Leadership Development

6 Reasons Why It Is Important to Invest in Leadership Development

No organisation can function successfully without the guidance of good leaders. The impact of these individuals who take the lead can make or break a company, inspire greatness amongst its employees, and set an organisation apart from any and every competitor. This is why it is in the best interest of any and every organisation to make provision for continual leadership development.

The value of investing in the development of good leaders is succinctly captured in the wise words of American attorney and former politician.

"True leadership lies in guiding others to success – in ensuring that everyone is performing at their best, doing the work they are pledged to do and doing it well."
Bill Owens

In fact, according to American author John Maxwell, this is the most important investment one can make to cultivate a culture of success and set a company’s trajectory for success. In his words, “The single biggest way to impact an organisation is to focus on leadership development. There is almost no limit to the potential of an organisation that recruits good people, raises them up as leaders and continually develops them.”

So, what is it that makes leadership development such an important function? How does it impact the business?

Here is a summary of the top six reasons why it is vital for the growth and success of an organisation:

Increase Productivity

Ultimately, a great leader will increase the productivity of a team, and thus the organisation as a whole. This is because a good leader possesses the necessary emotional intelligence to be empathetic towards their people, allowing them to engage and empower employees. This, in turn, boosts the efficiency of your team.

Increase Bottom Line

Better leaders are more adept at building the capacity to reduce operational costs, identifying and driving new revenue opportunities, and improving customer satisfaction. Combine this with an increase in productivity as mentioned in the previous point, and you have a guaranteed recipe to improve your bottom line.

Improve Employee Engagement

Studies have repeatedly shown that the more feedback employees receive on their performance, the more engaged they are in their roles and work. Effective leaders have the ability – and realise the value – of giving feedback to their team in the form of constructive commentary and praise, as necessary.

Attract and Retain Top Talent

Each organisation wants to have the best talent on their team to assist with their performance. Additionally, an organisation also wants to retain its talent, as recruiting and replacing employees is a costly and time-consuming affair. Awareness of great leadership spreads quickly in the industry and is the main consideration for many employees.

Make Better Decisions, Faster

The more skilled and experienced a leader is, the better they can assess situations, evaluate solutions, and identify opportunities. They also tend to have the trust of their team. All of these features combine to enable these leaders to make better decisions in less time. Ultimately, the team looks to their leader for guidance, and decision-making is a vital part of this guidance.

Be Better Prepared to Navigate Change

Hand in hand with the previous point is the ability to navigate change. The marketplace and business environment are subject to constant changes, and a good leader has the ability, confidence and intelligence to steer their team through these challenges with great success.

Now that you are aware of the benefits of leadership development it is also important to note that the impact of this investment depends very much on the way that this training is done. At this level of an organisation, it is simply not enough to merely provide your top talent with access to a short part-time course. You require a solution that is participative and collaborative in nature, and which focuses on developing the performance of the individuals involved.

organisational development

In the leadership development programme offered by Orgro, we first establish goals and objectives with each individual to agree on a mutual direction. From here, we customise coaching methods and strategies to suit the needs of the individual to ensure that optimal results are achieved to benefit both the person and the organisation. Contact us to find out more about our courses and how your company can benefit from this professional partnership.


You require a solution that is participative and collaborative in nature, and which focuses on developing the performance of the individuals involved.
By Orgro

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