Exploring the ROI in leadership development: a global energy company case study

PurposeLeadership development courses are widely used despite lack of general agreement about their payoff or return on investment (ROI). The author's purpose is to explore and document the ROI of leadership development.Design/methodology/approachThe authors used three different but complementary approaches – survey research, participant observation, and a panel study in triangulating on the ROI effects of a leadership courseFindingsThe three core findings were that most all respondents (90 percent) reported that the course paid off in terms of ROI; content analysis revealed three broad sources of ROI; and five elements of course design seemed important linkages to ROI pay offs.Research limitations/implicationsThis research is limited because it is exploratory and breaks new ground. It suggests that the actual experience of participants in leadership development courses and course design should be further studied in research on the bottom line effects of leadership developmentPractical implicationsTo enhance the ROI of leadership development pay attention to five elements of course designOriginality/valueParticipants in a well designed leadership development course readily connect their course with ROI. Human resource managers and researchers should pay more attention to the experience of participants in evaluating ROI.