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The Value of Being a Star Leader at Work in Times of Uncertainty 

Summary:  This article examines how to calculate ROI on peak performance leadership development and coaching.

The business climate has become especially turbulent in this emerging period of uncertainty -- stemming from never-seen-before challenges to our way of life and our way of doing business. Increasingly executives are required to consider economic value-added (EVA), and return on investment (ROI), analyses in choosing development and executive coaching options.

What is the value of being a peak performer?  In the most complex jobs, a top performer is 127 percent more productive than an average performer (Hunter, Schmidt, & Judiesch, 1990).

for the Peak Performance Leadership Workshop with Optional Coaching.

Peak-Performers Generate 123% More Revenue

An analysis of forty-four fortune 500 firms’ sales professionals found that average emotional intelligence level sales professionals, earning moderate salaries, sold an average of $3 million in goods or services.  However, high emotional intelligence representatives sell 123 percent more – for a total of $6.7 million in goods or services. (Sloan and Spencer, 1991).

In another example, twenty-eight Incon branch managers had a ROI of 613 percent based on increased revenue after attending a two-day peak performance emotional intelligence training program.   Moreover, experienced partners in a multinational consulting firm who developed their key emotional intelligence competencies to above average delivered $1.2 million more profit from their accounts than did other partners – a 139 percent incremental gain (Boyatzis, 1999).

In a national insurance company, representatives who were high in emotional competencies such as self-confidence, initiative, and empathy were 105% more productive, in terms of revenue generated, than representatives low in those same competencies (Hay/McBer Research and Innovation Group, 1997).

The Cost of Not Developing Emotional Intelligence-Based Peak Performing Leadership

Research by the Center for Creative Leadership has found that the primary causes of derailment in executives involve deficits in emotional competence. The most common causes of derailment are difficulty handling change, low ability to work well in a team, and poor interpersonal relations.

When you consider that the cost of replacing a derailed executive is over $500,000 – the financial impact of not developing emotional intelligence-based peak performance is high indeed. 

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