The Management & Leadership Development Imperative
Why Management & Leadership Development is a priority and its benefits.
by Andrew Cooke, Growth & Profit Solutions
One of the top issues for CEOs is business growth; however the ability of the business to achieve this growth is being stymied by the lack of suitably skilled staff – in short, effective leadership.
Strong leadership and management is a key factor in fostering innovation, unlocking the potential of the workforce and ensuring organizations have the right strategies to drive productivity and growth. However, this potential is not being achieved due to managerial shortcomings and a lack of strategic thinking. Effective management is the exception rather than the rule.
So how do we address this?
Overcoming these weaknesses and improving our leadership and management capability is fundamental to creating a culture where more businesses have the ambition, confidence, resilience and skills to respond to the current economic challenges and compete successfully both nationally and globally.
By providing more comprehensive management training and development for budding leaders, companies can gain the edge over competitor firms.
A recent report in the UK stated that UK businesses are losing over £19 billion per year due to poor management. In fact, almost half of say their line manager is effective, with 43% of UK managers rating their own line manager as ineffective – and only one in five are qualified. However, management problems are not restricted to the lower or mid-levels, with the reporting highlighting incompetence of bad management of company directors as being responsible for 56% of corporate failures.
How much is this costing your business, and what are your risks with those at the top?
One of the root causes of management and leadership weaknesses is due to poor training and development, and this is a global and systemic problem. For example, first line managers are primarily selected because of their technical capability rather than their potential to move into more senior positions, despite technical proficiency being far less significant when considering subsequent promotion. They frequently do not receive any specific management training and are not only ill-equipped to take on this role, but their immediate line managers often lack the knowledge and skills to support them.
So What Do We Do
The situation can be improved. Companies need to invest in leadership development for their managers, by doing this they can be prepared for the non-technical aspects of their job, which become increasingly important as they advance.
To build a robust and sustainable high performance business you have to take a more strategic view of management development. To do this effectively you need to have:
- Commitment to Management and Leadership Development (MLD) – driven by the CEO and senior management ;
- HR practices that reinforce MLD – such as performance management, leadership succession planning and competency frameworks;
- Alignment between business strategy and HR strategy – managers’ skills are clearly developed to drive business results.
Benefits of Management & Leadership Development
Good leadership and management can have a truly significant impact on organizational performance, both in the immediate and longer term. Research has shown:
- Best-practice management development can result in a 23% increase in organizational performance.
- Effective management can significantly improve levels of employee engagement
- A single point improvement in management practices (rated on a five-point scale) is associated with the same increase in output as a 25% increase in the labour force or a 65% increase in invested capital.
Management & Leadership Development is essential to long-term business success and, as such, provides a high return on investment (RoI) in both the short-term and the long-term, with the value created being realized and compounding year after year.
Growth & Profit Solutions partners with businesses to enable their key people to develop their commercial, management and leadership capabilities by working with them on addressing key challenges and opportunities on the job. This allows experiential learning which is retained, obviates the need for key people to be absent whilst attending training courses, and is developed around the individual’s and the business’ needs. This helps to drive outcomes, retain critical talent whilst building a talent pipeline, and develops the in-house capabilities of the business allowing it to grow effectively and on a sustainable basis.
The question is not can you afford to invest in Management & Leadership Development, but can you afford not to? If you have already started, then keep going; if you haven’t started, then start today – but don’t wait till tomorrow, by the time it becomes a “squeaky wheel” and has your attention it will be too late!
Click here to find out more about Andrew Cooke and Growth & Profit Solutions.