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I. Introduction
In Class 7, we focused on developing general employee skills through T&D. Class 8 moves to a higher strategic level: ensuring the longevity and strategic direction of the organization by cultivating its future leaders. **Leadership and Management Development** focuses on preparing individuals to take on roles of increasing complexity and influence.
A strong organization does not wait for vacancies to appear; it **proactively builds a talent pipeline**—a ready source of qualified people who can step into critical roles, particularly in senior management.
II. Defining Leadership vs. Management Development
While the terms overlap, development programs often differentiate their focus:
A. Management Development
Focuses on improving the technical and administrative skills required to operate within the existing organizational structure. Key skills include planning, budgeting, organizing, controlling resources, and efficiency.
B. Leadership Development
Focuses on developing the ability to influence and inspire others to achieve a shared vision. Key skills include strategic thinking, change management, communication, motivational tactics, and innovation.
III. The Core of Development: The 70-20-10 Model
Effective management and leadership development rarely happen in the classroom. The widely accepted **70-20-10 Model** outlines where learning impact is greatest:
| Percentage | Focus | Methods (Examples) |
|---|---|---|
| 70% | Learning from **Experience** (Job-Related) | Stretch assignments, cross-functional projects, job rotation, handling crises. |
| 20% | Learning from **Others** (Social) | Coaching, Mentoring, 360-degree feedback, networking. |
| 10% | Learning from **Formal Training** (Structured) | Classroom instruction, online courses, degree programs, workshops. |
HR must strategically manage the 70% component by identifying and assigning high-potential employees to challenging job experiences.
IV. Strategic Process: Succession Planning
**Succession Planning** is the ultimate strategic HR activity in development. It ensures business continuity by identifying and developing future leaders who can seamlessly replace key role holders when they leave or are promoted.
Key Steps in Succession Planning
- **Identify Key Positions:** Determine which roles are critical for future strategic success (not just current senior roles).
- **Identify High-Potential Employees (Hi-Pos):** Assess current talent based on performance, potential, and cultural fit.
- **Create Development Plans:** Develop individualized plans (often using the 70-20-10 framework) to close the gap between the Hi-Po’s current ability and the required role competency.
- **Monitor and Review:** Regularly assess progress and update the pipeline based on organizational changes and individual performance.
V. Assessment Tools for Leadership Potential
To accurately identify and measure leadership potential, HR often uses specialized assessment methods:
- **Assessment Centers:** A structured, multi-day process where candidates participate in simulations, in-basket exercises, and group discussions, evaluated by multiple assessors. Highly predictive of managerial success.
- **360-Degree Feedback:** Collecting performance and behavioral feedback from peers, subordinates, supervisors, and customers to provide a holistic view of the leader’s impact.
- **Psychometric Testing:** Using tests to measure core leadership traits, emotional intelligence, and cognitive abilities necessary for complex decision-making.
VI. Knowledge Check: Class 8 Quiz (10 Questions)
Test your understanding of Leadership and Management Development!
1. The statement that Leadership is about **"doing the right things"** while Management is about **"doing things right"** refers to which key difference?
2. In the **70-20-10 Model of Development**, what does the **70%** primarily represent?
3. What is the main purpose of **Succession Planning**?
4. Which of the following is an example of the **20%** component (Learning from Others) in the 70-20-10 Model?
5. **Management Development** focuses primarily on which area?
6. A structured, multi-day development process where candidates participate in simulations, in-basket exercises, and group discussions, evaluated by multiple assessors, is known as a(n):
7. The first step in the **Succession Planning** process is to:
8. Which assessment tool provides a **holistic view** of a leader's impact by gathering input from supervisors, peers, subordinates, and sometimes customers?
9. Assigning a high-potential employee to a **stretch assignment** in a new department to build new competencies falls under which development method?
10. The development of skills like **strategic thinking, change management, and motivational tactics** is the primary domain of:
VII. Conclusion: Preparing for Tomorrow's Challenges
Leadership and management development is more than just running training classes; it is about mitigating risk and ensuring long-term competitiveness. By systematically building a robust talent pipeline through strategic development and succession planning, HR secures the organizational capability needed to navigate future challenges and execute complex business strategies.
Frequently Asked Questions (FAQ)
What is the primary difference between Management and Leadership?
Management is about planning, organizing, coordinating, and controlling resources (doing things right). Leadership is about influencing, motivating, and inspiring people to achieve a vision (doing the right things).
What is the 70-20-10 Model of Development?
This model suggests that effective development comes primarily from challenging assignments (70%), developmental relationships like coaching and mentoring (20%), and formal coursework or training (10%).
What is Succession Planning?
Succession Planning is the systematic process of identifying and developing high-potential employees to fill key organizational leadership positions should they become vacant.
Continue Your Learning: How do we measure the impact of our employees and leaders? The next class covers Performance Management!
Go to Class 9 | Performance Management Systems (PMS): Goal Setting and Feedback Models »
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