How does leadership development add value?

Wed, 09/14/2016 - 09:00

By RICS Leadership

It is well known that effective leaders are integral to the success of any business; organisations need strong leaders to drive them to success. Through our research, it is clear that the Built Environment is no different from any other industry. However, many people still question the need to invest in the development of their managers. If they are doing well in their role, what difference would it make to the organisation to enrol them on leadership training? Would it really add value to the organisation?  

A paper written by The Ken Blanchard Companies which is titled the ‘Leadership Profit Chain’ states that earlier research showed that there is a Service-Profit Chain, a Value-Profit Chain, and an Employee-Customer-Profit Chain. Blanchard® research indicates that there is also a Leadership-Profit Chain. The data clearly shows that strategic leadership as well as organisational leadership capacity are critical to overall organisational success. The report goes on to say: 

“It’s no secret that leadership capacity is critical to organizational success, but little research has been compiled about the long-term impact of leadership on organizational productivity and profitability. In response, The Ken Blanchard Companies® embarked on a study to answer some important questions about leadership and its role in supporting the overall success of an organization.

Our theory is that the employee-customer relationship is dependent on the strategic and operational leadership demonstrated within the organization. As a result, leadership is the crux of the Leadership-Profit Chain. The integrity and effectiveness of leadership and management practices is an indirect driver of organizational success. The maximum impact on an organization’s bottom line can be expected when both strategic leadership and organizational management practices are aligned, thus supporting a purpose that is visible to both customers and employees alike.

Creating an organization that is successful and effective is an inside-out proposition. The quality of the culture, the quality of management practices, and the alignment of these practices to key strategic initiatives rests with leadership. Leaders who hold people accountable and ensure effective, productive behaviours in their people can be the most effective influencers and drivers of organizational results. Equally important is a leader’s ability to affect the mood, attitude, and engagement of employees and the culture of the organization overall through a specific chain of events that are implicitly linked.

The key to organizational vitality is creating an environment that allows employees to win and be passionate about what they do. By taking care of employees, leaders establish an environment in which the employees take care of the customers at a level that causes the customer to want to return year after year. When managers focus their attention and emphasis only on organizational indictors of vitality such as profit, they have their eye on the scoreboard and not on the ball. Profit is a by-product of serving the customer, which can only be achieved by serving the employee.”

Leadership Profit Chain © 2009 The Ken Blanchard Companies.


Here at RICS, we are able to deliver the specific and progressive leadership development required within our profession. Click the link to see how The International Certificate in Leadership for Property can deliver this unrivalled and transformative combination of technical and leadership to the market.   

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