilities, and those who
don’t survive will be let go and replaced with other promising candi-
dates. Few companies can afford this type of random experimentation,
because the cost of failure extends beyond the loss of a bright young
employee—it can have a major effect on an organization’s overall busi-
ness results and on the overall morale within the organization. While
many younger employees are eager for these types of promotional op-
portunities, even the highest potential employees fear failure, and many
have a tendency to want to succeed on their own, waiting to ask for
help until they are so over their heads that it is too late to save them.
The most forward-thinking companies will use two strategies to
help ensure the successful development of younger generations for
more senior-level positions. First, they start developing these people
early through comprehensive leadership development programs that
combine many modes of learning including classroom learning, action
learning, coaching, and mentoring. These types of programs help fill
the leadership pipeline and also act as a screening method. Observing
participants as they take part in action learning projects can reveal
those who have the best characteristics for leadership before they are
promoted, thereby improving the chances of successful placement in
more senior-level jobs. These programs can also be effective in helping
the next generation of leaders to build their organization-wide support
networks so that key relationships are already in place when they are
promoted. After the first session in a leadership development program
at a small high-tech company, where several dozen high-potential mid-
level managers from around the world were brought together for a
three-day educational session, participants noted that even if there had
been no educational component to the program, enabling these people
to meet each other and discuss the company’s business from their vari-
ous functional and geographical perspectives would have provided a
great return on the company’s investment in the meeting.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 273

Chapter 13 ◆ The Future of Management Development 273

The second strategy for ensuring the success of younger generations

in leadership positions is to provide mentoring, coaching, and other
support for them during their first months in their new positions.
Rather than just letting these newly promoted employees to sink or
swim, these more forward-thinking organizations provide in-water sup-
port and instruction.
In many cases, these types of promotions are to replace someone
who has just retired (and the demographics cited at the beginning of
this chapter forecast that this will be an increasing trend over the com-
ing decade). Surveys of baby boomers say that most would like to
phase-in their retirements—they do not want to stop working totally.
One promising strategy is to retain the newly retired senior manager to
be a part-time mentor and coach to the newly promoted replacement.
In this way, the new manager will have the benefit of extending his or
her learning from the experience of the retiree, a sounding board for
his or her new ideas, and a coach who has knowledge of the specific
business along with the players, customers, suppliers, and so on.

Changing Roles
With the trends in demographics, new approaches to management de-
velopment, and technology playing a larger role, some parts of the or-
ganization will need to adjust or change their responsibilities. The first
of these is the human resources (HR) group. We asked several leading
thinkers5 how they believe that HR and training groups will have to
change in the future to meet these emerging needs.

• Professor Richard Boyatzis of Case Western believes companies will

rise and fall on the strength of their HR groups. He sees the world
moving to a place where people will be the biggest differentiator for
companies; HR groups can help by providing more effective inspi-
ration, motivation, and guidance of the organization’s human capi-
tal and talent.
• McGill University professor Henry Mintzberg thinks HR groups
need to pay attention to all candidates, not just those designated as
“high flyers,” and see that potential candidates get the individualized

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 274

274 AMA Guidebook to Management Development

training they need. He suggests an example—www.Coaching

Ourselves.com.
• Jay Jamrog, research vice president at the Institute for Corporate
Productivity (I4CP) believes that HR needs to change the way it
looks at the value it adds to the organization. HR directors need to
develop an integrated talent management suite of offerings so they
get the right people in the right positions, and they need to tell the
story of what they’re doing—lining people up to execute the strategy
of the organization.
• University of Michigan professor David Ulrich stresses that HR
needs to integrate training programs with compensation, appraisal,
and staffing programs. All materials and programs need to align to
the business strategy and customer expectations.

Another organizational group that will be affected by the changing en-

vironment is the training organization.

• Babson professor Allan Cohen feels that training organizations

need to “move beyond the smiley face theory of training.” They
need to understand their organizations’ business and the complex-
ity of what people actually do. He sees the soft skills as more rele-
vant than ever, blending the need for speed and the need to have
full input into making the hard business decisions, with the need to
pay attention to people’s growth.
• David Ulrich thinks trainers need to pay more attention to strategy
(how training matches where the company is going), technology
(how training is delivered), and finance (how will the company
make money from the training). He sees line managers as the ones
who should judge the long-term value of the work; they should also
model the behaviors being taught in training.
• IMD (Lausanne, Switzerland) professor Michael Watkins wants to
see more use of what the literature tells us about how to develop ex-
pertise, which is keeping people immersed for longer periods of
time in order to become expert. Training programs are useful, but
companies need to commit to putting young leaders into business
positions and keeping them there for longer periods of time—giving
them time to live with the consequences of their early decisions.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 275

Chapter 13 ◆ The Future of Management Development 275

• Jay Jamrog feels there are some standardized kinds of training pro-
grams that will continue to be needed, but that companies are going
to want much more specific customized training as well. He sees
soft skills as critically important for future leaders—the challenge
being to figure out how to measure and reward those softer compe-
tencies of developing people and giving them the incentives to do
their jobs well.
• Marshall Goldsmith sees training organizations being held more ac-
countable for results as opposed to process and activity. He thinks
executives will be much more involved in putting together the con-
tent of management development programs.
• McGill University professor Henry Mintzberg thinks training or-
ganizations will do more by doing less. They will do less formal
training while playing more of a learning facilitation role (see Table
12.1) to enable managers to learn through their own experiences.

A Final Word
There is no doubt management development will be different in the fu-
ture. And we have no pat recommendations for how best to do it. As
Generation X and the Millennials take the places of retiring baby
boomers, management development programs need to adapt to their
learning and work preferences. Their high comfort level with technol-
ogy and their increased ability to multitask will prompt changes we can
only guess at now. We know they are different from their predecessors;
we need to learn how to harness their strengths. We need to explore
new learning approaches.
One huge difference the new generations bring to the workforce is
their ability to work with others to develop their ideas. Through their
online collaborations, they have shown that peer production can be a
powerful tool for dramatically increasing the speed with which prob-
lems can be uncovered and fixed.6 They demonstrated this with proj-
ects like the development of Wikipedia and Linux.
Their affinity for social networking is a force we need to harness.7
This will have big implications for management in general and for
management development programs in particular. We need more
research on how to help them collaborate and innovate even more

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826ch13.qxp_SR 3/18/08 3:15 PM Page 276

276 AMA Guidebook to Management Development

effectively and efficiently; we need to learn how best to tap their talents
and to manage them effectively.
Now is the time to think and plan how to adapt management devel-
opment approaches to accommodate the new generations who will
become the future business leaders of tomorrow. We hope the perspec-
tives in this AMA Guide to Management Development will spur your think-
ing and help you in that process.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 277

Appendix
The AMA Management Development
Competency Model
Knowing and Managing Yourself
Emotional Intelligence/Self-Awareness
Analyzing and recognizing one’s own strengths and weaknesses, attitudes,
and feelings; maintaining a clear, realistic understanding of one’s goals, ca-
pabilities, and limitations; seeking feedback about one’s effectiveness and
making changes in response to it; being attuned to one’s inner feelings,
recognizing how these feelings affect one’s behavior and job performance,
and expressing one’s feelings and reactions appropriately.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Proactively solicits both positive and X X X X
constructive feedback on his or her
performance.
2. Adjusts his or her behavior in response X X X X
to feedback.
3. Recognizes feelings and concerns X X X X
heard in conversation to address
the other person’s expressed and
underlying needs.
4. Understands his or her personal X X X X
preferences for making decisions,
solving problems, and working with
others; recognizes when his or her
preferred style may not be the most
effective approach given the situation.
5. Asks questions that create an atmosphere X X X X
in which the other person feels com-
fortable discussing the situation and
sharing concerns.
6. Expresses his or her feelings and reac- X X X X
tions in a calm, clear manner.
7. Communicates tactfully even when X X X X
others are unhappy or confused.
8. Coaches others on the importance of X X X
self-awareness and how to become
more self-aware.

A PDF file of the AMA Management Development Compentency Model,

as well as other information about the book, is available at:
277
www.amacombooks.org/go/AMAGuideMgmtDevelop
6826appx.qxp_SR 3/18/08 2:46 PM Page 278

278 Appendix ◆ The AMA Management Development Competency Model

Self-Confidence
Acting on the basis of one’s convictions rather than trying to please oth-
ers; being confident in oneself; having a healthy sense of one’s capabili-
ties without being arrogant.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Clearly and appropriately states his or X X X X
her opinions and perspectives, even if
others disagree.
2. Exhibits confidence and conviction X X X X
when presenting his or her ideas and
perspectives, both verbally and in
writing.
3. Demonstrates a willingness to take X X X X
on challenging new projects or
assignments.
4. Quickly and candidly informs others X X X X
when he or she cannot fulfill a request,
and the reason for it, and problem-
solves an alternative.
5. Admits when he or she is wrong or X X X X
someone else has a better solution and
is willing to change direction or reorient
his or her actions as necessary.
6. Demonstrates confidence that his or her X X X X
plans and decisions will be successful.
7. Is willing to delegate tasks or assign- X X X
ments that team members may be able
to perform better than him- or herself.
8. Takes responsibility for making difficult X X X
or unpopular decisions.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 279

Appendix ◆ The AMA Management Development Competency Model 279

Self-Development
Seeking feedback about one’s strengths and weaknesses; initiating activ-
ities to increase or enhance one’s knowledge, skills, and competence in
order to perform more effectively or enhance one’s career; learning
new information or ideas and applying them effectively; keeping up to
date in one’s knowledge and skills; and learning from successes and
failures.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Routinely asks for feedback on his or her X X X X
performance and uses both positive
and negative feedback to enhance
performance.
2. Receives feedback in a constructive X X X X
manner.
3. Probes for concrete examples and X X X X
suggestions to improve his or her own
performance.
4. Consults relevant sources (e.g., ap- X X X X
praisals, reports, videos, customer
feedback) to get insight into
his or her own performance.
5. Is self-critical; can name both strong X X X X
and weak points about him- or herself.
6. Learns from both successes and failures. X X X X
7. Initiates project debriefs to clarify X X X X
learnings—both what worked well and
what could be done more effectively in
the future.
8. Seeks both formal and informal X X X X
development opportunities.
9. Demonstrates a desire to perform above X X X
and beyond the requirements of his or her
position (e.g., enthusiastically takes on
tasks outside of daily responsibilities to
learn and grow).
10. Coaches others to focus on self- X X X
development.
11. Builds a culture that encourages X
learning and continuous improvement.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 280

280 Appendix ◆ The AMA Management Development Competency Model

Building Trust and Personal Accountability

Keeping promises and honoring commitments; accepting responsibility
for one’s actions; being honest and truthful when communicating infor-
mation; behaving in a way that is consistent with espoused values; and
assuming responsibility for dealing with problems, crises, or issues.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Admits when he or she does not know X X X X
an answer and takes the necessary
measures to locate required information.
2. Treats confidential information with X X X X
respect and integrity.
3. Takes the initiative to provide all rele- X X X X
vant information, even when commu-
nicating about a problem, mistake, or
other difficult situation (e.g., is clear
and direct).
4. Accepts responsibility for mistakes and X X X X
failures and learns from them (e.g., does
not “point fingers”).
5. Keeps promises and honors X X X X
commitments.
6. Demonstrates consistency between his X X X X
or her words and actions.
7. Backs up and supports team members X X X X
in difficult situations.
8. Handles work-related problems and X X X X
issues in a confident and decisive
manner.
9. Is willing to hold tough discussions with X X X
others about taking responsibility for
their own actions and decisions.
10. Sets an example by behaving in a way X X X
that is consistent with the organization’s
values and principles.
11. Asks open-ended, nonevaluative X X X
questions about work-related problems
to encourage people to respond and
provide a more complete picture of the
situation.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 281

Appendix ◆ The AMA Management Development Competency Model 281

Resilience and Stress Tolerance

Continuing to perform effectively when faced with time pressures, ad-
versity, disappointment, or opposition; remaining focused, composed,
and optimistic; bouncing back from failures or disappointments.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Projects credibility and poise under X X X X
difficult or adverse conditions.
2. Maintains progress (while maintaining X X X X
quality) when handling multiple tasks
and projects, even under stressful
situations or when faced with com-
peting deadlines.
3. Is patient, tenacious, and resourceful X X X X
when seeking information to satisfy a
request or complete a project.
4. Sees issues and problems through to X X X X
completion.
5. Handles contacts with internal and X X X X
external customers with a high degree
of professionalism (e.g., maintains a
calm disposition even when others are
upset, does not convey impatience or
annoyance).
6. Treats all people with respect and X X X X
equity, even when under pressure.
7. Finds ways to overcome or eliminate X X X X
barriers that are hindering achievement
of his or her goals.
8. Views failures and mistakes as an X X X X
opportunity to learn.
9. Quickly responds to unforeseen changes X X X
in the business.
10. Keeps team members calm and focused X X X
in uncertain or complicated situations.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 282

282 Appendix ◆ The AMA Management Development Competency Model

Action Orientation
Maintaining a sense of urgency to complete a task; seeking information
rather than waiting for it; making decisions in a timely manner regard-
less of pressure or uncertainty; making decisions quickly when called
upon to do so; acting decisively to implement solutions and resolve
crises; not procrastinating; being tough and assertive when necessary
while showing respect and positive regard for others.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Makes timely decisions based on the X X X X
best available information (e.g., is not
overcome by “analysis paralysis”).
2. Has the confidence to make decisions X X X X
in uncertain circumstances.
3. Balances information gathering and X X X X
analysis activities with an urgency to
take action and “drive it forward.”
4. Tackles problems or conflict head-on; X X X X
does not procrastinate.
5. Avoids distraction from less critical X X X X
activities.
6. Clarifies priorities and objectives to X X X X
swiftly accomplish tasks.
7. Takes the initiative to identify and solve X X X X
work-related problems.
8. Coaches others to be decisive. X X X
9. Checks to ensure priorities and objec- X X X
tives are clear among team members.
10. Refocuses team members on the “big X X
picture” when they appear to have
lost sight of it.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 283

Appendix ◆ The AMA Management Development Competency Model 283

Time Management
Allocating time appropriately among people and projects to ensure that
both internal and external client needs are met; reprioritizing daily
tasks as each day progresses to ensure that newly emerging, urgent is-
sues are resolved while not losing sight of longer-term projects; balanc-
ing his or her workload when involved in multiple projects.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Shifts attention quickly to respond to X X X X
the unexpected and simultaneously
make progress on planned activities.
2. Understands what is required to get X X X X
things done and establishes/implements
an effective course of action (e.g., es-
tablishes appropriate deadlines and
meets them).
3. Plans each day’s work to complete X X X X
time-sensitive issues before deadlines.
4. Takes ownership for delivering results X X X X
on multiple projects or initiatives.
5. Gathers the necessary information to X X X X
effectively prioritize work (e.g., urgency
and importance).
6. Prioritizes and organizes a complex X X X
workload while maintaining focus and
staying on track.
7. Reallocates his or her time to ensure the X
completion of his or her own assigned
work/responsibilities as well as helping
others perform effectively.
8. Establishes and maintains systems and X X X
files to help resolve pending issues and
problems in a timely manner.
9. Delegates appropriately to ensure that X X
he or she is focused on longer-term
strategic projects.
10. Reprioritizes work efforts based on X X
changing situations and emerging issues
(e.g., is responsive to organizational,
systems, and/or market changes).
11. Effectively balances his or her focus on X
both strategy and operations to achieve
optimal results.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 284

284 Appendix ◆ The AMA Management Development Competency Model

Flexibility and Agility

Adjusting one’s behavior to new information or changing circum-
stances; remaining open to new ways of doing things; experimenting
with new methods; and working effectively in an unstructured or dy-
namic environment.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Adapts his or her behavior in response X X X X
to new information or changing
circumstances.
2. Is open to new methods, ideas, or X X X X
approaches.
3. Works and collaborates effectively in X X X X
unstructured or dynamic environments.
4. Adjusts the original objective or plan to X X X X
allow the best possible results.
5. Demonstrates a willingness to embrace X X X X
new systems, processes, technology, and
ideas.
6. Stays focused and keeps his or her team X X X
focused during times of uncertainty or
change.
7. Coaches others to be flexible and adapt X X X
behavior to various situations.
8. Understands that ambiguity is a normal X X X
part of doing business and communi-
cates this to people in the work unit/
function.
9. Anticipates changes in the internal and X X
external environment (e.g., organiza-
tional, market, products, and systems)
and adapts accordingly.
10. Uses new ideas to reengineer work X
processes or make changes in how re-
sources are allocated within the function.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 285

Appendix ◆ The AMA Management Development Competency Model 285

Critical and Analytical Thinking

Regularly questioning basic assumptions about the work and how it
gets done; identifying underlying principles, root causes, or facts by
breaking down information or data and drawing conclusions; applying
sound reasoning; understanding the complexity of certain issues and
crystallizing the components of the issue to make it more manageable;
and understanding the implications of data/information.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Challenges established thinking, pro- X X X X
cesses, or protocols with company
success in mind.
2. Quickly and systematically analyzes the X X X X
root cause of work-related problems
before taking corrective action.
3. Recognizes and communicates the X X X X
implications of data/information.
4. Is able to clearly frame a problem, iden- X X X X
tify and collect the necessary data, and
make recommendations for solving the
problem.
5. Takes complex issues or problems and X X X X
breaks them down into manageable
components.
6. Understands how data and recommen- X X
dations may impact other functions
and departments.
7. Relates problems to one another and to X X
strategic objectives to recognize oppor-
tunities for dealing with several related
problems at the same time.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 286

286 Appendix ◆ The AMA Management Development Competency Model

Creative Thinking
Reexamining traditional strategies and practices; proactively looking
for new ideas and ways to improve products, services, and work
processes; looking at problems and opportunities from a unique per-
spective; seeing patterns and themes that are not immediately apparent
to others; taking time to refine and shape a new idea so it has a higher
likelihood of success.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Suggests ways to improve processes X X X X
and create efficiencies (e.g., is willing
to question current approaches in the
interest of maximizing efficiency, sug-
gests better ways to do the work).
2. Demonstrates creative approaches to X X X X
solving problems and generates inno-
vative approaches.
3. Demonstrates creative approaches to X X X X
locating and applying information to
meet internal and external customer
needs.
4. Proactively identifies ways to improve X X X X
current workflow and procedures to
better meet internal and external cus-
tomer needs (e.g., challenges the status
quo).
5. Recognizes patterns or themes in data/ X X X X
information that may not have been
readily apparent (e.g., looks for relation-
ships among issues/problems rather
than assume they are distinct and
independent).
6. Solicits input from others who have X X X
unique or vastly different perspectives
when shaping an idea or plan.
7. Coaches others to think creatively and X X X
encourages brainstorming when solving
problems or making decisions.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 287

Appendix ◆ The AMA Management Development Competency Model 287

Knowing and Managing Others

Oral Communication
Conveying ideas and opinions clearly to others; projecting credibility,
poise, and confidence even under difficult or adversarial conditions;
speaking enthusiastically and using vivid language, examples, or anec-
dotes to communicate a message; making use of unambiguous lan-
guage, gestures, and nonverbal communication; considering the needs
of the audience and how it is likely to react; talking to people in a way
they can understand; listening attentively to others; and using appropri-
ate grammar and vocabulary.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Uses effective listening skills to identify X X X X
important information in conversations
and to engage people (e.g., pays atten-
tion to orally communicated facts and
details, discerns and responds to the
feelings and underlying messages of
others, paraphrases, asks relevant open-
ended questions).
2. Clearly articulates ideas, opinions, and X X X X
information so others understand them.
3. Uses the appropriate medium (e.g., X X X X
voice mail, face-to-face, one-on-one,
team meeting) depending on the nature
of the information being communicated.
4. Adapts his or her communication X X X
strategy to the audience.
5. Ensures that people are provided with X X X
clear, timely, and accurate information
about issues that may affect their work.
6. Exhibits confidence and enthusiasm X X
when presenting information.
7. Effectively facilitates group conversations X X
in order to clarify issues and establish
direction.
8. Delivers presentations to both small and X X
large groups in a well-organized, clear,
and articulate manner.
9. Understands when “skip level” commu- X
nication may be appropriate and neces-
sary (e.g., stays in touch with front-line
employees without diminishing the
authority of his or her direct reports).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 288

288 Appendix ◆ The AMA Management Development Competency Model

Written Communication
Expressing ideas and opinions clearly in properly structured, well-
organized, and grammatically correct reports and documents; employ-
ing language and terminology appropriate to the reader; using
appropriate grammar and punctuation.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Uses language that is clear to the reader. X X X X
2. Writes documents free of grammatical X X X X
or punctuation errors.
3. Presents ideas or opinions clearly and X X X X
succinctly in writing.
4. Uses e-mail as an appropriate medium X X X X
(i.e., understands when a face-to-face or
telephone conversation would be more
effective).
5. Writes with a logical structure (e.g., X X X X
introduction, supporting information,
conclusion).
6. Breaks down a complex concept so that X X X X
is easily understood by the target
audience.
7. Uses examples that are suitable and X X X X
relevant for the target audience.
8. Places material in a broader organiza- X X
tional context, pointing out connections
and relationships.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 289

Appendix ◆ The AMA Management Development Competency Model 289

Valuing Diversity
Demonstrating respect for individual differences (including cultural dif-
ferences and diverse ways of thinking or approaching issues); establish-
ing a climate in which all people can be comfortable and productive;
evaluating the work of others in a culturally neutral way; selecting and
developing people in multiple cultural settings; communicating effec-
tively with and in multiple cultures; understanding how culture influ-
ences people’s behavior; adapting one’s style and behavior to meet
cultural norms and expectations; and taking advantage of unique cul-
tural knowledge, capability, or information to develop or enhance
products or services.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Relates effectively with people of diverse X X X X
backgrounds (both cultural backgrounds
and those who have different ways of
thinking or approaching issues).
2. Adapts his or her style and behavior to X X X X
meet cultural norms and expectations.
3. Reaches agreement with people who X X X X
share different opinions.
4. Includes people of diverse backgrounds X X X X
in his or her informal network.
5. Challenges others who make racial, eth- X X X X
nic, or sexually derogatory comments.
6. Coaches others on how cultural norms X X X
and expectations influence behavior.
7. Demonstrates a respect for individual X X X
differences by creating an environment
in which people can be themselves.
8. Evaluates team members’ performance X X X
in a culturally neutral way.
9. Leverages unique cultural knowledge, X X
capability, and/or information to de-
velop or enhance products and services.
10. Appreciates the contributions of different X X
functions across the organization and
involves them appropriately and in plan-
ning and decision making.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 290

290 Appendix ◆ The AMA Management Development Competency Model

Building Teams
Facilitating the constructive resolution of conflict; increasing mutual
trust; encouraging cooperation, coordination, and identification with the
work unit; encouraging information sharing among individuals who do
not know each other and who may represent different cultures; includ-
ing others in processes and decisions regardless of geographical dis-
tance or location; finding creative ways to minimize the effects of
different time zones on the quality and frequency of interactions.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Acts on opportunities to collaborate X X X X
across the organization, regardless of
geography or cultural differences.
2. Proactively helps team members both X X X X
within and outside of his or her group.
3. Shares credit for successes with team X X X X
members (i.e., gives credit where credit
is due).
4. Solicits and offers feedback on how X X X X
people could work most effectively
together.
5. Encourages frank and open discussion of X X X
a disagreement.
6. Encourages cooperation and teamwork X X X
among people who depend on each
other to get the work done.
7. Coaches people to partner with X X X
colleagues across the organization,
regardless of cultural differences or
geography.
8. Recognizes conflicting priorities across X X
the organization and initiates joint
problem solving to determine the best
course of action for the organization.
9. Encourages and facilitates cross-unit X X
cooperation and coordination.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 291

Appendix ◆ The AMA Management Development Competency Model 291

Networking
Socializing informally; developing contacts with people who are a
source of information and support; maintaining contacts through peri-
odic visits, telephone calls, correspondence, and attendance at meetings
and social events.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Relays relevant experiences and passes X X X X
on knowledge unselfishly.
2. Maintains contacts with people in other X X X X
areas of the company or in different
organizations who can be useful sources
of information or resources.
3. Does favors (e.g., provides information, X X X X
assistance, political support, or resources)
to maintain good working relationships
with people whose cooperation and
support are important.
4. Attends meetings and social events to X X X X
continually solidify and grow his or her
network.
5. Uses his or her network to solve prob- X X X X
lems efficiently and effectively.
6. Actively designs his or her network in X X X X
anticipation of future needs or plans
(e.g., has clear goals in mind when
building his or her network).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 292

292 Appendix ◆ The AMA Management Development Competency Model

Partnering
Identifying, building, and managing internal and external partnerships
that add value to the company; initiating and leveraging opportunities
to work with others across the organization to maximize individual and
organizational effectiveness; working effectively across organizational
boundaries to accomplish a shared objective; developing networks and
alliances across the organization to build influence and support for
ideas.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Builds relationships with colleagues in X X X X
other functional groups (e.g., proactively
shares knowledge and best practices
with people in other groups, under-
stands the objectives of other functional
groups and their effect on the com-
pany’s success).
2. Readily shares information, knowledge, X X X X
best practices, and ideas with people
across organizational units.
3. Asks consultative questions of customers, X X X X
colleagues, managers, and others to
identify business needs and solutions.
4. Forms alliances with people in different X X X X
organizational units to work toward
mutual objectives.
5. Coaches team members to consult with X X X
other departments/work units in solving
problems and making decisions.
6. Manages external partnerships accord- X X X
ing to agreed-upon plans and standards.
7. Identifies and builds external partner- X X
ships that add current or future value
to the company.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 293

Appendix ◆ The AMA Management Development Competency Model 293

Building Relationships
Being skilled at detecting and interpreting subtle clues, often nonverbal,
about others’ feelings and concerns; displays empathy and sensitivity to
the needs and concerns of others; and supports others when they are
facing difficult tasks; enjoys dealing with people and working with peo-
ple of diverse styles and backgrounds.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Seeks out people and actively shares X X X X
information instead of waiting for others
to connect with him or her.
2. Promptly returns all forms of commu- X X X X
nication to others including e-mail,
voicemail, and more traditional forms.
3. Displays empathy when a person is X X X X
dealing with a difficult problem or
situation.
4. Understands and adapts to the different X X X X
working styles, personalities, and cultural
backgrounds of the people he or she
works with.
5. Offers to provide advice and support X X X X
when a person is facing a difficult
problem or issue.
6. Listens actively to detect both verbal X X X X
and nonverbal cues in conversation.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 294

294 Appendix ◆ The AMA Management Development Competency Model

Emotional Intelligence/Interpersonal Savvy

Being attuned to how others feel in the moment, sensing the shared val-
ues of the group, and using that insight to do and say what’s appropri-
ate; understanding others’ feelings, motives, and reactions and adapting
one’s behaviors accordingly; appreciating the effect of one’s behavior
on others; being at ease when approaching others during social occa-
sions; making and maintaining a favorable impression; and mingling ef-
fortlessly with others.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Demonstrates awareness for others’ X X X X
feelings and adapts own behavior
accordingly.
2. Encourages others to speak or share X X X X
their perspective on a situation.
3. Is attentive to others’ needs. X X X X
4. Is at ease in social situations; makes X X X X
others at ease.
5. Intuitively detects and avoids potentially X X X X
problematic situations before they take
place.
6. Shows empathy for others’ problems X X X X
and concerns.
7. Knows when to talk and when to listen. X X X X
8. Understands how others may perceive X X X X
his or her words and actions, and that his
or her intent may not always yield the
desired impact.
9. Helps team members develop the ability X X X
to take into account others’ concerns
and perspectives.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 295

Appendix ◆ The AMA Management Development Competency Model 295

Influencing
Using techniques that appeal to reason, values, or emotion to generate
enthusiasm for the work, commitment to a task objective, or compli-
ance with a request; using appropriate tactics to change a person’s atti-
tude, beliefs, or behaviors.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Talks in a persuasive manner about X X X X
the importance of achieving tasks or
objectives.
2. Describes a clear and appealing vision X X X X
of what can be accomplished with a
person’s cooperation and support.
3. Develops enthusiasm for a task or proj- X X X X
ect by appealing to a person’s needs or
values (i.e., accomplishing a challeng-
ing task, beating competitors, doing
something never done before).
4. Adapts style or approach to meet the X X X X
other person’s style.
5. Explains the benefits of the task X X X X
objectives to others.
6. Demonstrates willingness to incorpor- X X X X
ate input from others.
7. Listens to others’ points before making X X X X
his or her own points.
8. Does not rely primarily on his or her X X
position power to influence others.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 296

296 Appendix ◆ The AMA Management Development Competency Model

Managing Conflict
Recognizing the potential value of conflict for driving change and inno-
vation; knowing when to confront and when to avoid a conflict; under-
standing the issues around which conflicts revolve; identifying the goals
and objectives of the parties involved; finding common ground; look-
ing for win/win solutions; and seeking agreement on a solution and
eliciting commitment to making it work effectively.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Tries to understand another person’s X X X X
perspective during a discussion or
disagreement (e.g., does not rush to
refute each point the person makes,
listens attentively, paraphrases the other
person’s point of view).
2. Wins concessions without damaging X X X X
relationships (e.g., creates “win/win”
situations, makes appropriate com-
promises).
3. Modifies his or her proposals or plans to X X X X
deal with concerns and incorporate sug-
gestions to reach a compromise that
benefits the business.
4. Challenges people in a way that is con- X X X X
structive and nonthreatening.
5. Confronts and facilitates conflict in a X X X X
way that helps people engage in con-
versation to yield a better solution.
6. Understands when conflict should be X X X X
confronted and when it should be
avoided.
7. Identifies the likely source of a conflict X X X X
before taking action.
8. Coaches others on how to resolve X X X
conflict in a constructive manner.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 297

Appendix ◆ The AMA Management Development Competency Model 297

Managing People for Performance

Setting clear performance targets and gaining a person’s commitment
to accomplishing those targets; checking on the progress and quality of
the work, providing specific feedback on a regular basis that enables
others to understand what they have done well and how they can im-
prove in the future; and addressing performance problems by gathering
information and setting goals for improvement in a fair and consistent
manner.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Sets goals that are clear, specific, and X X X
measurable (i.e., quantifiable or
verifiable).
2. Conducts periodic performance meet- X X X
ings with direct reports to review prog-
ress against goals and ensure that goals
are relevant and realistic.
3. Provides balanced, specific feedback on X X X
a regular basis.
4. Addresses performance problems in a X X X
timely and fair manner by clearly defin-
ing where expectations are not being
met.
5. Develops a sense of commitment in X X X
others to meet challenging, yet realistic,
performance targets.
6. Holds first-level managers accountable X
for managing others (not only for tech-
nical work).
7. Holds people accountable for achieving X X X
their performance goals.
8. Offers tangible, realistic suggestions for X X X
how people can enhance or improve
their performance.
9. Ensures that goals are aligned with X X
organizational strategy and object-
ives; clarifies and communicates
cross-functional/departmental
interdependencies.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 298

298 Appendix ◆ The AMA Management Development Competency Model

Clarifying Roles and Accountabilities

Communicating with others to make clear what is expected of them;
conveying expectations about timelines and the quality of employees’
work; and helping people understand how their roles relate to the
broader objectives and success of the organization.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Clearly explains expectations about the X X X X
quality and timeliness of a task or project.
2. Specifies a date or time when a task or X X X X
project should be completed.
3. Explains how one’s role relates to the X X X
broader objectives of the company.
4. Explains what objectives or aspects of X X X
the work have the highest priority based
on the current business environment,
organizational initiatives, strategy, and
other parameters.
5. Sets task goals that are clear and specific X X X
(e.g., quantitative targets to be attained
in the next quarter or year, activities to
be completed by a given date).
6. Tailors instructions to a person’s skills, X X X
experience, level of confidence, and
other needs.
7. Takes the initiative to meet with a person X X X
who is not meeting expectations to
clearly define what is expected and why
it is important for the business or work
unit.
8. Coaches others to convey expectations X X
about the quality and timelines of proj-
ects and tasks.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 299

Appendix ◆ The AMA Management Development Competency Model 299

Delegating
Assigning responsibilities to direct reports and giving them the author-
ity to carry them out; maintaining the proper level of involvement with-
out abdicating or micromanaging; assigning tasks that are a good fit
with a person’s capabilities; assigning tasks for development and pro-
viding guidance to ensure success; debriefing assignments to reinforce
learning.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Gives clear instructions (content, dead- X X X
lines, decision-making authority) on
delegated tasks and projects.
2. Clearly communicates the desired results X X X
of the delegated assignment.
3. Delegates assignments designed to meet X X X
direct reports’ individual development
or career goals as well as assignments
that enable better time management.
4. Provides ongoing coaching and support X X X
without micromanaging delegated
assignments.
5. Debriefs delegated tasks and projects to X X X
identify key learnings and provide both
positive and constructive feedback.
6. Coaches managers on the importance X X
of effective delegation for developing
and retaining talent.
7. Systematically reviews own responsibil- X
ities and identifies opportunities to dele-
gate projects or initiatives to ensure he
or she is focused on strategic issues.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 300

300 Appendix ◆ The AMA Management Development Competency Model

Empowering Others
Giving people the authority, information, resources (e.g., time, money,
equipment), and guidance to make decisions and implement them.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Provides people with the information X X X X
they need to do their jobs well.
2. Allows direct reports to make important X X X
decisions and implement them without
prior authority.
3. Presents an assignment in general terms X X X
and allows others to determine action
steps for implementation.
4. Encourages others to come up with X X X
solutions or ideas on their own; acts
as a sounding board when needed.
5. Demonstrates confidence in people’s X X X
capabilities; gives people the benefit of
the doubt.
6. Ensures people have the resources they X X X
need to accomplish a task or objective.
7. Asks people in the work unit/function for X X
feedback on the extent to which they
feel empowered to make decisions.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 301

Appendix ◆ The AMA Management Development Competency Model 301

Motivating Others
Setting high standards regarding quality and quantity of the work;
displaying commitment to the organization and enthusiasm for its prod-
ucts and services; conveying confidence in others’ capabilities; appeal-
ing to others’ unique needs, motives, and goals to motivate them to
achieve; and celebrating others’ successes and praising them for a job
well done.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Sets high standards for performance. X X X
2. Models excellence and enthusiasm for X X X
the work.
3. Speaks positively and enthusiastically X X X
about the organization’s products/
services and future direction.
4. Inspires others to a greater effort by X X X X
setting an example in his or her own
behavior of courage, dedication, or
self-sacrifice.
5. Identifies and appeals to individual X X X X
needs and motives.
6. Establishes challenging, yet realistic, X X X
performance goals that tap into people’s
interests and motives.
7. Rewards and recognizes others for a job X X X
well done.
8. Uses others as a sounding board for X X X
generating ideas and plans; acknowl-
edges their expertise or perspective
when asking for their opinions.
9. Coaches others on ways to motivate. X X X

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 302

302 Appendix ◆ The AMA Management Development Competency Model

Coaching
Providing others with the opportunity to develop new skills; clarifying
expectations; offering instructions and advice; and providing support
and feedback to enhance performance.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Explains why he or she thinks a person’s X X X
performance is good.
2. Offers to provide advice or assistance X X X
when a person needs help with a difficult
task or problem.
3. Provides extra instruction or coaching to X X X
others to help improve job skills or learn
new ones.
4. Encourages people to create a personal X X X
development plan.
5. Provides feedback both on the spot X X X
and through periodic meetings to
monitor progress against goals.
6. Helps people understand the impact of X X X
their behavior on their peers, the work
unit, the customer, and others involved.
7. Makes him- or herself available as a X X X
resource to his or her direct reports (e.g.,
provides information, helps to remove
barriers to their effectiveness, acts as a
sounding board to generate ideas).
8. Is patient and helpful when giving X X X
complicated explanations or instructions.
9. Offers helpful advice on how people can X X X
advance their careers.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 303

Appendix ◆ The AMA Management Development Competency Model 303

Developing Top Talent

Consistently attracts, selects, develops, and retains high performers;
raises the performance bar for his or her work unit or team so that it
consists of top performers; providing people with the opportunity to de-
velop new skills, carry out challenging assignments, and accept new re-
sponsibilities; and holding people accountable for their performance.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Does not tolerate mediocre or poor X X X
performance; swiftly addresses perfor-
mance problems.
2. Ensures continuous and open lines of X X X
communication and feedback.
3. Gives coaching and support to improve X X X
team and individual results.
4. Makes maximum use of the different X X X
talents of team members.
5. Raises the bar for performance within X X X
his or her work unit by setting challeng-
ing objectives and measuring perfor-
mance against them.
6. Provides people with the opportunity X X X
to develop new skills and accept new
responsibilities.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 304

304 Appendix ◆ The AMA Management Development Competency Model

Knowing and Managing the Business

Problem Solving
Identifying work related problems; analyzing problems in a systematic
but timely manner; drawing correct and realistic conclusions based on
data and information; and accurately assessing root cause before mov-
ing to solutions.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Anticipates potential problems and takes X X X X
actions to prevent them.
2. Quickly and systematically analyzes the X X X X
causes of work-related problems before
taking corrective action.
3. Works to see all angles and perspectives X X X X
on a problem or issue before drawing
conclusions or moving forward with
plans or decisions.
4. Identifies the appropriate tools, re- X X
sources, and expertise across the or-
ganization to develop the best solution
to resolve a problem or issue.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 305

Appendix ◆ The AMA Management Development Competency Model 305

Decision Making
Generating and evaluating alternatives before making a decision or tak-
ing action; considering the risks associated with an option and selecting
the option that has the best balance of risk and reward; encouraging
input from others when it is appropriate; standing by decisions without
reconsidering unless information or circumstances make it necessary to
do so; evaluating the effectiveness of decisions after they are made.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Anticipates the consequences of decisions. X X X X
2. Involves people appropriately in decisions X X X X
that may impact them.
3. Makes decisions, sets priorities, and X X X X
chooses goals based on risks and
rewards.
4. Quickly responds with a back-up plan if X X X X
a decision goes amiss.
5. Proactively identifies and prioritizes the X X
key issues involved to facilitate the
decision-making process for his or her
team or group.
6. Sticks to a decision even when faced X X
with resistance or opposition (e.g., stays
confident in the decision, does not give
in or falter).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 306

306 Appendix ◆ The AMA Management Development Competency Model

Managing and Leading Change

Putting opportunities and threats to the organization in context and
clarifying how the organization needs to be different and why; commu-
nicating a vivid, appealing picture of what the organization needs to
look like in the future; clearly communicating the need for change and
gaining people’s commitment; putting a realistic plan in place to
achieve the desired outcome and ensure it is resourced adequately;
preparing people to adjust to change; keeping people informed about
the progress of change; and celebrating successes.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Defines clear targets and milestones for X X X
change efforts and gains people’s com-
mitment to them.
2. Proactively identifies and addresses X X X
causes of resistance to change.
3. Clearly communicates the rationale for X X X
and benefits of proposed changes.
4. Provides clear, timely, and accurate in- X X X
formation about a change.
5. Answers questions related to the impact X X X
of the proposed change directly and
with candor.
6. Solicits people’s feedback about how a X X X
change effort is progressing and how
people are doing.
7. Adapts own behavior to support organi- X X X
zational change; acts as a role model for
others.
8. Determines a plan to introduce and X X
manage a change in line with the
company’s strategy and available
resources.
9. Evaluates systems and processes to X X
ensure that they are aligned with and
supportive of change efforts.
10. Gains the commitment of first-line and X
mid-level managers early in the change
process.
11. Ensures that the necessary resources X
are available in the function or work
unit to implement change; revises
plans if needed to reflect available
resources.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 307

Appendix ◆ The AMA Management Development Competency Model 307

Driving Innovation
Fostering a climate that encourages creativity and innovation; allowing
others to challenge and disagree; taking prudent risks to accomplish
goals; assuming responsibility in the face of uncertainty or challenge;
championing new untested ideas and building support among stake-
holders; celebrating and learning from failures; building and maintain-
ing open channels of communication for the sharing of ideas and
knowledge.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Recognizes and rewards others X X X
when they suggest innovations and
improvements.
2. Allows others to question and positively X X X
challenge ideas and issues.
3. Takes calculated, prudent risks to achieve X X X
important objectives.
4. Takes prompt action to implement a X X X
promising idea.
5. Fosters an environment where people X X X
feel “safe” taking risks (i.e., acknowl-
edges that mistakes and failures occur
and focuses on learning from them
rather than placing blame).
6. Provides forums for team members to X X X
share ideas and knowledge and brain-
storm new approaches.
7. Creates and reinforces a culture of being X X
proactive and taking initiative to im-
prove existing processes and procedures.
8. Sponsors innovative approaches to new X
business/markets that improve current
results/performance.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 308

308 Appendix ◆ The AMA Management Development Competency Model

Customer Focus
Demonstrating a concern for the needs and expectations of customers and
making them a high priority; maintaining contact with customers, both in-
ternal and external to the organization; using an understanding of cus-
tomer needs as the basis for decision making and organizational action.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Responds to a customer’s inquiry or X X
problem in a timely and effective
manner.
2. Conveys realistic expectations to internal X X
and external customers.
3. Effectively manages customer expec- X X
tations (e.g., reshapes incorrect/
inappropriate assumptions, estab-
lishes realistic timeframes, pushes
back as necessary).
4. Follows up on customer requests to X X
ensure that the final product or service
met expectations.
5. Takes customer issues to the appropriate X X
people within the organization to obtain
the most accurate information to meet
customer needs.
6. Gives high priority to addressing X X X X
customer complaints.
7. Uses information about customers’ needs X X X
as the basis of problem-solving, decision-
making, and organizational action.
8. Reminds people about the importance of X X X
the customer to the organization’s success.
9. Anticipates how plans and actions of the X X
business will affect the customer in the
short term and in the long term.
10. Proactively seeks feedback from customers X X
and uses this information to make im-
provements in systems, processes, etc.
11. Coaches others to forge relationships X X
with customers and add value.
12. Understands and communicates how dif- X
ferent departments and functional groups
interact to support customer needs.
13. Actively seeks out the customer to discuss X
business challenges in an effort to pro-
vide products or services that meet the
customer’s need even before the cus-
tomer recognizes the need as critical.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 309

Appendix ◆ The AMA Management Development Competency Model 309

Resource Management
Clarifying the financial implications of decisions; using resources effec-
tively and in line with company policy and goals; deploying resources
in a way that is consistent with the strategy and that benefits the organi-
zation rather than advancing self-interest; adhering to budgets; and en-
suring others’ time is utilized effectively.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Plans how to eliminate unnecessary X X X
activities and procedures in order to
improve efficiency and make better use
of resources.
2. Determines priorities for different X X X
activities and plans an appropriate
allocation of available resources.
3. Deploys resources based on what is best X X X
for the organization versus advancing
his or her own interests or agenda.
4. Monitors plans to ensure that resources X X X
are used optimally and budgets are
adhered to.
5. Analyzes the short- and long-term X X
financial impact of decisions.
6. In developing plans, considers how X
they will affect the business’s financial
strength and seeks to maximize this
impact without adversely affecting
other criteria of success.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 310

310 Appendix ◆ The AMA Management Development Competency Model

Operational and Tactical Planning

Determining short-term objectives and action steps for achieving them;
determining how to use personnel, equipment, facilities, and other re-
sources efficiently to accomplish a project or initiative; and determining
how to schedule and coordinate activities among individuals, teams, and
work units.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Creates realistic plans that clearly define X X X X
goals, milestones, and results.
2. Plans in detail how to accomplish a large X X X X
or complex project (e.g., identifies
necessary sequence of action steps,
then determines when each should be
done and who should do it).
3. Understands the roles of others within X X X X
the company and uses this knowledge
to improve efficiency (e.g., knows whom
to contact in other areas to obtain
information).
4. Develops controls, checks, and balances X X X X
to monitor progress against plans and
ensure the accuracy of the final product.
5. Anticipates possible delays or risks to X X X X
plans and determines alternative courses
of action to ensure timely delivery and
results.
6. Involves his or her team in planning and X X X
setting priorities.
7. Determines priorities for both short-term X X X
and long-term projects and plans an ap-
propriate allocation of available resources.
8. Evaluates the current flow of work and X X
information across units and identifies
opportunities to improve coordination
and make better use of resources to
accomplish projects/initiatives.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 311

Appendix ◆ The AMA Management Development Competency Model 311

Results Orientation
Communicating business performance measures and clarifying priori-
ties; maintaining a focused commitment to achieving one’s objectives;
working on important issues first; staying with a plan of action or point
of view until the desired goal has been obtained or is no longer reason-
ably attainable; recognizing opportunities and acting on them; looking
for ways to quickly overcome barriers; persevering in the face of adver-
sity or opposition; and translating ideas into action.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Takes appropriate risks to accomplish X X X X
goals.
2. Overcomes setbacks and adjusts the X X X X
plan of action to realize results.
3. Focuses on high-priority actions and X X X X
does not become distracted by lower-
priority activities.
4. Challenges him- or herself and others to X X X
raise the bar on performance.
5. Focuses people on critical activities that X X X
yield a high impact.
6. Develops a sense of urgency in others to X X X
complete tasks.
7. Holds self and others accountable for X X X
delivering high-quality results on time
and within budget (e.g., models high
work standards and demands the same
from others, criticizes mediocre or
substandard performance).
8. Gives priority to achieving results for the X X X
company or department, even if it
conflicts with one’s own personal goals
or agenda.
9. Develops a plan for execution with the X X
team to garner commitment and buy in.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 312

312 Appendix ◆ The AMA Management Development Competency Model

Quality Orientation
Promoting organizational effectiveness by anticipating and dealing with
problems; encouraging others to suggest improvements to work
processes; providing a persistent focus on quality as well as on results;
determining how to improve organizational coordination, productivity,
and effectiveness.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Ensures the quality of the work (e.g., X X X X
monitors reports, reviews complaints
from customers, notices mistakes in his or
her own work and in the work of others).
2. Identifies sources of mistakes and deter- X X X X
mines a course of action to prevent their
recurrence.
3. Proactively raises critical issues that X X X X
impact organizational coordination,
productivity, or effectiveness and takes
the lead in resolving them.
4. Consistently monitors the quality of X X X X
products and services and the processes
used to produce them.
5. Evaluates how well a major project or X X X
activity was done (e.g., monitors internal
and external client satisfaction, asks
people what went well and what can
be done better next time).
6. Communicates and reinforces the X X X
importance of high work standards.
7. Encourages team members to take the X X X
initiative to improve work processes.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 313

Appendix ◆ The AMA Management Development Competency Model 313

Mastering Complexity
Quickly integrating complex information to identify strategies and solu-
tions; learning new concepts quickly; demonstrating keen insights into
situations; assimilating large amounts of information and narrowing it
down to and articulating the core idea or issue.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Understands new concepts quickly. X X X X
2. Assimilates large amounts of data/ X X X X
information to identify what is most
important.
3. Integrates complicated ideas and X X X X
approaches to develop the best possible
solutions.
4. Breaks down complicated problems or X X X X
concepts into clear and manageable
components.
5. Focuses others on the core message or X X
desired result of a complex plan or idea.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 314

314 Appendix ◆ The AMA Management Development Competency Model

Business and Financial Acumen

Possessing the technical and business knowledge needed to make the
best decisions for the organization; assessing the financial implications
of decisions and actions; understanding how strategies and tactics work
in the marketplace; and balancing data analysis with judgment and
business sense.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Understands how his or her role con- X X X X
tributes to the overall success of the
organization.
2. Understands the key drivers of the X X X
business, including how the business
makes money.
3. Understands the financial impact of X X X
decisions and actions.
4. Analyzes data to identify trends and X X X
issues that are important to the business
and interprets the results of the analyses
to make recommendations for how the
organization should address the issues.
5. Understands how internal and external X X
business measurements are defined and
influenced.
6. Continuously learns and demonstrates X X
an in-depth understanding and knowl-
edge of the company’s core business
and how the organization operates (e.g.,
has a thorough understanding of overall
business structure, processes, policies,
functions, and their interrelationships).
7. Assesses existing talent base to deter- X X
mine whether the right mix of skills/
competencies are in place to ensure the
current and future success of the work
unit.
8. Has a working knowledge of profit and X
loss and other key financial measure-
ments used in the business, in terms of
current performance, forecasting,
and longer-term business planning.
9. Communicates the key performance/ X
profit levers for the business and man-
ages to these measures.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 315

Appendix ◆ The AMA Management Development Competency Model 315

Strategic Planning
Developing and driving a shared understanding of a long-term vision
that incorporates people’s input and describes what the organization
needs to look like and how it needs to operate in the future; determin-
ing long-term objectives and the tactics to achieve them; allocating re-
sources according to stated priorities; making sure that accountabilities
and expectations for executing a strategy are clear.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Translates company strategies into X X X
meaningful plans for the business;
connects them to people’s daily work.
2. Demonstrates how priorities fit into the X X X
company’s overall strategies (i.e., creates
a line of sight).
3. Pursues challenges that result in long- X X X
term business benefit (e.g., proposes
challenging but realistic objectives).
4. Understands where the business is going X X X
and the strategic objectives of the com-
pany and knows how to support them.
5. Allocates resources based on strategies X X X
and related objectives.
6. Stays abreast of changes in the market- X X X
place and the company’s position
relative to competitors.
7. Continuously learns and demonstrates X X
an understanding of the competitive
environment, trends in the economy,
and technology that may impact the
business; refers to these trends in con-
versations; anticipates the effect of
trends on the business; and uses infor-
mation about trends when evaluating
alternatives and making decisions.
8. Engages in scenario planning (e.g., as- X X
sesses where the organization is today
against potential changes/conditions
in the external environment) to deter-
mine the best path forward.
9. Communicates the company’s vision, X X
values, and strategy with conviction.
10. Communicates business priorities to all X X
levels of the organization.
11. Does not give up the long-term vision X
under present-day pressure; takes a long-
term perspective on problems and op-
portunities facing the organization.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 316

316 Appendix ◆ The AMA Management Development Competency Model

Strategic Thinking
Understanding the implications of social, economic, political, and
global trends; showing an understanding of market conditions and cus-
tomer needs; understanding the company’s position in the market-
place—both its strengths and its weaknesses; taking a long-term
perspective on problems and opportunities; applying insight and cre-
ativity to the development of strategies that help the organization gain
or sustain competitive advantage; proposing innovative strategies that
leverage the organization’s competitive position.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Prioritizes actions based on what is best X X X
for the organization.
2. Demonstrates knowledge of customer X X X
needs and uses this information to help
determine the way forward.
3. Understands and drives toward increas- X X
ing his or her work unit’s financial per-
formance (e.g., understands the financial
impact of plans and decisions).
4. Demonstrates an understanding of key X X
business drivers and product attributes
within his or her department (e.g., aligns
products offered with core organizational
competencies).
5. Anticipates strategic problems and op- X X
portunities and makes strategic decisions
to address them.
6. Continuously identifies and evaluates X X
viable future opportunities for the busi-
ness; selects and exploits the activities
that will result in the greatest return.
7. Demonstrates creative thinking to solve X X
strategic issues (e.g., proposes innovative
strategies that capitalize on the unique
qualities and core competencies of the
organization).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 317

Appendix ◆ The AMA Management Development Competency Model 317

Global Perspective
Understanding the international issues facing the business; appreciating
how ethnic, cultural, and political matters influence business; integrat-
ing local and global information for decisions affecting multiple sites;
applying knowledge of public regulatory frameworks in multiple coun-
tries; and making deliberate decisions about how to conduct business
successfully in different parts of the world.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Considers wide-ranging influences, X X X X
situations, and implications both inside
and outside the organization when
making plans or decisions, solving prob-
lems, or developing strategies.
2. Recognizes emerging patterns of busi- X X
ness on a global basis and formulates
strategies in line with these trends.
3. Demonstrates an understanding of the X X
international issues facing the company.
4. Communicates how international and X X
political issues may impact the business
in the short and long term.
5. Implements global decisions while X
adjusting for local perspectives where
appropriate.
6. Creates/validates long-term directions X
based on business dynamics, global
trends, and the overall strategy of the
company.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 318

318 Appendix ◆ The AMA Management Development Competency Model

Organizational Savvy
Staying abreast of what is happening across the organization; under-
standing the effects of decisions and actions on other parts of the organ-
ization; recognizing the interests of others in different parts of the
organization; understanding the influence dynamics of the organization
and using that information to establish alliances to achieve organiza-
tional objectives; understanding the organizational culture and norms
of behavior.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Approaches problems with a clear X X X
understanding of organizational and
political realities.
2. Understands how the culture of the X X
organization impacts how the work gets
done and takes this into account in
planning and decision making.
3. Understands the goals/objectives of X X X
other departments/work units and uses
this information to establish alliances
and resolve issues.
4. Understands the interdependent nature X X
of operations and the impact of various
departments/work units on workflow
within the organization.
5. Understands how his or her decisions X X
may impact others across the organiza-
tion and involves them appropriately.
6. Keeps up to date on what is happening X X X
across the organization.
7. Proactively shares information with X X X
others across the organization based
on an understanding of their priorities,
goals, and objectives.
8. Considers organizational culture and X X X X
norms of behavior in making decisions.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 319

Appendix ◆ The AMA Management Development Competency Model 319

Organizational Design
Ensuring the organization’s structure and systems support its strategies;
taking actions to optimize resources and work processes (e.g., reengi-
neering, continuous process improvement); and identifying how to or-
ganize the work (e.g., grouping responsibilities, establishing appropriate
linkages) to enhance efficiency and drive results.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Understands the importance of aligning X X
organizational structure and strategy.
2. Reviews organizational structure, X X
systems, and processes to ensure they
support change initiatives.
3. Identifies key skills within the work unit X X
and determines how to best organize
the work (e.g., grouping responsibilities,
establishing linkages) to enhance effi-
ciency and coordination.
4. Collects feedback from employees at all X X X
levels to understand what is working
and what could be improved related to
existing systems and structure.
5. Identifies and implements ways to X X
optimize resources and work processes.
6. Creates clear descriptions of the work, X X
roles, and responsibilities to help facili-
tate coordination and cooperation.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 320

320 Appendix ◆ The AMA Management Development Competency Model

Human Resources Planning

Ensuring the talent base is in place to meet organizational needs; assess-
ing current skills sets and identifying the right mix of talent to fill gaps
and ensure sustained results; accurately assessing “fit” based on the requi-
site skills and competencies as well alignment with organizational culture.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Develops clear job descriptions based X X
on the key skills and competencies (per-
sonal, interpersonal, technical, and
managerial) required for the role.
2. Clarifies the current skills and knowledge X X
within the work unit as well as its future
needs.
3. Considers the long-term implications of X X
team performance and skills in order to
ensure sustained results.
4. Makes plans to fill development or skill X X
gaps within the work unit.
5. Accurately assesses talent and makes X X
hiring decisions based on a clear picture
of what is required for success in the role
as well as cultural fit.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 321

Appendix ◆ The AMA Management Development Competency Model 321

Monitoring the External Environment

Collecting information about opportunities and threats in the external
environment that may affect work in the short or long term; analyzing
trends and looking for opportunities to enhance the organization’s
performance.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Understands industry and market trends X X X
and the impact they may have on the
business in the short and longer term.
2. Analyzes data and creates benchmarks X X
(based on the competition/industry) to
monitor the quality of products and
services and improve existing processes.
3. Identifies trends and patterns in the X
marketplace that may positively or
negatively impact the business.
4. Takes action to mitigate threats in the X
external environment.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826appx.qxp_SR 3/18/08 2:46 PM Page 322

322 Appendix ◆ The AMA Management Development Competency Model

Core Functional/Technical Skills

Maintaining up-to-date knowledge within one’s field of expertise; re-
maining abreast of developments in the industry; providing guidance
or counsel on technical matters related to one’s field; knowing how to
use company-specific technology.

Mid-Level
Illustrative Individual First-Level (Manager of Functional
Behaviors Professional Manager Managers) Manager
1. Quickly masters new technical knowl- X X X X
edge relevant to his or her position.
2. Has a comprehensive knowledge of all X X X X
existing computer systems and other
technologies relevant to his or her job
responsibilities.
3. Offers helpful advice and guidance when X X X X
others are learning technical matters
related to his or her role or function.
4. Is knowledgeable about best practices X X X
relative to the technical aspects of his
or her function/role and benchmarks
against other organizations.
5. Acquires technical/functional knowledge X X
of new areas that he or she manages
to sufficient depth to be an effective
manager of the overall function.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
Endnotes.qxp 3/18/08 3:51 PM Page 323

Endnotes

Chapter 1
1. Peter Senge, The Fifth Discipline: The Art and Practice of the Learning Organization
(New York: Currency, 1994).
2. See Douglas K. Smith, Making Success Measurable (New York: John Wiley & Sons,
1999), p. 17.
3. See Daniel R. Tobin, All Learning Is Self-Directed (Alexandria, VA: ASTD, 2000)
for further explanation of this model.
4. Shoshanna Zuboff, In the Age of the Smart Machine: The Future of Work and Power
(New York: Basic Books, 1989).
5. Return on Investment in Training and Performance Improvement Programs, 2nd ed.
(Burlington, MA: Butterworth-Heinemann, 2003).
6. For more on the misuse of ROI analysis, see Daniel R. Tobin, “The Fallacy of
ROI Calculations,” www.tobincls.com/fallacy.htm

Chapter 2
1. Marcus Buckingham, quoted in “The One Thing You Need to Know About Great
Managing, Great Leading, and Sustained Individual Success,” Human Resource
Planning, 28 (2) (August 2005), 28.
2. Stephen Drotter, Ram Charan, & James Noel, The Leadership Pipeline: How to Build
the Leadership Powered Company (San Francisco: Jossey-Bass, 2000)
3. Justin Menkes, “Hiring for Smarts,” Harvard Business Review (November 2005).
4. For example, the New York State Department of Labor has a good online worksheet
for this purpose (www.labor.state.ny.us/careerservices/findajob/assess.shtm). An-
other good resource is from Northwestern University’s Office of Career Services
(http://www.northwestern.edu/careers/students/major/skills.htm).
5. Laura Morgan Roberts, et al., “How to Play to Your Strengths,” Harvard Business
Review ( January 2005).
6. Ibid.
7. Chuck Martin, Peg Dawson, & Richard Guare, Smarts: Are We Hardwired for Suc-
cess? (New York: AMACOM, 2007).
8. Jeffrey Pfeffer & Robert Sutton, The Knowing-Doing Gap: How Smart Companies
Turn Knowledge into Action (Cambridge, MA: Harvard Business School Press,
2000), p. 6.

Chapter 3
1. See William Bridges, Managing Transitions: Making the Most of Change, 2nd ed. (New
York: Perseus, 2003).

© 2008, AMACOM, a division of the American Management Association 323

www.amanet.org
Endnotes.qxp 3/18/08 3:51 PM Page 324

324 Endnotes

2. See Michael Hammer & James Champy, Reengineering the Corporation: A Manifesto
for Business Revolution, revised edition (New York: Collins, 2003).

Chapter 4
1. Lynne Truss, Eats, Shoots & Leaves (New York: Gotham Books, 2003).

Chapter 5
1. See the Project Management Institute website for more information (www.pmi
.org).
2. Competing for the Future (Cambridge, MA: Harvard Business School Press, 1996),
p. 96.
3. Ibid., p. 83.
4. Samuel Greengard, “Moving Forward with Reverse Mentoring—Sharing the
Knowledge,” Workforce (March 2002), retrieved August 2007 from http://findarticles
.com

Chapter 6
1. Thomas P. Bechet, Strategic Staffing (New York: AMACOM, 2002).
2. Victoria A. Hoevemeyer, High Impact Interview Questions (AMACOM, 2006).
3. John Brennan, “Promotion from Within Builds Strong Organizations,” M World,
The Journal of the American Management Association, 6(1) (Spring 2007).
4. Brian Libby, How to Conduct a Job Interview on BNET. www.bnet.com/2403-13056
_23-52947.html
5. Ram Charan, Stephen Drotter, & James Noel, The Leadership Pipeline ( San Fran-
cisco: Jossey-Bass, 2001).

Chapter 7
1. Jay Jamrog, The Perfect Storm: The Future of Retention and Engagement (New York:
Human Resource Planning, 2007).
2. Ibid., p. 29
3. Daniel R. Tobin, All Learning Is Self-Directed (Alexandria, VA: ASTD, 2000).
4. Ibid., p. 14
5. Ibid.
6. Malcolm Knowles, Self-Directed Learning (River Grove, IL: Follett Publishing
Company, 1975).
7. Peter F. Drucker, Managing Oneself. Leadership Fundamentals (Cambridge, MA: Har-
vard Business School Press). Best of Harvard Business Review.
8. Daniel Tobin, op. cit.
9. “New Data Shows Distinct Skills Gap as Generation X Managers Replace Baby
Boomers,” Chief Learning Officer Industry Newsletter, February 9, 2007.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
Endnotes.qxp 3/18/08 3:51 PM Page 325

Endnotes 325

Chapter 8
1. Michael J. Marquardt, “Action Learning,” in By George: GW’s Faculty, Staff & Com-
munity Newspaper (February 18, 2004).
2. For a more thorough list, see David Ulrich and Dale Lake, Organizational Capabil-
ity: Competing from the Inside Out (New York: John Wiley & Sons, 1992), especially
Appendix 6-2.
3. From The ICF Definition of Coaching, accessed September 2007 from
www.coachfederation.org
4. The roles of human resources professionals and trainers as coaches will be dis-
cussed in Chapters 11 and 12.
5. Marshall Goldsmith, “The Six-Question Process: Helping Executives Become Bet-
ter Coaches,” accessed September 07 from www.marshallgoldsmithlibrary.com/
docs/articles/SixQuesProcess.doc
6. For example, Brown-Herron Publishing has published several study guides as
e-documents sold through Amazon.com.
7. For more information, see www.getfuturethink.com

Chapter 9
1. David L. Bradford, & Allan R. Cohen, Managing for Excellence (New York: John
Wiley and Sons, 1997).
2. David Bradford, & Allan Cohen, Influence Without Authority. (New York: John
Wiley and Sons, 2005).
3. Marcus Buckingham, The One Thing You Need to Know (New York: Free Press,
2005).
4. Chuck Martin, Smarts (New York: AMACOM, 2007).
5. Daniel R. Tobin, The Knowledge-Enabled Organization (New York: AMACOM,
1998).

Chapter 10
1. Jack Stack, & Bo Burlingham, The Great Game of Business (New York: Currency,
1994), p. 3.
2. Larry Bossidy, Ram Charan, & Charles Burck, Execution: The Discipline of Getting
Things Done (New York: Crown Business, 2002), p. 150.
3. B. Joseph White, The Nature of Leadership (New York: AMACOM, 2007), p. 4.
4. Robert Barner, Bench Strength (New York: AMACOM, 2006).
5. Ibid., pp. 166-167.
6. Daniel R. Tobin, All Learning Is Self-Directed (Alexandria, VA: ASTD, 2000). This
book contains a much broader discussion of the concept and practice of a PLE.
7. Tom Schmidt, & Arnold Perl, Simple Solutions: Harness the Power of Passion and Sim-
plicity to Get Results (New York: John Wiley & Sons, 2007).

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
Endnotes.qxp 3/18/08 3:51 PM Page 326

326 Endnotes

Chapter 11
1. Larry Bossidy, quoted by Don Redlinger, Sr. VP of HR at Honeywell Interna-
tional, in Larry Bossidy & Ram Charan, Execution: The Discipline of Getting Things
Done (New York: Crown Business, 2002), p. 167.
2. See www.i4cp.com
3. Institute for Corporate Productivity, Highlight Report—Talent Management (Tampa,
FL: I4CP, 2007), p. 13.
4. Dave Ulrich, What’s Next for HR? Part 1—Contribution: How HR Professionals May
Add Value in the Future (Provo, UT: Results-Based Leadership Institute, 2002).
5. Ibid., p. 3.
6. Ibid., p. 4.
7. Ibid., p. 8.
8. I4CP, Human Capital Strategies, Issue 225, e-mail newsletter, 2007.
9. Gregory Kesler & Paul Kirincic, “Roadmaps for Developing General Managers:
The Experience of a Healthcare Giant,” Human Resource Planning, 28(3), 26.
10. Ibid.
11. Ibid., p. 29.
12. Ibid., p. 30.
13. Ibid., p. 34.

Chapter 12
1. Daniel P. Tobin, The Knowledge-Enabled Organization (New York: AMACOM,
1997).

Chapter 13
1. Judy London, Graying of Society (Tampa, FL: Institute for Corporate Productivity,
June 2007).
2. Walt McFarland & Kate Morse, “From Briefcase to MySpace: Developing and
Managing a Multigenerational Workforce,” American Management Association,
M World (Spring 2008).
3. Stefanie Smith, “Preserving Baby Boomer Wisdom for the Next Generation,”
American Management Association, M World (Spring 2008).
4. In reality, ROI analysis is more complicated than this because it involves a time
series of benefits and costs and discounting of future benefits and costs to arrive at
a net present value.
5. We are grateful to AMA’s Florence Stone for conducting a number of interviews
for this chapter during November 2007. The following attributions are para-
phrased from these interviews.
6. Nicholas G. Carr, The Ignorance of Crowds (Booz Allen Hamilton, 2007).
7. Scott Cooper, Collaborative Innovation and Swarm Creativity in the New Workforce, a
paper prepared for the American Management Association, 2007.

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826Indx.qxp_jt 3/18/08 3:20 PM Page 327

Index

A managing people for performance,

Academic orientation, 63 100–103, 297
Accountabilities, clarifying, 103–5, 298 motivating others, 109–11, 301
Action learning, 195–201, 260–61, 271–73 networking, 89–91, 291
Action orientation, 62–65, 282 operational and tactical planning,
Active listening skills, 94 133–36, 310
Agility, 68–71, 284 oral communication, 77–82, 287
AMA Design and Development Anchors, organizational design, 156–57, 319
193–94 organizational savvy, 153–55, 318
AMA Management Development Compe- partnering, 91–93, 292
tency Model, 2, 3, 4, 43–44 problem solving, 117–19, 304
action orientation, 62–65, 282 quality orientation, 139–40, 312
building trust and personal accountabil- relationship building, 93–94, 293
ity, 57–60, 280 resilience and stress tolerance, 60–62, 281
business and financial acumen, 141–45, resource management, 131–33, 309
314 results orientation, 136–38, 311
change, managing and leading, 121–24, roles and accountabilities, clarifying,
306 103–5, 298
coaching, 111–14, 302 self-confidence, 52–54, 278
competency areas, 33–34, 45 self-development, 54–57, 279
complexity, mastering, 140–41, 313 self-management, 49–75
conflict management, 98–100, 296 strategic planning, 145–48, 315
core functional/technical skills, 161–63, strategic thinking, 148–51, 316
322 team building, 87–89, 290
creative thinking, 73–75, 286 time management, 65–68, 283
critical and analytical thinking, 71–73, top talent, developing, 114–15, 303
285 written communication, 82–84, 288
customer focus, 126–31, 308 Analytical thinking, 71–73, 285
decision making, 119–21, 305 Assessment
delegation, 105–7, 299 360-degree, 36, 38
development of, 30 manager’s versus self, 34–35
diversity, valuing, 84–87, 289 personal, 33
emotional intelligence/interpersonal
savvy, 94–96, 294 B
emotional intelligence/self-awareness, Benchmarking, 208–9
50–52, 277 Budget
empowering others, 107–9, 300 adhering to, 131
external environment, monitoring, training and development, 24
159–61, 321 “Burn out,” 56
flexibility and agility, 68–71, 284 Business and financial acumen, 142–45, 314
global perspective, 151–53, 317
human resources planning, 157–59, 320 C
influencing, 96–98, 295 Capstone strategy, 229–30
innovation, driving, 124–26, 307 Career advancement, 55

© 2008, AMACOM, a division of the American Management Association 327

www.amanet.org
6826Indx.qxp_jt 3/18/08 3:20 PM Page 328

328 Index

Career development coaching, 217 Creative thinking, 73–75, 286

Certifications, using, 169–71 Critical thinking, 71–73, 285
Change, managing and leading, 121–24, 306 Culture, of organization, 45
Cisco Certified Internetworking Expert Customer focus, 126–31, 308
(CCIE) certification, 170
Classroom training, 19 D
Coaching, 41, 111–14, 130, 201–3, 220, Data stage of learning, 17, 19
235–36, 242, 249–50, 259, 302 Deadlines, specifying, 103
Communication Decision making, 119–21, 305
electronic, 82 Delegation, 67, 105–7, 299
open, 114 Development advisor, role of, 37
oral, 77–82, 287 Developmental assignments, 41–42, 220–23,
skills, 27 248–49
of vision, 97 Development discussion, 216–17
written, 82–84, 288 Diversity, valuing, 84–87, 289
Competence, 27–48
areas of, 32–38 E
conscious, 32, 33, 34 e-learning program, 19
core, 150 Electronic communication, 82
defined, 27 Electronic training, 187–89
developing, 38–42 Emotional intelligence, 50–52, 94–96, 277,
hiring for, 166–69 294
selecting for, 165–76 Employees, developing, 177–94
turning into action, 42 Empowerment, of others, 107–9, 300
unconscious, 32, 33, 34 Enthusiasm, 97
Competencies Evaluation measures, learning contract ver-
buying versus developing, 31–32 sus, 21–24
coaching, 41 Evaluation methodology, 10
combination of, 30–31 External environment, monitoring, 159–61,
defining, 45–48 321
developing, 220–23 External networks, 90
developmental assignments, 41–42 External perspective, gaining, 203–10
formal, instructor-led training, 40
for knowing and managing business, 118 F
for knowing and managing others, 78 Feedback, soliciting, 109
leadership versus management, 28–30 First-level managers, 29, 38
screening candidates, 39 “The Five Hows,” 11
self-study, 39–40 Flexibility, 68–71, 98, 284
technical, 35 Formal, instructor-led training, 40, 220
Competency-based behavioral interviewing Functional manager, 38
(CBBI), 166, 167, 168, 169
Competency models, 29, 31 G
Complexity, mastering, 140–41, 313 Global perspective, 151–53, 317
Conferences, 207–8 Goal achievement, measuring, 19–21
Confidentiality, 57 Grammar, in written communication, 83
Conflict management, 98–100, 296 Group learning opportunities, 187–89
Conscious competence, 32, 33, 34
Consistency, 58 H
Contingency planning, 134 Higher-level management, 123
Core competence, 150 Hiring, for competence, 166–69
Core functional/technical skills, 161–63, 322 Human resources (HR), 44, 232
“Corporate universities,” 3 group, role of, 241–52

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826Indx.qxp_jt 3/18/08 3:20 PM Page 329

Index 329

planning, 157–59, 320 organizational goals to learning agenda,

role of, 4 8–15
Learning plan, components of, 16
I Listening skills, 78, 100
Incompetence, areas of, 32–38 active, 94
Influencing, as competency, 96–98, 295
Information stage of learning, 17, 19 M
Innovation Management
driving, 124–26, 307 conflict, 98–100, 296
encouraging, 236–37 higher-level, 123
Instructor-led classroom-based training, leadership competencies versus, 28–30
189–92 of people for performance, 100–103, 297
Intelligence performance, 101
emotional, 94–96 pipeline, creating, 174–76
importance of, 31 project, 134
Internet, marketing and, 69 resource, 131–33, 309
Interpersonal savvy, 94–96, 294 time, 65–68, 283
Interpersonal skills, 35 Management development, 13, 195–210
Interviews, conducting, 172–73 challenge of, 15
avoiding mistakes, 173 future of, 267–76
Intuition, 95 programs, 18
training on roles in, 257–58
K Manager/employee relationship, role of,
Kirkpatrick model, 7, 19, 21–22 211–25
Knowledge stage of learning, 17, 19 Managers
coaching role of, 70
L creative thinking in, 75
Leader, role of, 28 developing, 3
Leadership diversity, valuing, 84–87
pipeline, creating, 174–76, 228–31 effective, 108
training, 20 first-level, 29, 38
Learning functional, 38
action, 195–201, 271–73 mid-level, 38
application of, 261–62 responsibilities of, 56–57
behaviors, modeling, 233–34 role of, 28
facilitators, 254 Manager’s assessment, self-assessment versus,
guides, 258–59 34–35
measurement of, 21 Maslow, Abraham, 15
responsibility, 182–83 Measurement, of learning, 21
self-directed, 177–79 Mentors, 235–36
types, 179–81 Mid-level manager, 38
Learning, stages of, 17, 19 Motivation, of others, 109–11, 301
data, 17, 19
information, 17, 19 N
knowledge, 17, 19 Net present value (NPV), 23
wisdom, 17, 19 Networking, 89–91, 291
Learning agenda, 8–15, 16
Learning contract, 8–21, 183–85, 219 O
application of learning to measuring goal Office of Personnel Management (OPM), 2
achievement, 19–21 Open communication, 114
evaluation measures versus, 21–24 Operational and tactical planning, 133–36,
learning agenda to plan, 15–19 310

© 2008, AMACOM, a division of the American Management Association

www.amanet.org
6826Indx.qxp_jt 3/18/08 3:20 PM Page 330

330 Index

Oral communication, 77–82, 287 Self-assessment, manager’s assessment ver-

Organizational design, 156–57, 319 sus, 34–35
Organizational effectiveness, training and, 22 Self-awareness, 50–52, 277
Organizational goals, 8–15 Self-confidence, 52–54, 278
Organizational leadership, role of, 227–39 Self-development, 54–57, 279
Organizational savvy, 153–55, 318 Self-directed learning, 177–79
Orientation Self-study, 39–40, 220
quality, 139–40, 312 Slang, avoiding, 79
results, 136–38, 311 Strategic planning, 145–48, 315
Strategic thinking, 148–51, 316
P Stress tolerance, 60–62, 281
Partnering, 91–93, 292 Succession planning, 243–45
Performance management, 101 Suggestion box, innovation and, 125
Performance reviews, 60
Personal accountability, 57–60, 280 T
Personal assessment, 33 Talent reviews, 246–48
Personnel Decisions International (PDI), 185 Team building, 87–89, 290
Planning Technical competencies, 35
contingency, 134 Technical skills, 161–63
human resources, 157–59, 320 Technology, rise of, 268–71
operational and tactical, 133–36, 310 Tests, using, 169–71
strategic, 145–48, 315 Thinking
succession, 243–45 analytical, 71–73, 285
Positive learning environment (PLE), creative, 73–75, 286
181–82, 232–39 critical, 71–73, 285
Presentation skills training, 221 strategic, 148–51, 316
Problem solving, 9–10, 117–19, 304 360-degree assessment, 36, 38
Professional and industry organizations, par- Time management, 65–68, 283
ticipation in, 206–7 Top talent, developing, 114–15, 303
Project management, 134 Training
Project Management Professional (PMP), electronic, 187–89
134 formal, instructor-led, 40
Promotions, 171–72 future, 192–94
impact on organizational effectiveness,
Q 22
Quality orientation, 139–40, 312 instructor-led classroom-based, 189–92
Questioning skills, 99 internal versus external, 186
programs, 17
R providing, 185–87
Reflected Best Self exercise, 38 reaction to, 21
Relationships, building, 93–94, 293 Training group, role of, 253–66
Resilience, 60–62, 281 Trust, building, 57–60, 280
Resource management, 131–33, 309
Responsibility, learning, 182–83
U
Results orientation, 136–38, 311
Unconscious competence, 32, 33, 34
Return on investment (ROI), 7, 19, 22,
23–24
Risk, 120, 238 V
Roles, clarifying, 103–5, 298 Vision, communicating, 97

S W
Sales training, 12–13 Wisdom stage of learning, 17, 19
Screening candidates, 39 Written communication, 82–84, 288

© 2008, AMACOM, a division of the American Management Association

www.amanet.org