Quantifying the Value of Effective Leadership

Value of Leadership

A recent research program at Kenexa looked at what causes employees to view their leaders as effective. The program enabled researchers to create the leadership effectiveness index, a new metric that measures the extent to which employees believe their leaders communicate their vision, handle challenges, value employees, are committed to improving quality, and inspire trust.

In Kenexa’s study of 143 multinationals, leadership effectiveness was found to account for 10 percent of an organization’s earnings per share.

The leadership effectiveness index was created by analyzing employee perceptions of several key items:

  • Senior managers’ ability to give employees a clear picture of the direction in which the operation is headed
  • Managers’ proficiency at dealing with the challenges placed in their way
  • Leadership’s success at convincing their staff they are important
  • Leadership’scommitment to providing high-quality products and services to members and customers.

Perhaps most telling, staffers who rate their leaders as “effective” were found to have employee engagement index scores that are more than five times higher than those who rate their leaders as “ineffective.”

Contact Mary Hladio, (513) 984-9333 for a 30-minute complimentary consultation to discuss improving your organizational effectiveness.

Source: HR Magazine (02/11) Wiley, Jack

Web: www.embercarriers.com|Twitter: www.twitter.com/embercarriers|LinkedIn: www.linkedin.com/in/mhladio

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