I had been hired by an organization to help improve their leadership development (LD) programs. On my first day, I was asked to meet with a senior executive who would oversee my work.
The executive started our meeting by telling me it wasn’t his idea to hire me, and he didn’t believe LD worked. He told me straight out that he only hired me to “check a box,” as requested by his superiors.
As you can imagine, I didn’t enjoy being told on my very first day that I was a checked box. And yet, I’d be lying if I said I didn’t understand where his disdain was coming from.
Profit center leaders, in particular, don’t always believe that LD gives a sufficient ROI to justify the time and money invested. And even though I would disagree to some extent on the payoff, I’ll admit that a lot of LD simply does not produce tangible, positive results.
You can see the evidence of this failure in macro workforce trends.
In general, employee engagement and trust are down, while stress and attrition continue to rise.
People leaders largely determine whether employees are happy, engaged, and productive in their jobs. A good leader can help teams go from good to great; poor or toxic leaders can erode all trust in an organization.
LD is supposed to be an antidote for all these problems, so why is it struggling to achieve its primary goals?
A good part of the problem is that many of the firms and schools offering LD programs make little or no effort to measure their impact on actual performance, largely because the people buying the programs aren’t demanding proof that they’re actually changing leadership behaviors.
A 2023 study by researchers at the MIT Sloan School of Management found that LD programs at leading business schools were often designed without mechanisms to measure leader performance. Nearly three quarters (70%) of business school respondents said they “settle for positive reactions” from clients rather than performance metrics showing that their solutions had an impact.
As for the consumers of these programs, the Sloan survey contacted 46 HR executives and found “their selection of LDPs (leadership development programs) is seldom guided by evidence of effectiveness.” Instead, the survey revealed, they buy based on the “look” of the consulting firm’s website.
As one executive noted, "leadership development decisions seem to resemble the online dating industry, where swiping left or right is based more on appearance than substance,” the study’s authors concluded.
Instead of development focused on the specific leadership needs of an organization and individual leaders, we get generic “sheep-dip” seminars, where large numbers of leaders are brought together and given a generic list of skills and mindsets they need to adopt.
It doesn’t have to be this way.
There are solutions available that have a laser-like focus on performance and can help you build long-term accountability measures to ensure leaders remain faithful to new behaviors.
But it’s going to be a bit tricky to find the schools or firms that are willing to do the hard work of designing a solution that fits your organization’s needs.
I think there are four key questions to ask any LD partner before writing a check. These questions will quickly establish if you are buying something that is fit for your organization’s purpose, or simply deploying a “chicken-soup” solution that makes your leaders feel good for a few days but doesn’t lead to long-term behavior change.
Otherwise, you’re just checking boxes and wasting a ton of money in the process. In my next article, I’ll be discussing some of the steps needed to create an effective Performance-Based Leadership (PBL®) solution.
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