In today's economic environment, every business strives to maximize return on investment. Perhaps one of the most difficult things to understand is the benefits of leadership development training.
The need for leadership training is easy to see, but how to calculate return on investment is another matter. Some argue that finding an agreed definition of leadership is easier than calculating the return on investment in leadership education.
The best way to calculate the return on investment in leadership training is to change the perspective of leadership training. In most cases, leadership training is seen as a way to improve leadership skills.
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For example, if you have a leader who is not good at leadership communication, take leadership development training to improve those skills. To calculate your return on investment in leadership training, you need to look beyond competence.
You have to look at the competency results. In other words, if these leaders have competencies for effective leadership communication, what will enable the organization to achieve those competencies? Once you start focusing on results, you can more easily calculate your return on your training investment.
Using the previous example, let's assume that turnover in the executive department decreases by 5% after the executive completes the communication leadership course. This 5% reduction is part of the return on investment. Other areas can also be positively affected.
Coaching and mentoring programs are a good way to deepen the leadership concepts learned in training. The mentor or coach can observe and provide feedback and recommend additional things that promote human development.