The Important of Leadership Development

The Important of Leadership Development

Leadership development is one of the most pressing issues facing organizations today.

Why is leadership development so important? Because it represents a great chance for organizations to seize a competitive advantage in their industries.

If your business commits to developing its leaders, you can expect to gain a significant competitive advantage by improving the bottom line; attracting, developing, and retaining talent; driving strategy execution; and increasing your success when navigating change.

Leadership Development Leads to Sustained Success

So why is leadership development important? According to the research, leadership development enables organizations to do the following 4 things that drive sustained success:

1.??????Improve bottom-line financial performance.

2.??????Attract and retain talent.

3.??????Drive strategy execution.

4.??????Increase success in navigating change.

Improve Bottom-Line Financial Performance

Companies that rate highly for their investments in human capital deliver stock market returns 5 times higher than those of companies with less emphasis on human capital. Leadership development builds capacity to reduce costs, drive new lines of revenue, and improve customer satisfaction.

Attract, Develop, and Retain Talent

Leadership development boosts employee engagement, increases the organization’s ability to deal with gaps in the talent pipeline, and reduces the headaches and costs associated with turnover. Great leaders attract, hire, and inspire great people. A manager without strong leadership skills will struggle to attract and retain high-performing employees.

In addition, it’s often significantly less expensive to develop, coach, and promote people internally over the long run than to hire someone externally, which makes leadership development a good investment.

Drive Strategy Execution

Effective leadership development isn’t development for its own sake. Organizations need a leadership strategy that closely connects with the business strategy and equips employees with the leadership skills needed to implement it. Leadership development allows organizations to shape the culture and strategy of the business.

In the words of The Conference Board: “Leadership development has enormous power in both shaping and changing the culture and strategy of business. Developing, coaching, and promoting people internally is significantly less expensive than the costs typically required to hire someone externally.”

Increase Success in Navigating Change

Leadership development increases people’s ability to lead in a disruptive world. When organizations look beyond developing senior executives and high potentials to unlock the full potential of their talent pools, agility is magnified.

A good leader will lead the business to grow with success, a great leader will ensure the business to grow successfully even if he is no longer with them.

Reference to

Why Is Leadership Development Important? | 4 Reasons | CCL

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