“If your growth rate in revenues consistently outpaces your growth rate in people, you simply will not – indeed cannot - build a great company.” Jim Collins

Increased globalization and competition combined with an aging workforce have intensified the need for talented and engaged workers. Workforce reductions have slowed down the major battles for talent, but have increased the need for the talent to remain at a high level of performance. Many companies are trying to handle this dilemma by aggressively recruiting from the outside, hoping to land some bright stars who might take them boldly into the future. What is needed is a method that will develop the current workforce and keep the leadership pipeline full. Studies confirm that organizations that invest in leadership development programs and strategies have higher retention rates. The cost of replacing a leader is 29-46% of his or her salary. These costs could include recruitment, lost productivity and business plus many other hidden costs.

Increasing Leadership Capability

Capability is the ability to perform or produce; an innate potential for growth and development. Everyone has a certain level of capacity and that level determines the opportunities that are available for that person at any given time. The important thing about capacity is that it expands. The more you help people to develop their talents, the greater their ability becomes and the more opportunities become available for the individual and the company. Increasing Capacity requires conscious effort. People don’t increase their ability by doing the same thing. Growth requires stretching oneself. It requires conscious application of new skills. Let’s take a look at a newly promoted leader: This person is technically very good, which is why he was promoted to leadership in the first place. Once in the leadership role, however, he starts to flounder because he is doing the same thing he always did yet now he needs different results. Increasing capacity requires identifying the skills necessary at each leadership level and then consciously applying them. Many companies don’t articulate the skill set differences for the varying leadership levels. Without knowledge of the skills the leader needs to develop, he will not develop those skills.

Once armed with the knowledge, new leaders confident in their abilities to make a difference may fail in spite of their efforts because they haven’t developed the skills yet. The pathways haven’t been developed in the brain. New skills take conscious practice. Self-knowledge is a critical aspect of any growth training initiative. If the new leader is not able to ascertain what skills need to be developed, the talents that lay dormant and the weaknesses that undermine their effectiveness the results will stay the same. Standardized assessments can be a helpful tool in this phase to illumine any potential blind spots.

Readiness and Willingness

With any development initiative, the key ingredient for success is the readiness and willingness of the people being developed. This requires their commitment to practicing new skills and being open to the ultimate challenges and failures that come along the way. Creating opportunities for leaders to choose to be part of a leadership development process assures that the power, accountability and responsibility stays with the leader and that change begins with him or her.

Talent management and development projects take support and commitment from all levels of the organization, from the top down. Jack Welch, past CEO of General Electric likened his job to that of gardener providing water and other nourishment to the men and women under him. This is a useful analogy for all levels of leadership.

The companies that will thrive in the coming years are the ones that follow a succession plan: A plan that defines the skills for each leadership level and creates standards that can be closely measured to ensure results. Leadership development designed to increase the capacity of the leader and the organization will lead to greater opportunities and a more productive workforce. In the organizations of today and tomorrow development is not a luxury but a necessity.

Robin Wilson is the founder of Reach and Achieve Associates, a performance and development coaching, training and mentoring firm that specializes in helping companies access, coach and retain key talent. The programs are designed to develop, support and maximize the people resource of an organization.

Robin has facilitated presentations with groups of 150 or more, and has been a guest speaker for several well-known organizations, including the New York State Conference of Mayors, The Governor’s Office of Employee Relations, and the New York State Society of Medical Assistants Annual Convention.

She co-authored the book Maximize Your Mind; Peak Your Potential available on her web site. Her article “Ethics in Sales” was published in the HRDQ Press.

Visit Robin's blog at: http://www.performancetools.typepad.com

For a complete listing of products and services visit her web sites at: http://www.ReachandAchieve.com and http://www.PerformanceLeadershipTools.com

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