AHHH!!! I just need to vent.

Is it okay to vent for a second? We’re all friends, right?

We recently lost two contracts for the same reason. The client decided to provide their own leadership development program to their employees. One was an existing client with a history of satisfied performance and the other was an opportunity, that looked promising, only to be lost at the last minute because senior leadership thought it was better to provide the service internally rather than using an external provider.

First, let me say I understand the decision because I have been on both sides of this scenario at different points in my career. In my previous position, I had the privilege of being part of an amazing organization with a strong leadership development program that consisted of over 300 internal leadership coaches and trainers. However, only about 20% of us were utilized. Why? Because we all had other jobs and responsibilities that took priority, and our leadership development duties came second. We were all capable, but often lacked the capacity for impact. So, yes, you can provide impactful leadership development, training, and coaching internally. However, it can come at a greater expense than you realize. The options should be carefully explored.

So, let’s compare the options…

External experts offer…

• · Specialized Knowledge: External experts bring a wealth of experience from working with diverse industries and organizations. This broader knowledge base can offer unique insights that may not be readily available internally.

• Objectivity and Unbiased Feedback: External experts can provide honest and unbiased assessments of leadership capabilities, fostering personal growth and self-awareness among potential leaders.

• Efficiency and Focus: Organizations can save time by leveraging the expertise of external professionals who are well-versed in leadership development methodologies. This can lead to faster skill acquisition and growth. It is also all they do. There is no internal mission creep that can take priority.

• Disruption for Growth: The introduction of external perspectives can challenge traditional thinking and stimulate innovation, leading to more adaptive and forward-thinking leaders.

Internal experts offer…

• Cultural Alignment: Internal development programs can be tailored to align with the organization's unique culture, values, and goals. This ensures that leaders are not only equipped with skills but also immersed in the company's ethos.

• Knowledge of Context: Internal programs offer the advantage of understanding the organization's specific challenges, industry nuances, and operational intricacies. This context-sensitive learning can enhance leaders' decision-making abilities.

• Cost Efficiency: Developing internal leadership programs can often be more cost-effective than hiring external experts. It minimizes expenses related to external consultant fees and travel.

• Long-Term Commitment: Investing in internal leadership development sends a signal to employees that the organization is committed to their growth and progression, fostering loyalty and retention.

Making the Right Choice

The decision between internal leadership development and external expertise depends on the organization's specific needs, resources, and goals. A hybrid approach, combining internal programs with occasional external insights, could strike a balance. Here are some considerations:

• Customization: For organizations seeking tailored solutions, internal programs are advantageous. If fresh insights and a broader perspective are needed, external expertise might be preferable.

• Urgency: If leadership development needs to be expedited, external experts can provide a more streamlined approach.

• Cost Considerations: Budget constraints might push organizations toward internal development, while larger budgets could afford periodic external guidance.

• Cultural Integration: When cultural alignment is crucial, internal programs are more likely to succeed.

In conclusion, both internal leadership development and external expert approaches have their merits and drawbacks. Organizations must carefully evaluate their goals, resources, and preferences to determine the best approach. Whether fostering growth from within or tapping into external wisdom, effective leadership development is an investment that yields long-term benefits for both leaders and the organizations they serve.

Thanks for listening. Contact Azimuth Consulting to learn how we can help you develop your leadership and organizational culture.