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ECOLAB’S TALENT PIPELINE:
DEVELOPING GREAT
LEADERS FROM WITHIN
BEST PRACTICES INSTITUTE
AUGUST 6, 2009
Sue Metcalf
Mike Meyer
Bob Barnett
VP, Talent
Development
Ecolab, Inc.
SVP of
Human Resources
Ecolab, Inc.
EVP and Partner
MDA Leadership
Consulting
1
ECOLAB, INC.
 Global leader in cleaning, sanitizing, food safety,
and infection control products and services.
 Serves customers in 160 countries.
 26,000 employees.
 2008 sales revenue of $6.1 billion.
2
Q: HOW FAMILIAR ARE YOU WITH THE
LEADERSHIP PIPELINE MODEL?
a) Very familiar
b) Somewhat familiar
c) Vaguely familiar
d) Not at all familiar
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THE ‘LEADERSHIP PIPELINE’
 Described by Charan, Drotter, and Noel in 2001
 Based on the natural hierarchy of work in most
organizations.
 Each leadership level in an organization calls for new
skills and a different focus to execute more complex
responsibilities.
 Movement up the hierarchy requires transition through a
series of critical leadership passages made possible by
the development of the skills required at the next level.
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BUSINESS CONTEXT
Committed to 15% annual growth for 5 years in 2003 –
Ecolab would double its size by 2007 requiring…
– Capturing greater share in current markets.
– Entering new market segments.
– Developing a broader range of cleaning and sanitizing
products and services.
– Significantly expanded efforts and operations globally.
Lack of available leadership talent was viewed as a
primary constraint.
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ECOLAB’S CULTURE
 Strong sales culture – 60% of Ecolab employees
in sales or sales/service roles
 5 business “drivers”…
– Talent Development. Preparing associates for current and
future success.
– Leadership. Creating a vision, engaging others, and leading
by example.
– Relationships. Identifying and building networks to advance
business initiatives.
– Innovation. Fostering an environment that drives creativity
and risk-taking.
– Delivering Results. Achieving goals by effectively managing
resources to get things done.
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LINK TO ECOLAB’S CULTURE
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THE ECOLAB TALENT PIPELINE
Distinct Roles
Unique Skills
and Work Priorities
Targeted
Development
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THE ECOLAB TALENT PIPELINE
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Managing Managers
SUCCESS INDICATORS AT EACH LEVEL
• Creates opportunities for managers to gain
new skills.
• Holds managers accountable for managing
and developing others.
• Is seen as supplier of quality management
talent.
• Ensures others understand the strategy and
how it relates to what they do.
• Sets the standard for excellence in
teamwork.
• Influences effectively upward and across
the organization
• Maintains an effective external network.
• Breaks down communication barriers.
• Enhances direct reports’ relationshipbuilding skills.
• Identifies new, value-added work to drive
growth.
• Achieves growth by leveraging other parts
of the organization.
• Creates a culture where growth is expected.
• Takes strategic action to drive customer
retention, account penetration, and new
customer acquisition.
• Develops and implements long-term plans
that create new opportunities and drive
growth.
Leadership
SUCCESS FACTORS BY BUSINESS DRIVER
• Leads by
example – goes
the extra mile
with associates
and customers.
• Willingly accepts
supervision and
work direction.
• Is someone
others want on
their team.
• Instills a sense
of identity and
purpose in team
members.
• Articulates the
business
direction and
ensures it is
embraced by the
team.
• Is sought out by
others as a
mentor or
coach.
• Ensures others
understand the
strategy and
how it relates to
what they do.
• Sets the
standard for
excellence in
teamwork.
• Influences
effectively
upward and
across the
organization.
• Is viewed with
confidence and
credibility.
• Models
leadership and
business best
practices.
• Creates and
executes an
effective
strategy for the
function.
• Excels in
strategy
development
and execution.
• Drives team
performance
based on
strategic
requirements.
• Partners
effectively
across divisions
and businesses.
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KEY PASSAGES IN THE TALENT PIPELINE
Managing Self to
Managing Others
Managing Others to
Managing Managers
Managing Managers Function Manager to
to Function Manager Business Manager
• From achieving results
individually through
technical or
professional skill to
achieving results
through others.
• From teamwork to
team building.
• From personal
planning to planning
for the team and
individual results.
• From achieving results
through others to
achieving results
through managers.
• From a top line
revenue focus to
profitable results.
• From teambuilding to
organizational building.
• From planning for a
team to planning for
multiple teams’ results.
• From achieving results
through managers to
achieving results for
the function.
• From profitable results
to state-of-the-art
results.
• From organizational
building to functional
excellence.
• From planning for
teams to planning for
functional or divisional
results.
• From achieving results
through functions to
achieving results
through
comprehensive
business management.
• From state-of-the-art
results to competitive
advantage.
• From functional
excellence to customer
value.
• From planning for
function results to
creating long-term
strategic plans.
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EXAMPLES
In 2008…
– 2000 new hires in the US
– 250 hiring and promotional decisions at the “managing
managers” level (180 promotions, 70 outside hires)
– Doubled the number of General Manager roles since 2003
– 80 hiring and promotional decisions at the executive level
(30 outside hires, 50 promotions)
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FOCUS ON DEVELOPMENT
Assess Capabilities
Compare
Results
Development Planning/IDP
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KEY SUPPORT SYSTEMS & PROCESSES
Individual Focus
• Talent Pipeline Manual
– launched globally
• Leadership
Assessment
• On-boarding/Career
Start Program
Organizational Focus
• Training at Key
Transition Points
• Focus on Potential
• Talent Reviews
• Talent Council
• 180 Feedback & IDPs
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ECOLAB’S HIGH POTENTIAL MODEL
High Potential
Associates
Commitment
to Ecolab
Level of
Capability

Consistently delivers results

Quick study, clear thinker

Ability to take on more

Strong leader
Ambition to
Move Up

Emotional
Commitment

Rational – believe
staying is in their
best interest
Extent associate desires:

Recognition

Discretionary effort
– does what it takes

Advancement
High intent to stay

Influence


Financial rewards
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RESULTS
265% increase over 2001 sales revenue.
Talent Pipeline fully implemented worldwide.
Top two tiers of executive-level leaders are fully in place.
Pool of ready-now general manager candidates has increased
three-fold.
 Identified and developed record numbers of high potential leaders
who are ready to assume greater leadership responsibilities.
 Record number of developmental job rotations and cross-divisional
moves.
 All associates regularly complete the 180° assessment; discuss
development with their manager; and have created practical and
realistic development plans.
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LESSONS LEARNED
Link to business need and strategy
Consistent and active top management engagement
Clear, understandable framework – widely communicated
Cannot ignore the organizational culture
Idea is simple, implementation is complex; defining
competencies (by level) is hard
 Accessible, practical tools and support for development
 Need for variety of supporting systems and processes
 Ongoing focus – process never ends
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Contact Information
 Mike Meyer:
[email protected]
 Sue Metcalf: [email protected]
 Bob Barnett: [email protected]