Measuring Leadership Development Series: Part 1
The Whys and the Hows
With a shortfall of nearly 33 million workers on the horizon, the motivation to invest in leaders is clear: companies that do not cultivate existing management will be caught without strong leadership. But this new generation of leadership is different than its predecessor. How can you be sure that your investments in leadership development are building and retaining the leaders who can successfully take your company into the future?
Fortunately, leadership development initiatives are excellent candidates for measurement studies. They have high organizational visibility, high operational and/or strategic impact and, generally speaking, represent a significant cost to the company. In addition, leadership development programs are ongoing, so intermediate findings can be applied to maximize final return.
One of the most critical aspects of measuring impact is to identify business metrics to consider. These metrics should encompass leading indicators (typically non-financial), as well as key performance indicators (business metrics). Once the appropriate metrics have been identified, they can be mapped to systems inside and out of HR.
When analyzed, this data can show whether the leadership development initiative improved leader retention and internal mobility, as well as whether the presence of trained managers had a positive impact on productivity and quality. And, by looking at the results demographically, companies can learn which individuals or departments benefit most from a particular program—and where the program falls short.
This approach to measurement enables companies to not merely plan for leadership succession, but to proactively create future leadership. In the coming issues of this newsletter, Capital Analytics will present a series of articles about the measurement of leadership development initiatives. We’ll explore specific insights you can gain from measuring a leadership development initiative, how to get started on measurement, and how to overcome some of the common objections to this work.