November 2003

In This Issue Connecting Leadership Development to the Bottom Line Companies Operating at Only 65% of Potential It All Begins with Better Leadership Impact on the Bottom Line Would You Like to Learn More about the Impact that Leadership Development Can Have on Your Organization's Bottom Line? The Heart of a Leader video and dvd A unique format of quotes form Ken's best-selling book The Heart of a Leader and set to stunning images and captivating music, this is a great way to open or close a meeting or trainng session. More... Searching for the perfect motivational speaker for your next event? Ken Blanchard and his handpicked group of professional speakers are some of the best in the world at inspiring audiences to new levels of motivation and committment. More... New Program: Situational Leadership® II for Sales Leaders Does your sales manager have the skills to positively impact the performance of your sales team? More... Program Update: Situational Self Leadership A key component in creating engagement is developing self-empowered individuals who excel at managing themselves and are able to ask for what they need from their bosses and peers. More... Check Out 2003 and 2004 Public Workshops—Held Live in Various Locations! Gung Ho! December 8–9, 2003 in London, England Whale Done!™ February 17–18, 2004 in San Diego, California Situational Self Leadership® January 26-27, 2004 in San Diego, California Building High Performing Teams® February 9-11, 2004 in San Diego, California Situational Leadership® II December 1–2 in San Diego and London January 12-13, 2004 in San Diego, California February 2-3, 2004 in San Diego, California Master of Science in Executive Leadership Degree Sponsored jointly by the University of San Diego and The Ken Blanchard Companies

Welcome to Ignite!—the online newsletter from The Ken Blanchard Companies®. This issue focuses on the impact that leadership development has on the bottom line. Connecting Leadership Development to the Bottom Line    One of the greatest challenges facing the human resource and training professions is how to make the connection between training and an organization's bottom line. While companies put a lot of emphasis on organizational development and employee development, it can be a challenge to secure funding if initiatives don't show direct impact. That's why it's important for any new individual, team, or organizational development initiative to show a direct connection between what employees are learning and bottom-line performance. Companies Operating at Only 65% of Potential    One way to evaluate the impact of an organizational development initiative is by comparing a company's current performance against its potential performance as determined by senior leadership. This is the approach that David Carroll, PhD, a consultant for The Ken Blanchard Companies, has used with clients around the world. In working with senior management teams in a variety of industries, Dr. Carroll discovered that most teams evaluated their organizations as operating at only 55-65% of their potential. One of the areas clearly identified for improvement was individual employee performance in key responsibility areas. Despite hiring people with good skills, most management teams felt that the new hires were not achieving the high performance level anticipated. While hiring people with the right skills is certainly an important part of the equation, Dr. Carroll explains that new employees cannot be expected to be peak performers the day they walk in the door. Only over a period of time, using an appropriate matching leadership style along the way, do employees reach the levels of confidence and competence that enable them to increase their productivity and effectiveness on given goals and tasks. Without it, most employees (53%) end up achieving only a moderate level of performance on key tasks instead of pushing through to the highest level possible. The challenge then is for organizations to develop their employees to reach higher levels as quickly and efficiently as possible, thus improving productivity and overall corporate performance. It All Begins with Better Leadership    Today's best leaders provide an environment where people can stretch, learn, and share their talents. Great leaders focus on efficiently and effectively helping to transform beginners and learners into peak performers on their critical tasks. The three main skills that successful leaders must employ are the following: Diagnosing the employee's current development level on the task at hand Being flexible in offering the right amount of direction and support that matches the employee's development level Partnering with employees to clearly identify what they are responsible for and how the leader will help them achieve it Impact on the Bottom Line    With better leadership, people become more skillful, adaptable, and open to new challenges and change. Without appropriate leadership, the development levels of employees can stagnate or even regress. Since people's development levels can migrate anywhere from beginner to peak performer depending on the task at hand, the ability to utilize the appropriate leadership style is critical to maximizing productivity, morale, and long-term results. As performance level goes up, these individuals begin to contribute more and more to the organization's bottom line. A look at past Blanchard® work with clients bears this out. For example: A global retailer implemented a leadership development program that increased sales in 66% of its stores and reduced turnover in 64% of stores. A national shoe manufacturer created a leadership development process for general managers, regional managers, and store managers that decreased turnover by more than 50% in 5 years and reduced termination due to poor performance by 70%. A holding company for several restaurant chains developed a leadership development curriculum that increased the average check by 5% and increased sales at participating restaurants 14% (versus a 4% loss for restaurants not going through the training). Through effective leadership, successful organizations are showing that they can increase overall productivity, positively influence other key metrics, and directly impact the bottom line. Would You Like to Learn More about the Impact that Leadership Development Can Have on Your Organization's Bottom Line?    If so, please join Dr. David Carroll for a FREE Webinar on Thursday, November 20. In this online seminar, Dr. Carroll will present his thoughts on the impact of leadership development initiatives. You'll learn a proven method for developing employees and the powerful effect it can have on your organization's bottom line! Bottom-Line Impact through Leadership Development Thursday, November 20, 9:00–10:00 a.m. Pacific Time, United States (Event is Complete)