Executive Development:

An Essential Element for Succeeding in Today's Chaotic Business Environment

We find ourselves in a time that is demanding a transformation in our approach to business success.   Certainly, we are in the midst of one of the most challenging economic times since the Great Depression.   Yet, even before the crisis we were already fully engaged in a fast-paced, global-technical business environment that is filled with emerging opportunities yet fraught with growing uncertainties.   The speed of change, global competition, the war on terror, climate change and an unsettling economy add up to one of the most challenging times for organizations aiming to grow and evolve.  Many business people I speak to realize we are in a process of a massive transformation in how we generate business success and that this transformation must be lead by those in the executive ranks.  Therefore the case for robust executive development programs has never been stronger because the demand for true leadership has never been stronger.

Again, before I discuss a suggested approach to executive development it is important to remind ourselves of the foundational purpose of leadership - which is to create.  The primary tools for a leader's creative endeavor is:

• A fundamental focus on serving their clients and/or the market place.
• A clear and compelling vision whose foundation is based on the organization's core business.
• A high performing culture that is disciplined and guided by a core set of values.
• A buzz about the organization that attracts the best in class in talent and resources.
• Alignment around strategies and actions that most forward the vision and key priorities as well as the fundamental needs of key stakeholders.

No one can really argue with those outcomes and yet the current business climate has undermined the emphasis on executive development - at a time when we need it the most! As during other downturns, many organizations have pulled back on their executive development programs as a way to save the bottom line.  Yet, in this case it we may truly be cutting our nose off despite our face.  Years of unbridled growth, record profits and a strong stock market have masked the fundamental lack of leadership in Corporate America.   Now that we see that - it is more important than ever to do something about it!  

Clearly, if you organization is fighting for its survival, cutting back is understood.  Also, if you have had an executive development program that is not respected or valued - it may be clear why it is on the chopping block.  Yet, if you are still positioned well in the eyes of the market place and simply being more conservative with your spending - there is a way to intensify your efforts to develop more effective leadership in your executive ranks and to do so in a way that brings great returns.

This article is aimed at supporting those in the C-suite and senior ranks to consider ways to maintain an investment in executive development while at the same time ensuring that the investment has a positive impact on the business and maximizes the return on investment (ROI).  While it has been shown that the investment in Executive Development services can have a tremendous return on investment (ROI) - the level of that return will depend on your needs and the firm you chose to fulfill those needs.

Step I - Defining Your Return on Investment

The first question you need to ask yourself when considering your investment in executive development is:  What is the return on investment I am most hoping to gain from an executive development program?

This should be pretty easy to answer.  Ask yourself given where our business is at right now - what are the central success measures that will allow us to move towards my vision for the organization?

• Growth
• Increased market share
• Enhanced profitability
• Improved execution
• Stronger alignment with my people
• Stronger leadership competencies
• Other measure?

After you have selected your key measures, you want to create a specific outcome (e.g. 20% growth, double our profitability, improve our customer satisfaction, etc.) as well as declare a time frame in which you want to accomplish this.  Once you are done with this process you know what you are aiming for.  


Step II - Assessing Your Existing Leadership Culture and Envisioning It's Future

The next question is: Given the results we are seeking and the ROI we are expecting from developing our executives - what kind of leadership culture is required to succeed over the long term?  In other words, what leadership competencies are most necessary to take your organization from where it is today towards your vision and what is the current state of your leadership culture?

There are many ways you or the firm you hire can help you to define this.  One of the most powerful and cutting edge tools for assessing a leadership culture is The Leadership Circle's - Leadership Culture Survey.   This is a low cost - high impact tool that allows you to quickly determine the gaps in your leadership culture.  Such a tool also provides the foundation for measuring the impact of your executive development methodology because it allows you to come back later to take a snap shot of executive development trends as well as the current state of gaps in your leadership.

With this assessment in hand you can determine both the vision you have for leadership as well as the strategy to deploy to quickly close the gaps that will inevitably be found.


Step  III - Assessing Your needs and Defining the Qualities of Your Ideal Executive Development Partner

Next you need to ask yourself:

• What assets and supports do I have currently in place to assist me in closing the gaps in executive leadership?
• What limitations or apparent obstacles do I face in trying to close this gap?
• What qualities do I need in a resource that will support leveraging what we have already done and most mitigate the challenges we are currently facing?
• How will I best determine if an outside resource has those qualities?

Once you have answered these questions - you must determine how to find the appropriate resource to fill your needs.


Step IV - Finding Potential Resources

The first thing to do is to craft a quick statement that defines what you are trying to accomplish currently in your business as well as the type of resource that you feel can best support you.   Here is an example of such a statement:

"The most leveraged thing we must do now is refocus on our core and make sure we are deploying a sales strategy that supports our growth.  I know there is more our executive leadership team could be doing to achieve these priorities faster and I am looking for a resource to support me in building a strategically focused executive development program.  The kind of resource I am looking for must have a track record of  growing leaders that transform business results, understand the nature of business and have some experience in our industry."

The most obvious place for a CEO to share this vision is with their current network of C-suite Executives and key advisors.  By sharing your desire and asking for suggestions you are likely to be provided with a great list of potential resources.   The next likely place would be to connect with your networking organizations to see who in the membership may have such qualities.  Finally, you can ask your HR Department to be your partner in finding the best firm to fit your needs.  Yet, I have  word of caution here - unless your HR leader is one of your trusted advisors do not completely outsource executive development to them.   If you do - you run the risk that your organization's executive development program will not be strategic enough or produce the desired ROI.  If you feel you need to leverage HR - make sure they are your partner in the vision yet make sure you stay involved!

In addition, keep in mind that the next wave of thought leaders in the field of leadership and executive development are just emerging on the horizon.  This new wave of thought leaders and practitioners are much more powerful in their approach and more strategically focused.  While a big named firm can certainly fulfill your needs - there is a new group of power practitioners out there that may serve you even better.


Step V - Selecting and Hiring An Executive Development Resource

You are about to bring in a key resource who will stand shoulder to shoulder with you to build greater success.   You need to approach this "hiring process" in the same way you would if you were bringing on a key business partner - because you are!  After a careful search using your network - boil down your selection to three possible choices and invite them in for second interviews.    Prior to the interviews prepare your questions.  Some key questions you might consider asking are:

• What is your understanding of what kind of support I am looking for?
• Given the outcomes I am after - how would you approach working our organization and me?
• What will you do to roll up your sleeves and help me move things forward?
• What will you do to ensure you deliver the ROI I am seeking?
• What guarantees do you offer as well as what do I have to do to ensure I get maximum value from working with you?
• What are some examples of how you supported others in my position to achieve similar results?
• Why should I hire you over others I am considering?
• What do you uniquely bring to an organization that distinguishes you from other firms?

In addition, look at the outcomes you are aiming to generate as well as the qualities you are seeking in a resource.  Develop open-ended questions that allow you to test the potential advisor and provide a context for determining if they are the right resource for you.

Once you are done with the interviews go back and consider - is there a clear winner and why?   If this is the case - give the firm you selected a shot.   Have them support you in developing a game plan and then take the first step.  If the game plan is solid for developing your leaders yet the first step does not go well - you can always fire the resource and build on what you did with the next firm.   If there is not a clear choice, go over the interviews and do a scorecard on each firm based on the qualities you are seeking.  Finally, trust your gut by asking:

• Who do I trust the most and why?
• Do any of my potential resources provide something beyond the value I am asking for?
• Which one of these resources will challenge me in a positive way?
• Who do I sense would work to exceed my expectations?

Conclusion

Today's business environment is demanding leadership more than ever.  Organizations today must invest in supporting executive development.  At the same time, your organization needs to determine the most strategic approach that increases the likelihood of tremendous ROI.  To do this I suggest a five step process:

Step I     - Define your measures of success and ROI for your leadership/executive     
                development initiative.
Step II    - Generate a vision for your ideal leadership culture
Step III   - Assess your needs and define the qualities of your ideal partner
Step IV   -  Research potential resources
Step V    -  Hire, select and test your new partner in executive development

A great executive development firm is one that challenges your leadership habits, brings new and more effective approaches for developing your executives, brings a broad range of experience in doing so and has a track record of success.  If you follow all of the steps outlined in this article and have done your due diligence in checking out the backgrounds of the potential executive development firms - the chances are great you will achieve your desired results much faster than you would have otherwise on your own.   

If you are ready to take your organization to the next level - there is no better time than when the business environment is under distress.   And there are firms out there with strategic, practical and proven methodologies for developing leaders that are worth their weight in gold.  As with any strategic endeavor, the key is to "start with the end in mind" and then proactively look for the resource that can help you add velocity to your executive development process.