What Happens When You Actually Measure ROI
When organizations use the ROI Methodology to evaluate leadership development programs, several key things happen:
- You get real data. Not just smile sheets or training hours. You find out what leaders learned, how they applied it, and what changed in the business.
- You make better decisions. Knowing which programs drive performance means you can stop spending on the ones that don’t.
- You get more buy-in. When you prove value, it’s easier to get executive support, expand your programs, and build a culture of continuous improvement.
Case in Point: Leadership Coaching in an Oil and Gas Organization
One oil and gas company’s coaching initiative for senior leaders wasn’t just about personal growth – it aimed to improve safety, reduce turnover, and strengthen operations. After isolating the effects of coaching and converting the business outcomes into monetary value, the ROI was compelling. The result? More coaching programs – and a stronger business case for scaling leadership investment.
But isn’t measuring ROI complicated? Not if you follow the five levels:
- Reaction: Did they like it? Was it relevant?
- Learning: What did they learn?
- Application: Did they apply what they learned on the job?
- Impact: What changed in business metrics (retention, output, cost, etc.)?
- ROI: Is the benefit greater than the cost?
This proven process walks you through how to do this, even if you’re new to ROI, or unsure your program results can be measured. For instance, the Kansas City Police Department used ROI to improve leadership in their SWAT team – yes, really. That’s how flexible this approach is.
What’s at Stake If You Don’t Measure
When leadership development programs go unmeasured, they’re often seen as nice-to-have rather than essential. Leaders may enjoy the experience, but there’s no proof of real impact. Even worse, valuable programs risk being cut, while less effective ones continue without question.
You risk:
- Wasting budget
- Losing credibility
- Missing key insights
- Undervaluing the very leaders you’re trying to develop
Numbers and Narrative
The benefit of measuring ROI is that you can tell compelling, evidence-backed stories. Want to show how your leadership program reduced time-to-promotion? Increased innovation? Lowered attrition? You’ll have the data.
Leadership development doesn’t have to be a mystery. With the right tools and mindset, you can stop guessing and start proving what works. Lead with data. And earn your seat at the strategy table.
Show the Value of What You Do
To learn more about how to apply the ROI Methodology to measure and prove the impact of your leadership development programs, join us for Proving the Value of Leadership Development Programs.
