6 days ago
Why bench strength is a business imperative—and how to build it
When manufacturing industry leaders discuss bench strength—an organization's ability to fill critical roles from within—the conversation inevitably reveals a concerning pattern: Many CEOs look within their organization for successors and find their pipeline lacking.
The problem extends beyond the top position to their direct report level, creating a systemic challenge in leadership development. This weakness in organizational depth often becomes apparent at the most inopportune moments, such as during rapid growth phases or when key leaders unexpectedly depart.
One of the biggest mistakes organizations make is that they think it's a copy-and-paste approach, meaning, 'Let's just hire more of the same.' But when you start with strategic alignment, you ensure that the bench strength you're developing focuses on building the capabilities the organization will need tomorrow, not just replacing what it has today. Easy to say, yet hard to do.
Business leaders need to own the conversations about cost reduction, market expansion, and technology transformation, understanding the talent implications that flow from these strategic imperatives. When talent strategy flows directly from business strategy and is driven by business leaders collaborating with HR, you can see undeniable better engagement and outcomes.
Leadership effectiveness goes beyond technical capabilities and industry experience. In my experience, success often hinges on how executives work with and through others—their communication style, information processing, and team leadership abilities. This becomes increasingly important as organizations become more complex and interconnected.
Tomorrow's leaders need strong adaptive capabilities alongside technical expertise. The rapid advancement of automation and artificial intelligence means leaders must demonstrate strategic thinking, emotional intelligence, and the ability to drive innovation through collaborative teams.
Rather than seeking individual leaders who embody every desired trait, focus on building leadership teams with complementary styles and capabilities. This diversity in thinking and approach often proves more effective for organizational resilience and innovation.
In the past, leadership capabilities like 'Drives for results,' 'Takes action,' and 'Aggressively pushes the organization' were valued and rewarded. That action orientation is still needed in the manufacturing industry, but the differentiating competencies that will make a difference are 'Leading with empathy,' 'Being courageous and vulnerable,' and 'Listening and acting with kindness.'
Structured development programs are essential for building bench strength. These programs should go beyond traditional training to include real-world experience and challenges. To do so, provide employees with exposure to different parts of the business, ensure teams spend time at multiple locations with various disciplines, and create mentor relationships between current and future leaders.
High-potential candidates need increasingly challenging assignments to test and develop their capabilities. These stretch assignments should be carefully chosen to build specific skills while maintaining a reasonable chance of success. The goal is to develop leaders through experience, not just education.
Creating meaningful development opportunities requires careful planning and execution. Consider rotational programs that expose future leaders to different aspects of the business, cross-functional projects that build broader perspectives, and mentorship programs that transfer knowledge from experienced leaders to emerging talent.
Bench strength development requires constant attention; you have to water the garden. Regularly evaluate talent development plans and measure efficacy. We recommend quarterly reviews of development progress and annual deep dives into overall bench strength. These reviews should assess both individual progress and organizational gaps.
Market disruptions can shift talent demands unexpectedly—the COVID-19 pandemic, for example, dramatically increased demand for supply chain expertise and digital transformation capabilities. Regular assessment can help your organization stay ahead of these shifts and adjust development plans accordingly.
Building strong bench strength directly impacts business value. Organizations with robust leadership benches can command higher valuations, win more new business, and increase share of wallet with existing clients. This investment in talent development proves crucial for long-term sustainability and growth.
Through our conversations with industry analysts, we know that organizations with strong leadership benches have at least a 15% premium on how they are valued. We also see these organizations winning more business based on the quality of their teams and culture.
Building bench strength isn't just about individual development programs—it requires creating a culture that values and supports leadership development at all levels. This means making development a priority, celebrating internal promotions, and recognizing leaders who effectively develop their teams.
The most successful organizations make leadership development everyone's responsibility. Current leaders must see developing their successors as a key part of their role, and emerging leaders must take ownership of their development journey. When this culture takes hold, organizations can create self-sustaining pipelines of leadership talent that drive continued success and growth.
