Define Your Leadership Future
In this first decade of the new millennium, virtually every executive faces the same daunting dilemma: The demand for leadership talent far outstrips the supply.
In fact, the dearth of people qualified for important leadership positions has become one of the foremost challenges facing managers today. In a study by McKinsey & Company, three-quarters of the executives in the 77 companies studied said their company either didn't have enough leadership talent at times or was "chronically short of talent."
Faced with this challenge, your company might find itself staring at three options:
- Do nothing
- Hire from outside: Going outside the organization for talent makes sense in some instances—when the company stands to benefit from new technology, an infusion of new ideas, or a fresh perspective. However, going outside for executive talent is an expensive, time-consuming process.
- The starting pay of a senior leader brought in from the outside is almost always higher than that paid to someone promoted from within. It's also risky. Hiring mistakes at the senior level can be devastating to an organization.
- According to a study conducted by Manchester Consulting, four in ten leaders fail within the first 18 months on the job.
- Grow your own leaders: The grow-your-own-leaders approach is the obvious strategy for a number of reasons:
Helps your organization meet both long-term and emergency leadership needs at all levels. It also ensures continuity of management.
Growing your own leaders sends a positive message throughout your workforce. Promoting people is good for morale—and essential to a positive company culture.
In general, your organization will have a clearer sense of an internal candidate's strengths and o weaknesses as well as access to more and better data on that person's performance than you would with outside candidates. Therefore, you'll be able to make more informed and accurate selection decisions.
DDI can provide you with the following strategic support in your quest to grow your own leaders:
- Talent Management System Design
- Identifying the Leadership Pipeline through Acceleration Centers
- Web Based Talent Management System
