Strategic HR Review

Purpose – This paper seeks to explain why measuring the bottom line benefits of leadership development has become increasingly important in an unstable economy, and to highlight ways in which HR professionals can demonstrate the financial impact of leadership development programs alongside other relevant measurements, in line with organisational strategy.

Design/methodology/approach – This best practice guide is based on the author's experience, gained over 20 years, of designing, delivering and evaluating wide-scale leadership development programs for major organisations. It highlights widely used evaluation models and also draws on case study material from a leading specialist insurance company, Hiscox, to highlight the importance of selecting appropriate financial measurements alongside other quantitative and qualitative evaluation methods.

Findings – The Hiscox case study element of this paper demonstrates the importance of selecting appropriate measures and viewing bottom line benefits as a critical element of overall leadership development evaluation.

Practical implications – The paper offers practical advice for HR professionals on how to measure effectively the bottom line benefits of leadership development.

Originality/value – The paper draws on recent research to demonstrate why both leadership development and the financial benefits it brings are increasingly important, and offers practical advice to HR professionals that can help raise their profile and ensure ongoing investment in leadership development within their organisations.