Leadership Capital & Leadership Dynamics
A 2020 Bain report cited Leadership Quality as the single most important reason for success and the second reason for why companies were not successful.
What is ‘Leadership Capital’?
Leadership Capital is a ground-breaking concept, in which the cohesion, effectiveness, and therefore the future success of a Senior Leadership Team (SLT) can be quantified, analysed and improved upon.
Not only have we identified and quantified the concept of Leadership Capital, but our sister company, Drax, has developed a proprietary software system named ‘Leadership Dynamics’, which supports our understanding of what good leaders and leadership teams look like.
It provides an authoritative review of an SLT, considering its structure, experience and behavioural fit.
Benchmarking them against a peer group and a norm for successful companies, Leadership Dynamics is then able to provide in-depth analysis into the effectiveness of the team against its Value Creation Plan (VCP – please see below), and a route to optimising the team that will maximise the chances that it successfully executes the organisation’s ambitions.
The areas of focus are:
- The Structure of the Team
- The Experience of the Team
- The Behavioural Complementarity of the team
- The team’s Potential for successful value creation
From initial, arm’s-length evaluations through to thorough technical analysis and optimisation planning, the Dynamics platform ensures successful change, where necessary.
This change could involve…
- Adding a leader
- Changing a leader
- Rationalising a Function
- Developing a Leader
…with maximum impact and minimum disruption.
Value Creation Plan (VCP)
The VCP is delivered by our Leadership Advisory Team: headed up by Johnathan Massey.
Mark and Johnathan both come from Corporate Finance backgrounds, where they were tasked with effecting business growth for SMEs.
Using our proprietary Leadership Dynamics software, the team will conduct a review of your current team vs comparable competitor teams. This will focus on:
- Functional vs situational experience
- Behavioural insights
When this has been analysed, a ‘leadership bridge’ will be generated. This provides a route to optimising the Senior Leadership Team against a VCP.
The Leadership Advisory Team will sit down with you and discuss how your business works, what changes (if any) are needed, how to make those changes, what is working well and where efficiencies could be made, as well as providing you with a clear strategic roadmap for the future, leading up to a business event – often an Exit for the owner/founder.