The use of assessment instruments in the workplace has grown into a $400 million industry. In fact, more than 60 percent of Fortune 500 companies use assessments as part of leadership development.
Their organizational development practitioners are blending the science of assessments with the traditional art of hiring, promotional decisions, succession planning, leadership development, and coaching.
Assessment findings illustrate the traits and characteristics that one demonstrates on a daily basis. The data derived from assessments can help explain how an individual is perceived by others, what makes him or her successful, and what is preventing goal achievement.
Most leaders underestimate the impact they have on their organizations. It is a well-known fact that one of the major reasons employees leave their employer is not due to factors such as compensation or benefits but rather their manager’s style (Branham 2005). As managers climb the corporate ladder, they endure ever more pressure on bottom-line results and shareholder return. Yet, the technical skills, industry knowledge, and attributes that got them to their current role are probably not going to take them to the next level. In fact, over 40 percent of new managers fail within 18 months (Right Management, Inc., 2011). Most of these failures are due to an inability to build good relationships, or develop “emotional intelligence,” a term coined by Daniel Goleman. Many factors can cause managers to derail. And ironically, senior managers tend to get less behavioral feedback at a time when it is most needed—as they assume growing responsibilities in their movement up the corporate ladder. When used appropriately, feedback creates the gift of self-awareness.
Individuals can identify their personal assets and liabilities. They can see what is derailing them. Every day, wise leaders use information to understand their businesses and to make the changes to achieve their business goals. Similarly, wise leaders use personal assessment information to understand their styles and to guide meaningful behavioral change.
In summary, for coaching, the benefits of using assessments are many.