Pangasinan State University

Social Sciences Department

Bayambang, Pangasinan

Readings on How to Measure Leadership Effectiveness

1. Foster Growth and Strong Values (Aiko/Aira)

The ability to recognize talent in the hiring process and building a team of strong and capable people is
one of the hardest yet significant parts of a leader’s role. But creating an environment that fosters
growth and strong values is just as important. When a business’s employees are excited to come to work
and to provide their all, that’s a good sign of effective leadership. - Roger David, Gold Star Chili and Tom
& Chee

2. Measure Workforce Attitudes (Angelica/Angelo)

There are many ways to assess the effectiveness of leadership. Evaluations, external audits and business
results are among them. However, the best way, in my opinion, is to measure and understand the
attitudes among the workforce. A great leader has one foot on the mountain and the other in the valley.
- Adam Povlitz, Anago Cleaning Systems

3. Measure the Company's Profitability (April/Arthon)

As an entrepreneur, it's simple. Are you profitable and winning
clients? Do you and your company have a great reputation that
others will recommend? Have you stood the test of time? If
you're an effective leader, you will lead a profitable company. -
Chris J "Mohawk" Reed, Black Marketing

4. Evaluate Strategic Objectives (Ashley/Bridget)

For our clients—private equity investors and their portfolio companies—leaders have clear insight into
whether they and their teams are meeting growth metrics and return on investment targets. Most firms
have strategic objectives, so leaders should measure themselves on whether those goals are being met
or not. If not, then leaders should do a deeper dive to uncover the causes. - Victoria Lakers, The Lancer
Group

5. Measure These Five Metrics (Chalyn/Cheska)

Leadership is effective when these five things are on track: 1. Vision—everybody knows and loves the
vision; 2. Alignment—all activities feed each other; 3. Core values—written core values are discussed
regularly; 4. 90-day execution plan—a clear execution plan for the next 12 weeks; 5. Weekly numbers—
marketing numbers, sales numbers, operations numbers. - Simon Severino, Strategy Sprints

6. Look at Objectives and Key Results (Crissel/Cyclopetano)

Measuring leadership effectiveness can happen in many different ways and necessarily includes some
intangible aspects. But for big-picture objectives, an OKR (objectives and key results) system or a similar
process can help create accountability and transparency. OKRs give leadership the freedom to stretch
the business and push for innovation even while it establishes a system for measuring the results of
various initiatives. - Chuck Hengel, Marketing Architects
7. Check the Growth of the Team (Daniel/Daniel)
The growth of your team is a key metric. Entrepreneurs often limit their leadership from growing
because they are too involved. Allowing your team to make their own decisions, fail and learn from
those failures causes growth. Many times this is unintentional. If you're being looped in on decisions for
your tacit or explicit approval, that is a sign you are limiting their growth. - Christian Brim, Core Group

8. Measure Confidence in Employees (Daniella/Dariane)

You're only as good as the people who work for you. An effective leader supports their team and puts
them in roles that celebrate their strengths. As a leader, you know you're being effective when your
employees shine and you feel confident enough to be hands off to allow them to do so. It's also
important to remain accessible. Make sure they are seen, heard and valued. - Mitra Ahouraian,
Ahouraian Law

9. Examine the Customer Experience

(Decerhee/Dennis)
A leader is only as effective as their weakest team
member. The quickest way to sales growth is through
happy, talented teams because those teams will drive
the best experience for your clients. Research shows
that customers remember their experience more than
what they paid. Think back to your last Lyft ride. What
do you remember: the driver or the cost? - Sabrina
Shafer, Transformation Continuum

10. Use Multiple Employee Variables (Eugene/Francheska)

The best way is using multiple variables such as employee engagement survey scores, percentage of
employees promoted, employee turnover and profit generated per employee. A leader that can show
highly engaged employees that are getting developed to be promoted while maintaining low turnover
and a high profit per employee shows they can run a hyper-efficient and people-focused business. -
Marcus Chan, Venli Consulting Group

11. Focus on Inner- and Outer-Game Evolution (Gemalyn/Gerlie)

Focus on the inner-game and the outer-game evolution. Great leadership can be achieved when we
evolve our outer-game through skills and capability building in order to be an effective leader, and our
inner-game that is focused on integrity, passion, purposefulness, vision, compassion, courage,
authenticity, collaboration, self-awareness and humility. Great leaders are great humans! - Andreea
Vanacker, SPARKX5

12. Inspire Others with a Shared Passion (Harold/Hyra)

Effective leadership is measured by inspiring others

toward a shared passion. When your team members truly
understand the vision and can explain “why” in their own
words, when they focus on who they are serving and how
they can better serve those customers and when they are
energized to bring new ideas to the table, you have inspired them with a shared passion. Make the
impossible possible. - Hany Fam, Markaaz

13. Assess the Success of Each Team Member (Jamaica/Jamierose)

Leadership effectiveness can be measured by the success of the individual members of the team as they
embrace the organizational vision and act to materialize it. At the end of the day, production statistics
will tell the truth. - Dimitrios Kostopoulos, Hands-On Companies

14. Know If You're Creating Good Leaders (Janica/Janice)

Are you building great leaders? Any leader's job is to teach, empower and encourage the people they
manage and mentor to maximize their potential. I always judge a leader by the effectiveness and ability
of their team. - Craig Howe, Rebel Ventures

https://www.forbes.com/sites/forbesbusinesscouncil/2021/05/28/how-to-measure-leadership-
effectiveness-14-essential-tips/?sh=38c852da2823

15. Gather employee feedback (Jasmin/Jaynard)

Effective leaders are best represented by the individuals

who work for them. Since your actions, words and
decisions can impact them, collecting employees'
opinions and feedback can be an effective way of
evaluating your performance and effectiveness as a
leader. If you're a leader, consider asking employees for
feedback on how they feel about you and which areas
you can improve on. You may request employees to
complete a survey with guided and open-ended
questions.

These can include questions about your ability to delegate responsibilities, the way you guide the team
during a crisis or your management style. Depending on the overall responses of the survey, you can
better understand how the team perceives you and take the next steps to improve as a leader.

16. Compare year-on-year metrics (Jefferson/Jessa)

When measuring leadership effectiveness, it's useful to combine qualitative assessments like employee
feedback with quantifiable metrics that measure employee engagement or retention. Comparing
metrics like employee turnover and promotion rates across a time period can provide insight into your
ability to motivate and engage employees, which are key qualities of effective leadership. Higher
promotion rates may reflect your ability to develop and guide highly engaged employees for more
important roles within the organisation. Likewise, efficient leaders define goals and help keep
employees engaged in their work, which may contribute to higher job satisfaction and lower employee
turnover.
17. Measure the company's profitability (Jhon Raymond/Jim Clark)

A company’s profitability is usually related to strong and capable leadership. Effective leaders manage,
guide and run a successful business that generates profits and maximises value for shareholders.
Capable executive leaders are excellent ambassadors and representatives who can help establish the
company as a market leader. They understand how to optimize the workforce and allocate resources to
produce innovative products and reduce business efficiencies. Analyse the company’s annual income
statement for signs of increasing profitability. Measuring the company’s financial performance and
metrics, such as net income or profit margins, against target figures can reveal more about your
leadership capability.

18. Evaluate company goals (Julie Ann/Karen)

A common method of measuring the effectiveness of any business unit usually involves analysing its
performance and goals. Similarly, evaluating a company's strategic business objectives can help
determine leadership effectiveness. Leaders are responsible for getting the company's employees to
achieve goals that may include revenue growth, new market expansion or return on investment.
Effective leaders can measure themselves on whether they can help the company to meet its goals,
targets or metrics. For a more quantitative assessment, senior management may also evaluate your
business decisions and check if the company's growth and direction align with the corporate vision.

19. Peer review (Karyll/Kisses/Ynna)

Your peers and fellow executives are another source of feedback

for you to assess your effectiveness as a leader. As experienced
leaders and managers themselves, your colleagues can better
analyse and rate your ability as a leader. For instance, they can
score you based on different dimensions such as communication,
negotiation and stakeholder management and other essential
leadership skills.

Other executives and leaders who work closely with you to run the
business often experience and observe your leadership qualities up
close. Their feedback can provide answers to the questions about whether you’re inspirational and
effective.

20. Evaluate workplace innovation (Lady Joannah/Leah/Tusha)

Effective leaders can prioritise innovation and development to help

the company acquire new capabilities and gain a competitive
advantage. Under strong leadership, motivated employees are
empowered to take on bigger responsibilities and may discover
better ways of completing their tasks. Compare production goals
over a time period and evaluate your efforts to incentivise
employee innovation. Consider improvements at all levels within
the organisation, such as more efficient processes or a higher quality assurance score. Implement new
monitoring procedures to help track changes in these respective areas, which also provide benchmarks
for leadership to self-assess their performance.
21. Match values with outputs (Leann/Lovely Joyce/Trisha)

Strong leaders adopt the organisation's mission, values and vision as their own. They embody positive
values like work ethic and confidence and guide employees to develop these qualities which can help
the company succeed. Speak to employees and check
if their actions align with the company's mission and
strategic vision. Matching these values with
employees' behaviour can reliably measure how
effective and influential leaders are in the workplace.

It's also crucial to match the leader's values with tangible results, such as performance improvements,
higher employee engagement or lower absenteeism. This approach also measures leadership
effectiveness by reconciling leaders' efforts with outputs that define organisational success and
excellence.

22. Use leadership assessments (Lovely/Ly Ann/Princess)

Leadership assessments are useful tools to help organisations evaluate leaders and their management
skills. These tools allow managers to analyse their own traits, characteristics and strengths and discover
areas to improve as a leader. Some of these assessments are formal tests with questions that focus on
your strengths, behaviours and style of leadership. Other tests can measure your personality, emotional
intelligence, self-awareness and other qualitative leadership attributes.

There may also be rating scales or indexes that measure your cognitive abilities, attitudes and
confidence in hypothetical situations. Using different leadership tests enables evaluators to build a more
complete profile of you as a leader, which can help them assess your ability and effectiveness.

23. Identify leadership criteria (Mariella/Mark Dave/Pauleen)

Before you can perform an evaluation, it's important to define what are the leadership goals and
milestones. You can start by learning about senior management's expectations and objectives for the
company. Then, find out what are the metrics to measure success within the organisation. These may
include production goals, quarterly profit, customer service scores or other outcomes. Companies can
also choose to evaluate leaders based on internal criteria such as employee job satisfaction or workplace
attitudes and behaviour.

24. Create a monitoring system (Raxine/Regine/Rochelle A.)

Once you’ve established the necessary criteria, it’s important to

create a system that can effectively monitor and track these
metrics. Brief employees and department heads on their
respective objectives and goals. Work with them to create a
system that can reliably measure output, results and
production. For instance, a company that relies on production
quality to assess leadership ability may invest in inventory
management software to track defects on the assembly line or
returns from sales.
25. Adopt a flat reporting structure (Rochelle/Sheila Mae/Shiela Mae)

Encouraging employees to give regular feedback can provide insight into leaders' abilities, traits and
management styles. Implementing a flat reporting structure helps remove organisational hierarchy and
promotes a more communicative and collaborative workplace. Employees are free to speak with
managers, provide suggestions and offer feedback on their ideas or decisions. You can consider using
reporting and meeting logs to record feedback. Review the logs and hold regular consultations with
employees to understand how you're performing as a leader.

https://sg.indeed.com/career-advice/career-development/how-to-measure-leadership-effectiveness