Return on Investment
Leadership & Executive Coaching — is there a measurable ROI?
Our philosophy for leadership and executive coaching is that it is all about RESULTS and Sustainable transformation! The key is how do we measure progress? There are many studies we can reference; I am including only a few for you to review. Yet, in reality, YOUR experience is what matters.
Thus, we have conducted a client survey every year since I founded Alignment, Inc.® Below are a few of the answers to how my clients measure ROI through coaching AND what % of ROI in these key areas Alignment, Inc.® delivered. In the 2014 client survey, the clients responded as follows.
The top five areas by which my client base measured ROI were:
- Exceeded expectations of delivered workshop or delivered keynote
- Greater alignment within executive team and to the organizational direction
- Improved employee satisfaction
- Improved team and individual productivity
- Improved team work
With these as their key measured areas, 100% experienced over 150% return on their investment with 50% of those experiencing over 250% return on their investment.
A few additional key perspectives:
“The goal of coaching is the goal of good management: to make the most of an organization’s valuable resources.” – January, 2008, Harvard Business Review
Once seen as the last step for an executive about to fall off the ladder, leadership coaches now help smooth a promotion, teach outsiders about their new culture, and tune up talent.” – CNN Money
“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
“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
In a 2004 survey by Right Management consultants, 86 percent of companies said they used coaching to sharpen skills of individuals who have been identified as future organizational leaders.” – Excerpt from “What An Executive Coach Can Do For You” – Harvard Business School.
“What’s really driving the boom in coaching, is this: as we move from 30 miles an hour to 70 to 120 to 180……as we go from driving straight down the road to making right turns and left turns to abandoning cars and getting motorcycles…the whole game changes, and a lot of people are trying to keep up, learn how not to fall.” ― John Kotter, Professor of Leadership, Harvard Business School
“In one study, executive coaching at Booz Allen Hamilton returned $7.90 for every $1 the firm spent on coaching.” ― MetrixGlobal LLC
“Many of the World’s most admired corporations, from GE to Goldman Sachs, invest in coaching. Annual spending on coaching in the US is estimated at roughly $1 Billion Dollars.” ― Harvard Business Review
“Coaching now is part of the standard leadership development training for elite executives and talented up-and-comers at IBM, J.P. Morgan, Chase, and Hewlett Packard. These companies are discreetly giving their best prospects what star athletes have long had: a trusted advisor to help reach their goals.” – 2008, CNN.com
There is a proven direct correlation between individuals seeking alignment between themselves, their specific position, and the company for which they work and the overall return to the company. Individual and team coaching can strengthen, redirect or enhance employee performance relative to the company’s overall goals. In addition, our consulting services drive a team and organization toward great alignment and will help to release the power of everyone moving in the same direction. Finally, the benefits of objectivity through a fresh set of lenses can bring disparate perspectives to a common and overall beneficial conclusion.
Additional ROI Articles you may want to read:
Again, each client is different and unique, and each will measure ROI differently. Often, the ROI from coaching will not manifest fully for several months or even years. However, these studies will attest that the return is most certainly there.
- Forbes: http://rapidevolutionllc.com/leadership/forbes-com-reports-on-huge-rois-for-executive-coaching
- Blessing White: http://blessingwhite.com/article/the-roi-of-executive-coaching-2/
- 2009 HBR Research Report – What Can Coaches do for You?
- 2009 HBR Research Report – The Realities of Executive Coaching
- 2008 American Management Association – Coaching: A Global Study of Successful Practices
- 2006 International Coach Federation – Building the Business Case for Coaching