Smeal Op-Ed: Don't Overlook Leadership Development
In tough times, the argument goes, leadership development is the first thing companies cut. That may be true for some organizations, but not for those that are forward-looking. From the worst of times comes the best of times, and organizations with hopes of capitalizing on the coming economic upturn are using well-designed, focused leadership development to strengthen their leadership ranks and position themselves for the future.
By Albert A. Vicere
In tough times, the argument goes, leadership development is the first thing companies cut. That may be true for some organizations, but not for those that are forward-looking. From the worst of times comes the best of times, and organizations with hopes of capitalizing on the coming economic upturn are using well-designed, focused leadership development to strengthen their leadership ranks and position themselves for the future.
Three top organizations - 3M, Cisco System and First Data Corporation - are examples of companies that are using leadership development as a cornerstone to achieve and maintain positions of prominence and profitability in their respective industries. For these companies and their chief executive officers, leadership development is far from expendable. It is a process to help get results, shape culture and build leadership depth. Jim McNerney, CEO of 3M, may have summed up their position best: "Our goal is to make this generation of leaders the best ever at 3M."
McNerney and all great leaders know that if a company hopes to grow, it must build a cadre of capable, forward-thinking leaders. And there is no question that McNerney, as well as John Chambers at Cisco and Charlie Fote at First Data, are champions for the cause at their respective organizations, constantly reinforcing the notion that leadership and leadership development matters. Chambers is clear on the challenge: "We want Cisco to be the company of the century and we need great leaders to get us there."
To deliver on the challenge of building leadership depth, each of these leaders is striving to articulate in clear, simple terms what their business will look like in the future, how it will be different, what kind of leaders will be needed and how the organization will develop those leaders.
First Data's Fote has been working with his senior team to get definition around those critical issues. He says the reason is simple. "My job is to help make sure we have to have the right people with the right focus and the right skills, people who can keep this company out front."
If the progress and performance of First Data as well as Cisco and 3M is any indicator, it seems that senior leaders who have a clear commitment to accelerating the development of leaders and who are willing to actively champion the cause can have a huge impact in a relatively short time.
At all three companies, the engine for driving this positive impact is a thriving process for identifying and developing top talent. These are not old fashioned, passive, classroom-based courses - rather they are sleek, intense, hands-on processes for engaging leaders in the definition and execution of business directions.
Cisco has built a set of leadership development initiatives around a simple but compelling framework called "G3" - grow your business, grow your organization, grow yourself. These initiatives are helping Cisco leaders develop the new skills and mindsets that will keep Cisco at the top of its industry.
3M uses its five strategic initiatives for driving growth and performance as well as its five leadership attributes that define leadership success as the foundation for its series of interactive, hands-on leadership development programs. The programs are helping leaders to understand and execute on these critical drivers and thereby facilitating significant and positive culture change across the venerated company.
The lessons from these examples are that high-impact leadership development starts with a commitment at the top. They are tightly linked to the company's strategic agenda. They are viewed as a lever for communicating strategy, focusing behaviors and driving change. They provide next generation leaders with an opportunity to learn, practice, develop, and grow. And if done well, they drive business results.
(Albert A. Vicere is a professor of strategic leadership at Penn State University's Smeal College of Business and president of Vicere Associates, Inc., a consulting firm whose clients span the globe.)
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