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Measuring Leadership Development: Quantify Your Program's Impact and ROI on Organizational Performance by Rebecca Ray, Patti Phillips, Jack Phillips

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CHAPTER 8Leadership Development Costs and Return on Investment

THE COST OF providing leadership development is on the rise, increasing the pressure for LD directors to know how and why money is spent. Sometimes executives need to know the total cost of a program, pushing the cost profile beyond direct costs to include indirect costs as well. Also, the costs represent the bottom part of the ROI formula. When program costs are used in the ROI formula, the appropriate costs must be actuated routinely, efficiently, and sensibly. Finally, the actual ROI calculation must be consistent with accepted financial practices and be based on conservative assumptions. Its meaning should be clearly communicated. This chapter explores all the important issues ...

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