Effective senior leadership is a critical factor in determining organizational success. Research published in the Journal of Applied Psychology concluded that CEOs have tremendous impact on the functioning of their top management teams through the creation—or suppression—of an atmosphere where others are encouraged to succeed.¹

For example, a CEO who regularly suggests that no one’s job is secure creates an atmosphere of distrust and double-dealing among senior managers. On the other hand, a CEO who understands and accepts the occasional, reasonable mistake creates an atmosphere that encourages moderate risk-taking and collaboration among senior managers. These alternative environments of distrust versus collaboration have tremendous impact on the culture of the organization as a whole and subsequently on its performance.

¹Peterson, R., P. Martorana, D. Smith, and P. Owens. "The Impact of Chief Executive Officer Personality on Top Management Team Dynamics: One Mechanism by Which Leadership Affects Organizational Performance," Journal of Applied Psychology, Volume 88, No. 5, 795-808.

While the high visibility impact of senior leadership is easy to observe, the impact of frontline leadership is more difficult to see on an organizational level. The impact is still present—and just as strong—but at an individual level. Employee job performance and satisfaction are heavily influenced by the levels of direction and support employees receive on a day-to-day basis. Poor leadership does not just hold employees back from reaching their full potential within an organization; it sends them in the wrong direction and seriously impacts morale, employee retention, and financial performance in the process.

Frontline leaders who can adapt their style to the development level of the people they manage are the most successful. For organizations, this means developing leaders who can effectively diagnose an employee’s commitment and competence for performing a specific job function and then being able to provide them with the right amount of direction and support to complete the task successfully. This ability to consistently and effectively apply the right leadership style to the unique needs of each direct report is the key to successfully moving people from enthusiastic beginners on a specific job function to self-reliant high achievers.

In interviews with The Ken Blanchard Companies over the past three years, organizations have assessed their employees at being somewhere between these two points of development at a level of performance described as capable, but cautious. These companies have also determined that this level of performance translates into only a moderate level of job productivity. Most surprising though is that most of these same companies do not have a plan in place to move employees to the next level.

To create and maintain lasting improvement in leadership capacity, organizations need to have a well-thought-out and consistently applied leadership development program in place. There are four components that The Ken Blanchard Companies feel need to be addressed in developing a successful program.

1. Set the context for the training. Get top management buy in by showing how the proposed leadership development initiative ties into the organization’s overall goals.
   
   
2. Acquire the concepts and the skills. Choose a leadership development program that engages people in the learning process.
   
   
3. Practice new skills and behaviors. Give learners a chance to practice new skills in a safe environment. Conduct simulations and role-plays in the classroom—or online at first—but then move into real-life work situations.
   
   
4. Apply the new skills and behaviors. Follow up to make sure that training is being applied back on the job. Offer coaching to support learning and provide online or off-line reinforcement and sustainability tools.

Each month The Ken Blanchard Companies® offers free webinars on improving organizational performance. This month we are featuring Scott Blanchard, Executive Director of Blended Solutions and Coaching who will speak on the impact of leadership.

The Impact of Leadership on Organizational Success
Wednesday, February 16, 2005
11:00 a.m.–12 noon Pacific Time (2:00–3:00 p.m. Eastern)

In this webcast, Scott Blanchard looks at the impact that leadership has on organizational performance. Combining insight gathered from research studies and from real-life experiences over the past 10 years, Scott will address the four key issues that all organizations need to explore in their pursuit of improved performance.

Public Workshop & Training for Trainers
March 15-16, San Diego, CA
June 13-14, Orlando, FL

What in the world does the training of killer whales have to do with motivating, developing, and managing people?

More than you might think! Both whales and humans perform better when you accentuate the positive. In this 2-day workshop—or 3-day Training for Trainers session—Blanchard Consulting Partner and author Cathy Huett equips you with the tools you need to build trust, increase productivity, and create high commitment within your organization. You’ll learn how to motivate and retain your best workers, promote positive customer relationships, and sustain your competitive advantage in the marketplace.