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LEADERSHIPDEVELOPMENT:
WORTHTHEINVESTMENT?
STUDIESSHOW THATLEADERSHIP
DEVELOPMENTYIELDSRESULTSIN:
EMPLOYEE
PRODUCTIVITY
ORGANIZATIONAL
AGILITY
TALENT
ATTRACTION
ANDRETENTION
FINANCIAL
PERFORMANCE
Companieswithhighscoresfortheir
investmentsinhumancapitaldelivered
stockmarketreturnsthatwere5times
higherthanothercompanieswithless
emphasisonhumancapital.
(Stockpricesof11publiclytradedfinancialservicesfirms.)
3
$1spentonleadershipdevelopmenthas
shownareturn-on-investmentof$2.20.2
Companiesthatexcelinleadershipdevelopmentexperience
substantiallyhigherrevenuegrowthandprofitmargins.1
FINANCIALPERFORMANCE
Internalcandidatesalreadyknowtheorganizationandhowtonavigateit.
It’sdifficultandcostlytorecruitoutsideleaders
tofillkeypositions.3
Providingleadershipdevelopmentforinternalstaff
ismoreeffectivethanhiringexternally.
TALENTATTRACTIONANDRETENTION
comparedto
ofcompanieswithstrategic
leadershipdevelopment
respondrapidly
tochange
86% 52%
withlessmature
leadershipprograms3
Whenfacingchangesinthebusinessenvironment(e.g.,organizational
transitionsfrom growth,acquisitions,reorganization),companieswith
ORGANIZATIONALAGILITY
Organizationswithleadershipdevelopmentenjoythesehigheryieldsduetotheireffective
leaders,andalleffecttiveleadersdemonstratetheTheFivePracticesofExemplary
Leadership®
.
Thebestleaderselicit3timestheamountoftalent,energy,
commitmentandmotivationfrom employeescomparedtotheir
counterparts.4
GREATERPRODUCTIVITY
LEADERSHIPDEVELOPMENTISWORTH
THEINVESTMENT.
TheLeadershipChallengeisaglobalcampaigntoliberatetheleader
ineveryone.Learnmoreaboutittoday.
LeadershipChallenge.com
1
BostonConsultingGroup.“From CapabilitytoProfitability:RealizingtheValueofPeopleManagement.”AccessedOctober1,2014.
http://www.ihrim.org/Pubonline/Wire/Sept12/BCG_From_Capability_to_Profitability_Jul_2012.pdf
2
ASTD.“UsingLeadershipDevelopmenttoBoostReturn-on-Investment.”AccessedOctober1,2014.
http://www.astd.org/Publications/Magazines/The-Public-Manager/Archives/2012/Summer/Using-Leadership-Development-to-Boost-Ret
urn-On-Investment
3
CenterforCreativeLeadership.“LeadershipDevelopment:IsitWorththeMoney?”AccessedOctober1,2014.
hhttp://www.ccl.org/leadership/pdf/news/EFMD09LeadershipDevelopment.pdf.
4
Kouzes,JamesM.andPosner,BarryZ.GreatLeadersMakeGreatWorkplaces.SanFrancisco:Jossey-Bass,2013.

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