Leadership and Organisational Value

An ongoing issue for the many people who believe the investment in Leadership is worthwhile and need to gain support for the investment, is the very valid question, “why should we use our scarce resources to invest in leadership over the more concrete issues such as systems and plant, or even the less concrete issues such as Brand? They are, of course, all important. 

Effective leadership however will enhance the value of the investment made in any of the other investment options the organisation has.  Taking this further, effective leadership will enhance the value of the organisation in the market.  The investment in leadership will enhance the share/or sale price of your organisation. For public sector or not for profit organisations, effective leadership will enhance the value of your organisation to your stakeholders.  This thinking has come from David Ulrich’s work at the University of Michigan.