Navigating Leadership Development: Two Paths for Employers

In today's dynamic business landscape, one of the gravest oversights an employer can commit is assuming that their leaders have reached their peak. Whether at the helm as a supervisor, middle manager, or executive, continuous development is paramount to navigate the ever-shifting norms, challenges, and opportunities inherent in leadership roles.

Fortunately, investing in leadership development yields substantial returns. A recent survey conducted by management consultants BetterManager, encompassing 752 leadership experts across the United States, Canada, and the United Kingdom, shed light on this. The findings, encapsulated in the report titled "The ROI of Leadership Development," revealed that organizations witnessed an average return on investment of $7 for every $1 spent on fostering their leaders' growth.

However, the efficacy of a leadership development program hinges on its design and execution. Broadly speaking, employers have two main avenues to explore:

1. Internal Development Programs: Some organizations possess the capacity and resources to craft in-house leadership development initiatives. Typically, larger employers can allocate dedicated staff to curate program content, potentially supplemented by external consultants, and oversee its maintenance. The allure of this approach lies in cost control and the ability to tailor the program to the organization's intricate nuances. By leveraging internal insights, including forthcoming strategic endeavors, employers can fine-tune leadership skill enhancements accordingly. Yet, developing an internal program demands a substantial commitment of resources and time. Implementing and sustaining such initiatives necessitates a steadfast, long-term dedication to reap tangible returns on investment.

2. External Development Opportunities: Alternatively, engaging external consulting firms to orchestrate leadership development programs is a viable route, particularly for smaller or budding organizations. This approach offers the advantage of a one-time or intermittent expenditure, sparing internal resources from prolonged engagement. Furthermore, it affords access to specialized expertise tailored to the nuances of leadership development. Nonetheless, collaborating with external providers entails a thorough selection process and negotiation phase, consuming valuable time and energy. Financially, the upfront costs can pose a significant strain, alongside ongoing involvement to shape the program and gauge its efficacy. Moreover, integrating external elements may pose challenges in fostering leader engagement and alignment with organizational values.

Crucially, regardless of the chosen path, securing buy-in across all organizational levels is pivotal for program success. Strong leadership permeating every echelon of the organization is indispensable amid the escalating complexities of the modern business landscape.

In conclusion, the imperative for employers to cultivate robust leadership capacities cannot be overstated. Proactively crafting and nurturing a leadership development program underscores a commitment to organizational excellence. For comprehensive guidance on assessing the intricacies and costs associated with each approach, reach out to us—we're here to help you navigate your leadership development journey.

HoganTaylor Talent

If you have any questions about this content, or if you would like more information please contact Jeff Wilkie, Principal of the HoganTaylor Talent practice. More information is also available on the HoganTaylor Talent page of this website.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.