Quite a few organizations make the mistake of eliminating or cutting back on leadership development efforts when the economy gets bad. Leadership training programs are often the first thing to be eliminated and the last thing to be restored when the budget cuts start.
Cutting back on leadership development efforts during a bad economy is a terrible mistake. Organizations and companies need visionary leadership in a bad economy. Yet they refuse to pay for the tools needed to develop such leadership.
The challenges are greater than ever but the leaders needed to guide companies and agencies through the economic challenges may not be there. To make matters worse there could be little or no money to use to lure effective leaders in from the outside.
That means organizations will need to make due with their existing employee bases. It makes sense to give those employees the training and tools they need to become effective leaders. It also makes sense to have a cadre of trained leaders that are willing to step up and take command when the going gets tough.
Leadership development and leadership training are not luxuries. No company or organization can survive without leaders and leadership. So it makes sense for an organization to increase its investment in leadership development during a bad economy.
Such efforts will show employees that they are valued, and give the most creative and successful workers a reason to stay even if salary increases are not available. Workers who know that their loyalty and hard work could be rewarded with a leadership position are more likely to stay. Workers who think that leadership roles are reserved for outsiders will start sending out resumes.
Leadership development is vital to the survival of any organization and cannot be ignored even in today’s poor economy. Those organizations that spend money and resources developing new leaders will thrive and succeed in the years ahead. Those that do not will perish.