So what does a leadership assessment cost?
That is a very simple and at the same time very complex question, which cannot just be answered with a simple figure. If you ask a consultant, he or she will most likely say something along the lines of: It depends on the assessment you want to conduct, how comprehensive you want it to be, which parameters you wish to measure and a number of other variables. In most cases a leadership assessment is a service that we provide to our customers as part of a major leadership development programme or a similar project. But it can also be an individual service, and in these cases a leadership assessment will cost from DKK 1,000 and up. In this blog post we will look into what conducting an assessment entails and what affects the price.
Effective and quick at a low cost
Let's start with a question that we are often asked, and which you may also wonder about: Is there a plain and simple standard assessment which is cost-effective that works?
Yes there is. People & Performance offers a standard solution which is good, carefully worked out and which provides results. Our standard assessment – the Leadership Snapshot – is based on research and several years of experience, which among other things show that effective leaders use the right mix of four behaviour categories; leading, managing, structuring and changing. The People & Performance Leadership Snapshot is designed around a set of standard questions, developed from many years of experience with leadership assessments, business cultures and leadership development. This standard assessment stands out from leadership assessments in general in that it measures on more elements of the leadership task. It is a 360-degree assessment and often the respondents will be the leader (performing a self-assessment), the leader's colleagues and employees and the leader's superior – often around six to 30 people (of course depending on the size of the company). In the standard assessment, we use a number of pre-defined parameters within leading, managing, structuring and changing. We send out the survey to the relevant respondents and subsequently prepare a report based on the data collected.
The price of our standard Leadership Snapshot is DKK 2,500 per assessment per leader, but if the company has a large group of leaders and if you sign a long-term contract for repeated assessments, the price may be as low as DKK 1,000 per assessment.
The standard assessment can of course be adjusted – it may for example be necessary to include other stakeholder groups, prepare additional procedures for collection of data or similar. And such adjustments will affect the price.
More comprehensive and more costly
On the other hand, if you are looking for a 100% tailor-made solution for your company, the complexity increases and so does the price.
A tailored leadership assessment has its starting point in an entirely different place than the standard assessment; it starts with the development of a framework tool based on existing leadership principles, leadership competences or whatever you may have defined as being "good leadership" in your company. The resulting framework tool will be the foundation of your own tailor-made 360-degree leadership assessment.
The price of developing this framework tool depends on a number of factors, but the price will usually be around DKK 20,000 to 30,000.
You could say that the tailor-made leadership assessment uses the same machinery as the standardised model, but the fuel is different. The tailor-made leadership assessment stands out from the standardised Leadership Snapshot in that we evaluate and link the assessment directly to your defined and desired leadership behaviour. The development work primarily consists of translating your defined leadership behaviour into specific and measurable behaviour statements and defining and preparing a reporting format specifically for you. The preparatory work will have a price tag, but when the engine is up and running, the price of the individual leadership assessment may be as low as DKK 1,000-1,200 per assessment – of course still depending on the number of assessments to be conducted and at which frequency.
But it depends on ...
When talking price, there are always a lot of reservations, and the same goes for the price of leadership assessments. No two companies are the same, and so there will always be special circumstances that may make the price a bit higher if the company does not fit immediately into the standard framework.
It all depends on your reality – contact us for an informal talk so that we together can find the model that suits you best.