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Why Is Strategic Planning Important?

Above view of team creating a strategic plan

  • 06 Oct 2020

Do you know what your organization’s strategy is? How much time do you dedicate to developing that strategy each month?

If your answers are on the low side, you’re not alone. According to research from Bridges Business Consultancy , 48 percent of leaders spend less than one day per month discussing strategy.

It’s no wonder, then, that 48 percent of all organizations fail to meet at least half of their strategic targets. Before an organization can reap the rewards of its business strategy, planning must take place to ensure its strategy remains agile and executable .

Here’s a look at what strategic planning is and how it can benefit your organization.

Access your free e-book today.

What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees on the organization’s goals, and ensure those goals are backed by data and sound reasoning.

It’s important to highlight that strategic planning is an ongoing process—not a one-time meeting. In the online course Disruptive Strategy , Harvard Business School Professor Clayton Christensen notes that in a study of HBS graduates who started businesses, 93 percent of those with successful strategies evolved and pivoted away from their original strategic plans.

“Most people think of strategy as an event, but that’s not the way the world works,” Christensen says. “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry.”

Strategic planning requires time, effort, and continual reassessment. Given the proper attention, it can set your business on the right track. Here are three benefits of strategic planning.

Related: 4 Ways to Develop Your Strategic Thinking Skills

Benefits of Strategic Planning

1. create one, forward-focused vision.

Strategy touches every employee and serves as an actionable way to reach your company’s goals.

One significant benefit of strategic planning is that it creates a single, forward-focused vision that can align your company and its shareholders. By making everyone aware of your company’s goals, how and why those goals were chosen, and what they can do to help reach them, you can create an increased sense of responsibility throughout your organization.

This can also have trickle-down effects. For instance, if a manager isn’t clear on your organization’s strategy or the reasoning used to craft it, they could make decisions on a team level that counteract its efforts. With one vision to unite around, everyone at your organization can act with a broader strategy in mind.

2. Draw Attention to Biases and Flaws in Reasoning

The decisions you make come with inherent bias. Taking part in the strategic planning process forces you to examine and explain why you’re making each decision and back it up with data, projections, or case studies, thus combatting your cognitive biases.

A few examples of cognitive biases are:

  • The recency effect: The tendency to select the option presented most recently because it’s fresh in your mind
  • Occam’s razor bias: The tendency to assume the most obvious decision to be the best decision
  • Inertia bias: The tendency to select options that allow you to think, feel, and act in familiar ways

One cognitive bias that may be more difficult to catch in the act is confirmation bias . When seeking to validate a particular viewpoint, it's the tendency to only pay attention to information that supports that viewpoint.

If you’re crafting a strategic plan for your organization and know which strategy you prefer, enlist others with differing views and opinions to help look for information that either proves or disproves the idea.

Combating biases in strategic decision-making requires effort and dedication from your entire team, and it can make your organization’s strategy that much stronger.

Related: 3 Group Decision-Making Techniques for Success

3. Track Progress Based on Strategic Goals

Having a strategic plan in place can enable you to track progress toward goals. When each department and team understands your company’s larger strategy, their progress can directly impact its success, creating a top-down approach to tracking key performance indicators (KPIs) .

By planning your company’s strategy and defining its goals, KPIs can be determined at the organizational level. These goals can then be extended to business units, departments, teams, and individuals. This ensures that every level of your organization is aligned and can positively impact your business’s KPIs and performance.

It’s important to remember that even though your strategy might be far-reaching and structured, it must remain agile. As Christensen asserts in Disruptive Strategy , a business’s strategy needs to evolve with the challenges and opportunities it encounters. Be prepared to pivot your KPIs as goals shift and communicate the reasons for change to your organization.

Which HBS Online Strategy Course is Right for You? | Download Your Free Flowchart

Improve Your Strategic Planning Skills

Strategic planning can benefit your organization’s vision, execution, and progress toward goals. If strategic planning is a skill you’d like to improve, online courses can provide the knowledge and techniques needed to lead your team and organization.

Strategy courses can range from primers on key concepts (such as Economics for Managers ), to deep-dives on strategy frameworks (such as Disruptive Strategy ), to coursework designed to help you strategize for a specific organizational goal (such as Sustainable Business Strategy ).

Learning how to craft an effective, compelling strategic plan can enable you to not only invest in your career but provide lasting value to your organization.

Do you want to formulate winning strategies for your organization? Explore our portfolio of online strategy courses and download the free flowchart to determine which is the best fit for you and your goals.

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Ideas and insights from Harvard Business Publishing Corporate Learning

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Strategic Thinking: Because Good Ideas Can Come From Anywhere

strategic planning leadership and organizational development

As part of our update to the Harvard ManageMentor Strategic Thinking topic, we asked Mason Weintraub, Director of Digital Engagement at Oxfam America, about the importance of strategic thinking. Here’s what Mason had to say:

I often think I’m expected to have all the answers about what to do with digital strategy. But the reality is that I lead a very talented team, and one of the ideas that we have tried to engender on the team is that good ideas can come from anywhere.

“Good ideas can come from anywhere.” Most of us recognize the wisdom embedded in that statement, yet we still see strategy as the realm of our organization’s senior leaders. That may be because of our tendency to equate strategic thinking with strategic planning. Although these practices are related and equally necessary for organizational success, they are actually quite distinct.

Strategic planning vs. strategic thinking

In strategic planning, leaders gather data and decide on the path the organization will take to achieve its goals. With strategic thinking, employees at all levels and in all functions continually scan for new ways to contribute to the organization’s success. They apply those insights as they carry out organizational priorities and provide input to the overall strategy. In this way, strategic thinking is part of everyone’s job – whatever their role or level of responsibility.

Why is this ability to think strategically especially important now? Today’s organizations are more dispersed and less hierarchical than ever before. With the pace of change continuing to rise, it’s no longer feasible for people to wait for “orders from above.” All employees must keep an eye on the future, not just react to what’s happening in the present. They need to look beyond their functional areas to become aware of the bigger context in which they operate. And they have to be agile learners who identify opportunities by challenging their own and their team’s assumptions about how things work in their organization and industry.

Becoming a strategic thinker

With strategic thinking taking on even greater importance in organizations, we’ve made key updates to the Harvard ManageMentor Strategic Thinking topic. The content we’ve added is geared to helping people boost their productivity and effectiveness by making strategic thinking a habit, and includes practical ways that enable them to do so.

One practice is simply making the time to think strategically – something that’s not always easy in today’s fast-paced business settings. Another involves inviting dissent on your team. To make strategic decisions, you need people on all sides of an issue to speak their minds. By letting team members know that speaking up is an important part of their jobs, you free them to provide important input.

Other strategic thinking practices are useful for training yourself to see opportunities and threats well before they happen. For example, most of us are comfortable using convergent thinking – analysis, logic, and reasoning – to come up with the “best” option from a set of choices. We tend to be less adept at divergent thinking, which involves generating lots of ideas with the goal of finding innovative solutions. This isn’t an either-or process: When you first diverge as a team to generate ideas and then converge on a path forward, you improve your ability to design and implement strategic actions.

Don’t let the future surprise you

The future will undoubtedly look a lot different from today. No one can predict tomorrow, but by identifying different scenarios, you and members of your team stretch your thinking about what opportunities and threats might emerge, how they might impact your organization, and what you can do about them. You learn to enact truly meaningful change rather than make incremental improvements. And it all begins with strategic thinking.

How do you foster strategic thinking throughout your organization?

Janice Molloy is a content researcher with Harvard Business Publishing Corporate Learning. Email her at  [email protected] . 

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Enhance your ability to creatively problem-solve for the demands of working in ‘the new normal'.

What you'll learn.

Senior leaders face an unprecedented number of challenges in today’s rapidly-changing business environment, from an evolving workforce to complex strategic issues. To succeed in this dynamic business environment, strategic leadership involves asking better questions, leveraging a diverse workforce, and addressing the complex problems our organizations face in new ways.

During this interactive 3-day program, you will build upon your proven leadership skills with new insights, frameworks and tools to inspire yourself and better lead your team and organization. Reflective exercises, a leadership assessment instrument (Hogan), application activities, and case studies will help you work through modern-day dilemmas and solve problems using both critical and creative thinking. Small and large group discussions will focus on addressing the paradoxes of effective leadership at the executive level.

Program Benefits

  • Examine what in organizational leadership is evolving — and what is remaining the same — and develop insight into how to address new and emerging senior leadership challenges
  • Understand the multipliers and diminishers of effective leadership, and how to evolve as senior leaders
  • Build and sustain greater levels of motivation and trust through more strategic leadership
  • Earn a Certificate of Participation from the Harvard Division of Continuing Education

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  • Addressing the tradeoffs, tensions, and dilemmas we face as senior leaders
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  • What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

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Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

[inline illustration] Strategic plan elements (infographic)

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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Executive Program in Strategy and Organization

Choose a session:, 11 aug 2024 – 23 aug 2024.

Effectively diagnose and solve problems using proven frameworks for executing change in this multidisciplinary strategic management course.

Strategic management. Organizational theory. Personal leadership. The Executive Program in Strategy and Organization focuses on all three. Through pioneering multidisciplinary research from Stanford GSB faculty, you’ll learn how to create a strategy that aligns with your organization, culture, and the environment in which you compete. Experience two academically rigorous weeks packed with lectures, hands-on exercises, case studies, and discussion groups.

At Stanford, we focus on frameworks that help you think in new ways about the strategic challenges and opportunities you face — why some strategies work and others fail. We’ll examine the different aspects and approaches to strategy, while engaging in topics such as economic incentives, game theory, organizational culture, and being a successful leader. Rather than getting a checklist of best practices, you’ll come away with the skills you need to create powerful, winning action plans.

It’s a unique opportunity to learn things you won’t find in the news or business books, and immerse yourself with fellow executives in a learning environment that cultivates an innovative mindset to bring back to your organization.

Key Benefits

​Gain the necessary skills to design and build winning action plans that align with your company culture and sustain competitive advantage.

  • Explore how your organization’s shortcomings and competencies translate into strategic challenges and opportunities.
  • Identify and improve alignment between the competitive environment and your company’s strategy and organizational structure.
  • Use analytical tools to identify and evaluate a business’s strategy and its position in the industry.
  • Develop effective frameworks for executing change-management initiatives.

Who Should Attend?

  • Senior executives with 10 to 15 years of experience
  • Senior functional leaders transitioning into general management
  • Division-level managers who will soon assume corporate-level positions
  • Individuals from larger global organizations — from any industry and any country

At-a-Glance

Application requirements.

Qualified candidates are admitted on a rolling, space-available basis. Early applications are encouraged.

Payment Information

The program fee includes tuition, private accommodations, all meals, and course materials.

Payment is due upon admission. Your space is secured upon receipt of full payment.

Awarded Upon completion

Program overview, learn more about the program.

Explore our carefully designed curriculum, and go deeper with select course descriptions or a sample schedule.

Learn more about our past participants, and find out if the program is right for you.

Faculty Leadership

Explore related programs, the emerging cfo: strategic financial leadership program.

23 Feb 2025 – 19 Apr 2025 In-Person

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29 Apr 2024 – 21 Aug 2024 In-Person and Online

Stanford Executive Program: Be a Leader Who Matters

21 Jun 2024 – 03 Aug 2024 In-Person

Associated program Topics

  • General Management,
  • Negotiation,
  • Organizational Leadership,
  • Personal Leadership,
  • In-Person (Stanford)

Program dates, fees, and faculty subject to change. Consistent with its non-discrimination policy, Stanford’s programs are open to participants regardless of race, color, national or ethnic origin, sex, age, disability, religion, sexual orientation, gender identity or expression, veteran status, marital status or any other characteristic protected by applicable law.

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Design Your Organization to Match Your Strategy

  • Ron Carucci
  • Jarrod Shappell

strategic planning leadership and organizational development

Six strategies to ensure you’re crafting a strategy that your company can actually execute.

An organization is nothing more than a living embodiment of a strategy. That means its “organizational hardware” (i.e., structures, processes, technologies, and governance) and its “organizational software” (i.e., values, norms, culture, leadership, and employee skills and aspirations) must be designed exclusively in the service of a specific strategy. Research suggests that only 10% of organizations are successful at aligning their strategy with their organization design. Some of the problem is a gross misunderstanding of what the word “alignment” actually means in this context. When it comes to executing strategy, alignment means configuring all of the organization’s assets in the service of your stated strategy and making sure there is no confusion about what each part of the organization does to bring it to life. If you’re embarking on executing your company’s strategy, here are six ways to make sure your organization is designed to do it successfully.

Strategy execution is commonly fraught with failure . Having worked with hundreds of organizations, we’ve observed one consistent misstep when leaders attempt to translate strategy into results: the failure to align strategy with the organization’s design.

  • Ron Carucci is co-founder and managing partner at  Navalent , working with CEOs and executives pursuing transformational change. He is the bestselling author of eight books, including To Be Honest and Rising to Power . Connect with him on Linked In at  RonCarucci , and download his free “How Honest is My Team?” assessment.
  • Jarrod Shappell is a partner at Navalent who specializes in helping leaders effectively manage themselves by cultivate deeper leadership and relationship skills.  He has over 15 years of experience coaching leaders in start-up, non-profit, and Fortune 500 organizations.

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Leadership Development and Strategic Planning

The effectiveness of your organization is directly dependent on the effectiveness of your leaders. Strategic planning is vital in clarifying where your organization is going and how you are going to get there. More often than not, leaders are the ones who make strategic plans for the future. Therefore, these two topics and the relationship they share are of vital importance to the success of your company. Leadership development can take a number of different forms, from an executive retreat to one-on-one coaching. Similarly, strategic planning is highly individualized to each organization and cannot be addressed with just one approach. Because of the variety of these topics, COHRE carefully customizes our approach to fit the specific skills and needs of your organization. COHRE facilitates building a strategic plan for an organization by using an approach that has been proven effective and tailoring it to fit the unique characteristics of your company. Specialized leadership development is created by researching a competency model tailored to meet your company's employment niche, then uses individualized assessments for each participating leader. These assessments enable us to customize the leadership development even further, to address particular styles of management or personality type that an individual espouses. All of this is designed to create the highest possible application of material learned to real-life settings.

Do you know what your organization will be doing in a year? How about three or five years? Developing a strategic plan will help you to stay on track for the future. A good plan states a goal, but a great plan also includes action steps on how to reach that goal. Whether you are facing the need for a transformation and improvement or you just want to be sure your organization is heading in the right direction, COHRE can help you to create an effective strategic plan. We will work with your organizational leaders to develop future goals, and then we will help to create more detailed steps that will help you to make progress toward your goal within the desired timeframe. We offer different formats for developing a strategic plan to make it easier for you to meet the demands of your organization, including a leadership retreat or focus groups. The end result of developing a strategic plan for your organization is a detailed blueprint on how to be successful. Leaders steer organizations toward meeting future goals - are they steering your company the right way? Strategic planning and leadership development combine to create the best possible path to your success. A great leader and a great planner will greatly affect your organization's outcomes.

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What Is the Difference Between a Masters in Strategic vs. Organizational Leadership?

What is the difference between a Masters in Strategic vs. Organizational Leadership?

In the search for graduate business degrees, professionals can get lost in the weeds when reading about different leadership specialties. Graduate school applicants have to consider whether to pursue an MA in Strategic Management, similar to degrees such as Master of Business Administration. The choices continue within these degrees with concentrations like strategic leadership and organizational leadership.

The differences between strategic management degrees and organizational leadership degrees include required skills, job prospects, and salaries. An aspiring executive interested in large-scale goals and processes should consider a master’s in strategic management. Programs like the online MA in strategic leadership from St. Bonaventure University turn professionals into visionaries and disruptive forces in their respective industries.

Defining terms

Strategic leadership and organizational leadership degrees are distinct because each career path requires different skills. According to the American Society for Quality , strategic leadership involves the creation of core elements like a company’s mission and long-term vision. Strategic management professionals also develop durable processes and systems to achieve these goals. In short, a master’s in strategic management structures a student’s thinking to anticipate challenges and adjust tactics.

Organizational leadership degrees train students to manage teams and develop initiatives that are people-focused. An organizational management mindset takes into account employee motivation, customer demands, and international business trends. U.S. News & World Report says that an organizational leadership specialist deploys interpersonal skills rather than technical competencies to achieve professional success. While strategic leaders focus on long-term achievements, organizational leaders are concerned with day-to-day activities that impact professional relationships. 

Personality profiles

Before delving into advanced management degrees, prospective applicants should consider which path works well for their personalities and interests. Harvard Business Review examined personality traits that are essential to successful strategic thinkers. 

Strategic managers are gifted in anticipating challenges and trends through simulated business scenarios and examination of competitors. The best strategic leaders don’t accept common knowledge or built-in assumptions. These leaders ask for honest feedback and include skeptics in strategy sessions. The publication also noted that successful strategists can combine anecdotes and data to find solutions that aren’t visible to other companies. Strategic leaders like to explore new ideas, identify the core of each problem, and develop elegant processes. 

Organizational leadership experts start to solve problems by considering the needs of stakeholders prior to collaboration. An aspiring organizational manager wants to improve how they convey information to diverse audiences. Graduates with this specialization are also trained to consider the interactions of inside and outside forces on their departments. This career path rewards professionals who are naturally inclined toward helping people meet their goals in the service of a larger mission. 

The Myers-Briggs Type Indicator

The Myers-Briggs Type Indicator offers a simple method for defining personalities that best fit into strategic and organizational degree programs. Strategic leaders often fall into the Introversion-Intuition-Thinking-Judgement (INTJ) personality type. INTJs, often known as the architect personality, establish goals and use logic to achieve their missions. Strategic leaders also fall into the INTJ type because they treat challenges as complicated puzzles that can be solved through extensive deliberation. 

Organizational leaders are often connected to the Extraversion-Intuition-Feeling-Judgement (ENFJ) type or the diplomat personality. ENFJs are optimistic about people and help others achieve their goals. Professionals in this personality type develop relationships easily and find common ground with a variety of people. An organizational leadership degree is ideal for enthusiastic and outgoing students who want interpersonal relationships at the center of their careers. 

Required coursework

Every graduate degree in business lays a foundation for working in the modern economy. The distinctions between strategic and organizational degrees are based as much in tone as the types of courses. Strategic management degrees from SBU and other institutions promote faculty, courses, and materials that deal with high-level business thinking. For example, SBU’s program features classes in global leadership and leading change ideal for developing and achieving large-scale goals. This type of MA leadership degree also develops an awareness of business functions and problems common across multiple industries and departments. 

The varied career paths of organizational leaders are made possible with degrees that allow customization and specialization. A typical master’s degree in organizational leadership might feature concentrations in human resources, marketing, communications, and international commerce. Graduate students also work with their academic advisors to find internships and elective courses that allow further specialization in the field. Organizational leadership degrees prepare students for departmental management, while strategic leadership degrees train future executives and business owners. 

Career outlook

The Bureau of Labor Statistics (BLS) projected an 8% growth in management jobs in the United States from 2016 to 2026. This projection is on par with overall job growth in all occupations, but current and future managers should not assume all management positions are equal. Professionals with strategic management degrees should select career paths that maximize opportunities for future growth and jobs. 

Financial managers use strategic leadership skills to position their employers toward good investments and long-term profits. High demand for executives with financial industry knowledge means a 19% estimated job growth for the occupation. Administrative services managers are responsible for accounting and operations planning within companies. The BLS estimates a 10% growth in similar positions by 2026. 

Organizational leadership positions tend to stick closer to the 8% growth estimate by the BLS. Human resources management jobs are expected to grow by 9% during the 10-year period, while sales management positions have an estimated growth of 7%. These estimates show a higher premium placed on the long-term planning skills of strategic leaders compared to the soft skills of organizational leaders. Graduates of both specializations, however, can expect plenty of opportunities in their chosen fields. 

Choosing between strategic management degrees and organizational management degrees can also depend on future earnings. Graduates of organizational leadership bachelor’s programs earned an average of $63,000 in 2019, according to PayScale . The site found an average salary of $57,000 per year for professionals with bachelor’s degrees in strategic leadership. A study of salaries for experienced professionals, however, reveals a long-term shift in average earnings for these specializations. 

U.S. News & World Report reported that professionals in organizational leadership positions earned average salaries of $83,750 after 10 years of experience. PayScale placed the median salary for strategic planning managers at $92,985 in 2019 with a top salary of $133,000. The BLS also reported a median salary of $104,980 for top executives in 2018 with many executives possessing strategic leadership backgrounds. 

A master’s in strategic management creates opportunities for high-level business challenges and financial rewards. SBU’s online Master of Arts in Strategic Leadership program moves graduates from their first class to graduate in one year with accelerated courses. Every student completes a leadership portfolio prior to graduation that demonstrates familiarity with strategic management concepts. With an MA in leadership, professionals can help companies around the world navigate sudden shifts in the corporate world. 

Take the first step toward your online MA in Leadership with SBU today!

*Please note that information contained in this blog post may be subject to change per program or regulatory requirements.

Whether you have a simple question or need advice to determine if this program is right for you, our knowledgeable advisors are here to help. They can chat with you on your schedule and guide you through the entire admissions process, so you can feel confident moving forward with your online St. Bonaventure University program.

Connect with an Advisor Today

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Organizational health is (still) the key to long-term performance

For decades we’ve seen companies’ fortunes rise and fall based on their ability to react to, and recover quickly from, geopolitical shocks, technological advances, economic uncertainty, competitors’ bold moves, and other disruptions. Amid this volatility, which these days is accelerating rather than abating, many have a hard time staying the course. But some continue to survive and thrive despite the challenges. Why do these companies manage to succeed, year after year—operationally, financially, and otherwise—while others don’t?

Twenty-plus years of proprietary McKinsey research tells us that one of the main reasons is organizational health.

Organizational health refers to how effectively leaders “run the place”—that is, how they make decisions, allocate resources, operate day to day, and lead their teams with the goal of delivering high performance, both near term and over time. Organizational health comprises three elements: how well the entire organization rallies around a common vision and strategy, how well the organization executes its strategy, and how well the organization innovates and renews itself over time.

Our latest research on the topic reiterates the degree to which organizational health is not just nice to have; it’s required for sustained performance and organizational success. McKinsey’s Organizational Health Index (OHI) continues to show, for instance, that, over the long term, healthy organizations deliver three times the total shareholder returns (TSR) of unhealthy organizations, regardless of industry. 1 Aaron De Smet, Bill Schaninger, and Matthew Smith, “ The hidden value of organizational health—and how to capture it ,” McKinsey Quarterly , April 1, 2014. Other findings point to greater resilience and higher financial performance in healthy organizations, even as the world around them has become that much more complicated (see sidebar, “What is the Organizational Health Index?”).

What is the Organizational Health Index?

The Organizational Health Index (OHI) is a diagnostic that measures critical elements of a high-performing culture in an organization. The index draws from a proprietary database of more than eight million respondents across more than 2,500 organizations in a range of geographies and industries. The index aggregates employees’ and managers’ views on the management practices (and employee experiences) that inform an organization’s performance across nine dimensions, or outcomes. An overall score is assigned so companies can see how they compare with others in the database. The result is a detailed view of the health and internal-network dynamics of an organization (exhibit).

Launched in 2003, the OHI model is updated regularly to reflect advances in organizational science and changes in the state of organizations more broadly. The 2023 update includes factors—such as agility, resilience, inclusivity, and employee experience and well-being—that have become more pronounced in the wake of the global pandemic, macroeconomic shifts, geopolitical unease, and other global trends.

In this article, we look at the latest OHI results and highlight a few of the more compelling insights that the index reveals about leadership, data and technology, and talent management. We also identify several principles for building or maintaining organizational health over time—something that leaders often tell us they have limited time and resources to do.

It’s important to make the time, however—not just to spin up new activities but rather to think about how to run the business differently and factor both health and performance into daily actions. The causes of, and conditions for, organizational health are always changing. Just as medical associations continually update their recommendations on diet and fitness, so must the business community regularly monitor its practices and performance. The companies that do can differentiate themselves from others in the marketplace. They can more readily identify the kind of talent they need and the specific behaviors it will take to achieve their organizational objectives.

Organizational health can put companies on a fast track to performance —and a commitment to sustained health can keep them there.

The staying power of organizational health

There is no one right path to sustained success, but the fact is, healthier organizations do tend to perform better than unhealthy ones, especially in times of uncertainty. And that performance advantage increases over time. 2 “ Where companies with a long-term view outperform their peers ,” McKinsey Global Institute, February 8, 2017. According to our research, organizational health is the strongest predictor of value creation and a critical factor in sustained competitive advantage. In one evaluation of 1,500 companies in 100 countries, for instance, we saw that companies that had improved their organizational health realized 18 percent increases in their EBITDA  after one year.

Consider the following data points.

Health and M&A . In merger situations, healthy organizations—those that applied various health interventions during the integration phase and emphasized organizational health throughout the integration—gained a 5 percent median change in TSR  compared with industry peers after two years. The change for unhealthy companies was –17 percent over the same period.

Health and transformations . In large transformations, companies that embedded organizational-health investments and initiatives in their change programs across an 18-month period saw 35 percent higher TSR  than companies that did not invest in health.

Health and resiliency . Healthy organizations are not just higher performers, they are also more resilient and better able to manage downside risk. For instance, from 2020 to 2021, during the COVID-19 pandemic, healthy organizations were 59 percent less likely than unhealthy organizations to show signs of financial distress .

Health and safety . Companies with superior organizational health are better able than their peers to provide safe work environments, thereby limiting their exposure to financial, operational, and reputational risks. Indeed, companies in the top quartile in organizational health have six times fewer safety incidents  than those in the bottom quartile.

The relationship between health and performance can be quantified in other ways, too, including in the areas of talent and culture . In our experience, employees and leaders in unhealthy cultures often focus on what made them successful in the past rather than on what may be required going forward—and their entrenched behaviors and ways of working can take on a life of their own. Consider the situation at one global company: employees had reported in company satisfaction and pulse surveys that they felt motivated to do their jobs—and yet, the company’s performance remained stagnant. The CEO and executive team could not determine how to break through.

An organizational-health diagnostic revealed the problem: misaligned behaviors had dulled the company’s performance edge. Employees were producing day to day—but not in the areas that mattered most for meeting the organization’s long-term strategic goals. They were engaged but comfortable—“like being in a warm bath.” To change the energy, the CEO and executive team embarked on a multiyear transformation in which they reengineered business processes, instituted different working norms for leadership teams, changed their protocols for meetings and communications, activated change agents across the organization, and pushed more decisions down to those on the front lines. Over time, employees’ enthusiasm increased, and descriptions of “what it felt like to work there” became livelier and more focused on achieving great things together. Performance was on the upswing.

A pulse check: How should leaders think about organizational health?

Clearly, organizational health matters as much now as it ever has. The latest OHI results reiterate what we know from McKinsey’s 2023 State of Organizations research  about how companies are faring in an era of unprecedented change. But in these latest OHI findings, three trends in particular stand out: how leaders are leading; the links between technology, data, and innovation; and the value of talent mobility.

1. Leadership is undergoing a generational transformation

It’s fair to say that few—if any—executives anticipated the deeply disruptive business (and societal) changes that would emerge because of the 2020 global pandemic and the speed at which organizations needed to transform themselves. As they have reckoned with changes in where and how work gets done, leaders are learning that they need to be both decisive and empowering .

To that point, the OHI research indicates that decisive leadership is now one of the best predictors of organizational health. Unlike authoritative leadership, in which leaders use influence and authority to get things done, decisive leadership reflects leaders’ quick decisions and their commitment to act on them. During the COVID-19 pandemic, senior leaders at Amazon made quick commitments—within days and weeks, not months—to prioritize essential supplies, protect customers from price gouging, raise the minimum wage for hourly workers, and increase overtime pay. They allowed unlimited paid time off, as well as two weeks of sick pay to those affected by COVID-19. The company also rapidly expanded the capacity in its data center to meet the surge in demand for cloud computing services, which resulted in increased operational efficiency and growth for Amazon Web Services. 3 Karen Weise, “Amazon’s profit soars 220 percent as pandemic drives shopping online,”  New York Times , April 29, 2021.

Would you like to learn more about the Organizational Health Index ?

Decisive leadership is not just for times of crisis, however; it’s a requirement for any business that just wants to keep up. 4 Aaron De Smet, Gerald Lackey, and Leigh M. Weiss, “ Untangling your organization’s decision making ,” McKinsey Quarterly , June 21, 2017. To that end, a number of organizations have taken steps to empower frontline workers. Senior leaders at TJ Maxx, for instance, have empowered more than 1,200 buyers across all stores, each of whom controls millions of dollars, to cut deals on the spot with manufacturers. By committing to a system of delegated decision making, leaders have ensured that items get into stores quicker—within a week, in most cases—than they would have under a more traditional, hierarchical review process. 5 “The Economics of T.J. Maxx’s recession-proof pricing strategy, explained,” Wall Street Journal , June 1, 2023. Leaders at Southwest Airlines have made a concerted effort to put critical customer information in frontline employees’ hands: “Not only are [employees] able to work more quickly, but they are also providing a more tailored experience to customers,” James Ashworth, vice president for customer support and services, told Forbes magazine. The end result has been “a lift in our customer satisfaction scores, as well as a decrease in our call handle times,” he says. 6 Tiffani Bova, “Southwest on the importance of employee experience,” Forbes , November 17, 2020.

According to the OHI research, companies with leaders who take decisive actions—and who commit to those decisions once they are made—are 4.2 times more likely to be healthy, as compared with their peers.

But it’s not enough just to be fast with those decisions; our OHI research shows that decisive leaders who empower their employees (giving those closest to the work the autonomy to make their own decisions) are 85 percent more likely to improve the quality of organizational decisions, as compared with their peers. This supports previous McKinsey research pointing to a paradigm shift in leadership and, among other new requirements, the need for executives to shift from being controllers to becoming coaches  who engage employees and help foster in them a bold mindset of testing, learning, and fast adaptation. 7 Aaron De Smet, Arne Gast, Johanne Lavoie, and Michael Lurie, “ New leadership for a new era of thriving organizations ,”  McKinsey Quarterly , May 4, 2023.

Bank Mandiri, for instance, is using digital tools to ensure that individuals across all parts of the company have access to data analytics. Previously, information requests and report generation at the bank could take weeks, and critical business information had to be pulled from a tangle of systems. Through a new self-service system, employees can now access the data that are most relevant to them in a timelier manner—in a matter of days rather than weeks—allowing employees to make better, faster decisions.

2. Data is the fuel for everyday innovation

Leaders have traditionally thought of innovation as a process for bringing “the next big idea” to life . But our latest OHI data reveal that companies are more likely to succeed with innovation initiatives if “big bang ideas” are supported by data-driven insights and supplemented with smaller, more frequent ideas that target improvements in everyday processes or ways of working.

In many organizations, the ideas for “little i” innovation often come from the people closest to customers— frontline employees . 8 People & Organization Blog , “ Empower the front line for a thriving organization ,” blog entry by Kelli Moles and Michael Park, McKinsey, August 28, 2023. And, as it turns out, it pays to listen to them: the OHI data show that organizations that actively listen and act on recommendations from frontline employees are 80 percent more likely than others to consistently implement new and better ways of doing things.

The research also reiterates that all forms of innovation are more likely to succeed when decisions are grounded in data and facts. According to the research, organizations that emphasize data-driven decision making are 63 percent more likely than others to adapt to a changing business environment.

One of the best recent examples of data-informed innovation comes from Major League Baseball. The rise of data analytics prompted significant changes in many teams’ operations; managers built their rosters and managed their lineups according to batting percentages, probabilities, and other data captured across the league. The downside of that data-driven innovation, however, was longer games (more pitching changes) and a product that was less appealing to younger viewers. Again, the league turned to data—this time conducting surveys, focus groups, and spending time with younger fans—to learn what was important to them. Based on that feedback, the league engaged in some experiments. It implemented rule changes in 2023 (pitch clocks, larger bases, pitching-change limits, and so on) that fundamentally altered the pace and action of the game. The league continues to embrace innovation and technology, not only to improve the game but the overall fan experience. 9 Erik Roth, “ The Committed Innovator: How Major League Baseball built an innovation machine ,” McKinsey, October 27, 2023.

3. The dynamic deployment of talent is becoming even more of a competitive advantage

Workforce dynamics have been completely upended over the past few years, which has left organizations with an increasingly difficult HR-related task: ensuring that they have the right talent on board to tackle the highest-value-creating activities and successfully execute on their strategies. 10 Patrick Guggenberger, Dana Maor, Michael Park, and Patrick Simon, “ The State of Organizations 2023: Ten shifts transforming organizations ,” McKinsey, April 26, 2023. Our OHI research shows that the dynamic deployment of talent can be a powerful lever for both employee attraction and retention. It can also help organizations pivot quickly as markets change or new technologies and global trends emerge. 

Companies that encourage and even facilitate internal role changes can sharpen employees’ skills, maximize their versatility, and provide avenues for growth. According to our OHI findings, employees that experience more mobility at work are 27 percent less likely to report feeling burned out, 47 percent less likely to report intentions to leave their organization, and 2.3 times more likely to recommend their companies to others.

Employee rotations and upskilling became core components of one Latin American bank’s digital transformation. When HR leaders realized that 62 percent of the company’s technology workforce needed to be upskilled to meet the bank’s transformation goals, they launched a large training initiative, which involved more than 1,500 courses focused on about 820 technology skills, 60 boot camps, and countless individual, on-the-job coaching sessions. The HR organization embedded this focus on technology coaching and capability building into all performance management discussions.

As a result of this effort, about 60 percent of the total technology workforce is engaged in upskilling, attrition is low, and what started as a “special transformation program” is now considered business as usual and a cornerstone of the bank’s learning and development efforts. 11 Vincent Bérubé, Dana Maor, Maria Ocampo, and Alex Sukharevsky, “ HR rewired: An end-to-end approach to attracting and retaining top tech talent ,” McKinsey, June 27, 2023.

It's worth noting that more and more organizations are following the bank’s lead and exploring the move to skills-based hiring —in part to address shortages in certain skill areas like technology but also to create pathways for “nontraditional” job candidates, or those who might not have a college degree or a formal certificate of expertise. 12 Bryan Hancock and Brooke Weddle, “ Right skills, right person, right role ,” McKinsey, October 25, 2023.

Getting and staying healthy

Sustained organizational success really comes down to leaders gathering the data that will help them understand which behaviors can help them to meet their performance goals as well as the type and scale of health improvements their organization should target.

It’s critical for leaders to establish a baseline of the organization’s current strengths as well as the strengths it is targeting. With that baseline in mind, leaders can set clear behavioral priorities and begin to act—but it’s also critical to remember that context matters. Organizations will need to launch health interventions that are specific to the business, their performance goals, and their customer value proposition. Two hotel chains—one luxury, one economy—may offer similar services in the market, but each requires different kinds of behaviors to deliver on their value propositions and meet their performance targets. Regardless of their starting points, each will need to track progress against goals and adapt as needed along the way.

McKinsey research points to four foundational behaviors, what we call power practices , that can have disproportionate effects on organizational performance—and whose absence can create a significant drag on organizations: strategic clarity, role clarity, personal ownership, and competitive insights. 13 It is worth noting that the list of power practices has changed over time, and likely will again, but three practices routinely show up: strategic clarity, role clarity, and personal ownership.

  • Strategic clarity . Healthy organizations effectively translate vision and strategy into actionable and measurable objectives that are clearly articulated and shared with employees at all levels.
  • Role clarity . Healthy organizations tend to have structures, processes, and working norms that speed up decision making, remove layers of bureaucracy, and make it easy for employees to get things done—even when situations are new or ambiguous.
  • Personal ownership . Healthy organizations hire and develop managers who have a deep sense of personal ownership for their work and who foster that same sense of ownership in their teams and employees.
  • Competitive insights . Healthy organizations tend to have a clear view of where and how they fit in the competitive landscape and of their value propositions; they use these insights to set strategic priorities, make decisions, and allocate resources.

If any of these power practices are missing or at risk, organizations should take steps to address them; it’s a no-regrets move for achieving good organizational health.

In addition to this list, companies also need to identify which kinds of talent and behaviors are required for them to truly differentiate themselves from competitors—the organizations’ so-called “secret sauce.” Industry insights and benchmarks can provide some direction, but the final list of behaviors that convey competitive advantage to one company and not others can only be identified by an organization’s senior leaders.

The “born remote” technology company GitLab provides a good example. Long before these days of remote and hybrid workplaces, the company established foundational norms  to get the most out of its distributed workforce. Ways of working were designed to be independent of time and place. Employees are encouraged to “write things down,” for instance, and playbooks are readily available online. GitLab’s operating model emphasizes a shared reality, equal contributions, decision velocity, and measurement clarity. The central behaviors at the company’s core have given it an advantage as other companies continue to try to define remote and hybrid working models . And GitLab has demonstrated top-decile performance against OHI benchmarks. As this and many other examples show, leaders in outperforming companies always have a plan to be “good enough” at everything and “truly excellent” at the handful of things that matter for them and the organization. And when it comes to how they run the place, they emphasize cultural consistency across the organization. 14 Carolyn Dewar and Scott Keller, “Three steps to a high-performance culture,” Harvard Business Review , January 26, 2012.

The leadership imperative

Our research makes a clear and compelling case that organizational health is the foundation for companies’ ability to successfully create value, attain profitability, build resilience, and thrive in so many other areas.

So why don’t more senior executives make it a priority?

In our experience, there are several common obstacles. The first is inconsistency in how leaders think and talk about organizational health: conversations about organizational health often anchor on employee engagement as the default, and executives often consider organizational health as being separate from performance. In fact, they are actually one and the same. Leaders should be asking themselves, “How do I run the place each and every day—in each and every meeting—in ways that are both healthy and conducive to creating high performance?”

Related, senior leaders may not see the trees for the forest; many will discuss organizational health as a top-level theme but are much less often involved in the interventions and implementation required to achieve and sustain organizational health. Third, realizing improvements in organizational health takes time—and executives often need to move fast. The default here is to focus on putting out fires rather than fixing the system.

And finally, there’s a sense that bad health implies bad leadership. C-suite leaders must make organizational health a central component of their leadership styles and manage it as rigorously as they do their P&L. Otherwise, they may not actually recognize unhealthy actions when they see them. For this reason, leaders may need to spend extra time, attention, and resources on health interventions. They may need to reframe quarterly discussions and incentives and other elements of performance management around the idea of maintaining organizational health.

Even for those companies that are seemingly in great shape, it’s important to continue to monitor the organization for symptoms of upset or disruption. Just as top athletes can lose time or distance or skill if they skip workouts for an extended period, so can companies fall behind competitors if they take a break and rest on their laurels. Commitment is crucial.

Alex Camp is a partner in McKinsey’s New York office, Arne Gast is a senior partner in the Amsterdam office, Drew Goldstein is a partner in the Charlotte, North Carolina, office, and Brooke Weddle is a partner in the Washington, DC, office.

The authors wish to thank Aaron De Smet,  Ben Fletcher, David Mendelsohn, John Parsons, and Laura Pineault for their contributions to this article.

This article was edited by Roberta Fusaro, an editorial director in the Boston office.

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Purposeful leadership, best practices in strategic planning and cultivating a strong organizational culture

Colleen Luckett

The nuances of leadership growth, the role of strategic planning in healthcare today, and the importance of developing culture through shared values and purposes were explored in depth during a recent MGMA member-exclusive webinar, “Leading Healthcare with Purpose and Strategy: A Thought Leadership Exploration.” The panel for the presentation consisted of a trio of MGMA Consulting experts:

  • Dawn Plested , JD, Esq., MBA, FACHE
  • Chris Senkowski , MD, FACS;
  • and Shawntea “Taya” Gordon , MBA, FACMPE, CMOM.

The leaders shed light on issues ranging from the significance of intentional leadership and the challenges and potential of technology in healthcare to the transformative power of an engaged organizational culture. Drawing from their vast experiences, the panelists also emphasized the cruciality of clear communication, consistent goal setting, and a patient-centered approach. As the healthcare landscape continues to evolve, these insights provide a beacon for organizations aiming to navigate the path ahead with clarity, purpose and optimism.

The need for medical group leaders to prioritize their personal development and that of their team members was a key focus, emphasizing reflection and planning as key practices. As the panelists related, organizations must clearly define what leadership means regarding their culture to effectively nurture leadership qualities. Further, they stressed the importance of building robust teams where leadership isn't confined to titles but extends to team members' capabilities to lead in the absence of formal leaders.

The panelists also noted that amidst busy schedules, finding time for learning, reflection and employee development is a challenge yet crucial for leadership growth. The discussion underscored that purposeful leadership — rooted in a shared mission and values — can guide meaningful impact and engagement for all stakeholders, fostering a culture aligned with the organization's overarching purpose.

Ultimately, living out these values and mission through authentic and intentional actions is fundamental to cultivating an engaged culture in line with the organization's mission.

 “If you are leading with purpose … you first need to know what your purpose is” Gordon noted. “So many people say, ‘be authentic,’ ‘be intentional.’ They've almost become buzzwords, but they are still very true." Without a daily focus on living with the importance of those pieces, “you're just you're not going to see those results that you want."

If you feel stuck on how to do this, Gordon suggests to get beyond your office and write out your goals, something she does regularly. “The thing about that is then nobody is standing around you, nobody is interrupting you constantly, the phone isn't ringing in the background,” she said. “If you can step away, and put on paper ... you're going to make progress to your goal."

Senkowski said that when developing physician leadership, direct feedback often is crucial. "The trick is how to be purposefully critical but not be personally human. … ‘I'm going to tell you the pluses and the minuses, and we're going to work together to try and make this better,’" he said. "Don't beat around the bush... people are willing in a closed room, where they're not being humiliated by other people. Straight up, right, and honesty works every time. And often for the leader, it's more difficult. It's harder to do, but you’ve got to try it. I promise you it'll work."

Additional resources

  • “Leadership reimagined: Tomorrow’s success in healthcare starts today” (Insights podcast)
  • “Create and Sustain a Successful Leadership Development Institute” (on-demand webinar)

Panelists emphasized that organizations should formulate SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals. Engaging all stakeholders in the planning process is essential to ensure collective buy-in and valuable feedback. Additionally, they stressed that the strategic plan must resonate with the organization's mission, vision and value (MVV), as well as highlighted the usefulness of tools such as the impact/effort matrix to prioritize initiatives that, while demanding, have a high potential impact. There was a consensus on the importance of setting realistic timelines, routinely reviewing progress and staying adaptable to ever-evolving situations. Finally, aligning incentives and ensuring accountability relative to strategic objectives was deemed essential for effective implementation.

Senkowski on leveraging patient-reported outcomes

  • “Let's pretend you have five cardiac surgeons that do heart surgery, and they're all very good quality. But some have better customer satisfaction scores, some are cheaper. You have to flatten the field and say, whatever this person is doing is cheaper but the same outcomes — figure it out, teach us. But the other person has better outcomes and better customer satisfaction — what are those patient-reported outcomes?”
  • "We ran through a bunch of scenarios on the surgical side, looking at best practices. All your hernia [patients] — go and talk to the patients and ask, ‘When did you go back to work? Did that meet your expectation? What was your expectation?’ The patient says, ‘well, I thought I'd be back to work in two days. So, I'm actually dissatisfied that I was back to work in a week.’ All these individualized quality outcomes from a patient standpoint are patient reported outcomes. This is an interesting new topic — how do you think you’re doing as a doctor? It’s another piece of the puzzle that could help you see back to your whole process of what you want to work on as a practice.”

Gordon on getting stakeholder buy-in

  • "If you are not engaging all of your stakeholders, you're never going to get their buy-in. If people don't feel like they were included in the solution, they're not going to participate in the solution. That is just a plan to fail."
  • "For me, what I do is I highly reward engagement. I like to be super vocal with my praise, because that typically gets the bad actors out of there or back on the right path."
  • "If you have a strategic plan for a project, you really want to push forward. It should be in alignment with the mission and vision and values of your organization. If it isn't, it doesn't matter how you present it to the board. You have to really look realistically at what your organization can do, and how many meetings you can have, and who can participate in research, and how much time you can dedicate to this."
  • "The number one thing be clear with your expectations and goals, be inclusive of everybody that this is going to impact. Make sure everybody has a representative to make sure that their voice is heard."

Plested on open communication for buy-in

  • "Clarity is key. So being very, very, very, very clear about what success looks like, what the goals are, what the strategic direction is — it should tie into your mission, your vision, your values, and it should be crystal clear what success means."
  • "Empower people to determine where you want to get... It's empowering the whole organization to really engage in that purposeful, meaningful work and have a role to play in that final outcome. A strategic plan should be shared with the whole organization... and it's very important to tie your incentives to that. So, put your money where your mouth is."
  • "The tool that I would just say everybody should be using is your impact effort matrix... it will have a big impact on your practice."

Gordon on being realistic

  • "You have to be really practical about how we're estimating a project. You can't just say, 'Okay, we're going to have this implemented in quarter one of 2023.' You have to look realistically at what your organization can do, how many meetings you can have, who can participate in research and how much time you can dedicate to this.”
  • "Be clear with your expectations and goals and be inclusive of everybody it is going to impact."

Senkowski on staying organized

  • "You definitely need to have things written down and be going over lists and moving your lists around and trying to make little increments on each project. So, you have your priority items, you know, green light, yellow light, red light, or whatever you want to call them. And maybe you take something quick and easy, and then relish in the fact that it was quick and easy. If it's stalled, and you're ‘in the mechanic shop,’ figure out why. It sounds silly, these sort of things we're talking about, but it's true."
  • "The best leaders are just organized. Just show up, be organized, listen to what people tell you, and give a darn about making it all better."
  • MGMA Strategic Planning Toolkit (member resource)
  • “Successful steps in medical group strategic planning for a value-based transformation” (Insights podcast)
  • “Objectives and obstacles in strategic planning meetings” (Insight article)

The panelists also explored how an organization's culture has the power to either propel or impede its ability to realize its strategic goals and overarching mission, and that leaders should not overlook a toxic culture, working toward immediate rectification. They stressed that leadership should prioritize enhancing employee engagement, going beyond mere performance metrics — one tactic shared was establishing a distinct employee compact that clearly delineates cultural expectations. Moreover, the panelists encouraged recognizing and rewarding employees who embody and promote the organization's goals and values, which is instrumental in steering the culture in a positive way. They also stressed the necessity of confronting problematic employees, using data-driven insights and maintaining accountability, even if it leads to challenging conversations.

Plested on employee engagement

  • "What's the old cliché? ‘Culture eats strategy for breakfast.’ Truly, you can have the best of intentions, have a fabulous, well-laid-out strategic plan, but if your culture won’t support or engage staff in carrying out that purpose-driven work, good luck."
  • "What breeds toxicity faster than anything is having a disengaged group of employees who do not believe in the work and are not rowing for the same shore as you are in terms of building a purpose-driven organization. … It's very, very important to work on employee engagement and then work on accountability.”

Gordon on having difficult conversations

  • "If you are uncomfortable with tough conversations, get ahead of that now. You have to be prepared to have those tough conversations. We pulled all the clinical support staff into a meeting, and I said, ‘Show of hands: who hates where they work?’ Obviously, nobody raised their hand because administration was there. So I said, ‘Show of hands, who wishes that they loved where they worked more than they do now?’ and everybody's hands were up.”
  • "[Ask questions like], how do you need for us to support you and make that happen? I know this is what your goal is. This is my goal. How do we get this solved? That was one of those times where you need to sit down and have a tough but clear conversation, because clarity is just kind."
  • "It takes time to fix cultural problems. It takes transparency. Not everybody's going to like you. There are going to be some people whose minds you will never change, and they will retire before they've decided to participate in whatever it is that you want to do."

Plested on defining expectations clearly and sticking to them

  • "Have employee and provider compacts that outline cultural expectations. It goes back to clarity and laying out what is expected, what is allowed, what just doesn't fly at your organization and then stick to it."
  • "The second you deviate or make an exception because somebody's a great surgeon, or a great nurse or a great whatever, your credibility is shot. If you stick to your guns and hold people accountable, that has an enormous impact on culture."
  • "Sometimes it is really holding those people with the fabulous reputations accountable to [the organization’s] behavioral standards. Not everybody belongs on the bus. Sometimes people need to seek happiness elsewhere, and it's okay."
  • “Why employee engagement tops business leaders' list of priorities” (2023 Leaders Conference session preview)
  • “ Shaping a culture: Implications for leaders” (Insight article, ACMPE credit available)
  • “Recognize, Reward and Retain Your Best Employees” (on-demand webinar)

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Colleen Luckett

Colleen Luckett , MA

Colleen Luckett has an extensive background in publishing, content development, and marketing communications in various industries, including healthcare, education, law, telecommunications, and energy. Midcareer, she took a break to teach English as a Second Language for four years in Japan, after which she earned her master's degree with honors in multilingual education in 2020. She now writes and edits all kinds of content at MGMA. Have an idea for an MGMA Connections article or whitepaper? E-mail her . 

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Home » Blog » The Importance of Leadership Development in the Workplace

The Importance of Leadership Development in the Workplace

February 15, 2024 by cynthia orduña.

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Leadership is the cornerstone of success in any organization. It is the driving force that propels teams forward, fosters innovation, and navigates through challenges. However, leadership isn’t merely a trait one is born with; it’s a skill that can be developed and honed over time. This is where leadership development programs come into play, offering a structured approach to cultivating effective leaders within the workplace.

What is Leadership Development?

Leadership development encompasses activities and initiatives designed to enhance the skills, abilities, and qualities of individuals to help them lead more effectively within your organization. It involves a deliberate and systematic process aimed at identifying, nurturing, and empowering potential leaders. Leadership development goes beyond traditional training programs to focus on fostering a mindset conducive to leadership excellence and continuous growth.

Let’s explore a few examples of leadership development in action.

Mentorship Programs

Many organizations implement mentorship programs where experienced leaders mentor emerging leaders within the company. Through regular one-on-one meetings, feedback sessions, and shared experiences, mentees gain valuable insights, guidance, and support in their leadership journey.

Leadership Workshops and Seminars

Companies often organize workshops and seminars focused on leadership development. These sessions may cover topics such as emotional intelligence, conflict resolution, effective communication, and strategic thinking. Participants engage in interactive discussions, case studies, and skill-building exercises to enhance their leadership competencies.

Cross-Functional Projects

Assigning leaders to cross-functional projects provides them with opportunities to develop new skills, expand their networks, and gain exposure to different parts of the organization. Leading diverse teams through complex projects fosters adaptability, collaboration, and innovative thinking.

Executive Coaching

Offering executive coaching to leaders at all levels can be highly beneficial for personalized leadership development. Executive coaches work closely with leaders to identify their goals, strengths, and development areas, providing tailored guidance, support, and accountability throughout the process.

Leadership Development Programs

Some organizations invest in formal leadership development programs designed to cultivate a pipeline of future leaders. These programs typically include a mix of classroom training, experiential learning, coaching, and mentoring, with participants working on real-world business challenges and projects.

Leadership Retreats

Organizing leadership retreats or offsite meetings provides leaders with dedicated time and space for reflection, team-building, and skill development. These retreats often include workshops, outdoor activities, and facilitated discussions aimed at strengthening leadership capabilities and fostering collaboration.

At Careerminds, we offer three different types of leadership development options from leadership coaching , executive coaching, and a leadership accelerator. 

Why is Leadership Development Important in the Workplace?

Personal leadership development is crucial in the workplace for several reasons. Firstly, it fosters effective communication skills among leaders, enabling them to articulate visions, delegate tasks, and provide constructive feedback. Secondly, it promotes collaboration and teamwork, as leaders who have undergone personal development are better equipped to foster collaboration, build cohesive teams, and leverage diverse talents effectively. 

Additionally, personal leadership development is essential for driving innovation and adaptability in a rapidly changing business landscape. It equips individuals with the agility and resilience needed to navigate uncertainty and drive innovation forward. 

Cultivating employee engagement is another key aspect of personal leadership development. Engaged employees are more productive and committed to organizational goals. Effective leaders foster a positive work environment where employees feel valued and empowered to contribute their best. 

Lastly, personal leadership development enhances decision-making and problem-solving skills. Leaders often face complex decisions and challenges, and this development training equips individuals with critical thinking skills, enabling them to make informed decisions and solve problems more effectively.

What Skills Are Gained in a Leadership Development Program?

A well-rounded leadership development program typically focuses on developing a range of skills and competencies. Let’s break down some of the most essential of these leadership skills, which will help further paint the picture for why is leadership development important.

Emotional intelligence: The ability to recognize, understand, and manage one’s emotions and those of others is crucial for effective leadership.

Strategic thinking: Leaders need to think long-term, anticipate trends, and formulate strategic plans to steer their organizations towards success.

Coaching and mentoring: Effective leaders empower and develop their team members through coaching, mentoring, and providing constructive feedback.

Conflict resolution: Leaders must navigate conflicts constructively, fostering resolution and maintaining positive relationships within the team.

Change management: In a constantly changing business environment, leaders need to effectively manage change, inspire buy-in, and guide their teams through transitions.

What Are the 5 Components of a Leadership Development Plan?

A leadership development plan typically consists of five components to ensure it is comprehensive, strategic, and effective in developing leaders within an organization. Each component serves a specific purpose and contributes to the overall success of the leadership development initiative. Here are examples of the five components often included in leadership development plans.

1. Assessment

The assessment component allows organizations to evaluate the current state of leadership within the organization. It involves identifying potential leaders and assessing their strengths, weaknesses, and leadership potential through tools such as 360-degree feedback, personality assessments , and performance evaluations. By conducting assessments, organizations can identify any gaps and development needs to ensure that the resulting leadership development plan is tailored to the specific needs of individuals and the organization as a whole.

2. Goal Setting

In this component, organizations collaborate with leaders to establish clear, measurable, and achievable goals that are aligned with both organizational objectives and personal aspirations. By setting clear goals , leaders have a roadmap for their development journey, enabling them to track progress, stay motivated, and focus their efforts on areas of improvement.

3. Learning and Development Activities

The learning and development component involves providing leaders with opportunities to acquire new knowledge, skills, and competencies essential for effective leadership. This may include participation in workshops, seminars, training programs, online courses, coaching sessions, and experiential learning opportunities. By engaging in diverse learning activities, leaders can expand their skill set, broaden their perspective, and enhance their leadership capabilities.

4. Feedback and Reflection

Leaders need regular feedback from peers, mentors, supervisors, and direct reports to gain insights into their strengths, areas for improvement, and blind spots. Additionally, reflection allows leaders to pause, evaluate their experiences, and identify lessons learned. By incorporating feedback and reflection into the leadership development plan, organizations promote self-awareness, continuous improvement, and personal growth among leaders.

5. Ongoing Support and Evaluation

The final component of a leadership development plan involves providing ongoing support, resources, and opportunities for development, as well as evaluating continued progress towards leadership goals. Organizations must ensure that leaders continue to have access to their necessary leadership support systems, including mentors, coaches, networks, and development resources. Additionally, regular evaluation and assessment can help organizations measure the lasting effectiveness of the leadership development initiative, identify areas for refinement, and celebrate successes.

By incorporating these five components into a leadership development plan, organizations can create a structured, systematic, and sustainable approach to developing leaders within the organization. This holistic approach ensures that leadership development efforts are aligned with organizational goals, responsive to individual needs, and conducive to long-term growth and success.

Why Invest in Leadership Development?

Strong leadership is the driving force behind organizational success, influencing everything from employee engagement to innovation and decision-making. By investing in leadership development, organizations demonstrate a commitment to nurturing their talent and fostering a culture of continuous learning and growth. 

Effective leaders inspire and motivate teams, driving productivity, and performance. They also play a crucial role in fostering innovation, adapting to change, and navigating challenges. Furthermore, leadership development programs help prepare organizations for succession , ensuring that there is a pipeline of qualified leaders ready to step into key roles as needed. 

Ultimately, investing in leadership development is not just an investment in individuals. It is an investment in the long-term success and sustainability of the organization as a whole.

Leadership Development: Key Takeaways 

So why is leadership development important, you ask? Leadership development is essential for building a pipeline of capable leaders who can drive organizational success. With a structured leadership development plan in place, individuals can unleash their full potential and inspire others to do the same.

Here are the key takeaways: 

  • Leadership development fosters effective communication, promotes collaboration, drives innovation, and enhances decision-making skills.
  • Examples of leadership development initiatives include mentorship programs, workshops, cross-functional projects, executive coaching , leadership development programs, and retreats.
  • Personal leadership development is crucial in the workplace as it equips individuals with the skills needed to navigate challenges, drive innovation, and cultivate employee engagement.
  • Leadership development programs focus on developing skills such as emotional intelligence, strategic thinking, coaching and mentoring, conflict resolution, and change management.
  • A comprehensive leadership development plan typically includes an assessment, goal setting, learning and development activities, feedback and reflection, and ongoing support and evaluation.
  • Investing in leadership development is necessary for organizations to thrive in today’s competitive business landscape, demonstrating a commitment to nurturing talent, fostering growth, and ensuring long-term success and sustainability.

At Careerminds, our aim is to elevate your performance and efficiency, both individually and organizationally, ensuring everyone in your company can achieve their goals. Our tailored leadership coaching programs are designed to address your specific needs, empowering employees at every level to enhance their essential skills, transform habits, boost productivity and accountability, and elevate effectiveness for themselves and their teams. 

If you’re keen on discovering more about our leadership coaching and development services at Careerminds, click below to connect with our experts and determine if we’re the right fit for your organization.

Speak with an Outplacement Expert

Cynthia Orduña

Cynthia Orduña is a Career and Business Coach with a background in recruiting, human resources, and diversity, equity, and inclusion. She has helped 50+ companies around the world hire and retain talent in cities like LA, SF, NY, Berlin, Tokyo, Sydney, and London. She has also coached over 300 people, from entry to senior levels, in developing their one-of-a-kind career paths, Her work has been featured in publications such as Business Insider, The Balance Careers, The Zoe Report, and more. To learn more you can connect with Cynthia on LinkedIn.

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Talent. Every organization wants to attract it, nurture it, and retain it. Yet most fail spectacularly in their quest to create an environment where talent can thrive over the long-term. 

Why? Because they rely on outdated approaches focused on one-off training programs rather than nurturing talent strategically. 

For an organization to unleash the true potential of its people, there needs to be a coherent system in place for developing talent that aligns with business objectives - a talent development framework . The organizations that embrace its core philosophies will find themselves with a perpetual pipeline of rising stars rather than a revolving door of burnt-out employees.

The Problems with Traditional Approaches to Developing Talent

The talent development approaches used by many organizations seem almost deliberately designed to fall short. For years, the emphasis has been on one-off training events rather than continuous development journeys aligned with employees' career goals. 

Let's call this the "sheep dip" approach – herding everyone together for a batch training process that neither resonates with individuals nor translates into impact back on the job. 

Sure, training has a role to play, but it is just one element in the bigger picture. What's missing is personalization, continuity, and integration with performance management processes. This fragmented non-strategy serves only to disengage employees as their unique talents and motivations are ignored by a learning ecosystem that was designed for compliance rather than nurturing human potential within the organization.

Employees striving for mastery soon realize they'll need to take control of their own development. For organizations wanting to retain and unleash talent, it’s time for a serious rethink.

Elements of a Modern Talent Development Framework

So what does an effective talent development framework actually look like? Let's take a look at some of the key elements.

Leadership Commitment

Gaining leadership buy-in to talent development as a strategic priority rather than an optional extra is the essential first step. Leaders must be sincere cheerleaders for capability building across the organization. This means moving beyond paying lip service to talent development in company values statements.

Leadership should actively advocate for, participate in, and fund talent development initiatives. They should seek regular input on program effectiveness and areas for improvement. When the troops see leaders making time for mentoring conversations and celebrating promotions into stretched roles, it speaks volumes.

Succession Planning

Critical roles should have at least one successor in development at all times. This minimizes talent gap risk and helps retain ambitious high potentials. Rather than just focusing on current role requirements, boards should take a forward-looking approach to succession planning that anticipates future capability needs. 

A succession planning template can help organize role requirements, candidate readiness, development gaps, and progress tracking. Successors can then be developed through tailored stretch assignments, targeted training, and mentoring. Leadership bench strength can be improved through regular talent reviews focused on high potential development.

Personalized Development Planning

The process starts with skills, motivations and potential assessments for each employee. This is supported by managers who take an active interest in mentoring and nurturing growth among their teams. 

Development opportunities spanning training programs, stretch assignments, new roles and more are then integrated into detailed career progression blueprints personalized to the individual. Goal setting, check-ins and encouragement help drive development plan execution.

Diverse Development Opportunities

From online learning programs to rotations, secondments, shadowing, and stretch assignments . A wide range of modalities should be on offer to suit different capabilities, experience levels, and learning styles. This empowers individuals to take ownership of their development journey. Diversity and inclusion considerations should also inform the opportunities offered to avoid uniformity.

Measurement and Monitoring

Quantitative and qualitative measures closely aligned to business KPIs and talent strategy goals provide visibility on the return on investment from talent development efforts. 

Participation rates, program evaluations, competency gains, engagement surveys, retention and promotion rates for high potentials may all provide useful metrics. However, care should be taken to avoid over-engineering the measurement approach thereby losing sight of the human element.

Key Takeaways for Implementing Your Own Framework

Implementing a strategic talent development framework requires careful planning and execution. By following these key pieces of advice, you'll be on the right path to building an impactful talent development program:

  • Secure genuine buy-in from leadership by aligning talent development to business objectives and clarifying expectations around budget, executive participation, and oversight. Assign ownership for design and operations.
  • Conduct skills and motivations analysis along with talent segmentation/succession planning to map development opportunities to employee capabilities and organizational needs.
  • Invest in user-friendly technology infrastructure to drive engagement by enabling seamless discovery, self-service access, skill tracking and career visualization.
  • Incorporate diverse development modalities spanning training , exposure, experience-building, mentoring and communities of practice tailored to all career levels.
  • Implement continuous listening strategies via pulse surveys and analytics to gauge engagement, enhance offerings and communicate success stories.

It’s important that we dispel the misconception that talent development frameworks are some complex tangle of processes tied up in HR red tape. Fundamentally, it's about taking an intuitive, human-centric approach to nurturing skills and unlocking potential within an organization. 

Leadership commitment and support is essential, but the framework should be owned by line managers. When well-designed and personalized around individual strengths and growth areas, it becomes a valuable tool for retaining top talent. And that can turn into a serious competitive advantage when utilized effectively.

Copyright © 2023 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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