Dare to be different in 2017

Everything is changing, and changing quickly. We know that. Organisational leaders are often struggling to make sense of the globalised, mobilised and rapidly changing environment they find themselves in, learning the lessons of complexity quickly and finding ways to thrive.

Challenges for the organisation

When one part of a complex system changes, the whole system changes in response. This change includes the role of leadership at different levels of the organization.

A 2016 Study of Australian Leadership (SAL) Report surveyed 8,000 leaders, finding that 40% of Australian workplaces are not meeting their performance targets for ROI and profitability. This report delineated the difference in leadership roles across three levels of the organization: senior leadership, workplace leadership (middle management) and frontline leadership. Somewhat predictably, it found that across all these levels leadership is pivotal in driving motivation, engagement, performance, culture and innovation.

The SAL Report investigated gaps and weaknesses in leadership development in Australia. In general there was not enough development of the right type, and a significant underinvestment in frontline leadership. For every $10 spent on senior leaders, $1 is spent on frontline managers, even though it is the frontline managers who enact direct leadership for 70-80% of employees and are in many industries the closest to the customer.

This SAL report quotes USA-based critics as saying that leadership development ‘… has been misdirected and fails to address the enormous changes that organizations face’, (Kellerman 2012) while ‘… leadership development activities are plagued by idealistic models that bear little relationship to the reality of the day-to-day role of leaders’ (Pfeffer, 2015) with leadership development requiring a ‘…fundamental reappraisal.’

Challenges for consulting companies like us

So how do we develop our leaders, in ways that meet the needs now and into the future. Consulting on this question is a challenge for partners like Executive Central, as much as for our clients. After all, we are part of that complex system mentioned above, and everything changes for us as well.

When we work with clients there is enthusiasm and agreement that new models are required to develop future leaders.  However at times, when we move into designing the solution we see some clients hanging on to well-trodden paths. The problem is that this is a little like Einstein’s description of doing the same thing over and over again and expecting different results. (He calls this insanity!)

I believe that in order to create real change you might need to take a risk with something new.  If your leadership programs are not getting the results you want, it makes sense to review them – and take a risk with something different. For example, the current environment requires adaptive, innovative leaders who understand and utilise ‘just in time’ training as opposed to the old model – ‘just in case’ training.

 A challenge for providers like Executive Central is to consult well. By this I mean that we need to challenge the client; be honest; add value through the consulting process; work with you to ensure you choose the most effective path for leadership development; and link that pathway clearly with your overall business strategy. Sometimes we have to say no, if we truly believe that a program will not work.

 HR needs to take a risk!

The Human Resources function is responsible for developing human capital, and yet traditionally HR adopts a compliance-focused role, busying itself with monitoring and preserving the status quo through IR, WHS, payroll and employee movement cycles through the company.

However in this new world order, HR has an important seat at the leadership table, taking on the more creative role of developing human capital, looking for ways to maximise the potential of management, leadership and culture in creating results.

"I don’t want my HR to manage risk; I want them to take risks". Laurence Coburn CEO.

As Elzinga (2016) comments, it’s not that those compliance tasks are not important: we all want to get paid on time, and do our work free of bullying and harassment. It’s just that the visionary role of HR is much more than that. It’s about strategising for future leadership development, for a future that’s uncertain. Now there’s a challenge!

The leadership industry is worth billions worldwide. People are spending a lot of money and yet getting varied results. At Executive Central we’ve been putting a lot of thought and time in developing future leadership interventions. We know that we need to challenge both ourselves and our clients to do things differently. We know that we need to focus on what works, and be brave enough to throw what doesn't. 

Are you working with leadership development, either as a provider, a recipient or part of an HR team? What's your experience with future leadership initiatives?

© Leonie Rothwell 2016

Leonie Rothwell

I am Director, Client Advisory, at Executive Central. We provide innovative executive coaching and leadership development solutions across public and private sectors. As a consultant, I have a strong passion for providing the link between the “capability build” piece and business strategy and genuinely partnering with clients in that process to produce results. 

You are welcome to connect with me on LinkedIn or email me.