Why Leadership Development Matters
We are currently finalising dates for our FREE Autumn Series of Leadership Seminars which will feature some incredible speakers. Make sure you register here for all the details.
Why does leadership development matter to your organisation and what are the benefits?
Numerous in-depth studies have reached the same conclusion: Organisations that invest in leadership development perform better than those who do not. Moreover challenging times magnify this truth even more.
A report on leadership training by the independent research firm Bersin & Associates stated:
“The message is clear – leadership development matters. It is hard to find a company which has survived many economic cycles that does not have a sophisticated leadership development strategy in place. While it may take many years to develop and refine, the results clearly pay off.”
Investments made during challenging times can yield the greatest returns, said Steven Meredith, global knowledge director at consulting firm Talent Intelligence:
“Our research and insights, from advising Global Fortune 500-level companies, indicates it is more important than ever for organizations to invest in their
leadership during recessionary periods so that the business not only survives but emerges stronger than the competition.”
Our FREE autumn seminars will cover all relevant aspects. Explaining how to lead a company through a recession, as it exits a recession and what to do once the recession is over.
A follow-up report by Bersin in October 2008 said, “not all training drives the same level of strategic value. What companies need most vigorously today is …
talent-driven learning programs,” particularly leadership development.
Drive a performance culture
It is important to remember that leadership development is not just about developing leaders – it is about creating a culture of performance. There is a relationship between good management and employee commitment. Great leaders attract, hire and inspire great people. A mediocre manager will never attract or retain high-performing employees. Leadership development is essentially a magnet for high-performers and fosters a high-performance organization. This is why the organizations that are ‘built to last’ have strong histories of leadership development.
Financial powerhouse AXA Equitable saw strong leadership as the key to breakthrough performance. AXA launched an ambitious initiative to help several hundred company executives lead through change. Several years later, AXA executives have raised productivity goals, improved communication with employees
and strengthened their leadership pipeline, positioning AXA for sustained success in a rapidly changing industry.
Improve financial performance
A 2007 study in Harvard Business Review by Laurie Bassie and Daniel McMurrer showed a strong link between leadership skills and the bottom line. The study examined the stock prices of 11 publicly-traded financial services firms. Companies with high scores for their investments in human capital delivered stock market returns that were five times higher than that of companies with less emphasis on human capital.
Leadership development made a tremendous impact on the bottom line of the U.S. Postal Service. The results: $8.8 billion in cumulative cost
savings. The elimination of debt. Record productivity. Record customer-satisfaction ratings.
Need some high performance development for your team and your leaders? Get in touch.