We’re asked a lot of times whether there is any value in a company embarking on a leadership development programme (or initiative). Our answer, invariably, is yes.
What makes us so confident? Two things, at the very least…
1. The value of Leadership Development (research)
The first factor behind our confidence comes from a little-known study into the value of leadership development by The University of Pennsylvania.
They wanted to know whether the value of leadership development programmes could be quantified at all, and then in what way.
Embarking on a multi-year project with 3,000 companies from a broad range of industries, sizes and geographical areas, they set about their work.
The results (irrespective of the type of leadership development that took place) are astonishing.
They discovered that when 10% of revenue (normalised) was spent on capital improvements, productivity was boosted by 3.9%.
However, when the same amount of money was proportionately spent on human capital improvements, productivity at these companies was boosted by more than double that – by 8.5%.
However there’s another, equally compelling reason why leadership development programmes offer companies value…
2. The cost of doing nothing
…That is if companies choose to do nothing.
Now many might be justified in seeing this as a saving. After all, no money is being spent, right?
In reality, and from our experience, those costs just pop up in other places. And they end up dwarfing the amount of money that could have been spent on a leadership development programme. For example:
· Higher staff attrition and turnover rates
· Lower ‘internal hire’ rates
· Lower customer satistaction scores
· Increased skills gaps and quality defects costs, and
· Our old favourite, higher levels of employee disengagement
You can even calculate the cost – and ROI – of implementing a leadership development programme at your company with this handy calculator on Ken Blanchard’s site.
Avoid being ‘penny-wise, and pound foolish’ by doing this…
If you would like to find out more how a tailored leadership development programme can help your company give its productivity a boost, then why not have a look at The Leadership Challenge Workshop, or contact us for more details by following the link below…