The book “The 2020 Workplace” by Karie Willyerd and Jeanne Meister discusses a future where organizational teams are hired intact into new organizations and where you are hired into an organization based upon your social capital. So it was with interest when I got a response from last week’s blog on Leadership Capability Portfolio Management from one of my LinkedIn connections…Suranjan Benjamin Soans. He asked the following questions, which were intriguing:
“Keith, do you think sometime in the future, investors are going to have access to Leadership Capability Portfolio Management of companies? Or, is it better if that is treated as a company’s secret? Do investment bankers take a good look at this (LCPM) before an IPO is issued?”
It’s possible that understanding and measuring the overall organizational leadership capability as a critical component to an organization’s financial rating in the future. Why? Let’s look at some examples of why leadership capability already matters in organizations…
– Leaders impact the organization through factors such as employee retention and employee engagement. Both critical to organizational performance and financial performance.
– The 2010 IBM Global CEO Study indicates that CEOs continue to see the relevance of having a leadership capability that are creative, act under uncertainty, drive innovation and organizational performance.
While I study the impact of leadership and leadership development on organizational performance at the UPenn Chief Learning Officer (CLO) program, I know that before I invest in companies, I want to know what the company’s leadership capability is. Companies leverage their position on such lists as Leadership Excellence’s top leadership development programs and Fortune Magazines Best Places to Work when advantageous.
While award winning leadership development programs are good publicity, I reference Dr. Bradley Hall’s quote from his book “The New Human Capital Strategy.” There he states that “Success is not world-class leadership development but best-in-class industry leaders.” If you believe that…we need an ability to measure the best-in-class industry leaders part of Dr. Hall’s statement.
With this in mind, wouldn’t you want to know whether an organization’s leadership capability is having the intended impact on organizational performance…especially before you invest in it?
DNA of Human Capital: http://dna-of-humancapital.blogspot.com/