Ö Routledge g % Taylor& Francis Croup LONDON AND NEW YORK
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1 THE LEADERSHIP SCORECARD JACK J. PHILLIPS, Ph.D. LVNN SCHMIDT Ö Routledge g % Taylor& Francis Croup LONDON AND NEW YORK
2 Contents Preface, xi Acknowledgments, xvii Part I Leadership Scorecard Foundation, 1 1 Developing Leaders, 3 The Leadership Development Imperative, 3 Leadership Development Challenges, 5 Leadership Development Methods, 7 Feedback, 9 Challenging Experiences, 11 Formal Developmental Relationships, 16 Leadership Training, 21 Reflection> 22 Leadership Development Accountability, 23 Final Thoughts, 26 References, 27 2 Creating the Leadership Scorecard, 31 Leadership Scorecard Pre-Work, 32 Tfce Leadership Scorecard Foundation, 33 AM Evaluation Framework, 34 Tfee RO/ Model, 36 Operating Standards and Philosophy, 49 Implementation lssues, 50 Application and Practice, 51 Leadership Scorecard Benefits, 51 Final Thoughts, 52 Introduction to Case Study, 54 Case Study Par/ A International Car Rental, 54 v
3 VI CONTENTS Discussion Questions, 57 References, 57 Part II Leadership Scorecard Methodology, 59 3 Measuring Indicators, Satisfaction, and Learning, 61 Measuring Indicators, 61 Measuring Satisfaction, 63 Questionnaires and Surveys, 63 Using Satisfaction Data, 69 Measuring Learning, 70 Testing, 70 Administrative Issues, 75 Final Thoughts y 76 Gwtf Study Part B International Car Rental, 76 Discussion Questions, 77 References, 79 4 Measuring Application and Business Impact, 80 Questionnaires, 81 Interviews, 88 Focus Croups, 91 Observations, 92 Business Performance Monitoring, 95 Action Planning and Follow-Up Assignments, 97 Performance Contracts, 104 Selecting the Appropriate Method, 106 Dä&z Tabulation Issues, 109 Shortcut Ways to Measure Application and Business Impact, 110 / Thoughts, 110 Gzse Study Ptf/t C International Car Rental, 111 Discuss Questions, 111 References, Isolating the Effects of a Leadership Development Program, 116 Preliminary Issues, 116 (/se of Control Croups, 121 Trend Line Analysis, 124 Forecasting Methods, 126 Participants' Estimate of Leadership Development Impact, 128
4 CONTENTS VII Management Estimate of Leadership Developments Impact, 137 Subordinate Input on Leadership Developments Impact, 139 Calculating the Impact of Other Factors, 139 Using the Techniques, 140 Final Thoughts, 141 Owe Study D International Car Rental, 141 Discussion Questions, 143 References, Converting Business Measures to Monetary Values, 145 Preliminary Issues, 145 Techniques for Converting Data to Monetary Values, 149 Converting Output Data to Contribution, 149 Calculating the Cost of Quality, 152 Converting Employee Time, 153 Us/ng Historical Costs, 154 (isiwg Internal and External Experts' Input, 155 Using Values from External Databases, 156 Usmg Estimates from Participants, 158 Using Estimates from Immediate Managers, 159 Linking with Other Measures, 159 L/smg Leadership Development Staff Estimates, 161 Selecting the Appropriate Measures, 161 Accwnzcy Credibility of Data, 163 Final Thoughts, 166 Gase Sftwfy International Car Rental, 166 Converting Business Measures to Monetary Values, 167 Discussion Questions, 168 References, Tabulating Leadership Development Program Costs, 169 Cost Strategies, 169 Cost Tracking Issues, 172 Major Cost Categories, 175 Cosf Reporting, 180 Cosf Accumulation and Estimation, 180 Final Thoughts, 184 Gise Study Parf F International Car Rental, 186 Discussion Questions, 187 References, 187
5 viii CONTENTS 8 Calculating the Return on Investment, 189 Basic ROI Issues, 189 ROI Interpretation, 192 Final Tboughts, 203 Gase Study Part G International Car Rental, 203 Discussion Questions, 204 References, Identifying the Intangible Benefits, 206 Key Issues, 206 Typical Intangible Measures, 213 F/W Tboughts, 222 C(3se SfwJy Parf H International Car Rental, 222 Discussion Questions, 224 References, 224 Pari III Leadership Scorecard Implementation Considerations, Communicating Results and Overcoming Resistance, 227 The Importance of Communication, 227 Principles of Communicating Results, 229 Analyzing Communication Needs, 231 Flanning the Communication, 233 Developing the Information: The Formal Evaluation Report, 236 Communicating the Information, 240 Analyzing Reactions to Communication, 243 Overcoming Resistance to a Leadership Measurement, 244 Planning the Implementation, 245 Cost-Savings Approaches, 248 FWÄ/ Thoughts, 251 Case Sfwc/y Part / International Car Rental, 252 Discussion Questions, 253 References, Forecasting an ROI, 254 W&y Forecast an ROI?, 254 T&e Trade-Offs of Forecasting, 256 Preprogram ROI Forecasting, 258 Forecasting with a Pilot Program, 262
6 CONTENTS IX Forecasting ROI with Reaction Data, 263 Forecasting ROI with Learning Data, 265 Forecasting ROI with Skills and Competencies, 268 Forecasting Guidelines, 270 Final Tboughts, 272 Case Study Part ] International Car Rental, 273 References, 274 PARI IV Leadership Scorecard Case Studies, Developing Leaders at Imperial National Bank, 277 Index, 303 Background, 277 Data Collection Plan, 279 Reaction and Learning, 285 Application, 286 Business Impact, 288 Program Costs, 293 RO/ Analysis, 294 Intangible Benefits, 297 Results, 298 Author, 300 About the Authors, 319
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