Return on Investment
Leadership & Executive Coaching — is there a measurable ROI?
Over the years, the concept of executive and leadership coaching has exploded. Yet, we all know, not all coaches (and associated approaches) are created equal.
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™. Below are a few of the answers to how my clients measure ROI through coaching AND what % of ROI in these key areas ALIGNMENT™ delivered. In the 2022 client survey, the clients responded as follows.
The top five areas by which my client base measured ROI were:
- Exceeded expectations of delivered workshop, group/team coaching, or delivered keynote.
- Greater alignment within executive team and to the organizational direction
- Improved employee satisfaction
- Improved team and individual productivity
- Improved teamwork
With these as their key measured areas, 100% experienced well over 175% return on their investment with 50% of those experiencing over 250% return on their investment.
A few additional key perspectives:
“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
“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
“The numbers don't lie: The International Coaching Federation (ICF), in partnership with PwC, estimated global coaching revenue in 2019 to be $2.849 billion—a 21% increase from 2015—and a practitioner growth of 33% from 2015”. - Forbes
“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.” – 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: https://www.forbes.com/sites/forbescoachescouncil/2023/02/24/the-roi-of-executive-coaching-a-comprehensive-guide/?sh=1c147c8a59e1
Rhythm Systems: https://www.rhythmsystems.com/blog/the-roi-of-executive-coaching
Corporate Learning: https://www.corporatelearningnetwork.com/leadership/articles/fyi-on-measuring-the-roi-of-executive-coaching
American University: https://www.american.edu/provost/ogps/executive-education/executive-coaching/roi-of-executive-coaching.cfm
2021 HBR Research Report https://hbr.org/sponsored/2021/03/leaders-need-professional-coaching-now-more-than-ever
Finally, it is important to note that not all coaching engagements have the same outcome, and results may vary depending on factors such as the coach's qualifications and experience, the individual's willingness to change and the specific goals of the coaching. Therefore, when considering investing in coaching, it is important to do thorough research and choose a coach who has a proven track record, and is well-suited to the specific needs of the individual or organization.