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Leadership Effectiveness: 5 Ways To Measure The Impact On Business Outcomes

If you are involved in a leadership role then you already know that one of the most important aspects of how successful you are as a leader today is measurement of your effectiveness on business outcomes.  But so much of that measurement is focused on the amount of engagement with teams rather than the quality of that engagement and the link to business outcomes.  So here’s what you can do as a leader.

 1.         Every organization conducts market research surveys.  These surveys typically measure customer satisfaction levels across services and products provided by your organization.  Sometimes they even ask questions about competitor products and services.  Organizations then take that information and work towards improving the rating they received by introducing improvements to services, products and information.

 Most organizations have a human resources department that usually conduct a staff survey annually.  This survey typically includes questions about communication within the organization, understanding the corporate vision, satisfaction with employee benefits and training and so on.  What I suggest is that organizations include a supplementary survey of just 10 questions at the end of this survey.  And these questions should be framed by selecting key questions from the customer survey and asking staff what do you think customers think about X?  These 10 questions in effect become your engagement measure.

 2.         Typically the result demonstrates disparity between what customers think and what employees think customers think.  Once you have the difference measured between perception and reality then you have the opportunity to commence dialogue about with your employees about what customers really think.  Most importantly it allows you to design transformational leadership strategies specifically to target that business issue.  So now you have a business issue and know the key messages for your leadership communication strategy.

 3.         One year on when the customer survey is conducted, you ask the same questions and again do the same with the staff survey.  What you seek to find is that the measure of the perception staff have of what customers think and what customers actually think have moved closer together and towards the organizations desired outcome.  This becomes your business measure of whether you as a leader have engaged employees.

 4.         This information is important because your ultimate aim in transformational leadership has to be to create the “Aha Moment” for employees.  The “Aha Moment” is based on information that challenges the employee’s belief about an aspect of the business.  The information that suddenly helps employees say, “Now it makes sense”, “Now I understand”, “Now I can do something about it”.  It is only once you see this gap close between what customers actually think about an issue and what employees think the customer thinks that you have a measure that demonstrates your transformational leadership strategy has been successful.  If the gap still exists then the design of your strategy is flawed in someway.

 5.     Finally, it is important that you measure employee communication tools such as readership of your staff magazine, access of the intranet and other tools.  However the only way to impact perceptions of the value of those tools is the contribution to an organization against business outcomes.

 This approach to measurement is low cost.  The investment in the human resources staff survey and the marketing departments’ customer research is already locked in.  You are simply adding 10 questions to the end of the human resources survey based on the marketing questions.  The engagement strategies are generally low cost because they involve people, not tools.  By this I mean that employees are involved in doing something differently to bring about change in an organization.  The staff newsletter and other information tools already exist, all you do is tailor the articles to reflect the main focus of your transformational leadership strategy.  This low cost yet highly effective approach will ensure that you can measure your strategies against business outcomes.


2 Responses to “Leadership Effectiveness: 5 Ways To Measure The Impact On Business Outcomes”

  • Shirley Manson says:

    Hi Marcia,

    I was following along well until I got to step # 5.

    ‘However the only way to impact perceptions of the value of those tools is the contribution to an organization against business outcomes.’

    Can you help me to understand this step in greater detail. I don’t understand how to measure this?

    Thank you, Shirley Manson

  • admin says:

    Hi Shirley,

    Great question. What I mean is that most people attempt to show the value of the information tools they use such as CEO blogs, intranets, town hall meetings by measuring attendance or usage and number of visitors to a site. But true value comes from being able to demonstrate how the tools you use and the message you are trying to convey has impacted on business outcomes. Only then can you truly impact the perceptions your organization has of the values of the tools you use. More step by step information can be found in Transformational Leadership – How Great Leaders Change Organizations.

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