There is unequivocal evidence in every sector that there is
a strong relationship between leadership capability and performance.
Good
leadership leads to a good organisational climate and good organisational
climates lead, via improved staff satisfaction and loyalty, to sustainable,
high performing organisations.
The impact of good leadership on organisational performance
as measured by the business and commercial success is extremely well evidenced:
- A study in the Harvard Business Review (Bassi and McMurrer 2007) provides a strong link between leadership skills and the bottom line.
- The Institute for Strategic Change reports that the stock price of companies perceived to be well-led grew 900 per cent over 10 years versus 74 per cent for companies perceived to lack good leadership (2008).
- The Corporate Leadership Council estimates that employees working for good leaders put in 57 per cent more effort and are 87 per cent less likely to leave than those with poor leaders.
- The Hay Group study of 2012 demonstrated that the top 20 companies for leadership had a 36 times better shareholder return over a 5 year period than the companies with the poorest leadership.
- Murray Dalziel, Director of Liverpool Business School summarises: “There is incontrovertible evidence from the academic literature that leadership makes a difference. Across a wide range of industries about 15 per cent of the variance in performance can be directly attributed to CEO performance. This figure has been constant for over 25 years.”
No comments:
Post a Comment