""Thank you for everything Dan. You made an incredible difference in my life and I will never forget you or what you taught me.""
Director, Healthcare Services
"The median ROI for executive coaching in companies is 7 times their initial investment. Almost one fifth of respondents (19%) indicated an ROI of at least 50 (5000%) times the initial investment while a further 28% saw an ROI of 10 to 49 times the investment"
-- A 2009 research study conducted by PricewaterhouseCoopers and the Association Resource Centre Inc.
What are the benefits of coaching?
According to a 2009 study commissioned by the International Coach Federation and carried out by PricewaterhouseCoopers and the Association Resrouce Centre, Inc., the top benefits reported by coaching clients are:
- Self esteem/self-confidence (80%)
- Relationships (73%)
- Interpersonal/Communication Skills (72%)
- Work Perfornance (70%)
- Work-Life Balance (67%)
- Business management (61%)
What kind of ROI are companies receiving from coaching?
- "The median ROI for companies is 7 times their initial investment." -- A 2009 research study conducted by PricewaterhouseCoopers and the Association Resource Centre Inc.
- "This Fortune 500 company found 529% return on investment and significant intangible benefits to the business." Read research findings from Metrix Global LLC
- "Senior level executives at Fortune 1000 companies who received developmental coaching experienced an average return from the programs of nearly 5.7 times the initial investment." Read research from The Manchester Review
- "Overall, the investigators are confident that the Client Company has achieved total impact in the millions. The immediate return on investment will be in the 10 to 1 range. The long-term return will be even higher." Read research from coaching.com
- “Asked for a conservative estimate of the monetary payoff from the coaching they got, these managers described an average return of more than $100,000, or about six times what the coaching had cost their companies.” -- Fortune, 2001
Coaching Paired With Training
- “Xerox Corporation carried out several studies on coaching. They determined that in the absence of follow-up coaching to their training classes, 87% of the skills change brought about by the program was lost." -- Business Wire, July 30, 2001
- “A study featured in Public Personnel Management Journal reports that managers (31) that underwent a managerial training program showed an increased productivity of 22.4%. However, a second group was provided coaching following the training process and their productivity increased by 88%. Research does demonstrate that one-on-one executive coaching is of value.” - by F. Turner, Ph.D. CEO Refresher 2001
Coaching & Sales Professionals
Michigan-based Triad Performance Technologies, Inc. studied and evaluated the effects of a coaching intervention on a group of regional and district sales managers within a large telecom organization. The third party research study cites a 10:1 return on investment in less than one year.
The study found that the following business outcomes were directly attributable to the coaching intervention:
- Top performing staff, who were considering leaving the organization, were retained, resulting in reduced turnover, increased revenue, and improved customer satisfaction.
- A positive work environment was created, focusing on strategic account development and higher sales volume.
- Customer revenues and customer satisfaction were improved due to fully staffed and fully functioning territories.
- Revenues were increased, due to managers improving their performance and exceeding their goals.
Is coaching a fad? Who should have access to coaching?
Research by the Chartered Management Institute and Campaign for Learning - "Coaching at Work". Results issued in a press release dated 16th May 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 morale
- 80% of managers value coaching for generating responsibility on the part of the learner (Research by The Lifecoaching Company - "Coaching Today Survey." Research took place at the HRD Show in London in April, 2002, respondents all HR professionals
- 86% held very positive views on coaching
Respondents stated that coaching achieves the following desired outcomes:
- Positive impact on other aspects of participants' lives, both at work and outside the workplace (96%)
- A feeling amongst participants of ownership of the issues and the outcomes (85%)
- Evidence of learning being put into practice (71%)
- Readily-quantifiable and positive results, often demonstrated on the company's bottom-line over the long term (62%)
TOP 4 words associated with COACHING (from a given list) were:
- Supportive (98%)
- Empowering (82%)
- Holistic (80%)
- Inspirational (77%)
TOP 3 words associated with TRAINING (from the same given list) were:
- Prescriptive (71%)
- Rigid (70%)
- Intimidating (50%)
Coaching and Top Management Challenges
The Blanchard companies identified the top management challenges of organizations. Coaching is a powerful tool that helps organizational leaders improve performance in these key areas:
- Developing Potential Leaders
- Reducing Costs
- Selecting and Retaining Key Talent
- Succession Planning
- Creating an Engaged Workforce
- Improving Customer Loyalty and Retention
- Improving Company Flexibility and Responsiveness
- Increasing Innovation
In a study published by Fast Company magazine in 2001, Markus Buckingham asserted the following about the U.S. workforce:
- 29% are engaged in their work
- 55% are not engaged in their work
- 16% are actively disengaged
Consider also the following:
- The number one indicator of job satisfaction is the relationship between an employee and his or her direct manager.
- The most important factor in individual success is the capacity to build and leverage a personal network of relationships.