Significant Negative Financial and Business Impact When Learning Is Neglected

According to Forrester research 82% of respondents experienced significant business and financial damage in tha past 12 months.

Investing in performance- and leadership development is not just a strategic move but a crucial risk mitigation strategy in today's dynamic business landscape.

• Don′t think about playing game when organisation and leaders aren't learning. Have strength and courage to look at the problem and take responsibility.
• Don′t think solution is out there if organisation and leaders aren't learning. The organisation needs to change.
• No one is allowed to lag behind. If every employee and leader in every department isn't learning the organisation isn't doing its job.

These 3 ground principles guided the top 9% of companies excelling in both financial performance and human capital development achieve an astounding 28% return on invested capital (ROIC). This figure isn't a mere statistical outlier; it's a testament to the potency of balanced investment.

The phenomenon, where people tend to forget a significant portion of what they've learned if they don't use or apply that knowledge, is commonly known as the "forgetting curve." This concept is often attributed to the work of Hermann Ebbinghaus, a German psychologist who conducted pioneering research on memory and forgetting. His findings led to the development of the forgetting curve, which describes the exponential rate at which we forget information if it's not actively reinforced or applied.

In fact, according to the curve, you forget:

• 50% of all new information within a day
• 90% of all new information within a week

The Good news is that we can do something about it

Investing in performance- and leadership development is not just about improving organizational capabilities; it's a fundamental risk management strategy. A well-prepared and empowered workforce, coupled with effective leadership, is better equipped to navigate uncertainties, seize opportunities, and ensure the long-term resilience and success of the organization.

In the section on performance and leadership development below, we present groundbreaking research and facts from companies that not only outshine their peers financially but also exhibit superior ratios and a proactive disposition. We embark on an expedition to decode the art of translating knowledge into actionable leadership prowess, minimizing the forgetting of learned information among leaders and employees.

Dual Investment in Performance- and Leadership Development for repetitive success

Research facts:

According to McKinsey's research of 1800 companies across all sectors in 15 countries, 9 percent of the companies successfully achieved gains in both financial performance and human capital development. These companies accomplished a remarkable return on invested capital (ROIC) of 28 percent, positioning themselves at the peak of financial success. Notably, they are 4.3 times more likely than the average company to maintain top-tier financial performance for 9 out of 10 years, demonstrating their consistency in excellence.

On the other hand, typical performers and people-focused companies achieved a return on invested capital (ROIC) ranging from 6% to 9%. It is equally crucial to invest in both performance and people development to become part of the group of best-performing companies. Top performers have a relatively low attrition level of 8%, while others have 14%.

In another research Jim C. describes 10X leaders as leader rejecting the idea that forces outside their control or chance will determine their results.They accept full responsibility for their own fate. They core behaviours are disciplin, empirical creativity and productivity. They are leaders with a powerful mixture of personal humility and professional will. They are among for much more then just becoming succesfull. 10X companies had attained exceptional long term performance in highly uncertain and chaotic industries.

The 20 mile march concept is about having concrete, clear, intelligent and rigorously pursued perfromance mechanism to stay on track. They create the discomfort of unwavering commitment to high performance in difficult conditions and the discomfort of holding back in good conditions. Evidence shows that 10X companies exemplified the 20 mile march principle early long before they were big companies. Results show that companies that lost discipline have failed to achieve its combined ratio and fell behind in its core business.

All 20 mile march companies in its history had an episode which led to devastating outcome. Only 2 of 10X leading companies had episode of failing and neither of them led to catastrophe, because they self corrected before the storm.

10X Companies had 72% of time better Current ratio than others, 80% better cash to total asset & cash to total liabilities, and 64% of time had better total debt to equity than others. They made decisions quickly in 57% of cases compared to others and were proactive in 68% of the decisions.

From research to practice

It's absolutely true that attending a leadership development course is just the first step in becoming a more effective leader. The real challenge lies in applying what you've learned in your daily life, both in business and personal contexts. Here are a few key points to consider when it comes to transferring your knowledge from the classroom to practice:

• Consistent Practice: Just like any other skill, leadership skills require consistent practice. Make a conscious effort to apply what you've learned in various situations. This might mean setting specific goals for yourself or creating opportunities to practice your leadership skills regularly.
• Self-awareness: Understanding your own strengths and weaknesses as a leader is crucial. Regularly assess your leadership style and be open to feedback from peers and Professional Executive mentors. This self-awareness can help you identify areas where you need to improve and focus your efforts.

"To be an effective leader, you must first be self-aware. Know your strengths, weaknesses and blind spots." - John C. Maxwell

Daniel Goleman: Known for his work on emotional intelligence, highlight the importance of self-awareness, empathy, and social skills in leadership. Leadership influenced by Goleman's research involve improving emotional intelligence, fostering a positive work culture, and enhancing conflict resolution abilities.

Warren Bennis: a pioneer in the field of leadership studies, emphasized the importance of self-discovery and authenticity in leadership. Leadership inspired by Bennis involve deepening self-awareness, fostering mentorship relationships, and embracing one's unique leadership style.

• Mentorship: As the MIT professor ( 美国麻省理工学院 ) suggests, having a Executive mentor who is experienced in strategy, execution and negotiation can be invaluable. A professional Executive mentor/coach can provide guidance, offer insights, and help you navigate challenging situations. They serve as a sounding board for your ideas and help you develop solutions to complex dilemmas.

"The greatest gift a leader can give is not just knowledge but the empowerment that comes from mentorship." – John C. Maxwell

• Role-playing: Role-playing can be a highly effective way to practice and refine your negotiation and leadership skills. By simulating real-life scenarios, you can gain confidence and develop strategies for handling different situations.

"Role-playing is the laboratory where leaders experiment, fail, and ultimately succeed in building the confidence to navigate the challenges of leadership" - Warren Bennis

• Continuous Learning: Leadership is an evolving field, and the best leaders are those who continue to learn and adapt. Stay updated on the latest leadership trends and research, and be open to trying new approaches

"The moment you think you've learned it all is the moment you stop being an effective leader." — Patrick Lencioni

"The best leaders are those who never stop learning, adapting, and growing." — John C. Maxwell

"Leadership is a dynamic process, and continuous learning is the fuel that keeps it moving forward." — Ken Blanchard

• Setting Clear Goals: Define specific leadership goals for yourself. What do you want to achieve as a leader? Having clear objectives will give you a sense of purpose and direction. Leadership goals are the specific objectives that individuals in leadership positions set for themselves to guide their actions, behaviors, and the overall direction of their teams or organizations.

"The best leaders don't just navigate the path; they carve it. Setting clear goals is the chisel of leadership." - John C. Maxwell

John C. Maxwell: emphasizes the importance of setting goals related to personal growth and character development. Leadership goals based on Maxwell's teachings include improving one's ability to influence, becoming a better communicator, developing stronger decision-making skills etc.

Jim Collins: explores the characteristics of exceptional leaders. Leadership goals in line with Collins' principles might revolve around creating a culture of discipline, setting ambitious but achievable long-term objectives, and building a strong leadership team.

Stephen R. Covey: emphasizes personal and interpersonal effectiveness. Leadership goals following Covey's teachings could involve prioritizing tasks, cultivating effective communication skills, and working toward a balanced life that includes both personal and professional fulfillment.

Peter Drucker: Often regarded as the father of modern management, emphasized the need for leaders to set clear objectives and continually measure progress. Leadership goals in line with Drucker's philosophy include defining key performance indicators (KPIs), setting measurable targets, and regularly assessing outcomes.

Michael Porter: work in competitive strategy and leadership involves setting goals related to competitive advantage, market positioning, and strategic decision-making. Leaders following Porter's principles may set goals around market share, differentiation, and innovation.

In summary, leadership goals are highly individualized and can be influenced by a variety of leadership authors and experts. The choice of goals should align with the leader's personal values, the organization's mission, and the specific challenges faced by the team or organization. Effective leadership goal-setting is an ongoing process that evolves as the leader's skills, circumstances, and priorities change.

"In the realm of leadership, clarity in goals is the compass that guides every decision and action." - Patrick Lencioni

"A leader's success is directly proportional to their ability to set and communicate clear, compelling goals." - Jack Welch

"Setting clear goals is the ignition switch that propels ordinary leaders to achieve extraordinary results." - Warren Bennis

"Leadership is about vision, and vision is about setting clear goals that inspire and motivate others to action." - John F. Kennedy

• Feedback and Reflection: Regularly seek feedback from your team and colleagues. Reflect on your experiences and learn from both successes and failures. Use feedback as a tool for improvement.

"Feedback is the breakfast of champions." - Ken Blanchard

"Reflection without action is just a passing thought; action without reflection is just a passing storm." - John C. Maxwell

"Reflection turns experience into insight." - John C. Maxwell

"Leaders who embrace feedback as a gift are the ones who inspire lasting change." - Marshall Goldsmith

"Leaders who value feedback create a culture of trust, growth, and innovation." - Amy Edmondson

• Persistence: Changing habits and behaviors takes time and effort. Don't get discouraged if you face setbacks along the way. Stay persistent and keep working towards becoming the best version of yourself as a leader.

"Persistence is the key to unlocking the door of success, and changing habits and behaviors is the journey that leads us there." - John C. Maxwell

Success is the result of small, positive habits practiced with unwavering persistence." - Darren Hardy

Conclusion

In summary, transferring knowledge from leadership development courses into effective leadership practice requires dedication, self-awareness, and ongoing effort. Having a professional Executive mentor and utilizing tools like role-playing can significantly enhance your ability to apply what you've learned. Remember that leadership is a journey, and continuous growth is essential for long-term success.

McKinsey's research reveals a remarkable group of companies, representing 9% of the sample, excelling in both financial performance and human capital development. These top performers achieve an impressive 28% return on invested capital (ROIC) and consistently maintain top-tier financial performance for nearly a decade.

Conversely, typical performers and people-focused companies, with ROIC figures ranging from 6% to 9%, emphasize the importance of investing in both performance and people development to reach the pinnacle of success. Notably, top performers boast an attrition rate of only 8%, highlighting the value of talent retention.

Jim C.'s research introduces the concept of 10X leaders who embrace personal responsibility and core behaviors like discipline, creativity, and productivity. These leaders, found in 10X companies, achieve exceptional long-term performance in volatile industries.

The "20-mile march" principle emphasizes structured performance mechanisms to maintain consistency. Evidence suggests that 10X companies have adhered to this principle throughout their history, while deviations often led to setbacks.

Remarkably, only 2 of the 10X companies faced significant challenges, which they self-corrected before catastrophe struck.

Finally, 10X companies exhibit financial superiority with better ratios and a proactive approach. This research underscores the importance of a balanced approach, integrating financial success, talent development, and leadership excellence to thrive in today's competitive business environment.