Adare’s latest HR Barometer 8.2 cites that 51% of Organisations top HR priority for 2025 is Employee Engagement and Experience. Leading an Organisation is a huge challenge. The complexity of managing operations, internal and external stakeholders as well as the wider business environment means that no two days are the same. To help meet the multifaceted challenge of leading an Organisation in a coherent way, leadership teams are increasingly turning to Leadership Charters.
The key benefit of a Leadership Charter is that it provides a clear and consistent foundation that informs leadership decisions around how an Organisation operates, how decisions are made, and how individual leaders interact with stakeholders. This article will examine what exactly a Leadership Charter is, why it is important for business leaders and how your Organisation can implement its own Leadership Charter.
What is a Leadership Charter?
A Leadership Charter is a formal document or statement that outlines the principles, behaviours, and commitments expected of the leaders within an Organisation. It serves as a powerful tool that Organisations can leverage to align leadership behaviours, foster accountability, and drive organisational success.
Leadership Charters work best if they are developed in conjunction with an Organisation’s leaders themselves.
Some of the principles that can appear in a Leadership Charter include:
- Core values: The beliefs and priorities that leaders should embody, such as integrity, collaboration, or innovation. These principles should reflect the Organisation’s mission.
- Key behaviours: Specific actions leaders are expected to demonstrate, like active listening, mentoring, or decisive decision-making.
- Milestones: The measurable responsibilities leaders have, such as achieving business goals while fostering Employee engagement.
- Commitments to stakeholders: Pledges to Employees, customers, and other stakeholders about how leaders will conduct themselves and lead the Organisation.
Why is a Leadership Charter Important?
By establishing a Leadership Charter, Organisations can create a cohesive, resilient leadership culture that drives both Employee satisfaction and business success.
Organisations that implement a Leadership Charter experience key competitive advantages including:
Consistency Across Leadership Teams
Leadership Charters ensure that all leaders operate from a shared understanding of the Organisation’s stakeholder expectations and core values which creates consistency in delivery across leadership teams.
Development of Organisational Culture
A Leadership Charter reflects and reinforces the Organisation’s culture and ensures that leadership decisions always align with the company’s mission, vision, and values.
Guidance Around Softer Skills
A Leadership Charter provides a clear set of Organisational values for business leaders that helps them understand how to carry out their roles beyond their functional expertise. Leaders that better understand the human and strategic aspects of leadership are more likely to gain the respect and loyalty of internal and external stakeholders.
Greater Accountability
By documenting expected behaviours, milestones and outcomes, a Leadership Charter holds leaders accountable for their actions.
Employee Engagement
A well-articulated and effectively communicated Leadership Carter inspires trust and respect among Employees who can hold leaders to account against the stated values in the charter.
Adaptability
A consistent leadership framework can be invaluable during times of transformation or growth. While the Leadership Charter may need to be refined, the core values behind it will guide leaders through difficult periods.