Coaching Helps Leaders Allocate Investment in People

Tina-Schuricht • March 27, 2025

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Coaching helps leaders allocate investment in people.  Leaders face myriad decisions daily, but few are as impactful as determining where to invest their time, energy, and resources. Knowing whom to invest in can be crucial to an organization’s success.  Have you ever had a leader who invested in you?  Or didn’t?  Did you wonder if they knew that their investment in various team members was inequitable?  Were they transparent where they were making their investment?  If so, what impact did that have on you and the rest of the team? The reality is that leaders must strategically decide whom to invest in and whom not to, to ensure they create the optimal mix of resources for both the short and longer term.

Assessing Potential

Coaches can help leaders create or process their frameworks for deciding who to invest in.  This framework should involve evaluating skills, performance history, and potential future capabilities. Leaders should invest in individuals who demonstrate a high level of competence, a strong work ethic, and a growth mindset. This assessment should be both qualitative and quantitative, incorporating feedback from peers, supervisors, and measurable performance metrics.

Key Indicators of Potential:

  • Skill Set : Does the individual possess the technical and soft skills required for their role and potential future roles?
  • Performance : Has the employee consistently met or exceeded expectations in their current position?
  • Growth Mindset : Is the individual open to learning and adapting to new challenges?

Alignment of Goals & Values

Leaders should prioritize investing in employees whose goals align with the organization’s objectives. This alignment ensures that the investment will not only benefit the individual but also contribute to the company’s success. Employees who are passionate about the company’s mission and values are more likely to be motivated and committed to their roles.

Key Indicators of Alignment:

  • Career Goals: Do the individual’s career goals align with the organization’s strategic objectives?
  • Alignment with Values: Does the employee demonstrate an alignment of their personal values to the company’s mission and values?

Cultural Fit

Cultural fit is another critical factor in deciding who to invest in. Employees who align with the company culture are more likely to thrive and contribute positively to the work environment. Leaders should invest in individuals who embody the company’s culture and work well with their colleagues.

Characteristics of Cultural Fit:

  • Collaboration : Is the employee a team player who contributes positively to group dynamics?
  • Engagement : Is the employee actively engaged and enthusiastic about their work?
  • Embodies the Culture : Does the employee add to (or take away from) the culture?

Impact and Influence

Leaders should also consider the potential impact and influence of their investment. Employees who have the ability to influence others and drive change are valuable assets to the organization. Investing in such individuals can amplify the benefits of the investment, leading to broader organizational improvements.

Questions to Assess Impact:

  • Influencing without Authority: Can the employee influence and inspire their peers?
  • Creating Impact: Does the individual have a track record of driving positive change within the organization?

Deciding Who Not to Invest In

While it’s essential to identify who to invest in, it’s equally important to recognize when not to invest in an employee. Leaders should consider not investing in individuals who consistently underperform, resist change, or exhibit behaviors that conflict with the company culture. These employees may require different forms of support, such as performance improvement plans or alternative roles, rather than investment in development.

Indicators for Minimal Investment:

  • Consistent Underperformance : Does the employee consistently fail to meet performance expectations despite support and feedback?
  • Resistance to Change : Is the individual resistant to new ideas and reluctant to adapt?
  • Cultural Misalignment : Does the employee’s behavior conflict with the company’s values and culture?

To Invest or Not to Invest

Deciding whom to invest in is a strategic process that requires careful consideration of potential, alignment with organizational goals, cultural fit, and impact. By making informed decisions about where to invest resources, leaders can foster a motivated and high-performing workforce that drives the organization’s success. Conversely, recognizing when not to invest allows leaders to allocate resources more effectively and support employees in ways that align with their capabilities and the company’s needs.  Reach out if you want to learn more about how coaching helps leaders allocate investment in people.

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