July 8, 2008

Leadership Shortage

Filed under: Latest Trends in HR, Leadership — Tags: , , , — hrcases @ 7:26 pm

The major problem hovering over the competitive business scenario is global talent shortage. In the near future, organizations will have to scramble and compete to find new talent, especially the managers and executives.

Various top notch consultants and management gurus claim that this is going to be one of the biggest issues businesses must deal with in the next decade.

So what’s the deal? And how do we handle the current situation?

There is a potential leadership shortage looming on the horizon. Organizations’ claim that they can’t find enough talent to re-supply their dwindling management ranks. But they would certainly do much better if they rethought their approach to selecting, developing and managing their talent.

Organizations should aim at turning raw talent into successful leaders. Traditionally, leadership potential was viewed as a one-dimensional resource. Over the past few years as organizations have grown in complexity and size, many of the roles have become highly diverse and complex.

Most organizations have neglected the change, as a result their managers and executives find themselves struggling and failing, and in the process inflicting damage on their organizations. It’s not that these individuals can’t be good leaders. But they aren’t prepared for the complexity and scope of the roles in which they find themselves.

Nowhere is this more obvious than at the very top, where CEOs are crashing and failing in appalling numbers. Most of these problems have been due to a lack of alignment between the role and the abilities of the individual filling that role.

Today, organizations need to worry less about the dearth of leadership talent and focus more on better understanding the specific demands of today’s highly varied leadership roles. With this understanding of their leadership needs, organizations would also be able to refine and modify their actual leadership structure, thereby reducing their outdated models.

No doubt as the workforce shrinks, there would be a “WAR FOR TALENT”. Organizations would be required to address the leadership talent in the context of their business strategy, their required operating model, their resulting organizational structure, and the changing and emerging roles these dynamics are shaping.


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