The 5 W’s of Leadership Development

A number of organizations across Canada and the U.S. are not putting leadership development programs at the top of their priority list. HR professionals John Ginn, Stacey Hummel, and Lauren Lostracco argue elevating your leadership development strategy is essential for future success. They highlight statistics that reveal the gravity of the leadership shortage crisis:

• 10,000 Baby Boomers are retiring every day.
• In 2019, 77% of companies reported experiencing leadership gaps.
• 63% of Millennials believe their leadership skills are not being fully developed.
• Only 5% of organizations have integrated leadership development into their overall strategy.

These figures show the dire need for organizations to address leadership development.

5 W’s of leadership development programs

A simplified approach is the best means to start conversations about leadership development with HR clients. The 5 W's—Who, What, When, Where, Why—are commonly used in journalism and research, and serve as a formula for understanding a subject comprehensively. By applying this framework to leadership development, organizations can facilitate constructive dialogue among HR leaders and other executives, and provide clarity on the significance and impact of these programs.

What is leadership development, and what is the purpose of leadership development programs?

Leadership development includes structured programs that equip current and future leaders with the skills needed to meet present and future business challenges. Effective leadership development fosters individual growth and also plays a significant role in shaping the overall culture and strategy of an organization.

The primary aim of leadership development programs is to cultivate leadership competencies and establish a robust leadership pipeline. Nurturing capable leaders at every level of the organization is essential for sustained growth and success. With a clear developmental path, organizations can avert potential disruptions in leadership and ensure continued progress.

H2: Why is leadership development critical to organizations, and why should they invest in these programs?

The rationale for investing in leadership development is compelling. Here is a list of benefits of leadership development programs:

• Reduced turnover: Good leaders significantly reduce turnover rates, as employees often leave due to poor management.
• Higher retention: Investing in leadership development can help retain talent and hence, mitigate recruitment costs. These programs also enhance employee retention rates. When employees see pathways for career advancement, they are less likely to seek opportunities elsewhere.
• Better engagement: Research from Gallup reveals that managers can account for up to 70% of the variance in employee engagement scores. By investing in leadership development, organizations can stabilize and improve engagement, leading to increased profitability and customer loyalty.
• Continuous personal growth: This is essential for both employees and leaders to prevent stagnation within the organization.
• Contribution to continuity: Leadership programs can help with succession planning and aligning leadership strategy with overall business goals.
• Attracting new talent: A significant number of employees, especially Millennials and Gen Z, are interested in growth opportunities when assessing potential employers. Having a strong leadership development program can set your organization apart and make it more appealing to prospective talent.
• Helps include Diversity, Equity, and Inclusion (DEI) objectives: This could involve ensuring that participants represent diverse backgrounds, offering a range of learning experiences such as in-depth training on unconscious bias, promoting psychological safety, and integrating components like mentorship and sponsorship initiatives.

When are the 5 best times for leadership development in an organization?

There is a common misconception that leadership development programs are only for those already in leadership positions. While that is indeed one aspect, there are typically five key moments when LDPs can be most beneficial:

1. During major career transitions: Career transitions present an excellent opportunity to evaluate existing skills and prepare for future success. The initial months to a year in a new position offer valuable chances to gain experience, whether someone is new to the organization, joining a different team or function, or taking on new responsibilities.
2. In times of significant organizational change: New contexts require fresh perspectives and different actions, which necessitate leaders to adopt new approaches. Leaders need to adapt to changes within the organization and also guide others through these transitions. They must develop new mindsets and acquire different behaviours, skills, and competencies to navigate challenges such as changing business priorities or increased competition.
3. To prepare high-potential employees for advancement: When individuals excel and are in line for promotional opportunities, it’s crucial to identify what they need to learn for their next role and for long-term success. This is an ideal moment for leadership development to boost engagement and retain top talent.
4. When employees exhibit signs of derailment: With dedicated support and strategic effort, focusing on leadership development can help redirect an otherwise promising career that may be veering off course.
5. To engage and retain valuable employees: Providing access to leadership programs empowers employees and signals investment in their professional growth. It serves as an effective way to recognize, engage, and retain top performers within the organization.

Who should participate in leadership development programs?

While some participants are clear choices, there are several other groups that may be overlooked.

• Executives and senior leaders: These individuals need to enhance their ability to inspire and influence, effect cultural change, and guide employees towards their goals. They may require structured executive development training.
• Mid-level managers: This group benefits from training in strategic thinking, coaching employees, conflict resolution, and team leadership.
• Recently promoted employees: These employees require guidance in establishing their leadership identity and preparing for success in their new roles.
• Employees taking on new leadership roles: This includes those who have expanded their teams due to organizational changes like mergers or restructurings.
• Leaders facing new challenges: Those who are navigating business changes or new technologies need additional learning opportunities to effectively lead through transitions.
• Aspiring managers and high-potential employees: These are employees who show promise and enthusiasm, actively seek growth opportunities, and demonstrate emotional intelligence. Retaining high-potential employees is crucial, as research indicates that losing one can cost a company up to 3.5 times their annual salary.
• Young professionals or those early in their careers: Although this group is often not the first to be considered, it is important to include them. Providing opportunities to learn about the organization helps them connect with its culture and mission and lays the foundation for their future leadership development.

Where should you focus when creating a leadership development program?

Here are four areas worth focusing on when creating a leadership development program:

1. It is crucial for organizations to outline their leadership strategy. This strategy should define your objectives, ensure alignment with overarching organizational goals, and detail how it will enhance the organization.
2. To formulate this strategy, it is essential that organizational priorities and objectives are clearly defined.
3. Creating a leadership development program is challenging without a clear understanding of what leadership competencies are necessary for your organization. This is essential since many lists of "leadership competencies" are available, but not all will fit every organization or the outcomes you aim to achieve.
4. Finally, organizations should evaluate the competencies they currently have in place and identify any gaps. This process involves taking stock or auditing existing competencies against the standards you have established for the organization.

Measure twice, cut once

One of the main challenges in measurement is that it often gets overlooked until later stages. Without establishing key metrics and measures from the beginning, it can be difficult to gather the necessary data retrospectively. Therefore, it is essential to prioritize measurement early in the process. To start planning your evaluation strategy, consider the following questions:

• How will this leadership program benefit the organization, and does it align with the needs of my stakeholders?
• What would success look like in one year? What about three years from now?
• Which data will be most valuable to my stakeholders?
• What methods do I have available for collecting data?
• Who will be responsible for monitoring progress and assessing outcomes?

There are a number of different measurement models that can be used to measure all of these areas, and it may be helpful to use performance measurement software.

Leadership development program challenges

A major reason for failure in leadership development initiatives is the lack of planning and measurement. Every organization has unique needs and goals, making a “one-size-fits-all” approach ineffective. While such programs may address some critical areas, they often leave significant gaps in essential leadership competencies. Challenges like weak communication strategies, misalignment with organizational goals, insufficient support, and ineffective resource allocation can all impede implementation. Additionally, it's essential to differentiate between training and development to ensure the program meets the organization's specific needs.

Organizations may offer extensive training to aspiring leaders, but the question remains: is it fostering their development? Consider the 70-20-10 model when designing your leadership programs.

• 70% of learning occurs through hands-on experiences, special projects, or assignments outside of an employee’s usual responsibilities.
• 20% of learning happens socially through interactions with colleagues, especially through mentoring opportunities that can be formal or informal.
• 10% of learning comes from formal training experiences. This statistic often surprises people, but it is encouraging news in that it shows organizations don't need to invest heavily in expensive training courses.

Dive deeper into leadership development programs by watching our 5 Ws of Leadership Development webinar.

This guide is intended to be used as a starting point in analyzing the five W’s of leadership development and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.