Prepared by the Visibility Committee of the Society for Industrial and Organizational Psychology.
440 E Poe Rd, Suite 101 Bowling Green, OH 43402 Copyright October 2012 Society for Industrial and
Organizational Psychology, Inc. Citation: Society for Industrial and Organizational Psychology, Inc.
(2012).
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development requires
deliberate practice.
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Practitioners must
recognize the importance
of ensuring their leaders
are capable and ready to
engage in developmental
activities, and that such
activities match the
abilities and potential of
leaders to ensure the
most successful outcomes
out of this committed,
long-term investment.
One study assessing successful organizations that were actively engaged in leadership
development found the average investment in those activities was $500,000 and the
average ROI was $1,000,000. Returns manifested in improved global competitiveness,
profitability, sales, and shareholder value, which illustrates the extensive benefits and
potential spillover effect of investing in leadership development1. Yet research shows
the impact of a leader is not fully realized in the organization for about three years7, so
patience is necessary when evaluating and realizing the full effects of leadership
development investments.
The use of structured training programs, experiential learning, or a combination of the
two can be successful tools for leadership development; however, there is some debate
over which method produces the most value12. Regardless, setting long-term
development goals directs practices that harness leadership aligned with organizational
strategies and can help maximize the value of whichever technique an organization
chooses. Assessing the effectiveness of development programs, providing relevant,
useful, and task-focused feedback, and understanding how others in the organization
react to leaders can provide crucial information about leaders long-term growth and
should be part of any leadership development initiative. Practitioners must recognize the
importance of ensuring their leaders are capable and ready to engage in
developmental activities, and that such activities match the abilities and potential of
leaders to ensure the most successful outcomes out of this committed, long-term
investment.
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12. McCall, M.W. (2010). Recasting leadership development. Industrial and Organizational
Psychology, 3, 3-19.
13. McCall, M. W., Jr., Lombardo, M.M., & Morrison, A.M. (1988). The lessons of experience:
How successful executives develop on the job. Lexington, MA: Lexington Books.
14. OLeonard, K. (2008). The corporate learning factbook 2008: Statistics, benchmarks, and
analysis of the U.S. corporate training market. Oakland, CA: Bersin & Associates.
15. Peterson (2002). Management development: Coaching and mentoring programs. In K.
Kraiger, (Ed.), Creating, implementing, and managing effective training and development
(pp. 160-191). San Francisco, CA: Jossey-Bass.
16. Summers, B., Williamson, T., & Read, D. (2004). Does method of acquisition affect the
quality of expert judgment? A comparison of education with on-the-job learning. Journal
of Occupational & Organizational Psychology, 77, 237-258.
17. Van Velsor, E., & McCauley, C.D. (2004). Our view of leadership development. In C.D.
McCauley & E. Van Velsor (Eds.), The Center for Creative Leadership handbook of
leadership development (2nd ed., pp. 204-233). San Francisco, CA: Jossey-Bass.
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