Posted tagged ‘spend’

The leader’s new clothes

15 July 2020

From $7 billion to nearly $14 billion.

That’s how much the spend on leadership training by American corporations grew over the preceding 15 years, according to Kaiser and Curphy in their 2013 paper Leadership development: The failure of an industry and the opportunity for consulting psychologists.

Over that same period we witnessed the bursting of the dot-com bubble, the implosion of Enron, and of course the Global Financial Crisis. While the causes of these unfortunate events are complicated, our leaders were evidently ill-equipped to prevent them.

Despite the billions of dollars’ worth of training invested in them.

Undressed mannequins in a shop window

For a long time I felt like the child who could see the emperor wasn’t wearing any clothes. Then Jeffrey Pfeffer visited Sydney.

Pfeffer is the Professor of Organizational Behavior at Stanford University’s Graduate School of Business. He was promoting a book he had published, Leadership BS: Fixing Workplaces and Careers One Truth at a Time, in which he states what I (and no doubt many others) had been thinking: leadership training is largely ineffective.

At a breakfast seminar I attended, the professor demonstrated how decades of development had no positive impact on metrics such as employee engagement, job satisfaction, leader tenure, or leader performance. He posited numerous reasons for this, all of them compelling.

Today I’d humbly like to add one more to the mix: I believe managers get “leadership” training when what they really need is “management” training.

They’re entreated to be best practice before they even know what to do. It’s the classic putting of the cart before the horse.

For example, the managers in an organisation might attend a workshop on providing effective feedback, leveraging myriad models and partaking in roleplays; when what they really need to know is they should be having an hour-long 1:1 conversation with each of their team members every fortnight.

Other examples include training in unconscious bias, emotional intelligence and strategic thinking; yet they don’t know how to hire new staff, process parental leave, or write a quarterly business plan. Worse still, many won’t realise they’re expected to do any of that until the horse has bolted.

I’m not suggesting leadership training is unimportant. On the contrary it’s critical. What I am saying is that it’s illogical to buy our managers diamond cufflinks when they don’t yet own a shirt.

At this juncture I think semantics are important. I propose the following:

  • Management training is what to do and how to do it.
  • Leadership training is how to do it better.

In other words, management training is the nuts & bolts. The foundation. It’s what our expectations are of you in this role, and how to execute those expectations – timelines, processes, systems, etc. It focuses on minimum performance to ensure it gets done.

In contrast, leadership training drives high performance. Now you’ve got the fundamentals under your belt, here’s how to broaden diversity when hiring new staff. Here’s how to motivate and engage your team. Here’s how to identify opportunities for innovation and growth.

$14 billion is a lot of money. Let’s invest it in a new wardrobe, starting with the underwear.