Measuring the Impact of Leadership Development
We all know leadership development brings positive change to an organization. But, how do we as HR and L&D leaders measure that impact and demonstrate bottom-line value to the C-Suite?
Driving ROI: Measurements that Matter
LEADER/TEAM ASSESSMENTS
- Leader retention and loyalty. Has retention increased for participating leaders? What recruiting and replacement costs have been avoided by retaining effective leaders?
- Employee retention and loyalty. Has employee turnover decreased on the leader’s team? Is the leader retaining more high potential employees? What recruiting and onboarding costs has the organization avoided by retaining strong talent?
- Leader promotion. Have promotions increased for leaders who have gone through the program? Are they recognized in other ways for increased performance and competencies?
- Employee promotion. How many employees on the leader’s team have attained a promotion due to an increase in leader’s performance?
- Customer impact. Have the leader’s and the team’s Net Promoter Scores or Customer Experience scores improved? Has the group increased sales or customer satisfaction?
- Skill mastery, transfer, and business impact. Do the pre- and post-training assessments show an increase in the leader’s mastery and on-the-job application of key skills? And, how have those skills improved quality, increased efficiency, increased compliance/safety, improved employee relations, and increased innovation? How have Key Performance Indicators (KPIs) and business metrics (Average Handle Time, Quality, Errors, Time to Resolution, etc.) been impacted by application of the skills learned in the training?
ORGANIZATIONAL ASSESSMENTS
- Innovation. Has the leader or the leader’s team generated actionable innovations for the company? Have they generated revenue?
- Awards. Can you link your leadership development to any awards or recognition the company has received?
- Bench strength. Has your company been able to fill open positions internally due to a larger pool of qualified leaders?
- Increased engagement. Has there been an increase in the number employees who say they are committed to their work and the broader organization as a result of connecting more with their leader and their team?
- Mentoring. Are your leaders mentoring more employees? Is there an increase in mentorship requests? The investment in leadership development is transferred from leader to future leader.
- Succession plan. Does the company’s succession plan include leaders developed through your program?
- Prestige and perception. Are your leadership development programs used to attract desirable leadership candidates, thereby reducing recruiting costs?