Effective leadership development can drive business success by: 1) Building leadership capability at all levels through programs that develop skills in self-awareness, best practices, and applying learning in the workplace. 2) Case studies show that leadership programs leading to promotions, innovation, and engagement have provided returns through growth and retention. 3) While impact may be longer term by changing behaviors, leadership development is an essential investment for visionary leaders to outperform competitors through new ideas.

1. Institute of Leadership & Management
Investing in
leadership development
to drive business success

2. Overview
What is leadership development?
Why it matters?
Developing leadership capability
How to implement it

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. What is leadership development
compared 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. Management development
enhances performance on
known tasks through the
application 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. Just how important is effective
leadership for business success?

7. There is strong and consistent evidence
that leadership and management
performance drives business success
Evidence shows UK businesses
under-perform due to deficiencies in
leadership and management
The UK Government’s growth strategy
identifies leadership and management as
a priority for businesses.

8. Best practices in leadership and management
strongly 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
Ireland
New 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. Organisations that don’t
invest in leadership
development:
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 Management
Research Forum, Summary Report 6. London

10. Leadership
development matters!
According to Association of
Business Recovery Professionals, 60%
60% of corporate failures
is due to ‘incompetence…
of company leaders’
"If you want to keep your company in the lead, you need to invest
in your people. Now more than ever.” Rupert Murdoch

11. Benefits of leadership development
Better 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 Organisational
Performance Department for Education and Skills: Research Brief No: RBX 05-02

12. How can leadership development
drive performance?
Being more visionary
Encourage Challenging old ideas
innovation
More creativity
Focusing on customers
Improved
customer Pursuing excellence
service
Empowering front line staff
Greater flexibility
Support
effective Efficiency
team working
More engaged workforce

13. How do I develop
leadership capability?
Some key principles
to consider…

14. Leadership development is about
changing 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. Knowing
Being
ILM 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. Leadership at all levels, not just at the top
Distributed leadership means “At Tesco we didn’t have one
leader… we had thousands of
that 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. How to implement effective
leadership development?
There are various models of leadership development.
ILM research has identified the key elements that will
maximise the impact of leadership on performance.

18. Five key elements to leadership development:
1 Use robust diagnostics and collect Support development
performance feedback
over time to establish
2 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 the
5 workplace

19. Driving business success
through 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. So what happens when
you get things right?

21. Case study 1
BDR Thermea (a £1bn Anglo-Dutch “This programme really
manufacturer of heating equipment) is worth its weight in
gold … the ILM
completed an ILM leadership accreditation is useful
development 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. Case study 2
Macdonald Hotel Group put 12 employees “ILM has added
through an ILM first line manager leadership value to our business
and helped achieve
development 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. Summary
Good leadership development can improve business
performance
When 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 behaviours
It is an essential investment – but it is one with
a return over months, not weeks, so set expectations within
your business.

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. Thank you
The Institute of Leadership & Management (ILM) is Europe’s leading management organisation.
We believe that good leadership and management holds the key to organisational effectiveness
and social and economic prosperity.
For more information visit our website www.i-l-m.com