Leadership. Approaches - Development - Trends
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Organizations typically organize career paths along a linear model that features an individual moving up a vertical hierarchy from level to level, all within the same role.
How to Build Leadership Bench Strength - Smarter With Gartner
This leaves successors narrowly prepared for one future role. A better option is to identify and develop future leaders for a few different roles and contexts. Preparing successors for more than one senior leader role has twice the impact on leadership bench strength than preparing them for only one role or for any leadership position. By regularly evaluating and rebalancing the leadership team, individuals can be reassigned based on complementary strengths, not just role fit.
This article is based on insights that are part of an in-depth collection of research, tools, templates and advice available to Gartner clients. Gartner for HR clients can read more about improving leadership bench strength and trends and priorities for HR.
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Leadership. Approaches - Development - Trends
If you would like to contact us about accessing this content, click the button and fill out the form. Contact us. The paper demonstrates the importance of business acumen in leadership-development approaches and contends that business acumen will have an increasing impact on leadership development and HR agendas.
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Research into this relationship resulted in the creation of the Perth Leadership Outcome Model , which links financial outcomes to individual leadership traits. In a study that interviewed 55 global business leaders, business acumen was cited as the most critical competency area for global leaders. In their work, The Leadership Pipeline , Ram Charan , Stephen Drotter, and James Noel study the process and criteria for selecting a group manager, and suggest that the process and criteria are similar for selecting a CEO. According to them an obvious criterium for selecting a leader is well-developed business acumen.
Business acumen: a critical concern of modern leadership development
An organization full of high business acumen individuals can expect to see leaders with a heightened perspective that translates into an ability to inspire and excite the organization to achieve its potential. Programs designed to improve an individual or group's business acumen have supported the recognition of the concept as a significant topic in the corporate world.
They also suggest that the learning process ranges widely, from structured internal company training programs, to an individual's self-chosen moves from one position to another. The combination of these reports and surveys indicate that business acumen is a learned skill of increasing importance within the corporate world. There are different types of business acumen development programs available:. A business simulation is another corporate development tool used to increase business acumen.
Several companies offer business simulations as a way to educate mid-level managers and non-financial leaders within their organization on cash flow and financial-decision-making processes. Their forms can vary from computer simulations to boardgame-style simulations. The advent of personal assessments for business acumen is based in the emerging theories of behavioral finance and attempts to correlate innate personality traits with positive financial outcomes.
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