From April issue, NZ Manufacturer www.nzmanufacturer.co.nz

-David O’Connor, Commercial Manager, The Learning Wave

Much has been written about the need for New Zealand manufacturing businesses to increase productivity to remain competitive internationally, and subsequently, the benefits that adoption of new digital technologies and smart factories can deliver to NZ manufacturers.

It is no great secret that the sector is in the midst of tough times. Many businesses are reporting having to cut back on shifts and overtime hours, pushing out innovation projects, and reducing their training spend to help manage costs and profitability.

Strong leadership is the key ingredient of any high-performing organisation. Equally, a lack of it can spell disaster. A quick search of Google tells us the same thing- they lead upwards of 80% of the workforce, and their performance directly impacts their team’s productivity, quality, engagement, innovation, customer service, and safety. Getting it right is critical.

The role of the frontline leader cannot all too easily be undervalued. Being a frontline leader isn’t just about keeping the production line running, and meeting today’s production targets; it’s about inspiring, motivating, and guiding their teams to perform better and juggling the ever-changing demands of staff, health and safety, quality, reporting and of course production and operational efficiency targets. No easy feat.

The return on investment is clear – according to a 2022 Harvard Business Review article, organisations with high-quality leaders are 13 times more likely to outperform their competition. And yet with statistics like that, only 12% of companies surveyed in the recent 2023 Global leadership Forecast were confident in their leadership bench. Building a strong leadership bench is the obvious answer to unlocking productivity and performance.

An investment in learning pays dividends. In a recent article in MBA news, the Forrester research report stated that one number stands between thriving and floundering workplaces:  $A2,500 – that’s the most 65% of businesses spend per year, per employee on leadership development.

While many New Zealand manufacturers measure and report their annual investment in R&D, very few actively report their investment in L&D (Learning and Development), with many seeing training spend as just another cost line to manage or trim. Often, it’s the first line trimmed in tough economic times.

Several businesses that we work with continued to invest in leadership development training – both for frontline leaders and senior leaders – over 2020/21, and are now reaping the benefits of a much stronger leadership culture, a broader bench strength from which to choose, and increased employee engagement and loyalty. As one of our South Island-based clients reported  “In a high staff churn environment, the turnover of staff having completed the leadership development programme is less than 1/10 of the average.”

While a true ROI from your investment in leadership development training can be hard to measure in the short term, our clients report that their frontline leaders are now better equipped across a number of key metrics, such as:

• Modelling behaviours such as great self-awareness, accountability and ownership
• Better setting expectations, monitoring performance, and increased confidence to manage poor performance
• Creating conditions for commercial performance without trading off wellbeing
• Use leadership and communication techniques to connect their teams to the bigger picture

To make the most of their investment – dollars and the time investment – businesses need to ensure that their managers have the skills and time to effectively and actively coach their frontline leaders on the job, and support them to actively apply the leadership tools on the job.

The importance of frontline leadership development cannot be overlooked, even in times of market uncertainty. Businesses need leaders who can navigate uncertainty, drive innovation, and unlock the potential of their people. It’s not just an investment in an individual; it’s an investment in the future of your business.