How Strong is the Link between Leadership and Organisational Success?

(Report Date: January 2007, Full Report: 20 pages)

Summary

There is no doubt that a correlation exists between corporate leadership and organisational performance.  A benchmarking study by Development Dimensions International (DDI) found that leadership skills, leadership development programmes, and selection and placement decisions have a considerable impact on the bottom-line figures of an organisation, including revenue growth, productivity, profitability and market value.

However, although most organisations seem to acknowledge the correlation between good leadership and a healthy bottom line, they remain confused on two fronts:

(1) What exactly constitutes good leadership? i.e. What are the components of an effective corporate leadership strategy?
(2) How does each of these leadership components influence organisational performance?

This report lists the main components of an effective leadership strategy and explains how each of these components is tied to business performance.  These components include leadership development, global experience, vision and strategic thinking, high-level communications, calculated risk-taking, effective change management, and much more…

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