Many businesses are sleep-walking into a crisis that threatens their success and even survival!
Due to a combination of demographics – the shortage of leaders to replace the impending retirement of many current leaders in the West, the explosive growth of companies in the East, and the tougher demands on leaders to be successful in the rapidly changing commercial environment – business worldwide is being threatened by a drought of available leaders of the calibre necessary to lead their businesses successfully in the first half of the 21st Century.
The good news is that there is still time for today’s leaders to do something about this. And Hay Group research shows that those businesses that have already addressed this are amongst the world's highest performers, and have out-performed others in share price growth.
Our research shows that there are six effective actions the best performing companies are taking to safeguard their leadership pipeline. These are:
Not all leadership development however is so effective: outdoor activity-based programmes for mid and senior managers, classroom-based leadership training programmes for mid-level managers, using internal coaches for senior managers - all these are less effective.
The challenge for businesses is to identify the right managers for development, and to invest in them. Hay Group has developed a 'science for selection' to help address these problems, helping businesses link leadership development to business strategy, just as market leaders such as P&G, ABN AMRO, Caterpillar and PepsiCo have done, to position themselves for the future.
The support and the systems exist to help CEOs improve leadership capability and prepare for the leadership drought ahead. Now they must engage in developing future leaders.