The Importance of Leadership Development

Leadership development was once a luxury and is now mission-critical to the success of any business. Leaders are critical to executing the deliverables necessary for business success and growth. They are on the front line of the employee experience and are stewards of the organization’s culture.



Leadership development is the practice of equipping people with the capabilities, skills and competencies necessary to lead themselves, others and the business. Leadership development builds and enhances an individual's ability to guide, inspire and achieve results. It encompasses skills like strategic thinking, vision setting, communication, emotional intelligence, and the ability to foster teamwork, collaboration, and innovation. Leadership development provides skills to perform today and develops individuals to successfully take on future challenges, adapt to change, and work with and through others to achieve common goals. 

Leaders significantly impact the employee experience, with “my manager/leader” being cited as the most frequent reason employees leave a job. A common misstep is when an individual who is delivering results is promoted into a people leadership position without the skills necessary to shift from getting results as an individual to achieving success by leading others. Leadership development helps to close the skill gap and ensures business continuity. Leadership development is strategic and can be a differentiator in the market.

Additionally, leadership development prepares current leaders to take on new roles created in response to the business needs and to replace more senior roles. Developing internal employees creates a stronger talent pool for future leadership roles and reduces external hires by strengthening your existing talent pool and creating internal talent pipelines. It is advantageous to develop leaders from within because it motivates employees, and there is already a history of the person’s success within the organization’s culture.

Leadership development also plays a vital role in keeping up with an ever-evolving workplace by helping create nimble leaders who can adapt quickly to shifting business environments and new strategic goals. This is integral to reducing turnover rates. 

Leadership development is vital for any company and is a non-negotiable for those who are in high-growth mode. 

Leadership development is a key factor in addressing turnover, quiet quitting, absenteeism, productivity and ultimately, the bottom line. 

What is Leadership Development?

Leadership development refers to an array of learning experiences designed to equip current and aspiring business leaders with the necessary skills. Because leadership is a set of skills, it can be learned and developed. 

Leadership skills include those that are transferable across areas of the business and externally across industries. Giving feedback is an example of a skill that all leaders will use. 

Often, skills unique to a specific organization are also included in development efforts. Giving feedback in a way that furthers the organization’s culture and reinforces the internal performance management processes is an example of customizing a general skill. Synchronizing skill development with the business culture is a powerful means of creating consistency. 

There is a difference between management training and leadership development. Both are value-added. Typically, one person in a single role is expected to be a manager and a leader. The percentage of time someone spends in each function often varies as they continue on their career path. Separating manager training and leadership development aids in communicating unique but interrelated expectations.

Management training emphasizes equipping individuals with the skills and knowledge needed to run day-to-day operations efficiently within an organization. This includes skills like planning, organization, task delegation, performance monitoring, and adhering to protocols and procedures. Management training is often more about maintaining order and ensuring the smooth execution of operations.

Leadership development is broader, focusing on long-term vision and influence. Leaders are often expected to drive change and innovation.

One topic that is both about management and leadership is managing the performance of employees.

Managing employees has legal aspects that are critical to teach and reinforce. 

The skills needed for day-to-day interactions are more challenging to develop. For example, managing conflict is one of the most difficult skills to develop. Yet, it is usually one of the most important skills to include in leadership development. Two other highly difficult and important skills for leaders are leading innovation and managing ambiguity. 

Leadership development can be designed to scale for many leaders and be personalized to address each individual’s development needs and aspirations.

Leadership development can take many forms and can cover a broad range of topics. Being intentional when starting or revamping leadership development efforts can decrease the time it takes to see the desired results. 

What makes for Effect Leadership Development 

The most effective leadership development is more than a course or a program. It is specifically designed to address current and future business needs. It sustains and elevates the organization's culture and prepares participants to solve real business issues.

To determine whether leadership development efforts are effective, the design and management of the development include defining the measurable outcomes and measuring and reporting on them. The most basic measurable outcome is counting the number of people who completed the development. Another foundational measure is assessing how much the participants enjoyed the development. To gain even more buy-in for leadership development efforts, many organizations shift over time and measure the return on investment and the impact on business outcomes.

Various techniques and tactics can be used to develop leadership skills based on adult learning and content design theories. It is well-documented that practice and hands-on experience are the most effective ways to build leadership skills that are successfully and repeatedly applied on the job. Reading, observing, participating, and learning from others also play a part in designing effective leadership development. 

Unlike a direct sale, which results in an immediate and easily quantified result, leadership development is an ongoing journey rather than an instant solution.

Leadership development can be overwhelming and certainly time-consuming. Even when the skillset exists within the business, many organizations do not have the bandwidth to design, execute or enhance all or parts of broad leadership development efforts.

If you are interested in starting or enhancing your leadership development efforts, Ripple Effect Culture(link to leadership development page) can help you!