Organizations worldwide recognize the importance of building a robust leadership pipeline to navigate a dynamic and competitive economic landscape. Investment in leadership development is expected to triple in size over the next decade, with the global market expected to grow from $61 million in 2021 to nearly $180 million by 2032. Despite this investment, leadership development efforts often fall short, with only about 10% of development spending yielding concrete results.
If you are considering implementing a leadership development program in your organization, where do you start?
We often see organizations jump in and launch efforts without in-depth reflection on their specific needs and organizational goals. To build a program that will engage your talent and drive realized return on investment, we suggest aligning with executive leaders on the following questions:
1. What problem are we solving?
Leadership programs should aim to develop knowledge, skills, and abilities needed to drive future success in your organization. Think: What is missing in our organization? What kind of leaders will we need that we don’t have now?
Potential gaps in leadership effectiveness can be examined by surveying stakeholders, reviewing employee engagement surveys and performance reviews, or assessing the current bench strength of your leaders in comparison to a competency model for their role or level.
Once gaps emerge, define the antidote. For example, for more strategic leaders, you may have them engage in more executive collaboration or offer continued education on industry trends to build broader thinking. To elevate emerging leaders’ capacity, skill building in coaching, delivering feedback, and influencing can help to close gaps.
While it may be tempting to only invest in courses on a few tactical topics, keep in mind that industry research suggests that initiatives focused on whole-person growth are beneficial at every level of an organization. By creating a space for participants to reflect on their strengths and areas for development and providing strategies to shift their mindset and thinking process, employees are equipped with the resilience and problem-solving skills needed to build skill across domains.
2. Who do we target?
The talent that receives your investment should be carefully selected, and the selection should align with the strategic goals for the organization. For example, are you finding it difficult to hang on to high potential leaders at the mid management level? If so, then consider a development program that helps form social networks and targets individualized goals to improve retention. On the other hand, if your organization needs to shift directionally (driving strategic goals, enhancing organizational culture, etc.) then you should focus on more senior leaders.
If you don’t know where to start, we always recommend focusing on high potential leader talent in your line of succession. With a generation of executives reaching retirement, succession planning is at the forefront of many talent initiatives. With high potential groups in leadership development, there is an opportunity to build the competencies required to carry your organization into the future while boosting engagement and retention in your next-level leaders.
3. How will we develop them?
Adult education theory stresses that professionals learn most effectively when they can take ownership of their learning with self-directed content, are engaged in topics that relate to their experiences, and make connections with fellow learners. With that in mind, it’s important to create an environment conducive to your priorities.
Traditional classroom or virtual learning sessions may suit knowledge acquisition (e.g., financial acumen, technical skills, etc.). Job rotations and stretch assignments build applied leadership skills. Cohort-based activities (e.g., peer coaching) foster cross-organizational relationships and shared learning. Learning cohorts also help organizations break down silos and facilitate synergistic efforts.
When it comes to shifting mindsets and changing habits, incorporating feedback and coaching in a developmental program presents an avenue for deeper reflection and awareness throughout a leaders’ growth journey. Individual assessment and coaching gives leaders clarity around their personal developmental needs and provides a sounding board for their unique leadership challenges.
4. How will we know they’re developing?
Leadership development is an ongoing process for any organization but building a realistic timeline for each initiative is critical to monitoring progress and measuring success. The roadmap will differ based on your organization’s developmental priorities, number of participants, content, and availability of all relevant stakeholders. Short-term solutions like learning sessions and workshops could be implemented and completed within a few months, while more extensive initiatives involving coaching, on-the job experiences, and cohort activities may warrant longer program intervals.
In any case, tracking progress is key to maintaining leaders’ awareness and engagement throughout their participation as well as measuring your organization’s return on its leadership development investment. As leadership experts, we track behavioral change, most often through 360-degree pulse surveys and qualitative feedback. Further, maintaining alignment and feedback loops between participants, managers, and stakeholders helps ensure accountability and continued growth during and following the program’s timeline.
5. Do we have the capability to deliver a program?
Start by asking yourself “who,” “what,” “where,” “when,” “why,” and “how.” Answering these questions upfront in your leadership development efforts is critical for strategic planning. Consulting an external partner in the leadership development space may help you better grasp the “how.” A good partner should combine an understanding of your organization’s culture, strategy, and people to help you create a tailored solution that meets your unique needs.
Objective partners provide valuable support at any step—from developing custom success profiles to hands-on coaching or skills training—and they are more than willing to share their expertise. Ultimately, having predetermined objectives before engaging an external partnership optimizes your development investment and helps you build a powerful pipeline of leaders.
Are you ready to unlock your organization’s leadership potential? Vantage Leadership Consulting has been a trusted advisor for over four decades to companies around the world seeking to build exceptional leadership capability. Contact us to learn more about how we can help you.