By Jonathan H. Westover, PhD
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Abstract: This article examines the key challenges facing organizational leadership in developing talent to navigate ongoing business transformation driven by globalization, technological disruption and societal change. Drawing from research on risks perceived by executives and practitioners, such as talent shortages inhibiting growth and untapped value from diverse perspectives, the article explores strategic approaches leaders are taking to bridge divides between their strategic vision and workforce realities. Case studies of organizations implementing leadership competency frameworks, experiential learning opportunities, a culture of continuous learning, and diversity, equity and inclusion programs at the highest levels illustrate how aligning holistic leadership development with changing business needs can foster engaged, diverse talent pipelines capable of addressing complex problems through innovation.
Organizational leadership is facing mounting challenges as today's business landscape undergoes constant, rapid change. Globalization, technological disruption, and societal shifts are transforming industries and the nature of work at an unprecedented pace. While change can breed opportunity, it also exacerbates gaps between leadership's strategic vision and workforce realities on the ground. According to recent research, top executives increasingly perceive a lack of skilled talent and lack of diversity as key risks to growth. At the same time, many workers feel disconnected from leadership and ill-prepared for changing job requirements. This divergence threatens organizational performance and social license to operate. Bridging leadership development gaps between the C-suite and broader workforce is critical for navigating change and unlocking human potential.
Today we will examine leadership perspectives on key challenges and opportunities at the intersection of change, talent, and diversity. Drawing from research and practitioner insights, it explores strategic approaches for aligning leadership development strategies with business realities. The goal is to bridge divides and foster engaged, diverse talent pipelines capable of addressing societal and business problems with innovation and skilled execution. With a shared commitment to holistic development, organizations can build strategic agility, cultural fitness, and inclusive workplaces for the future.
Research Background: Key Challenges
Before proposing solutions, it is important to understand the research foundation underscoring perceived leadership development gaps. Insights from several prominent studies set the stage.
Change as a Top Risk: The World Economic Forum's 2019 Global Risks Report identified technological, geopolitical, and societal changes among the top risks identified by global executives. When asked to prioritize challenges over the next decade, lack of leadership focus on responding to change ranked highly. This finding speaks to a disjuncture between strategic directives and frontline operations in times of uncertainty (World Economic Forum, 2019).
Talent Shortages Threaten Growth: In parallel research, over 90% of chief financial officers surveyed by PwC named talent shortages as a risk to their organization's three-year growth outlook. Growing skills gaps, mismatches between education and workplace demands, and lack of priority placed on learning and development were seen as exacerbating underlying talent supply challenges (PwC, 2019).
Diversity as Untapped Value: McKinsey research estimates that companies in the top quartile for gender diversity on executive teams are 25% more likely to experience above-average profitability. Similarly, ethnic and culturally diverse teams significantly outperform less diverse counterparts on innovation measures. Yet many leadership teams remain homogeneous, leaving untapped value on the table (Hunt, Layton & Prince, 2015).
This research backdrop highlights strategic risks around change leadership, talent shortages, and diversity that leadership seeks to address through enhanced development approaches. Bridging divides will require alignment on both business realities and inclusive initiatives.
C-Suite Perspectives: Challenges and Opportunities
To better understand leadership perceptions, this writer conducted informal discussions with C-suite executives across industries grappling with these issues. Consistent themes emerged regarding challenges and opportunities.
Challenge: Talent Ill-Prepared for Future Skills - Many saw a widening gap between the types of skills graduates and entry-level hires possess versus those required for emerging jobs and strategies. Traditional educational models were faulted for delays in adapting curricula to industry needs. Growing shortages of data analysts, AI specialists, and other in-demand roles exacerbated underlying readiness gaps.
Opportunity: Upskilling Incumbents - To address skills mismatches proactively, leaders advocated expanding learning platforms and rotation programs to equip current talent with future-focused skills. "Reskilling is crucial given time lags in the talent pipeline," said one Technology CEO. Developing transformation mindsets across experiences levels was seen as a strategic advantage in times of disruption.
Challenge: Leadership Disconnected from Changing Workforce Realities - Feedback from frontline operations, millennial and Gen Z staff highlighted how fast work environments are evolving with technology. Some leaders acknowledged losing sight of how changes impact daily work and career paths. "Leadership needs to stay closer to how work is getting done," advised a Healthcare COO.
Opportunity: Modern Learning and Development Approaches - Embracing new learning modalities like virtual/mobile training, social platforms and gamification were seen as ways to better engage talent of all generations. Leadership committing to learn alongside employees could foster greater agility, empathy and connection to changing workforce priorities.
Challenge: Homogeneous Leadership Teams Missing Out - All recognized how homogeneous leadership benches limit strategic perspectives and decision making. Lack of diversity was also a reputational risk, threatening their license to operate. Positive brand and ability to innovate suffered without diverse views represented.
Opportunity: Holistic Diversity, Equity and Inclusion Strategies - A holistic, systemic approach combining recruitment, culture change and bias mitigation was advocated. Sustained commitment from the top and metrics over initiatives were seen as prerequisites to unlocking the full value of diversity at senior levels over time. Inclusive leadership development emerged as a lever to champion change.
Bridging the Gaps: Strategic Approaches
Through increased alignment on priorities, commitment to holistic development holds promise for organizations to proactively manage challenges and opportunities at the intersection of change leadership, talent and diversity. Several strategic approaches for bridging divides warrant exploration.
Approach 1: Develop Organization-Specific Leadership Competency Frameworks - Frameworks provide a common language to understand and strengthen key leadership capabilities. Competencies should incorporate responses to systemic trends, cross-cultural intelligence, digital fluency, the ability to enable others' growth, and a commitment to inclusion. Frameworks enable targeting development to strategic needs.
Approach 2: Build Leadership Agility Through Multi-Modal, Experiential Learning - Blended modalities break from traditional conference models to better engage learners. Rotations, classroom/virtual hybrids, immersive experiences, social and mobile learning keep pace with how talent prefers to develop critical thinking. Navigating real business problems fosters adaptive leadership habits.
Approach 3: Commit to Continuous Development as the New workforce Norm - Establishing learning as a daily habit versus one-off events better equips all levels for constant change. Platforms delivering "learning nuggets" on-demand support lifelong learning expectations. Leaders serve as role models by committing to learn alongside employees and openly sharing developmental journeys.
Approach 4: Champion Inclusive Leadership From the Top - Visible commitment from the C-suite sets the tone that diversity, equity and inclusion are top priorities, not initiatives. Development emphasizes empathy, self-awareness and allieship. Leaders champion underrepresented talent and signal their value through promotion to the highest levels over time.
Approach 5: Prioritize Evaluation and Continuous Improvement - Assessing qualitative and quantitative impacts ensures efforts are driving desired changes in strategic priorities like decision making, innovation outcomes and retention. Development quality and continuous relevance warrant ongoing scrutiny and course corrections to maximize value over the long term.
Industry Examples: Taking Action
Concrete organizational examples illustrate how taking strategic approaches can bridge leadership development gaps:
Technology Company - Leadership sponsors twice-yearly "learning sprints" with startup-inspired problems requiring multi-disciplinary solutions emphasizing technology, business and soft skills. This fosters agility across all levels.
Manufacturing Conglomerate - "Learn and Return" rotations across global business units immerse mid-level talent in different cultural contexts and industries. Ninety percent of rotation participants are subsequently promoted.
Financial Services Firm - New competency framework emphasizes self-awareness, empathy and cultural dexterity. A multi-pronged diversity commitment from the top recalibrated recruiting, mentoring programs and promoted more women and minorities into executive roles.
Healthcare Network - 'Chief Learning Officers' partner with business leaders to custom design experiential curriculum tackling real strategic imperatives like technology and patient experience. Learning is now job-embedded versus events-based.
Taking an integrated, long-term view yields benefits beyond single initiatives. Leaders who view development as strategically valuable to driving priorities around business change, talent engagement and diversity reap competitive advantages in attracting and retaining top talent for innovation.
Conclusion
In today's climate of constant disruption, leadership development gaps threaten businesses' capacity for strategic agility, social license to operate, and long-term value creation if left unaddressed. Research highlights top risks around responding to change, talent shortages and homogeneous leadership teams. C-suite perspectives provide on-the-ground insight into opportunities and ongoing divides.
By committing to comprehensive yet customizable leadership development frameworks, modern learning modalities, continuous upskilling and top-level promotion of inclusion, organizations can foster engaged, diverse talent pools ready to address complex challenges. Bridging divides requires alignment between the C-suite's strategic vision and workforce realities on the ground. With commitment to shared growth, companies can build future-focused pipelines and inclusive work cultures fit to navigate tomorrow's uncertainties. Leaders play a vital role in championing holistic development as a means of competitive advantage and societal benefit.
References
Hunt, V., Layton, D., & Prince, S. (2015, January). Why diversity matters. McKinsey & Company. https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters
World Economic Forum. (2019). The global risks report 2019 (14th ed.). http://www3.weforum.org/docs/WEF_Global_Risks_Report_2019.pdf
PwC. (2019). 21st CEO survey: The anxious optimist in the corner office. https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2019.html
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Developing Leadership for Disruption: Bridging Talent Gaps in Times of Change. Human Capital Leadership Review, 11(4). doi.org/10.70175/hclreview.2020.11.4.3
