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Whether you’re starting from scratch or inheriting a company’s leadership development program, figuring out what type of program to offer and how to get the best return on investment can be daunting. There are lots of ways to “do” development. Each has an upside and sometimes a downside. Knowing what will fit for your company is important.
Many companies have adopted a model for leadership development called the 70-20-10 rule, with 70% of efforts working towards on-the-job development, 20% in coaching and mentoring, and 10% on training. The 70% in on-the-job development with this commonly-used model is a reminder that most learning and development results from on-the-job work experiences. You need not be wedded to this model as the ideal, and may, instead, decide to adopt a 40-40-20 rule, or a 40-10-50 rule between these three focus areas.
Classroom training continues to be the primary method companies use to build leadership and management skills. Why? Traditionally, this has been viewed as the easiest and fastest way to develop skills. (i.e. schedule a class on a given topic and invite participants—end of story.) But most importantly, the face-to-face nature of training allows participants to learn and practice skills and explore with their peers how and when to apply the skills.
Leadership or executive coaching has become a more recent alternative to classroom training as a way to develop leaders and managers one at a time. We find that most coaching is still reserved for the top 2 or 3 tiers in a company and has yet to transcend the manager level.
Here are important questions to answer that will help you decide what to do:
We find that companies inadvertently embark on mentoring, internal coaching programs, and leadership stretch assignments or projects without the necessary infrastructure and discipline to succeed. Just because a company doesn’t spend hard cold cash on programs doesn’t mean there isn’t a cost. Mentoring programs, for example, are often viewed as an inexpensive way to build capability. Yet, they frequently fail because the discipline, senior leadership commitment, and infrastructure are not in place to sustain it. Not only can there be a financial cost to failure, but the credibility of the effort falls short and negatively impacts future leadership development initiatives.
Alternatively, many companies embark on executive coaching without a well-thought-out plan of who is being coached, why, and what are the expected returns. Coaches are often sent to leaders and stay way longer than necessary and lack the accountability for identifying goals and results desired. Many companies don’t understand what they are hiring in a coach or even how the coaching process is optimized. Many don’t hold the coach and leader accountable for measurable results. Often the coaching ends, or goes on “forever,” without any observable changes occurring.
Finally, without sponsorship by the company’s top leadership, programs tend to limp along. Often they are disconnected from the business strategies. You can have naïve leaders unaware of the value of development. Buy-in, and better yet, periodic involvement in these programs accelerates success.
Whatever the option, leadership development costs money, time and resources. It needs to be an investment that pays off and truly develops leaders and managers.
The series of matrices that follow, one on each of the three focus areas of the leadership development model, provides a number of options to consider in choosing leadership development methods to fit your company’s strategy and culture—and get results. There are pros and cons of each. The costs associated with each vary depending on scope and complexity.
If you would like additional information on these options, or a discussion about choices, please give us a call.
|
What |
Pro |
Con |
Costs & Comments |
|
External coach |
Customized and tailored development plan Behavioral and leadership Learning; accelerated and real time Allows focus on business results and leadership skills Objective outsider Coaches generally have experience in multiple industries and leadership styles Retention value when positioned properly
|
More expensive than corporate training Be careful what you pay for, lots of “coaches” Companies don’t really know what they want from development or from a coach Sometimes harder to measure tangible results |
Generally for C level, VP & Director level $15,000-$35,000/pp for 6 months |
|
Internal mentor |
Excellent way to transfer knowledge Great opportunity for senior leaders to engage, teach, model leadership and company values Less expensive option Builds x-functional relationships Strong retention value when positioned properly |
Requires internal structure, and training to administer Senior leaders and commitment of time Companies woefully underestimate their own time requirements & commitments Quality varies Done poorly, can backfire
|
Don’t fall prey to the internal costs – there are costs in time and energy Among equals, pick one area to test and focus Cost to set up program depends on scope |
|
Peer to peer advising/coaching |
Same upside as mentoring above Allows x-functional points of view to be discussed May be good in a workshop format |
You must create an infrastructure to administer Hard to manage peer’s changing time & commitment Underestimate of time commitment |
Hard to administer without commitment Cost to set up a program depends on scope |
|
What |
Pro |
Con |
Costs & Comments |
|
Job Rotations
|
Great opportunity to learn roles across the company Great way to prepare hi-potentials for next level position Provides for “walking in my shoes” for shorter periods of time Excellent way to allow a leader to immerse in a role |
Must manage this properly and with an infrastructure that can support it Requires a high level manager/leader maturity for success Can be dicey for direct reports Follow up and evaluation critical |
High risk, high reward Don’t underestimate internal costs of program design and administration |
|
Conferences & Workshops
|
Easy way to allow a leader to learn beyond the company, especially younger leaders Networking with other companies and similar roles Opportunities to speak Learn about trends |
Must create accountability for sharing knowledge for a good ROI Lack of follow through is typical Be judicious about who to send to which conferences and set expectations for participation |
Easy wins with right application Good for high potentials, especially when local Easy to administer Create a policy and guidelines
|
|
High-Potential Program
|
Builds bench strength for longer term growth Supports succession planning Allows networking among other high-potential participants Can pair younger leaders with more seasoned leaders as part of program |
Need to ensure company leadership team supports it and is willing to participate and invest Start small and experiment to a larger audience Ensure a clear program owner and clarify roles and responsibilities |
Ensure program credibility and attention Create roadmap Must be highly interactive and have a variety of program components Must be seen as valued Metrics lie in readiness for more senior level positions |
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Leader Wisdom Sessions or Business Wisdom
|
Business based topic that supports company strategy, usually 90 min to 2 hours about a specific topic of expertise or knowledge Can reach a wider audience of leaders Great way to connect senior leaders with others Opportunity to stretch leaders through presenting topics of choice Based in the business |
Requires internal structure to administer Senior leaders and commitment of time Companies woefully underestimate their own time requirements & commitments
|
Don’t fall prey to the internal costs – less intensive that other development regarding time and money Partner with business leaders to help them be successful There are many formats these sessions can be delivered |
|
Stretch Projects
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Great opportunity for and individual or a team to take on a key initiative for the Company. Usually linked to high potential programs Great learning experience while making a significant contribution to the company and gaining visibility of Senior Leaders Pushes leaders to build stronger team skills and meeting discipline |
Requires internal structure to administer which is why it’s usually connected to a Hi-Potential program Requires a senior leader(s) to sponsor the project and commit time adequately Requires some accountability and follow through |
Requires a good solid program structure of identifying an action learning project, facilitation of early team creation and metrics and accountability for results Key issue is sponsor(s) time and commitment |
|
Networking
|
Good way for managers to meet each other Inexpensive alternative Good for new hires or newly promoted managers Buddy system can be a way to get to know peers Can do internal “conference-like” forums to bring leaders together |
Must be structured with outcomes to be successful as a learning modality Some will question the value Must have a long term program concept Conference forums have costs with time and money |
Many companies do day long “sessions” on technology, hackathons, innovation labs, etc Must be well advertised Quality is important for participation |
|
E-Learning (on-demand)
|
Timely and self-paced access to management topics Excellent for updates or tutorials (e.g. perf review reminders) Good for compliance training Excellent addition to classroom training Interactive display increases retention Can put links to relevant forms or additional intranet information Once created, only minor updates needed Off-the-shelf modules available |
No debrief of materials with others Must use IT or outsourced firm to build content so there are initial costs Do not recommend for leadership skill building and practice as a replacement for live classroom training Lacks networking and learning from others Is an excellent method for refreshers, reminders and follow on post classroom training
|
A good addition for some topics Off-the-shelf content is good for compliance Can purchase modules for any topic…balance learning content with the need to build relationships Make sure online content is interactive and has opportunities to test knowledge |
|
What |
Pro |
Con |
Costs & Comments |
|
Instructor-Led learning Leadership training
|
Can be tailored to company culture, values, messages Most widely used for skill building and practice Managers can learn from each other A side benefit of creating management cohorts or communities Can involve senior leaders as speakers |
Internal resources often strapped for time and expertise Outsourcing training can get expensive depending on quantity of leaders Company must look at development as an investment – long term Cost to build customized content Off the shelf programs require a train-the-trainer or licensing/ongoing fees Many off-the-shelf programs require 1-2 days versus customizing content in shorter modules |
Management training is essential for growth and development Augment with other delivery methods Must be willing to invest in people and leadership development Benefit to partner with an external firm whose expertise provides current trends and development practices |
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Academic courses/classes
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Excellent for executive level Can send each executive to a specialized institute Quick immersion in relevant topics (1-2 weeks) – boot camps Many universities now offering long term leadership development programs to the public Builds external leadership network Latest research often included Easy to administer Can often participate in a local university program Excellent for global companies
|
Program costs expensive Must have guidelines and policies for who participates and expectations for teaching others Should have some transfer of knowledge or ROI for participation |
Executive programs typically run $10-25,000 pp Important to connect the right executive with the right program for commitment Must build in budgets |
|
Learning Communities
|
Excellent as a post training forum Great way to involve directors to VPs in leading small group Small groups allow for case study, practice, peer learning on a specific topic of interest Managers can self select which communities they are interested in joining Can be run as often as desired (e.g. monthly, quarterly) |
Must have an entire plan for implementation Requires facilitator’s guide for agenda topics and engagement Senior leader commitment Can backfire if led poorly Will require HR Business Partner involvement to ensure program credibility |
Easy to pilot and evaluate effectiveness without huge program costs Can start small and experiment Can be run internally through volunteers interested in the topics Small program costs but requires investment in time and resources to be successful at the start |
