The benefits of coaching are not always easy to explain.
I’m often asked about the benefits of coaching, specifically from prospective clients who are new to it.
And, although there’s some research available showing a link between coaching and improved performance, I find most people form a view based on the stories they’ve heard as opposed to any hard facts.
These tales will often come from friends, colleagues or from their manager who has felt the benefits from his or her coaching.
So, I was pleased to find a piece of research from Manchester Inc.
Their survey based on 100 executives, mostly from Fortune 100 companies, concludes that the investment in coaching executives returned an average of almost six times the cost.
Now, that’s some rate of return!
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
The main benefits of coaching for the organisation were:
- delivering an average ROI of 5.7 times the initial investment
- improving executive productivity (reported by 53% of executives)
- retaining executives who received coaching (32%)
Whilst the benefits of coaching to the executive were:
- direct report and supervisor relationship improvements (greater than 70%)
- teamwork (67%)
- working relationships with peers (63%)
This piece of research certainly supports the widely held belief that coaching works!
In one study, executive coaching at Booz Allen Hamilton returned $7.90 for every $1 the firm spent on coaching.MetrixGlobal LLC
Of course, most executives don’t read the latest coaching research. It may simply be enough for them to know that the most successful companies in the world provide their employees with coaching.
In reality, the impact of coaching is difficult to gauge when measures of success are not agreed upfront. So it’s important to consider, before even engaging an executive coach, what your objectives are and how you will recognise progress and success.