Competitive Advantage By Investing In Leadership Development
There have been numerous studies that illustrate the importance of leadership development within any organization. What is truly noteworthy is the evidence that organizations that invest in leadership development significantly outperform the competition. A recent article published by the Leadership Development Group (http://theldg.org/) highlighted four specific areas of an organization that benefit from a leadership development program. Here is a link to the article. The four areas are:
1. Improve Bottom Line Financial Performance
Leadership development within an organization is a smart business decision. Organizations that invest in leadership development have a history of outperforming those organizations that fail to do so. A famous quote by Oliver Wendell Holmes sums up this issue beautifully, “The biggest tragedy in America is not the waste of natural resources, though this is tragic. The biggest tragedy is the waste of human resources." Justice Holmes is absolutely correct the most important asset of any organization is its human capital. It is people that make everything in business happen.
The research in this area is clear failing to properly invest in leadership development is simply a bad business decision. The results show up in the form of increased productivity, revenue enhancement and customer loyalty ratings.
2. Attract and Retaining the Best Talent
Hiring from the outside is sometimes necessary. However, organizations that promote from within have a significant advantage over those who fail to do so with any level of consistency. These benefits are illustrated in the article. What organization would not benefit from the following?
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Improved employee retention
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Improved employee engagement
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Retention and teamwork of leaders significantly improved
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Leaders found and promoted from within at much higher rate
3. Drive a Performance Culture
Leadership development programs result in an organizational culture that is performance driven. Organizational alignment takes place when all the moving parts on focused on the same common goals. Goals are set in alignment with the overall mission and vision of the organization. Managers are provided training to improve their own ability to communicate with their direct reports. Fewer personality conflicts take place and productivity rises.
The article relates a positive experience working with a large and prestigious law firm Baker and McKenzie. Retention of top legal talent is crucial to a law firm’s ability to provide services to its clients. A leadership development program instituted with in the firm resulted in significant improvement.
4. Increasing Organizational Agility
Change is the one constant that any organization will face. Leadership development is a proven method for assisting organizations in dealing with change in an effective and efficient manner. Employees are more flexible after receiving leadership development. There is more focus placed on the team and organization and less focus on the “me” first mentality.
Leadership positions within an organization are much more likely to be filled from within. This is a huge benefit. The culture of the organization is known and they understand the importance of the other parts of the organization. Loyalty to the organization increases and this in turn allows for customer loyalty to be enhanced.
Is it time to initiate leadership development in your organization?