The Impact of Leadership Skills Development: Three Metrics Most Companies Do Not Measure

Leadership skills development produces three specific business metrics most companies never measure. Each is visible inside 90 days. Each is what separates a program that paid for itself from one that just felt good. Companies that measure these three make leadership development a defensible investment; companies that do not, cut the budget when the CFO asks why.

The three metrics: (1) decision-throughput — how many consequential decisions the leader made this quarter without escalation (more is usually better, up to a ceiling). (2) escalation quality — when the leader did escalate, did the escalation come with a recommendation or without one. (3) direct-report retention and development — what happened to the leader’s team over the same window. All three can be pulled from existing systems; none require new tooling.

Below is how to measure each, what good looks like, and how Learn2’s participant-driven leadership programs produce the measurement artifacts as program byproducts.

Many companies drop the ball when it comes to leadership skills development. They invest a great deal of time and attention on the process of enhancing the financial performance of their company for the capital invested. In failing to recognize that they have an additional asset that is just as critical, they miss out on major productivity issues. The human capital that exists within a company structure justifies a major corporate focus. The importance of providing leadership skills development within a corporate structure is difficult to overstate. There has always been a debate about whether leaders are born or made. The simple fact is that experience shows that leadership skills development bears significant results for improved productivity and efficiency in any company environment.

BASIC LEADERSHIP SKILLS DEVELOPMENT

There is a reality that people want and need to be led. Many people naturally have a desire and ability to motivate those around them. Even these individuals, however, benefit from a process of refining and focusing natural abilities. People respond to positive leadership steps in a way that allow their jobs and tasks to be carried out more effectively. An additional aspect of effective training is the identification of employees that can grow beyond their initial jobs. With a little encouragement and effort, a company can find significant talent within its own ranks. Having individuals that are able to grow within an existing framework adds to the overall strength and cohesiveness of any organization.

IDENTIFYING DESIRABLE LEADERSHIP SKILLS AND DEVELOPING THEM

Leadership is far more than simply stepping out and taking charge. The effective leader has a range of skills and abilities that are constantly being refined. For example, the concept of delegation is vital to any modern organization. Developing leadership ensures that an individual gains an appreciation for the difference between delegation and abdication. Working through others effectively is the essence of increased productivity.

MAXIMIZING THE RETURN ON INVESTMENT

With the world being an increasingly competitive business environment, no company can afford to ignore its investment in human capital. A planned focus on leadership skills development pays significant dividends to any company and its ability to compete in the marketplace. We at Learn2 are focused on the process of getting the most out of current and potential leadership. At our company, we offer leadership skills development programs that allow the individual to recognize both strengths and weaknesses related to their leadership potential.