Leadership Training Boosts Business Performance, Study Shows

JAKARTA -

Leadership training is becoming a key solution for businesses looking to perform better and stay ahead, according to recent research and industry trends.

A 2023 SHRM survey found 65% of HR professionals see leadership skills gaps as a major barrier for their organisation. This gap is forcing many companies to invest in training.

Leadership training programs focus on a range of key skills. These are decision making, communication, team management, adaptability and strategic thinking. By developing these skills organisations want to create more effective leaders who can navigate the complexity of today’s business world.

Kenneth Kwan, CEO of Deep Impact Pte Ltd, a leadership development company, stresses the need for customised training. “We identify the specific leadership gaps and design programs that address the unique challenges each organisation faces,” he said.

Investment in leadership training seems to pay off. A 2024 Harvard Business Review study found organisations with strong leadership development saw 25% higher productivity and 20% better employee retention. 

As businesses face new challenges the demand for good leaders is growing. Training programs are evolving to meet this need, with new technologies like virtual reality and AI-powered learning.

But not all leadership training programs are created equal. Companies should do their due diligence before investing. When selecting a leadership training program you should consider several things. These are customisation options, practical hands-on learning, ongoing support and coaching, measurable outcomes and alignment to company values and objectives. By considering these factors you can choose programs that fit your organisation’s needs and goals.

Despite the benefits, some critics argue leadership training is often ineffective. They point to studies that show many participants don’t apply what they’ve learned in real life.

Kwan counters this: “For training to be effective it needs to be part of a broader organisational strategy. This includes regular opportunities to practice new skills, mentoring programs and a culture that values continuous learning and growth.”

A comprehensive leadership development strategy might include several key components. Organisations should provide regular opportunities for employees to practice their new skills. Implementing mentoring programs can offer ongoing support and guidance. Creating clear career paths for emerging leaders can motivate and retain talent. But most importantly, creating a culture that values continuous learning and growth can be the environment where leadership skills can flourish.

As the business environment changes, leadership is becoming more critical. Companies that invest well in leadership development may be better prepared for the future.

Leadership training is about more than just individual skills development. It’s about creating a leadership culture across the organisation. For companies looking to stay ahead in a changing business world, leadership training could be a good investment.

As with any business strategy, success will depend on planning, implementation and ongoing evaluation. Companies should consider their needs and goals before deciding to invest in leadership training programs.

The future of leadership training looks good with a move towards more immersive and experiential learning. As businesses realise the value of good leadership, investment in these programs will grow.

In a complex and competitive business environment, leadership can be a key differentiator. Not a silver bullet, but well designed and implemented leadership training programs can be a key part of developing the skills and mindsets for success in today’s business world.