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When is comes to performance effective leadership matters

Today’s leaders make decisions in an increasingly unpredictable business environment. In a recent IBM study of 1,500 CEOs worldwide, more than 60 percent believed that their businesses today were more volatile, uncertain, and complex (IBM Global Business Services, 2010). It’s no wonder that the quality of leadership can make or break the sustainability of any organization.

Development Dimensions International (DDI) has recently published their Global Leadership Forecast 2011 with responses from 1,897 human resources professionals and 12,423 leaders from 74 countries.

The difference between the impact that a top-performing leader and an average leader has on an organization is at least 50 percent, according to leaders participating in Global Leadership Forecast 2011.

The research demonstrated that organizations with the highest quality leaders were 13 times more likely to outperform their competition in key bottom-line metrics such as financial performance, quality of products and services, employee engagement, and customer satisfaction.

Specifically, when leaders reported their organization’s current leadership quality as poor, only 6 percent of them were in organizations that outperformed their competition. Compare that with those who rated their organization’s leadership quality as excellent – 78 percent were in organizations that outperformed their competition in bottom-line metrics.

For more information on this study see “Time for a leadership revolution” (pdf)

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About the author
Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement and development and change management. International experience from management positions in Denmark, Germany and Switzerland

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About the author
Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement and development and change management. International experience from management positions in Denmark, Germany and Switzerland

View full profile

One comment on “When is comes to performance effective leadership matters

August 13, 2012 6:20 pm

edebear

In today’s business climate it is increasingly difficult to sustain client loyalty. Because of this effective leadership not only matters, it’s critical to the survival and growth potential of every organization. Effective leadership sees how bureaucracy can strangle understanding, process and action. Really effective leadership reaches out to its people, especially so in the most challenging times, to understand how they see, feel and are reacting to their individual and collective work. Perfomance can be supported and bolstered…be most effective… when leadership personally reaches out to its client base to make sure its needs are being met and exceeded (and getting an understanding of any negative issues that may exist). Effective leadership starts with (and continues with) clear, concise and responsive communications, internally and externally. Great leaders are generally great relationship builders.

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