Is Scotland facing a leadership crisis?

WE ALL know that effective organisations require effective leaders - or do we?

Judging by the results of a major research project I have been leading for the past two years, this vague realisation is about as far as it goes for many. We have surveyed almost 200 organisations, across all sectors of the economy, and interviewed dozens of managers. While most acknowledge the need for leadership, most also tell us that they are: confused about how to select the appropriate form of leadership development for their organisation; unsure how to evaluate its effectiveness; puzzled by the number of people and organisations offering programmes, which invariably purport to provide radical and transforming solutions; and unsure how to select the right people for future leadership roles.

Almost 80 per cent of the organisations we talked to said they didn't know how, or whether, leadership development helped them to achieve their business goals. This is astonishing. At least 120 million is spent annually in the UK on leadership development, and 5 million is spent in the public sector in Scotland alone. Yet managers told us they had no real idea whether this hit their ultimate bottom line: performance.

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Only 32 per cent even try to evaluate how their leadership development activities impact on business results. The others just hope and pray. It as though someone had spent the family fortune on a proposed new supercar, but didn't check first whether it had wheels attached or an engine that worked.

We also found just under half of those surveyed had a clear statement about how they expected leaders to behave. It is likely these two issues are connected. If you don't know what you want from your leaders, it may well be difficult to establish how developing them solves acute business problems. Too many organisations are unclear about what they mean by "leadership", haven't yet figured out what values their leaders should espouse, and are consequently at a loss as to how these values and behaviours should be transmitted down the line.

While we found coaching and mentoring were the most popular forms of leadership development, we also found another problem. Most managers reported that, in the increasingly frantic workplace, they have insufficient time to devote to these crucial issues. It seems that developing of leaders often finds its way to the bottom of the "to do" list. Yet one of the reasons managers are so busy is a dearth of leadership talent in their organisations. Leaders assume responsibility, invent a new future, inspire others and show commitment. But many managers are trapped in a vicious circle. They are too busy to take a look at what needs to be done to develop these mindsets amongst their people. The result: managers work ever harder, but to diminishing effect.

Linked to this, we also asked managers how they kept up-to-date with research into leadership. Again, many were too busy to look at anything more than a few magazine articles. Imagine, for a moment, you have had a heart problem and are entering the operating theatre. You ask your surgeon what techniques he will be using and he proposes major open chest surgery, consistent with practice circa 1965. When you remonstrate and suggest new keyhole techniques he barks at you: "Don't bother me with that stuff. I've been too busy operating to keep up-to-date". Yet, in essence, many people in important roles in our organisations - roles vital for the future of our economy - are in this kind of situation.

One key recommendation is that there is a pressing need for a world-class centre of excellence in leadership in Scotland. We seem to have out-sourced most of our expertise on this south of the Border. The Scottish Government needs to work more closely with universities to develop a clearer strategic direction and to create a top-notch centre for both research and programme provision that will challenge and better what other institutions are doing.

Beyond this, we all need to look closely at how to grow the leaders of the future. Our ability to compete in the 21st century, and deliver increased prosperity, depends on it.

• Dennis Tourish is professor of management at the Robert Gordon University, Aberdeen. His report, Evaluating Leadership Development In Scotland, has been published by Aberdeen Business School. For copies, e-mail Sara Braithwaite-Anderson on [email protected]