Max Dupree stated, “Everything rises and falls on leadership”. I became convinced of this statement and I have pursued leadership ever since. Unfortunately, leadership is one of the intangible things in life you only notice if it is not present and is often taken for granted when it is extant.

People who hold positions or the responsibility of leadership immediately have the burden of ‘high expectations’ placed upon them. It ‘comes with the territory or it comes with the chair’ are phrases often used to describe the pressure that accompanies the title of being labeled a ‘leader’. Awkwardly, many of us soon realize we are unprepared to lead effectively in our new responsibilities.  Others, who are aggressive and desire to lead, but who are unequipped, are just as ill-fated because they too lack the skill set necessary to lead. They are like the dog that kept chasing the cars and when the dog finally caught one, he wasn’t sure what to do with it. Many people who are full of promise and potential feel exactly like dog, they want to be leaders and when they get the job or responsibility, they don’t have the “right stuff” to be effective.

An analogy contained within this leadership crisis is the high expectation we place on ourselves to handle conflict well. Yet, with few exceptions, no one has ever equipped us to handle conflict correctly, yet the expectation is both powerful and prominent in our minds and culture.

There are other common occurrences within this leadership crisis that are worth mentioning. Sadly, we have all witnessed teams crumble and give way to the nastiness of negativity. This occurs often when the manager/coach does not communicate effectively, define roles or deal with conflict in a swift but positive way. I’ve observed projects fall far short of the intended objectives and listened in the aftermath to the inadequate “Peters” rationalize how difficult it was and the project was really ‘doomed from the start’.

I am absolutely convinced that everything does rise and fall on leadership. However, if you only believe this statement to be partially true, then an intentional process of identifying, equipping and investing in future leaders from within your organization is still essential to the success of your team. To adequately prepare for the future, organizations should have a consistent pipeline or pool of leadership talent at their disposal. If the ‘farm system’ is plentiful and the prospects have been equipped, then a corporation, small business or a nonprofit should for the most part have who they need when they are needed. Logically, it would be less challenging to maintain the integrity of a culture and insure the legacy of a company without the constant influx of the uninitiated.

The value and ROI of an intentional leadership development process will have direct impact in at least three areas in regards to the present:

1. Retention                    2. Effectiveness & Productivity                  3. Bottom-lineThe

Harvard Business Review has published several studies that point out that retention rates go up by as much as 73% overall with businesses that have an intentional leadership enhancement process.  Research by Bersin and Associates demonstrates that enhancing the leadership capabilities of internal staff is more cost effective than hiring external staff. Generally speaking, outside staff is more expensive than promoting internally. The advantage of familiarity with the internal culture is a positive as well; the internal candidate should have healthy relationships in place.

However, the concept of leadership enhancement is not just about creating an incubator for developing leaders; it is about creating a culture of effectiveness that leads to productivity. Leaders lead. Leaders expect and want things to change for the better. Leaders want to go to the next level. Leaders want to push and create something new.  Leaders are productive. Leaders are effective. Leaders lead and when they do, effectiveness and productivity increase.

The savings generated by a Leadership Enhancement process on retention, reduced training for new (replacement) hires, and the ability to keep great leaders in house all impact the bottom-line in a calculable and positive way. A study published by Laurie Bassie concluded that “Companies with high scores for investment in human capital (Leadership Enhancement) delivered stock market returns that were three to five times higher than that of companies with less emphasis on human capital.” The ROI of an intentional leadership process is a multiplying dividend and is simply stated, long term smart.