Measuring ROI on leadership development is elusive. At the strategic level, it can take time to generate the improved results expected from leaders in whom such an investment is made.
But achieving those results is actually the culmination of multiple, interim actions, taken by the leader’s team who were motivated by the leader to do more than fulfill assigned responsibilities, to invest their energy and talent in making something better. Each change initiative included KPIs which identified projected quantifiable benefits to create value, while generating momentum towards the larger goal.
Strengthened competencies, including newly learned methods of influencing and inspiring, should enable the leader to foster a team culture of collaboration, curiosity and shared ownership that produces these incremental, accumulating benefits.
So, measuring ROI on leadership development investments can be accomplished in a shorter term by evaluating the quantifiable benefits that are the output from the leader’s ability to motivate his or her team in challenging the status quo and delivering progress towards the projected results improvement.
How are you assessing leadership development ROI?