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Roadmaps for developing general managers: the experience of a healthcare giant.

By Kirincic, Paul
Publication: Human Resource Planning
Date: Thursday, September 1 2005

General management talent depth is an obstacle to growth in many large, multi-divisional corporations across diverse industries. Succession-planning practices usually stop short of producing real development actions for high-potential GM candidates. Utilizing an established talent-pipeline model,

general management jobs in a Fortune 20 healthcare giant were content analyzed and a set of five GM archetypes identified. A GM experiences model was created and leadership competencies were mapped to it, leading to a set of career-development roadmaps for growing current and future general managers across the enterprise. Insights from the model can be readily adapted to most large, multi-divisional corporations.

General managers (GMs) are critical members of corporate leadership teams in most major corporations, often directly influencing business results (Charan, et al., 2001). In divisionalized companies, the GM is the critical link between corporate governance and the performance of operating units. In the multi-billion dollar enterprise, these roles exist at multiple levels of the organization, and they are the critical target for talent selection and management development. Many companies identify general management depth as a strategic capability, directly affecting their ability to execute growth strategies. Most rely on GM-incumbent talent pools to feed top executive succession plans, including future potential candidates to replace the CEO.

The general management talent gap is well known by CEOs and top HR officers. Cynthia McCague, senior human resources vice president at the Coca-Cola Company, argues: "bench strength for division presidents is a critical strategic issue for us. We cannot meet our global growth objectives without a steady stream of future GM talent."

The nature of general management roles varies widely, often within a single large corporation, making it difficult to define effective career paths and development experiences. GMs may manage billions of dollars in sales, with complete operating responsibility for all elements that contribute to before-tax earnings. Group executives, a higher-level of general management, may manage multiple division-GMs, sometimes organized into strategic business units, sometimes acting more as organizational span-breakers. In other cases GMs are cross-functional leaders with a primarily operational focus, often managing thousands of people. Still other GMs, in international environments, manage small teams of people charged with marketing, sales, and operations in diverse and difficult geographic footprints in Africa, Asia, and other developing markets.

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