Measuring Leadership Development: Quantify Your Program's Impact and ROI on Organizational Performance

CHAPTER 3Leadership Development and the ROI Methodology

THIS CHAPTER MAKES the business case for using return on investment as a part of the measurement process. The paragraphs that follow present the rationale for the use of the ROI Methodology, explore its fundamental components, and present the ROI standards, which are essential for building the methodology’s credibility and respect as a viable tool for measuring the success of leadership development.

Why ROI Methodology?

The ROI Methodology compares the benefits of LD programs to the costs of those programs. Although other types of analyses show the general relationship between investing in human capital and such outcomes as talent retention, profits, and productivity, most executives need ...