Are You in the Bottom 50%?
The next hot trend comes with sobering statistics: more than 50% of business and HR executives expect severe to moderate shortages in executive leadership within the next three to five years. More than 60% of executives say that leadership development and talent management are their companies’ most critical human capital issue.
New models are needed to identify, develop and retain our leadership pipeline. With more aggressive growth strategies, higher expected returns on leadership development, and generational shifts in the workforce are driving this trend. As a result, organizations are rethinking their leadership development in three broad areas:
- Selection and assessment – What kinds of leaders will you need to execute your business strategy in the future? How can you identify those leaders from within and/or without? Consider using workforce analytics to mine talent data and understand where emerging leaders are coming from. Then continue to assess leadership potential within your pipeline to ensure you are making development investments.
- Leadership development – The lattice career progression we discussed in our last blog continues to drive a cross-sectional approach to provide a broad experience learning opportunity. While this method of development tests candidates’ flexibility and resiliency, it must be coupled with a strong support network of mentors, coaches, and peers. Investing in smart scenario-based learning, linking of cross-sectional teams, and strong support networks provide a rich leadership pipeline.
- Measurement – IN our data-driven workforce measurement is a must when evaluation the success of leadership development. It’s not enough to measure the outcomes of a single program or leadership class; data must be accumulated over time to truly enhance the workforce analytics. Do your leaders stay committed to your organization? Do they improve customer/client relations? Do they innovate and help build your organization’s reputation?
These models will help you identify, develop, and retain the next generation of leaders so that you are not in that leader-deprived 50%.