How are you, as an executive, grappling with the rapidly evolving business landscape? 

Perhaps you're navigating digital transformation, grappling with increasing market volatility, or working to harness the power of a more diverse and remote workforce. These challenges are significant, and there's a critical skill set at their heart: leadership and communication.

According to a 2023 PWC report 1, 78% of organisations cite a gap in leadership and communication skills as a significant obstacle to their growth. But why does this gap exist, and how can it be addressed? 

The world we operate in has changed dramatically. Traditional, authoritative leadership models don't necessarily resonate with today's workforce, which values transparency, empowerment, and ongoing dialogue. While they once provided a sense of order and consistency, these approaches are now perceived as rigid and unresponsive to the unique strengths and contributions of individuals. Today's employees seek transparency, empowerment, and open dialogue with their leaders. According to a 2022 Gallup study, teams led by managers who focus on their strengths are 14% more engaged, and business units with engagement scores in the top quartile experience 21% greater profitability source: Gallup.

In a rapidly evolving business landscape, fostering a culture of trust and open communication can lead to greater innovation and adaptability. IBM's 2020 global study on leadership demonstrated that companies which prioritise open and transparent leadership saw a 30% increase in their ability to innovate source: IBM. These are critical assets in a world where disruptive technologies and changing consumer expectations can quickly render established practices obsolete.

Failing to adapt to these expectations doesn't just affect morale—it impacts the bottom line too. Research from the Society for Human Resource Management (SHRM) reveals that the average cost of losing an employee is six to nine months' salary source: SHRM. Moreover, a 2019 Glassdoor survey indicates that 84% of employees would consider leaving their current jobs if offered another role with a company that had an excellent corporate culture source: Glassdoor. 

The Role of Continuous Learning in Business Success

But how does continuous learning factor into all this? The answer is simple: businesses can't hope to succeed in today's volatile world without leaders who are learners first and foremost.

With the rate of change accelerating, it's no longer sufficient to rely solely on past experiences or existing knowledge. As per the 70:20:10 Learning Model 2, nearly 70% of learning comes from tackling real-life challenges, 20% from interaction with others, and just 10% from traditional training programs. Today’s leaders need to be agile, always ready to learn from new situations and adapt their approach. 

The Responsibility of Boards in Fostering Leader Development

The burden to nurture such a learning culture rests heavily on the boards. Why? Because developing leaders equipped to manage constant change is integral to long-term business success. But why should boards invest their resources in such endeavours?

Investing in personal development of leaders pays significant dividends. According to a study by the Center for Creative Leadership 3, organisations with a strong learning culture outperform their peers in terms of innovation, quality, productivity, and customer satisfaction by up to three times.

Supporting Leaders in Enhancing Interpersonal and Leadership Skills

So how can boards support leaders in developing their leadership and interpersonal skills?

Executive coaching and leadership programs are one avenue. They offer targeted guidance and insight to help leaders adapt their styles to the changing workforce dynamics. Additionally, creating a culture of feedback and openness can ensure leaders are continually learning and refining their skills in real-time. As a board member, are you doing enough to foster leadership development?

Continuous Learning as a Core Element of Succession Planning

Succession planning should not be an afterthought either. It is a strategic business process that prepares an organisation for leadership transitions. Given the critical role continuous learning plays in leadership development, it should naturally be a core part of succession planning.

Companies that incorporate continuous learning into their succession plans have a clear advantage. They ensure a pipeline of leaders who are adept at adapting and learning, keeping the business always prepared for the future.

In the fast-paced, ever-changing business landscape of 2023, leaders must constantly learn, adapt, and grow. Boards that invest in developing these skills among their leaders, embedding them into their organisational culture and succession planning, are the ones most likely to succeed.

The question for you, as a board member or an executive, is this: are you ready to embrace the critical role of continuous learning in your business's future success?