Companies Should Grow Their Own Leaders - firms should promote promising employees from within - Brief Article

USA Today (Society for the Advancement of Education), August, 2001

Forward-looking corporations can nurture their leadership development programs through adoption of a breakthrough succession management strategy called acceleration pools, says William C. Byham, chairman and CEO of Development Dimensions International, a global human resource consulting company specializing in leadership development and selection systems design, and author of Grow Your Own Leaders.

Acceleration pools are a systematic method for identifying and developing high-potential people for targeted levels of management, rather than specific jobs. In contrast to older programs, which often were available only to new college graduates or people with just a few years of experience, acceleration pools are open to "late bloomers" or leaders who join a company in mid-career. They accelerate development of high-potential people through stretch jobs and task force assignments that offer the best learning and the best opportunities for displaying abilities.

Organizations worldwide are facing a shortage of quality leaders at both executive and general management levels for a wide variety of reasons, including rapid growth, a surge in retirements, and increased turnover. Surveys show that about three-fourths of them are not confident in their capability to staff strategic leadership positions effectively over the next five years. One study by the Corporate Leadership Council found that many executives were held back by a lack of experience in crucial areas. For instance, two-thirds lacked experience leading a new business, a vital skill in a rapidly changing global economy. The results of the failure to develop new leaders are apparent. A survey by Manchester Consulting showed that four out of 10 senior executives fail within the first 18 months they are on the job.

Byham has an answer: improved succession management. "Succession management isn't just about a successor for the CEO. It's about building leadership `bench strength' across an entire organization. It's a myth that all leaders are `born, not made.' Many key leadership skills can be learned. And even natural-born leaders can improve their skills --with the latest and best development."

Succession management that focuses on internal candidates makes the process of filling positions more accurate and cost-effective. The strategy not only developes talent, but retains it by providing high-potential people with exciting new challenges and demonstrating to them that their best chance of success lies within the corporation. Finally, good succession management programs help focus leadership development efforts and resources on those who will benefit most.