1. Build Impactful Leadership Development Programs
Abandon one-size-fits-all leadership development and build programs designed with organizational goals in mind.
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2. EXECUTIVE SUMMARY Overarching Insight: SAMPLE
Situation
Leadership is critical to organizational success. Highly effective leaders positively influence financial results and drive employee engagement.
Changing workforce demographics driven by increased retirement and a tightening labor market put pressure on organizations to develop leaders internally in order to achieve organizational success.
Resolution
Create a leadership development program rooted in organizational goals to:
Make learning contextual and transferable.
Facilitate measurement in order to demonstrate program effectiveness and inform iteration that will drive business impact.
Complication
Although leadership development is consistently identified as a top priority for organizations, challenges in measuring its effectiveness makes it difficult to pinpoint what is working and what isn’t. This leads to wasted resources on programs that do not result in behavioral change and an overall frustration with leadership development capabilities.
Organizations pour money into leadership development programs that are too general or do not sufficiently apply to their circumstances, making it difficult for leaders to apply learnings and improve performance.
Abandon the idea that one-size- fits-all leadership development programs will meet your organizational needs. Build targeted programs rooted in organizational goals in order to drive behavioral change and demonstrate business impact.
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3. GUIDED IMPLEMENTATION
MCLEAN & COMPANY OFFERS VARIOUS LEVELS OF SUPPORT TO BEST SUIT YOUR NEEDS
CONSULTING
“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”
GUIDED IMPLEMENTATION
“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”
DIY
TOOLKIT
“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”
WORKSHOP
“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”
Diagnostics and consistent frameworks used throughout all four options
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4. Create a plan for leadership development
Use McLean & Company’s methodology to improve leadership development impact
Create a plan for leadership development 1
Identify program needs 2
Build the program 3
Implement and evaluate 4
Iterate
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5. SAMPLE SLIDES
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6. Leaders at all levels are key drivers of organizational success
Leaders impact the bottom line
Leaders influence those around them
A study of 50,000 managers linked performance ratings to net income at a Fortune 500 bank. It found that great leadership was associated with higher net income.
Data shows the impact leaders have on other employees in organizations.
Senior management relationships are a priority driver in 46% of organizations for employee engagement (McLean & Company Engagement Survey, 2017, N=113).
Almost one-third of employees who leave organizations cite lack of trust in the executive leadership team as a reason (McLean & Company Exit Survey, 2017, N=4,656).
Bottom 10%
Poor leaders
Middle 80%
Good leaders
Top 10%
Great leaders
Zenger, 2015
A McKinsey study compared two databases, one tracking organizational performance and the other tracking performance appraisal data of thousands of executives. The results were clear:
“Executives in top-performing companies scored higher than those in lower-performing companies across all competencies.”
Herrmann et al.
Front-line leaders are considered very important in the following areas by senior leadership:
Achieving a high level of customer satisfaction (78%).
Helping the organization reach business goals (77%).
Achieving a high level of productivity (76%).
Achieving employee engagement (73%).
Neal et al., 2014
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7. Leadership development is critical to organizational performance
Seventy percent of organizations rate leadership/management development as their top priority (McLean & Company, 2016 HR Trends Survey, N=543). American organizations spend $20 billion annually on leadership training (Pfeffer, 2016).
Industry: Government (Military)
Source: Seidle et al., 2016
Situation
An installation of the U.S. Department of Defense developed a program to improve leadership and performance at all levels of the organization.
Action
A blended learning approach that included 360-degree feedback, classroom training, coaching, and experiential tasks was developed.
Results
Comparing individual and organizational performance of leaders who participated against those who did not over a five-year period allowed the impact of participation to be evaluated. Participation in the leadership development program led to:
Higher individual performance.
Better organizational effectiveness.
Studies have proven the value of leadership development.
A comparison of 90 leaders (with 45 receiving training) found that those who received training improved their individual leadership performance and their teams were more effective (Santos et al., 2015).
Modeling ROI for a wide range of leadership development revealed a strongly positive average return (Avolio et al.).
Organizations with high-performing leadership development programs see the impact.
94% report significant impact on financial success.
70% report significant impact on competitive performance.
Harvard Business Publishing, 2016
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8. Challenge #1: Resourcing Paradox Challenge #2: Lack of Capability
Insufficient measurement impedes identification of effective programs within organizations
There is a gap between what is needed and what is being delivered
But the measurement challenges are surmountable
Current measurement practices have left organizations in the dark as to what types of leadership development activities drive results.
Challenge #1: Resourcing Paradox
Traditional Thinking
“I don’t have resources to measure the impact of leadership development activities.”
The biggest obstacle to increasing these resources is the lack of measurement. Thus, this needs to be included in the design process and costing of leadership development.
New Thinking
CEOs cite business impact and ROI as the most desired L&D measurements.
What leaders want
Challenge #2: Lack of Capability
What leaders get
Only 8% of organizations track business impact.
Only 4% of organizations track ROI.
Feedback from attendees remains the most popular method to assess effectiveness of programs.
LinkedIn, 2017
Traditional Thinking
“I don’t have the capability (skillset or technology) to measure the impact of leadership development activities.”
The biggest barrier isn’t skillset, but mindset. Measuring impact doesn’t demand advanced statistics and analytics. Rather, the process of designing and implementing programs needs to change to include a focus on measurement.
New Thinking
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9. MCLEAN & COMPANY HELPS HR PROFESSIONALS TO:
Now, more than ever,
HR leaders need to help their organizations maximize the value of their people.
McLean & Company offers the tools, diagnostics, and programs to drive measurable results.
– Jennifer Rozon,
Vice President,
McLean & Company “
Empower management to apply HR best practices
Develop effective talent acquisition & retention strategies
Build a high performance culture
Maintain a progressive set of
HR policies & procedures
Demonstrate the business impact of HR
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