1.14 Return on Investments in Leadership Development in Healthcare
Purpose
ROI Institute Canada developed this instrument for assessing return on investment (ROI) in healthcare leadership development. The instrument is designed to accomplish two main goals:
Evaluate the effectiveness and impact of individual leadership programs within healthcare organizations
Aggregate results across multiple initiatives to provide a comprehensive assessment of the overall return on investment (ROI) for leadership development initiatives in the healthcare sector
Ultimately, the goal of this instrument is to establish a systematic and standardized approach to program evaluation, empowering healthcare organizations to make informed decisions regarding resource allocation and program improvement (Karimi-Dehkordi et al., 2022; Jeyaraman et al., 2018).
The instrument is intended for use by individuals responsible for designing, implementing, and evaluating leadership development initiatives within healthcare settings, including program managers, human resources personnel, and organizational leaders. The results of the test can also be used by various stakeholders within healthcare organizations.
Description
The tool was developed by ROI Institute Canada. The instrument’s scoring system is based on a structured evaluation framework that considers factors such as program costs, outcomes achieved, and the overall impact on healthcare organizations. Results are analyzed using statistical methods to derive ROI metrics and assess the effectiveness of leadership development efforts.
The tool is growing in popularity, and a meta-analysis by Jeyaraman et al. (2018) found that 223 studies published between 2006 and 2016 used the instrument. Potential limitations of the instrument could include the challenge of accurately quantifying intangible benefits of leadership development and variations in organizational contexts that impact ROI calculations. Finally, the interpretation of the result across organizations or any benchmarking should be interpreted with caution due to the divergence and the complexity of the funding model across health care organizations.
Access
The (LDI) instrument is available at https://chlnet.ca/leadership-development-impact-assessment-toolkit. It is available for free for CHLNet partners. For nonmembers, it can be purchased through the Canadian College of Health Leaders https://cchl-ccls.ca/resource/leadership-development-impact-assessment-toolkit-ldi/.
Reference
Jeyaraman, M. M., Qadar, S. M. Z., Wierzbowski, A., Farshidfar, F., Lys, J., Dickson, G., Grimes, K., Phillips, L. A., Mitchell, J. I., Van Aerde, J., Johnson, D., Krupka, F., Zarychanski, R., & Abou-Setta, A. M. (2018). Return on investment in healthcare leadership development programs. Leadership in Health Services, 31(1), 77–97. https://doi.org/10.1108/LHS-02-2017-0004
Karimi-Dehkordi, M., Dickson, G., Grimes, K., Schell, S., & Bourgeault, I. (2022). Evaluation of a leadership development impact assessment toolkit: A comparative case study of experts’ perspectives in three Canadian provinces. Leadership in Health Services, 36(3), 335–353. https://doi.org/10.1108/LHS-05-2022-0036
