Q11 What return on investment can a company expect? Can you really impact the bottom line?
There is no doubt that excellent leadership impacts the bottom line. And I am sure everyone can think of many instances where bad leadership has negatively affected profits. Excellent leadership creates empowered and motivated employees who will deliver great service and go that extra mile for their customers. And excellent customer service creates loyalty which certainly impacts the bottom line. If you follow the Service Profit Chain model, the thread runs directly from leadership to profits.
When it comes to measuring the ROI it can be quite hard to quantify the human dimension. If retention is an issue then you can measure improvements, but how do you measure motivation, vitality, creativity and trust? I can tell you that all of our clients see a marked improvement in their situation. For example a client recently experienced a 24% lift in their employee engagement survey scores after we had worked extensively with them to give insight into the issues