By Josh Bersin
Weak leadership can cost a company in many ways—alienate employees, reduce performance, erode trust among stakeholders, and stifle innovation. In fact, the quality of leadership is so important that analysts place a 15% spread on stock price based on company leadership.
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Despite this fact, and the availability of thousands of books on leadership, corporate leadership development around the world is weak. A whopping 86% of HR and business leaders see leadership shortfalls as a top three issue, according to Deloitte’s Global Human Capital Trends 2015 report, and close to 51% believe the issue is urgent. When we asked executives to describe their readiness overall, only 6% of executives say they feel “very ready” to meet their leadership needs, a drop of nearly 15% compared to the year before.
And this is not for lack of spending. Our research shows that leadership development spending increased by 14% in 2014, with billions of dollars spent on this topic. Still companies still seem to struggle to move the needle.
What is going on?