The Three Challenges For Leadership Teams And The Types Of Intelligence Required
Leadership teams matter. 90% of investors say the quality of the leadership team is the most important non-financial factor when evaluating an IPO. So how do you ensure you have an effective leadership team which can articulate a strategy, co-ordinate delivery of plans, and create a strong culture in the organisation? Rob Pyne in this HRD article says there are three challenges for leadership teams, and three types of intelligence they need.
According to Kaplan and Norton, just 7% of employees fully understand their organisation’s strategy, and what it means for them. McKinsey reports that only 26% of transformation projects succeed. And Gallup’s global workplace study shows that only 20% of employees are fully engaged.
So how do leadership teams address the shortfalls in these areas? Pyne says unlocking the hidden intelligence in your leadership team requires three types of intelligence from senior teams.
- Emotional intelligence or EQ: ‘How strong are our relationships within the leadership team?’
- Creative-Analytical Intelligence or IQ: ‘How effective are we at thinking through problems together, developing solutions and making collective decisions?”
- Practical Intelligence or PQ: ‘How good are we at delivering results, executing projects and driving transformation?”
Relationships are built on trust. High functioning teams require psychological safety to build trust in each other, and the organisation. Shared understanding of the ethical frameworks within which they operate is vital.
Once your team has solid foundations, they can get down to improving the strategic thinking and executional excellence.
Leaders who bring this intelligence to their roles, and have done the hard work, are better prepared to make the right decision at the right time for the right reason.
HRD the HR Director, 2 August, 2021. Read the full article here.
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