Now is the time to invest in leadership development
Cost control efforts, including layoffs, are increasing across multiple industries. Leadership development initiatives can be an easy target. However, this is often the best time to invest in your organization’s leaders, when even more is going to be asked of them. So, how do you get the c-suite on board?
Some of your CEO’s top areas of focus for 2024 are likely to be: attracting and retaining top talent, continue with digital transformation and drive growth – and, you guessed – reduce costs at the same time (source: Conference Board 2024 CEO Outlook Report). And, they need leaders who can support these priorities.
This opens the door for you to guide the c-suite on how to invest limited resources in leadership development that will be most impactful. How do you get the C-suite’s crucial support for leadership development?
Frame it up: 2 Questions to ask yourself
Start by framing your conversation to address their biggest concern – positively impacting business results.
What is the business case for your organization? Thinking like a CEO is critical to winning their support.
- What are executives most concerned about in 2024?In a nutshell, it’s Growth, Technology, and Talent. If you want to dig deeper, take a look at the 2024 CEO Outlook survey from the Conference Board, and the most recent Fortune/Deloitte CEO Survey Insights
- Find out not only what is most critical to your c-suite, but how they are talking about it. Be conversant in your company’s mission, business strategy, KPI’s / OKR’s and financial performance. Have direct discussions with senior leaders about what’s critical to them. Be prepared to provide relevant data (employee engagement, client satisfaction, attrition and talent acquisition, absenteeism, etc.). Business strategy documents, annual reports, and formal communications to leaders and employees are also good sources to prepare for discussions.
- Create a direct link between your organization’s pain pointsand how the leadership development will help ease it. See more below.
What is the ROI / Impact? If you have been able to demonstrate a strong ROI of past leadership development initiatives at your organization, that’s gold. If you don’t have that data, you can point to studies from reputable organizations that show a link between leadership development and business performance. Use this kind of data sparingly and targeted to your C-suite’s biggest concerns. This graphic from joshbersin.com provides compelling high-level support:
Or some of these statistics could pique their interest:
- Companies with top quartile leadership effectiveness generate 5 times more shareholder return.
- According to 55% of CEOs, the biggest problem is creating the next generation of leaders. (Deloitte,)
- The cost of replacing an employee can be 50-60% of their salary,sometime up to 200% of their salary for overall costs.
Talking with the C-suite
In addition to data and framing it up, positioning your business case is critical. Here are some ways to talk with your c-suite about leadership development.
Alignment:“We need to improve our leaders’ ability to align with the organization on business strategy, goals, and culture.”
- Alignment needs to be regularly reinforced at all levels of the organization, from the most senior leaders to the most junior employees. For example, innovation is one of our core business imperatives. Leaders at all levels need to create environments on their teams where people will share new ideas and step out of old ways of thinking, Strong leadership development can show them how to do this and apply it in their real work.
- Better aligned leaders make better decisions. They are also faster at adopting new technology.Our business’s innovative strength will be a direct byproduct of helping our leaders and their teams to better align with our business strategy and goals.
- Leadership development is best when customizedso that critical skills are taught and practiced in ways that reflect our strategy and values. And I will ensure any development program does that.
Engagement:“We know from our engagement surveys, leaders and managers want the organization to invest in them” (if you don’t have engagement surveys, use some of the statistics discussed above). Opportunity for development is one of the top motivating factors listed in virtually all studies and surveys on engagement.
- The bottom line for better engaged managers and employees is better performance. Teams that are engaged work more productively; they’re more likely to got the extra mile to achieve organizational goals, and they collaborate across teams more willingly.
- In our continually changing business environment, leaders are desperately looking to boost their ability to stay on top of their people challenges.
- Developing our leaders has a trickle-down effect on the teams and employees. They will be better led and therefore more engaged themselves. That results in better retention, lower hiring costs, and increased productivity.
- Showing our leaders how to build empathy and trustwith their team members builds connection and embeds engagement more deeply in the organization.
Performance: “When our leaders have their teams better aligned and better engaged, they will perform better.”
- Our leadership development will emphasize effective communication and collaboration, which leads to better working relationships and less operational friction. That means fewer misunderstandings, mistakes, and wasted time and resources.
- We also need to improve team and individual accountability. That includes mutual accountability amongst team members and their leaders. When leaders share more accountably with their teams, it drives engagement and performance.
- Leadership development hones skills like adaptability and continual learning. That helps create an organization that is agile in the face of constant change.
- Over time it builds muscle-memory for how to shift gears quickly and effectively from one business imperative to a more urgent or critical one.
- Well-developed leaders are also better at identifying organizational growth opportunities and mitigating risks that threaten that growth.
Of course, you will find language and examples to make this framework more specific to your organization. That will make it resonate more with your senior leaders.
The value of effective leadership development is that it supports and accelerates the business strategy. It helps create a culture of adaptability and innovation. All of which helps your organization stay competitive in relentlessly changing markets.
All of which makes leadership development a wise investment, and not merely a cost.
Contact us for more information on how we can help you build leaders who enhance connection, performance and growth in your business.