In 2019, the global cost of training leaders was impressive $ 370 billion. However only 14% of CEOs feel they have the leadership talent needed to implement business strategies. Even when these investments are made, many leadership development programs are not achieved. But learning does not always lead to better organizational performanceand people are going back to the old ways of doing things.
Part of the reason for this is that they do not include an important component of successful leadership development: failure thinking. Breaking a leader’s mindset is a critical first step toward changing behavior and organizational performance. Leadership development programs need time for leaders to set priorities for new or other behaviors.
The best way to solve this problem is to incorporate business modeling and leadership simulation into leadership development. These simulations put leaders in real situations, forcing them to struggle with different approaches. They serve as a bridge between concept and application – and can be used in virtually every industry to help shape and shape the future of the workforce.
Here are some benefits of an experienced and model-based approach to leadership development:
1. It catches leaders in being themselves.
Leadership development is not that difficult. Techniques and skills are relatively simple, and people with intelligent abilities don’t need much to catch up. What is much harder for leaders is to recognize how they are currently behaving at key moments – and the impact of their behavior on the success of the organization. Simulations do a great job of reflecting how leaders behave in pressures. Raising the mirror of what they and their peers are doing today is an important first step in leadership development and can be a catalyst for much-needed changes in their thinking and behavior.
2. It forms a shared memory of the future.
The behavior change introduced during simulation persists in the real world much longer than traditional leadership development. This is partly due to the triggers that people encounter in the simulation. They are often the same as in their daily lives. People feel the trigger, react, then witness the result.
This establishes what Arie de Geus calls shared memory in “Living Company: Growth, Learning and Longevity in Business”. People are formed shared memories around this series of events and how the cohort reacted. When you return to the real world, these changes in behavior persist. Leaders remember the potential outcome of an action before they commit it.
3. It creates psychological security.
Simulations are most effective when they are designed to reflect the organization and the tension it will face. Leaders discuss and respond to realistic situations in a safe space, allowing them to experiment and try things that they would not be confident enough to try in the real world. In essence, it gives them space to practice leadership without the pressure of real action.
4. It encourages hyper-engagement.
Business simulations allow for peer-based social learning. They provide an opportunity to learn in terms of peers and reactions to the situation. Competition is often introduced into sessions. Leaders compete to outdo each other – and they become over-engaged and have fun.
Business simulators put leaders in realistic situations they will experience and allow them to work through these situations with peers while feeling the impact of different approaches. Many participants believe that such an experience is not like leadership development – it seems that they receive help and practice in running their business, and they are grateful for it. When all is said and done, it can be the best testimony of all.