Leadership Capacity

“Organizational capacity is determined by its leadership capacity.”- Paul Fournier

Building bench strength in your management team has many advantages for succession management. First, supporting existing management with energy, new talent, and fresh ideas. Second, mitigating risk when a management member retires or departs the organization. Third, providing a pathway for growing organizational capacity.

Companies with quality management development programs establish clear boundaries and expectations for leadership and culture. There are many excellent reasons for promoting from within. First, candidates are a proven entity. Second, the management candidate understands the company culture, products/services, and customers.

The fact is, not all employees make quality managers. Sometimes employees simply don’t want the responsibility. Or they lack the confidence to be a successful manager. Ensuring the candidate has the skills and aptitude is critical. Verifying they have the heart and passion to enforce the vision, mission, and core values is the final thought.

One important point regarding core values. In my view, honor and character always remain top of mind. Honor and integrity are simply not attributes we can train for. Either one has them, or not. Education, tenure, and experience are all important qualities, but not the most vital.

Honor and integrity influences a managers perspective of the value quality employees and strategic customers deliver. Managers tend to select, hire, and train employees much like themselves.

Customers and employees establish perception about managers. Perception establishes trust. Customers purchase from suppliers they trust. Employee performance grows from a manager they trust.

Management is responsible for expanding the capacity of the organization. Quality management creates an environment where the vision, mission, and core values of the organization are achieved. Management development programs help us to identify strengths and challenges of participants as an investment.

Communication

Superior managers are superior communicators. They excel in listening, oral, written, and image skills. They are timely with responses and requests. They are pragmatic and employ critical thinking with every conversation.

Communication establishes perception. Management development programs help build these communication skills. Expectations and processes are aligned with company vision, mission, and core values.

Organizational Structure

Management development programs help tame chaos. Activity driven organizations become more focused on objectives. Structure and processes eventually influence existing management and employees to upskill. Strategy and planning become commonplace activities, rather than an event. Key performance indicators become relevant rather than an exercise of futility.

Investment Return

When organizations invest in management development, they communicate a message of stability and vision. Leadership, culture management, and strategic planning deliver consequences for the organization. Each further the process of TEAM, innovation, and competitive advantage. They all contribute to a superior environment of quality, service, and value.

Article Summary

Companies are defined by management leadership. Superior EBITDA is a result. Customer and employee retention is a result of fair business practices and consistent communication. Company culture creates an environment allowing both management and employees to thrive. Effective strategy allows management to lead rather than firefight.

“The capacity of the organization is determined by the capacity of its leadership.”

Consider the capacity of your existing organization.  Then, consider your potential for growth. Finally, consider the strategy.

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