Why Mid Size Companies Do Not Invest in Leadership Development

We have observed a huge void in the quantity and quality of the leadership development programs offered in mid-sized or fast growth organizations. WHY?

1. Importance of Leadership Development to The Success of a Business:

Many leaders of mid – sized and fast growth companies do not understand the importance of investing in leadership development, or the impact it has on accomplishing stellar business performance.

2. Leadership Culture – Good Results Means a Good Leader!!

In some cultures, if a leader achieves their sales, profit or productivity goals, they are a good leader. WRONG! This represents a “Get me the numbers, we don’t care how” attitude. That does not occur in “best in class” leadership cultures.

3. Acceptance of Unacceptable Leadership Behavior:

Some executives rationalize about poor behavior in one or more of their team members. “Oh, that is just Jim”. We all know that is how he manages”. Best in class organizations provide coaching to improve behavior/performance.

4. Perception of Leadership Development/Coaching:

Many CEOs and leaders think that, “coaching is somehow “remedial” as opposed to something that enhances high performance. Even elite athletes use a coach. Even Peyton Manning and Tiger Woods have a coach to help them strive for “excellence”.

5. Need for Executive Coaching:

A recent study by the Stanford Business School found that nearly two-thirds of CEOs and/or executives don’t receive executive coaching or leadership development. Paradoxically, nearly 100 percent said they would like coaching to enhance their development. There is a need, but not a commitment to, establishing the strategy

6. Leadership Development/Coaching Is A “Soft Skills Cost” – Not an Investment:

Leadership development and striving for leadership excellence, is a journey, not an event. It must be continuously aligned to the achievement of an ever evolving business strategy. Best in class organizations look at the effectiveness of leadership development over decades.

7. Quantifying Leadership Improvement:

Most organizations establish goals for sales, profits and productivity each year, and manage to the achievement of those goals. However, few know how to quantify whether or not their leaders are improving their leadership skills year after year. Best in class programs include leadership improvement that is as quantifiable as any analysis of a balance sheet or financial statement and reward for that achievement.

8. Limited or No In-House Capability:

Most mid – sized and growth organizations are not able to design, implement, manage or build “best in class” leadership development programs in house.

9. Accountability – ROI:

Most in-house programs currently in place in organizations, or programs being delivered by external coaches, seldom include measurements or accountability. Best in Class programs include “leadership skill improvement measurements” that are as quantifiable.