Leadership development to drive buisness success


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This presentation explains the difference between leadership development and management development with strong evidence why it matters and how this can drive business performance. Also some practical guidelines on how to develop leadership capability.

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Leadership development to drive buisness success

  1. 1. Institute of Leadership & ManagementInvesting inleadership developmentto drive business success
  2. 2. Overview What is leadership development? Why it matters? Developing leadership capability How to implement it
  3. 3. What is leadership? Leadership is about the ability to influence others and motivate them to perform certain actions Good leaders are visionary, innovative and inspire people whilst building trust so people follow them, even if risk is involved.
  4. 4. What is leadership developmentcompared to management development? ‘Management development is about learning how to do things right, whereas leadership development is learning to do the right thing’ (Warren Bennis)
  5. 5. Management developmentenhances performance onknown tasks through theapplication of proven solutions Leadership development builds an individual’s capacity into ‘being’ a better leader (Day, D Leadership development: a review in context Leadership Quarterly Vol.11, Issue 4, 2001)
  6. 6. Just how important is effectiveleadership for business success?
  7. 7. There is strong and consistent evidencethat leadership and managementperformance drives business successEvidence shows UK businessesunder-perform due to deficiencies inleadership and managementThe UK Government’s growth strategyidentifies leadership and management asa priority for businesses.
  8. 8. Best practices in leadership and managementstrongly correlates with business performance Average score across 18 management practices by country US Japan Germany Identical in order to those Sweden Canada listed for high productivity UK US Italy Japan France Australia Germany Mexico Sweden Poland Canada IrelandNew Zealand UK Portugal Chile Argentina Greece China Brazil Source: Bloom & Van Reenan (2010) Why do India Management Practices Differ Across Firms & 2.4 2.6 2.8 3 3.2 3.4 Countries Centre for Economic Performance, LSE)
  9. 9. Organisations that don’tinvest in leadershipdevelopment: Have a comparatively low rate of adoption of new practices Adopt fewer new practices than their counterparts.Source: Porter, M. and Ketels, C.H.M. (2003).UK Competitiveness: Moving to the Next Stage. AIM ManagementResearch Forum, Summary Report 6. London
  10. 10. Leadershipdevelopment matters!According to Association ofBusiness Recovery Professionals, 60%60% of corporate failuresis due to ‘incompetence…of company leaders’"If you want to keep your company in the lead, you need to investin your people. Now more than ever.” Rupert Murdoch
  11. 11. Benefits of leadership developmentBetter qualified leaders means: More effective managers A better performing workforce • Supports business growth • Increase in efficiency of the production of products and services • Higher quality products and improving the quality of existing products.Bosworth, Davies and Wilson (2002) Managerial Qualifications and OrganisationalPerformance Department for Education and Skills: Research Brief No: RBX 05-02
  12. 12. How can leadership developmentdrive performance? Being more visionaryEncourage Challenging old ideasinnovation More creativity Focusing on customersImprovedcustomer Pursuing excellenceservice Empowering front line staff Greater flexibilitySupporteffective Efficiencyteam working More engaged workforce
  13. 13. How do I developleadership capability?Some key principlesto consider…
  14. 14. Leadership development is aboutchanging behaviour and involves developing: An understanding of what good leadership looks like - understand what you want and the changes you want to create Insights into yourself – how you currently behave and its effectiveness Improving behaviours in getting people to work co-operatively.
  15. 15. Knowing BeingILM calls this approach the Doing Knowing – Being – Doing model Knowing is about understanding best practice, and the theories and principles that shape that practice Being is the self-awareness and personal insight that enables leaders to use this knowledge to shape their own behaviour in ways that work for them Doing is the ability to translate these two dimensions into effective practice.
  16. 16. Leadership at all levels, not just at the topDistributed leadership means “At Tesco we didn’t have one leader… we had thousands ofthat people at all levels have leaders.”the ability to: Sir Terry Leahy, former CEO of Tesco Engage the people they lead Inspire them to share the vision for the future of the organisation Empower them to take responsibility for making it happen.
  17. 17. How to implement effectiveleadership development?There are various models of leadership development.ILM research has identified the key elements that willmaximise the impact of leadership on performance.
  18. 18. Five key elements to leadership development:1 Use robust diagnostics and collect Support development performance feedback over time to establish2 Use these insights to identify why you sustainable behaviours behave as you do and your objectives and capabilities,3 Link your learning to these insights creating a longer but more rewarding Bring the workplace into your learning investment.4 (e.g. through Action Learning) Take your learning back into the5 workplace
  19. 19. Driving business successthrough effective leadership Seek out global best practice Develop leadership capability at all levels of your organisation Set major transformational goals to be ahead of your competitors Develop leadership and management capability to make and sustain the transformation.
  20. 20. So what happens whenyou get things right?
  21. 21. Case study 1 BDR Thermea (a £1bn Anglo-Dutch “This programme reallymanufacturer of heating equipment) is worth its weight in gold … the ILMcompleted an ILM leadership accreditation is usefuldevelopment programme for the credibility it gives to organisations and individuals, (but) the The programme involved: real benefit is the • 10 taught days delivered over 15 months to 30 managers learning process itself • One-to-one coaching sessions. and its legacy.” Yan Evans, Technical Director. The result: • Three major innovation projects developed, leading to a 25% growth plan between 2010-2013 • Improved strategic and leadership skills.
  22. 22. Case study 2 Macdonald Hotel Group put 12 employees “ILM has addedthrough an ILM first line manager leadership value to our business and helped achievedevelopment programme our vision of growing our people within.” Marie Pollock, The programme involved: Training and • An introduction to the basic skills, knowledge, and Development understanding required by today’s first line manager Manager. • Practical techniques for tackling managerial problems • Effective communication of outcomes. The result: • Two years later 8 of the 12 staff have been promoted to Operations Manager positions • Avoiding the need to use expensive external recruitment • Ensuring high levels of employee engagement and retention.
  23. 23. SummaryGood leadership development can improve businessperformanceWhen investing you need to remember: Leadership is similar but not the same as management The support and application needs to be grounded in practice Time for impact will be longer as you are changing people’s behavioursIt is an essential investment – but it is one witha return over months, not weeks, so set expectations withinyour business.
  24. 24. Final thoughts You need good managers to keep doing well what you are currently doing You need good leaders to do new things better You need great leaders to do things nobody else thought of better than anyone else imagined was possible.
  25. 25. Thank youThe Institute of Leadership & Management (ILM) is Europe’s leading management organisation.We believe that good leadership and management holds the key to organisational effectivenessand social and economic prosperity.For more information visit our website www.i-l-m.com