Leadership Learning: The Real Costs Of Not Doing Leadership Training

1427240658747A report from the Said Business School at Oxford University in the UK found that British businesses and public sector organizations are wasting almost $140 million on executive education programs that are poorly conceived and delivered.

The study went on to say that 35 percent of HR directors and 21 percent of other executives believed that their current training and development programs were meeting corporate strategic objectives. The bulk of the money was being spent on individually developed courses for senior executives.

If those businesses want to quit wasting all that money on bad management training, I know where they can get their money’s worth. And it doesn’t have anything to do with having more academics design special courses, events, and outings for senior staff.

Here’s a novel idea folks. Why not spend your money on leadership training and development down in the trenches, where it will really do some good?

Most companies don’t do nearly enough of that. In 2003, just 7 percent of training budgets in the US was spent on first line leaders and most of that was for learning administrivia and for prophylactic HR.

The fact is that front line leaders don’t get much training at all and precious little of it is actually about leadership skills. Maybe that’s because companies think they’re saving money by not investing in front line leader training.

True, there’s no budget line item absorbing funds that might be spent on the executive dining room, or art for the CEO’s office. But there are what economists call “opportunity costs,” the costs of not training front line leaders.

There’s the opportunity cost of lost productivity. Good frontline leadership builds both morale and profitability.

There’s the opportunity cost of lost leadership. Great companies develop most of their own leaders. If you have to go outside for leadership you incur recruitment costs and transition costs.

Finally, there’s the cost of lawsuits. Good frontline leadership creates organizations where lawsuits are less likely. And, if the company is sued over a supervision issue, the defense will be easier if the leaders have been doing their jobs.

How about your company? Do you develop your own leaders? Do you help them develop the skills they need to improve morale and productivity and avoid lawsuits? Think about that the next time you consider the training budget.

About the Author

Lena Benjamin

Lena's focus is to empower business success to achieve action and progress as a consultant, coach and business speaker to SMEs and corporates. Her montage of multifaceted expertise involves a combination of over 20 years within corporations, charities, real estate, startups, and eCommerce. Plus two London UK university degrees, a BA Hons in Business Studies in 1999 and a Master of Business Administration (MBA) in 2010. Get in touch about business opportunities and collaborations particularly B2B firms and service providers based anywhere in the world. Get in touch via lenabenjamin.com/contact.

With over 10 years of residential landlord, estate agency and built environment experience, Lena is Property Consultant at Benjamin Property Services, offering Off-Market Property Search, Area Tours and Refurbishments in the London and Kent areas. For entrepreneurs, executives and enterprises in the USA, UK, UAE, Africa, Asia or other parts of the world for relocation or investment. There's even an online club where you can join to access property wealth resources, deals and service discounts. Complete the process online to commission our services at benjaminpropertyservices.co.uk.

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