Evaluating Leadership Outcomes 1 Evaluating Leadership By Gregory H. Schultz Researchers do not agree on a concise definition of leadership but concur the definition is framed by the context in which leadership exists (Bass, 1990; Kreitner, 1995; Vroom & Jago, 2007). Many researchers agree that a compromise of definitions found in the literature includes some form of social influence that enables voluntary action in an effort to produce organizational outcomes (Drucker, 2004; Kreitner, 1995; Vroom & Jago, 2007). Thus, the outcome of this article is to describe and evaluate a methodology to evaluate leadership outcomes. An important element of measuring outcome is to make sure the “right things” are measured. Leadership evaluation should begin with the end in mind, including a definition of what and how leadership outcomes will be measured (Hannum, 2004; Martineau, 2004). The outcome of measuring leadership is to establish a point from which leaders can improve. Two forms of evaluation exist. The first form is to collect quantitative information. A survey instrument makes quantitative information collection easy. A second form of data collection is qualitative research. A highbred approach is to use a mixed method, which provides the best information since quantitative data can provide a springboard for further in-depth information in the form of interviews (Creswell, 2003). Before developing a methodology to evaluate leadership, it is necessary to understand what leadership is and what may be worth evaluating. To frame a slightly different definition then what was provided above, Vroom and Jago (2007) defined “leadership as a process of motivating people to work together collaboratively to accomplish great things” (p. 18). In order to examine what to measure, the methodology will need specific components beyond what the definition offers. Vroom and Jago further established that a) leadership is a process not a possession, b) leadership influence is motivation, c) the motivating components of extrinsic and intrinsic are not involved, d) the outcome of influence is goal consensus, and e) “great things” (p. 18) are outcomes shared by the team and not necessarily other organization members. The above definition provides a framework and implications for leadership evaluation. When framing leadership outcomes, it may also be necessary to understand the situational environment where leadership takes place. A major component of Vroom and Jago’s research was to define the position of leadership framed by the context or situation. The context or situation enacts a mediating role in the determination of the optimal leadership process. Now that a workable understanding of leadership is established, the context of change will be examined as function for deploying a leadership process. Leading Change and Evaluation One of the primary outcomes for a leader is migration to a new end state or the successful culmination of innovation (Wren & Dulewicz, 2005). The outcome of innovation is some incremental difference based on a reference or starting point. Many change models provide a recipe of processes or steps that enable successful change. An examination of two change models will follow. Each model defines clarity to the elements or expectations expected from leaders. Mento, Jones, and Dirndorfer (2002) highlighted two change models considered popular in organizational change including Kotter’s change model and Garvin’s GE model. Kotter’s model states leaders should a) establish a sense of urgency, b) form a guiding coalition, c) create a vision, d) communicate the vision, e) empower others to act on the vision, f) plan short-term wins, g) consolidate improvements, and h) institutionalize the change. Whereas Garvin’s model defines a similar set of elements including a) leadership behavior, b) the need for a shared vision, c) the shape of the vision, d) commitment, e) making change last, f) monitoring progress, and g) change systems and structures. Comparing both models, each offers a roadmap for leading change. In contrast, Kotter’s model examines change very distinct phases and denotes that failure in any phase could derail change. Garvin’s model used Lewin’s theory of unfreezing and refreezing the change process (Mento et al., 2002). Both models emphasis organizational change is a process with distinct inflection points. The © 2008 by Gregory H. Schultz ALL RIGHTS RESERVED Evaluating Leadership Outcomes leadership process outlined by Vroom and Jago (2007) shares distinct characteristics with the change models highlighted. These characteristics provide insight for the context or specific situations that might be used to evaluate leadership effectiveness. Measuring Leadership Outcome Using feedback to evaluate leadership outcomes Since change is a major function of leadership and successful change should equal successful outcome, this section will examine 360-degree feedback as a method of evaluating leadership outcomes. 360-degree feedback, in essence, provides a snapshot or depiction of behavior for some continuum (Alimo-Mecalfe & Alban-Metcalfe, 2005). The outcome of successful change is a supporting culture that has embraced the institutional components of change. Alimo-Mecalfe and Alban-Metcalfe pointed out that organizational transformation enables and drives the norms of the resulting culture and culminates with a shared vision held by the culture. Thus, perceptions of followers should provide feedback about the behaviors possessed and exhibited by leaders during the transformational process. 360-degree feedback provides precise information about leadership strengths and weaknesses by a cross-section of organizational representatives (Conger & Toegel, 2002). Leaders must realize that feedback is individual perception of respondents and any advantage is based on how leaders use the information. To understand what elements contributed to successful change and what dimensions of leadership enabled successful change, Wren and Dulewicz (2005) explored the use of 360-degree feedback within the Royal Air Force. Wren and Dulewicz identified a set of leadership dimensions and a set of leader activities found to be most beneficial for successful change. The high dimensions include: a) managing resources, b) engaging communication, and c) empowering teams. Whereas the most important leadership activities included: a) a vision of the future state, b) nurturing the culture, c) establishing early wins, d) taking responsibility, e) not losing sight of the big picture, and f) motivating the team. Wren and Dulewicz were careful to point out that successful change contains the most important leadership dimensions and 360-degree 2 feedback offers rater input on the strengths and weaknesses of each dimension. Drucker (2004) stated the modern view of leaders may be single dimensional given the research in areas of charismatic leaders but warned that great leaders are not from the same mold. Thus, evaluating leadership outcome may require some level of qualitative feedback. As pointed out earlier, 360-degree feedback is a good form of qualitative feedback. Martineau (2004) stated the first critical step in any evaluation process is to identify key stakeholders. The right stakeholders for leadership evaluation are people who have a stake in the appropriate outcome. The right stakeholders understand the context or situation of the applied leadership process. Therefore, stakeholders are the most relevant players in defining outcome of the leadership application. Organizational innovation as an outcome Drucker (2004) stated leaders must ask tough questions such as what needs to be done in the organization. Doing the right things for the organization does not take into account what the leader would like to do; rather it focuses on what makes the organization successful. For organizations on the technology frontier, innovation may be a way to measure leadership success. Profitable innovations may be an indication that leadership focus is on the future and that leaders understand the external forces acting upon their organization. Researchers agree that measuring revenue streams offers a tangible method of evaluating innovation (Lanjouw & Schankerman, 2004; Shapiro, 2006). Shapiro posited, "[p]ercent of revenue from new products is the most commonly used measure of innovation" (p. 43). Examining the amount of patents filed based on the level of research and development provides a second method to measure innovation. Patent submission is indicative of the level or quantity of organizational innovation. In their research, Lanjouw and Schankerman found that patent release timing and product demand had a strong correlation to organizational stock price variation. The outcome of stock price variation over time may mean that for some firms, stock valuation could be a way to measure periods of innovation. Therefore, organizational growth and decline may be indicative of the quality of leadership continuum. Historical organizational growth and decline based on stock valuation are tangible quantitative © 2008 by Gregory H. Schultz ALL RIGHTS RESERVED Evaluating Leadership Outcomes measures that are easy to located and manipulate using mathematics. Evaluating Leadership Taking qualitative measures like 360degree feedback together with pre-defined quantitative measures such as profit or stock valuation offers a well-rounded view of leadership outcome. Comprehending perceptions of peers and followers aids in understanding leadership behavior within the organization. A multi-rater instrument or 360degree feedback develops a perspective of leadership behavior from an external perspective (Conger & Toegel, 2002). In order to improve, leaders must know how to change behavior and multi-rater feedback transfers perceptions about self-knowledge (Conger & Toegel). However, leader’s willingness to accept feedback and apply the feedback to appropriate areas of professional development defines feedback effectiveness. Vectors to rate during feedback sessions include leadership strengths and weaknesses based on the outcome of the leadership process. 360-degree feedback provides precise information about leadership strengths and weaknesses in a cross-section of organizational areas (Conger & Toegel). Each area of feedback should be laden with actual events that occurred, which will help define the context. A problem with 360-degree feedback includes leadership acceptance of the feedback. Facteau and Facteau (1998) found that less 3 than perfect scores affected leadership acceptance of feedback by bringing into question the leader’s perception of self. The outcome of leadership evaluation is developmental in nature. Developmental areas highlight areas for improvement where leaders are deficient. Conger and Toegel (2002) found that leadership improvement resides in the region between leader self-perception and the perception of raters. Evaluating leadership should provide a core understanding of the qualitative components of leadership processes including the application of influence coupled with the quantitative measure of tangible outcome such as innovation and stock valuation. Conclusion Researchers agree that the definition of leadership is not concise but many frame the definition within the context in which leadership exists (Bass, 1990; Kreitner, 1995; Vroom & Jago, 2007). Using stakeholders that understand the context aids in leadership evaluation. 360degree feedback provides a qualitative method to gather information about the leadership process. Another technique uses quantitative methods to collect information about organizational growth and decline by examining stock variation over time. Qualitative and quantitative measures together offer a broad perspective to evaluated leadership. The evaluation provides correlation to tangible and intangible components described by Vroom and Jago’s (2007) perspective on leadership as a process. © 2008 by Gregory H. Schultz ALL RIGHTS RESERVED Evaluating Leadership Outcomes 4 References Alimo-Metcalfe, B., & Alban-Metcalfe, J. (2005). The crucial role of leadership in meeting the challenge of change. Vision-The Journal of Business Perspective, 9(2), 27-39. Bass, B. M. (1990). Bass & Strogdill’s handbook of leadership: Theory, research & managerial applications. (3rd ed.). New York: The Free Press. Conger, J., & Toegel, G. (2002). Action learning and multi-rater feedback as leadership development interventions: Popular but poorly deployed. Journal of Change Management, 3(4), 332-348. Creswell, J. W. (2003). Educational research: Planning, conducting, and evaluating quantitative and qualitative research (2nd ed.). 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