Do you need a compelling case to invest in leadership development? Look no further….

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We always strive to demonstrate the commercial benefits to our clients when they are investing in leadership development and we recently came across a research paper the CMI, in partnership with Penna and Henley Business School, had conducted on the very same subject.     

The research included surveys of 4,496 people including 302 CEO’s and 550 HR Managers.  And information was gathered through focus groups, one to one interviews, literature reviews and case study interviews.    

So what were the headlines of this research?

When leaders were asked to rate their own bosses on their effectiveness, nearly half were perceived to be ineffective:

: )       21% Highly Effective    

: |       36% Effective         

: (       43%  Ineffective  or highly  ineffective     

This ineffectiveness has a negative impact on our economy, through poor performance and productivity (the UK lags behind the G7 in productivity) as well as the cost of the emotional well being of our employees, increased stress, absence, presenteeism and turnover.

So it’s a no brainer that investment in developing effective leaders makes financial sense and here’s some stats to back it up:

Organisations who invest in leadership development (on average £1,738) experience a 23% increase in organisational performance and 32% increase in individual performance.

Engagement increases too – Organisations with a highly effective leadership environment will have nearly three times the number of employees who are highly engaged, than those with a low level of leadership effectiveness and even those with a moderately effectively leadership environment will have twice as many people highly engaged than those with a low level of leadership effectiveness.

The research also found that in addition to the commercial benefits of investing in leadership development, the top five reasons HRD’s or CEO’s invest in leadership development are to:

  1. Achieve organisational objectives
  2. Lead change effectively
  3. Improve performance
  4. Increase competitive advantage
  5. Support business growth

And the top 4 competencies developed by professional leadership qualifications are:

  1. Team Development
  2. Strategic Awareness
  3. Supporting the development of others
  4. Continuous Improvement 

And finally, 

  • High performing organisations have CEO and Board level commitment to Leadership Development
  • Effective leaders achieve high employee engagement
  • High performing companies invest more in Leadership development and reap the benefits
  • Leadership development has a bigger impact when aligned with the business and people strategy
  • High performing companies evaluate leadership development to a great degree
  • Accredited learning and qualifications are rated as the most effective by individual leaders

So what are you waiting for?    We can help you develop your compelling case and design a leaderhsip solution to meet your needs.    To  see how we can work together to improve your productivity and engagement  contact or in partnership with