Driving Change Through Leadership Development

As emerging trends bring novel changes to corporates, leadership training is the prominent approach organizations can employ to prepare leaders to drive change. The ability of business leaders to unlock their potential, motivate teams, and navigate change depends on their soft skills and technical know-how. As companies prepare for uncertain changes and to retain their competitive edge, leadership development should be a strategic priority.

There is a growing recognition that companies should not only restrict leadership development to the few in C-suite. With the proliferation of digital adhocracies and shared problem-solving platforms emphasizing collaboration across the board, developing middle-level and lower leaders who are in constant interaction with employees has never been more urgent. Companies aiming to outpace their rivalries should distribute leadership training to create an engaged, capable, and motivated workforce. In their book Leadership Challenge, James Kouzes and Barry Posner emphasize the role of leaders in creating a shared vision and driving change (2023). This approach aligns with the thoughts of Paul Polman and Andrew Winston (2021), as well as Mautz (2021), who highlight the importance of leaders in creating a compelling vision to guide employees. Developing all individuals who make consequential decisions could undeniably strengthen corporate strategy and culture, as well as drive change.

For employees, leadership development signals that an organization values their long-term growth. Under the right circumstances, empowered leaders can drive employee growth, reduce work-related stress, create purpose in life, and ultimately boost mental health and well-being. This can foster engagement and empower leaders to support their teams and companies. Nonetheless, I have to note a vital finding by Yemiscigil, Born and Ling (2023) that not all leadership programs yield desired results; organizations should actively explore ways to implement leadership initiatives where employees feel valued as a strategy to produce intended outcomes.

From a company's perspective, leadership training is a strategic investment, but its costs and benefits might remain elusive if not carefully planned and implemented. For instance, it is ill-advisable for companies to interpret the return on investment from purely financial terms. Individuals tasked to implement these programs ought to underline the aspects of adaptability and resilience. As Hladio (2017) argues, leadership development initiatives should be about strengthening the broad capabilities necessary to adapt to evolving challenges and dynamics to create a competitive edge. As such, there is an increasing need to pitch for leadership programs that align with strategic initiatives. It will be futile if those responsible do not ensure that such initiatives are not merely check-the-box exercises but a decisive part of long-term growth strategy.

Even though leadership training requires considerable upfront investment, the financial returns can be huge. A recent article in the Harvard Business Review revealed that global companies spend more than $60 billion on leadership training annually (Yemiscigil et al., 2023). While the return on investment might not be apparent in some cases, companies can benefit from reduced turnover, better employee engagement, and save costs in employee recruitment and training. There is no doubt that well-honed leaders are innovative and responsive to emerging changes. Better adaptability improves financial performance, as leaders can effectively respond to disruptions and market demands.

I cannot overemphasize the role of the human resources departments in shaping leadership development programs. When HR managers serve as strategic partners, they certainly help align leadership programs with the overall business strategy. This might include identifying potential leaders, creating an inclusive environment, and providing continuous learning opportunities. As indicated by Carroll, Ford and Taylor (2022), HR managers should not only focus on managing talent but also actively develop leaders who create value and drive organizational change. HR managers who embed leadership development initiatives into the development culture can help create a responsive and agile organization.

For companies aiming to create and sustain value through change management, leadership training should not only be a human resource initiative but a priority. This is because companies investing in developing leaders across the board are better positioned to navigate change, drive innovation, and achieve strategic goals. Leadership development is a strategy that unlocks the potential of companies’ human resources and strengthens a culture of continuous improvement.

?

Author Laurent Yacoub, Ph.D.

References

Carroll,?B., Ford,?J., & Taylor,?S. (2022).?Leadership: Contemporary critical perspectives. SAGE.

Gerhardt.,?P. (2019).?Leadership: Leader's guide to step-by-step leadership development. Lulu Press, Incorporated.

Hladio,?M. (2017).?Developing leaders: Why traditional leadership training misses the mark. Morgan James Publishing.

Kouzes,?J.?M., & Posner,?B.?Z. (2023).?The leadership challenge: How to make extraordinary things happen in organizations. John Wiley & Sons.

Mautz,?S. (2021).?Leading from the middle: A playbook for managers to influence up, down, and across the organization. John Wiley & Sons.

Polman,?P., & Winston,?A. (2021).?Net positive: How courageous companies thrive by giving more than they take. Harvard Business Review Press.

Yemiscigil,?A., Born,?D., & Ling,?H. (2023, February 28).?What makes leadership development programs succeed??Harvard Business Review. https://hbr.org/2023/02/what-makes-leadership-development-programs-succeed