As baby-boomers are draining out and millennials are flooding in, the new workplace culture redefines the way businesses operate . Once ruled by hierarchies and silos, the new working dominate working generation is focused on building flatter more team-centric cultures. As the long-standing leaders begin to make their way out transitioning their roles to the younger professionals, organizations are noticing the lack of leadership ready to take on the new responsibility.
Despite the amount of training organizations invest in to prepare their employees, it’s proving to not be enough. Recent research from the DDI Institute shows 84 percent of organizations are experiencing or anticipate a shortage in qualified leadership talent and 71 percent said their current leaders aren’t prepared to lead their organizations into the future. This is quite worrisome as poor leadership negatively impacts all areas of business causing
- Disengaged employees
- Increased turnover
- Low productivity
- Poor decision making
- Loss in revenue
- Unhappy clients
According to a study by Bersin, American companies spend more than $30 billion annually on leadership development training. The issue with training is they place emphasis on the now and lack focus on the future. After the training ends, employees behaviors aren’t sustained because they were only able to apply it to present circumstances with no context or direction to apply to future situations.
Leaders are not trained, they are developed. Companies who focus on development programs instead of training have greater success across the entire organization. This is because development programs focus on applying skills and techniques to future situations. Development is an ongoing initiative that should never end.
Combining training and development together will produce massive results that benefit both the employees and the company. Training is just a small piece of development. When broken down into bite-sized sessions and dispersed over a period of time it produces greater long-lasting results. These bite-sized sessions prevent information overload allowing employees to easily digest and begin implementing what they’ve learned immediately. Successful development programs create real-life and hands-on situations for their participants compared to trying to absorb case studies and apply them to hypothetical or past situations.
3 characteristics of a powerful and effective leadership development program include
Coaching and mentoring: provide ongoing feedback and support to employees in boosting employee morale and further developing employees
Cross-departmental learning: develop and enhance skills outside of role, builds confidence and increases loyalty to the company
Workshops: expand thinking and meet with other industry professionals to get a fresh perspective unassociated with the organization. This will help to stimulate thinking and encourage employees to think more creatively.
Investing in the leadership development of employees is the same as putting money aside for one’s future and is the single greatest thing an organization can do to ensure the future success of the business. When successful programs are implemented individuals strengthen their ability to take full responsibility to guide others to achieve results further developing leaders in the process.
Is your business experiencing a shortage in leadership and you’re ready to close gap by implementing a strong development program? I have some availability this week for a complimentary strategy session. Start planning for your future by taking action today. These calls are purely for your benefit and because I genuinely enjoy speaking to and helping people with this topic. Book your complimentary session with me and gain the clarity you crave to create leaders in your business: bit.ly/chatheidi