Why Invest In Developing Leaders?
Developing leaders is a strategic imperative. Developing them well provides competitive advantage. The cutting-edge organizations we serve don’t just know this. They act on it. They know that leadership development provides multiple returns on investment:
Higher Quality Decisions
Leaders who invest in their own capacity make better decisions in the areas that matter most: strategy, execution, talent development and capital investment. That’s because they learn to focus on what matters most, think clearly and rigorously, sustain their physical and emotional energy—and sharpen their interpersonal skills.
Leadership Bench Strength
The relatively few companies with truly robust succession planning systems—like GEO and Pepsico—play chess, not checkers (or Angry Birds), with their talent. They match emerging leaders who possess the greatest learning agility with the positions most likely to teach them what they need to know to guide the company 5-10 years down the road. Quality leadership development accelerates how quickly these leaders learn. And it shortens the time before they are prepared for bigger roles.
Retention of Top Talent
High performers are happiest when they “stretch.” Their work is challenging enough to prevent boredom but not so challenging that they suffer anxious stress. Quality leadership development helps them access “flow” states more consistently and reduces the odds they will jump ship to a competitor. High performers are also happier when they like their bosses. Making bosses more likeable is one of the things we do.
Greater Employee Engagement
The research from Gallup is clear: companies with more engaged workforces perform better. Engagement depends upon twelve factors—like knowing what is expected of you—which rise or fall with the quality of leadership.
Higher Stock Prices
Research by New York University accounting professor, Baruch Lev, shows that more than 50% of a firm’s market value is due not to financial performance but intangibles. According to business strategist, David Ulrich, this means that people-oriented intangibles like keeping promises, compelling strategy, and aligned technical competencies all indirectly boost Wall Street’s valuations. And what is a prime source of these intangibles? Capable leadership. So if you’re a public company committed to shareholder value, it pays to invest in developing leaders.