Transforming Leadership Development: Implementing A 5-Star Approach

By Lauren Herring, CEO of IMPACT Group

Now is the time for organizations to elevate their approach to leadership development, particularly in leadership coaching. CEOs are issuing a clear mandate: fix the talent shortage. To achieve this, we must move beyond traditional executive coaching and development programs that cater only to the chosen few. It’s time to develop managers at scale, to build a culture that attracts talent equipped to navigate the transformative changes of the 21st century.

According to a recent Gartner survey of CEOs, attracting and retaining talent ranks as their top workforce priority and the most damaging risk facing organizations today. Addressing this challenge requires a shift in organizational culture and leadership development. Leaders who fail to communicate effectively or foster an inclusive culture contribute to frustration, disengagement, and ultimately, turnover.

To successfully attract and retain top talent, businesses must actively counter negative perceptions of their corporate culture. Such perceptions often include:

• My boss doesn’t care about me.
• My boss doesn’t invest in my growth.
• The organization has no plans for my future.

While some organizations are embracing the emerging trend of “unbossing” to create a flatter organizational structure, it’s important to highlight the indispensable role of a boss. Research from Staffbase confirms the vital role supervisors play as the primary source of company information.

But is it really vital to upskill frontline and middle managers? A GoodHire survey indicates that 82% of employees would consider quitting because of an underdeveloped manager.

By developing more rising leaders—those below the executive level—organizations gain a dual retention advantage. First, managers participating in development programs feel more positive about their future within the company, increasing their likelihood of staying. Second, better managers—acting with enhanced communication skills and empathy—foster a culture of trust and collaboration, further boosting talent retention across the organization.

Leading in a Complex and Rapidly Changing World

As organizations invest heavily in transformative technologies like AI and cloud computing, the pressure on leaders to deploy these projects successfully intensifies. According to McKinsey, 70% of business transformation efforts fail.

Decision-making cannot be entrusted solely to machines, highlighting the importance of human-driven leadership. However, many organizations continue to rely on outdated leadership development models that do not equip all leaders with the tools necessary to thrive in this evolving landscape. This misalignment can lead to failed projects, wasted resources, and missed opportunities for innovation.

Investing in technology alone will not ensure your company’s future success. It requires people with the right skills to engage in the mission and overcome obstacles.

Three Dimensions of Effective Leadership Development

To effectively cultivate leaders who can drive meaningful results and foster a people-centric culture, development programs must excel in three key areas:

1. Perceived Value: The perceived value of a program signals to employees whether their development and ongoing employment are priorities for the company. Significant investment fosters a genuine sense of commitment.
2. Effective Skill Development: Programs must equip leaders with the necessary skills to navigate the complexities of their roles. Knowledge alone is insufficient; programs must prioritize behavior change over traditional content delivery.
3. Scalability: Leadership development should extend beyond a select few at the top, engaging leaders at all levels to propagate a strong, people-magnetic culture and competencies for leading through technological transformation.

Let’s evaluate traditional leadership development methods against these three criteria and assign scores on a scale of one to five:

Executive Coaching:

• Perceived Value: 5 stars
• Effectiveness: 5 stars
• Scalability: 1 star

In-Person Workshops:

• Perceived Value: 4 stars
• Effectiveness: 2-4 stars (retention wanes post-workshop)
• Scalability: 2 stars

Online, Self-Directed Learning:

• Perceived Value: 3 stars
• Effectiveness: 3 stars
• Scalability: 5 stars

Individually, none of these modalities constitutes a “5-star solution” across all three dimensions. But what if we combined executive coaching with online learning?

By merging these two modalities, organizations can create a highly valued, effective, and scalable solution for all leaders. While online learning presents an affordable avenue for developing frontline leaders, it often falls short in driving lasting change. A recent IMPACT Group study revealed that 63% of talent leaders find it challenging to keep learners engaged in online training programs. Adding a coaching component significantly enhances engagement, as coaches encourage learners to apply online lessons to their daily challenges, translating newfound knowledge into actionable skills.

Microcoaching: Affordable Leadership Development at Scale

The same IMPACT Group study indicates that 84% of HR leaders believe assigning a coach to online learners boosts engagement levels. This dual approach—online learning paired with coaching—reinforces learning while promoting the practical application of new skills in real-world scenarios.

Isn’t Coaching Too Expensive to Scale?

The key to this integrated approach is microcoaching, which is a fraction of the cost of executive coaching— involving brief, focused sessions over a few weeks, rather than months. By targeting specific challenges or skill gaps, microcoaching enables leaders to receive tailored guidance efficiently, without the lengthy commitments associated with conventional coaching programs.

HR professionals report an impressive 7X return on investment (ROI) from coaching initiatives, highlighting the significant impact well-structured coaching can have on both individual and organizational performance. Participants in programs that combine microcoaching with online learning consistently report greater efficacy in applying new skills and insights in their day-to-day roles. This immediate applicability reinforces their learning, boosting confidence and empowering emerging leaders to take on greater responsibilities.

Engaging Leaders Through Dual Modalities

To enhance leadership development, organizations can integrate microcoaching with existing online learning platforms, such as LinkedIn Learning. This combination enriches the overall learning experience and optimizes the investment in leadership development. By leveraging current resources while incorporating scalable coaching solutions, organizations can promote deeper engagement among leaders.

This approach ensures that non-executive leaders receive targeted guidance tailored to their specific needs. By combining the accessibility of online resources with the personalized support of coaching, companies can cultivate a culture of continuous growth and development. As a result, more leaders will feel valued and engaged, reducing turnover and enhancing retention. Ultimately, this strategy prepares leaders across the organization to assume larger roles, fill critical gaps in the leadership pipeline, and effectively lead transformative change.

Lauren Herring is the CEO of IMPACT Group, one of the largest career and leadership development companies globally. She has been a C200 member since 2009.