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Does Leadership Quality Matter?

DOES LEADERSHIP QUALITY MATTER? It's been said that every team takes their cues from its leader. What's true on the sports field is equally applicable in the boardroom, as the best companies invariably have strong leaders to set an example for employees. Below we look at how high quality leadership provides for better results, and what organizational roadblocks exist to halt development of stronger leadership. FACT: HIGH QUALITY LEADERSHIP LEADS TO BETTER BUSINESS QUALITY OF LEADERSHIP AFFECTS MANY ASPECTS OF BUSINESS SUCH AS: WORKFORCE RETENTION EMPLOYEE ENGAGEMENT ORGANIZATIONAL PERFORMANCE PASSION TO LEAD PERFORMANCE, CUSTOMER SATIS FACTION. SERVICE QUALITY, AND PRODUCTIVITY) Development Dimensions International (DDI) is a leader in talent management, helping hundreds of corporations around the world close the gap between where their business needs to go and the talent they must have to take them there. Of nearly 12,000 leaders polled in the 2011 DDI Global Leadership Forecast, there is a disparity between the top and bottom thirds of leadership quality in these same categories: LEADERSHIP DISPARITY Bottom 1/3 of Quality Leaders experiencing said benefit Top 1/3 of Quality Leaders experiencing said benefit 24% WORKFORCE RETENTION 70% 9% EMPLOYEE ENGAGEMENT 50% 13% ORGANIZATIONAL PERFORMANCE 52% 7% PASSION TO LEAD 53% Overall, there is a difference between each category ranging from 39 PERCENT to 46 PERCENT; a major difference to be sure. To further illustrate, DDI notes that 52% of companies with higher leadership qualities experience the following: 2.8X BETTER FINANCIAL PERFORMANCE 4.6X BETTER CUSTOMER SATISFACTION 4.7X MORE PRODUCTIVITY 52% 4.4X IMPROVED QUALITY OF SERVICE With that being said, why isn't everyone striving for the utmost quality leadership? What factors hinder most businesses from achieving high quality leadership across the board? STALLED LEADERSHIP Since 2006, worldwide leadership quality has not changed, despite an investment of $14B. Even worse, only 35 PERCENT of HR professionals 52% reported high marks of leadership, and only 1 IN 3 leaders feel they are getting value from the development they receive currently. One of the main factors that stalls the further development of quality leadership is that the majority of key decisions of an organization are still made solely by high ranking company officials. 61 PERCENT OF LEADERS BELIEVE THAT LITTLE OVER 54 PERCENT BELIEVE 61% LEEWAY IS GIVEN TO 54% THEIR ORGANIZATION IS TRUSTED LOWER LEVEL "SILOED, RIGID, AND ASSOCIATES IN THE HIERARCHICAL" DECISION MAKING PROCESS. LEADERSHIP BELIEFS 61% of leaders believe that strategic and key business decisions are made mostly by those in positions of 61% power, with very few opportunities open for discussion. 54% of leaders believe that their organizational structure is siloed, rigid, and hierarchical, J4% 44% of leaders believe that our management processes (e.g. strategic planning) are highly 44% bureaucratic and often a nuisance. 43% leaders believe that senior leaders are the 43% primary visionaries and creators 41% of leaders believe that we almost exclusively focus on top/bottom-line growth 4170 38% of leaders believe that power and influence 38% are held by those who value the status quo 37% of leaders believe that status and influence are based on a person's formal position and 37% accumulated power 32% of leaders believe that our company has a set of values and aspirations, but they hold little 32% meaning to most employees Thus, the need to move beyond exclusive top level decision making is a barrier many leaders have not even attempted to remove. 2011 At the same time, the 2011 DDI GLF shows that leadership skills of the past differ from that of the future. Both identifying and developing future talent, and fostering creativity and innovation are now two of the top five most critical leadership skills. MOST EFFECTIVE LEADERSHIP SKILLS A large percentage of all leaders polled rated themselves as ineffective in all 5 most critical skills. 100 80 60 A A A A. 40 20 43% 43% 50% 43% 40% Driving and Managing Change Developing Future Executing Organizational Strategy Identifying and Fostering Creativity and Innovation Coaching and Developing Others Talent HINDERED LEADERSHIP DEVELOPMENT Currently, a mere 1 IN 3 LEADERS are satisfied by their leadership development: OVERALL LEADERSHIP QUALITY IEXCELLENT IVERY GOOD IGOOD IFAIR IPOOR 7% 31% 39% 21% 73% On the positive side, 73 PERCENT of leaders feel their formal training has been either effective or very effective. Other avenues such as coaching from managers and web-based learning have proven to be effective tools. DEVELOPMENT METHOD SUCCESS Percent of Leaders Rating Method as Effective Percent of Organizations that use method often FORMAL TRAINING (WORKSHOPS, COURSES, SEMINARS) 73% 63% COACHING FROM MANAGERS 68% 66% SPECIAL PROJECTS 68% MOVEMENT TO A DIFFERENT POSITION TO DEVELOP TARGETED SKILLS 47% 44% WEB-BASED LEARNING 43% COACHING WITH OTHER INTERNAL COACHES 45% 39% 37% COACHING WITH EXTERNAL COACHES 27% VIRTUAL CLASSROOMS E-learning may be easier in today's age, but a combination of multiple leader training techniques are proving to be the most successful. There is no singular "one size fits all" technique to instill high quality leadership values. LEADERSHIP QUALITY IS INTEGRAL TO SUCCESSFUL RESULTS IN ANY ORGANIZATION. THE HIGHER QUALITY LEADERSHIP A COMPANY POSSESSES, THE MORE LIKELY THEY ARE TO ENGAGE, RETAIN, AND PERFORM OVERALL. UNIVERSITY OF SOURCES: DDI - OLOBAL LEADERSHP FORECAST 201 EXECUTIVE SUMMARY A NOTRE DAME |DOI - GLOBAL LEADERSHP FORECAST 2011 | DOWORLD ABOUT ME

Does Leadership Quality Matter?

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Does Leadership Quality Matter infographic depicts not only attributes of an effective leader but what matters to becoming a good leader. Presented by the University of Notre Dame.

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