How to Assess Leadership Capabilities

Several methods can be used to evaluate leadership potential and performance, which is essential for identifying and developing effective leaders. The best approach often involves a combination of tools and techniques to get a well-rounded view. Here are some of the most effective methods:

1. 360-Degree Feedback

• What it is: This method collects feedback from peers, subordinates, superiors, and even clients.
• Why it’s effective: Provides a well-rounded view of an individual’s leadership behaviours, allowing them to understand how they are perceived across different relationships.
• Best used for: Self-awareness, emotional intelligence, interpersonal skills, and overall leadership effectiveness.

2. Psychometric Assessments

• What it is: Tools like the EQ-i 2.0 emotional intelligence assessment, Influence Style Indicator, and OMG Sales Manager/Leader evaluations assess critical leadership factors, including emotional intelligence, influence approach, and sales mindset and beliefs.
• Why it’s effective: Psychometric assessments can reveal leadership potential by examining behaviours, emotional intelligence, decision-making style, and influence tactics. The EQ-i 2.0, for instance, assesses self-regulation, empathy, and social skills, which are essential for leadership effectiveness, while the Influence Style Indicator helps understand a leader’s preferred influencing approach, and OMG tools evaluate sales-specific leadership capabilities.
• Best used for: Identifying leadership potential, gaining insights into behavioural strengths and development areas, and understanding influence and decision-making styles.

3. Behavioural Interviews

• What it is: A structured interview process where candidates or leaders are asked to describe how they have handled specific situations in the past.
• Why it’s effective: Focuses on past behaviour as a predictor of future performance, especially in areas like decision-making, conflict resolution, team leadership, and strategic thinking.
• Best used for: Assessing leadership in action, decision-making abilities, and problem-solving skills.

4. Leadership Simulations and Case Studies

• What it is: Simulated environments where individuals are asked to handle leadership challenges in a controlled setting, such as managing a team or resolving a crisis.
• Why it’s effective: Tests real-time decision-making, adaptability, and problem-solving in high-pressure or complex situations.
• Best used for: Evaluating practical leadership skills, strategic thinking, and adaptability.

5. Self-Assessment Tools

• What it is: Leaders assess their own abilities, strengths, and areas for development.
• Why it’s effective: Encourages self-awareness and reflection, helping leaders identify gaps and areas for improvement.
• Best used for: Developing self-awareness and emotional intelligence.

6. Performance Reviews and KPIs

• What it is: Regular performance evaluations that look at an individual’s leadership outcomes based on set Key Performance Indicators (KPIs).
• Why it’s effective: Measures tangible leadership outcomes, such as team performance, project success, and achievement of strategic objectives.
• Best used for: Assessing accountability, goal attainment, and leadership effectiveness.

7. Peer and Team Feedback

• What it is: Informal or formal feedback from colleagues and team members on a leader’s impact on the team.
• Why it’s effective: Provides insight into how a leader influences team dynamics, motivation, and productivity.
• Best used for: Evaluating interpersonal skills, team leadership, and influence.

8. Development Centres/Assessment Centres

• What it is: Multi-day programs that include various exercises (group tasks, presentations, interviews) designed to assess leadership competencies.
• Why it’s effective: A comprehensive method that combines multiple assessment techniques and gives a broad picture of a leader’s skills across different scenarios.
• Best used for: In-depth leadership capability assessment, especially for succession planning.

9. Mentorship and Coaching Feedback

• What it is: Insights from a mentor or coach based on ongoing one-on-one discussions and development programs.
• Why it’s effective: Provides targeted and personalised feedback on specific leadership areas.
• Best used for: Leadership growth, personal development, and long-term capability building.

10. Emotional Intelligence (EI) Assessments

• What it is: Tools like the EQ-i 2.0 assess the emotional intelligence of leaders.
• Why it’s effective: Leadership is increasingly linked to emotional intelligence, which includes skills like empathy, relationship management, and self-awareness. These assessments are crucial in understanding how leaders manage stress, communicate, and motivate others.
• Best used for: Identifying emotionally intelligent leadership behaviours that improve team dynamics and personal leadership effectiveness.

Combining these methods, particularly psychometric tools like the EQ-i 2.0, 360-degree feedback, and real-world leadership simulations, can give a deep and accurate assessment of leadership potential and areas for growth.