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  • We create customized leadership solutions for a wide range of Global 1000 companies. We work with our clients to accelerate the development of leadership as a source of value and competitive advantage. We are highly effective and dynamic, working collaboratively with clients based on their strategy, culture, and values. We develop leadership capability driven by the top executives’ strategy and change agenda. Our deep expertise creates impactful, connected solutions that blend a range of best-in-class learning methodologies including leadership and employee engagement programs, action learning, coaching, e-learning, and online applications. We enable leaders to develop the competence, confidence, and commitment required to ensure the successful execution of their company’s strategic agenda, achieve great results through people, and deliver real impact on performance Oliver Wyman values its clients and respects their confidentiality. Any clients referenced are done so with explicit permission. www.oliverwyman.com/LD

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June 2010 - Posts

Leaders need to learn together and focus on real issues

 

Over the last three decades, the resources and energy devoted to leadership development in corporations has skyrocketed. You would be hard pressed to find a major corporation that has not invested millions in leadership initiatives for its executives and managers. But has the investment in these efforts paid off, however the return is measured? Perhaps more importantly, for a CEO evaluating the various levers to improve organisational performance, would we select leadership development versus the alternatives?


My colleague Trina Soske recently wrote about this subject on the Harvard Business Review website (

http://blogs.hbr.org/imagining-the-future-of-leadership/2010/06/time-to-shift-the-paradigm-of.html). Writing in partnership with Jay Conger, Chair of Leadership Studies at Claremont McKenna College, Trina contends that the return on investment in leadership development has fallen short of its potential.  

Trina makes a strong case for a shift from a focus on developing individual leaders towards a more collective style of leadership development – after all, the exercise of leadership in organisations is not an individual act. Nobody leads in a vacuum and development programs need to take this into account. The complexity, interconnectedness and transparency of today's organisations mean that no one individual can get much accomplished by themselves. Most challenges and opportunities are systemic. Leadership is distributed and change now requires a collective sense and a coordinated set of actions.

Tough times ahead could lead to transformation
This week, David Cameron warned of tough times ahead as the government plans to cut public sector pay, pensions and state benefits.

In business, as in politics, people are more likely to accept tough decisions if they understand the reasons behind them, the impact they’ll have, and the benefits they’ll bring.

Cameron doesn’t have to explain too much about the reasons for the planned cuts. Everyone in the UK has felt the impact of the recession in some way, and we’re looking at a £156bn budget deficit.

What people everywhere do want is for our leaders to be more accountable, and for their strategy and plans to be transparent. Cameron has promised “an unprecedented level of public and business consultation” and chancellor George Osborne is also considering creating a “star chamber” of officials and senior ministers to grill cabinet members on their proposed spending plans. These plans have the potential to help rebuild public trust in politicians. If the government takes a genuinely open and honest approach to what could be a painful process, people are more likely to be understanding. Cameron said, “As we deal with the debt crisis, we must take the whole country with us.” Pledging openness and accountability is a good first step.

Many business leaders have already faced the type of tough challenge that now confronts the government. They’ve had to make loyal employees redundant, cut budgets and close down failing companies. Leaders who explain the rationale behind tough decisions and engage employees in the process maintain trust and loyalty, and safeguard the reputation of their businesses. Those who don’t leave others feeling bitter and disappointed.  In my next post, I’ll look at how leaders can successfully engage others in the decision-making process.

Although it is difficult to see a brighter future during bleak times, tough decisions can lead to dramatic and positive change. “Anyone who thinks the spending review is just about saving money is missing the point,” said a Treasury official. “This is a once-in-a-generation opportunity to transform the way that government works.”

Whether Cameron and the government are successful in engaging the public with the process of cutting public sector budgets remains to be seen. If they are, genuine transformation is a real possibility.