Leadership Impact and Risk Assessment
Paying more for leadership but getting less?
Internationally, fewer than one in five board members are satisfied that they have adequately addressed the challenges of leadership contribution and value at board level. Despite this, leadership investments continue to sky-rocket. Specifically, the investment in the larger leadership group within an organisation remains a poor-performing corporate asset, yet has increased significantly year on year and constitutes around 45-75% of operating budgets. Sadly for more than a decade, leadership performance and value has continued to decline globally above inflation rates. In fact, the investment in the larger leadership group remains one of the worst performing corporate investments and the fastest growing strategic risk.
This does not suggest poor leaders, but rather that there are a number of prohibiting organisational factors, incentives, disincentives or leadership behaviours that directly translate into lost growth opportunities, which cause poor and diminishing leadership impact and value.
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