The Business Case for Leadership Development
There's a compelling connection between effective leadership and strong business performance.
Studies show that organizations with leaders who are highly developed tend to outperform their competitors in metrics like revenue, market share, profitability, and product quality.
Simply put, investing in leadership development isn't just a "feel good" initiative – it's a strategic imperative in your organization's future success.
Why "Transformation" Matters
Some argue that leadership coaching rarely leads to true transformation. However, this view overlooks the potential of both vertical and horizontal development. Vertical development, as described by Kegan and Lahey's Action Logic framework, increases cognitive complexity and allows leaders to handle increasingly intricate situations.
Horizontal development focuses on acquiring specific skills relevant to a particular role. Transformation occurs when these two types of development work together. A leader with a high level of vertical development can leverage their skills and knowledge (horizontal development) to achieve truly groundbreaking results.
The Urgency of Development in a VUCA World
Today's business environment is characterized by volatility, uncertainty, complexity, and ambiguity (VUCA). Leaders who operate with a limited action logic (less complex thinking patterns) will struggle to navigate these challenges. However, by fostering leadership development, organizations can equip their leaders with the necessary tools to solve complex problems, seize new opportunities, and outperform competitors.
The Power of More Advanced Action Logics
Leaders with higher action logics possess several key advantages:
Effective Team Leadership: They can navigate diverse viewpoints, fostering collaboration and leading to better decision-making.
Strategic Foresight: Their ability to see the bigger picture allows them to anticipate future trends and make strategic decisions that position the organization for success.
Innovation and Adaptability: They can embrace change, identify new opportunities, and drive innovation within the organization.
Understanding Action Logic
Action logic, a concept from Kegan and Lahey's work, represents the underlying mental framework that shapes how leaders interpret situations, make decisions, and take action. It's influenced by both vertical development (cognitive complexity) and horizontal development (specific skills). By understanding action logic, we can gain valuable insights into leadership behaviors and create viable interventions that promote more effective leadership development.
The Adult Development Measurement Tools
There are various tools available to assess leadership development. The Adult Development Leadership Scale (ADLS) by Kegan and Lahey focuses on how leaders make sense of the world and their place within it. Stages like "Redefining" and "Transforming" highlight the importance of self-awareness, adaptability, and the ability to build strong teams – all crucial aspects of effective leadership.
The Bottom Line
The most impactful systemic team coaching, and executive coaching includes a robust focus on vertical and horizontal development.
Investing in leadership development is an investment in your organization's future. By fostering the growth of your leaders, you equip them with the tools and mindsets necessary to navigate the complexities of today's business world and achieve sustainable success.
Further reading and references:
“Seven Transformations of Leadership,” Harvard Business Review, Rooke, D. and Torbert W. (April, 2005)
“The Leadership Circle Profile: Advanced Leadership Assessment Technology,” Emerald Journal of Industrial and Commercial Training, Volume 38 No4, 2006
Kegan, R. and Laskow Lahey (2009), Immunity to Change, Harvard Business Review Press
Collins, J. (2001) Good to Great: Why Some Companies Make the leap…and Others Don’t, HarperCollins, New York, USA.
Senge, P.M. (1990) The Fifth Discipline: The Art and Practice of the Learning Organization, Doubleday, New York, USA.
Torbert, W. (2004) Action Inquiry: The Secret of Timely and Transforming Leadership, Berrett-Koehler, San Francisco, USA.
Reactive to Creative Leadership by Bob Anderson & Bill Adams – Leadership Circle Profile- White Paper
The Leadership Circle and Organizational Performance – Leadership Circle Profile- White Paper
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