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Following the

Leaders or Leading
the Followers
Developing Effective Leadership in the
21st Century

Summary of key findings from


Leadership Management Australasias (LMA)
Leadership, Employment and Direction (L.E.A.D.) Survey
November 2016

Creating exceptional
results through people

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

New information to help leaders understand what is expected of them in their roles
and how best to identify and develop future leaders with confidence and success.
Summary of key findings from the Leadership Management Australasias (LMA)
Leadership, Employment and Direction (L.E.A.D.) Survey (November 2016)

OVERVIEW
New findings from LMAs latest Leadership, Employment and Direction (L.E.A.D) Survey reveal

The strategic importance of leadership development in our organisations

The less than satisfying processes currently being used and less than inspiring success being
enjoyed to develop our future leaders
The competencies effective leaders are expected to possess and the behaviours they are expected
to exhibit in their roles
The extent to which change impacts on leadership and the vital role communication plays in
reassuring people about the future of their organisation as well as their personal future
The power and potential of tapping into the diversity in our workforce to identify talent and
development opportunities, particularly in the leadership arena.
These issues are among the most profound to emerge from this wave of the L.E.A.D. Survey and they
implore leaders and managers to invest the necessary time and energy to understand and leverage the
leadership potential that exists within their organisations.
The smarter leaders are those that have already identified the talent in their midst, have developed
appropriately tailored career pathways, training and development regimens and succession plans to
guarantee the future leadership of the organisation.
The rest are running to catch-up and will find some critical insights to help them do so in the pages that
follow. As Ralph Nader once said:
I start with the premise that the function of leadership is to produce more leaders, not
more followers.
Ralph Nader

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1. To lead or
not to lead?
Is that really
the right
question?

Where is the leadership in our organisations? And a more


important question where is the leadership development in our
organisations?

Asked for the first time in this wave of the L.E.A.D. Survey, we can now
confirm that leadership development is either the most important or one
of the top few strategic challenges facing our organisations. However the
processes used by organisations to develop their leaders appear to be
lacking and may fail to adequately prepare future leaders.
Strategic importance of leadership development
More than two-thirds of employees at all levels of organisations believe leadership development is either the
most important or one of the top few strategic challenges facing their organisations:
Leaders
(Executives/
Senior
Managers)
%

Managers
(Middle
Managers
and
Supervisors)
%

Employees
(NonManagerial/
Supervisory
Employees)
%

The most important strategic challenge for my organisation

15

11

15

One of the top few strategic challenges for my organisation

64

56

57

Just below the top few strategic challenges for my organisation

17

20

16

Not an important strategic challenge for my organisation

Unable to rate

Q. Which of the following best describes how strategically important leadership development is for your organisations future?

Leaders themselves see the strategic importance of this issue (79%) to a greater extent than Non-Managerial
Employees (72%) and Middle Managers/Supervisors (67%). The prominence of the issue in the minds of
Leaders highlights the importance of succession planning and the need to consistently work to develop the
capabilities of emerging leaders.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

Satisfaction with current leadership development processes


However, in looking to fulfil the pressing need for leadership development, it is deeply disappointing that
between 21% and 41% at each level are dissatisfied with current leadership development processes used in
their organisations a sad situation given this is where leaders of the future learn necessary skills and build
their capabilities in leadership:

Leaders
(Executives/
Senior
Managers)
%

Managers
(Middle
Managers
and
Supervisors)
%

Employees
(NonManagerial/
Supervisory
Employees)
%

Very satisfied

11

11

Quite satisfied

55

49

61

Quite dissatisfied

23

34

17

Very dissatisfied

Unable to rate

Q. How satisfied are you with the leadership development processes currently used in your organisation?

It is amongst Middle-Manager/Supervisor ranks that dissatisfaction is at its greatest suggesting that


development processes lack the relevance or potency needed by this next level of leaders. This result
suggests they are feeling the weight of expectation but are not receiving the support to deal with that
expectation.
How well does your organisation develop leaders at each of the following levels?
Reflecting the levels of dissatisfaction, there is clearly a great deal of room for improvement in the
development process with just 49% to 68% at all levels believing their organisations develop leaders at all
levels very well or quite well or conversely, as many as half believing the organisation does poorly on this
front:
How well do organisations develop
leaders?
(% very well or quite well)

Leaders
(Executives/
Senior
Managers)
%

Managers
(Middle
Managers
and
Supervisors)
%

Employees
(NonManagerial/
Supervisory
Employees)
%

New/first time leaders

61

52

61

Next generation/emerging leaders

61

54

63

Senior/experienced leaders

59

49

68

Q. In your view, how well does your organisation develop leaders at each of the following levels?
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Managers in particular identify that the development process requires urgent attention in order to
deliver the desired outcome.
The challenge to organisation leaders then is to identify the leadership development needs and deliver
this development in a meaningful and timely fashion to protect the organisations future from a leadership
perspective.
Leadership competencies
The recipe for developing and delivering effective leadership is reasonably simple to follow with the
appropriate level of training and development. People working at all levels of organisations have a succinct
and focused set of expectations that leaders can fulfil if they put their minds to it. The main areas of focus
in terms of leadership competencies expected are communication, developing and coaching others
and problem solving and decision-making:
Employees
2016
(Rank)

Managers
2016
(Rank)

Leaders
2016
(Rank)

Communication skills

Developing and coaching others

Leadership competencies

Problem solving and decision-making

Planning and organising

Building relationships (external and internal)

Teamwork

Strategic thinking

Q. Looking at this list of leadership competencies, please nominate which you believe are the five most critical competencies
that leaders and senior managers need to do their job well today.

The similarity in rankings highlights that generally speaking, everyone knows what competencies make a
leader effective in their role its just developing and delivering those competencies consistently that many
organisations struggle to do.
Leadership behaviours
Echoing the leadership competencies, many of the leadership behaviours seen from leaders and which
leaders themselves believe they exhibit are related to core leadership competencies. There is a strong
focus on communication, problem solving and decisiveness and on developing and supporting their team.
However, there are some major disconnects between what Leaders believe they exhibit most and Managers
and Employees see most from their Leaders. For example, whereas Leaders believe they are most likely
to exhibit motivation and bringing out the best in others, this behaviour is ranked well down in the eyes of
Managers and Employees who see a strong results orientation as the most prominent behaviour shown.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

Likewise, Managers and Employees see composure and confidence from their Leaders at a far greater level
than the Leaders themselves do:
Leadership behaviours

Leaders
Exhibited
(Rank)

Managers
Seen (Rank)

Employees
Seen
(Rank)

Motivating and bringing out the best in others

18

16

Developing others

17

Being supportive

Operating with a strong results orientation

=4

Solving problems effectively

=4

Remaining composed and confident in uncertainty

Facilitating group collaboration

14

17

Developing and sharing a collective mission

11

Championing desired change

=9

11

Role modelling organisational values

=9

13

14

Keeping groups organised and on task

11

Communicating prolifically and enthusiastically

=12

13

Seeking different perspectives

=12

12

Fostering mutual respect

14

20

19

Making quality decisions

15

12

Clarifying objectives, rewards and consequences

16

16

10

Recovering positively from failures

17

10

15

Offering a critical perspective

=18

Giving praise

=18

19

18

Differentiating among followers

20

15

20

Q. Leaders Looking at the list of leadership behaviours below, please identify the FIVE behaviours you exhibit most as a
leader/senior manager of your organisation
Managers Looking at the list of leadership behaviours below, please identify the FIVE behaviours you see most from the
leaders/senior managers in your organisation
Employees Looking at the list of leadership behaviours below, please identify the FIVE behaviours you see most from the
leaders/senior managers in of your organisation

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What does this mean for existing leaders and leadership development
generally?
The great news is that we know what is expected from our leaders. We also know that developing leaders
is fundamental to creating sustainable organisations. And we know what competencies and behaviours
demonstrate effectiveness in the role.
So existing leaders need to work hard to fulfil the expectations people have about your leadership and ensure
it impacts on them positively. Thinking about and acting in accordance with the competencies expected
of you will help develop quality leadership and quality leaders for the future. Given the critical importance
of leadership development, you owe it to the next generation of leaders to do it well, be the example they
should follow and help them to learn how to do it better in future not just do what it takes to retain the
formal leader role or title.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

2. Coping with change


One of the main pressures on the leadership development process is change. Our organisations are
changing like never before and at all levels were being forced to accept that change is not just good for us,
its essential for sustainability, functionality, efficiency and profitability. Coping with change has therefore
evolved to become a core skill for leaders, managers and employees at all levels.
So how well are you coping with change in a fast-paced, ever-changing organisational world?
Since the L.E.A.D. Survey began, weve been asking how well people at all levels cope with change:
Employees believe they personally cope with change better than their leaders and managers believe their
employees do 93% very or quite well compared to 79% of leaders and 76% of managers. Even so,
the proportion of employees believing they cope Very Well with change is steady at a little over a quarter
(28%), down from 35% a decade ago.
On the other hand, leaders and managers believe they personally cope with change better than their
employees believe their leaders and managers do 91% of leaders and 89% of managers compared to
81% of employees. Again, the extent to which leaders and managers feel they cope Very Well has settled
at around a third for leaders (37%) and a quarter for managers (24%) both down around 10 points over
the past decade.
It would seem that at all levels were comfortable with change and do not fear it. Over the long-term our
ability to adapt has held us in good stead and enabled organisations and their employees to address
significant global, national and local challenges.
However, our confidence in coping with change appears to have waned somewhat, presenting leaders and
managers with an opportunity to help their people become more resilient.
Employees coping with change
Employees coping with
change
(Employee view)

2000
%

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

36

35

29

29

27

28

Quite well

58

57

66

65

67

65

Not very well

Not at all well

Not sure

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Employees coping with


change
(Manager view)

2000
%

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

10

Quite well

68

70

70

66

69

69

Not very well

21

19

18

22

20

20

Not at all well

Not sure

2000
%

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

20

14

13

12

13

17

Quite well

70

65

76

67

69

62

Not very well

18

10

18

16

18

Not at all well

Not sure

Employees coping with


change
(Leader view)

Q. Change affects people at different levels in organisations in different ways. When it comes to dealing with the magnitude
and pace of change affecting your organisation, how well would you say you personally (your staff) are coping with change?

What do leaders and managers need to be doing?


Provide appropriate support to enable change to be undertaken very often change is implemented
and then we move onto other more pressing matters, forgetting that ongoing support for change and
feedback is vital to ensure the change continues to work as planned.
Continue to skill the workforce to embrace and deal with change equip them with tools and techniques
to successfully plan, lead and embed change. Celebrate successful change and learn from less
successful change initiatives.
Involve people early and deeply in change - as drivers of change rather than victims of change the
earlier and more deeply we involve our people in change, the greater their commitment to planning and
implementing the change to deliver success. They begin to own the change and support it rather than
being victims or spectators of the change process.
Communicate widely, regularly and consistently about change that is taking place communication
underpins our leadership competencies and therefore our ability to successfully lead change.
Communication provides the opportunity to seek input, gain commitment and buy-in and work
collaboratively to make the change a reality.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

Leaders and managers coping with change


Q. How well would you say you (your leaders and senior managers) are coping with change?

Leaders and managers


coping with change
(Leader view)

2000
%

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

47

25

39

34

41

37

Quite well

49

54

57

59

52

54

Not very well

16

10

Not at all well

Not sure

2000
%

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

31

32

30

26

27

24

Leaders and managers


coping with change
(Manager view)
Quite well

62

62

65

69

68

65

Not very well

10

Not at all well

Not sure

2005/06
%

2009/10
%

2013
%

2014
%

2016
%

Very well

23

21

17

15

18

Quite well

56

61

62

63

63

Not very well

14

13

15

16

14

Not at all well

Not sure

Leaders and managers coping with


change (Employee view)

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3. Communication the two-way street


to dealing with change and uncertainty
Robert McCloskey once famously said I know that you believe you understand
what you think I said, but Im not sure you realize that what you heard is not what
I meant. Or in other words, communication is fraught with enormous potential for
misunderstanding, misinformation and misinterpretation such that we can never be
quite sure what people have really heard.
One thing is for certain though if youre NOT communicating at all or are doing so intermittently or poorly,
there will be large gaps between what you think youre saying and what others think they are hearing (or not
hearing as the case may be).
Nearly half the leaders (47%) believe theyre communicating to a great extent about the future of the
organisation yet just 29% of employees and 16% of managers believe this is the case.

Communication about your personal future


Employees about leader/
manager communication

Managers about leaders


communication

Leaders about their


communication to staff

Great extent

24

15

39

Moderate extent

46

43

51

Small extent

21

29

Not at all

13

Great/moderate extent

70

58

90

Small extent/not at all

30

42

10

Employees - To what extent have your business leaders and senior managers reassured you about your future with your
organisation?
Managers - To what extent have your business leaders and senior managers communicated with you about your future
with the organisation?
Leaders - To what extent have you communicated with your staff about their future with the organisation?

Leaders and managers need to recognise that reassurance about the organisations future and the future of
individuals is paramount to securing a stable, productive and harmonious workforce.
Periodically settling the horses by providing information, vision, direction and purpose to the people who
make the organisation perform will help enable them to deliver results as a team. When this focus also
highlights the future for each individual, their meaning and purpose become clearer and their performance
improves as a result.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

4. Diversity leveraging the gold that lies within


A lot of airtime has been devoted to the topic of diversity lately particularly cultural or ethnic diversity.
On the world stage, the US Presidential election front-runners continue to exchange vitriolic and hurtful
diatribes about building walls (physical and emotional) to protect our values from those who would threaten
our way of life. In response, leading global recording artists have recently joined forces to send a clear
message through song about the need to work together more effectively as a diverse world community.
In Australia (and to some extent in New Zealand), diversity in workplaces, communities, family structures and
personal relationships has been at the forefront of societal debate of late through, for example:
The emotionally-charged discussion around legalising same-sex marriage in Australia
The prospect of a referendum to formally recognise Indigenous Australians in the Constitution
The introduction of Australias National Disability Insurance Scheme (NDIS) and the subsequent snails
pace in enabling eligible claimants access to service under the scheme
Discussions around balancing gender ratios in high-profile organisations and the perceived potential
negative impact (e.g. Victorias Metropolitan Fire Brigade)
It seems every time you turn on the TV or radio someone is questioning the merits and value of diversity and
amplifying the negative impact they believe it is having on our way of life like its a Yes/No decision as to
whether diversity should be permitted or worse still tolerated.
Are we too diverse or not diverse enough? Are we too accepting of different world-views or becoming
increasingly intolerant or even xenophobic? Are we suffering because were too pluralistic or failing to truly
capitalise on the many benefits of the diversity that surrounds us?
Diversity is used as shorthand or code for multiculturalism or ethnic diversity when clearly it is so much
more than the shade of ones skin or shape of ones eyes. By limiting the discussion in this way, organisations
are seriously missing golden opportunities to tap into and leverage the richness, the colour and movement of
their workforce.

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Latest Leadership Employment and Direction (L.E.A.D.) Survey results highlight that diversity is very much
part of our organisational cultures and, by definition, is a part of our lives that will increasingly need to feature
in the thoughts and plans of modern leaders and managers.
However, there is plenty of scope to harness, leverage and benefit from diversity to an even greater extent
than is currently evident it just takes courage and commitment from all of us.
Capitalising on workforce diversity
Looking at the extent to which organisations are currently capitalising on the diversity in their workforce, we
note that all segments (employees, managers, leaders) believe their organisations are capitalising on the
diversity of skills and experience of their workforce to a far greater degree than other diversity categories
(age, gender, ethnic/cultural):
100%
13%
90%

22%

17%

15%
22%

17%

21%

15%

20%

80%
70%
60%

43%

44%
47%
46%

41%

41%

39%
37%

40%

50%

20%

6%

4%

6%

7%

Employees

Age
Unable to rate

16%

12%

9%

12%

Managers

10%

Employees

12%

Leaders

8%

14%

Managers

10%

21%

20%

Gender
Not at all

Small extent

21%

10%

17%

12%

8%

6%

9%

Managers

18%

18%

Leaders

30%

24%

18%

Leaders

20%
25%

Employees

40%

Ethnic/cultural
Moderate extent

Great extent

Q. To what extent do you believe your organisation is capitalising on the following aspects of diversity in your
workforce?
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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

Overall, 80% of employees, 76% of managers and 83% of leaders believe their organisations capitalise on
diversity in skills and experience to a great or moderate extent. Contrast this with just 61% of employees,
53% of managers and 57% of leaders who believe their organisations capitalise on cultural or ethnic diversity
in their workforces. Only marginally better ratings are reported for organisations capitalising on age and
gender diversity in the workforce:

Age

Skills/
experience
EMP MGR LDR EMP MGR LDR EMP MGR LDR EMP MGR LDR
%
%
%
%
%
%
%
%
%
%
%
%
Great extent/moderate
extent
Small extent/ Not at all

Gender

Ethic/cultural

68

57

64

63

58

58

61

53

57

80

76

83

26

39

30

30

36

30

31

41

33

18

23

13

EMP Non-managerial/supervisory, MGR Middle managers/supervisors,


LDR Executives/senior managers)

So what does this mean for todays leaders and managers?


Clearly, there is a great deal of room for improvement for organisations to make better use of the rich tapestry
that exists on these and other dimensions of diversity such as religious, sexual, ability/disability, work
history, working conditions and so on. So, here are some important questions to ask yourself:
What am I doing to identify, understand, harness and leverage the diversity of my workforce?
When was the last time I focused some energy on better understanding what lies within each of my
team members?
And perhaps most importantly, how can I embrace, celebrate and amplify the positive impacts and
benefits that a diverse workforce brings to my organisation?
Were sure youd agree this is a far more productive use of the airwaves than to simply shut down the
diversity conversation because its all too hard or threatens our local village. Bottom line this is the new
way of life for the village youd better get used to it!

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SUMMARY
The latest findings from LMAs L.E.A.D. Survey remind modern leaders and managers that:
One of the core commitments a leader makes to their organisation
is to develop the leaders of the future to in effect stabilise and strengthen the
organisation to enable it to deal with the challenges it faces.
Leadership development processes MUST work to identify, develop,
enhance and capitalise on the leadership talent and potential of an
organisations human resource processes that either dont exist or dont work will
ultimately bring the organisation to its knees when the leadership needed for the future cannot be found
and harnessed.
The leadership equation is not an overly complicated one there is a clear
set of expectations around competencies and desired behaviours that allow the leader to be effective.
Its just a matter of focusing effort and investment to deliver on these expectations.
Change that is well-planned, well-implemented and well-led will
deliver on its potential and will be embraced and supported across
the organisation far from being a barrier to leadership development, we see change
increasingly being the catalyst or opportunity that affords emerging leaders the chance to demonstrate
their potential.
Reassurance about the organisations future and the future for the
individual is fundamental to stabilising and sustaining the workforce
overall understanding and tapping into the diversity that lies within is central to this
reassurance. When the talent and development potential of the workforce is understood, the sky is the
limit for tapping into leadership potential and developing tomorrows leaders.

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Following the Leaders or Leading the Followers:


Developing Effective Leadership in the 21st Century

ABOUT THE LEADERSHIP, EMPLOYMENT AND DIRECTION


(L.E.A.D.) SURVEY
LMAs L.E.A.D. survey is a year-round survey of people working at all levels within organisations in Australia
and New Zealand. It focuses on the issues, needs and expectations of employees, frontline managers,
supervisors and business leaders and senior managers.
The survey has been conducted since 2000, originally as an annual survey, and provides a sound basis
for identifying different perspectives from several key organisational audiences. It is now being conducted
year round and entirely online to maximise the opportunity for people to be involved. Adopting a consistent
approach over the last decade, supplemented by strategic evolutions and changes, the survey delivers a
comprehensive data source and trend information that few other surveys can match.
In addition to providing the most up-to-date picture of life in todays organisations via responses from the
three key audiences (Non-Managerial Employees, Frontline Managers / Supervisors, Business Leaders
/ Senior Managers) it identifies commonalities, differences and major gaps as well as areas for stronger
connection and collaboration.
Further, it provides the ability to predict where organisations may need to change, evolve or simply
consolidate to provide the environment that employees want to be part of into the future.
The audience for the research is drawn from organisations of all types (public, private, quasi-government,
franchises, not for profit), sizes (micro, small, medium, large), locations (metropolitan and regional) and
industries (20+ sectors).
The diversity and mix of those involved is one of the features of the survey and their response provides the
foundation for trend analysis, gap analysis and robust assessments of the current state of play in Australia
and New Zealand.
In the latest L.E.A.D. Survey, reported in this summary, the total number of participants involved was 2,712:

130

294

2,288

Business
Leaders / Senior
Managers

Middle
Managers /
Supervisors

Non-managerial
Employees

Sample sizes of this scale provide robust data and present a very accurate picture of the current state of play
in organisations overall and within key sub-groupings. The margin of sampling error at a total sample level is
less than 4%.

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The profile of the audience in the latest survey is as


follows:
Organisation type
4%

The profile of the respondents by level in the latest


survey is as follows:
Location

4%

2%
16%

68%

22%

10%

Metropolitan
Australia

Regional
Australia

New
Zealand

Gender
20%

Leaders

54%

Government/quasi

Public Company

Private Company

Franchise

Not for Profit

Other

Age

69%

31%

71%

29%

Managers

Leaders

5% 22% 41% 32%

Under 35
years old

35 - 44
years old

45 - 54
years old

55+ years
old

Managers

20% 31% 35% 15%


Under 35
years old

35 - 44
years old

45 - 54
years old

55+ years
old

Non-managerial Employees

35% 30% 24% 10%


Under 35
years old

35 - 44
years old

45 - 54
years old

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55+ years
old

Non-managerial Employees

65%

35%

The survey design and implementation is


overseen by an experienced, independent
research practitioner and the systems and
process used to conduct the survey ensure valid,
reliable and representative samples.
The audience is designed to replicate the structure
and nature of organisations at an overall level
to create an appropriate representation of the
population of people working in organisations
across Australia and New Zealand.

T SOLV
N
A
C
E
E
W

PROBLEMS

by using the same kind of

THINKING
W
D
H
E
E
S
N WE
U
E
W

CREATED THEM
Albert Einstein

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For further information, please call


Australia 03 9822 1301
New Zealand 0800 333 270
info@lma.biz

www.lma.biz

Summary of key findings from the Leadership Management Australasias (LMA)


Leadership, Employment and Direction (L.E.A.D.) Survey
November 2016

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