The Disconnect Between Leadership Evaluations and Organizational Performance
It’s not uncommon for a company to miss key goals while its leaders receive positive annual evaluations. This situation raises important questions: How can there be such a gap between a leader’s performance and their evaluation? Why aren’t these leaders driving progress toward the organization’s objectives?
The answer often lies in two main factors—sometimes both. First, the company’s evaluation system may be flawed. Second, there might be a lack of investment in developing leadership skills. Even when development is offered, it might need to be more effective or tailored to individual needs.
It’s unfair to give a leader a positive evaluation if they’re not meeting the goals that matter most to the organization. This creates frustration among high-performing leaders who feel their efforts are not recognized. It also undermines the message of accountability that leaders often emphasize.
Creating an Effective Evaluation System
An effective leadership evaluation system must focus on measurable outcomes. For instance, instead of vague terms like “improve” or “increase,” use specific metrics such as “Decrease first 90-day employee turnover to under 14 percent.” Setting objective goals is the first step. The next is the value step: Is the organization investing in skill development so that leaders can achieve those goals?
In my book Results That Last: Hardwiring Behaviors That Will Take Your Company to the Top, Chapter 1 discusses the concept of “Up or Out.” While some people may need to leave the organization or their role, exiting should only happen after they’ve been given opportunities for growth and coaching.
Since the start of the pandemic, the number of new leaders has increased significantly. This means many leaders now have less experience than those who were in roles before. Leaders with years of experience are in a different position compared to newer ones. Because of this variation in skills and experience, it’s essential to provide personalized development alongside regular group training.
Precision Leader Development
Healthcare Plus Solutions Group developed the Precision Leader Development system to address this need. They assess each leader’s current skills and create an individualized development plan. This plan takes into account the leader’s specific needs and learning style. Focusing on one or two skills at a time makes the development process manageable. Feedback from hundreds of participants shows that this approach reduces anxiety and improves retention. A study found that 92% of leaders are more likely to stay if they feel invested in by their organization.
Not every leader will meet the required outcomes, but most will. Those who don’t will understand that they were given the support they needed. Their leaders will also know they did everything possible to help them succeed. Sometimes, people are placed in roles that exceed their current capabilities, and even with development, it may not be a good fit.
Recommendations for Improvement
Evaluate the current leadership evaluation tool being used. Are the goals objective and measurable? If not, consider changing the tool. Create individualized development plans for all leaders. A suggested tool is OSAR:
- O stands for Objective Outcome
- S represents the Skill needed to achieve the outcome
- A refers to the Actions the leader must take
- R covers the Resources available to build the necessary skills
Providing clarity of goals combined with the opportunity to develop the required skills shows that the organization cares about each leader’s well-being. When leaders grow their skills, they succeed in their roles, which leads to a sense of well-being.
Quint Studer is the author of 16 books on leadership, including Building a Vibrant Community, which is a valuable resource for civic leaders, business owners, and citizens interested in building a strong community. In his column Sundays with Quint, he shares insights and leadership advice for professionals across industries. He can be reached at [email protected].
