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"Leadership development is critical to support our growth in Russia and the CIS. Over the years CBSD has developed a good understanding of our Caterpillar culture and strategy in the CIS. I believe this has been instrumental to the continuing success of the program."

- Caterpillar


Leadership Development

Situation

In 1997, Russia looked like the next great market for rapid economic expansion. Many multinationals saw a golden opportunity to establish a significant presence, including Caterpillar, the world’s leading manufacturer of construction and mining equipment. But in August 1998 the bubble burst in Russia. While many foreign companies quickly pulled out, Caterpillar made a strategic decision to stay. Realizing they needed to rein in costs by replacing expatriate management, Caterpillar turned to Thunderbird’s Center for Business Skills Development (CBSD), based in Moscow, to design an accelerated leadership development program for its high potential Russian managers.

Thunderbird Approach

Starting in 1999, CBSD/Thunderbird Russia began working with 15 of Caterpillar’s high-potential Russian managers, leading them through a six month process of self-discovery, management and leadership development, and building relationships via coaching and mentoring. The solution leveraged insight from the Thunderbird Management & Leadership, Project Leadership and Human Resources programs. Caterpillar utilized feedback assessment, live sessions of several days each month, e-learning between sessions, and project work designed to apply lessons learned on the job. The first graduates received high-profile recognition including a diploma from Thunderbird Russia and Caterpillar management, establishing the program as a development opportunity for top managers.

Caterpillar Result

CBSD/Thunderbird Russia and Caterpillar are now on the seventh year of partnership in developing the future leaders in the Commonwealth of Independent States (CIS):

  • The program has expanded to Caterpillar partners and dealers throughout the CIS.
  • Out of the 15 participants in the initial program, 11 were promoted to management positions within 15 months and 5 expat positions were replaced by program participants.
  • The Caterpillar vision and commitment to Russia has paid many dividends including a number of joint ventures and development of a manufacturing operation in Russia – all growth being accomplished using managers developed in Russia.

Bottom Line

When it comes to developing global leaders anywhere in your organization, Thunderbird has the global resources and local understanding around the world to turn high potential into high results.