Is there a proven return on the investment for developing leaders? You bet there is!
Business Case for Leadership Development
According to a 2016 survey published by McKinsey Research, 90% of CEOs are planning to increase investment in leadership development because they see it as the single most important issue facing their human capital needs.
- Not only do we see it in the cultural aspects of teams, but according to the Organizational Health Index reported by Egon Zehnder and McKinsey:
o Leaders that perform in the top quartile of leaders outperform others by 2 times EBITDA.
o Those organizations that invest most in developing leaders during significant transformations are 2.4 times more likely to hit their performance targets.
- The reason for the high degree of importance placed on leadership development is because it is an opportunity that must be addressed.
Corporations Play Critical Role in Executive Leadership Development
Knowing the importance that corporations play in building finance leaders, we have designed a compelling Corporate Program which supplements and leverages a company’s leadership development initiatives.
The Institute encourages career alignment with the employer by incorporating performance that emanates from on-the-job experiences and leadership achievements supplemented by education and training programs that improve on-the-job experience. The Career Plan of each member in the Institute begins either with a plan developed by the employer for the employee or a plan that is designed to align with the role a professional plays in their current career home employer.
Finance is continually faced with challenges in finding adequately skilled professionals. From recent studies and reports, the limiter is not the availability of technical talent, but technical talent that also possesses the behavioral and cultural aspects of providing service in a given job. In addition to the technical skills which are today’s table stakes, the behavioral skills that are most often sought after include:
o Aptitude for analytics and predictive analytics – 2016 EY Survey of 769 finance leaders
o Problem solving skill- decision support for the company – Jan Siegmund, CFO, ADP
o Ability to work cross-functionally – functional diversity – McGuire, Talent Growth Advisors
o Soft skills – communicate; persuade/negotiate – transformation agent; collaborate; ability to influence others; creative in thinking; agile in execution
The competition for talent will continue to change. According to a research article in Fast Company in 2016 “The Future of Work”, individuals are advised that they should plan on changing jobs every three years to earn their highest economic returns from their work efforts. This type of advice is reflective of the many transitions employees make during their careers. The March 2017 issue of Argyle’s CFO Newsletter quotes“…the reality that young professionals today are far less likely to stay with employers for the long term than previous generations”.
Reasons for job changes ranked:
o Higher pay
o Career Advancement
o Less stress
o Escape a negative boss
o Career focus change
o Work-Life balance
o Reorganization of employer
Two of the top eight reasons for transitions if the perceived lack of Career Advancement opportunities and the desire for a Career Focus Change. Both of these issues can be mitigated with greater attention to individual career planning.
To attract and retain the best talent, CFOs should start with positioning their companies and work environments in the most positive manners. Recommendations include:
o Supporting company brand by incorporating worker and community friendly work environments
o Creating a positive social media presence through online portals and mobile friendly apps
o Assuring compensation, benefits and bonus programs are highly competitive in the marketplace
o Career supportive initiatives for team members including mentoring programs
o Building into career plans diverse career-path opportunities and formal, finance-specific rotational programs
Many companies are taking the initiative to build their own better qualified professionals and leaders. This type of career guidance to the professionals is directed at a specific company’s needs, such as at Dell and Google, or as in the case with Mercedes, creating their own company’s finance education university.
McCracken Institute supports and enhances a company’s efforts by adding a substantial enhancement to their internal leadership development programs. Companies partner with the Institute as follows:
- Assure employees have a personalized development plan that aligns with the company’s circumstances and advancement opportunities
- Build into the career plans a career evolution which requires a combination of education and training, on-the-job experience and proven leadership over a career horizon; it is not a fast-track to the top
- Encourage employees to excel in their current roles; a high quality job has to get done and deadlines need to be met
- Inform employees that together you will seek additional develop opportunities for them over time that will help them develop their skills such as involvement in special projects and leadership opportunities
-Tracks the progress of each company employee in the Institute as they report achievements in education, experience and leadership
- Provides recognition in the form of periodic performance progress reports, and through a series of certificates of completion as milestones are accomplished
- Targets educational and experiential achievements to support each individual’s finance career plan – MI Career Plan
- Catalogues performance according to the complexity of the business environment in which the individual has been engaged --- MI Registry
- Measures accomplishments recognizing milestones of achievement against the broader responsibilities of an individual’s role in the business – MI Acknowledgements
- Recognition as a Corporate Member in the Institute including listing in the directory
- A distinguished plaque in the company’s name as a Corporate Member of the McCracken Institute
- Group membership discounts