Trend Research

Written by
Finding the First Rung Scott Erker, Ph.D.,
and Bradford Thomas
A study on the challenges facing today’s frontline leader

Why are new frontline leaders struggling

in their jobs? They’re learning leadership
through trial and error—and are blind
to their management shortcomings.
Read on to discover what organizations
can do about it.

®
The Talent Management Expert
 Over the past couple of years we’ve been
bombarded with headlines telling us that
there is a real leadership readiness crisis
at the front line:
• “HR leaders rate their first-line managers as their ‘least ready’
workgroup, even less capable than their entry-level employees.”
2010 Bersin & Associates Report
• “Companies say they are finding they don't have the managers to
spearhead new projects or step in for departing executives, a problem
as companies try to shift into growth mode.”
August 3, 2010 Wall Street Journal article
• “Sixty percent of organizations are facing a shortage of readily
available leadership skills.”
2008 Aberdeen Group report
Each of these studies uncovers the challenges associated with the inability
to identify and develop capable, first-level leaders. But they only address
this critical issue from an organizational or human resources point of view.

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Finding the First Rung
 Finding the First Rung
Missing from this analysis, until now,
has been the perspective of the
managers themselves.
This study of 1,130 frontline managers gives them a chance to weigh in. Do they know what
it takes to be a good leader? Do they feel prepared for the challenge of leadership? Are they
getting the support they need from their managers and their organization?

The responses to these questions speak volumes about their difficulty finding footing on the
first rung of leadership:

• Only 11 percent were groomed to be a leader by their organization.

• Fifty-seven percent learned their leadership skills through trial and error.

• Only 56 percent of new managers understand what it takes to succeed.

• Eighty-nine percent of managers possess at least one leadership skill “blind spot.”

All of these factors lead to just 40 percent of frontline managers being satisfied with their
organization’s leadership development offerings. In this report, we’re going to look behind the
curtain at each of these findings and offer you advice on how to avoid the common mistakes
which keep managers from finding the first rung.

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Finding the First Rung

“People seem to think
that if you're good at
what you do, you are
also good at leading
people. It doesn't
necessarily translate
as these can be very
different skill sets.”
Legal Department Manager
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Finding the First Rung
MORE MONEY, MORE PROBLEMS?
FINDING #1: Leaders get and take the promotion for the wrong
reason.
If you ask most HR or business executives, they would tell you that they want to prac-
tice a “grow-your-own-leader” strategy at all levels. It demonstrates the organization’s
commitment to rewarding and growing their top performers.
Yet many of these organizations tip-toe around this practice because of the difficulty
they have in identifying their next frontline manager. Our research finds that only
11 percent of managers were promoted through a formal development program
(see Figure 1). The vast majority of managers were not promoted through a grow-
your-own strategy. They were given their jobs through less desirable means, such as
external hiring (33 percent), a reward for strong technical skills (20 percent) or asking
for it (9 percent). Even more disconcerting is that 11 percent of respondents said that
they were given the job by default.
FIGURE 1 HOW DID YOU BECOME A LEADER?
I was hired into a management position 33%
I was given a leadership position as a
form of reward for my technical expertise 20%
Others see me as a natural leader 12%
There was no one else for the job 11%
I was groomed to be a leader by a
development program within my organization 11%
I asked for it 9%
I was given a leadership position as a result
of my educational background (e.g., MBA) 4%
Respondents selected top choice only
Two industries are lagging behind the rest in this area. Over half (56 percent) of
business and professional services managers were external hires. Thirty percent
of all managers in high-tech roles reported that they were promoted because of their
technical skill.
 Finding the First Rung
Suffice it to say that organizations need to do a better job in giving promotions for
the right reasons. But are the managers any better?

We asked managers to tell us why they took their promotion. Their answers are
detailed in Figure 2, where it’s apparent that managers do not take promotions for
altruistic reasons. Only 33 percent said they took the promotion to “make a greater
contribution” to their company or because of a calling to “lead others” (23 percent). “I took the job for

Compare this to more self-serving reasons, such as “greater compensation” more money.”
Real Estate Manager
(50 percent), “it’s the only way to advance my career” (33 percent), and “power
and influence” (21 percent).

FIGURE 2 WHY DID YOU TAKE THE PROMOTION?

GREATER COMPENSATION 50%

Desire to broaden your skills or improve yourself 39%
It’s the only way to advance my career 33%
Desire to make a greater contribution to the company 33%
I want to lead others 23%
Power and influence 21%
Percentages reflect top two choices

Compensation was much more of a reason for accepting a promotion in the financial
services industry (59 percent) and less of a reason in high-tech (44 percent) and health
care (45 percent). While this is not a problem on the surface, over the long-term
compensation loses its potency for motivating people to be engaged in their work.
This holds true for first-level leaders as well.

Many of the respondents who took the job for money quickly became disillusioned.
They were 57 percent more likely to regret the promotion than those who wanted to
make a greater contribution. A telecommunications manager put it best when she
said, “I had a lot more work to do and the compensation was good, but not that good.”

The best advice comes from this manufacturing manager, “Assess the reason why
you want to be a manager—just don’t do it for the compensation.”

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Finding the First Rung

“I didn’t get clear
expectations from my
manager, no matter
how hard I tried.”
IT Manager
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Finding the First Rung
A TALE OF TWO PROMOTIONS
FINDING #2: Leaders learn more often through trial and error,
but more effectively through a manager’s support.
Becoming a leader for the first time should be very exciting. You have an opportunity
to broaden your skills, to take on new responsibilities—and make more money.
At the same time it can be overwhelming. Practicing in front of the mirror for days
before your first presentation to upper management. The knots in your stomach
when you have to provide negative feedback to an underperformer.
As Dickens would say, “It was the best of times. It was the worst of times.”
We asked participants what word would best describe their first year as a manager.
The overwhelming response was “challenging” (45 percent), followed by “stressful”
(18 percent), “invigorating” (8 percent), “overwhelming” (7 percent), and “complicated”
(7 percent).
If you are a glass half-full person, “challenging” can be good. You’re learning new
skills. You’re pushing yourself. If you are a glass half-empty person, “challenging”
can take on a whole different meaning—keeping your head above water.
So what does it take for a first-time manager to go from feeling invigorated about
being a leader to being stressed or overwhelmed?
It is as simple as how organizations help them learn the ropes. We asked managers
to tell us what methods have been the most influential in building their leadership
skills. As you can see in Figure 3, the two most common methods of learning to
become a manager are at opposite ends of the continuum of organizational support:
On one end, acquiring their leadership skills through trial and error (57 percent)—
and on the other, support from their managers (51 percent).
FIGURE 3 WHICH OF THE FOLLOWING HAVE BEEN THE MOST INFLUENTIAL
IN ACHIEVING YOUR CURRENT LEADERSHIP SKILLS?
Trial and error on the job 57%
Support from my manager/supervisor 51%
Formal on-the-job training 40%
Support from a mentor other than my manager 26%
Formal educational experience 22%
Professional colleagues at other organizations 12%
Books or articles on leadership 10%
Professional organizations or associations 9%
Respondents were asked to submit their top three choices
THROWN IN THE DEEP END
Top 10 Situations New Managers Weren’t Ready For

We asked managers to describe their most uncomfortable situation in

their first year on the job. Here are the 10 most common challenges
that they did not feel they were prepared to handle.

1. Reprimanding an underperformer
(selected by 204 managers)

2. Firing someone (160)

3. Going from co-worker to boss (96)

4. Learning the ropes (75)

5. Dealing with senior management (47)

6. Handling customer complaints (43)

7. HR issues such as sexual harassment (38)

8. Coaching or managing others (31)

9. Resolving conflicts (27)

10. Layoffs (19)

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Finding the First Rung

“The stress made
me physically ill.”
HR Manager
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Finding the First Rung
Trial and error on the job is far more prevalent in business/professional services
(70 percent) and health care (63 percent) and less prevalent in the high-tech industry
(41 percent). These two extremes, trial and error versus manager support, are clearly a
tale of two promotions—in terms of the effect that it has on the new manager’s confi-
dence, morale, and performance, and the subsequent effect it has on the organization.
The managers who had to learn through trial and error were 52 percent more likely to
describe their first year on the job as “stressful” and twice as likely to describe it as
“overwhelming” than those managers who learned leadership skills from their manager.
These same managers were also significantly less confident in their abilities. Forty
percent of those who learned through trial and error reported that it took more than
nine months to feel confident on the job, compared to just 27 percent of those with
a strong manager. A customer-service manager who learned by trial and error said,
“I was so overwhelmed that I thought that I was certain to fail.”
According to the respondents, all of this stress caused by learning through trial and error
takes a toll on morale as well. These respondents had more negative feelings about
themselves as leaders. Twenty percent said that level of interest in being a manager
has decreased, compared to just nine percent of those who had a strong manager.
The ‘trial and error’ learning method for leadership was linked to less positive attitudes
about their organizations. The results captured in Figure 4 demonstrate that trial
FIGURE 4 IMPACT OF LEARNING METHOD ON PERCEPTIONS ABOUT THEIR
ORGANIZATION
My manager has the knowledge to support my development
Trial & Error: 45%
Manager Support: 65%
My manager is committed to my development
Trial & Error: 32%
Manager Support: 59%
I get sufficient feedback about my performance
Trial & Error: 38%
Manager Support: 60%
My development assignments are good learning experiences
Trial & Error: 44%
Manager Support: 63%
I am satisfied with my company’s leadership development offerings
Trial & Error: 29%
Manager Support: 47%
 Finding the First Rung
and error learning causes new managers to feel like they are stranded alone,
with very little support from their managers and their organization.

At the end of the day, learning through trial and error led many of them to
rethink the whole promotion. Over one-third of respondents (35 percent) said
that they regretted being promoted. Many people echoed the sentiment of the
HR manager who said, “I like my old job better” or the retail manager who
laments, “It seemed like more stress than it was worth.” “I’m struggling because

All of these negative feelings and lack of skills have a dramatic impact on frontline I can’t do the job.”
Engineering Manager
leader performance and the performance of their teams. Twenty percent of
the trial and error managers felt unprepared to take the role, compared to nine
percent who had managerial support. Overall ratings suffer as well with 18
percent viewing themselves as “poor” or “fair” as a leader compared to just
seven percent of those who learned from a manager. While both groups of
managers rated themselves similarly on their technical knowledge and expertise,
managers who relied on trial and error rated themselves lower on each of the
remaining six critical managerial competencies (See Figure 5).

FIGURE 5 CONFIDENCE IN LEADERSHIP COMPETENCY BY LEARNING METHOD

Trial and Error Manager Support

Coaching 34% 40%
Communication 43% 55%
Decision Making 51% 55%
Delegating 29% 34%
Gaining Commitment 28% 38%
Planning & Organizing 53% 59%
Technical Knowledge & Expertise 48% 46%

Managers who learn through trial and error are much less confident in their skill
as a leader than managers who have the support of their boss. Several managers
mentioned how the lack of proper training and support caused their performance
to suffer. A sales manager told us, “I think I’m not a very good leader. I can’t
seem to grasp when to delegate or how to coach properly.”

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Finding the First Rung
 ADVICE FOR GETTING THROUGH
THE FIRST YEAR
Survey respondents were more than willing to offer their advice to new managers on

how to survive the first year. The following quotes are representative of the most

common suggestions.

• “Ask for advice and admit when you don't know something.”

• “Have confidence in your abilities. Don't worry about what you have no control over.”

• “Seek out a mentor and focus on learning as much as you can about the hard stuff.”

• “Be true to yourself and know your strengths and weaknesses.”

• “Everyone makes mistakes. All one can do is learn from those mistakes and
continue on.”

• “Be patient—take time to learn the dynamics of the organization, how to get
things done, and how to use the abilities of the staff.”

• “Listen to everyone and don't be afraid to ask others for their opinions.
It's better to ask for help to make the right decision than to make wrong decisions.”

• “Everyone has different things that motivate and make them excel—find them.”

• “Earn respect. It's not a given.”

• “Always be accountable for your actions.”

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Finding the First Rung
 Finding the First Rung
DAZED AND CONFUSED

FINDING #3: Large numbers of leaders still don’t understand

how to be effective.
We now know that managers tend to struggle in their first year. So are we to assume
that at the one-year mark all managers magically have the skills and behaviors that
“I wasn’t familiar
it takes to succeed?
with the skill set.”
We asked managers if they have a good understanding of what it takes to be a IT Manager
successful leader in their organization. Overall, 74 percent said they have a good
understanding of their role. Figure 6 breaks down understanding by tenure,
showing that the longer they have been in the position, the better they feel they
understand it. Having said that, even at six or more years on the job, 20 percent of
managers say that they don’t fully understand what it takes to succeed.

FIGURE 6 PERCENTAGE OF LEADERS WHO REPORT UNDERSTANDING THEIR ROLE

TENURE AS LEADER % AGREEING

<1 year 56%
1-2 years 70%
3-6 years 76%
>6 years 80%

IT managers have the most difficulty understanding what it takes to be successful.

Only 67 percent said they had a good understanding. One IT manager says bluntly,
“I wasn’t familiar with the skill set.”

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Finding the First Rung

“I don’t have time to
listen to my staff; my
workload does not give
me any opportunity to
effectively supervise.”
Administrative Manager
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Finding the First Rung
Not surprising, but concerning nonetheless, is that many who say they don’t under-
stand the job are right. We asked them to rate the importance of critical leadership
skills to their success on the job. While 92 percent of the managers who know the
job felt “Decision-Making” was critical, just 75 percent of those who don’t understand
the job rated it as critical. In fact, across the board, managers who said they don’t
fully understand what it takes to succeed rated the critical competencies 12-17 per-
cent lower than those who said they knew the job.
For many of the respondents, the transition from an individual contributor role was
difficult because they couldn’t move from a “doer” mindset. A consulting manager
told us that “going from being a doer to having to delegate work and manage
resources is easy on paper, but hard in reality.” Another manager said that “It's hard
to let go of what you know and [what] you're good at and trust others to do it.”
The net result of this “doer” mindset is that ineffective managers could be spending
time on the wrong activities. Figure 7 shows that 30 percent of managers spend the
most time on administrative tasks compared to 20 percent on execution and only
15 percent on coaching direct reports.
FIGURE 7 HOW IS YOUR TIME ALLOCATED?
15%
One-on-one
with direct reports
30%
Administrative
20%
Executing
strategy
18% 17%
Planning Your own development
This allocation of time is echoed by a number of managers in the survey. An opera-
tions manager said, “I’m always running short on time. Time management of key
issues is very important to staying on top of everything and getting everything done.”
A project manager discussed the lack of time spent with direct reports. “The work-
load was so heavy that it made it very difficult to give any focus on leading.”
 Finding the First Rung
SEEING BLIND SPOTS

FINDING #4: Leaders over-rate their skills, and may be oblivious

about areas they need to develop.
Objects in the mirror may be bigger than they appear. This is not just an adage for
when you drive; it also applies when you reflect on your skills as a manager.

The managers in the study are no different. As seen in Figure 8, they have over-
whelming confidence in their leadership skills, with 87 percent of managers rating
themselves as “good” or “excellent” in overall leadership skills. When asked why
they rated themselves the way they did, the most common response was the modest
“there is always room for improvement.” But a significant number of respondents
voiced an opinion similar to this one from a public-sector marketing manager,
“Because I am excellent at all I do!”

FIGURE 8 HOW WOULD YOU RATE YOUR OVERALL LEADERSHIP SKILLS?

65%

22%
12%
1%
Poor Fair Good Excellent

Truly see yourself—warts and all

Managers need to realistically evaluate their level of skill in each success area—warts
and all—in order to realistically focus on improvement. For an overwhelming majority
of managers this is like looking in a distorted fun-house mirror. In a separate study,
DDI asked more than 200 managers going through a frontline leader assessment
program to rate themselves in seven leadership skills: coaching, communication,
delegation, gaining commitment, planning & organizing, problem analysis, and
judgment. We compared their self-ratings to their actual performance during the
assessment.

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Finding the First Rung
 We found that 89 percent of the managers had at least one leadership skill where
they rated themselves above their actual skill level. We call these “blind spots.”
Fifty percent of the managers had three or more blind spots. In most cases these
“blind spots” were areas they thought were “strengths” but they were actually just
“proficient.” Forty-five percent of managers had at least one serious blind spot—that
is an area they thought was a “strength” but in reality they scored “deficient.”

The most common blind spots were in “Gaining Commitment” (52 percent) and
“Judgment” (46 percent). The least common blind spot was in “Delegation” (36 percent).

Blind spots are the Achilles’ heel of managers. Someone who thinks he has good
interpersonal skills may in fact be exhibiting behaviors that erode trust among his
direct reports. Someone weak at problem analysis may make a hasty decision prior
to gathering all the necessary information. Lacking the self-insight to know that one
needs to improve, managers will turn down—or not fully engage in—development
opportunities that would fill in missing skills. When the disparity persists, it’s to the
detriment of the individual and his or her organization and teams.

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Finding the First Rung
HOW CAN YOU HELP THEM FIND
THE FIRST RUNG?
Based on the research, new frontline leaders have a hard road ahead of them—
and many aren’t sure how they’re going to navigate it.

Here’s our advice on how organizations can help.

Understand why they want to be a leader.

Money and power aren’t enough of a reason to want a leadership role. Managers
should also aspire to guide and motivate others, to want to make bigger things
happen—and, most importantly, relish and ensure the success of the individuals on
their teams. If someone’s motivations aren’t aligned with the success of others and
with developing their own skills, they may not be the leader you want.

There are two simple things you can do to ensure that your new managers are
taking the job for the right reasons. First, ask specific questions about motivation
during the hiring and promotion process. One question you can ask is “Tell me
about a work situation that included responsibilities that you really dislike. Why
did you dislike this aspect of the job?”

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Finding the First Rung
 The second thing you can do is paint a realistic preview of the job for them.
Let them know that they may have to work longer hours, make tough personnel
decisions, or have the added pressure of working with senior management.
To this end, some organizations place aspiring leaders in temporary management
positions to let them ‘try it on’ before committing. Providing potential leaders with a
compre-hensive picture of the challenges they are expected to face will help them
decide whether they are up for the responsibility.

Give them more clarity.

Many participants expressed frustration similar to this IT manager: “I didn't get clear
expectations from my manager, no matter how hard I tried.” In fact, 43 percent of the
participants said that their transition to a first-time manager would have been easier
with “a more clear understanding of the expectations and accountabilities of the role.”

So how can you give them better clarity? In addition to specific job responsibilities,
provide leaders with a list of the skills and behaviors critical for the job. This should
include descriptions of what separates strength or proficiency from poor perform-
ance. Take “Delegation,” for example:

Managers who excel at delegation carefully select individuals

to accomplish a task by considering skills, experience, and
growth opportunities. They offer guidance to help their direct
reports succeed without taking away responsibility for action.
Many managers struggle with delegation because they are
afraid to give up control. By delegating effectively, managers
will get more work done, develop stronger team resources, and
build the overall level of engagement and success necessary
for associates to excel.

Organizations also need to educate and reinforce the guidelines. Every manager in
the organization should know what is expected of them and be held accountable for
that level of performance and behavior. Finally, teach the managers of first-level
leaders how to recognize the behavior—or lack of—and how to provide feedback
and just-in-time coaching.

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Finding the First Rung
 Finding the First Rung
Take their blinders off.

First-level leaders need accurate, unbiased information about where they stand in
terms of their performance and capability as a leader. Simulation-based assessment
is an effective tool that provides objective, in-depth insight into an individual’s
strengths and areas for improvement. The assessment process can accurately
evaluate the behaviors and skills that are critical for success as a leader.

Once they have received feedback from the assessment, the challenge becomes
getting them to accept it and willingly take the necessary action to change behavior.
One way to gain their acceptance is to ask them to seek the perspective of their
peers or direct reports. Asking coworkers to provide honest and open feedback
about specific behaviors they have observed can be a real eye opener for someone
coming to terms with a blind spot.

Place a priority on development.

Leaders should leverage the results from assessments to facilitate meaningful

development discussions with their manager. These discussions should lead to
formal development plans with specific skills to be learned, specific ways to apply
those skills on the job, and formal measures to track progress. According to our
respondents, this is one practice that isn’t followed very well—only 33 percent of
first-level leaders have a specific, written development plan that they have agreed
to with their manager.

Build their managers’ skills.

To create a development-rich environment, provide a first-level leader’s manager

with the skills he or she needs to support development. The role of the “boss” is often
overlooked in terms of its importance in creating an environment where development
is supported. If ignored, the best assessment and development efforts at the first-
level can be wasted.

A multi-layered leadership development effort will provide the biggest pay-off and
lead to increased leadership bench strength (and improved succession pools for
leadership at higher levels). This includes training them on how to establish strong
development plans, to provide balanced, timely feedback, and to recognize coaching
opportunities as they occur.

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Finding the First Rung
 DDI’s Finding the First Rung Research
In July-August 2010, Development Dimensions International surveyed 1,130 leaders
in the United States. Their responses inform the findings contained in this report.
The demographics of those surveyed are:
> Gender: 43% male, 57% female
> Geography: 100% United States
> Age: 9% 25-29, 24% 30-39, 29% 40-49, 12% 50-54, 26% 55+
> Tenure: 18% < 1 year, 11% 1-2 years, 13% 3-4 years, 57% 5+ years

Acknowledgments
Editorial: Colby Fazio, Elizabeth Speed Kabus, Jennifer Pesci-Kelly,
Ashley Roppo, and Sue Wilson

Design: Stacy Infantozzi and Susan Ryan

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Finding the First Rung
 Finding the First Rung
About the Authors
Scott Erker, Ph.D., is the senior vice president of Development
Dimensions International’s (DDI) Selection Solutions. Scott’s global
perspective on workforce selection comes from his work with
organizations around the world on personnel hiring strategies.
Scott is invited to deliver presentations internationally on hiring trends
and is frequently quoted in business and industry publications including
The Wall Street Journal, HR Magazine and Inc. magazine. He is also
a member of RecruitingTrends.com's editorial board and regular
columnist to the site.

Bradford Thomas, is a product manager with Development

Dimensions International (DDI). Brad has more than 18 years of
business development, consultative sales, and marketing experience.
He is the co-author of six research studies on leadership readiness
and sales talent management. Brad has been published in the
SmartBrief on Leadership, Workforce magazine’s “Dear Workforce”
and DDI’s blog Talent Management Intelligence. Contact him at
brad.thomas@ddiworld.com.

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Finding the First Rung
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