Invest in Leadership Development
Written By Dick Massimilian
Published Spring 2021
ESG (environmental, social and governance), says The Financial Times, is “a general term used by investors to evaluate corporate behavior and to determine future financial performance.” BlackRock CEO Larry Fink has predicted that in the near future, “all investors will be using ESG metrics to determine the value of a company.”
The “S” is particularly important to companies in which human capital—attracting, developing and retaining the best people—is a critical source of competitive advantage. Even if you have a rock-solid commitment to your leaders, how do you demonstrate that?
Invest in Leadership Development
One way is to invest in leadership development—visibly. Make long-term strategic investments that demonstrate real-time commitment to your people. As HBR noted in October 2020, “Positive employment impact (measured by, say, resources spent on employee training) sends investors a strong signal that management views employee expenditures as investments that lead to future profitability and not merely as expenses.”
In the Covid era, one choice is to pull back your investment in leadership. The other is to boldly invest in leadership development programs to help your people meet the challenges of these times.