Companies are going to see an increasing shortage of leaders capable of thriving in a global, fast-paced economy, according to a new study by the Institute for Corporate Productivity (i4cp). Fewer than a quarter of organizations surveyed say they're highly effective at developing future leaders, and most companies are not emphasizing the leadership competencies that lead to improved market performance.
Research highlighted in a new i4cp report on leadership competencies - now available exclusively to i4cp member organizations - shows that popular leadership competencies most commonly featured in development programs, such as having knowledge of the business, industry and customer, ethics, and an understanding of the bottom line, are not the most impactful when it comes to improved business performance.
The report breaks down and analyzes high-performance leadership competencies in two categories: business-related competencies and relationship and communication competencies.
The top business competencies correlated with market performance are:
- Strategy development
- Having a global mindset
- Decision-making from a synthesis of internal and external influences
- Organizational development
- Strategy execution
"Strategy execution" is the only highly popular leadership competency that also correlates with market performance.
"Developing leaders continues to be a perennial challenge for organizations. Demand is increasing for leaders with the ability to manage a global business and develop innovative and highly adaptive business strategies, but supply can't keep up," said Carol Morrison, i4cp senior analyst and author of the report. "With so many companies admitting they're not very good at developing future leaders, and their emphasis on competencies that aren't linked to market success, I see major leadership talent shortages in the near future."
More on the study and report is available for free in a recently published article Why Your Leadership Competencies May Be Failing to Deliver. Full analysis and interactive data from the study are available to i4cp members at http://www.i4cp.com/leadership/effective-leadership