Articles & Publications

Six Reasons Companies Develop Leaders in a Downturn
By Nancy Yahanda

As stated recently in the Wall Street Journal (Feb. 9, 2009), high performing companies such as Philips Electronics and Canon USA are continuing to invest in developing leaders, especially in an economic downturn. Here are the reasons YAHANDA group clients tell us that leadership development is a strategic imperative, now more than ever:

1. It sends an immediate message of commitment to high performing, mission-critical leaders.
   While they implement cost containment initiatives and, in some cases, workforce reductions, organizations know that it is the most highly valued leaders who are often the most alert to signs of lack of commitment from their organizations.
2. It builds organizational capability, beyond the downturn.
   Building organizational strength beyond the downturn is still a concern, and by continuing to prepare leaders for future roles, companies know they will have succession candidates in time for future needs.
3. It deepens employee engagement.
   Recent research confirms that there is a direct link between investing in development and in enhancing employee morale and engagement.
4. It instills specific leadership competencies and skills to drive performance in a downturn.
   Many companies are identifying the leadership shifts needed to support the breakthrough changes needed in the business and leveraging their leadership development and coaching initiatives to drive these shifts.
5. It gives senior leaders the impetus to define what truly matters most in terms of strategy and organizational priorities.
   Some companies are leveraging their leadership development programs to reinforce their core values, clarify what is changing and what is being preserved, and cascade information down in a clear and consistent way.
6. It gives organizations an opportunity to make leadership development even more relevant and focused to business needs at this critical time.
   Some of the shifts we have heard about include: having the senior leaders of companies deliver the leadership programs themselves; tailoring content to the most relevant issues; providing team coaching in an action-learning context; and engaging in distance learning and coaching to reduce costs where appropriate.