Fast Company

Why cutting leadership development now will cost you later

Jane's firm faced increasing operational issues and senior leader involvement due to expanding roles and AI-driven changes. The CEO shifted the leadership development budget, but this decision created challenges. This led to a need for new leadership skills that technology cannot replace. Organizations are reducing development even as demands increase. Companies that sustain performance invest in leadership development even during pressure. Leadership development needs to be reframed as a business risk because it impacts decision-making and execution. Implementing proof systems, with targeted experiments, is more effective than broad programs. Embedding leadership investment in the operating model, rather than initiatives, is crucial for sustained success. Jane reframed the conversation by connecting leadership development to commercial terms and performance. This approach changed the perception of leadership training. Investing in human capital provides significant revenue growth and earnings stability. Focus on making leadership development a strategic and integrated part of operational processes.
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