Investment in Leadership Development and Education

Extracted 31AUG2011 from http://logisticsviewpoints.com/2011/08/31/whats-missing-i-your-2012-budget/

by Adrian Gonzalez, August 31st, 2011

Almost 52 percent of the supply chain executives I surveyed earlier this year do not include leadership development and education as a separate line item in their budgets; instead, it falls under discretionary spending or some other general category...

Almost 78 percent of the executives surveyed would allocate more than $3,000 annually per executive, while only 37 percent of their employers currently allocate or reimburse that amount. More surprising, almost a quarter of the employers (23.7 percent) allocate or reimburse less than $500 annually per executive for leadership development and education.

...quantifying the ROI of leadership development and education is not easy or straightforward. Therefore, when companies look to cut costs, especially during difficult economic times, training and education, across all levels of the organization, are among the first items to get the ax. The challenge is to connect the dots between investments in leadership development and education (LD&E) to tangible outcomes the CFO and CEO can understand — i.e., items on your company’s P&L and balance sheet.