Alaska is a big State! How big? Well, the State of Texas can fit five times inside the State of Alaska. Sorry Texans if I bruised your ego but the facts are the facts.
In 1968, oil (an estimated 9 billion barrels) was discovered in Prudhoe Bay just north of the Artic Circle. To use that oil it had to be transported across the wilderness and it was determined the best way to do that was through a pipeline. In 1977, the pipeline was completed and stretched 800 miles, and cost $8 billion to build. In addition, to the pipeline itself, 360 miles of roadway and small camps or cities were built to support construction and service the pipeline. The pipeline was designed and constructed to survive the weather and earthquakes. This pipeline moves valuable natural resources.
The selection and development of executive talent is often referred to as a Leadership Pipeline. In no way does a Leadership Pipeline physically resemble the Alaska Pipeline. However, there is a comparison worth noting.
It took a crisis before The Alaska Pipeline was built. That crisis was an oil embargo by the Organization of Arab Petroleum Exporting Countries against the United States for supplying the Israeli military in the Yom Kippur war. Without going into too much detail, the embargo created serious fallout with NATO allies and on the U.S. economy. However, it served to motivate action to reduce future dependence.
According to a recent study by Hewitt Associates, partnering with Fortune, and The RBL Group, the “single most pressing challenge over the next one to three years among the global top companies is cost pressures” and slow growth. This crisis exposes an organization’s leadership readiness. Organizations that do not have the right talent will scramble to survive. Even those organizations that believe they have the right talent will see that talent severely tested and the jury is out on their performance.
If history has taught us anything, it is that crisis will pass, but not without much pain Then again, the Hewitt study suggests that cost pressures and slow growth are the new norm. The question then becomes will this motivate more organizations to develop leadership capabilities to meet future crises?
The answer should be "yes." However, far too many answer "yes, but..." Yes, we want to develop talent, but we do not have the time and money. That is an excuse. Sure, you may not have $8 billion, but how many organizations do? Hewitt puts forward that in addition to investment it takes “focus and a good dose of resolve to build leadership capabilities.” A modest investment will go a long way when you have focus and resolve.
That leaves time. It took three years to build the Alaska Pipeline. Oil now travels underground, above ground, zigging and zagging across the 800 miles of wilderness from the Artic to Valdez in less than five days. How long would it take to build a Leadership Pipeline? That is up to the organization but imagine the results once you did.
Tom Cairns is a Principal at Cairns Blaner Group, a management-consulting firm. Tom is a former Chief Human Capital Officer at the US Department Homeland Security and former SVP, Human Resources for NBC Universal.
Image: USGS
Hi Marquis, I was surprised to learn that many companies are cutting their tuition reimbursement programs. It often is not a benefit that companies can point to and know that they are getting a return on their investment unlike some other benefits. It marketed right it could be a huge positive for employees who take advantage of it and companies to benefit as well as a retention benefit.
This article is so true and because there is no real effort to invest in the future leadership of these organization, the people in charge of finding this talent will have their hands full and face a difficult journey ahead. The sad part is that due to the "cost pressures" and slow growth many companies are cutting their employee education reimbursement and/or employee development programs. The bottom line is that if these businesses don't develop the future leaders and are not able to find the leadership needed to move the company in the right direction, they will not survive.