Why Every Company Needs a Leadership Strategy
Recently I was meeting with a client’s talent management experts and it quickly became clear that the company’s ability to meet its business goals was at risk. Why? A few things stood out. First, as the conversation progressed, it became apparent that each talent management expert was operating in a silo rather than as part of a cohesive unit. When asked about the business priorities for the organization, there was no agreement; when I asked about their talent management priorities over the next three to six months there were no clear goals, no connections, or any progress measures in place.
Shortly after this meeting I was in a conversation with a CHRO from another company. This organization had been presented with an “opportunity” when a government in this company’s most important market announced a change in its currency regulations. Almost overnight, this company entered a new business: banking. How would they pull this off?
Almost all organizations have a defined business strategy; many also have a cultural strategy. The examples above led me to think about every organization’s need for a leadership strategy.
Today’s business environment requires that leaders at all levels perform efficiently and effectively, regardless of what’s going on around them. How do companies build the required leadership capability and capacity, and the appropriate supporting mechanisms? By implementing a leadership strategy that underpins the organization’s business goals and culture.
DDI’s Global Leadership Forecast includes multiple data points that illustrate the benefits of directly linking an organization’s leadership strategy to its business strategy. When leaders at all levels are carefully selected, well trained, well supported, and properly aligned the organization thrives.
Imagine you are standing on a river bank next to your organization’s business needs and cultural priorities. On the opposing river bank are your organization’s performance measures and business outcomes. You need to move everything over to the other river bank as quickly and safely as possible. A well-defined and well-executed leadership strategy is the bridge. What do you need to build the bridge and what support will it need?
Even though you can see the other river bank from where you are standing, the destination cannot be vague. It’s not enough to declare ”we just need to get to the other side.” Determining the intended destination requires a real focus on the most critical leadership priorities, i.e., the challenges leaders must confront to execute the plan. We call these challenges business drivers, they translate the business and cultural priorities into leadership priorities. These drivers are then aligned to the leadership model (i.e. the Success ProfileSM that defines the knowledge, experiences, competencies, and personal attributes that are essential for leadership success).
Business drivers help determine the size of the gap between the two river banks by looking at leadership through two lenses, the current needs and future requirements. The gap analysis means you can forecast the rate at which the organization needs to promote or hire leaders, and identify the individuals who are, or who soon will be, ready to step up as the business moves forward.
