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Performance and Talent Management

Assessing Your Company’s Leadership: Key Metrics and Strategies for HR Professionals

April 4, 2023

When it comes to defining a company’s Culture, generating policies or strategies, and achieving goals, the role of supervisors is crucial. As Ximena Paul, CEO of Nala, emphasizes, it’s essential to visualize how all leaders perform to ensure the success of your company’s strategy. Nala has developed a Leadership Matrix, a tool that allows companies to see how their leaders perform and how to get them to the next level.

Many business leaders want to know if their leaders do their job effectively and if their messages and actions align with the company’s Culture. However, as Ximena points out, “At the decision-making level, there is often little visibility into how leaders are performing, particularly at the intermediate layers.” This lack of visibility can lead to a lack of alignment and a weakened organizational culture.

Nala’s Leadership Matrix is a visual tool that allows companies to monitor their leaders’ performance based on qualitative feedback and specific data-driven KPIs. “Through leadership mapping, companies can map their leaders and receive actionable recommendations on improving their leadership capacity at the organizational level,” Ximena affirms. To assess a leader’s effectiveness, the Nala Leadership Matrix considers various factors, such as team engagement, voluntary turnover, and performance. Leaders with high scores on these indicators are considered excellent leaders. The Matrix also incorporates team feedback as a critical input of a leader’s performance.

María Fernanda Castillo, one of Nala’s founders, stresses the significance of leaders in scaling company culture. “Culture is only scalable through leaders. A CEO’s company goals can only be achieved if all leaders are aligned and share the same objectives,” she states.

In today’s highly competitive business environment, employee satisfaction, retention, and overall success depend heavily on leadership quality. As the famous saying goes, “People quit their boss, not the company.” Therefore, it’s crucial to recognize and assess leadership in your organization to ensure that your employees are satisfied and engaged, leading to better retention rates and overall success. Using tools like Nala’s Leadership Matrix, HR professionals gain valuable insights into their company’s leadership and can take action to improve it.

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