The 5 Elements of a Strong Leadership Pipeline

Investments in traditional leadership development are often misguided and a waste of money. It’s not that development itself isn’t important. But there’s little evidence that much of it works. I’ll share some findings from a study my colleagues and I just completed at Deloitte. We surveyed and interviewed executives from more than 2,000 companies, asking extensive questions about how they develop leaders, how their companies are managed, how they coordinate their work, and what their organizational culture looks like. We mapped this data against dozens of financial and leadership metrics, clustering companies into four groups (ranging from low- to high-performing). Unlike other studies in this vein, we didn’t examine leadership development, per se — we analyzed the impact of different management practices on business performance as a whole. Here’s what we learned about companies that have strong leadership pipelines and strong financial performance.

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