Mary was elated to be promoted. She had been with her firm for well over 10 years and knew the business inside and out. She saw the promotion as a testament to her loyalty and expertise paying off. So imagine her surprise when her boss pulled her aside a few weeks later and said, "Mary, I need you to really lead more effectively in this new role." Mary didn't understand what was being asked of her or how she was missing the mark.
While Mary loved her challenging and rewarding work on high stakes projects with high ticket returns, she also had to admit, there was also extremely high stress riddled with dysfunction. And she was now being asked to manage all of it. But no one was actually teaching her how to lead effectively.
Meetings in Mary’s firm seemed endless—one after another, from morning to night. Without clear action items, these meetings sometimes spiraled into chaotic sessions where personal agendas clashed, resulting in heated arguments. She was being asked to manage this.
Stress levels were nearly always high as there were frequent redirects, or lacking communication, and employees were pulled into multiple projects, struggling to meet impossible deadlines and manage unmanageable workloads. Mary’s job was to fix this.
Departments competed with each other rather than collaborating. Emergencies became the norm, and the lack of coordinated effort resulted in frequent crises that could have been avoided with better leadership.
Mary saw that without clear leadership, her team struggled to prioritize tasks, leading to burnout and frustration.
Mary’s observations reflected a broader issue: leaders in her organization were learning to lead effectively by struggling rather than through a systematic approach to leadership development. This culture of trial and error was not only inefficient but also detrimental to the overall health of the company. Effective leadership training could transform these struggles into strengths, equipping leaders with the skills they needed to foster a positive, productive, and innovative work environment.
Why We Dismiss Leadership Training as the Best Way to Learn to Lead Effectively
Let’s be honest—there are a lot of reasons companies skip leadership training, like Mary’s did initially. But no matter what the reasons, it sets new leaders up to fail. First among them is a pervasive misunderstanding the difference between managing and leading. Many companies fail to recognize that management involves overseeing processes and ensuring tasks are completed, while leadership is about inspiring and guiding people toward a vision.
Additionally, many companies believe that leadership is just a "Soft Skillset" and not worth the investment. However, leadership is now much more of a science, and is proven to improve organizational performance when its team is trained in critical skills like strategic thinking, decision-making, and emotional intelligence, all of which are essential for driving business success.
Sadly, employees who crave leadership training often face resistance from their bosses who don’t see the value. This not only hampers their growth but also limits the potential for organizational development, and, like Mary, these individuals are left wondering what’s wrong with them when they don’t innately know how to set the vision, communicate effectively, set priorities, and lead innovation like second nature.
Here are the facts many bosses need to understand in order to embrace leadership training.
Why Leadership Training Is A Set-Up — For Success
Cost and Resource Allocation
Reality: Leadership training can be costly and time-consuming.
Benefit: Effective leadership enhances team performance and productivity, leading to higher returns in sales and product development. Investing in leadership can amplify the results in these key areas, ultimately providing a significant ROI.
ROI Statistics: Leadership training programs can yield a 29% ROI within the first three months and a 415% annualized ROI (MSB Resources) (Soup.io).
The Longer View
Reality: Companies focused on short-term gains may not see the immediate benefits of leadership training.
Benefit: Leadership training fosters long-term growth, innovation, and stability, yielding substantial long-term gains that surpass short-term focuses. It can help mitigate the risks associated with high employee turnover and disengagement.
Statistic: Organizations with effective leadership practices are 50% more productive than those with ineffective leadership (MSB Resources).
Natural Leadership
Reality: The misconception that good leaders are born, not made, can lead to ineffective leadership.
Benefit: Proper training equips employees with the necessary skills to manage teams effectively and drive results, proving that leadership can be developed.
Statistic: Employees who receive leadership training are 20% more likely to remain with their company (WorldMetrics).
Formal Learning
Reality: Some companies rely on informal mentoring and on-the-job learning.
Benefit: Structured leadership training provides a comprehensive approach to developing well-rounded leaders, ensuring consistent and scalable leadership quality.
Statistic: Companies with strong leadership capabilities are more likely to outperform their competition financially (MSB Resources).
Integrating with Current Practices
Reality: Some companies believe their existing methods are sufficient.
Benefit: Exploring new, effective training solutions can uncover opportunities for improvement and innovation, ensuring continued success and growth.
Statistic: 58% of executives believe their current leadership training programs are not developing their leaders effectively (WorldMetrics).
Cultural Shift
Reality: Belief that formal training undermines individual initiative and learning through experience.
Benefit: Formal leadership training complements experiential learning, fostering a culture of continuous improvement and professional development.
Statistic: Companies with comprehensive leadership development programs report a 29% higher return following leadership training investments (WorldMetrics).
Succession Planning
Reality: Companies without robust succession planning may overlook leadership training.
Benefit: Proactive leadership training ensures a pipeline of capable leaders ready to step into critical roles, mitigating risks associated with leadership vacancies.
Statistic: 84% of organizations expect to have a leadership competency framework within the next year (WorldMetrics).
Customization
Reality: Generic training programs might not meet specific organizational needs.
Benefit: Tailored leadership training programs address unique challenges and goals, ensuring relevance and effectiveness.
Statistic: Digital leadership training solutions are expected to dominate the market with a share of over 50% by 2025, indicating a shift towards more personalized and accessible training methods (WorldMetrics).
The Hidden Costs of Ignoring Leadership Training
Not investing in leadership training can lead to some serious hidden costs:
Decreased Productivity: Poor leadership can lead to inefficiency and low productivity. Leadership training programs often yield substantial returns, with a 29% ROI within the first three months and a 415% annualized ROI (MSB Resources) (Soup.io).
Employee Replacement Costs: High turnover means more money spent on recruiting and training new hires.
Lost Opportunities: Without strong leadership, you might miss out on growth opportunities.
As Warren Bennis, a pioneer in leadership studies, once said, "Leadership is the capacity to translate vision into reality." Without training, that capacity can be severely hindered.
How Mary Learned to Lead Effectively At Last
Mary’s mid-sized tech firm ultimately decided to invest in leadership training workshops and leadership coaching after some very vocal internal teams lobbied hard for it. Within six months, turnover rates dropped by 14%, and employee self-reported stress levels dropped in half, as did time off requests for sick leave, a related metric to stress. The ROI was clear: investing in their leaders paid off in a big way.
Investing in leadership training might seem like a luxury, but the cost of ignoring it can be far more damaging. If your business is experiencing high turnover, low engagement, poor team performance, or any other symptoms of poor leadership, it’s time to rethink your approach. The long-term benefits far outweigh the initial investment, leading to a more productive, innovative, and successful business.
Remember, “The growth and development of people is the highest calling of leadership,” as Harvey S. Firestone said. By recognizing the signs and understanding the true cost of poor leadership, you can make informed decisions that will propel your business forward. Don’t let short-term thinking hold you back from the immense benefits of effective leadership training.
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