Leadership Assessment

What is leadership assessment?

Leadership is crucial to the success of an organization. Therefore, robust leadership assessment tools are critical for helping identify the best individuals for leadership roles and to support ongoing leadership and team development. Selecting and developing top-quality leaders helps to drive the organization forward, improve efficiencies, align effort and energy, and engage employees.

Leadership assessment is an objective process used to measure two main components of an individual against the requirements for the role. First, their talents and strengths, and second, their limitations and development opportunities. . The measurement process can include a single assessment or a series of different leadership assessment tools, and it can be used for a range of purposes including recruitment and selection, individual development (of performance or potential), restructuring, and succession planning.

The leadership assessment process typically begins by identifying the core competencies or characteristics that best predict leadership success within an organization. This is achieved through conducting a job analysis, competency modeling review, administration of personality questionnaires, and exercises that simulate job-specific scenarios (e.g., business analysis presentations or meeting simulations with peers, direct reports, or customers). The leadership assessment is then designed to measure the key competencies and characteristics identified in the job analysis which are crucial for effective leadership in a particular role. The insights gained from leadership assessments enable organizations and their leaders to better understand the prerequisites for leadership success, how to build a strong leadership pipeline, and how to enhance the performance of both the leadership team and the organization as a whole.

Why are leadership assessments important?

Selecting leaders best fit for a role is critical to the success of an organization. Conversely, making the wrong leadership choices can end up being costly. It is important for organizations to conduct an objective and thorough leadership assessment to ensure the best people are selected for critical leadership roles, leading to enhanced performance, engaged employees, increased profitability, and high-impact results. The best leadership assessment tools are specifically designed to measure the key traits and soft skills of a potential leader, providing a strong sense of who is best suited to manage and motivate the entire team effectively.

What are the benefits of using leadership assessments?

A high-quality leadership assessment offers numerous benefits for both the organization and the individuals involved:

Organizational benefits:

1. Boosts morale and productivity: Effective leaders drive results, navigate change, and engage employees.
2. Executes mission and vision: Leaders are crucial in executing the organization’s mission and realizing its vision.
3. Identifies skills and training needs: Assessments for leadership potential provide organizations with a clear overview of leadership skills. The assessment also highlights areas needing development, paving the way for targeted training initiatives.

Individual benefits:

1. Increases self-awareness: Participating in a leadership assessment helps leaders identify development blind spots and guide meaningful behavioral changes.
2. Enhances performance: Focuses on personal growth, enhancing overall leadership effectiveness.
3. Provides role insight and confidence: Gives prospective leaders valuable insight into their roles and the organization, boosting their confidence in their ability to succeed.

Leadership assessments provide a consistent and equitable method for evaluating candidates, clearly defines the organization’s leadership criteria, and predicts which candidates will succeed. For leadership development, this process becomes an essential tool, offering leaders detailed feedback on their assessed competencies and leadership style. The assessment not only outlines their performance levels but also provides specific guidance for improvement. The dual application of leadership assessments in selection and development underscores their critical role in enhancing leadership quality and achieving organizational goals.

What is the difference between leadership assessment and executive assessment?

Leadership assessment and executive assessment both refer to a process used to measure a person’s fit for a leadership role. Leadership assessment is a broader term and can be used to refer to a wide range of roles from first-time managers to senior leaders. Executive assessment, or executive leadership assessment, refers specifically to senior leadership and C-suite roles. While both types of assessments gauge leadership effectiveness, executive assessments require a more narrowly focused evaluation, demanding extensive knowledge and experience from candidates.

Leadership assessment methods

Leadership can be assessed through various methods such as interviews, personality questionnaires, situational judgment items, 360 assessment tools, and simulation exercises. It is important to first determine which competencies and characteristics you are seeking to measure so that you can ensure you select the best assessment methodology. Once the key leadership competencies, characteristics, and behaviors have been identified, then the leadership assessment process can be designed to measure these aspects. Using a variety of assessment methods is crucial for success in leadership assessment as it helps ensure reliability and comprehensive coverage. Additionally, employing multiple measures increases the process’s objectivity, job-relatedness, and fairness.

Leadership competency assessment tools

Typically, leadership assessment includes online assessment tools as a basis, such as a personality inventory, cognitive ability test, or emotional intelligence measure. It can be expanded to include a work sample exercise, simulation, or an interactive discussion such as an interview. Ideally, the assessments themselves reflect the realities of the job which in turn enhances the candidate’s experience and provides the candidate with a realistic preview of role requirements and responsibilities.

The approach selected will depend on the overall aim for the leadership assessment. When assessing leaders for selection, the approach will be slightly different than when assessing potential or developing leaders. For example, when using a 360-degree feedback tool to assess areas for leadership development, the approach needs to be collaborative and supportive, enabling leaders to understand and leverage the feedback for their personal and professional growth. When assessing leaders for potential, you are typically trying to predict an individual’s capability for a future role that they haven’t yet held, so the use of simulations and personality profiles can help predict performance and skills in leadership. Leadership profile assessments are beneficial for comprehensively gauging these capabilities.

Are there different levels of leadership assessment?

Leadership assessments can be utilized for all levels of leadership, including first-time managers, middle managers, or senior leaders. When designing these assessments, it is essential to tailor them appropriately to the leadership role in question. They should be challenging enough to gauge leadership capabilities accurately yet aligned with the competencies required at that specific level. The job analysis is key to ensuring that the assessments measure the correct aspects of leadership for the role, accurately reflecting the expectations for each level of leadership.

What does a good leadership assessment look like?

A good leadership assessment process should provide a well-rounded and objective way of evaluating a leader’s capabilities, as well as take into account the leader’s time investment. It is good to strike a balance between a thorough and robust leadership assessment to ensure the process is both meaningful and engaging for the leaders themselves. There are many different types of leadership assessment tools, and they will often employ a number of different methods. Some of the most common leadership assessment methods are:

Business simulations – Group exercises

These involve interpreting and discussing background information in a typically leaderless group setting to arrive at a decision.

Competency-based interviews

These are structured interviews with tailored questions to measure leadership competencies. They focus on gathering evidence of particular situations where an individual has demonstrated relevant behaviors.

Business simulations – Analysis exercises

These involve analyzing and interpreting data, followed by reporting these findings in writing. Specifically, the participant is asked to analyze both verbal and numerical information relevant to a work situation or challenge and then produce a report with their conclusions and recommendations.

360 Leadership surveys

These are online feedback surveys, also known as multi-rater assessments, where ratings from others – typically peers, direct reports, and managers – are gathered to evaluate the leader’s effectiveness against critical competencies and is then compared to their own self-rating. Often, the raters are also asked to provide written feedback as well to support and explain their ratings. 360 leadership surveys rely upon others in the organization having worked with and observed the individual to be assessed, therefore this assessment method is best used to support development and not suitable for recruitment where external candidates may be applying for the role.

Situational judgment tests

Situational judgment tests present a series of job-relevant scenarios, each with a list of different possible response options. Individuals are asked to review the scenario and then rate the effectiveness of each response option.

Business simulations – Inboxes/in-trays

These require reviewing and working through the contents of an email inbox for a fictional role. The participant is presented with several emails (with and without attachments) of updates, questions, problems, and data, varying in terms of importance and complexity that must be prioritized and actioned.

Ability tests

Ability tests measure broad-based abilities that have been shown to be predictive of performance in leadership roles such as verbal, numerical, and/or abstract reasoning. Ability assessments add rigor and objectivity to the leadership assessment process and provide insight into the ease with which the individual can learn new skills and reason through complex and ambiguous information.

Business simulations – Role plays

These are structured interpersonal interactions, typically a meeting with another person (the role player) to achieve a specified objective or agenda. For example, the participant may be asked to assume the role of a supervisor talking to and coaching an underperforming employee. Scoring is based on observed behaviors and the effectiveness with which the fictional situation is handled.

Personality questionnaires

Personality questionnaires are a self-report measure of preferences, motivations, and competencies. They present a series of statements about talents, characteristics, and behaviors, and individuals are asked to indicate the extent to which the statements are descriptive of them. These types of leadership assessments are particularly helpful to increase self-awareness and provide development insights and guidance needed to boost performance.

Business simulations – Presentation exercises

These involve asking the participant to review background information and then summarize findings, insights, and takeaways in the form of a presentation.

Can leadership assessments be run virtually?

Yes, by utilizing technology it is possible to conduct leadership assessments virtually. Many personality questionnaires can be completed online, and interviews can be conducted remotely via virtual meeting platforms. There are also leadership assessment platforms which enable leaders to complete a range of simulation exercises, such as role-play exercises and business analysis exercises, virtually rather than in person.

Conducting leadership assessments remotely can be very useful for global firms because a range of candidates can be assessed at the same time regardless of their location. It also replicates a very real-world experience for those required to work virtually and provides the opportunity to bring people together from different cultures and backgrounds.

What happens after a leadership assessment?

The next steps following the completion of a leadership assessment vary depending on the reason it was administered in the first place. For example, if the assessment has been conducted for selection purposes, then the best candidate may be appointed to the role. If the leadership assessment is conducted as an assessment for leadership potential, then successful individuals may then be invited to join a high-potential leadership program. Finally, if the leadership assessment has been administered to support development, then each participant may be enrolled in a leadership development program, as well as assigned to work with a coach.

In all instances, it is best practice to provide the participants undergoing leadership assessment with feedback following completion. This allows them to reflect on the process, identify their strengths and development areas, and consider how they can use the information to further grow as leaders for the future.

In most cases, a leadership assessment report is created following the assessment process. This report provides a summary of the individual’s performance on the assessment, helping the organization make informed decisions as well as offering the individual valuable insights into their leadership strengths and areas for development.

6 tips for successful leadership assessment

1. Provide training for all those involved in the leadership assessment process so they understand their roles and how to evaluate performance and resulting scores.
2. Make sure the purpose of why you are running the assessment is clear to all involved.
3. Ensure there is clear communication for all stakeholders involved.
4. Use a multi-method approach to ensure that the complex leadership behaviors being measured are assessed reliably and to best predict performance.
5. Ensure the leadership competencies are defined before designing the assessment process so that they can accurately be measured.
6. Prepare in advance and ensure that both the participating leaders and those conducting the leadership assessment are clear on the process.