A 2004 study titled “Top Management Team Cohesion and Superior Industry Returns,” published in the journal Group and Organization Management, suggested that while leadership has a very weak direct association with performance, leaders do indirectly impact performance. In fact, leadership behavior accounts for roughly 14 percent of a team’s overall cohesion, according to the research. When you consider that cohesion accounts for roughly 28 percent of a team’s performance, more than a quarter of a team’s output results from cohesion.
This research supports what we already know — that leadership is important — but suggests that it’s important in an unexpected way. First off, some leaders matter more than others. Second, leaders matter not in how they can singularly get results, but rather in how effective they are at developing cohesion within their teams. This information has the potential to reshape how learning professionals approach three aspects of an LD program: the participants, the competencies and the sell to decision makers.
The above study concludes, “With a little creativity and research, learning executives can demonstrate the bottom-line impact of leadership development programs and align their departments more closely with the company’s greater business goals.”
Indeed, emphasizing the research “angle” is critical in positioning leadership development. Yet some decision makers still want to see hard data, the ROI (return on investment). In that case, ROInet has been a great resource for many practitioners since its inception in 1999. It was created for HR/HRD professionals interested in evaluating and measuring human capital investment, the effectiveness and ROI of learning and HR/HRD efforts and interventions, including Organization Development, technology-based learning, leadership development, and knowledge management.
We at Sonoma Leadership Systems believe that most people within organizations who are committed to developing leaders already have innate persuasive skills they use daily when convincing peers and superiors to accept and act upon their proposal or point of view. When it comes to “selling” leadership training and development within an organization in tough times, training professionals need to step out of their comfort zone to leverage their programs using a confident voice, preparation, practice and, yes, building a case through research or measuring the ROI.
A compelling vision, aligned with research facts, will go a long way toward convincing decision-makers to sustain a financial investment in leadership training and development. It is part of training and development professionals’ responsibility to those within the organization to keep it in the forefront as an investment with the highest return. And, that’s a rationale to which even the most cost-conscious organization can relate.
—Pat Schally, Editor
pat@sonomaleadership.com
Back to top
page 1 | page 2 | page 3