Leadership can be measured by how a leadership team or individual person leads, governs and addresses responsibilities. A good business leader not only produces great financial numbers, he/she also develops great people. Leaders must be able to maintain a strong focus, make and keep it meaningful for others, and manage themselves in such a way that people can understand what’s expected by following their example.
One of the best ways to assess the effectiveness of a leader is to observe the others around him or her. If the person is in demand, if others feel they would not be as effective in their positions without them, if people will actually follow direction from this person without hesitation, then you probably have identified a good leader.
Here are five metrics we suggest when assessing your leaders:
How much has the company grown under the leader’s vision? (revenues, profitability, cash on books, sales pipeline)
2. DECISION MAKING SKILLS
What is the impact of decisions made by the leadership to the bottom-line?
(Financial, customer value, business process, staff learning and growth)
3. FUTURE LEADER DEVELOPMENT
What is the percentage of next generation leaders developed by this person or team? What is the rate of turnover? How many employees under this leadership have been successfully promoted into higher positions?
4. STRATEGIC PLANS IMPLEMENTED
What percentage of governing ideas, strategies, operational plans, contingency plans and individual plans have been implemented in the time period allotted?
How many valuable partnerships have been developed or strengthened by the leader that truly benefits the organization?