A shortage of leaders is costing businesses billions each year.
According to a recent Gallup poll, only 10 percent of workers have the five traits (motivational, assertive, accountable, trustworthy and objective) found in great managers.
The good news? Not all great leaders are born. The bad news? The way many businesses attempt to cultivate leaders from internal talent is flawed.
Often, star performers are promoted with the assumption they’ll learn leadership on the job. In reality, though, untrained managers create tremendous churn on the teams they lead, harming productivity, morale and, ultimately, the company’s bottom line.
Hiring managers don’t make an external hire unless the candidate has the necessary experience. What makes an internal candidate different? After all, the best predictor of future performance is past performance.
Businesses can build a more efficient and profitable workplace by developing leaders within your organization in the following three ways:
1. Enroll potentials in leadership school
Ask employees showing the potential to advance within your organization to join an internal program that teaches the tactics of great leadership.
Be sure to teach different leadership styles. Steve Jobs led much differently from from Arianna Huffington, for example, but each oversaw two of the most successful businesses of the 21st century. Introducing employees to leadership styles that match their personality will help them become more effective managers.
As employees in the program experiment with what they learn, they can report back to their peers and receive group feedback about how they can improve. This method also helps others see what has made their peers successful.
2. Create a feedback loop
No one likes to hear they’re doing something wrong, but without criticism, it’s impossible to improve.
As a star performer piles up accolades, his or her boss may suggest that they take on a new, more advanced role. Without critical feedback of their performance, however, the star performer won’t live up to their full potential.
The star performer’s advocate has a vested interest in their appearing competent, comfortable and successful in her new role. As such, the advocate may not provide the necessary negative feedback.
Instead, appoint an independent sponsor who can provide objective criticism. The sponsor should have experience in the role the star performer has assumed or other proven success as a leader.
Because sponsors don’t need to validate the promotion, they can more easily provide honest feedback about performance.
3. Establish an apprenticeship program
Before an employee moves into a new role full-time, give them opportunities to gain experience through individual projects and initiatives.
I spent the last five and a half years of my nearly 12 years at PricewaterhouseCoopers as the U.S. talent acquisition leader. Before I took that position, I entered an apprenticeship program of sorts that allowed me to develop the skills I would need at the next level.
I worked with the incumbent U.S. talent acquisition leader, who had announced he would leave. As the heir apparent and second in command, I took classes, shadowed him on his day-to-day duties and gradually took over pieces of his job. As I learned, he coached me to be better.
The apprenticeship had the additional benefit of allowing me to see weaknesses that I addressed when I took over full-time. By the end of the one-year apprenticeship, I felt completely confident stepping into the role full-time.
While some people have natural leadership skills, the rest of us regular Joes need time to learn, listen, watch and do. An organization needs leaders throughout the office and can’t rely on the 10 percent who already have those skills.
The businesses that facilitate leadership development and create strong leaders will see positive impacts in morale, productivity and even bottom line results. The three tactics above will help you reap those benefits.
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