What Happens When You Put Off Leadership Development

1
What Happens When You Put Off Leadership
Development?

• Business Results Suffer

2
Necessity vs. Luxury?

• Leadership development appears to be one of those
  luxury items, something that the company can live
  without. And it is, or is it?

3
Outcomes Suggest.

• What happens when you have leaders that need to
  develop good skills and the resources are just
  not invested? Employees these days are not
  willing to work in poor work conditions. Despite
  the current economy and unemployment rates,
  employees are still willing to give up a good
  job when they feel they are treated well by
  managers and leaders. The cost to the company
  can be huge.

4
Over the past few articles I have outlined the
impact of not addressing poor leadership,
employee turnover, reduced productivity, and poor
team performance. Ive outlined the potential
costs to the company and impact to the bottom
line.
5
A Company Story.

• Recently, I talked with a company where this is
  exactly what happened. They decided to not
  invest in leadership development. The work
  environment continued to deteriorate for
  employees and turnover has occurred. The result
  an open position on the team, lowering the
  ability of the team to complete jobs and meet
  deadlines the need for leaders to invest time in
  hiring and retraining and ultimately more loss
  for the company and the delay in having a fully
  functioning team.

6
Initial Investment Saves Long-Term Funds

• Had the investment in leadership skill
  development been made what could the outcome have
  been? Higher performance of the entire team,
  improved work environment and culture, and
  reduced turnover. A stronger company and
  stronger bottom line result.

7
Skill Development A Worthy Investment

• For many leaders or business owners, leadership
  skill development is viewed as a perk, a
  non-essential investment, but the impact of
  failing to make this investment can be
  devastating to work teams, especially when an
  unskilled leader or manager is involved.  

8
Leadership Skills

• Some leaders have pretty natural skills, while
  others have never been in leadership before and
  have had poor role models. These folks need
  skill development. They need to understand their
  role and the impact that they have on the
  workforce.

9
Invest In Leadership

• When organizations do invest in leadership
  development positive outcomes are achieved for
  both the company and the individual. Leadership
  skill development can occur in house or via
  training and executive coaching.

10

• Executive coaching helps to solidify skills once
  they are learned. The coach can provide feedback
  and additional opportunities for learning during
  skill acquisition and retention.

11
Budget for Success

• A leadership budget should take both parts of the
  puzzle into account. Leadership skill
  development and monthly executive coaching.
  Costs can vary from a few thousand per year
  (4000) per staff person to 25,000 or more
  depending upon the level of training and
  coaching.

12
Evaluate Every Investment Including Leadership

• When evaluating the investment consider the
  impact of the loss of just one staff person.
  Using the 150 of salary just one employee
  leaving the organization that is a 35,000 per
  year employee can cost the company 52,500 in
  replacement and retraining costs, as well as time
  lost from leaders and other employees due to the
  shortage. The savings that could occur by
  investing upfront in leadership development using
  these numbers could be 25,000 to 48,000.

13
Dont Kick Yourself Later

• Business owners that fail to see the value of
  investing in leadership development for their
  managers and growing leaders kick themselves
  later when costs come back to the company.

14
Create a Strong Leadership Program

• Creating a strong leadership development program
  within your company is a wise investment and in
  the long run saves money and increases income
  with increased team performance and productivity.
  

15
Take Action

• For More Information and Our Executive Leadership
  Briefing
• www.PerformanceImprovementSystem.com