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AI in Leadership Development: Preparing the Next Generation of Executives

As businesses strive to stay competitive and innovative, the importance of effective leadership cannot be overstated. Good managers are essential for driving team performance, making strategic decisions, and fostering a positive company culture. However, traditional leadership development programs often fall short of preparing leaders for the complex challenges of today’s business landscape.

In a survey conducted by Oji Life Lab last year, 4 in 10 workers rated first-time managers as being weak at reducing conflict, handling difficult situations, providing quality feedback, running a productive meeting, and making decisions.

To cultivate the next generation of executives, enterprises need to think proactively about how to close these gaps and ensure that their leaders are well-equipped to navigate an ever-evolving corporate environment.

The good news? AI can help. Its ability to personalize learning experiences, provide real-time feedback, and scale training across large organizations makes it an invaluable tool for effective leadership training at all levels in all industries.

Why Good Managers Matter

Good managers are the backbone of any successful enterprise. They play a vital role in driving team performance, making strategic decisions, and fostering a positive company culture.

According to Gallup’s State of the American Manager report, managers account for at least 70% of the variance in employee engagement scores across business units. Data also shows that good managers have a significant impact on:

  • Employee Experience: According to CultureAmp, employees who rate their senior leaders as good managers are far more likely to recommend the company as a great place to work, have confidence in the company's leadership, and believe in the company's future success.
  • Business Performance: Gallup finds that great managers contribute 48% more profit to their companies than average managers. Unsurprisingly, employees under good managers report better health outcomes and decreased negative coping behaviors, improving a company’s overall productivity.
  • Employee Retention and Advocacy: Recent research by Perceptyx found that 80% of employees working under great managers report better interdepartmental cooperation, alignment with the organization's vision, and a sense of belonging. Additionally, employees working under their best managers are 2.5 times more likely to be fully engaged and stay with the company long-term. This reduces turnover costs and enhances the company's reputation.

The Challenges of Traditional Leadership Development

Despite the clear importance of effective leadership, traditional leadership development programs often fall short. That’s because there are several concrete challenges to hiring and developing great managers, including:

A Limited Talent Pool

71% of companies say finding high-quality talent is their biggest recruiting obstacle. The scarcity of managerial talent highlights the need for better identification and development processes — particularly because hiring managers often face tight deadlines and last-minute recruiting demands. These pressures make it tough to thoroughly vet and select the best candidates, leading to rushed decisions and potentially suboptimal hires.

A Competitive Market

The best talent works best where they’re respected and feel valued. Sadly, most great employees don’t feel that way and leave before even becoming a manager. In fact, a survey by job recruiting site Monster found that 95% of employees are looking for another job.  

Making changes to an entire organization’s culture may be the best way to keep and grow these employees, but leadership may not have the time or budget to focus on those changes. Even if managers are just looking for better compensation, companies have tightened their purse strings and may not be able to offer competitive compensation packages.

A Lack of Internal Development Resources

Many organizations face challenges in providing clear growth paths and development opportunities for potential managers. This can make it difficult to retain and promote internal talent to management positions.  

Even if they do get promoted to management roles, they may not get the feedback or coaching they need to become managers employees want to work with. At the same time, they’re having to deal with a whole new set of office politics, which contributes to their overall stress level and hinders their ability to lead.

How AI Can Enhance Leadership Development

AI offers a solution to many of the challenges faced by traditional leadership development programs.  

One of the key advantages of AI is its ability to personalize learning experiences. AI-driven assessments can identify an individual’s strengths and weaknesses, tailoring development programs to address specific needs. This ensures that each leader receives the training and support they require to excel.

AI also offers unparalleled scalability, providing consistent training across large organizations. For example, AI-powered platforms can deliver personalized coaching and development plans to thousands of employees simultaneously, something traditional programs struggle to achieve. Additionally, AI can provide real-time feedback, allowing for continuous improvement and development.

3 Companies Incorporating AI Into Manager Training

Several companies are leveraging AI-driven approaches for manager development. Here are some notable examples:

Dollar General

Dollar General has undergone rapid expansion in the past three years, adding over 900 stores to its national footprint. While this growth was exciting, it also created downstream problems — it was much tougher to standardize back-office operations and maintain a positive customer experience while scaling at a lightning-fast clip.


To alleviate these growing pains, Dollar General leadership approached Launch Consulting to help them redesign their manager learning and development program. The team quickly got to work, overhauling the manager onboarding and training program with new material and new AI-driven learning modalities to increase initial engagement and provide long-term support.

After relaunching the program, Dollar General saw:

  • An uptick in revenue from streamlined operations
  • Drastically reduced turnover for managers
  • A 10% increase in customer satisfaction metrics

Kiehl's

Kiehl's, a well-known skincare company, implemented Docebo's AI-powered global learning platform to deliver personalized learning experiences that cater to each manager's unique needs.

AI analyzes individual learning patterns, performance data, and development goals, providing tailored content to each Kiehl employee to drive continuous improvement. This approach ensures that Kiehl's managers receive relevant, on-demand training that aligns with their specific career trajectories and leadership responsibilities.  

The platform also has built-in real-time feedback and adaptive learning paths, empowering managers to develop critical skills more efficiently and ensuring that Kiehl’s leaders are well-equipped to lead their teams effectively in a competitive market. So far, the company has achieved a 100% adoption rate for training completion and educator adoption.

BetterUp

BetterUp, a coaching platform, has developed its own AI technology, BetterUp Manage, to offer coaching directly in an employee’s flow of work. It’s designed to be:  

  • Scalable, making leadership training accessible to managers throughout large organizations.
  • Malleable, using AI-responsive design to adjust training as company priorities change.
  • Digestible, leveraging bite-sized nudges to encourage adoption.
  • Real-time, giving managers tips and advice when they need it.

Companies can also customize certain scenarios based on the challenges managers at their organization often face, making for more dynamic, highly relevant training. They can connect this to other HR tools to create a 360-degree view of manager progress.

Start Your AI-First Leadership Journey Today

Good managers play a pivotal role in the success of enterprise companies. They are responsible for guiding their teams toward achieving business goals and creating an environment that fosters collaboration and employee satisfaction. And AI can help companies nurture, grow, and prepare their managers to lead with confidence and innovation.

But what if you’re not sure where to start, what tools to use, or how to motivate your employees to change and adapt to an AI-First environment?

Launch can help you get there. We’re on a mission to help every large and growing organization navigate a data and AI-First strategy. Take our free AI Readiness Self-Assessment to find out where you sit. Or get moving in the AI direction faster with a live AI Transformation Workshop.

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As businesses strive to stay competitive and innovative, the importance of effective leadership cannot be overstated. Good managers are essential for driving team performance, making strategic decisions, and fostering a positive company culture. However, traditional leadership development programs often fall short of preparing leaders for the complex challenges of today’s business landscape.

In a survey conducted by Oji Life Lab last year, 4 in 10 workers rated first-time managers as being weak at reducing conflict, handling difficult situations, providing quality feedback, running a productive meeting, and making decisions.

To cultivate the next generation of executives, enterprises need to think proactively about how to close these gaps and ensure that their leaders are well-equipped to navigate an ever-evolving corporate environment.

The good news? AI can help. Its ability to personalize learning experiences, provide real-time feedback, and scale training across large organizations makes it an invaluable tool for effective leadership training at all levels in all industries.

Why Good Managers Matter

Good managers are the backbone of any successful enterprise. They play a vital role in driving team performance, making strategic decisions, and fostering a positive company culture.

According to Gallup’s State of the American Manager report, managers account for at least 70% of the variance in employee engagement scores across business units. Data also shows that good managers have a significant impact on:

  • Employee Experience: According to CultureAmp, employees who rate their senior leaders as good managers are far more likely to recommend the company as a great place to work, have confidence in the company's leadership, and believe in the company's future success.
  • Business Performance: Gallup finds that great managers contribute 48% more profit to their companies than average managers. Unsurprisingly, employees under good managers report better health outcomes and decreased negative coping behaviors, improving a company’s overall productivity.
  • Employee Retention and Advocacy: Recent research by Perceptyx found that 80% of employees working under great managers report better interdepartmental cooperation, alignment with the organization's vision, and a sense of belonging. Additionally, employees working under their best managers are 2.5 times more likely to be fully engaged and stay with the company long-term. This reduces turnover costs and enhances the company's reputation.

The Challenges of Traditional Leadership Development

Despite the clear importance of effective leadership, traditional leadership development programs often fall short. That’s because there are several concrete challenges to hiring and developing great managers, including:

A Limited Talent Pool

71% of companies say finding high-quality talent is their biggest recruiting obstacle. The scarcity of managerial talent highlights the need for better identification and development processes — particularly because hiring managers often face tight deadlines and last-minute recruiting demands. These pressures make it tough to thoroughly vet and select the best candidates, leading to rushed decisions and potentially suboptimal hires.

A Competitive Market

The best talent works best where they’re respected and feel valued. Sadly, most great employees don’t feel that way and leave before even becoming a manager. In fact, a survey by job recruiting site Monster found that 95% of employees are looking for another job.  

Making changes to an entire organization’s culture may be the best way to keep and grow these employees, but leadership may not have the time or budget to focus on those changes. Even if managers are just looking for better compensation, companies have tightened their purse strings and may not be able to offer competitive compensation packages.

A Lack of Internal Development Resources

Many organizations face challenges in providing clear growth paths and development opportunities for potential managers. This can make it difficult to retain and promote internal talent to management positions.  

Even if they do get promoted to management roles, they may not get the feedback or coaching they need to become managers employees want to work with. At the same time, they’re having to deal with a whole new set of office politics, which contributes to their overall stress level and hinders their ability to lead.

How AI Can Enhance Leadership Development

AI offers a solution to many of the challenges faced by traditional leadership development programs.  

One of the key advantages of AI is its ability to personalize learning experiences. AI-driven assessments can identify an individual’s strengths and weaknesses, tailoring development programs to address specific needs. This ensures that each leader receives the training and support they require to excel.

AI also offers unparalleled scalability, providing consistent training across large organizations. For example, AI-powered platforms can deliver personalized coaching and development plans to thousands of employees simultaneously, something traditional programs struggle to achieve. Additionally, AI can provide real-time feedback, allowing for continuous improvement and development.

3 Companies Incorporating AI Into Manager Training

Several companies are leveraging AI-driven approaches for manager development. Here are some notable examples:

Dollar General

Dollar General has undergone rapid expansion in the past three years, adding over 900 stores to its national footprint. While this growth was exciting, it also created downstream problems — it was much tougher to standardize back-office operations and maintain a positive customer experience while scaling at a lightning-fast clip.


To alleviate these growing pains, Dollar General leadership approached Launch Consulting to help them redesign their manager learning and development program. The team quickly got to work, overhauling the manager onboarding and training program with new material and new AI-driven learning modalities to increase initial engagement and provide long-term support.

After relaunching the program, Dollar General saw:

  • An uptick in revenue from streamlined operations
  • Drastically reduced turnover for managers
  • A 10% increase in customer satisfaction metrics

Kiehl's

Kiehl's, a well-known skincare company, implemented Docebo's AI-powered global learning platform to deliver personalized learning experiences that cater to each manager's unique needs.

AI analyzes individual learning patterns, performance data, and development goals, providing tailored content to each Kiehl employee to drive continuous improvement. This approach ensures that Kiehl's managers receive relevant, on-demand training that aligns with their specific career trajectories and leadership responsibilities.  

The platform also has built-in real-time feedback and adaptive learning paths, empowering managers to develop critical skills more efficiently and ensuring that Kiehl’s leaders are well-equipped to lead their teams effectively in a competitive market. So far, the company has achieved a 100% adoption rate for training completion and educator adoption.

BetterUp

BetterUp, a coaching platform, has developed its own AI technology, BetterUp Manage, to offer coaching directly in an employee’s flow of work. It’s designed to be:  

  • Scalable, making leadership training accessible to managers throughout large organizations.
  • Malleable, using AI-responsive design to adjust training as company priorities change.
  • Digestible, leveraging bite-sized nudges to encourage adoption.
  • Real-time, giving managers tips and advice when they need it.

Companies can also customize certain scenarios based on the challenges managers at their organization often face, making for more dynamic, highly relevant training. They can connect this to other HR tools to create a 360-degree view of manager progress.

Start Your AI-First Leadership Journey Today

Good managers play a pivotal role in the success of enterprise companies. They are responsible for guiding their teams toward achieving business goals and creating an environment that fosters collaboration and employee satisfaction. And AI can help companies nurture, grow, and prepare their managers to lead with confidence and innovation.

But what if you’re not sure where to start, what tools to use, or how to motivate your employees to change and adapt to an AI-First environment?

Launch can help you get there. We’re on a mission to help every large and growing organization navigate a data and AI-First strategy. Take our free AI Readiness Self-Assessment to find out where you sit. Or get moving in the AI direction faster with a live AI Transformation Workshop.

Back to top

More from
Latest news

Discover latest posts from the NSIDE team.

Recent posts
About
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