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- Leadership Growth and Leadership Maturity in a VUCA World: a Developmental Approach
In today's volatile, uncertain, complex, and ambiguous (VUCA) business environment, traditional leadership skills and knowledge are no longer sufficient to drive sustainable growth and transformation. As a leader, you're likely familiar with the need for horizontal growth (expanding what you know and do). You might have found yourself in situations where your learned decision-making skills could not be applied anymore, and the knowledge and skills acquired from traditional business training courses don't seem to help you address the challenges you face. You perfect your craft, yet, you might feel as though you are hitting a wall, communication feels cross-wired when you and/or your managers, team members and subordinates can't seem to get their ideas ahead. You can't help but wonder what is missing. Image: Abstract Technology by Carlos Castilla For this reason, leaders might benefit from vertical growth—the evolution of who you are as a leader and how you navigate ambiguity, change, and complexity. Read on to find out what vertical development is, why developmental leadership maturity matters, and gain an understanding of developmental stages. Why Developmental Leadership Maturity Matters Understanding Developmental Stages Embracing Vertical Development Why Developmental Leadership Maturity Matters In a VUCA world, leadership maturity is not just a personal journey—it's an organizational imperative. Research shows that leaders with high developmental maturity, those who operate from post-conventional stages of meaning-making, are not just more effective in their roles—they can also drive organizational transformation at unprecedented rates. Such leaders are rated over twice as effective by boards of directors [1], and their developmental maturity is a significant predictor of 360-degree performance ratings [2]. Research shows that post-conventional leaders drive higher organizational transformation success, with a staggering 59% of variance in transformation outcomes explained by the developmental stage of the leaders in charge [3]. By now, you might be curious about what we mean by "developmental leadership maturity." If you're eager to dive straight into an explanation, feel free to jump ahead to the section titled "Understanding Developmental Stages." There, we'll explore what developmental stages mean and how they shape effective leadership. The benefits of advanced leadership maturity extend beyond organizational outcomes to individual career trajectories. Studies reveal that leaders at later developmental stages consistently outperform their peers in key metrics of professional success. These mature leaders experience accelerated career growth, with salary increases occurring 1.6 times faster and promotion rates 1.3 times higher than those at earlier developmental stages. Moreover, the impact of their leadership ripples throughout their organizations. 360° feedback from their teams is significantly higher, as evidenced by a 33% increase in leadership effectiveness ratings on widely-used instruments such as the Multifactor Leadership Questionnaire (MLQ) and the Leadership Practices Inventory (LPI). Additionally, these leaders excel at emotional intelligence and cooperation: results of 360° feedback from their teams is significantly higher (e.g., scoring 70% higher Collaborating scores on the Thomas-Killman Conflict Mode Instrument, and 25% higher on emotional intelligence tests (EQ-i) [4]). But what exactly is developmental maturity, and how does it transform leadership effectiveness? Understanding Developmental Stages Horizontal growth involves the accumulation of skills, expertise, and knowledge. It's about improving operational efficiency, managing teams, and refining decision-making capabilities. While crucial, it remains largely tactical. Vertical growth, in contrast, represents a transformative expansion in a leader's cognitive, emotional, and relational capacities. It's akin to upgrading the operating system of your mind, enabling you to perceive and navigate complexity with greater sophistication. This growth manifests as a fundamental shift in how you construct meaning from experiences, make decisions in ambiguous situations, and engage with diverse perspectives. As you progress vertically, you develop an increasingly nuanced worldview, moving from rigid, either-or thinking to embracing paradoxes, systems thinking, and long-term strategic foresight. The unfolding of stages of vertical growth is best understood through theories of adult development. Within the broader field of adult development, there are several distinct branches, one of which is Ego Development Theory (EDT). Originally pioneered by Jane Loevinger at Washington University and later expanded and refined by Susanne Cook-Greuter at Harvard, EDT describes how adult meaning-making evolves throughout a lifetime, with important implications for leadership (see e.g. Harvard Business Review’s Transformations of Leadership ). Leaders evolve through different stages, from conventional (e.g. rule-oriented and perfectionist Experts, goal- and success-oriented Achievers) to post-conventional (e.g. strategic, inclusive and assumption-questioning Individualists, or generative, interdependent and transformational Strategists). Let's explore contrasting stages of development frequently seen in the corporate world to illustrate the impact of leadership maturity. (Note: The individuals and scenarios mentioned are drawn from Harvard Business School case studies, providing real-world examples of leadership in action) The Expert: Stuck in Operational Mastery "Expert" used in this context is a name of one of the stages of development in the EDT by theory originators. The naming of the stage is a generalization of characteristics shared by a researched population who have a similar worldview to those that many of us might have encountered in life, whom we can also identify as "expert" in their respective field. Hence, sometimes, the label of a stage ("Expert") might be mistakenly used as a label to "label" someone based on their characteristics or behavior. We -- at LeadershipMaturity.ai -- would like to make a distinction between these two uses as we believe that each and every individual is greater than the sum of their accumulated and/or earned nouns and adjectives that are used by themselves or others to describe these individuals. Example: Anthony Starks at InSiL Therapeutics ( HBS Case Study 617029-PDF-ENG.PDF ) Anthony Starks, the Chief Scientific Officer at InSiL Therapeutics, exemplifies a leader at the Expert stage. While his deep technical expertise in computational biology and drug discovery was crucial to the company's scientific breakthroughs, his rigid adherence to his scientific vision and inability to collaborate effectively with business or board members ultimately stifled progress. Starks frequently dismissed the input of other executives, including Nobel Prize-level scientists, and refused to align with the broader organizational strategy. His inability to move beyond his role as the "technical expert" hindered InSiL from making key strategic decisions, particularly around R&D investment. This challenge is common for leaders at the Expert stage, who prioritize technical mastery over relational or strategic skills. While their expertise is valuable, it often comes at the cost of leadership effectiveness, as they struggle to influence and collaborate across functions. The Strategist: Transforming Organizations In contrast, post-conventional leaders operating at the Strategist stage demonstrate the ability to hold multiple perspectives, navigate paradoxes, and lead transformational change. They understand the systemic implications of their decisions and are skilled at aligning short-term results with long-term strategies. Example: David Neeleman, Founder of JetBlue ( HBS Case Study 409024-PDF-ENG.PDF ) David Neeleman, the founder of JetBlue, illustrates a leader at the Strategist level. Neeleman built JetBlue not just as a low-cost airline but as a customer-centric brand, innovating within an established industry by prioritizing customer service, technological innovation, and employee empowerment. Unlike Starks, Neeleman consistently engaged with multiple stakeholders, aligning his vision with the broader organizational strategy and external market conditions. His ability to operate from a more complex, strategic vantage point allowed him to lead JetBlue through significant industry turbulence, including post-9/11 challenges in the airline industry. Neeleman's leadership style reflected a sophisticated understanding of both operational complexity and human dynamics, enabling him to lead transformation not just within JetBlue, but within the airline industry as a whole. The Individualist: Leading with Authenticity Between the Expert and the Strategist lies another post-conventional stage: the Individualist. Leaders at this stage focus on aligning their values with their actions, often challenging organizational norms to create more innovative, human-centered cultures. Example: Jean-Claude Le Grand at L'Oréal ( HBS Case Study 420106-PDF-ENG.PDF ) Jean-Claude Le Grand, Director of Corporate Diversity at L'Oréal, exemplifies leadership at the Individualist level. Le Grand spearheaded a transformational shift at L'Oréal, aligning diversity and inclusion efforts with business strategy. His ability to challenge the status quo, introduce new perspectives on talent management, and align corporate values with everyday actions led to increased innovation and global market expansion. Le Grand's leadership reflects the Individualist's capacity to balance personal integrity with organizational change. He successfully leveraged diversity not just as an HR initiative but as a core element of L'Oréal's business strategy, resulting in both financial growth and enhanced corporate reputation. However, his approach also reveals typical Individualist-stage limitations: while his high-touch, relationship-based leadership style proved effective individually, it faced scaling challenges across an 83,000-person organization. Despite strong values and vision, persistent gaps remained in emerging market leadership and women in strategic positions, highlighting the challenge of translating personal conviction into systematic organizational change. Embracing Vertical Development As a high-performing executive, embracing vertical development is no longer just about personal growth—it's a competitive advantage that can drive both individual and organizational success in the face of complexity. By understanding and actively working on your stage of leadership maturity, you can enhance your ability to navigate the VUCA landscape, drive innovation, and lead transformational change in your organization. Vertical growth from conventional to post-conventional leadership is challenging but rewarding. It requires self-reflection, openness to feedback, and a willingness to challenge your own assumptions. But as the examples of Neeleman and Le Grand show, the results can be transformative—not just for you as a leader, but for your entire organization. The journey to becoming a transformational leader starts with understanding and evolving your leadership maturity. By taking proactive steps toward vertical growth, you can drive innovation, resilience, and sustainable success in your organization. LeadershipMaturity.ai offers an automated developmental assessment and growth optimization service, leveraging cognitive AI to provide instant assessments and personalized growth insights grounded in psychological research. But most importantly, we and our team of dedicated advisors, partners, and coaches are looking forward to utilizing our knowledge and skills to assist you on your embarking your deliberate developmental journey. We are a message away! LeadershipMaturity.ai team.
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(*) -- This cost is based on typical service terms and conditions of other established service providers: results report is available to assessment-takers who takes part in either a group or 1:1 debrief session during which time a certified vertical development coach explains the results to the assessment-takers.
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(**) -- This figure is based on our research of hundreds of leaders.