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Enhance
Organizational Performance With Leadership Development
The premier organizations understand that organizational transformational leadership
development is a strategic objective producing
sustainable competitive advantage. It's due to this
fundamental insight, that they continually out perform their
competitors. |
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Why
is Leadership Development Important?
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The
best organizations in the world have long realized that leaders
must be grown, cultivated and nourished. To not due
so risks falling into decline as dictated by the organizational
life cyle. Organizational Leadership
Development Research
Presented below are some of the recent insights
from articles all over the world addressing organizational leadership
development and organizational performance.
While it is
nearly impossible to do an ROI
calculation on leadership development, a number of studies
and books have repeatedly found
a positive
relationship between organizational leadership development and
organizational performance (see below). This
was documented in a 2003 study that asked 1900 professionals
who helped troubled companies. These individuals were asked
to identify the most common reasons businesses get into trouble
or failed.Reasons
included:
Factor* |
% |
Too
much Debt |
28% |
Inadequate
Leadership |
17% |
Poor
Planning |
14% |
Failure
to Change |
11% |
Inexperienced
Management |
9% |
| Not
Enough Revenue |
8% |
*Source:
Buccino and Associates: Seton Hall University Stiffman
School of Business, As reported in August 25, 2003, Business
Week. |
Adding the "inadequate leadership" and "failure to change" categories
together means that about 30% of the reasons for looming bankruptcy are due
to managers who cannot lead.
There have been some new studies
of organizational performance and leadership development
worth looking at. Information readily accessable through the Internet
includes:
International
Study: Watson Wyatt: Leadership: The Critical Key to
Financial Success
European
Article: Companies Should Grow Their Own Leaders
U.S.
Study. Top U.S. Companies For Leadership. A summary of
some of the leadership practices at the top organizations
for leadership development.
Hewitt
Data. Even in Asia, leadership development
and having a large number of leaders makes a difference.
Some studies, however, have found success to
be elusive...
US
Article: SHRM: Who's Next? Creating a formal program
for leadership development can pay huge dividends, but
many firms aren't reaping the reward
Resources
Leading
the Way. The book talks about practical tools for leadership
development starting with the Board of Direcectors.
Organizational
leadership development works as a method of enhancing
organizational performance. However, a number of factors
within the control of management can prevent organizations
from realizing any kind of meaningful benefits.
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