Is it really important to invest in leadership development?

leadership development training

Investments in leadership development are essential for the long-term success of a company and form the basis for competitive advantages. A consistent and intensive leadership development strategy becomes the supporting pillar of a high-performance organization.

Why is leadership development so important for the economic success of your company? In the following note, we will show four reasons you should strengthen leadership development in your company.


1. Leadership development strengthens the economic development of companies!

To pursue financial goals, well-trained managers with an eye for human and economic potential are needed. Investments in leadership development mean investments in the human capital of a company. Even if we are not friends of the term “human capital”: a sustainable development program for leaders strengthens their competencies and promotes their talents. Ultimately, managers with a deep understanding of economic complexity, a sensitivity for leadership and an analytical eye for internal problems and causes will make better decisions for the entire company. And reflected, conscious and competent decisions are worth their weight in gold in the truest sense of the word. In this way, leadership development has a direct impact on the balance sheet.

2. Leadership development attracts talents!

Employees don’t want to have bureaucratic brakemen as superiors. What you need are contact persons at eye level, supporters with an understanding of their own talents, facilitators of their ideas. If they don’t get this, their commitment will diminish or even worse, they will leave the company and with them their talents and knowledge. There are other ways to do this: investing in leadership development makes it possible to train those responsible. A strong development program aims to make management more potential-focused, people-oriented, entrepreneurial and agile. In the “War for Talents” you can score with the best managers, because Generation Y is looking for development opportunities and these can only be offered to them by well-trained managers; they know that they are in demand as coaches, potential developers, context designers and service providers. This is how leadership development strengthens your employer brand. If you only have bureaucratic superiors, you don’t have to be surprised about bad ratings on Glassdoor.

3. Leadership development promotes strategic development and implementation!

Well-trained managers communicate better and more consciously, can inspire employees, network knowledge, promote organisational development and make use of a variety of perspectives. This helps them to better adapt strategies to the organization and to integrate employees in a strategy development process in a meaningful way. Their communication and organizational strength helps managers to put strategies into practice, inspire employees and accompany the implementation. Leadership development helps managers to build a better understanding of employees, culture and competition and to develop strategies that are market and resource-oriented. Gone are the wasteful, impractical or exploitative strategies of the past.

4. Management development enables agility and adaptability!

A good leadership development program helps to strengthen leadership skills at all levels of your company. In the event of a crisis or an unexpected change in competition, you will always be in a better position if all those responsible in your company can think systemically, act agilely and react in a targeted manner. Building leadership competence in all areas of your company and thus fostering the leadership talents of your organization, this is one of the best methods to avoid chaos in times of crisis. Leadership development thus becomes a competitive advantage because you can react faster than others to changes and actively drive market development.


Leadership development is worthwhile. By investing in a cross-hierarchical leadership development program, you improve the leadership competence of your entire company, support reflected decision-making, enable the consistent implementation of market and resource-oriented strategies, support your employer brand and strengthen your economic development.

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Published by Dave John

Decade of work experience in leadership consulting with strong focus on talent acquisition & assessment across different industries and geographies.

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