Peak Your Profits: A successful company knows the importance of inspired leadership

Karen Lawson knows her stuff. She works daily with organizations that want to grow great leaders. The kind of leaders who inspire folks to maximize potential, drive results and outperform competitors.

Because of her success with companies big and small, Lawson was named one of Pennsylvania's "Best 50 Women in Business" in 2005.

Recently, we chatted about business and leadership — the opportunities and the challenges. Here are excerpts from that conversation.

Jeff Blackman: Why do you think corporate America is in a leadership crisis?

Karen Lawson: One word: shortsightedness. More than 70 million baby boomers will retire over the next 10 to 15 years. During that time, only 40 million people will enter the work force. We're already experiencing a talent shortage at all levels. If you look at the demographic makeup of the top leadership of many corporations, you'll notice the majority of executives and senior managers are around the same age. Baby boomers who currently head American corporations and institutions will be retiring around the same time.

These massive retirements will result in a leadership gap simply because organizations have done a poor job of preparing the next wave of leaders. There's little or no bench strength.

JB: So how do companies develop better leaders?

KE: There are four steps:

(1) Diagnose the business to determine priorities and specific issues important to the leaders, employees, customers and shareholders.

(2) Identify organization-specific leadership competencies, to take the company in the necessary and right direction, to achieve the desired business outcomes.

(3) Design and implement leadership initiatives, i.e., training and education; coaching and mentoring; succession planning; leadership development experiences; global learning assignments; and cross-functional rotations.

(4) Create accountability and evaluation for every initiative. Participants in leadership development programs must be held accountable for applying what they learned and demonstrating they're ready, willing and able to lead.

JB: What skill-set is crucial for successful leaders?

KE: The most important skill-set is people skills with communication in all its forms (including cross-cultural communication) heading the list.

Other skills include building relationships, influencing, motivating, coaching, supporting teams and inspiring employees through a shared vision.

JB: What are the tangible benefits of leadership development?

KE: There are several:

• Developing better leaders who will develop a strategic and more global perspective. This creates transformational versus transactional leaders.

• Creating a talent pool that can implement strategies and deliver results.

• Preserving or upgrading one's culture. Participants begin to identify themselves with the organization. They passionately embrace the company's vision, mission, values and goals. And, they're committed to creating and maintaining a dynamic, supportive and team-oriented culture.

• Attracting and retaining talent. Successful organizations attract successful people.

Organizations that value human capital recognize investing in high-potential leaders and managers is a key competitive advantage. Leadership development impacts the bottom line. Companies with strong leaders and leadership bench strength, outperform competitors and exceed in business goals.

JB: It seems as if effective leaders know how to deal with change. What's the checklist for implementing and helping others deal with change?

KE: Resistance to change is a major obstacle and challenge for every organization. Effective leaders are change agents who help others embrace change, or at least, accept it.

Here's how. Effective leaders:

• Think about how different people will react to and be affected by the change and try to put themselves in their shoes.

• Explain the reason(s) for the change.

• Communicate honestly how the change will affect those involved.

• Involve others in the change, by asking for input. Including problems it creates, new benefits realized and ways to implement the change.

• Plan how to introduce the change.

• Present the change by positively stressing the personal and professional benefits, advantages, opportunities and outcomes.

• Create an open forum for people to express their feelings, fears, issues and questions regarding the change.

• Help people adapt to the change, by providing ongoing information, training and support.

• Ask people for their assistance and commitment in successfully managing and implementing the change.

• Recognize and reward those who support the change.

Be sure to visit www.lawsoncg.com for more of Lawson's leadership lessons.