With the rise of Stakeholder Capitalism and focus on environmental, social, and governance (ESG), leaders are seeking standardized metrics to leverage for a shared understanding of how well they are doing in fulfilling these mandates.
A key common determinant of success or failure to meet ESG goals and fulfill the Stakeholder Capitalism requirements, is the ability of leaders and managers to execute with intentional alignment on the related strategies.
Yet until now there has been no leadership execution related metric, and no easy solution to unlock and measure purposeful leadership.
Return On Leadership® (ROL) is that metric, and it is unique in that it measures and improves both the business and human side of Stakeholder Capitalism.
To demonstrate the power of Return On Leadership, in early June, Indiggo released the ROL100™. This is the first ranking of its kind, focused on public companies and was co-published in partnership with Fortune contemporaneously with the release of the 2021 Fortune 500 ranking.
The results were striking. Our analysis shows that there is a statistically significant relationship between achieving a high ROL ranking and superior financial performance. Companies in the top 25 of the ROL100 ranking have three times the Total Shareholder Return (TSR), 5 times the EBITDA per employee and seven times the revenue growth as compared to the bottom 25.
On the human side, the findings were also striking – There is a statistically significant relationship between high ROL and positive ratings from employees.
Companies in the top 25 of the ROL100 are rated more positively on several dimensions, with happier employees who are more likely to recommend their employer to a friend.
Read the rest on Nasdaq!