Have you ever thought about the most impactful experience you've had as a leader? Was it one that profoundly impacted you or one that profoundly impacted others? Whichever may be the case, as leaders, we cannot lose sight of the impact we have on organizations, organizational culture, our colleagues, and especially those we lead. Our ability to guide and coach to success is a skill that cannot be underestimated. But let's not forget leaders need coaching, too.
According to the 2023 Global Leadership Forecast from DDI, leaders who get quality coaching from their managers are:
4.3X more likely to feel they have a clear development path as a leader.
2.7X more likely to feel accountable for being an effective leader.
1.5X less likely to feel they must change companies to advance.
The research conducted by DDI is consistent with previous findings, which is not surprising. Even before the pandemic, research by Smart CEO found that:
Less-than-optimal leadership practices cost the typical organization an amount equal to as much as 7% of their total annual sales.
At least 9% and possibly as much as 32% of an organization’s voluntary turnover can be avoided through better leadership skills.
Better leadership can generate a 3 - 4% improvement in customer satisfaction scores and a corresponding 1.5% increase in revenue growth.
And consider the statistics from Vital Learning below:
Source: Vital Learning
Even more shocking is the cost of losing an employee due to bad leadership (up to 2x that employee's salary, according to DDI). And leadership turnover is even more expensive,
What do these data points tell us?
Providing support and development to our leaders isn’t just a bottom-line cost; it's an essential component to reaching organizational goals,
which usually includes growing market share and enterprise value. Imagine the ripple effect of a leadership culture that promoted skill development in multiple areas, including providing coaching and effective feedback.
Is leadership development something worth investing in? Absolutely.
At Butler Street, we believe training and professional development are an investment, and it’s a vital component of any organization’s growth strategy, not a cost.
Impactful leadership should include:
The Four Bs: Understanding where your employees and leaders are when it comes to being part of an organization, these elements will prove immensely helpful in navigating a new employee onboarding situation to a seasoned employee looking for new challenges.
Giving and Receiving Feedback through DASH: The ability to give and receive feedback effectively and in a constructively helpful way and not destructively damaging is worth its weight in gold. Using the Describe, Acknowledge, Specify, and Help method, your leaders will be better equipped to face any challenging situation with employees or peers.
High-Performance Teams: Understanding the habits of high-performance teams (and by extension, their leaders) and how those translate into specific leadership actions that drive exceptional performance and promote a growth and learning environment.
As we enter the second quarter of the fiscal year and you are assessing where to make budgetary adjustments in order to meet 2023 objectives, ensure you’re making the investment in your company’s future – invest in leaders by investing in the skills-based training needed for growth.