Articles: Strategic Business Development Archives
ROI From Coaching
Though the use of coaching is mushrooming , metrics by industry are lacking at this stage. Now measurements are more frequently being built into coaching programs. A recent study on coaching of executives across various industries demonstrates impressive outcomes on return on investment (ROI) as well as improvements in specific areas of both interpersonal dynamics and financial results.
The 2004 study by Manchester USA, Inc.of 100 executives who received executive coaching indicated a 5.7 times return on initial investment.
RESULTING BENEFITS FOR COMPANIES:
Improved:
- Productivity (reported by 53% of executives)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Reduction of customer complaints (34%)
- Retention of executives who received coaching (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
RESULTING BENEFITS FOR EXECUTIVES COACHED:
Improved:
- Working relationships with:
- Direct reports (77%)
- Immediate supervisors (71%)
- Peers (63%)
- Clients (37%)
- Teamwork (67%)
- Job satisfaction (61%)
- Conflict reduction (52%)
- Organizational commitment (44%)
Each organization should track its own coaching ROI. The above results make a strong case for instituting coaching in most organizations.
© Phyllis Weiss Haserot 2005.
09/2005