EMERGING TRENDS IN LEADERSHIP DEVELOPMENT SHAPING FUTURE LEADERS FOR SUCCESS LEADERSHIP | COMMERCIAL STRATEGY | INNOVATION TABLE OF CONTENTS INTRODUCTION Introduction ............................................................................................................................... 3 Flattening Organizational Structures ................................................................................... 4 Organizations are facing a business world that is rapidly becoming more complex and challenging. Unsurprisingly, many are struggling with how they can better prepare current and future leaders to be more agile to meet oncoming threats, overcome obstacles, and capitalize on opportunities. From our work with clients, we’ve identified the biggest leadership trends that will impact development programs over the coming years. This white paper covers the following trends in detail and explores how companies can start addressing these key changes within their development programs. Increasing Need To Develop Self And Others ................................................................... 5 Approaching The “Talent Cliff” .............................................................................................. 5 Striving For Gender Balance .................................................................................................. 6 Shifting Focus To Soft Skills .................................................................................................... 7 The Top Leadership Development Trends: • Flattening organizational structures • Increasing need to develop self & others • Approaching the “Talent Cliff” • Striving for gender balance • Shifting focus to development on soft skills • Adopting a blended approach to leadership development Adopting A Blended Approach To Leadership Development ....................................... 8 Concluding Thoughts .............................................................................................................. 9 Gender Parity Future Leaders Blended Learning Flat Organizational Structures Development of Self & Others Soft Skills StratX ExL • Emerging Trends in Leadership Development 2 StratX ExL • Emerging Trends in Leadership Development 3 FLATTENING ORGANIZATIONAL STRUCTURES INCREASING NEED TO DEVELOP SELF & OTHERS Many organizations are adopting flatter structures as some business leaders believe this will lead to lower operating costs, improved communication, and increased employee motivation. Since these businesses have wider spans of control and less centralized authority than those with more hierarchical structures, expertise and knowledge are dispersed across a broader base than most leaders have managed in the past. Thanks to technological developments, information flows are changing from moving up and down hierarchies neatly along reporting lines, to leaders and their teams freely interacting with one another and outside subject matter experts. The breadth of available information and the speed at which it flows will likely continue to increase over the coming years. Combined with the ongoing evolution in technology, businesses need to be prepared to face tougher competition. In addition, most organizations are coming to grips with a “VUCA” (Volatile, Uncertain, Complex, and Ambiguous) world where: No one individual can know everything and be able to single-handedly lead their teams and organizations. HIERARCHICAL ORGANIZATION The Changing Face of the Leader Because of these factors, the image of what a leader is supposed to be is changing. The individual “hero” leader, or “the smartest person in the room” who must know everything and micromanage his or her direct reports will be a thing of the past. Flatter structures call for collaborative, well-networked, and cross-functional leaders who can nimbly adjust to complex, ambiguous situations. These new leaders must be able to work with others who have expertise in areas that they do not and are smarter than themselves. The role of a leader is to articulate a compelling vision to align and inspire teams to achieve a common goal. To be successful, a leader must be able to listen to their team members, understand their drivers, and relate and coach as necessary. To keep on top of this rapidly changing environment, leaders can no longer sit back and say “I know everything I need to know” as what they do know today will be outdated tomorrow. In addition, direct reports whose managers constantly tell them they need to develop in certain areas are starting to question why the “leaders” are doing little to visibly develop themselves. The Self-Aware Leader Leaders need to become more introspective and mindful, reflecting on how well-equipped they are for the challenges they face and what gaps in knowledge and skills they need to address moving forward, continuously augmenting their own capabilities without being instructed to do so by their own supervisors. The Empowering Leader In addition to being held accountable for their own development, leaders must encourage the continuous development of their teams. Consequently, these same leaders must ensure that the resources are available for direct reports to take charge and drive their own development. This will require long-term investments, but these efforts will lead to more engaged, productive, and happy employees. APPROACHING THE “TALENT CLIFF” Many organizations are concerned that they face a talent “cliff” or “vacuum” as leaders born during the post-World War II “baby boom” retire. The fear is that the next generation of senior managers will not have the same leadership capabilities as their predecessors. If economic growth stays steady or strengthens, low unemployment and a lack of qualified candidates will make it more difficult for companies to fill their pipeline with talent from outside. FLATTER ORGANIZATION Whereas leadership development programs have tended to target “high potential” employees, companies will need to invest in programs aimed at developing “high performers” and internal talents that may have been overlooked for development in the past. These initiatives need to be used in tandem with a proactive approach to knowledge transfer between those who will be retiring and those will take up the mantle afterwards. Mentoring, coaching, and job shadowing are examples of how organizations can manage the transition. Developing the Millennial Leader In addition, more attention will be paid to Millennials, some of whom may already be in management roles. Some companies have had difficulties recruiting and retaining talented members of this generation. Now is the time to start providing Millennials with skills and development opportunities so that they feel fulfilled in their roles and wish to remain with their current organizations while also preparing them to succeed and create value sooner rather than later. StratX ExL • Emerging Trends in Leadership Development 4 StratX ExL • Emerging Trends in Leadership Development 5 Organizations are putting increasing emphasis on the need to work towards gender balance, aiming to promote a higher proportion of women to senior leader and executive roles over the coming years. Companies are doing this not only because it is the right thing to do, but because it is increasingly seen as good business sense. A recent study by a global leadership company found that: Organizations with women holding at least 30% of leadership roles are 40% more likely to have sustained, profitable growth. Women-only cohorts can also help build strong networks of women leaders within an organization. GOTIATIONS NE UNICATI ON MM CO EMPATHY TIVATION MO COACH IN G E AGEM NT AN M NTORING ME Elevating the Female Leader Achieving gender parity will likely require proactive efforts not only to elevate women to senior positions but retain future women leaders who are still a few years away from being ready. Organizations will achieve this primarily by implementing the right policies and creating an environment that is inclusive for women and supportive of their development. Leadership development programs, however, will also play a crucial role. Such initiatives can help women delegates recognize their own effective leadership behaviors and unique style that may differ from what is considered “normal” in their company. A business project component in an initiative can provide participants with high-visibility opportunities to demonstrate their acumen and suitability for senior and executive positions. & NT ME OP CR EA All too often, we hear the story of the employee who is very talented in his or her area of technical expertise but then runs into problems once promoted to a leadership position. Such managers lack the skills to effectively communicate with and delegate to their new teams, hampering the ability of the team to achieve its objectives. As the role of a leader migrates towards managing teams of diverse members who have different technical skills and areas of expertise, there will be greater emphasis on the need for leaders to develop their “soft skills.” Providing advice, mentoring, and feedback will be critical to team performance and leaders will likely require training and coaching themselves on how to do these effectively. StratX ExL • Emerging Trends in Leadership Development 6 StratX ExL • Emerging Trends in Leadership Development Y VIT TI ONALITY DEV RS EL PE Organizations that can make progress in this area will be less impacted than others by the looming “talent cliff”. A SHIFTING FOCUS ON SOFT SKILLS TIM E STRIVING FOR GENDER BALANCE The Emotionally Aware Leader Impactful leaders of the future will be adept in areas such as emotional intelligence, active listening, self-awareness, and empathy. Using these will enable leaders to develop a “people-centric” approach to managing their direct reports that can be customized for every unique individual, helping team members feel valued and empowered. Consequently, teams will be more engaged and motivated. 7 A BLENDED LEARNING APPROACH CONCLUDING THOUGHTS Still today, many leadership development initiatives have a one-sizefits-all approach, with delegates confined for days in a classroom being “taught” leadership concepts with little emphasis on practical application. Effective leadership is key to driving business success. In an ever-changing business environment, leaders will have to adapt and develop non-traditional skill sets and empower their teams to thrive. Development programs for all management levels need to evolve and use a wide variety of modalities; programs focused on leadership are no different. Modern programs should integrate components that address both “hard” business acumen and “soft” skills, using face-to-face workshops, webinars, business projects, and executive coaching. Programs should be both “divergent” and “convergent”. On one hand, elements such as eLearning and executive coaching should be individualized and provide leaders with more authority and responsibility for designing their own development path according to their specific needs. On the other hand, group learning elements such as workshops and team business projects can provide an opportunity for leaders to put into practice what they have learned in a collaborative environment, allowing “pull through” of learning and knowledge transfer within a cohort so that experiences are brought back to the leaders’ colleagues, shared, and impact the entire team. FREE CONSULTATION StratX works with Fortune 500 clients that are currently facing the trends listed in this whitepaper, co-creating solutions that are preparing current and future leaders for the challenges of today and tomorrow. For more information about how we can support your teams and your organization, contact us today at stratx-exl.com. In addition, as the importance of leaders partnering with other subject matter experts within an organization increases, development initiatives should put increased emphasis on delegates building viable networks of leaders across geographies, functions, and business units that can interact and work together to work towards common goals. DIVERGENT Individual Assessments C O N V E R G E N T Group Project Work Cohort Networking 1:1 Executive Coaching Personal Development Plan Theory Discussion Sessions Communication Workshops Team-Building Exercises Business Case Study Peer Feedback Sessions Business Project Presentation Online Learning Business Project Work Peer Coaching / Knowledge Transfer Convergent and divergent components to a learning journey should complement each other. The large-group convergent activities on the left prepare the learner for individual and small-group learning activities in the divergent phase. The subsequent activities in the convergent phase on the right provide the opportunity for learners to practice skills and use knowledge built during previous activities. StratX ExL • Emerging Trends in Leadership Development 8 White Paper Written by Corwin VANDERMARK / Designed by Holly LLOYD OWEN & Alexandra HARRIS StratX ExL • Emerging Trends in Leadership Development 9 LEADERSHIP | COMMERCIAL STRATEGY | INNOVATION STRATX-EXL.COM Yann Cartier Business Development Manager 17 avenue de l’Opera 75001 Paris FRANCE +33 (0) 1 53 46 69 00 paris@stratx-exl.com