One of the biggest things we’ve learned from the pandemic and the other challenges of the past few years, is that we all need to lead today. Leadership skills are critical at every level. But, in too many organizations, leadership development programs are still reserved primarily for employees already identified as “HiPo’s” – high-potential and high-performing employees. In other words, the employees who receive the most leadership development are the very ones who need it the least because there performance is already strong. In an influential article for Harvard Business Review, professors Navio Kwok and Winny Shen call this phenomenon “the leadership development paradox.” In the long-term, this approach affects the quality, diversity, and size of an organization’s pipeline of leaders. But we can address it by providing leadership training opportunities to a wider array of employees.
How Strong Is Your Leadership Pipeline?
When a company decides whether to invest in leadership development for an employee, they directly shape that employee’s career path. Employees who receive leadership development are more likely to be promoted to senior level, high-exposure roles. Meanwhile, employees outside of that high-potential group are more likely to stay at their current performance level or even get worse — because they’re getting less access to the leadership development programs that could help them improve as well as opportunities for career advancement.
When only a select group of employees gets greater access to leadership development, organizations miss out on what others could potentially contribute. Although budget is a key consideration, can we afford to do this? Even small improvements across a broader population can have a big impact on overall company performance and cultivate a sustainable culture of growth and innovation.
According to DDI’s Global Leadership Forecast 2023, CEOs are already worried about how to develop the next generation of leaders — and only 12% of companies are confident that they have a strong bench of leaders who are prepared to step into key roles.
As a firm with a niche focused on developing women leaders, we’re also concerned about how the leadership development paradox may disproportionately affect women. Ambition has increased, as shown in the McKinsey/LeanIn.org Women in the Workplace 2023 report, which found that eight out of 10 women want to get promoted. The numbers are even higher for women younger than 30 and women of color (93% and 88%, respectively).
However, the report also found that women are still under-represented at every level of leadership. They’re less likely to get that first promotion to manager than men are. (And the gap is even bigger for women of color.) With fewer women than men rising through the ranks, it only makes sense that fewer women reach the highest levels of leadership.
How to Develop More Leaders
To fix the leadership pipeline, we must offer leadership development more broadly — but in a way that satisfies each individual’s needs while addressing tight schedules and company budgets.
We embedded those principles into our New Lens® learning platform, added the same expertise we’ve used to help 75% of our clients get promoted, and packaged it all into bite-sized lessons and collaborative learning that employees can easily fit into their days.
Beyond considering something like New Lens, use these strategies to strengthen your leadership pipeline:
Rethink how you identify potential leaders. DDI recommends using digital assessments to identify hidden talent. They explain that “leaders may not recognize potential if it doesn’t align with what leadership has traditionally looked like in the organization,” adding that in remote or hybrid environments, some leadership skills may be overlooked.
Tap into your internal expertise. How are you making the most of the vast knowledge your people can share with each other? Mentorship and sponsorship are surprisingly underused tools for cultivating future leaders. Also look for opportunities to use peer-to-peer cross-training to build relationships and leadership skills.
Make key experiences more accessible. It’s common for organizations to have roles that are seen as a springboard to higher leadership positions. Is your organization inadvertently funneling only certain groups to these jobs? For example, are women pushed toward marketing and HR vs. operations?
Your organization can unlock limitless potential by investing in more leadership development opportunities for your employees. We live and breathe these issues with our Fortune 500 clients. So, as you consider your company’s short and long-term development needs, schedule a call with us. We would be happy to discuss how you can strengthen your pipeline of talent by unleashing more employees’ potential.