THE BUSINESS CASE FOR
     LEADERSHIP
   And Its Development
LEADERSHIP MATTERS
More Than You Think
Leadership Affects Staff Morale
• Staff cited interactions with their direct
  supervisor as one of the key events that   ...
Staff Morale Affects Results

                              Staff
 Research shows that         Morale
organisations where ...
Staff Turnover
• Staff morale impacts on staff turnover and     The Quality
  retention rates5.                           ...
Direct Contribution of Leadership


An independent review of research showed
  that the quality of leadership consistently...
Clearly Leadership Matters

                 Staff
             Attitudes &
               Morale
                        ...
LEADERSHIP DEVELOPMENT
A Worthwhile Investment
Leadership Can Be Developed

  From personal skills such as initiative and self-
    confidence, through to relational ski...
“Leadership development is the single
 most important program of any army”
      Lieutenant General Frederic J Brown
Strengthening Leadership Is A
     Critical Strategic Challenge
Research shows that:
• More than 75% of companies see deve...
Leadership Development Pays
 A study by Harvard Business School found that
  organisations who made wise investments into
...
In Closing


Research           Therefore            Thankfully
Shows

   • Leadership       • Strengthening       • Leade...
References
1.    Basch, J. & Fisher, C. (2000), ‘Affective Events-Emotions Matrix’ in N. Ashkanasy, W. Zerbe & C.
      Ha...
Note 9
R. Boaden (2006), ‘Leadership Development: Does It Make A Difference’, Leadership &
Organization Development Journa...
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The Business Case For Leadership & Its Development

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Helps you make your case to other senior managers for investing in your leadership development initaitive.

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  • Research shows that:The quality of leadership displayed by a person’s direct supervisor is key determinant of staff morale.Staff morale impacts on productivity and bottom line resultsStaff morale plays a large role in shaping staff retention and turnover rates.Effective leadership is also directly related to retention and turnover rates.Retention and turnover rates have a significant impact on company results.Effective leadership also has a direct impact company performance, consistently accounting for between 20-45% of differences in bottom line results.
  • The Business Case For Leadership & Its Development

    1. 1. THE BUSINESS CASE FOR LEADERSHIP And Its Development
    2. 2. LEADERSHIP MATTERS More Than You Think
    3. 3. Leadership Affects Staff Morale • Staff cited interactions with their direct supervisor as one of the key events that The Quality of puts them in a bad mood at work1. Leadership • 98% of staff say they perform at a higher level when they are encouraged by a leader who they respect2. Staff • Leadership style accounts for as much as Morale 12% of variance in in the level of staff commitment3.
    4. 4. Staff Morale Affects Results Staff Research shows that Morale organisations where staff morale is high, outperform organisations where staff Bottom morale is low4. Line Results
    5. 5. Staff Turnover • Staff morale impacts on staff turnover and The Quality retention rates5. of Leadership Staff Morale • As leadership affects staff morale, it not surprising to discover that leadership also affects staff turnover6. Staff Turnover • The cost of staff turnover has been Bottom Line Results estimated at 150% of the employee’s salary package7.
    6. 6. Direct Contribution of Leadership An independent review of research showed that the quality of leadership consistently accounted for between 20-45% of differences in company’s bottom line results8.
    7. 7. Clearly Leadership Matters Staff Attitudes & Morale Reduced Effective Turnover Bottom Leadership Line Results
    8. 8. LEADERSHIP DEVELOPMENT A Worthwhile Investment
    9. 9. Leadership Can Be Developed From personal skills such as initiative and self- confidence, through to relational skills such as communication, conflict management and interpersonal savvy, there is ample evidence that people can learn to become better leaders9.
    10. 10. “Leadership development is the single most important program of any army” Lieutenant General Frederic J Brown
    11. 11. Strengthening Leadership Is A Critical Strategic Challenge Research shows that: • More than 75% of companies see developing leadership as a key workforce challenge10. • Managers believe that investing in leadership is the best way to address a whole host of organisational challenges11. Therefore investing in leadership development is critical to your company’s competitive advantage.
    12. 12. Leadership Development Pays A study by Harvard Business School found that organisations who made wise investments into developing their leaders delivered substantially higher share returns than those who did not12. Further, investing time and money into developing leaders has been shown to improve staff morale and retention – that’s all staff not just the leaders being developed13.
    13. 13. In Closing Research Therefore Thankfully Shows • Leadership • Strengthening • Leadership Matters Leadership Is Can Be Good Developed Business
    14. 14. References 1. Basch, J. & Fisher, C. (2000), ‘Affective Events-Emotions Matrix’ in N. Ashkanasy, W. Zerbe & C. Hartel, (eds), Emotions in the Workplace, Quorum Books. 2. Kouzes, J & Posner, B. (2000), The Leadership Challenge, 4th edn., John Wiley & Sons. 3. Goleman, D. (2000), ‘Leadership That Gets Results’, Harvard Business Review, March-April. 4. Ryan, A., Schmit, M. Johnson, R. (1996), ‘Attitudes and Effectiveness: Examining at an Organisational Level’, Personnel Psychology, Winter, pp. 853-882; and, Ostroff, C. (1992), ‘The Relationship Between Satisfaction, Attitudes & Performance: An Organisational Level Analysis’, Journal of Applied Psychology, December, pp. 963-974. 5. R. Horn, P, & Gaertner, S. (2000), ‘A Meta-Analysis of Antecedents and Correlates of Employee Turnover’, Journal of Management, 26, 3, 479 . 6. Griffith, J. (2004), ‘Relation of principal transformational leadership to school staff job satisfaction, staff turnover, and school performance’, Journal of Educational Administration, 42, 3, pp. 333-356; Leveck, M. & Jones, C. (1996), A meta-analytic review of ‘The nursing practice environment, staff retention, and quality of care’, Research in Nursing & Health, 19, 4, pp. 331-343. 7. Schlesinger, Leonard A.; James L. Heskett (1991). ‘Breaking the Cycle of Failure in Service’, MIT Sloan Management Review, 33, 3, pp. 17–28. 8. D. Day & R. Lord (1988), ‘Executive Leadership & Organisational Performance’, Journal of Management, Fall. 9. See next page. 10. Day, D. & Halpin, S. (2008), An Integrative Approach to Leader Development, CRC Press. 11. Martin, A. (2007), ‘The Changing Nature of Leadership’, Center for Creative Leadership. 12. Lauries Bassi & Daniel McMurrer, (2007), ‘Maximizing Your Return Through People’, Harvard Business Review, March. 13. See research by Bersin & Associates
    15. 15. Note 9 R. Boaden (2006), ‘Leadership Development: Does It Make A Difference’, Leadership & Organization Development Journal, 27, 1, 5-27. C. Douglas (2003), Key Events & Lessons for Managers in a Diverse Workforce: A Report on Research & Findings, Center for Creative Leadership. F. Sala (2002), Do Programs Designed To Increase Emotional Intelligence Work, Hay Group;. R. Boyatzis, D. Leonard, K. Rhee & J. Wheeler (1996), ‘Competencies Can Be Developed But Not the Way We Thought’, Capability, 2, 25-41. S. Stumpf (1995), ‘Applying New Science Theories in Leadership Development Activities’, Journal of Management Development, 14, 5, 39-49. J. Howell & P. Frost (1989), ‘A Laboratory Study of Charismatic Leadership’, Organisational Behaviour & Human Decision Making Processes, 43,2, 243-269. M. Sashkin (1988), ‘The Visionary Leader’, in J. Conger, R. Kanungo & Associates (eds), Charismatic Leadership, Jossey-Bass. F. Fiedler & M. Chemers (1984), Improving Leadership Effectiveness, Wiley. Latham, G. & Saari, L. (1979), ‘Importance of Supportive Relationships in Goal Setting’, Journal of Applied Psychology, 64,
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