The Five Benefits to Leadership Development You Need to Know About

There is no denying that leadership development programs make an enormous impact on an organisation’s overall performance as well as to the performance of employees at every level. The key is for people to be able to recognise their strengths as well as their limitations. It is only after identifying these areas that we may begin to address them. While organisations deserve and should expect a unique program to meet their needs, it is clear that no matter the starting point, the results of excellent leadership programs are the same.

One important goal of any leadership development training program is to provide the skills and know-how to be able to build trust and foster a healthy, safe culture. It could be said that a lack of trust is perhaps the biggest missing link in a company’s potential for success. In a recent survey by Edelman Trust Barometer, they found that only 37% of people thought their company CEOs were suitably credible or trustworthy (1.2). This is an astounding statistic and has a direct impact on performance.

Better communication

When leadership development opportunities are offered to all employees, we begin to see a shift towards an improved communication within teams, between management levels, and across departments. Leadership development programs open up people’s hearts and minds to new possibilities. Lower-level employees are encouraged to share more of their ideas and those in higher positions become more receptive. When employees trust those in management, communication improves, information is shared more freely and individuals are more likely to contribute in forums such as team meetings.

Recognising Talent

This is perhaps the most undervalued benefit to leadership development. Often times, the people who are best suited for leadership already exist within the company. Leadership development programs offer these people the chance to be recognised – particularly those not currently in a leadership role. These opportunities also help to foster a sense of company loyalty and employee engagement, while at the same time improving the efficiency of the business.

Creates Capable Leaders

By providing leaders with the skills they need to successfully navigate the ever-changing and often unpredictable business environment, organisations are able to overcome obstacles much more quickly (2). Capability in leaders also allows organisations to better shape their business strategy from the top-down by ensuring leaders are equipped to implement it.

Improves Company Success

Strong leaders are a fundamental element of successful organisations. When companies invest in placing the right people in leadership positions, other employees are then more motivated to perform better and achieve goals (3). Leaders who are ‘role-fit’ encourage creativity and innovation while simultaneously ensuring their team is focused on their common objectives. Companies who place greater value in leadership development are also shown to have stock market returns that are five times higher than those who don’t (2).

Employee Retention

As previously mentioned, leadership development is an important factor in enhancing company loyalty. Employees are much more likely to remain with the same company for longer when they feel they are being valued and supported by their leaders. In fact, a joint study conducted in 2018 by recruitment firms Accounting Principals and Ajilon found that 53.6% of individuals say “their top reason that keeps them from quitting their job is the loyalty they feel to their team, boss, coworkers or their company” (4). Essentially, what these people are referring to is trust.

What impact does trust have in these areas?

Everything we have talked about above coexists because of trust. Trust is the foundation for so much, including communication, the identification and development of competent leaders, and the fostering of a culture that values and encourages ideas to power up company success.

By taking the time to implement new leadership strategies it is possible not only to improve areas in which a company may be deficient but also to build upon existing strengths. When we look at the benefits of leadership development we can begin to see why such programs are important too, and impact on, all areas of business. Not only this, but we can see how each of these particular benefits stem from having a strong foundation of trust.

Ten Features of World Class Development Programs

The times are changing but…

While our world is changing rapidly, it could be argued that our management practices have not kept pace with these changes. In fact, I think we’re trailing badly.

In reality not much has changed in 100 years. The training and development industry largely rehashes old theory and practices and makes the same mistakes. At the most fundamental level however, our overall quality of management and leadership is poor and is based on archaic notions based on the industrial age.

“We should stop trying to make people happy and instead make them better equipped to deal with the challenges of today’s organisations.”

While more than 75% of learners report high levels of satisfaction with learning programs, in our heart of hearts we know that there is no correlation between ‘happy sheets’ and the successful application of program learning and subsequent performance. We should stop trying to make people happy and instead make them better equipped to deal with the challenges of today’s organisations.

We think we’re driving a Ferrari but we’re really driving a vehicle from the 1900’s…

Our Top 10 Features / Practices

Our research and practice in learning and development over two decades has allowed us to assemble a ‘top 10’ list that all development programs should at least consider integrating. I’m not suggesting that programs should have all ten, although that goal is certainly achievable (see Actionable Conversations for example). Programs that manage to incorporate many of the practices are more likely to be effective, sustainable and cost-effective.

So here are our top 10….

1. Solid context

Ensure that programs are framed and positioned in a strong context that includes an assessment of the market / external environment, strategy, the customer and the organisation’s vision for the future. Only then can an organisation determine the type of leader it needs and therefore the type of program it should invest in. We should dispense with generic competency based models and generic programs that are not targeted.

2. Just-in-time & strategic

If point #1 is true (above), it also holds true that training should be more agile, responsive and ‘just-in-time’ to meet the specific development needs now and in the short-term. Too often organisations get caught in the trap of looking too far in to the future to try to determine leadership needs. A more pertinent question is to ask ‘What do we need right now and in the coming 12 months?’

3. Leader-led / expert-driven

Developing people should be led internally – harvesting every opportunity, everyday. This should be a blend of informal in-the-moment; semi-structured (e.g. monthly leader-led conversations around a mission critical theme); or more formal training provided by outside experts who can bring a perspective and skills sometimes not present internally.

“Developing people should be led internally – harvesting every opportunity, everyday.”

4. Real-world & practical

Please don’t read ‘real-world’ and practical as just being focused on skill building or superficial training that doesn’t challenge people around their mindsets and behaviours. The most effective development programs invite people to play at their edge. The best programs are transformational, where participants can never view themselves or the world in the same way again (the ANZ Breakout program was a good example of this where I was the head of program delivery between 2001 and 2007).

5. Transfer of learning is primary

Learning can suffer three fatal flaws: (1) it occurs in a vacuum; (2) is not linked to a learner’s role or business unit objectives or (3) learning remains in the classroom. Research tells us that the most important factor in program participants being able to apply their learning back in the workplace is their manager.

6. Supports both leader and learner

We tell our program participants that their 1-up manager should almost feel like they’re going through the program, such should be the level of communication, sharing and support that happens in that relationship. Unfortunately this is more aspirational than fact. Secondly, programs that are leader-led have the added benefit of developing both the team member as well as the leader running the session.

7. Mechanisms to support accountability

I like to call this the ‘scaffolding’ that helps support learners. Examples include regular development meetings with their manager; scheduling time for reflection on behaviours and approach; formal or informal coaching / mentoring; and perhaps most importantly, developing habits and practices (see # 9).

8. Doesn’t break the bank

This perhaps goes without saying, however if programs are going to be rolled out in large volume then they need to be cost-effective and provide a measurable return-on-investment.

9. Focuses on the pathway to get there

One observation I have made repeatedly is that we over-invest in goal setting and under-invest in the pathways to get there. In other words, you can set all the goals you want, but if you don’t have a plan to get there, the goals are useless. And the pathway to get there is through developing habits and practices that move you toward the goal everyday. Read my post on LinkedIn on Habits and Practices.

10. Reinforced & Rewarded

Accountability is an over-used word in organisations, however if you want people to do something different, there has to be accountability built in to development programs. Also, we are all human. In a world that is quick to criticize or cut-down, the basic human need of support and acceptance is enduring. Reward the right behaviours – and oh, don’t forget to reward the right intention and effort.

By at least considering all ten features in this list and how they might be incorporated in your development programs, you stand a very good chance of delivering what you set out to do in the first place, develop people in a way that makes a difference to them and to the organisation.

What to do from here:

Find out more about our leadership development programs.
Subscribe to get valuable content in the future.
Get in contact: Australia: 1300 100 857 or support@theleadershipsphere.com.au

Let us help you find what you’re looking for!

Posts

The Five Benefits to Leadership Development You Need to Know About

Better communication