Why Developing A Strong Leadership Bench Is Tough
Leadership development is just something MBAs talk about. Good talent can be found anywhere and, if we don’t have it now, we can just hire it later.
Sound familiar? It may.
Recent Global Leadership Forecast
According to a newly released survey conducted by Development Dimensions International (DDI) and The Conference Board, only 15% of organizations have a strong leadership bench (Global Leadership Forecast 2014 | 2015, page 6). This is the case even though CEOs identified Human Capital as being the number one challenge (page 8). To emphasize this disconnect further, organizations that fill a larger percentage of their positions internally have more than three times higher financial performance (page 43).
Why Failing in Developing Leadership Bench Strength
DDI conducted an extensive survey along with solid, practical recommendations on how to prepare leaders and develop talent within organizations. Within the report, systematic issues and opportunities are highlighted. Each of the elements are relevant, but I believe some of the reasons why developing leadership bench strength is challenging is due to leader and cultural deficiencies.
Here are some potential leadership and cultural failures:
1 – Current organizational leaders are self-centered. This one hits hard but the truth hurts at times. Some leaders want to be the sole expert and decision-maker. Developing other leaders means they lose some power, and this blinds them to how developing leaders can exponentially add to the value and performance of teams, departments, and organizations.
2 – Resources are scarce, specifically time. Time is limited, and developing future leaders takes time. Having formal training programs also takes budget and the right people to develop and deliver them. However, having mentors only takes time with limited financial impact, and the pay-off can be big. There are ways to deliver effective leadership development without a lot of cost. The time factor cannot be eliminated other than by the extra time a leader will gain when a new leader takes on more and more responsibility.
3 – Focus is on the short-term most of the time. Results are expected sooner rather than later. Quarterly results take precedence over annual ones, and annual results take precedence over five year ones. Developing a leader takes a long-term outlook. Piling on resources to develop a leader more quickly cannot happen, even if the resources were available. Giving a new leader bigger and bigger projects happens over time. Making mistakes and learning from them happens over time. Having foresight on leader development delivers a stronger internal bench.
4 – Competencies required for future growth are undefined. Even if a company has a five year strategic plan, it probably isn’t broken down into what competencies will be needed today as well as three and five years from now. Understanding the skill sets and capabilities required become an afterthought or down-the-road view. If competencies are undefined, then how can leaders be developed to step into new future roles and do so in an effective way? Taking the extra step to define future competencies will align with having the leaders ready to step up as plans unfold.
Developing a strong leadership bench is more than a leadership responsibility; it is generational one, too. Steps need to be taken to build future leadership strength.
How to Develop a Strong Leadership Bench
DDI frames having a strong leadership bench as “Ready-Now Leaders,” and they outline several practices that, if done, will help put organizations ahead in their leadership development efforts or, if not done, put them behind. Some samples include:
- Having high quality development plans will boost your bench strength by 9%.
- Having a systematic process to determine required leadership skills will enhance bench strength by 7%.
- Not having leadership performance expectations linked to your organizational strategy will decrease bench strength by 11%.
- Not having leadership competencies clearly defined will decrease your bench strength by 8%.
None of these elements are rocket science but they do take leadership and a growth mindset.
To develop Ready-Now Leaders, the following steps may be required:
Step 1: Begin with ourselves and ask why do we want to lead? If it isn’t to make a positive difference and develop other leaders, then it may be time to step aside.
Step 2: If you pass the first step, review your organizational strategies – near and long term. Given the technology, organization, and cultural shifts that will happen, identify the skills and talents required to leverage the shifts and lead with high performance and engagement.
Step 3: Determine how to identify your high potential people and then write down their names.
Step 4: Tailor a leadership development plan for the identified individuals – include mentors, education, and other sources to develop a future-ready leader. Set key milestones.
Step 5: Implement as soon as possible, gather feedback, enhance, and continue to build strong Ready-Now Leaders!
Each leader carries a responsibility to set a good example and develop future leaders. Value exists when leadership development values are strong.
What steps would you add to develop a strong leadership bench? What has work for you? Share your experiences.
Founder & President - Growing Your Leaders, Inc.
9yJon, timely and thoughtful article. I would like you to consider adding one to the "Reasons why organizations don't develop their bench strength." This being, they've always been able to source their talent on the open market. Historically, I believe this was true. However when one considers the percentage of people retiring in the next 5 - 10 years, and the total available talent pool - the gap between the two is growing. This will be the big wakeup call and one that could severely cripple lots of organizations.
Consciousness Advisor | Organizational Development | Leadership Development
9yJon, thanks for your article. The topic is important. However, most leadership development is not based on actual development of the individual, their worldview or their brain. It is important to give leaders experiences that take them through was Torbert and Rooke call the 7 Transformations of Leadership. If we simply only considered transactional versus transformational leadership, research has already been completed to indicate accurately 92% of the time, who a transformational leader is by their brain behavior. We are at a cusp and must change how we identify, evaluate and develop leaders. We need more transformational leaders at the helm. Of course, transactional leaders and followers who are tolerant of transactional leadership styles are just one factor holding us back. It is also time to reconsider the leader/follower governance model. Frederic Laloux's book on Reinventing Organizations, addresses the new and emerging governance model which disposes of leaders and managers in the hierarchal sense. The topic is timely. Thanks for posting!
IT Business Unit Specialist - VP Technology
9yVery good article Jon! I especially appreciate the steps you identified for ready-now leaders. Things constantly change, and it's critical to be prepared in this sense...