Why leadership development programs fail

Christian Muntean Sept. 5, 2024

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Most leadership development programs aren't worth a bucket of warm spit. Actually, they might be worse than that. Or possibly better. In fact, investing in leadership development could be the best thing you'll ever do. Who knows?

The fact is, almost no one knows if these programs work: Fewer than 20% of companies bother to check if their investment in leadership development produces a result. Strange, given that the quality of your leadership is the single most important investment your company can make. Nothing can drive or kill performance quite like a leader.

Four major issues sucking the value from leadership development programs

Chances are high that knowledge about leadership isn't the main issue. It's application. It's the fact that how someone leads is always an extension of who they are as a person. Leadership programs rarely address this. As a result, few leaders take personal development seriously.

Here are four big reasons:

Too much firehose, not enough absorption: Leadership programs notoriously dump all the information they can think of on participants. There seems to be an assumption that you can just upload 40 hours of information, check the box, print the certificate, and—done!—you have a confident, competent leader. Good luck with that.

Too academic, not enough application: I think research around leadership is fascinating. But you have to know when and how, or even if, to apply it. That's a level of nuance that is rarely introduced in most programs. It leads to overwhelm, confusion, or settling on pet theories.

What's good for the gander might not be good for the goose:A friend was a senior military officer. He had tons of leadership training and was a good officer. But he was frustrated trying to lead a civilian non-profit project entirely staffed by volunteer artists. He knew how to apply relevant leadership principles in a military context. But not in this new context.

Leadership gives people 'the feels':Leadership generates emotions that most leaders don't expect and aren't prepared for. (I know you don't feel—but you know your colleague sure does.) Let's pick one cluster of feelings collectively referred to as Imposter Syndrome. Many studies indicate between 70% and 80% of executives have at one point or currently wrestle with this. One study suggests that 59% of these leaders contemplated quitting because of it. Think about that for a second. 59%. When was the last time you've heard anyone address this in your workplace?

Now, let's circle back to the main issue at hand.

A primary reason leadership development programs fail is that theydon't know what they are trying to build.

We all want good leaders, not bad ones. But, man, that is good/bad a lousy metric. How do you recognize a good leader? What makes someone a bad one? How do you develop leaders if you don't know what you're aiming for? (Or what you are trying to avoid?)

You can't.

Here's what clear indicators should look like. I'm adapting this from work I'm doing with a real-life client:

What the client wants:

• A strong leadership culture that supports rapid company growth
• Leaders who are aligned but able to work with minimal management.

Indicators of success:

• Leaders are increasingly able to work autonomously: Measured by tracking the number and complexity of decisions made independently by leaders without seeking higher approval. This can often be measured through existing decision logs or approval workflows.
• Leaders know how to grow the individuals on their team:Measured by the rate at which team members are promoted or move into more advanced roles or responsibilities.
• Leaders know how to get the best out of their teams: Measured by project completion and profitability rates tracked through existing project management systems.

How the client expects to benefit:

• Grow an additional $10M+ in same-year revenue (20% growth).
• Increase efficiency, which will increase profit margins.
• Easier staffing: Able to attract, build, and retain the best employees.
• Improved safety leadership, reducing accidents and injuries, lowering insurance costs and downtime.
• A culture of ownership and mentorship encourages creative thinking and problem-solving, leading to innovative solutions.
• Leaders who take ownership of client relationships ensure that customers are satisfied with the construction process and the end result, leading to repeat business and referrals.

Why this program works: They've defined what 'good' leadership looks like

That has everything to do with how I've designed their leadership development program. Incidentally, I've only delivered half of it and they are already seeing results.

How to make your leadership development investments worth it

1. Define—specifically—what your investment should accomplish.
2. Determine how you'll recognize success or an ROI.
3. Invest accordingly into anything that will build and produce those outcomes.

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Christian Muntean is a seasoned expert in fostering business growth and profitability. With a Master's degree in Organizational Leadership and certifications as a Master Coach, Certified Exit Planning Advisor (CEPA), and International Mergers & Acquisitions Expert (IM&A), he guides entrepreneurial leaders through growth, succession planning, and exit strategies. He is an accomplished author of three books, including Train to Lead. Christian resides in Anchorage, Alaska, with his family.  Learn More »

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