Why Invest in Leadership Development?
Organizations that invest in leadership development perform better than those that don’t.
Complex times like these, defined by constant uncertainty and great opportunity, magnify this truth even more. A report by research firm Bersin by Deloitte states it plainly:
“Leadership development is not just about developing leaders — it is about creating a culture of accountability and performance… Leadership development creates a magnet for high performers and fosters a high-performance organization. That is why organizations that are ‘built to last’ have strong histories of leadership development.”
The Conference Board’s groundbreaking report, The Business Value of Leadership Development, arrived at a strikingly similar view:
“One of the most influential internal engines to drive change is a leadership development program that sets out to nurture management talent that is entrepreneurial, enterprise-wide, and globally recruited.”
Investing in Leadership Development is Driving Performance at Successful Organizations
When it comes to driving performance, studies show that organizations that invest in leadership development:
- Improve bottom-line financial performance. Superior human capital management is an extremely powerful predictor of an organization’s ability to outperform its competition.
- Attract and retain talent. As a result, employee retention is 20 times greater at companies with a focus on leadership development.
- Drive strategy execution, creating organizational alignment. Done right, leadership development unquestionably delivers impact and success in strengthening leadership skills most important to work performance.
- Increase organizational agility and success in navigating change. When facing an unpredictable business environment, 86% of companies with strategic leadership development programs are able to respond rapidly, compared with 52% of companies with less mature leadership programs.
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