For years, organizations have lavished time and money on improving the capabilities of managers and on nurturing new leaders. US companies alone spend almost $14 billion annually on leadership development.1 Colleges and universities offer hundreds of degree courses on leadership, and the cost of customized leadership-development offerings from a top business school can reach $150,000 a person.
Moreover, when upward of 500 executives were asked to rank their top three human-capital priorities, leadership development was included as both a current and a future priority. Almost two-thirds of the respondents identified leadership development as their number-one concern.2 Only 7 percent of senior managers polled by a UK business school think that their companies develop global leaders effectively,3 and around 30 percent of US companies admit that they have failed to exploit their international business opportunities fully because they lack enough leaders with the right capabilities.4
We’ve talked with hundreds of chief executives about the struggle, observing both successful initiatives and ones that run into the sand. In the process, we’ve identified four of the most common mistakes. Here we explain some tips to overcome them. Together, they suggest ways for companies to get more from their leadership-development efforts—and ultimately their leaders—as these organizations face challenges ranging from the next demanding phase of globalization to disruptive technological change and continued macroeconomic uncertainty.
Last November, State Street (STT) introduced a new team-building exercise: The financial-services company hosted its own TED event, modeled on the conference series that promises “riveting talks by remarkable people.”
While TED speakers have included big names such as Bill Gates and Sheryl Sandberg, State Street drew upon its own pool of about 30,000 employees. “We had people from all geographies and all levels of the company,” says Hannah Grove, State Street’s chief marketing officer, who came up with the idea.
Run by the nonprofit Sapling Foundation, TED started out in 1984 as a one-off event. Its mission: to help spread ideas and bring together experts in technology, entertainment, and design.
Since the 1995 publication of Daniel Goleman’s bestseller, emotional intelligence has been touted by leaders, policymakers, and educators as the solution to a wide range of social problems. If we can teach our children to manage emotions, the argument goes, we’ll have less bullying and more cooperation. If we can cultivate emotional intelligence among leaders and doctors, we’ll have more caring workplaces and more compassionate healthcare. As a result, emotional intelligence is now taught widely in secondary schools, business schools, and medical schools.
Emotional intelligence is important, but the unbridled enthusiasm has obscured a dark side. New evidence shows that when people hone their emotional skills, they become better at manipulating others. When you’re good at controlling your own emotions, you can disguise your true feelings. When you know what others are feeling, you can tug at their heartstrings and motivate them to act against their own best interests.
Social scientists have begun to document this dark side of emotional intelligence. In emerging research led by University of Cambridge professor Jochen Menges, when a leader gave an inspiring speech filled with emotion, the audience was less likely to scrutinize the message and remembered less of the content. Ironically, audience members were so moved by the speech that they claimed to recall more of it.