I spent a significant part of my working life developing leaders in organizations. What strikes me is that during COVID-19 the demand for this type of work has not decreased; if anything, the demand for leadership development has increased. That is remarkable. During the financial crisis in 2007-2008, for instance, most companies tried to save money, and one of the first things they considered was decreasing the out-of-pocket costs associated with these, and other kind of developmental activities.
Recently I was asked why companies continue to invest in the quality of their leadership at all levels of the organizations, despite the economic uncertainty they are facing.
In my opinion, the reason is that companies have come to realize the growing importance of the quality of leadership at all levels of the organization. I believe that this is a good thing, especially because leadership roles have become more demanding in the last couple of decades, not only for senior leaders, but also for first, and second-level leaders in organizations.
A couple of days ago my bible app opened with this verse of the day: ‘To do righteousness and justice is more acceptable to the LORD than sacrifice’ (Proverbs 21:3).
This text reminded me of the way some companies deal with Corporate Social Responsibility (CSR). Rather than doing the right thing, they do the wrong thing and compensate for this by deploying CSR initiatives. There is even a special term describing this phenomenon: ‘Greenwashing’. In this context, it is no wonder that two professors from IMD (a leading Swiss Business School) published an article in 2018 with the provocative title: ‘Why nobody takes corporate social responsibility seriously’.
In the 1970s and 1980s, authenticity and self-development in the workplace were considered to be important by many middle and senior managers in the Western world. Perhaps too important: organizations were sometimes seen as narcissistic vehicles for self-development, instead of entities that should serve the interests of their shareholders and/or other stakeholders.
This orientation changed dramatically in the first half of the 1990s. Two popular business books that were published during that time perfectly illustrate this change. The first one was ‘Valuation’ (1990), a book written by Copeland, Koller and Murrin (three McKinsey consultants), the second one ‘Emotional intelligence’ by David Goleman (1995).