by Lester Coupland & Imran Zawwar

The Strategic Odyssey of Capability Development

In a world where every line item has its place on the ledger, it seems counterintuitive to view employee development as anything other than a cost. After all, traditional business logic often perceives employee or executive development programmes as mere expenses, drawing resources away from immediate profit margins.

However, let's take a moment to challenge this conventional wisdom and explore a perspective that could reshape the way we think about the relationship between productivity and employee development.

The undeniable truth is that there exists a powerful relationship between the two. Organisations are increasingly recognizing that developing the skills and potential of their workforce isn't just a philanthropic gesture; it's a real investment in the future. At the London Strategy Centre (LSC) we assert that well-planned and delivered employee development is not a drain on resources but a strategic move positioning organisations for long-term success.

And, there is evidence to show this. For example, multiple studies have shown that emotional intelligence decreases turnover, which can be a major source of financial savings (Brunetto et al., 2012; Spencer, 2000). Why? Because in organisations where managers are trained to develop and fine-tune their social skills, empathy, and self-regulation, employees report higher levels of job satisfaction and higher levels of commitment to the organisation.

When workplaces offer a supportive and psychologically safe environment, not only does employee experience improve, performance, productivity, and outcomes do as well (Carmeli, 2003; Chin, Anantharaman, & Tong, 2011). However, we also believe that it's crucial to distinguish between skill development and capability development. The LSC proposes that, in these volatile, uncertain, complex, and ambiguous (VUCA) times, capability development takes precedence. While acquiring specific skills is undoubtedly important, fostering a broader set of capabilities allows employees to navigate the unpredictable terrain of today's business landscape with agility and resilience.

Picture a scenario where your workforce is not only equipped with the latest skills but also possesses the adaptive capabilities needed to thrive in a VUCA world. In this environment, employees don't just meet challenges; they embrace and conquer them. This is the true essence of capability development, and it's a strategic move that aligns perfectly with the unpredictable nature of the modern business landscape.

The LSC advocates for this paradigm shift, challenging businesses to view employee development as a strategic lever rather than a financial burden. After all, what if investing in your employees' growth isn't just a corporate responsibility, but a savvy move that propels your organisation into the future?

To explore how the London Strategy Centre can support your organisation on this transformative journey, reach out to us at enquiries@londonstrategycentre.com. It's time to reconsider the traditional cost-benefit analysis and recognize that the true value of employee development extends far beyond the balance sheet—it's an investment that pays dividends in a future where empowered individuals, equipped with both skills and capabilities, drive unparalleled success.

References:

Brunetto, Yvonne, et al. "Emotional intelligence, job satisfaction, well‐being and engagement: explaining organisational commitment and turnover intentions in policing." Human Resource Management Journal 22.4 (2012): 428-441.

Carmeli, Abraham. “The Relationship between Emotional Intelligence and Work Attitudes, Behavior and Outcomes: An Examination among Senior Managers.” Journal of Managerial Psychology 18, no. 8 (January 1, 2003): 788–813. https://doi.org/10.1108/02683940310511881.

Chin, Susan, R.N. Anantharaman, and David Tong. “The Roles of Emotional Intelligence and Spiritual Intelligence at the Workplace.” Journal of Human Resources Management Research, January 15, 2011, 1–9. https://doi.org/10.5171/2011.582992

Spencer, L. M. “The Economic Value of Emotional Intelligence Competencies and EIC-Based HR Programmes.” In The Emotionally Intelligent Workplace: How to Select for, Measure, and Improve Emotional Intelligence in Individuals, Groups, and Organisations. San Francisco: Jossey-Bass., 2000.