Time to measure senior leaders' performance beyond just financial indicators Productivity and performance isn't just for the workforce. Senior leadership's performance needs to be evaluated and managed too – but how can this be done beyond financial indicators? Experts from the Center for Creative Leadership offer some pointers
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By Mint Kang
Sunil Puri
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t's clear enough that the executive leadership of a company has a major role to play in driving performance and productivity, whether on a business level or an individual level. So what about the leaders' own performance and productivity? These are typically evaluated in terms of a company's financial performance, including stock price if the company is listed, and also compensated accordingly. But the last few years have shown that financial perfor| FEBRUARY 2022
Elisa Mallis
mance doesn't necessarily correlate with other aspects of leadership. Is it possible to go a step further, and take a more comprehensive view of leadership performance? People Matters asked Sunil Puri, Asia Head of Research and Product Development, and Elisa Mallis, Managing Director and Vice President, APAC, from the Center for Creative Leadership (CCL), to weigh in on what constitutes effective leadership performance in today's environment. Here's what they shared.
Workforce productivity is frequently discussed, but productivity for top leadership is much less touched upon. What do you think are the indicators of a top leader's productivity and performance? Sunil: Looking at senior leader performance beyond the financial metrics such as topline and bottom line performance, valuation, stock price, is tricky to say the least. While from a shareholder perspective it may be adequate to look at financial metrics, it is certainly not appropriate in the current context when stakeholder capitalism pips shareholder capitalism, and people and planet is almost as important, if not more, than profits. CCL research shows that effective leadership happens when there is a clear strategic direction, alignment of different verticals and functions, and commitment by employees towards the shared purpose. To make it happen is senior lead-
