“Take me to your leaders…”

That phrase is most often associated with old sci-fi movies depicting little green men disembarking their UFO and uttering the request to wide-eyed earthlings. But what if someone made this request to you (regardless if it’s a laser-toting alien or just some average Joe Plumber on the street)? If you’re a decision maker in your organization you likely consider yourself a leader. Could you take the inquirer to anyone else beneath you?

We’re currently experiencing a period of history when many are questioning whether there is a leadership crisis—both in politics and business.

Now more than ever, good leaders are needed. As uncertainty permeates the marketplace, solid leadership must be in place to help navigate these trying times. And not just at the top, but throughout your entire organization, as strong leadership from top to bottom has a direct correlation to corporate stability.

So again, can you take me to your leaders? If not, why?

The answer probably lies in the fact that not enough is being done to appropriately develop them. According to a recent survey conducted by DDI to examine why confidence in leaders is waning, while three-quarters of executives surveyed said improving leadership talent was a main business priority, only 40 percent were satisfied with the leadership development efforts their organizations were making.

Some argue that leaders are born. But most are made through a maturing process. Unless that process includes intentional efforts for formal training, appropriate mentoring and extensive research, it is unlikely full leadership potential will be reached by anyone. We’ve discussed leadership here recently as it relates to shortfalls in managing Gen Y and bosses not being highly regarded by employees, so in this new series of posts, we’ll be tackling many different layers of leadership development. For starters though, aside from the aforementioned stabilizing effect, let’s exam the top five reasons to develop your leaders:

Increasing Profitability
The IT sector is notorious for following the Peter Principle, promoting individuals who have extensive technical training, but none in regard to project or personnel management. Without the right leadership training, long-term performance and inefficiency will plague organizations—costing considerable profits.

In John Maxwell’s book, The 21 Irrefutable Laws of Leadership, he introduces a different type of concept called “The Law of the Lid.” This idea argues that an individual’s leadership capability is like a lid or ceiling for success potential that an organization cannot rise above. That is why when a corporation or team needs to be fixed, the leader is fired. Because leadership skills can be developed, it is important to lift the lid by training your leaders with long-term goals in mind. This will increase success and profitability without bumping into the ceiling.

Focus
Having a competent leader means having someone who will cast vision for your organization, then communicating it in ways that can propel even unmotivated employees towards success. Employees under weak leadership will stray and focus on things not supporting the organization’s current goals and aspirations. These distractions will result in substantially decreased productivity, effectiveness and profitability.

The Gut Feeling
In a talk presented to CareerBuilder.com employees last year, former GE CEO Jack Welch indicated that the gut feeling we often leverage to make decisions is actually pattern recognition. That ability is developed from extensive experience in the company (or industry) in which you’re leading others. Identifying potential leaders early and strategically developing their leadership skills while leveraging their pattern recognition will translate into sound direction for your company. The wisdom they develop will also allow them to recognize other potential leaders with “gut feelings” and set up long-term success.

Loyalty and Retention
When you develop your leaders, you are making an investment. While some may leave your organization, if an individual is made to feel like a valuable commodity who is being groomed for something bigger and better, chances are they will stick around. Also, employees reporting to good leaders are far more likely not to search for a new job than those who report to ineffective leaders. Turnover is expensive and can be greatly reduced with investments in leadership development.

Team Morale and Effectiveness
Although many internal and external factors can influence morale, the greatest impact comes from the top. The majority of managers sincerely desire to lead a team with strong morale, amazing productivity and recognizable effectiveness. The primary reason for managerial failure is not for lack of want, but rather not having intentional leadership development and training, which when initiated, creates a positive, encouraging and effective atmosphere all around.

Developing your leaders could be one of the greatest impacts you make on your organziation and be the very thing that gets you through these tough economic times. And as you invest in your leaders, they will soon begin investing their leadership skills in others as well. We’ll discuss other elements of leadership development here again soon.

Are you experiencing a leadership crisis? How are you building your leaders? What impact will it make in your corporation or industry?