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h year, organizations in the corporate sector are spending a collective $60 billion on leadership development programs.
Researchers concerned about return on investment for these programs have shown that participation can provide a significant boost to personal growth and overall well-being. However, not all leadership development programs are alike, so they have varying degrees of success on the bottom line and resilience of an organization.
At McKinsey, researchers honed in on what caused certain leadership development programs to fail. Interestingly, they found that context is crucial. In other words, development programs must be personalized to the needs of the individual while emphasizing the skills and expertise needed at the organization.
To create effective leadership development programs, companies must plan for the challenges that are likely to arise and the skills that leaders will need to have to weather the storm. The skills required of leaders look quite different for a company preparing to grow through acquisitions compared to one that is entering a phase focused on research and development. In the former scenario, negotiation skills are critical, while the ability to create and maintain an innovation culture is more important in the latter. Leadership development programs should also consider humanistic skills like empathy and compassion, which can impact employee motivation and overall ability to deal with change.
Notably, identifying context can be difficult, especially in a business landscape that is constantly evolving. Alongside the tailored parts of the development program, there are some key elements that all should have. These elements are a good place to start for an organization implementing its first leadership development initiative. Some of these core elements are as follows:
1. Change management
Given the current business environment, companies will have to change to stay relevant and solvent. Change may include structural reorganizations, shifts in strategic direction, or even layoffs depending on the current pressures. Leaders have the challenging task of guiding the company as it moves into a new phase and keeping everyone aligned in terms of values and goals.
The approach to change management itself has evolved a great deal in the past decade. While upper management once created a set plan that was implemented through overcommunication and support, the emphasis today is more on empowering individual employees to spearhead the change they deem necessary.
2. Communication
Communication is extremely important within a leadership role. The messages conveyed by leaders come with a sense of authority and have a far-reaching impact. Clarity is particularly crucial since ambiguity can lead employees to take contradicting or unwanted actions. In addition, leaders must pay close attention to tone, especially in written communication. The wrong tone can antagonize certain employees and cause rifts to appear in the organization. Tone also plays a significant role in maintaining a balance between approachability and respect.
3. Accountability
Accountability in the context of company leadership refers to two different ideas. First, the leader needs to be accountable in terms of fulfilling promises and owning up to any personal shortcomings. Second, the leader needs to hold members of the team accountable without micromanaging them. Micromanagement is time-consuming and exhausting, not to mention bad for morale. Fortunately, the example set by leadership plays a key role in encouraging employees. When leaders model how to be accountable, they create a culture of accountability. This means that employees should also feel comfortable speaking up when they feel that something is not right.
4. Goal Setting
Goal setting is an important skill for any leader. Luckily, goal setting is also important for measuring the success of a leadership development program. Leaders can learn how to set goals for themselves and measure their success in attaining them, giving them the insight to do so on a larger scale within the organization. Certainly, there is an art to goal setting that can be tricky to master. When goals are too easy, employees can feel like they are not getting anything done. On the other hand, goals that are too lofty can cause morale to drop. Employees need to feel challenged by their goals while still having the sense that they can be accomplished. Measuring success is an art as well; there are many approaches that each comment on a different part of the overall process.
5. Influence
While it is a soft leadership skill, influence is extremely important. This refers to a leader’s ability to create relationships with employees and inspire them to achieve remarkable things. The best leaders are those who encourage their employees to push themselves and go further than they thought possible. Influence relates to a variety of factors, including credibility, accountability, and personability. Leaders need to maintain a focus on the big picture while also getting to know the people under them enough to connect personal goals to the organizational mission. This helps employees develop their skills as they wish while also serving the company.