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With noble intentions, organizations in the United States spend nearly $200 billion dollars on leadership training. So now that we have that on the table, why is leadership development so essential for success?
Most of us who spend our lives in organizations find a routine we can comfortably settle into, doing our work to the best of our ability. But if leadership is about how to transform human potential into organizational results, we should all be paying attention.

A recent study conducted by the Society for Industrial and Organizational Psychology shows that successful organizations actively engaged in leadership development found the “average investment in those activities was $500,000 with an average ROI of $1,000,000. Think about it this way: A company that desires to enrich its culture by focusing on the development of its employees will cultivate committed, courageous, educated, innovative, effective, empowered, futuristic thinking people working in an organization that supports them to transform, grow, problem-solve, and perform beyond the norm, yielding improved global competitiveness, increased profitability and expanded shareholder value. Returns manifested in improved global competitiveness, profitability, sales and shareholder value,” illustrating the extensive benefits of investing in leadership development. We must instead develop people to lead – a subtle yet essential distinction to which Forbes contributor, Mike Myatt, would agree.
Unless we work in HR or some similar department, rarely do we concern ourselves with things like organizational capability, productivity, culture, performance and (perhaps least of all) leadership.

This same research also shows that “the impact of a leader is not fully realized in the organization for about three years; so patience is necessary when evaluating and realizing the full effects of leadership development investments”. In his December 2012 blog, Myatt points out some of the main differences between training and development.

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