Having a strong financial pipeline is what every company wants to attain, correct? Well, to do so you must have a strong leadership pipeline. They are directly correlated, according to John Bersin in an article for Harvard Business Review. He addresses five elements of tackling this successfully from a study he conducted involving over 2,000 companies.
Enabling Leadership Reliably
The first element is culture. Every member of the team must feel the freedom to lead and perform in the level of their comfort zone while complementing others’ strengths to work as a unit. Matrix management and risk taking are the next element. According to Bersin, “both attributes are highly predictive of long-term revenue per employee and gross profit margin.” You must be able to venture outside your normal restricted borders. Doing so will lead to growth across the board.
The third element is learning through exposure. Leaders are developed when they interact with and build relationships with colleagues, experts in their field, customers, and through work in new contexts. Let them soak in each other’s knowledge and experiences. Speaking of which, knowledge sharing is the next element. It is important to have open and free communication among the team. No one must feel afraid to address issues and speak their mind, so that problems are addressed promptly and accordingly. Review of finished work is an important aspect of knowledge sharing as well.
Bersin shares this this about the final element:
… while these companies do have leadership “programs,” they are embedded in the business, and HR does not operate alone. One major pharmaceutical provider embeds senior HR leaders in each unit to make sure leadership discussions, programs, and ongoing assignments are relevant to the business — yet also coordinated with other efforts throughout the company. And these HR partners are rotated into and out of the business units, so they all have line leadership experience.
The companies that Bersin analyzed and that incorporated these five elements brought in 37% more revenue per employee. As well, they are four times more likely to be efficient (measured through profitability). Lastly, they are three times more likely to be market leaders and innovative by nature than the low-performers that were studied. Not bad at all.
You can view the original article here: https://hbr.org/2016/10/the-5-elements-of-a-strong-leadership-pipeline