How does it affect me?
Effective management skills, and investment in developing managers, can lead to cost savings by ensuring resources are used more effectively and mistakes are avoided. The effects of inspirational leadership are often intangible and visible through other aspects of people management and development. As a result the impact of inspirational leadership can be difficult to measure, but it is potentially at least as significant as that for people management and development. Certainly, the financial performance of the Sunday Times Top 100 companies - who score much better than average on staff perceptions of leadership – significantly outstrips FTSE-listed competitors over five years (according to analysis by Frank Russell/Sunday Times). As consultancy McKinsey say: “Companies that overlook the role of leadership in the early phases of strategic planning often find themselves scrambling when it’s time to execute. No matter how thorough the plan, without the right leaders it is unlikely to succeed.”
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