This document discusses four categories for measuring leadership effectiveness: subjective realm, numbers-based metrics, leadership index, and leadership potential. The subjective realm looks at morale, participation, innovation, and process improvement. Numbers-based metrics examine productivity, efficiency, mistakes, sales, and customer service metrics. The leadership index uses evaluations to assess leaders on key skills and behaviors. Leadership potential measures how well the organization is developing future leaders at lower levels.

1. MEASURING LEADERSHIP
EFFECTIVENESS

2.  It's easy to get caught up in leadership skills and
development.
 Plus, when things are going well, it's even easier to
ignore any measurements that tell you how effective the
leadership really is in your organization.
 There are numerous ways to measure effectiveness, but
all of these analytics occur in four broad categories.
 Let's examine each category of leadership
measurement.

3. Subjective realm
 When subjective measurements are mentioned, people have the tendency to
dismiss them. But can the subjective measurements of your organization tell
you how effective the leadership is.
 First, and in general, you must take an honest look at the overall morale of
the organization.
 Is it deflating or non-existent? Or is morale high, even in the face of new
challenges and obstacles? Low morale is a good indicator that leadership is
not effective.
 What about participation and attendance?
 If you have to beg people to communicate or improve, that's another
subjective measurement of leadership. Is innovation a part of every day life
at your organization? What about continuous process improvement?
 Do people feel comfortable speaking out when they see inefficiency better
ways to do things? If not, this is a definite sign that leadership needs to step
up.

4. Numbers-based metrics
 Often, the numbers of the organization can tell you if leadership is
effective. For example, what does productivity look like now as opposed to
last year?
 Is a temporary "dip" occurring, or is the trend headed down?
 Other areas of measurement for leaders can be efficiency and mistakes.
 Are employees making fewer or more mistakes now? Are the errors being
corrected in a timely manner, or are they being left to languish? How are
sales? Are numbers up or steady, even when times are bad?
 Take a close look at your customer service, both internally and externally.
Are there numerous complaints making it to your level, or are they being
resolved at lower levels?
 You can look at the metrics that are used to determine the health of the
organization and make a link back to leadership, especially on those
metrics that are not linked to pay or bonuses.
 Remember that poor organizational performance can be related to many
issues, such as market forces, poor positioning, or just bad economics.
 But also keep in mind that by taking a serious look at these metrics, you can
adjust leadership accordingly.

5. Leadership index
 An index is a targeted measurement tool that associates complete regarding their
managers or leaders.
 Essentially, it's an evaluation of the leader using the skills, behaviors, and attitudes
that are found to be appropriate for the organization.
 In simple terms, you may see questions such as, the person "treats me with respect"
and "helps me work on continuous improvement".
 The evaluator is asked to give anonymous, confidential answers about the leader.
 The leader gets to see his or her results and can work on a development plan from
those results.
 There are numerous systems that can create the leadership index for the
organization, or you can do it on your own.
 The main thing to remember is that using generic leadership behaviors, skills, and
attitudes will not give you the best picture of effectiveness.
 The organization must determine what skills and behaviors are most appropriate to
its leaders.

6. Example

7.  In the example, 7 of the 11 statements have a positive (SA or A)
response. This calculates into a leadership index of 64%.
 In the FedEx model, a minimum index of 75 is allowed. This index
hurdle requires that at least 75% of the workgroup share the same
positive perception.
 It also recognizes that there will be some people who will select a
negative response irregardless of the efforts that a leader makes.
 When a person in a formal leadership role scores lower than 75 on
an annual or semi-annual survey, they are placed on "probation"
and must enter into a formal leadership improvement program.
 Should the score fail to rise above the 75% level on the next survey,
the supervisor or manager is removed from the formal leadership
role (though they still remain employed with the organization).

8. Leadership potential
 This method of measuring leadership effectiveness is
related to the leadership index
 Using a similar index, the organization can measure
how leaders are being groomed and encouraged at
lower levels.
 A large number of potential leaders tells you that
leadership is effective at the organization - and that it
is catching on at all levels.
 The fact that a leadership pool is developing on its own
tells you that your leaders are indeed leading
effectively.

9. Thank you!!