The 70-20-10 Development Model
- Dan Freschi - EDGE
- Oct 10, 2024
- 6 min read
Updated: Nov 18, 2024
A Practical Guide for Leaders at All Levels
At EDGE, we've been in the leader development business for nearly two decades. One of the development industry's mainstays is the 70-20-10 development model, a widely recognized framework for structuring leadership development and organizational learning that offers a flexible approach. All of our development practices, programs, and processes revolve around this model.
The model suggests that 70% of development comes from on-the-job experiences, 20% from social interactions (coaching, mentoring, and feedback), and 10% from formal education and training.
For leaders at all levels, this model is not just a tool but a powerful instrument that empowers them to take control of their development. It guides leadership growth and continuous improvement, aligning personal development strategies with organizational goals and giving them a sense of empowerment in their professional journey.
This article explores the 70-20-10 model in detail and provides actionable strategies, examples, and a practical framework for implementing it for leadership development at all levels. This pragmatic approach ensures that the 70-20-10 model is not just theoretical but can be effectively applied in your professional life, giving you a clear roadmap for your leadership development.
Understanding the 70-20-10 Model
The Breakdown:
70% - Experiential Learning: This model's core involves learning through doing. leaders grow significantly through challenging assignments, special projects, role transitions, and real-world problem-solving.
20%—Social Learning: In this context, social learning refers to mentoring, peer feedback, coaching, and networking. It is the direct interaction with others that helps refine skills, challenge thinking, and build relationships.
10% - Formal Learning: While formal education, such as attending workshops, taking courses, or earning certifications, is the smallest component, it provides a theoretical foundation and deepens professional knowledge.
The model's effectiveness lies in emphasizing learning as an ongoing process, not limited to structured training environments. Instead, it supports continuous learning and growth, encompassing day-to-day work, interactions with others, and specific learning experiences.
Why It Matters for Executives
The 70-20-10 model is particularly beneficial for executives, who often face unique challenges that require continuous adaptation and strategic thinking. Traditional training programs may not fully prepare leaders for the complex decisions and interpersonal dynamics they encounter. The 70-20-10 model offers a structured yet flexible approach to developing competencies in real-time, enhancing leaders' ability to lead through change, manage uncertainty, and drive strategic initiatives.
Applying the 70-20-10 Model:
Strategies for Executive Development
Leveraging the 70%: Experiential Learning for Executives
Experiential learning allows executives to grow by taking on new responsibilities, navigating complex challenges, and reflecting on outcomes.
Here are ways executives can apply experiential learning:
Stretch Assignments: Take on projects outside the everyday responsibilities, such as leading a cross-functional team or managing a high-risk project.
Example: An executive in a retail organization took on a global expansion initiative, requiring them to navigate cultural differences, new market conditions, and local regulatory requirements. The project expanded their strategic planning capabilities and increased their resilience in handling high-stakes decisions.
Role Transitions: Change roles within the organization to broaden experience. For example, an operations executive might move into a strategic planning role to gain insights into long-term business development.
Example: A Chief Operations Officer (COO) transitioned into a Chief Financial Officer (CFO) role for 18 months, allowing them to gain more profound financial acumen, build cross-functional credibility, and prepare for a future CEO role.
Special Projects: Lead initiatives such as digital transformation, organizational restructuring, or mergers and acquisitions. These projects often involve ambiguity and complexity and require navigating resistance to change.
Example: An executive led a company-wide digital transformation, which involved adopting new technologies, restructuring teams, and redefining workflows. They developed more robust change management and technology integration skills by managing this initiative.
Interim Roles: Temporarily take on responsibilities of another executive position (e.g., CEO or CFO) to learn by acting in a different capacity.
Example: During a CEO's absence, a Chief Marketing Officer (CMO) served as interim CEO. The experience helped the CMO develop strategic thinking, stakeholder management, and crisis management skills.
Amplifying the 20%: Social Learning Through Mentoring and Feedback
Executives benefit significantly from social learning, which includes building networks, learning from peers, and receiving mentorship.
Here are some actionable steps:
Peer Mentoring and Reverse Mentoring: Establish peer mentoring relationships where executives can share experiences and insights. Reverse mentoring can be effective, especially for understanding new technologies or generational shifts in the workforce.
Example: A senior executive in a tech company paired with a junior data analyst to better understand AI and machine learning's role in strategic decision-making. This partnership provided the executive with insights that traditional courses could not offer.
Executive Coaching: Partner with a professional coach to focus on specific leadership areas such as emotional intelligence, strategic vision, or managing organizational politics.
Example: An executive was working to strengthen their presence in board meetings. They learned how to communicate more effectively, manage their executive presence, and become a more vigorous advocate for their strategic ideas through coaching.
Networking and External Boards: Serve on external boards or industry associations to expand professional networks and gain a broader view of industry trends and challenges.
Example: An executive joined the non-profit board focused on educational reform. This experience provided insights into non-profit governance, stakeholder engagement, and social impact strategies, which enriched their perspective on corporate social responsibility.
Feedback Loops: Create structured opportunities for 360-degree feedback from peers, direct reports, and other stakeholders. This helps uncover blind spots and develop self-awareness.
Example: A CFO regularly engages in 360-degree feedback sessions, gaining insights into how their decision-making impacts team dynamics and discovering opportunities to enhance collaboration.
Building the 10%: Formal Learning for Strategic Knowledge
Formal learning is essential to staying current with trends and acquiring specialized knowledge.
Here are effective strategies:
Executive Education Programs: Enroll in executive education programs at prestigious institutions like Harvard, INSEAD, or Wharton. Focus on strategic leadership, corporate finance, or digital transformation.
Example: An executive attended a week-long program on digital strategy at Harvard Business School, which helped refine their approach to implementing digital initiatives across the organization.
Certifications and Micro-Credentials: Consider certifications that align with strategic business goals, such as Project Management Professional (PMP), Six Sigma, or Agile certifications. You can also use LinkedIn Learning to seek out courses and credentials.
Example: A Chief Human Resources Officer (CHRO) completed a certification in Agile Leadership to understand better how to implement agile practices within HR, resulting in a more responsive and innovative HR function.
Conferences and Seminars: Attend industry-specific conferences to learn about the latest trends and network with thought leaders.
Example: An executive participated in an international leadership conference, where they gained insights on global business trends, network with peers, and brought back new ideas for improving business operations.
Creating a Development Plan Using the 70-20-10 Model
To effectively use the 70-20-10 model, executives should build a structured development plan that aligns with personal and organizational goals.
Here's a step-by-step approach:
Step 1: Identify Development Goals
Conduct a self-assessment and 360-degree feedback to identify strengths and areas for development.
Define 2-3 strategic leadership competencies to focus on over the next 12 months (e.g., strategic thinking, cross-functional leadership, or global mindset).
Step 2: Allocate Development Activities Across the 70-20-10 Model
Determine specific activities for experiential learning, social learning, and formal learning.
Example: If the goal is to improve strategic thinking, a development plan might include:
70%: Lead a strategic initiative that involves entering a new market.
20%: Engage in peer mentoring with a strategy expert and participate in a strategy roundtable.
10%: Attend a strategic leadership course at a business school.
Step 3: Set Milestones and Reflect
Set quarterly milestones to track progress.
Reflect regularly on learnings and adjust the plan as needed.
Step 4: Seek Support and Accountability
Share the development plan with a mentor, coach, or HR partner for support and accountability.
Regularly review progress and seek feedback on the impact of development efforts.
Implementing the Model: Overcoming Challenges
Balancing Time Commitments: Executives often struggle to allocate time for development activities. One approach is integrating development into existing responsibilities rather than treating it as a separate task.
Measuring Impact: Measuring the ROI of development can be challenging. Focus on qualitative outcomes such as enhanced decision-making, improved stakeholder relationships, and increased leadership effectiveness.
Customizing the Model: The 70-20-10 ratio is a guideline, not a strict rule. It can be customized to fit specific contexts and individual learning preferences.
The Closing EDGE
The 70-20-10 model offers a comprehensive approach to executive development, blending hands-on experience, social learning, and formal education to drive meaningful growth. By applying this model thoughtfully, executives can develop the skills to navigate complex challenges, lead strategically, and inspire their organizations to achieve tremendous success.
As an executive, embracing the 70-20-10 model is not just about personal growth—it's about building a legacy of leadership excellence that sets a strong example for future generations of leaders.
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References
McCall, M. W., Jr., Lombardo, M. M., & Morrison, A. M. (1988). The lessons of experience: How successful executives develop on the job. Lexington, MA: Lexington Books
McCauley, C. (2022, April). The 70-20-10 Rule for Leadership Development. Retrieved from https://www.ccl.org/articles/leading-effectively-articles/70-20-10-rule/
Johnson, Samantha & Blackman, Deborah & Buick, Fiona. (2018). The 70:20:10 framework and the transfer of learning. Human Resource Development Quarterly. 29. 10.1002/hrdq.21330.
Training Industry. (2015). 70:20:10 model for learning and development. Retrieved from https://www.trainingindustry.com/wiki/the-702010-model-for-learning-and-development/