Leadership Learning: The Real Costs Of Not Doing Leadership Training

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

The study went on to say that 35 per cent of HR directors and 21 % of other executives believed that their present training and development programs were meeting corporate strategic goals. The bulk of the money was being allocated to individually developed courses for senior executives.

If those businesses want to stop squandering all that cash on bad management training, I know where they are able to get their money's worth. And yes it does not 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 invest your money on leadership training and development down in the trenches, where it will truly do some good?

Almost all businesses do not do nearly sufficient of that. In 2003, just 7 % of training budgets in the US had been spent on first line leaders and most of that was for learning administrivia and for prophylactic HR.

The reality is the fact that front line leaders don't get much training at all and precious small of it is actually about leadership skills. Maybe that is because companies think they are saving cash 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 you will find what economists call "opportunity costs," the costs of not training front line leaders.

There's the opportunity cost of lost productivity. Great frontline leadership develops 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 get recruitment costs and transition expenses.

Lastly, there's the price of lawsuits. Good frontline leadership creates organizations where lawsuits are much less likely. And, ff the business is sued over a supervision issue, defense will be simpler if the leaders have been performing their jobs.

How about your company? Do you develop your own leaders? Do you help them develop the skills they require to improve morale and productivity and steer clear of lawsuits? Think about that the next time you think about the training budget.