McKinsey: Simulation key to how effective organizations build staff capabilities

I’ve seen the impact of leadership development on organizations: it’s why I joined PM College. One of the challenges is to determine which methods work best to drive transformation, or accelerate improvements one has already reaped. Our firm has experience and research that pins this down, but it’s always nice to find a third-party that confirms what we know and believe.

McKinsey to the rescue, with a new survey on “Building Capabilities for Performance.” The survey refreshes data from a 2010 study, and found that:

… the responses to our latest survey on the topic suggest that organizations, to perform at their best, now focus on a different set of capabilities and different groups of employees to develop.

In other words, the best performers did personnel development differently.

What did they do? The first finding that struck me was the use — or disuse — of experiential learning: McKinsey model factories or simulations as examples. The most effective organizations used these methods more than four times more frequently than others. But even then, experiential learning was used sparingly, by just under a quarter of the top performers.

As long-time Crossderry readers know, I’m a big fan of simulations. We had great experience with them at SAP. As McKinsey notes, they are about the only way “to teach adults in an experimental, risk-free environment that fosters exploration and innovation.” To that end, several popular PM College offerings — Managing by Project, its construction-specific flavor, and Leadership in High Performance Teams — use simulations to bring project and leadership challenges alive…without risking real initiatives.

I’ll have more on other success factors — custom content and blended delivery — in following posts.

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2 Responses

  1. […] How effective organizations build staff capabilities — Insight from McKinsey […]

  2. […] How effective organizations build staff capabilities — Insight from McKinsey […]

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