Why Executive Coaching Works
Executive Coaching Pays For Itself
Ask any corporation using professional executive coaching and they will tell you that it more than pays for itself. Still, as with all business investments, there is a need to demonstrate the economics of the service.
Each company will have its own way of calculating executive coaching’s ROI. To see how some major corporations have assessed the value, the following study by Manchester Incorporated may be helpful.
They interviewed 100 executives, all from Fortune 1000 companies, who had been using executive coaches for at least six months. Half the executives held positions of Vice President or higher. Emphasis was placed on action planning and achieving measurable results linked to identifiable business objectives.
Results of the study: Coaching programs delivered ROI SIX times the cost of the coaching.
Benefits to the companies were improvements in:
- Productivity 53%
- Quality 48%
- Customer Service 39%
- Reduced customer complaints 34%
- Retaining executives 32%
- Cost reductions 23%
- Bottom-line profitability 22%
Benefits to the executives were improved:
- Working relationships with direct reports 77%
- 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%
How Does Executive Coaching Work?
Coaches provide an objective viewpoint to the executive.
Executives - especially at high levels – seldom have anyone to talk with. Often, they are rarely challenged in their viewpoints. An executive coach fills the role as confidential advisor and objective assessor, willing to challenge the executive on his or her behaviors and to provide insightful observations. Only a trusted outsider can provide this type of objectivity.
Coaches apply proven, time-tested tools.
Executive coaches provide their clients with modification techniques that help them alter their behaviors. These modifications help the executive to make changes that were otherwise not possible. Sometimes a management weakness that has been hindering the executive’s performance is eliminated or diminished. Or, a particular skill that the executive wants to improve upon is strengthened. The result is performance that is visibly and, often dramatically, improved.