Coaching - Your ROI

Coaching - Your Return on Investment

The Benefits of Coaching

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Jan. 4, 2001--Manchester Inc., a supplier of customized executive coaching programs, has released the results of a study that quantifies the business impact of executive coaching. The study includes data on executive behavior change, organizational improvements achieved, and the return on investment (ROI) from customized, comprehensive executive coaching programs.

The study included 100 executives, mostly from Fortune 1000 companies, who received coaching.

Participating companies realized improvements in productivity, quality, organizational strength, customer service, and shareholder value. They received fewer customer complaints, and were more likely to retain executives who had been coached.

In addition, a company's investment in providing coaching to its executives realized an average return on investment (ROI) of almost six times the cost of the coaching.

Half of the executives in the study held positions of vice president or higher (including division president, general manager, chief executive officer, chief financial officer, chief information officer, partner, principal, and practice leader). Almost six out of 10 (57%) executives who received coaching were ages 40 to 49, and one-third earned $200,000 or more per year.

The coaching programs that executives participated in were a mix of both change-oriented coaching -- which is aimed at changing certain behaviors or skills -- and growth-oriented coaching -- which is aimed at sharpening performance. The coaching programs typically lasted from six months to one year.

Among the results of the study:

The coaching programs delivered an average return on investment of 5.7 times the initial investment in a typical executive coaching assignment -- or a return of more than $100,000 -- according to executives who estimated the monetary value of the results achieved through coaching.

  • Productivity (reported by 53% of executives)
  • Quality (48%)
  • Organizational strength (48%)
  • Customer service (39%)
  • Reducing customer complaints (34%)
  • Retaining executives who received coaching (32%)
  • Cost reductions (23%)
  • Bottom-line profitability (22%)

Other benefits to executives who received coaching were improved:

  • Working relationships with direct reports (reported by 77% of executives)
  • Working relationships with immediate supervisors (71%)
  • Teamwork (67%)
  • Working relationships with peers (63%)
  • Job satisfaction (61%)
  • Conflict reduction (52%)
  • Organizational commitment (44%)
  • Working relationships with clients (37%)

Executive coaching programs focus on helping executives adjust to new organizational realities and not just survive, but thrive.

Quotes

"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

"A major benefit of coaching is having someone who helps you see your strengths and weaknesses and uses them to accomplish your goals."
      - Minneapolis Star-Tribune

"Using [coaching] instead of sending executives and managers to seminars two or three times a year can be more beneficial to ongoing career development, not to mention less expensive..."
      - PC Week

"Coaching takes a holistic view of the individual: work, corporate values, personal needs and career development are made to work in synergy, not against one another."
      - British Journal of Administrative Management

"Coaching started in the business world to help stressed out executives cope with their professional and personal lives, and it still thrives in the corporate environment. But, increasingly, individuals are turning to coaches for help with every sort of problem."
      - Boston Globe

"If you want to build your business and at the same time have a rewarding personal life, you call a coach."
      - Denver Post

"A personal coach can help you by getting you to spell out what it is that you really want and then working with you to make the changes that actually enable you to get there."
      - The Vancouver Province