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Leadership development – a round-up of latest research and trends

IntroductionThis paper is for HR and L&D practitioners who need to keep abreast of the vast array of information and learning technologies associated with developing and retaining talented leaders. Leaders who are ‘fit for purpose’ both now and in the future. We have consolidated the views and predictions from some of the top thinkers regarding global leadership, such as The Corporate Leadership Council (CLC), Cranfield School of Management, The King’s Fund, the UK Commission for Employment and Skills (UKCES) and the Center for Creative Leadership to name but a few.

If you’re short of time and need to update yourself with what’s being said about leadership development then we hope you will find this paper useful.

It is divided into three main sections:

Section 1 considers the context and environment in which we are developing leaders and summarises the major trends predicted by surveys and research.

Section 2 considers whether leadership development in its current format is in crisis and if it is failing to meet leaders’ development requirements.

Section 3 uses the information contained in the first two sections to make recommendations for leadership development activities.

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Leadership development – a round-up of latest research and trends

Section 1

The context in which we are developing our leaders – predictions about the future world of work

When thinking about developing talented leaders along your leadership pipeline it is critical to consider the context in which they are being developed. Much of the research and views we reviewed agree that the era of the ‘heroic individual leader’ is gone. Those responsible for helping leaders with their development must understand and use the context leaders are now working in.

The UK Commission for Employment and Skills (UKCES) conducted a recent analysis1 to predict employment trends in 2030. From their findings they predict that in 2030 the UK workforce will be:

Multigenerational with four generations working together as they predict that the number of economically active people over 65 will increase by a third in the next decade.

Also, Millennials are now entering the global workforce in greater numbers and Schwartz, Bersin & Pelster2, (2014), predict they will make up 75% of the global workforce by 2025. This means the workforce is getting younger and older at the same time so leaders will need to manage this highly diverse set of employees whose needs may vary considerably. Schwartz et al (2014) claim this is the most multigenerational workforce in history.

Baker3 (2014), in a study conducted on behalf of Towers Watson, found that 71% of senior executives (n=480) expected employees aged over 60 to increase by 2020. Their findings also showed that managing an ageing workforce had moved up from number seven to number three on the HR agenda – 46% of respondents said they will need to implement changes to ensure the skills of their older workers remain up to date.

Research and leading thinkers (eg. Baker, 2014) suggest that the workforce will be more complex to lead because of this multigenerational aspect. However, a US study by Deal4 et al. (2013) (n=5940) found that despite the differences between the generations – such as comfort with technology – generally, there were more similarities than differences in what they believed made an effective leader. All three generations

surveyed wanted leaders who were collaborative, inclusive, team-orientated, enthusiastic, generous and compassionate. They were less keen on hierarchies and leaders who were self-reliant and autonomous.

Han Teck & Hennessy (2011)5, think newer generations have more of an individualistic focus compared to the more collective orientation of the older Boomer generation. But, they also state that ‘in the existing body of research referred to above, everyone agrees that leadership is about people and that leaders need to be empathic and caring with their staff. All generations want to feel cared about and supported by their leaders.’

The world is more global and the labour market for sought after talent is highly competitive.

In contrast, they also predict fewer opportunities for low skilled workers and ferocious competition between these lower skilled job seekers. This could potentially result in a two-tiered labour market with winners and losers and organisations fighting for the highly skilled minority.

Deloitte’s Global Human Capital Trends: Engaging the 21st-century workforce, a survey of over 2,500 organisations in 90 countries (Schwartz, Bersin & Pelster, 2014)6, also found that critical new skills are scarce and unevenly distributed around the world. They argue that the world is now more global and interdependent than it has ever been and, as the recession

“The era of the ‘heroic individual leader’ is gone”

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ends and growth begins, organisations and their leaders are faced with a workforce with different demographics, different demands and different expectations from anything else that has gone before.

Concerned with both job security and work/life balance. In 2013 they report that over 3% of the UK’s workforce was on zero hour contracts.

The Towers Watson study found that employees’ priorities were shifting from money to lifestyle choices and that employees now expect a better work/life balance and more employment flexibility. Plus, 43% of the respondents expected greater employee demand for benefits such as healthcare and retirement options.

Boundaries between business and social issues are increasingly becoming blurred. The concept of ‘conscious capitalism’ is growing, meaning that both consumers and employees are making new demands on organisations. In essence, employee engagement and consumer satisfaction are now directly related to the social fabric of organisations.

Chen Feng, chairman of HNA in China states that one of the company’s key values was not just to make money but to ‘benefit human beings’ progress and happiness’.

They predict that leadership will become progressively project based relying on the collaboration of virtual, flexible teams.

Accenture’s Institute for High Performance (Thomas, Bellin, Jules & Lynton, 2014)7 interviewed 50 C-level executives over five continents. They found that top leaders and leadership teams now need to embody a different set of qualities to deal with the daunting challenges of today’s workplace and manage the complexity and uncertainty of global environments. They found that organisations now use ‘leadership ensembles’ which configure differently depending on the challenge they face. These ensembles allow organisations to react more rapidly and effectively to change than using the ‘traditional heroic leadership’ approach, where the figurehead leader makes all the important decisions. They bring together teams of executives with distinct expertise. This enables them to capitalise on diversity, keep on top of global trends and anticipate future trends. The types of ensemble identified were:

Kitchen Cabinets – an inner circle of trusted advisors which are usually chaired by the CEO.

Tiger Teams – experts and divergent thinkers tasked with an explicit goal.

Advocates – a team of ‘rival’ senior executives and experts assembled to review a situation and generate debate to arrive at a wider and deeper understanding.

Operators – a team of executives responsible for a specific function, process or location.

The Deloitte survey agrees (Schwartz et al, 2014) that collaborative technologies are making it easier for global teams to share expertise and access experts both within and outside of an organisation. Technology has changed the nature of collaboration and expertise sharing so leaders need to develop competence in areas such as cloud-based technology, HR analytics and artificial intelligence (AI). They argue that doing more is not enough; leaders need to do things differently on every critical issue of leadership including retention, engagement, learning and development and analytics.

The executive respondents in this survey recognised the need to take action in these areas but were not confident about their leaders’ ability to deliver on them. They think that the changes in the workforce were significant and already present. The Accenture survey found

similar results in that few CEOs surveyed felt they were ‘on track’ with their leadership talent. In particular, they thought their teams were not diverse enough, did not have enough of a global mindset and did not collaborate sufficiently to meet challenges. They foresee issues in stockpiling leadership talent to meet the ensemble roles for the future.

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Section 2

Is there a crisis in the current provision of leadership development?

As mentioned in Section 1, the paradigm for effective leadership has changed. Leaders, in particular senior leaders, are expected to make increasingly complex decisions, lead generationally diverse teams in global and culturally diverse locations amid fierce competition for relevant talent. Leadership is evolving and leaders need to embody a different set of qualities to perform in this new era. (eg. Thomas et al, 2014)8.

Traditionally, leadership development initiatives have been based on the leader’s self-concept and how it relates to their actions (Shamir & Eilam, 2005)9. This approach is intrapersonal, in that it focuses on the story of the leader and followers are there to affirm the leader’s legitimacy. Structured leadership development programmes in this vein tend to focus on addressing the gaps in the leadership capabilities and skills of the individual.

A study by Blanchard ‘The high cost of doing nothing’ in 2009, cited by Lamoureux, (2013)10, found that the average organisation forfeits more than $1 million through sub-optimal leadership practices. Another report, ‘Bersin & Associates Talent Trends: A Year of Guarded Optimism’ in 201211, found that only about 50% of organisations thought their mid-level managers were highly capable and just over 30% of their first line managers. This suggests that leaders are not being developed properly to deliver against their organisational goals. The same report claimed that three quarters of all the leadership teams surveyed failed to achieve business goals and nearly 60% of global leaders considered a lack of leadership to be

the major cause of their company’s inability to effectively respond to change.

A global study, (n=1200) ‘Next Practices in Global-Minded Organisations’ by The Institute for Corporate Productivity (i4cp) in 201312, stated that ‘global-mindedness’ is now a given for high performing organisations. The study says high performing leaders’ performance was based not on their position in the hierarchy but by their degree of influence, ability and willingness to collaborate with their colleagues across silos, locations and cultures. In addition to

the more traditional leadership skills of communication and strategy, international experience and dealing with ambiguity were seen as critical for success. The study also found global leadership development effectiveness was positively correlated with market performance in terms of market share, revenue growth, profitability and customer satisfaction.

Towers Watson in their 10th Anniversary report of Change and Communication ROI (2013/4)13 found that although a leader’s job in communicating ‘a line of site’ still remains important there is a much greater need for collaboration and two-way communication in order get the best performance from individuals and teams. They say that many organisations lack the courage to try the newer approaches and step out of their comfort zones. They also think organisations struggle in key areas such as time, money and resources for communication.

Schwartz et al, 2014, believe it is important to help leaders find innovative ways to attract, source, recruit, drive passion, engage, include and tap into the diversity within their teams. Leaders also need to find ways to help overwhelmed employees, including themselves, deal with the constant flood of information and distractions. Initiatives that attempt to develop leaders in an isolated way do not support them to achieve these goals. Baker (2014), reported from a study of 480 senior executives that managing talent in the future will mean a move away from cost control towards people management. His participants reported that the ability to manage talent will be a top driver, second only to technology and globalisation. Considering Scriveners’ (2013)14, view that leaders are generally promoted on their technical skills and knowledge rather than their people skills, this is an important area of focus for HR and L&D practitioners. The global survey of 700 leaders found that 91% reported having too much work to do and 75% said they had little or no capacity to do more with less. So helping them to become more self-aware and confident at handling the people aspect of their role will be vital for long-term, sustainable performance.

“Leadership is evolving and leaders need to embody a different set of qualities to perform in this new era”

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Back in 2011, Probert15 highlighted a crisis in leadership development literature, with too much focus on the concept of leadership and a dominance of competency frameworks that disregard the subtle, moral, emotional and relational aspects of leadership. She said we needed to address the contextual side of leadership which is mostly absent from leadership development literature. Now, in 2014 this appears to be even more important given the predicted trends.

Hartley & Benington (2011)16, agree that leadership research and action need to move away from long lists of personal qualities and competencies towards capabilities. They call for greater attention on the emotional intelligence of leaders within the context they work in. They believe this will help them to make sense of their environment and be able to work effectively within the continuously changing context of a complex, adaptive and interconnected system. They also believe that evaluation of leadership development needs to move beyond the Kirkpatrick framework towards a more narrative approach. In essence, they argue leadership development needs to shift from focusing on individual traits and characteristics towards a greater focus of leadership as a set of processes concerned with mobilising action by moving others towards common goals. Leadership is a dynamic process within a complex and volatile system.

Turnbull James (2011)17 agrees. She thinks top leaders may not have sufficient and relevant information to make effective decisions in our fast changing and complex world. She says development that focuses solely on leaders’ attributes will not bring about the desired change, yet much of leadership development still tends to focus on the individual leader and their personal skill set. She also cited arguments against over reliance on competency frameworks as they are superficial and do not address the implicit cultural and psychological processes. Competency frameworks are criticised for promoting the idea that leadership can be done effectively by presenting a set of behaviours regardless of context and that past behaviour is no longer a suitable indicator of behaviour that is required now and in the future. Another point she makes is that many leadership competency frameworks look remarkably similar across organisations, despite operating in very different markets, sectors and countries.

Rabin, 201318, argued that the formal learning provided by many organisations, whether classroom based or virtual, has limited impact. He says most organisations invest most of their time and resources into instructor led. While he thinks well designed instructor led leaning is useful, he believes that coursework and training to achieve specific learning objectives should only constitute 10% of learning solutions. The other 90% of informal learning should be met by challenging work-based assignments (70%) and developmental relationships (20%).

Petrie (2013)19, from the Center of Creative Leadership agrees. He claims most leadership development programmes look at the leader in isolation and fail to engage key stakeholders. This means that they miss out on the support, advice and accountability of colleagues. He also believes that traditional leadership development programmes spend too much time delivering information and not enough on developing the leaders themselves. Furthermore, the content is too disconnected from their actual work, which makes it hard to transfer

the learning. Petrie criticises programmes for being too short and designed as one off events. They should be ongoing processes with regular follow up and feedback, helping leaders to solidify their new thinking and behaviours so that they become habitual.

The consensus from the experts seems to be that leadership development programmes that are designed as events, focus on individual thinking, behaviours and skill set are no longer meeting the needs. The studies cited have shown that senior executives are not confident in their leaders’ ability to meet the current and future challenges. So it does seem that yes, there is a crisis in the current provision of development opportunities for leaders and for practitioners in this field. It will mean designing and evaluating things differently, which will be covered in the final section.

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Section 3

How the practice of leadership development needs to changeSo what can HR and L&D practitioners do to support and develop our leaders of the future?

We can help our leaders to understand and feel comfortable with their own authentic leadership style

Rather than develop leaders individually based on a list of behaviours listed in a generic competency framework, it seems that effective leadership development activities focus more on helping leaders to recognise and use their authentic style within the context in which they lead. Eagley (2005)20, believes that effective leaders are created by leaders and followers together and that leadership is an interpersonal process. Followers want to be able to identify with their leader’s values so leaders need to adapt their communication to show what they stand for in a genuine and authentic way. This is very different from the ‘heroic leadership’ intrapersonal approach where the leader leads from the front and makes the decisions with little collaboration or input from their followers.

Leadership development activities can help leaders in this way by providing them with support mechanisms and time to attach insights to their own experiences – such as the challenge

assignments and developmental relationships advocated by Baker (2014). Providing leaders with a contained space where they can reflect on their performance, values and moral reasoning will help them to have greater clarity about who they are. This should stimulate personal growth. Then leaders can learn to be more authentic and fulfill the need of their followers for trustworthy leadership in this increasingly uncertain world.

Deal et al. (2013), found that all three generations of the workforce wanted leaders who show consideration for others, respect and encourage their employees’ views, support and facilitate teamwork and collaboration, show compassion and inspire others to do the best work they can. In essence, they want leaders who are trustworthy, genuine, humane and are in touch with their emotions. This was reinforced by Steare et al (2014), who state that managers need to become more mindful about the decisions they make and the impact they have.

In their Change and Communication report (2013/14)21 Towers Watson found that the best companies grow informal and collaborative relationships across their organization, fostering a sense that all employees at all levels are in it together.

We can create a strategy to develop leaders at every level of the organisation so the leadership talent pipeline is fully prepared to meet organisational challenges and support people though change.

Lamoureux (2013), believes there are gaps in leadership capability from one level to the next. In order to meet leadership requirements, organisations should focus on developing leadership capability consistently at every level. She argues that senior leaders’ support for developing their leaders is critical and should be an integral part of the talent management strategy as well as aligned to the strategic plan. She argues for Senior Management Team (SMT) involvement in leadership development activities both formal and informal, providing guidance and input to help prepare their leadership teams for future challenges. She quotes research by Bersin (2011), which found four levels of organisational maturity related to leadership development. These were:

Level 1 – Inconsistent management training. Usually a catalogue of courses unrelated to the strategic plan.

Level 2 – Structured leadership training. Usually built around building skill sets against core leadership competencies. Senior executives are beginning to embrace leadership development as a strategic imperative.

Level 3 – Focused leadership development. At this level the focus is on developing the organisation rather than just individual leaders. The focus is on preparing for the future and involves culture-changing events in a blended delivery approach. Senior executives promote and participate in leadership development activities.

“Effective leadership development activities focus on helping leaders to recognise and use their authentic style”

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Level 4 – Strategic leadership development. Senior management support here is exemplary and leadership development is an integral part of the overall talent management system. The development activities all align with strategic priorities and are delivered using a broad learning format.

Bersin reported that those operating leadership development at level four compared to those operating at level one were:

20x greater at overall employee retention

12x greater at change and business growth

8x greater at performance based culture

7x greater at business results

6x greater at engagement and retention of leaders

The Towers Watson study found that organisations with a deep understanding of their culture and business strategy were far more likely to have better financial performance and significantly outperform their peers.

Schrivener (2013) also argues for better development for first line leaders as he estimates that first line leaders make up 50-60% of the leadership population and are responsible for managing up to 80% of all employees

We can find ways to integrate cloud technology and social media to transform how leaders access materials and build collaborative, developmental relationships.

Technology has transformed the workplace for all of us. The growth of the smartphone, social media platforms and cloud computing have allowed us to access people and information at the touch of a button (or two). Technology has changed the way leaders recruit, train and performance manage their teams. Leadership development professionals need to explore ways leaders can access the technology they need to support them in their role without becoming overwhelmed.

One of the trends we have noticed is the constant stream of new tools, platforms and smartphone applications aimed at developing leadership skills, knowledge and behavior. The challenge for HR and L&D practitioners is to ‘sort the wheat from the chaff’ by identifying which of these add value and which turn out to merely be a distraction. The need to provide centralised, easily accessible knowledge sharing resources and discussion forums that can be accessed from anywhere around the globe is already here. The challenge is to find ways for leaders to use new technology but still keep it simple and relevant.

The 21st Century workforce is already highly connected and tech savvy so L&D teams must navigate a myriad of technological advances, global trends and requirements and demographic shifts in their goal to develop top talent for their leadership pipelines. It will also mean investing in technology to enhance the connectivity of virtual teams. If we are serious about developing our leaders we need to be able to identify talent quickly and provide ongoing and genuinely relevant support as and when they need it. Technology can be used to do this.

Rabin (2013), explores the growth in connecting through social media platforms and argues that apps and mobile learning are the number one learning tools outside of the workplace. These provide leaders with job aids and nuggets of information as and when they are relevant. The other technological advance he discusses is the growth of massive online, open courses (MOOCs) which allow leaders to engage with peers on a massive scale across sectors, markets and countries. It is an opportunity to explore the cultural aspect of leadership as it has a global scope.

We can provide our leaders with strategies, mentors and tools that are particularly suited for decision making in complex, ever-changing environments.

Hartely & Benington (2011)22 from the King’s Fund put forward the Warwick 6 C Leadership Framework as a useful tool for leaders in healthcare.

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Concepts – Leadership can be conceptualised in many ways. The overall concept of heroic leadership is being replaced by a more critical view which acknowledges leadership can be destructive as well as constructive. Current trends conceptualise leadership as a dynamic, interactive process within a specific context.

Contexts – Leadership needs to be considered within a continuously changing context with multiple variables affecting the leader’s environment such as politics, demographics, growth in technology and climate change. Leaders will need to be able to envision future scenarios and potential problems.

Characteristics – Legitimacy for leadership can take many forms. For example, it can be societal, organisational or personal. There are different types of leadership depending on the characteristics of the role. It can be formal or informal, direct or indirect, face to face versus distant, political, managerial, professional or community based or it can be distributed and shared across a number of people. Understanding the characteristics of leadership will help inform the type of develop options that can be undertaken.

Challenges – There are many different challenges facing leaders so it is important to clarify the purpose of leadership. Leadership needs to be ‘fit for purpose’ and leaders need to be able to deal with a number of challenges from tame through to wicked and complex problems.

Capabilities – Leadership research and practise is moving towards capability and greater attention is being paid to leaders’ emotional intelligence.

Consequences – The current complex context that leaders are operating in makes it harder to assess their impact and outcomes. Multiple variables make it almost impossible to establish cause and effect. Understanding whether leadership is making a difference may need to be evaluated differently with less focus on quantitative data and more on qualitative data.

Rabin, (2013) believes leadership is learned and the majority of this learning is informal and learnt on the job. He argues that for effective leadership development, HR and L&D practitioners need to redefine the blend. For him, true blended learning isn’t just a mix of classroom and virtual training it is much more than that. It is about scaffolding the learning with appropriate materials, technology, assignments and relationships at the right time. It involves looking beyond the organisation chart towards the informal connections and the gaps across teams, functions, organisations and geographies. Leaders will need to get better at leveraging new as well as existing relationships to achieve their goals.

Petrie (2013), agrees and argues for more vertical development for leaders. He distinguishes the difference between horizontal development which focuses on transferring information to the leader and vertical development, which focuses on transformation of the leader. He argues that one of the limiting factors to leaders achieving their goals is the way they think and that this can be transformed by being part of strong, developmental networks that encourage new ways of thinking as well as intense stretch experiences.

Turnbull James (2011), suggests that the role of L&D is to enable leaders to become the kind of leader they aspire to by providing opportunities for personal insight. This includes better awareness of their impact upon others, an understanding of how their personal history and values impact upon their decision making and the assumptions they make. This requires working with leaders in-depth.

Storey & Holti (2013), agree that leaders now need to manage performance by using soft intelligence as well as hard data. To do this, leaders need to be able to validate and engage positively with negative emotions rather than suppress or deny them. They discuss research into ‘emotional contagion’ which starts as a dyadic process but can quickly spread throughout groups. Employee behaviour is in part shaped by what leaders do and the leader’s job has become increasingly about the management of emotion which they can influence both positively and negatively.

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ConclusionLeadership development is in transition. It is moving away from the intrapersonal focus of heroic leadership through developing an individual’s skills, knowledge and behavior towards a broader, more dynamic and contextual interpersonal focus. Leaders are now seen as part of a complex system. But their needs are not being adequately met by training and learning events where the focus is entirely on providing knowledge and practicing skills. Traditional development events, if well designed, are still important but should only form part of the picture – some argue only 10% of overall learning solutions. The remaining 90% of informal

learning is an opportunity for HR and L&D professionals to help leaders tailor and scaffold their own learning to meet the needs of the volatile environments they are working in.

L&D can support leaders by helping them to find the right stretch assignments and developmental relationships as well as providing time and a safe space for self reflection to speed up their personal growth.

Understanding the new paradigm of leadership can inform both design and delivery and part of the future role for HR and L&D practitioners is to put forward a convincing business case for investing in leaders at all levels in the organization. We hope the material provided in this paper may be useful in doing that.

About Learning Consultancy Partnership LLP

Learning Consultancy Partnership (LCP) is a UK firm specialising in leadership development and executive coaching. To find other white papers and research please visit us at www.lcp.org.uk or you can call us on +44 (0)1273 590232.

This whitepaper was written by Claire Walsh the Managing Partner.

Learning Consultancy Partnershippartners for performance

“Leaders are now seen as part of a complex system”

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References

1 The future of work: Jobs and skills in 2030, Stormer, E. et al, (2014)

2 Global Human Capital Trends 2014: Engaging the 21st-century workforce, Schwartz, Bersin & Pelster (2014)

3 Older, but none the wiser? The implications of an ageing workforce in the UK, Baker, N. (2014)

4 What Makes a Leader Effective? U.S. Boomers, Xers, and Millennials Weigh In, Jennifer J. Deal, Sarah Stawiski,, William A. Gentry, and Kristin L. Cullen

5 The Aging Workforce in Singapore: Managing Intergenerational Issues of Generation Y and Baby Boomers at the Workplace, Han Teck & Hennessy (2011)

6 Global Human Capital Trends 2014 – Engaging the 21st-century workforce, Schwartz, Bersin & Pelster (2014)

7 Leadership Ensembles: Keys to Developing the Next Generation

8 How global companies are really led, Thomas, R.J., Bellin, J., Jules, C. & Lynton, N. (2014)

9 What’s your story? A life-stories approach to authentic leadership development. Shamir, B., & Eilam, G. (2005). The Leadership Quarterly, 16, 395-417.

10 Five trends in leveraging leadership development to drive a competitive advantage, Lamoureux, K., (2013)

11 TalentTrends™ 2012: A Year of Guarded Optimism

12 Next Practices for Global-Minded Organizations, The Institute for Corporate Productivity (2013)

13 2013 – 2014 Change and Communication ROI Study

14 Leadership trends in 2013, Scrivener, G. (2013)

15 Leadership development: Crisis, opportunities and the leadership concept, Probert, J. (2011)

16 Blended Learning for Leadership, Rabin, R. (2013)

17 Recent trends in leadership, Hartley & Benington (2011)

18 Leadership in context: Lessons from new leadership theory and current leadership development practice, Turnbull James, K. (2011)

19 Vertical leadership development – part 1: Developing leaders for a complex world, Petrie, N. (2013)

20 Achieving relational authenticity in leadership: Does gender matter? Eagly, A. H. (2005). The Leadership Quarterly Gallup Leadership Institute, College of Business Administration, University of Nebraska-Lincoln, NE

21 2013 – 2014 Change and Communication ROI Study, Towers Watson, 2013/14

22 Recent Trends in leadership. Thinking and action in the public and voluntary service sectors, Hartely & Benington (2011)

Further reading Towards a new model of leaderships for the NHS Storey, J. & Holti, R. (2013)

Managers and their moral DNA, Steare, R., Stamboulides, P., Neville Lewis, P., Plas, L., Wilton., P. & Woodman, P. (2014)

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