While companies are cutting back on their spending for leadership development, the value that is placed on this very important initiative has not faltered.  Companies are looking for ways to do leadership development smarter and more cost effectively.  As companies look to the outside for help in developing comprehensive blended programs, they are looking at a number of criteria for making thoughtful and strategic solution provider selections.

So what are companies considering when selecting a leadership vendor?  According to a recent study we conducted, we found the top 3 criteria for vendor selection is the vendor’s ability to provide:

1. Customization;
2. Measurement; and,
3. A Full-Service Solution

The number one criterion, as identified by 76% of the more than 380 survey respondents, is a vendor’s ability and willingness to customize programs to match the unique needs of their clients.  Under pressure to deliver high quality programs with immediate business impact, companies are no longer satisfied with off-the-shelf solutions.  Instead of purchasing a library of courses to meet the broad needs of an entire leadership pool, today companies are much more selective and target the most critical segments of their leadership population.

"Business strategy alignment" and "relevant content/case studies" were by far the two most important areas of customization.  However, this need for customization is also driving companies to select vendors that fit their company’s culture.  “It is always a challenge to find [a vendor] that fits the environment and the need…The hardest part is the match,” stated the manager global learning and organizational development at Kinetic Concepts, a global medical technology company.

When researching for potential leadership vendors to partner with look for vendors that have comparable clients, in terms of industry, size and globalization.  It is more likely that these vendors (that have experience with similar companies) understand your business and can customize programs more easily.

Are you planning on selecting a vendor to partner with on your leadership development efforts?  How would you describe the available options for purchasing leadership training services and content today?  Let us know.

Over the next couple of weeks, I will be publishing two more blogs regarding leadership vendors:

• Leadership Vendors: Part 2 - Customer Loyalty
• Leadership Vendors: Part 3 – Market Gaps

I will also be addressing the Leadership Solution Providers Market at the Bersin & Associates IMPACT Conference April 14-16.  I hope you will join us!