If your organization is like most, you’re probably spending a lot on leadership development—and you might even be thinking it’s not enough.
estimated value of the leadership development industry
Leadership development is estimated to be a $366 billion industry, with at least $166 billion in annual spending in the United States alone.1,2
Motivated by the challenge of developing next-generation leaders, at least 94% of organizational decision-makers plan to maintain or increase their leadership development investment.3
That’s because their current efforts aren’t working. Leadership development is broken.
Just 10% of CEOs say their leadership development programs have a clear business impact.4
A mere 11% of organizations have a strong bench for succession planning,5 and only 28% of HR professionals consider their organizations to have high-quality leadership.6 Meanwhile, employees . . . well, we’ll spare you the statistics, but they don’t tend to think highly of their bosses.
of decision-makers plan to maintain or increase their leadership development investment
of CEOs see leadership development program impact
of organizations have a strong succession bench
of HR pros report high-quality in-house leaders
of leadership development programs use personality or 360-degree assessments
This is not to suggest that Hogan’s personality assessments are the perfect solution to your leadership development woes.
Assessments, including personality and 360-degree assessments, are already among the top three leadership development program offerings, used by at least 70% of programs.7 Instructor-led training and executive coaching are up there too (used by 74% and 63%, respectively).3
So, what is the problem, then? Where is the return on investment? And what can you do to empower your leaders to succeed?
Unfortunately, we can’t tell you any singular problem is to blame. But in reviewing our decades of experience helping organizations throughout the Fortune 500 with leadership development, we’ve managed to diagnose some common causes.