Value & ROI of Business Coaching
Are you researching the value and ROI of executive coaching (also known as business coaching)?
the following are excerpts from extensive studies done that have proven the dramatic impact of executive coaching.
the first global study in 2008 surveyed 2,165 coaching clients from 64 countries.
▶ 80% of coaching clients report a positive change in work performance, communication skills, interpersonal skills, and relationships
▶ 82.7% of coaching clients report “very satisfied”
▶ 96.2% say they would repeat it under the same circumstances
▶ individual clients have seen a median return of 3.44 times the investment.
Research on Executive Coaching by the Chartered Management Institute and Campaign for Learning – “Coaching at Work”.
Results issued in a press release dated May 16, 2002:
▶ 80% of executives say they think they would benefit from coaching at work and dismiss the suggestion that coaching is just another fad.
▶ Virtually all managers (96%) think coaching should be available to every employee, regardless of seniority
▶ 85% of managers say the main value of coaching is in enhancing team moral
▶ 80% of managers value coaching for generating responsibility on the part of the learner
Research on Executive Coaching by Institute and Campaign for Learning, supported by Lloyds TSB.
While 33% of respondents had received coaching themselves, 80% believe that they would benefit from coaching/more coaching in their place of work, 93% believe that coaching should be available to all employees.
Coaching was perceived as a great benefit in a range of areas.
Not surprisingly development of task-specific skills was seen as important but, Managers also felt they wanted more support to develop personal effectiveness, emotional intelligence, assertiveness, or communication skills.
All of these are areas where coaching can have a real impact in a short period of time.
Research on Executive Coaching by HR Survey 2002 – LEE HECHT HARRISON surveyed 488 Human Resource professionals to learn how coaching is being used in their organizations.
Companies are increasingly turning to coaching for leadership development, style issues and talent retention, so it makes sense that 55% of respondents said that their organization uses coaching as a one-on-one process intended to maximize management and leadership potential and 54% do so to change behaviors.
A surprising number of respondents indicated that their organization uses coaching for personal/psychological counseling (36%), advice on appearance or attire (13%) or preparation for a major speech or presentation (11%).
Research on Executive Coaching by the International Personnel Management Association (IPMA), results of which were published in January 2001, concluded that
“ordinary training typically increased productivity by 22%, while training combined with coaching increased productivity by 88%”.
Research on Executive Coaching by Vision Quest Consulting 2001, found that of all clients interviewed
▶ 100% increased their ability to deal with business challenges by 75% or more
▶ 88% improved their job satisfaction by 75% or more
▶ 80% improved their ability to stay focused under pressure
▶ 78% increased their productivity at work by at least 50%
Research on Executive Coaching by the Manchester Group Inc in January 2001, found that:
▶ Executive Coaching yields return on investment of almost six times the initial investment in a typical coaching assignment.
▶ Companies who have provided coaching to their executives and their teams have realized improvements of over 48% in productivity, quality and organizational strength.
▶ Executives who have received coaching have reported improvements of over 60% in working relationships with direct reports and peers, teamwork, job satisfaction and conflict resolution.
TANGIBLE BUSINESS IMPACTS: (Frequency of impacts reported by executives)
| Productivity | 53% |
| Quality | 48% |
| Organizational Strength | 48% |
| Customer Service | 39% |
| Reduced Complaints | 34% |
| Own Retention | 32% |
| Cost Reductions | 23% |
| Bottom Line Profitability | 22% |
| Top Line Revenue | 14% |
| Reduced Turnover | 12% |
| Other Business | 7% |
INTANGIBLE BUSINESS IMPACTS
| Improved Relationship: Reports | 77% |
| Improved Relationship: Stakeholder | 71% |
| Improved Teamwork | 67% |
| Improved Relationship: Peers | 63% |
| Improved Job Satisfaction | 61% |
| Reduced Conflict | 52% |
| Increased Organizational Commitment | 44% |
| Improved Relationship: Clients | 37% |
| Other Intangibles | 31% |
