Does Coaching Work?
“Business Coaching is attracting America’s top CEOs because, put simply, business coaching works. In fact, when asked for a conservative estimate of monetary payoff from the coaching they got… managers described an average return of more than $100,000, or about six times what the coaching had cost their companies.”
FORTUNE Magazine
“Many of the worlds most admired corporations from GE to Goldman Sachs, invest in coaching.”
Harvard Business Review
“Recent studies show business coaching and executive coaching to be the most effective means for achieving sustainable growth, change and development in the individual, group and organization.”
HR Monthly
Case Study on the Return on Investment of Executive Coaching
In 2001, MetrixGlobal LLC, a professional services firm specializing in performance measurement solutions, conducted a study at a Fortune 500 firm.
“Coaching produced a 529% return on investment and significant intangible benefits to the business. Including the financial benefits from employee retention boosted the overall ROI to 788%. “
Merrill C. Anderson, Ph.D. MetrixGlobal, LLC
Reported benefits from coaching:
- Productivity (reported by 53% of people coached)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Customer complaint reductions (34%)
- Employee retention (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
(Merrill C. Anderson, Ph.D. MetrixGlobal, LLC)
Further results from coaching
According to another study carried out by McGovern, Lindemann, Vergara, Murphy, Barker and Warrenfeltz with Manchester, Inc. showed that coaching had the following benefits:
- 77% Improvement in Relationships with Direct Reports
- 71% Increase in Relationships with Immediate Supervisors
- 67% Increase in Teamwork
- 63% Increase in Relationships with Peers
- 61% Increase in Job Satisfaction
- 44% Increase in Organizational Commitment
- 37% improvement in Relationships with Clients
Why is the Use of Coaching Increasing?
Having an executive coach is not a sign of trouble any more. In fact, it has become a status symbol for high-performing managers who want to develop their leadership and manage specific problems more effectively (from the annual survey carried out by Sherpa Coaching – ‘Do you believe in Coaching?’ Feb. 1, 2007)
A 2004 study carried our by the CIPD, the Chartered Institute of Personnel Development, attributes these nine factors as the principle forces driving the increasing use of executive coaching:
- Rapidly evolving business environment
- Individual responsibility for development
- Financial costs of poor performance
- Popular development strategy
- Supports other learning
- Employees request coaching
- Need for lifelong learning
- Improves decision-making
- Targeted, just-in-time development
(Chartered Institute of Personnel Development, 2004)
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