10 MIN READ
Ulrich's Leadership Capital Index
Putting a Value on Leadership
Your organization's market value depends on many things, not least measurable and attention-grabbing factors such as profitability, assets and earnings.
But many investors are increasingly looking beyond your bottom line. They are putting your leadership under the microscope, because they recognize that effective leadership produces financial results. In other words, they are trying to put a market value on leadership.
So, is it possible to put a tangible value on intangible elements such as personal leadership qualities, organizational culture, and talent management? The Leadership Capital Index is a new tool that aims to give investors and organizations a rigorous framework for doing just that.
In this article, we look at the origins of the Leadership Capital Index, how it can be used by investors and organizations, what leaders can do to boost their Index rating, and how it can be useful to team managers.
What Is the Leadership Capital Index?
Dave Ulrich, a professor of business administration at the University of Michigan's Ross School of Business, wanted to create a tool that he said would "evaluate leadership through the eyes of investors to more fully determine a firm's value."