The Global Leadership Forecast 2021, undertaken by DDI, a global leadership consulting firm, shows that one of the most pressing problems for CEOs is that of attracting, developing and retaining leadership talent. In fact, 55% of respondents said that developing their next generation of leaders is their top challenge.
To exacerbate this situation, studies show that the younger generation of talent, the so-called Millennials and Gen Zs, are lacking some of the very competencies that are critical to leadership success. According to DDI, five critical areas stand out:
- Need for Feedback – while all leaders need feedback to grow and develop, this group indicated that they need more coaching and feedback than their managers were currently providing them.
- Low on EQ – While only 48% of current leaders demonstrate empathy and emotional intelligence, an even lower percentage (39%) of next generation leaders are doing so.
- Diversity and Inclusion are necessary – younger, newer leaders are more concerned with eliminating bias and ensuring an inclusive working environment than their older counterparts.
- Flexibility is critical – Even while most businesses are now reducing remote working, Millennials and Gen Zs in particular, are favouring hybrid models instead of returning to traditional face-to-face arrangements.
- Clarity is key – Without clear directions, this group finds it hard to make decisions and they are concerned about reacting to change internally as well as externally. Additionally, using data to help in this process is an identified weakness.
The question is how competent are your current leaders at nurturing and developing the next crop of talent in your organization? To adequately prepare your leadership pipeline, consider these questions. Does your organization…
- Have a structured process to identify leadership talent and assess competency gaps?
- Provide the required training interventions to ensure higher levels of performance in these areas?
- Support the on-going development of the required behavior changes through on-going coaching?
- Assess whether behavioural changes have actually taken place and examine the ROI on interventions undertaken?
- Check to ensure training and coaching programmes also align with the skills required to actively demonstrate your company’s core values?
The loss of leadership talent and poor succession planning have tremendous organizational costs which are not always counted in monetary terms. The hemorrhaging of technical and organizational knowledge, plus the potential of triggering low morale and other departures are often overlooked, but can create very real and expensive problems. Avoid the risks and take the necessary steps to secure your next generation of leaders!