ASTD 2008 International Conference & Exposition

Session SU215
Chevron’s Structured Leadership Development Process

Beverly Momsen
[email protected]

John Schwenger
[email protected]

Session Learning Objectives:

1. Use the key concepts from Chevron’s leadership program to improve

your organization’s leadership development process.

2. Review challenges and successes in deploying a global leadership

program and apply elements to your own initiatives.

www.astd.org

1
 Chevron is . . .

„ The sixth largest company in the world, based

on revenues.
„ One of the world’s largest integrated energy
companies; the second-largest U.S.-based
global energy company.
„ Involved in every aspect of the energy industry.
„ The largest private producer of renewable
energy.
„ Headquartered in San Ramon, California.
„ Traded on the New York Stock Exchange (NYSE)
as CVX.
© Chevron 2008 1

Chevron
A World Class Global Energy Company

59,000 employees

Explore for,
produces and
transports crude
oil and natural gas

Refines, markets Chevron

and distributes Headquarters

fuels & other

energy products
and services

Generates power
and produces
geothermal energy Exploration & Production
Refining
Develop biofuels Chemicals
and renewables

© Chevron 2008 2

2
 The Chevron Way

At the heart of People

The Chevron
Way is our
Vision:

… to be the Partnership
global energy
company most
admired for its …
Performance

© Chevron 2008 3

Invest in People To Achieve Our

Strategies

People are the most important element in our value

proposition
„ The stakes for executing Chevron's Invest in People
Strategy are higher than ever due to intensifying competition
in the energy business, and the increasing complexity of
sourcing talent—both inside and outside the U.S.
„ Having the right people in the right place with the right talent,
is key to getting our work done in a timely and reliable way.
Investing in people is front in everyone's mind.
„ We need to ensure that our focus and activities in this area
attract, develop, recognize and retain people who help us
produce top competitive results as the internal and external
environment changes.

© Chevron 2008 4

3
 Leadership Development is part of Talent
Management in Delivering Business Results

The People Strategy: Invest in people to achieve our strategies

• Create a world-class, high-performing global work force

• Develop leaders who deliver superior results in a diverse,

culturally complex global energy company

• Develop and manage our talent to ensure we have the

capabilities, experience and skills needed to execute our
strategies

© Chevron 2008 5

Leadership Development is part of Talent

Management in Delivering Business Results
(continued)

• Strategic Staffing • Performance Management

• Enterprise and Organization • High-Potential 3x3
Succession Planning Assessment
• Retention strategies for • Enterprise Potential Criteria
key talent

Havingthetheright
right Talent
Having Assessment
Talent Needs and peopleininthe
theright
right
people
Gap Analysis placewith
withthe
the
place
righttalent
right talent

Talent Sourcing/ Selection Talent Development

• Global Recruiting • Leadership Development Plans

• Selective Experienced Hiring • Leader Feedback and Coaching
• Job Posting • Mentoring
• Enterprise Potential Process • Key Development Experiences
• Managed Moves and • Job Assignments
Developmental Assignments • Cross-Opco Moves
• Cross-Opco Candidate
Sourcing

© Chevron 2008 6

4
 About Global Workforce Development
Leader Learning and Development
„ Structured Leadership Development Process
„ Dynamic Leader Framework
„ Corporate Succession Planning Process
„ Executive Coaching

Global Organization Learning and

Development
„ Consulting
„ Organizational Development
„ Change Management
„ Coaching Leaders

© Chevron 2008 7

About Global Workforce Development,

continued

Learning and Development Technologies

„ Center of Expertise for the Corporate Learning
Management System; L&D technology solutions to
enhance business performance

Global Individual Learning and

Development
„ Talent Management
z Integrated Strategic Staffing; Performance
Management Process (PMP) and Development
Planning; Multi-Source Feedback (MSF) Process;
New to Chevron Process (Employee On-
Boarding)
© Chevron 2008 8

5
 Chevron’s Leadership Development Story:
Tactics for Building Bench Strength

„ Laying the Foundation:

z The Chevron Way – Business Strategy and
Values
z Operationalizing The Invest in People Enabling
Strategy
„ Defining Leader Expectations
z Dynamic Leader Framework

„ Creating a Leadership Development System

„ Measuring the Impact on the Business

© Chevron 2008 9

The Chevron Way - Dynamic Leader

Framework

„ The Dynamic Leader Framework was revised to

ensure a clear line-of-sight to the Chevron Way.
z Focus on the critical few leadership behaviors that
differentiate our performance and improve our
competitive position.

z Differentiate leaders in terms of their ability to

create an environment for high performance (CLC
research).

z Support our long-term strategy for the next five

years of creating sustained superior performance
and achieving higher valuations in the marketplace.

© Chevron 2008 10

6
 Dynamic Leader Framework

Leader Expectations Critical Capabilities

Set Clear Vision and Direction Make Sound Business Decisions

Leaders set clear vision and direction to achieve top
performance over the long-term. We make sound
business decisions that ensure success today and in
the future. We focus on the critical few priorities and
Build a Foundation for Future
the forward-looking capabilities needed for enterprise
sustainability.
Success

Engage the Team Gain Commitment

Leaders engage the team to ensure commitment and
to maximize discretionary effort.
Draw Out the Best in Others

Drive for Superior Results Drive for High Performance

Leaders drive for superior results to deliver world-
class day-to-day performance. We drive for high
performance to enable business success. We manage Manage Performance – Your Own
our individual and team performance effectively. We
encourage ingenuity to seek new opportunities and and Your Team’s
out-of-the ordinary solutions.
Encourage Ingenuity

© Chevron 2008

Chevron Leadership Pipeline:

Emerging Leaders to Enterprise Leaders
Working toward Systematic & Accelerated
Development ….

Individual Supervisor / Manager General Manager

Contributor Team Leader Enterprise
Leader
(0 – 5 years) (5 – 10 years) (10 – 15 years) (15 – 20 Years)

Work Experience
Supervisor Essentials Manager’s Essentials Chevron Advanced
People Leadership 1 Chevron Leadership Management
Program
Forum
People Leadership 2

© Chevron 2008 12

7
 Vision of Success - 2009

Within 5 years, a fully

institutionalized leadership
development system will
improve leadership
development at all levels,
ensuring a supply of quality
leaders to achieve our
strategies.

© Chevron 2008 13

Structured Leadership Development

Tactical to Strategic
strategic; CHAMP
Success in (High potentials)

Transition CLF
(High potentials)

Tactical focus; Manager

Success in role
Essentials

t
Tactical focus; People Leadership 1 m
en
(Experienced Supervisors – lop
Transition after 1 year) ve
De
k hi
p
People Leadership 2 or de
rs
Supervisor ew or
a
(in year 2) Le
Essentials ram tion f Set Clear Vision
(New Supervisors
r F da
and Direction
un
- 1st 6 months)
de fo
ea
e
th
L rm •Make Sound
Future Leader’s
ic rs
fo
Business Decisions
Forum (FLF) am av
io
•Build a Foundation for
n eh
Dy
(High potentials) B
er Future Success
ad Engage the Team
Le
ic
m
na •Gain Commitment
Dy
–
ay •Draw Out the Best
W
ro
n in Others
ev
Ch
e
Th Drive for Superior Results
•Drive for High Performance
•Manage Performance – Your
Own and Your Team’s
© Chevron 2008 14
•Encourage Ingenuity

8
 Future Leaders Forum
Objectives

„ Identify the opportunities and challenges that

Chevron leaders face in today’s global business
environment.

„ Understand what Chevron expects of their leaders as

it relates to The Chevron Way and Dynamic Leader
Framework.

„ Obtain knowledge and skills to develop a foundation

for effective leadership.

„ Create a plan for maximizing your impact and

influence in the organization as an individual
contributor.

© Chevron 2008 15

Supervisor Essentials Workshop

Objectives
„ Explain how skills and behaviors based on The
Chevron Way are vital for leaders at all levels of the
company.

„ Describe personally the value diversity brings to

business success and demonstrate behaviors
consistent with Chevron's culture.

„ Explain tools, resources and managerial practices

that can be applied on the job.

„ Demonstrate the critical few behaviors and

communication skills that are key to shaping
performance.

© Chevron 2008 16

9
 People Leadership 1
Objectives
„ Identify key drivers in managing high performance,
engagement and retention

„ Create performance standards and expectations that

are specific and aligned to organizational success and
strategy

„ Identify and practice ways to coach employees for

performance improvement and/or development

„ Grow self-awareness as a leader to support the high-

performance environment and employee engagement

„ Apply tools that will help shape behavior and motivate

performers.

© Chevron 2008 17

People Leadership 2
Objectives

„ Identify and apply high-impact behaviors that support

Dynamic Leader critical capabilities and Chevron
leadership expectations.

„ Understand how and when to use different

management styles to leverage individual performance.

„ Demonstrate skills and behaviors that facilitate high

team performance.

„ Learn to recognize and support team member

distinctiveness and how best to coach employees to
contribute and grow in their careers.

„ Learn to encourage and reward creativity, finding

unexpected and practical ways to solve problems.
© Chevron 2008 18

10
 Manager Essentials
Objectives
„ Identify leader of leader roles and developmental tools
that will enhance the success of leadership transition

„ Identify possible transition pitfalls for first time leaders

and how to prevent them

„ Apply high impact Dynamic Leader Behaviors to drive

engagement, performance and retention

„ Explore enterprise thinking and behaviors to deliver

results for Chevron

„ Reinforce leader development and resources to grow the

leaders reporting to you

„ Develop a personal leadership story and point of view to

explain direction and expectations of your team

© Chevron 2008 19

Chevron Leadership Forum

Objectives
„ Assess and evaluate Chevron's current competitive
performance using data from Strategic Planning
Group
„ Expand knowledge of execution challenges around
global corporate strategies and business plans
„ Discuss and calibrate priorities on an enterprise-wide
level with their personal leadership projects
„ Improve feedback and coaching skills to build a
higher performance culture
„ Strengthen existing and create new cross-opco
networks while sharing best practices, and
discussing integrated business opportunities

© Chevron 2008 20

11
 Chevron Advanced Management
Program Objectives
„ Expand general manager competence and awareness of
enterprise-wide leadership challenges
„ Develop a peer network of Chevron’s high-potential
leaders
„ Enhance global mindset and awareness of global
implications of Chevron’s business challenges and
opportunities
„ Apply business knowledge, concepts and tools from world-
class experts
„ Gain deeper understanding of our strategic direction
through interactive dialog with Chevron’s executive
leaders
„ Strengthen self-awareness as a leader and expand
personal leadership effectiveness
„ Develop and present recommendations for action on a
© Chevron 2008
business issue facing Chevron 21

Chevron Structured Leadership

Development Deployment

„ Partner with GOLD in Deployment (Global

Organizational Learning and Development)

„ Facilitators (GWD, embedded L & D, External)

„ Vendors (AchieveGlobal, Novations, Center for

Leadership Studies, Grove)

„ Community of Practice

„ Metrics

© Chevron 2008 22

12
 Challenges

„ Governance within Chevron

„ Languages for program delivery

„ Sustainability of learning

„ Consistency of program content in each region

„ Continuous improvement and subsequent updates

to all facilitators

© Chevron 2008 23

Successes to Date

1. Measurement and Evaluation:

z Level 1-2 data for past 2 year - Average of 91%
Good to Excellent rating by participants.

z Level 3 – 4 initial trends - Success cases identified

in each leadership development program that
impact the business objectives.

2. Structure Leadership Development has executive

support.

3. Increased request for other GWD Offerings (New

Leader Assimilation, Multisource Feedback, other
consulting opportunities)

© Chevron 2008 24

13
 Lessons Learned

„ Line leader support is critical to success of overall

program on all levels.

„ Guest presenter facilitation capabilities should be

assessed and may require coaching and feedback.

„ Quality control is dependent on regional

partnership and communication.

© Chevron 2008 25

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