We are as unsure as everyone else about how badly the economy could get in the coming months. The truth is that many companies are already taking steps to conserve funds and prepare for a possible recession. We've talked to people whose budgets for travel and training have been cut and others who are making overall budget cuts. These are traditional ways that companies cut expenses as they prep...
The business case for executive coaching
Are you working in a company or law firm where executive coaches help leaders develop their leadership skills? Does your company or law firm provide executive training and leadership development for high-potential, high-performing leaders?
One of the most powerful questions you can ask is “Does providing executive coaching for company leaders have a direct effect on company results?” Emotionally Intelligent and Socially Intelligent Organizations provide executive training and leadership development for authentic leaders at all levels of the organization.
Roughly 25 to 40 percent of Fortune 500 companies use executive coaches, according to the Hay Group, an international human resources consultancy. According to a survey conducted by Manchester, Inc., a career management consulting firm in Jacksonville, Florida; About six in ten organizations currently offer coaching or other development advice to their managers and executives. Another 20 percent of companies said they plan to offer coaching within the next year.
Although once used as an intervention with troubled staff, coaching is now part of standard leadership development training for executives at companies like IBM, Motorola, JP Morgan Chase, Hewlett-Packard, and many others. Brokerage firms and other sales-based organizations, such as insurance companies, use coaches to reinforce people’s performance in high-pressure, stressful jobs.
The ICF Global Coaching ROI Study
The 2009 International Coach Federation (ICF) Global Coaching Client Study reported that the average ROI of coaching is 700%. The results of the study are quite dramatic and provide much-needed metrics for this popular leadership development strategy.
The International Federation of Coaches conducted a global qualitative and quantitative client survey and interview research project between May and December 2008. The full research report was made publicly available on June 11, 2009. Here highlights related to the return on investment of training are reported. . This is a crucial research topic: what do coaching clients say is the value of coaching?
The design phase of the research consisted of three components: First, fourteen in-depth interviews were conducted with an international sample of coaches to help design the questions to be used in the qualitative and quantitative study. Second, the qualitative research phase consisted of five focus groups with the participation of a total of 41 clients. The focus groups allowed for an in-depth exploration of qualitative issues. Third, the quantitative research component consisted of 2,165 coaching clients from 64 countries who participated in a 20-minute online survey.
What do clients say that motivates them to start training? Clients cited career opportunities and business management as the most important reasons for seeking coaching services.
Both coaches and consumers of training services are interested in studies of return on investment (ROI) in training. An oft-cited study on the return on investment of executive coaching, Coaching for Increased Profitability: Delivering and Demonstrating Tangible Bottom Line Results by Merrill C. Anderson, Ph.D. MetrixGlobal (2003) had reported a coaching ROI of 788%.
In an apparent confirmation of that finding, the ICF Global Coaching Client Study Executive Summary (April 2009) reports: “The vast majority (86%) of those who were able to provide figures to calculate company ROI indicated that their business had at least made their investment In fact, nearly a fifth (19%) reported an ROI of at least 50 (5,000%) times the initial investment, while another 28% saw an ROI of 10-49 times the investment The median business return is 700%, indicating that typically a business can expect a return of seven times the initial investment.”
Source: ICF Global Coaching Client Study, Executive Summary, April 2009, in consultation with PricewaterhouseCoopers LLP and Association Resource Center Inc.
Working with an experienced executive coach trained in emotional intelligence and incorporating leadership assessments like the Bar-On EQ-i and CPI 260 can help company leaders improve their leadership ability. You can become a leader who models emotional intelligence and social intelligence, inspiring people to fully commit to the vision and mission of your company or law firm.