Leadership skills

How does your organisation develop leaders and managers?
A Checklist

This is a checklist, which may be used either for self-assessment or as a guidline for orientation.

What is the method of instruction?

  • Action research, action learning
  • Traditional teaching, collecting of information, reading of text
  • Project work
  • Role play and simulation
  • …..

What is the key orientation/basic understanding defined as ‚leadership’?

  • Leadership as Management (see Malik)
  • Leadership as Leadership (for example Senge or Tracy)

How is the impact of the leadership training measured?

  • Success of programme is assessed through traditional exams
  • Success of programme is assessed by checking performance in real business

What level of leadership development do the teachings aim at?

  • It addresses basic leadership qualifications such as the ability to delegate, to formulate targets, to manage objectives, to instruct subordinates clearly, to maintain the overview during a stressful situation, to give feedback, to plan, to motivate
  • It addresses advanced leadership qualities such as strategic thinking, system thinking, capacity to manage diversity, dealing with conflict, building teams.

Does the training impart very specific skills, such as:

a) Building motivational skills in order to:

  • Streamline operations
  • Accomplish more with less
  • Create new and profitable ideas
  • Generate quality products and services
  • Work together as a team

b) Enhancing capacities to

  • Recognize the personal leadership strengths
  • Build skills in being resourceful and creative
  • Train and develop highly motivated people
  • Assess own knowledge in the mechanics of management processes
  • Refine the influencing, listening, and other “people skills.”
  • Experience the value of respect and fun in making things happen.
  • Productivity strategies that help you cut through red tape, save time, money, and effort, and make better decisions.
  • Creativity techniques to simplify planning and procedures.
  • “Cookbook” management practices that allow you to easily manage and oversee a project of any size, type, or complexity.
  • Communication skills that help you decrease fears, encourage discussion, stimulate idea sharing, and achieve the results you want.
  • Various and flexible rewards and fun that motivate people to achieve goals

 

GAINING FROM IMPROVED LEADERSHIP SKILLS

How do we measure the increased productivity gained from improved leadership and conflict management? First of all, we measure the visible and invisible cost of conflict and non-cooperation in a company or organisational unit. This process is called ‘conflict audit’. Based on such an audit the subsequent calculations are presented to the Board or the Executive Management of a company. The ‘conflict audit’ indicates the company’s ‘investment’ in conflict and actions to reduce such cost.

Example: Production company with a turnover of app. 10 million Euro per year with 60 employees calculated over a period of three years.

 

Strategy proposed during
‘conflict audit’

Savings in three years in Euro

Reduce quality losses such as bad coordination, lack of efficient communication. The production waste accrued to approx 2% of the total annual turnover of the company. Through improved interfaces in the production process and through enhanced leadership quality loss should come down from currently 2% to 1% in the third year. (1% = Euro 100’000). Reduction in year 1: 0.33%, in year 2: 0.66%, year 3: 1% 200’000
Speed up and improve coordination and cooperation among employees. 
It is planned to reduce cooperation losses in the teams, between the teams and between the directors and the teams, within three years for totally 1 hour per working day and worker.
It is expected that by applying these measures every employee will have gained 1 hour per day after two years. This means 60 working hours per day or 300 hours per week for the whole company. If the cost of a working hour is estimated at Euro 50 per hour, this means Euro 15’000 weekly, or annually Euro 705’000 (47 working weeks). Reduction in year 1: 0.33hrs, in year 2: 0.66hrs, year 3: 1 hr 1’410’000
Achieve managers’ and leaders’ time savings. The two leaders are heavily involved in conflict and crisis management. The aim is to reduce this time immediately at the rate of 4 hrs. per week or aprox 10% of the working time 4 hrs. per week for each of two managers during 52 weeks in three years = 4 hrs. x 2 persons x 52 weeks = 416 hrs. annually@ Euro 200 or 1248 hrs. in 3 years 249’600
Improved leadership and management competence: Clear and binding instructions; appreciation for the performance of the workforce and the potential; early detection and intervention in the case of conflict or bullying Prevent 5 unnecessary resignations. Cost per such resignation, including search and integration Euro 70’00 . For 5 persons = Euro 350’000x.Avert 4 unnecessary crisis interventions (4 x Euro 8’000 = Euro 32’000). 382’000
Estimated savings in three years due to better leadership, cooperation and team management 2’241’600
Cost for consultancy and building people’s skills, including time spent by employees for development and training   450’000
Savings in three years 1’791’600

Through our leadership development, conflict management, team building, and communication training, an estimated amount of Euro 2’241’600 can be saved. In order to produce these savings, an estimated amount of Euro 450’000 has to be invested for trainers, consultants, training facilities, and employee time. In other words: For every one Euro invested, the company can save four Euros.