The Seventh Annual Hay Group Study finds leadership boosts the bottom line. Best companies outperform the S&P 500 almost 2x over 10 years. The study was quite comprehensive and the key findings worth reading. We will focus on a small subset in this post.
According to the study, “The Best Companies for Leadership distinguish themselves by their ability to develop well-rounded, multifaceted talent within their organizations,” said Susan Snyder, senior principal in Hay Group’s Leadership and Talent practice and co-leader of the Best Companies for Leadership Study. “As innovation increasingly becomes a key differentiator for companies worldwide, best-in-class organizations are doing more to train and develop their people, celebrate diversity, reward collaboration and establish an environment that fosters innovation, creating a competitive advantage in the marketplace.”
In fact, the Best Companies for Leadership consistently outperform their peers. Over a 10 year period, the Top 20 companies produced a 5.39 percent shareholder return, compared to a 2.92 percent shareholder return generated by the S&P 500.
You have heard this before and here is another study that confirms what you either knew or imagined to be true. So, what do you do about it? You may not work for one of the global top 20 best companies and yet you want to improve how you lead. What can you do?
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- Buy the Innovative Leadership Fieldbook (I know blatant self-promotion) or upcoming workbooks (the series will create the pathway to develop innovative leadership from individual contributor through executive). These books provide a comprehensive approach and worksheets that are self-paced and cost effective.
- Form a “book club” for leadership development – create a group of colleagues and peers who have a shared desire to improve. It can be people within your company or outside.
- Develop practices or routines that support your ability to refine how you lead and sustain the changes long term.
- Teach others what you are learning- by teaching it you will learn more.
- Create a culture that supports the changes you are making – not just for yourself but for as much of the organization as you can influence.
- Evaluate the performance management systems within your purview and ensure they support the leadership changes you are making in yourself and encouraging others to make.
- Take a class that helps you build on your strength or fill a gap.
- Work with a coach.
There are lots of barriers that get in our way and yet, most of us have the ability to take some small action every day to move forward and become a much stronger leader. What can you do today? tomorrow? next week? What can you do to remove the barriers to taking small steps?
Are you considering improving your ability to be an innovative leader? If so, take this free on-line Innovative Leadership assessment to determine where you fall on the innovative leadership scale. If you are looking for tools to help develop you ability to be an innovative leader, check out the Innovative Leadership Fieldbook. Metcalf & Associates offers assessments, coaching and workshops to help you and your leadership team become more innovative.
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