Description
Percentage of managers with leadership development plans in place.
Formula
End of period headcount. Manager. LOP / End of period headcount. Manager * 100
Interpretation
LOPs are a key component of the successful development and performance of an organisation’s leaders. Simply having such a plan in place was deemed by surveyed leaders to be one of the most important factors in ensuring development.
LOP Prevalence Rate indicates the percentage of managers who have LOPs established.
LOPs might contain planned or recommended steps for a leader related to executive coaching, training courses, supervisory experience, experience in new functions or business lines, mentoring and other key developmental areas.
The plan is targeted toward the leadership competencies or personal skills that have been identified as in need of improvement or generally beneficial to all leaders.
An LOP is most beneficial when it is pursued and closely monitored by the individual, the supervisor and perhaps a leadership coach.
High results for this measure may indicate that LOP requirements have been strongly enforced or that leaders have taken an active interest in managerial development.
Low results may indicate that the programs are not widely understood or enforced or that leaders take a passive interest in managerial development.
Data Sourcing
Organisations may capture LOP data within a performance management, development or succession management database. Otherwise, this information may be tracked manually by managers or by HR. To be considered ‘in place’, an LOP should be updated at least annually.
Analysis
One meaningful way organisations may wish to work through this data is among the particular populations for which an organisation is likely to desire LOPs, using dimensions management designation (e.g. Team Leader, Manager, Director), pay grade, high-potential designation, number of direct reports, performance rating, organisational unit or location.
To monitor the diversity of current or future leaders, organisations might analyse this measure by gender, ethnic background, age and job function.
Limitations
LOP Prevalence Rate speaks to the existence of development plans but not to their adequacy, depth or the extent to which they are perused and maintained. LOPs are just one of the many development tools necessary in developing an organisation’s future leaders.
Targets
Targets for LOP Prevalence Rate will be most useful when set within the particular populations for which LOPs are most relevant. For example, an organisation might target a result of 100 per cent among all employees at the Vice President level and above, 80 per cent at the Director level, etc.
Besides title, organisations might set these population-based targets by pay grade, high-potential designation, number of direct reports, performance ratings, organisational unit, location or some combination of these characteristics.