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 would say that getting 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 courses are seen as a way to improve one's leadership skills.
Image Source: Google
For example, if you have a leader who does a poor job of leadership communication, get leadership development training to improve those competencies. To calculate the return on investment for a leadership training course, you need to go further than just looking at competence.
You need to see 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 leadership department decreases by 5% after the leader 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 great way to reinforce the leadership concepts learned in training. Mentors or trainers can monitor and provide feedback and recommend additional things that will improve human development.