The future of a company depends heavily on its managers. That is why management development is more important today than ever before. This ninth step of the KIROI method deals with a central topic. It is about how organisations promote their managers in a targeted and sustainable way. Modern management development means more than traditional seminars. It combines individual support with strategic corporate goals. transruptions-Coaching supports you as a competent partner in leadership development projects. Together we create new ways to strengthen your managers[1].
Why leadership development needs to be rethought
Traditional approaches to leadership development are showing their limitations[2]. Many companies still rely on one-off training sessions. Although these seminars impart knowledge, they often lack a connection to reality. Managers return to their day-to-day work and are unable to put what they have learnt into practice. This is frustrating for everyone involved[1].
A systematic approach to leadership development works differently. It links development directly to the challenges facing the company[2]. Managers work on real projects and learn in the process. This method is more sustainable and effective. But how do you put this into practice?
Companies such as Siemens and Bosch have understood that leadership development is a continuous process[1] and regularly offer internal programmes. These programmes are tailored to the specific requirements of the organisation. Larger companies invest specifically in their managers. Medium-sized companies should follow this example.
Central methods of modern management development
There are various tried and tested methods for developing leaders[3]. A combination of several approaches leads to the best results. Let's take a closer look at the most important methods.
Coaching and mentoring as the core of management development
Coaching is a highly individualised method of leadership development.[2] A coach works one-to-one with the manager. Together they work on personal and professional challenges. The focus is on the individual. Their specific problems take centre stage[4].
Mentoring works differently, but is no less valuable.[3] Here, an experienced manager shares their knowledge with a younger colleague. The exchange is personal and long-term. Google and IBM make intensive use of mentoring[4] and know that human interaction is priceless.
A more recent trend is reverse mentoring[9], where younger employees mentor older managers. They bring new perspectives and digital knowledge with them. Both sides benefit from this. This model of leadership development suits modern organisations.
BEST PRACTICE with one customer (name hidden due to NDA contract)A large group in the financial sector implemented coaching for its junior managers. Each young manager was assigned an external coach for two years. The coaches accompanied the managers in their first major projects. At the same time, experienced managers were selected as internal mentors. The company combined both methods. The result: 85 per cent of the junior managers remained with the company and developed into valuable leaders. The investment in management development paid off.
Leadership training and workshops as a foundation
Seminars and workshops are classic, but not outdated.[1] They systematically teach leadership skills. The focus is on topics such as communication, conflict resolution and strategic thinking[2]. They offer a formal, organised environment for learning.
Bosch regularly offers management training programmes[1], which are geared towards different hierarchical levels. A bank in Stuttgart implemented conflict communication training. After three days of intensive training, managers were able to conduct difficult conversations more effectively. One year later, the results showed that staff turnover in their teams had fallen by 20 per cent. Good management development training has a lasting effect.
Modern workshops are interactive and practice-orientated[9] and encourage active participation rather than passive consumption. The participants work on real cases. They discuss scenarios from their everyday lives. This makes the transfer into practice much easier. A large insurance group uses business simulation training. Here, managers make simulated decisions and experience the consequences. This helps them learn faster and more effectively[1].
Action learning for practical leadership development
Action learning combines learning with real problem-solving.[4] Managers work in groups on real challenges facing the company. They put their knowledge into practice. They experience directly whether their solutions work. This method of leadership development is highly effective[3].
Lufthansa has successfully integrated Action Learning.[4] Its managers work together on improvement projects. They optimise processes or develop new services. At the same time, they reflect on their learning processes. This creates genuine management development based on practical experience. One mechanical engineering company used action learning for digitalisation. Managers worked in groups on specific IT projects. They learnt agile methods by applying them. After six months, they were able to lead their teams much better in digital transformation.
BEST PRACTICE with one customer (name hidden due to NDA contract)A pharmaceutical company used action learning for management development. Small groups worked on real business problems over a period of four months. They were accompanied by experienced managers as coaches. One group optimised the supply chain and saved over one million euros. Another group developed a new sales model. The participants not only received theoretical knowledge on leadership development. They experienced how their decisions have a real impact. The company benefited twice: through better business results and through developed managers.
E-learning and digital formats in management development
Digital learning platforms open up new possibilities.[2] Managers can learn independently of time and place. They select their learning modules as required. An online course on emotional intelligence can be completed from the airport. Webinars enable dialogue despite geographical distance[6].
E-learning offers great flexibility for management development.[2] The training units can be repeated. Managers can work through complex content several times. Virtual role plays train communication skills. A large retail group uses e-learning platforms. Its managers work through modules on sales psychology. They receive immediate feedback. After three months, measurements show that their sales are increasing[1].
Nevertheless, e-learning should only be part of a comprehensive leadership development strategy.[11] Human interaction cannot be completely replaced digitally. The best solution combines online formats with face-to-face sessions. One banking association combines e-learning with virtual coaching sessions. Its managers complete online modules on strategic topics. They then discuss their findings with a coach. This hybrid form of management development shows excellent results[10].
Job rotation and practical learning
Job rotation is an underestimated method of management development.[1] Managers move to other departments for a defined period of time. They get to know other business areas. They gain a better understanding of the interrelationships within the company. Their horizons are broadened[1].
One automotive supplier makes targeted use of job rotation,[3] with junior managers rotating through four different areas. Each station lasts six months. They lead teams, but always gain new experience. After two years, they have a comprehensive overview of the entire company. Later, as managers, they can overcome departmental boundaries[1], which strengthens cooperation throughout the company.
Learning by doing is a principle of practical management development.[6] Managers learn best when they actually lead. They gain experience in real projects. They sometimes fail and learn from their mistakes. A consulting company quickly gives its junior managers small teams. They are allowed to experiment and sometimes make the wrong decisions. The experienced coach helps them to reflect. This is how management development works in practice.
Individual development plans as a structure for management development
Good leadership development follows a plan[2] Every manager should be given an individual development plan. This plan sets out which skills are missing. It names specific goals. It describes which measures are planned[2].
The first step is an honest analysis of potential.[5] Where does the manager stand today? What are their strengths? Where is there a need for development? This analysis should be based on several pillars. 360-degree feedback provides different perspectives.[1] The line manager evaluates. Colleagues and employees provide feedback. The manager's self-assessment is also included. Development goals are derived from this analysis[1].
BEST PRACTICE with one customer (name hidden due to NDA contract)A large industrial group implemented individual development plans for all 300 managers as part of its management development programme. The plans were designed to run for two years. Each plan focused on three to four specific development goals. At least one measure was defined for each objective. This could be coaching, a workshop or job rotation. The HR team met with each manager on a quarterly basis. They reflected on progress. They adjusted targets if necessary. After two years, 240 managers were able to achieve at least two of their goals. The fluctuation rate fell by 15 per cent. The employee satisfaction of these managers' teams increased.
Employee appraisals are central to management development[1] and should take place at least once a year. The line manager and the manager work out together. What goals have been achieved? What has worked? Where are there new insights? What priorities have shifted? These regular discussions bring leadership development to life[1].
Succession planning and talent pipeline as a strategic aspect
Management development also has a strategic dimension.[4] Companies must ensure that management positions can be filled. This requires a planned succession. A pipeline of talented candidates is needed. High potentials must be recognised and promoted at an early stage[4].
Deutsche Bank uses systematic succession planning[4] The company identifies high potentials at an early stage. They receive intensive support for management development. They are specifically prepared for management tasks. This ensures that there are no gaps in the management team. When an important position becomes vacant, there are already prepared candidates[4].
A medium-sized company in the mechanical engineering sector took a different approach. It recognised that many older managers would be retiring in the next five years. The company launched a major management development programme. It identified high potentials in the lower management levels. These were prepared in a special programme over two years. Case studies, mentoring and job rotation were central to the programme. Today, the company can fill all positions internally. This would not have been possible without a deliberate management development programme.
The four central areas of management development
Leadership development can be divided into four sub-areas[5], which are interlinked.
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