How can you build a business case for leadership development programs?

The first question to ask when considering the introduction of a development program: “Is our leadership team future-ready?”. The simple fact that an organization is ready to have this discussion in the first place indicates that the answer is likely going to be “no”. As with any initiative aimed at improving the current status-quo, it’s best to start by confronting the brutal facts (aka, The Stockdale Paradox, from Good to Great by Jim Collins). Identify (i) the skills required vs. (ii) the current skill set of the leadership team. Once the gap is clear, the important question needs to be addressed; “Can we develop the required muscles internally or should we fill some of these gaps by hiring new talent?”.

In my experience, have seen that most times, highly technical staff are promoted into management positions without the relevant management experience, this often requires organisations to define the problem or opportunity that the leadership programme aims to address, such as a gap in leadership skills, a need for succession planning etc. Once the problem is defined then objectives are set and desired outcomes, what would the organisation like to see change, in the breed of leaders under training and lastly perhaps how will success be measured, what do we need to see to show that the leadership training was a success.

Building a strong case for leadership development programs requires clear alignment with organizational goals, emphasizing tangible benefits such as improved performance and talent retention. Incorporating concrete data on the positive impact of these programs, both in financial and cultural terms, is crucial to demonstrate return on investment.

Maybe refine the targeted goals before to identify the problem. It may happen that the objectives are not clear enough or not anymore.

Use voice of employee scores to address chronic issues. Offer skill mapping exercise and create a pull system where leaders get to chose the area of their choice.

There are a million solutions with a multitude of personalities, businesses, programs, etc. asking for your attention. Find the thing that your team has a lot of -- do they travel on planes or in cars a lot to and from meetings or events? Then maybe podcasts or audiobooks might be the answer. Could the team use a sabbatical and team-building opportunity? Then maybe a retreat with real-time together would be the best solution. Either way, there's no right or wrong way to provide your team will professional development opportunities.

In principle, development programs are typically booked as costs on the P&L. However, future-focused leaders, with a strong commitment to building learning organizations, see this through different lenses: development programs are investments with a guaranteed long-tail return. Consider this in terms of marketing spend on a campaign with specific objectives. Progress is tracked on expected impact vs. actual, and over time, a pattern emerges. Development programs are similar to marketing campaigns with one important caveat; the unexpected outcomes often outshine the original objectives. And while some of this is difficult to measure, certainly employee engagement, attrition & business growth often go hand in hand with development efforts.

Labor costs incurred during marketing efforts like at home shows, expos, or door hanging aren't labor costs. They're marketing costs. Consider how your professional development channel fits into your business growth. Then, position that cost in a way that makes sense to spend. Where does it push us forward in the future?

At the end of the day what are we getting from this? Is the training a checklist or will it be used to measure up against metrics. Ex. is our staff retention rate improving? does productivity increase? are more internal referrals coming for open positions? The benefits listed must align with what your organization feels they need to find a solve for. While not all items can be quantified, there should be some sort of metric or KPI to measure progress and success.

Measurables, measurables, measurables. How can your team come back to the table with real suggestions for improvements? Is that what you're trying to accomplish there? If not, just understand what you need them to come back to the table with and align their expectations with that. They'll take away what they need to learn.

Consider letting your team choose the final option. Present them with all of the information you've generated through this process, set the expectations so they're in full alignment with goals, and then allow them to choose. This alone could be a fantastic development opportunity for the entire team.

Si quieres construir un caso para un programa de Liderazgo lo que yo te recomiendo es lo siguiente: 1.- Piensa en casos reales que hayas visto. 2.- Pide que te cuenten algún caso que supuso una lección importante. 3.- Empieza a escribir sin dar nombres. 4.- Sé breve. No hace falta que cuentes todo. 5.- Céntrate en los errores cometidos. Se aprende más del error que del acierto. 6.- Plantea reflexiones finales al lector y algún desafío.

It is imperative to conduct a needs assessment: Assess the current leadership capabilities and skills within your organization. This can be done through surveys, interviews, or performance evaluations. Identify the gaps between the current and desired state of leadership. Remember, each organization is unique, so tailor your business case to align with your specific context and goals.