Do you know the value of leadership? It may be more important than you think. The quality of leadership is a factor that has been found to drive investor funding. While this is not tangible, it does lead to higher profits.
Nesta found that in the two decades from 1990 to 2011 intangible asset value rose from £50.2 billion to £137.5 billion. Investment in people, especially leaders impacts on these figures.
Bad leaders cost money. They make flawed decisions that waste money. They do not add value to companies. A worry is that a study by Investors in People and TBR found that poor leaders cost UK firms £39 billion per year. Does your firm fall into these statistics?
What’s more, a study by Mercer in 2015 also found that only just over 27% of firms have a leadership strategy that is based on a business case. Also, 81% of companies do not tot up ROI of leadership development. You may select bad leaders in the first place and then go on to spend more money to develop them.
There is one way to help avoid this problem. Psychometric assessment provides helpful input on leadership ability. A behavioural profile of what makes a great leader can be built up using the McQuaig Job Survey. The McQuaig Psychometric System offers the tools to help recruiters assess the fit of potential leaders. It’s just what you need for leadership recruitment or for making leadership development choices. This way you can make sure you get your money’s worth.
Find out how the McQuaig Psychometric System can improve succession planning in your organisation. Call 0203 111 9292 or contact us here.