COACHING

-Business Opportunity -
RETURN ON INVESTMENT
COACHING

"Many of the world's most admired corporations, from GE to Goldman Sachs,

invest in coaching. Annual spending on coaching in the U.S. is estimated at
roughly $1 billion."

Harvard Business Review

  

“The Bottom Line: Coaching produced a 529% return on investment and

significant intangible benefits to the business. The study provided powerful new
insights into how to maximize the business impact from executive coaching.”

MetrixGlobal, LLC
 COACHING ROI

A study of companies that did business coaching shows that they had
an average ROI of 5.7 times compared to the initial investment:
a return> $ 100,000

Increased productivity (53% of managers support this aspect)

 Organizational power development 48%
 Development of communication between employees (more than 70%)  
Improving the quality of management processes (48%)
 Efficiency of customer service (39%)
 Retention of directors who have done coaching (32%)  
Harmonization of teamwork (67%)
 Conflict reduction (52%)
 Cost reductions (23%)
86% rated coaching as very effective;
95% are doing things differently as a result of coaching,

Source: The Manchester Review, Volume 6, Number 1, Joy McGovern

COACHING ROI
INTERNATIONAL APROACH

• “Being the industry with 2nd highest development rate in

the world, coaching deserved better than just the
constant questioning of its efficiency.
• How can you measure, after all, the efficiency of a
human conversation? Who benefits the most? The client?
The coach? The organization? Client's family?
• I love statistics and figures in general and sometimes is a
good idea to use the intuition to decide whether or not
something is REAL and GOOD or not:
 • Executive coaching is the managerial training and
development method that contributes the most to
sustained observable behavior change in executives.

• Ordinary training typically increased productivity by 22%, while training

combined with life coaching increased productivity by 88%

• Coaching achieves: evidence of learning being put into practice (71%) and
readily-quantifiable and positive results, often demonstrated on the
company's "bottom-line" over the long term (62%)
 Return
Return on
on Investment
Investment

The
The results
results –
– close
close to
to 700
700 percent:
percent:

• Improved teamwork was cited by 58% of the leaders as having

been impacted.

• Team member satisfaction was identified by 54% of the

leaders as being impacted by what they did differently as a
result of their coaching experiences.

• Increased productivity was cited by 31% of the leaders as a

business outcome of their coaching
 COACHING ROI
Global aproach

Association For Coaching ( > 600 companies)

• The respondents of the study argue that in 58% of the coaching programs there are increases
in the skills of the managers, and in 53% of the programs the motivation in the workplace
increases.

•  The coaches claim that in 48% of the programs the personal-professional life balance and the
motivation in the workplace increases by 42%.

• 48% of coaching clients claim that the existence of a quantifiable measurement of coaching
ROI is important

• In 72% of cases, clients use coaching to develop the performance of the company's employees
 Study case
A. Executive Team Coaching
Program 
B. Measurable Criteria:

duration: 10 months, 10 sessions

12 participants from central management
+ heads of production units
General profile: experienced senior
managers (more than 10 years in
management positions),
3 different nationalities,
high income (more than 100k euros per
year)
The average impact of the decisions made
by the management board: 1 million
euros per meeting

Overall efficiency of sessions > 78%

Time spent making a decision > 66%
Number of decisions made in one meeting >
54%
Quality of decisions taken > 44%
Information distribution and sharing > 88%

The risks assumed in new projects, both
strategic and tactical <33%
The degree of delegation in terms of
projects, tasks > 54%
Group benefits and managerial skills > 67%

Stress and pressure level <54%

Estimated ROI (after 2 months): 750%.

 A WORLD OF COACHING

· Business coaching is already an industry that has crossed the threshold

billions:

- 75% of companies use coaching worldwide;

- 88% of Western European companies use it constantly.  

- The declared ROI: 100% - 600% and the beneficiaries are both managers
and employees.
- The qualitative training combined with coaching raises productivity by as
much as 86%, while training alone would increase 23% on average.

- Western managers call on the services of a professional coach with whom

they develop, over time, a stable partnership relationship.
COACHING ROI
The current state of executive coaching effectiveness.

Both the meta-analysis of the empirical research and the review of the
retrospective studies revealed an overall positive effect of executive
coaching:

(1)Overall, executives and companies are favorable toward coaching.

(2) Coaching works.
Specifically, the meta-analysis demonstrated that executives made a
moderate-to-large gain in skill and/or performance.
(3) Individuals who experience the coaching (self-ratings) report stronger
effects than do others (others’ ratings).
(4) Coaching impacts a wide array of individual and organizational
outcomes, such as individual skills and behaviors, team performance,
productivity, employee job satisfaction, and some measures of business
deliverables.
(5) Some research suggests that coaching has the most positive impact
when tied directly to coaching objectives.

Source:
“Coaching: An International Journal of Theory, Research and Practice”-K.P. De Meuse, G. Dai, and R.J. Lee
 Factors moderating the effectiveness of coaching

The effectivness of executive coaching is probably related to its overall

coaching purpose.

The objective of coaching when addressing a ‘derailing’ executive is to

eliminate or modify a behavioral pattern. In contrast, the purpose of
developmental coaching is to strengthen or expand a behavioral pattern.
The two types of coaching require different levels of effort from
executives. Executives may be more motivated toward one type of
coaching than the other.
Coaching is a helping relationship, which is formed between an
executive who has managerial authority and responsibility in an
organization and a coach.
The coach has no formal authority over the executive.
 Why COACHING?
In a study conducted on more than 4000 corporations regarding the
involvement of coaching,
the results were as follows: Improved individual performance
Results & profit
Improving customer relations and increasing the quality of services
Developing people for the next level, including increasing self-
confidence, skills and self-motivation, achieving goals,
improving professional relationships and retention and loyalty.

The results of the coaching are directly proportional to the confidence

offered in the proposed method and objectives

Source: International Coach Federation and Linkage, Inc, "Analysis of the 1999 Survey on Coaching in
Corporate America", November 22, 1999
Criteria used to evaluate coaching

• First, is the ultimate criterion of coaching: ROI? Second, can

there be a single outcome criterion for all coaching
interventions?
• Executive coaching has been used to enhance skills and
improve performance in a wide range of organizational arenas.
• It can have tangible and intangible effects on organizational
effectiveness to varying degrees. McDermott, Levenson, and
Newton (2007) found that coaching has a larger positive
impact: on improving leadership behaviors and individual
employees’ performance
 COACHING ROI
The Benefits of Coaching

The ability of professional coaching to improve the relationships between managers and
employees and their level of involvement and motivation (70%).

Through coaching, measurable, noticeable effects are obtained in terms of performance at

both the individual and organizational levels (77%).

The considerable level of confidence in the coaching ability to support the development of
talents in the organization (75%).

Coaching deeply supports an organizational culture that is oriented towards development

and learning.  

In companies with private capital, the confirmations have accumulated rather regarding the
effects at the individual level, whether it is about performances (74%)

or about the motivation and involvement of the employees (71%)

Sources:
 Maximizing the Impact of Executive Coaching - The Manchester Review, Volume
6, Number 1, Joy McGovern, et.al., 2001.

 http://www.cariereonline.ro/articol/coaching07-cine-investeste-excelenta;
 International Coach Federation and Linkage, Inc, "Analysis of the 1999
Survey on Coaching in Corporate America", November 22, 1999

www.linkageinc.com/thinking/linkageleader/Documents/Merrill_C_Ander
son_What_ROI_
Studies_of_Executive_Coaching_Tell_Us_1004.pdf
Executive Coaching as a Transfer of Training Tool 1997

• Evaluating the effectiveness of executive coaching- beyond ROI_2009

• Maximizing the impact of executive coaching_2001

• Measuring the ROI on coaching_summary

"The goal of coaching is the goal of good
management: to make the most of an
organization’s valuable resources.”

Thank you