My Personal Finance Blog

Is leadership training and development a priority for your organisation in 2011?

Investing in a manager’s development is a win – win for the organisation, as it will not only equip them with new skills, but it will also motivate managers. This in turn will enable them to motivate their staff better which will have a positive effect on their morale, work satisfaction, effectiveness and personal performance, and ultimately it will feed through to the financial performance of the organisation.

However there are other factors to consider too before launching a new leadership training and development programme, some of which are as follows:

Firstly it is important to consider the content and focus of any leadership development or training – what is the business or organisational need that must be addressed? Is the business trying to grow, restructure, or diversify? What are the skills and behaviours that are needed by all levels of leader across the business?

The organisation’s executives will need to model the required behaviours from the top. Do they currently do this or do they need development support too?

Is it to be a themed team programme which will include all managers from across the organisation, or is it more of a modular programme that leaders can ‘buy into’ where they have an identified need?

Do some of the organisations managers have specific development needs where an individual 1 to 1 coaching approach would be more appropriate?

The timing of any development programme is key too. If the organisation tries to push it into a manager’s schedule at a particularly busy time of year then it is likely to be resisted at best or rejected at worst.

Finally it is important to ensure that all development interventions are followed through and that the organisation evaluates the benefits and value of them.

Being a leader requires many skills but one of the key elements is an individual’s personal motivation – they must have the will and desire to want to lead people.

So if you are wish to invest in your leaders in 2011, and would like some advice about where best to start then please contact us at Developing People Ltd – please telephone 0845 409 2346, or send an email to enquiries@developingpeople.co.uk

One of the benefits claimed for capitalism is that the investment market calls for transparency. That means all companies selling stocks through the various exchanges must disclose reasonably full details of their financial performance – at least enough to allow investors to make an informed decision on whether to buy or sell. If the information is deliberately incomplete or misleading in a real way, the company can be prosecuted. In ideal world, this must keep companies honest. In March 2010, the economists are still arguing about whether the recession is over. Some are passionately asserting that all the major economies will now start positive growth. Others are equally passionate in warning about double dip recession or stagnation. Whichever camp eventually proves right, one very interesting piece of news to come out of the companies selling life insurance is that their more conservative approach to investment has produced steady growth throughout the recession. When you think of all the companies selling their expertise for the management of investments or the exploitation of movements in value through the hedge funds, it is good to see traditional values of prudence paying off. The returns may have been relatively small, i.e. between 3 and 4%, but any investment manager showing a positive return during a recession is something of a superstar.

As indicated in an previous article, this does not mean you should immediately purchase a whole life insurance. Ignoring the significant commission payments that cause much of your first year’s premium to disappear, it needs careful financial planning to decide whether whole life or the allied universal life fits your needs. One of the claimed advantages of whole life policies is they represent compulsory saving for your retirement, i.e. the cash value can either be drawn down or used as collateral for a loan if an emergency arises.

But that is the purpose of the 401k accounts. Both represent tax-free ways of saving and investing for retirement. But the greater freedom to manage the 401k accounts and the absence of both upfront commissions and high management fees usually means the returns are higher. Do not be deceived by the short-term losses in your 401k accounts over the last two years. Taking the longer view, investments have shown steady growth over the last fifty years. In real terms, you can expect your 401k account to yield more than a whole life policy. Put another way, you should only buy a whole life or universal policy when you have the maximum invested in your 401k and other more tax efficient savings and investment plans.

This does not mean you should not buy life insurance. Making adequate provision for your family and other dependents is a wise move. But you should only buy whole life if you intend to keep the cash value untouched until all the other savings have been exhausted. Otherwise, you are not giving the investment element enough time to maximize the return. When you use this site and get life insurance quotes, take the time to work through your overall financial strategy. If a whole or universal life policy fits into your best possible plans, buy with confidence. Otherwise use the life insurance quotes to find policies to make the right level of financial provision for your dependents without having to rely on a large investment component. If in doubt, work through the figures with an independent insurance agent. Make sure you make the right decision.