Canadian HR Reporter

CANADIAN HR REPORTER February 6, 2017 FEATURES 15 PROFESSIONAL DEVELOPMENT How to improve leadership quality By Donna Burnett-Vachon and Colin Hall V olatility, changing busi- ness environments, fast- er-paced and increasingly complex change initiatives and evolving workforce demograph- ics have become the reality for organizations today. To be successful in this environ- ment, organizations must focus on leadership. e quality and ef- fectiveness of leadership can have a profound impact on workplace cultures and organizational per- formance at all levels. Leadership development has moved to the forefront as a stra- tegic priority for the most suc- cessful organizations in Canada and internationally. Studies have shown investment in leadership development can improve bot- tom-line financial performance, create organizational alignment, increase agility, and improve an organization's ability to attract and retain top talent. Previous research into leader- ship and changing business en- vironments by the Conference Board of Canada in 1999 and 2001 identified a shortcoming of orga- nizations that was affecting their ability to remain competitive, to grow and to prosper. e research indicated there was a growing "confidence lag" in organizational leadership in Can- ada. It highlighted both a need for strong organizational leadership and a lack of leadership capacity to identify and implement major change. A benchmark comparison of these results conducted 15 years later reveals little advancement has been made and although some improvements are evident, progress has been minimal and slow, according to e Leadership Outlook: Leadership Driving Or- ganizational Performance study, based on a survey of 441 HR and business leaders. Globally, the results are not much better. A mere 40 per cent of leaders rated the current quality of their organizational leadership as "high," according to 2014-15 research by the U.S.-based Con- ference Board and Development Dimensions International. And only one in four HR pro- fessionals rated the overall qual- ity of leadership in their organiza- tions as high, found the survey of 13,124 leaders. A global stalling of leadership development efforts is cited as the primary contributing factor. Despite an estimated $50 billion being spent on leadership devel- opment worldwide, only 37 per cent of leaders rated their organi- zation's leadership development programs as "effective." So, how can organizational leadership be improved? One approach is for organizations to devise a means for assessing the quality of their organizational leadership. A Leadership Per- formance Index (LDPI) from the Conference Board of Canada highlights 15 unique leadership qualities and behaviours that de- scribe organizational leadership capability and capacity. e index consists of five driv- ers or factors: Alignment and culture: Orga- nizations exhibit a strong culture of leadership and have collabora- tive leaders with a clear vision and alignment of organization goals and business objectives. Capacity for change and in- novation: Leaders have a high capacity for the identification and implementation of change and innovation. Trust and relationship- building: Leaders have strong and effective relationships with- in, and external to, the organiza- tion and have the confidence of their customers, employees and stakeholders. Personal and professional development: Leaders engage in their own personal and pro- fessional development and con- tinually develop their skills and abilities to lead change in their organizations. Identification and develop- ment of top talent: Leaders place a high priority on the iden- tification and development of top talent. e LDPI itself can be thought of as a continuum in organiza- tional leadership capability, with each level representing a different stage of leadership progression or maturity. Organizations can be organized into three levels or categories along the index — low, moderate and high. Organizations rating high on the index reported better perfor- mance outcomes including: • being 30 per cent more likely to have strong and effective leader- ship cultures • exhibiting high organizational performance in areas such as overall leadership performance, overall productivity and the STRENGTHEN > pg. 17 Global stalling of leadership development efforts is an issue.

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