Leadership
leadership
BY DR BARRY CUMMINGS
Why measure leadership development?
Leadership development maturity is characterized by an organizational mindset of employees as corporate assets, with clearly defined future focused development processes and competencies.
A consistent level of involvement of business leaders to embrace the initiative and support in taking into account the organization’s leadership needs, makes it an integrated leadership development process.
However, research indicates that leadership development programs in almost half our organizations are at an ‘immature’ level on such a maturity continuum.
Rationally, leadership development is a necessary investment for any organization’s success, and research has shown a connection between investing in people and outcomes like productivity and employee turnover. However, organization leaders are now more committed to see the difference resulting from these investments.
Due to increased pressures for cost efficiencies, organizational leaders now wish to know the payoff of their investment in these initiatives to see value for money, and many organizations are stepping up to the challenge of showing the value of their programs and ROI levels.
ROI (Return on Investment): From intuition to rationale…
The return on investment is the amount of the improvement at the impact level attributed to the program, converted to money and compared to the cost of the program.
It is an ultimate measure of accountability that compares the actual cost of a program to its monetary benefits, using the same standard ratio that accountants have used for years, which most managers are familiar with.
Phillips ROI Methodology is a new addition to the leadership development manager's measurement toolkit; which helps show a connection of the leadership development program to the bottom line, and works well in different types of environments including leadership development.
14 | TRAINING MAGAZINE MIDDLE EAST OCT 2014
development: roi
BY ALLAN GARDNER
BY VISHVAKANTH ALEXANDER