Situation: A CEO finds that it is time to develop the next level of management and leadership to support the company’s planned growth. She has received input from several sources but is curious as to how other CEOs have taken their staff to the next level. How do you develop the next level of leadership?

Advice from the CEOs:

• Consider as an example how a law firm typically grooms and grows new partners:
  • Give them an area of responsibility.
  • Provide targets (expectations and metrics) and give them the opportunity to produce results.
  • Put the highest performers on track for promotion.
  • As is the case in a law firm, the candidates for management and leadership for will be a combination of rainmakers and the best talent in critical performance areas.
• What should be budgeted for professional growth and development?
  • One example – provide up to 10% of hours per week for an individual who shows a true desire to improve their skills. Watch how the individual performs, but make sure that there is a measurable return before continuing this beyond a certain point.
  • Another alternative: let the candidate decide by matching 50% of what they are willing to spend on training and education. Require proof of completion of the course and likely an acceptable grade average if the training is academic and reimburse after the fact.
  • Ask the candidate to demonstrate the ROI for the training for which was reimbursed 50% before agreeing to continue to support additional education. Let them develop the calculation but insist on final review and approval of their analysis before continuing to fund additional education.

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