Every organization makes judgments about where to invest resources. When faced with critical choices about what efforts might bring the best returns, leadership development might be lower on the priority list. After all, does leadership development actually contribute to the bottom line, or is it just a perk that might help good leaders move on to other jobs?
A recent study from The Josh Bersin Company found that “organizations where leaders prioritize growing their people are five times more likely to exceed their financial targets.” The study also found that these companies are more than twice as likely to retain top talent.
However, the same study revealed that “only 12% of companies have achieved the highest level of leadership maturity,” and “75% of companies still approach leadership development as a perk or benefit rather than a strategic imperative.”
When designed and appropriately implemented, leadership development is more than just a perk—it’s a strategic imperative for any organization wanting long-term growth. Here are four areas organizations should focus on to develop leaders who drive business results and people results.
Inspiration
Leaders like Steve Jobs don’t come along every day, but leaders don’t have to have Jobs’ uncanny knack for vision to inspire team members. Any leader can practice the behaviors and skills that inspire teams to produce great work and drive significant results.
One key to being a leader who inspires commitment is practicing the behaviors that emotionally intelligent people practice. Leaders who can connect with employees will be better able to manage change, build a high-functioning team, and drive innovation. In fact, the Bersin study revealed that “when senior leaders spend time with their teams and exhibit empathy and care, they are twice as likely to be innovators and market leaders than their peers.”
Purpose
As Simon Sinek says in his description of the Golden Circle, “People don’t buy what you do; they buy why you do it.” That “why” boils down to an organization’s central beliefs—beliefs that drive marketing, sales, and hiring decisions.
The Ritz-Carlton Hotel Company is far more than just a place to stop on a long road trip. The brand’s Credo is to provide for the “genuine care and comfort of our guests.” Everyone from the top down keeps that ultimate purpose at the forefront of all daily tasks. The housekeeper’s mission isn’t to clean rooms—it’s to provide genuine care and comfort. Cleaning a room is how the housekeeper offers care and comfort.
Creating purpose as a leader means consistently pointing back to the “why” of the organization, team, function, and individual. When everyone is always focused on the “why,” the company will draw more customers and employees who believe in the same “why.”
Collaboration
In the remote and hybrid work environment, we risk diluting the word “collaboration” into simple shorthand for work conducted via video meetings and shared documents. While these technologies are essential for several reasons, they’re only part of a genuinely collaborative environment and aren’t even necessary for true collaboration.
Leaders who promote a collaborative environment understand it’s about creating systems and support structures to maximize results. This overall goal means there are times when collaboration makes sense and times when it doesn’t. Collaboration can enormously benefit the organization under the right circumstances, but sometimes, it can be bad for the organization. Good leaders will learn the difference and use collaboration appropriately.
Accountability
Accountability is much more effective in an organization with leaders who inspire, create purpose, and promote appropriate collaboration. When team members feel inspired and share purpose, know they have the support to get work done in the ways that make sense and have their three basic needs met, they will hold themselves accountable to organizational, team, and individual goals.
It’s the leader’s role to create a culture of accountability. They can help make this culture by setting clear expectations and providing open and ongoing feedback. Most importantly, leaders should avoid micromanaging employees. Instead of micromanaging, set parameters for check-ins, and then follow through at appropriate times.
Organizations that want to maintain a strategic advantage can no longer afford to consider leadership development a perk. More than ever, companies need leaders who inspire, create purpose, drive collaboration, and encourage accountability to drive results.
The experts at Stewart Leadership can help you define and meet your leadership development goals. With the perfect combination of real-world experience and practical programs and models, our coaches can help develop your company’s leaders—from first-time managers to C-suite executives. Contact us to learn more.
SELF CHECK:
- Which of these four areas of leadership is most critical in our organization right now? Why
- What leadership level is most in need of development right now? Why?
- What is one way we can better prioritize leadership development?
