One of the biggest drivers of long-term success for organisations is the implementation of a leadership development program. But many business owners are so overly focused on today that they fail to start building their teams for tomorrow. Particularly in small businesses, it is relatively normal for owners to consider themselves the end-all as it pertains to leadership within their organisations. However, this approach is both misguided and a growth killer.
Leadership development is critical for businesses today. In this modern age of technological advancements, globalisation, and the evolving workforce, static leadership often leads to decreased opportunities and increased threats to market share.
Let’s take a little deeper dive into some of the downsides to not having a dynamic leadership development program in your business.
The Dangers of No Leadership Development
Employee Satisfaction & Retention Takes a Hit. Today’s workers desire career growth. If those opportunities are not available within your organisation, your employees will likely have no qualms moving on to your competitors.
Lack of Innovation. Leadership development infuses an organisation with fresh ideas and forward thinking. Without it, organisations risk stagnancy. Future leaders are generally first to identify and embrace emerging ideas and technologies, and thus increase an organisation’s edge in the industry.
Poor Communication Channels. Insulated, top-down leadership can lead to a breakdown in communication and a general feeling among team members that the company lacks transparency. This dynamic directly contributes to an overall unsatisfactory company culture, employee churn, and an increase in interoffice conflict.
These are just a few of the most common downsides. But now let’s take a look at some of the benefits a leadership development program can have on the future of your business.
Leadership Development Is Transformative
Today’s leadership development programs are simultaneously focused on both the current and future needs of the company. For smaller businesses in particular, successful leadership development enhances team alignment, accountability, and provides incredible opportunity for business owners to break the ties that bind them to their businesses, day in and day out.
So beyond building a team of future leaders, just how does leadership development positively impact an organisation? Leadership Development in your business can:
Enhance Inclusivity. Businesses with leadership development programs are able to develop leadership skills across all levels of the organisation, fostering a culture of continuous learning for everyone.
Increase Adaptability. Today’s industry runs at a more rapid pace than ever before. Leadership development programs nurture adaptive skills so teams are best able to positively and proactively navigate change effectively.
Advance Skills. Leadership development isn’t just about building hard skills and creating alignment. Perhaps more importantly, the best of these programs also improve the essential soft skills of successful future leaders, like emotional intelligence, communication, and empathy.
Read Mentorship 101: How To Develop the Next Generation of Top Talent
Let’s Talk Leadership Development Statistics
While few would argue there aren’t substantial benefits in implementing leadership development initiatives within an organisation, effects like enhanced company culture and increased opportunities are challenging to quantify. But researchers have published some significant statistics regarding the impact of leadership development.
- The Brandon Hall Group recently reported that organisations that implement leadership development programs experience 37% lower employee turnover than those without.
- The Center for Creative Leadership said that companies with strong leadership development programs are 1.5 times more likely to outperform their competitors.
- McKinsey claims that 90% of CEOs consider leadership development a top priority in their business.
What Does Leadership Development Look Like?
Leadership development programs can take many forms. From mentorships and seminars to workshops and webinars, there is literally an implementation for just about any organisational budget.
At The Alternative Board (TAB) we have built a truly exceptional leadership development program called StratPro. StratPro is a transformative series of leadership team workshops that dive deep into important organisational topics like team alignment, vision, culture, strategic advantage, risk mitigation, execution, planning, and so more. StratPro identifies opportunities in leadership team development and helps build alignment throughout the entire organisation.