Does executive coaching really provide a return on investment?

Prospective clients often ask for assistance justifying that executive coaching will provide a return. Here is a stock answer you can give to your clients or internal sponsors when you are asked:

First, the International Coach Federation, the leading coach professional organization, has conducted and reviewed studies about coaching in organization. They found an average return of $4.30 and $7.90 for every $1 invested. They also found that training combined with coaching increases productivity by four times more than training alone (which makes sense given that coaching works over time to reinforce the work of training, and also given the research that almost 85% of most training content is lost after two weeks). Fast Company Magazine did a survey and found that 92% of leaders being coached said that they plan to use a coach again.

Companies that provide coaching report benefits through improvements in:
– Productivity
– Quality
– Organizational strength
– Customer service and reduced customer complaints
– Employee retention, especially among those receiving coaching
– Cost reduction and bottom line profitability

The executives and leaders receiving coaching report these benefits:
– Improved working relationships with direct reports
– Improved working relationships with immediate supervisors
– Better teamwork
– Improved working relationships with peers
– Greater job satisfaction
– Reduction in conflicts
– Improved organizational commitment
– Stronger relationships with external customers

[Here is what I insert when I answer, and you can insert something similar as your coaching practice evolves. The Center for Executive Coaching gives you the tools you need to get similar results. You can also finesse this answer by referring to yourself and your coaching colleagues….In my own work I can report numerous case studies showing results, including:
– Increased ability to close sales (consulting firm – $11 million increase);
– Improvements in revenue, costs, and cash flow (various entrepreneurial ventures, health systems, financial services);
– Acceleration of change initiatives (healthcare);
– Improved productivity and quality (healthcare);
– Improved employee engagement scores (healthcare, technology, professional services);
– Ability to move into the next leadership role (financial services, healthcare, consulting, technology);
– Better communication among team members and improved team performance (various);
– Significant improvements in productivity and use of time (financial services, technology, healthcare, education, professional services); and
– Improved performance by high-potential managers (internal coaching groups trained by us).]

We also utilize a reliable assessment tool that measures leadership competencies before and after coaching. It provides proof of improvements in specific skills, if this would be something of value to share your organization.

It is also worth noting that there are many intangible benefits that clients report, including: reduced stress, improved satisfaction and fulfillment, improved working relationships, better alignment and communication with their managers, and clearer understanding of expectations throughout the organization.

However, the best way to justify the return on investment for executive coaching is by identifying specific challenges that your organization wishes to address with coaching. Then we can set specific goals and ways to measure progress throughout the coaching process. That way, measurement and results are baked in and you are more likely to achieve the return on investment you seek.
If you would like to become an executive coach, you need to be ready to document results for clients and prospective clients. There is no better program than the Center for Executive Coaching to help you do that. Please review our programs on our website and contact us at anytime to discuss your goals.

Here is what one graduate has to say about just one of our methods/processes:

“Your strategic planning module is brilliant in its simplicity. I have adopted it into my practice and have successfully facilitated 3 major retreats this year alone, with another scheduled for later this fall. What I and, more importantly, my clients value is that it is laser sharp and direct, cuts through the fluff, and creates a plan that is ready to be implemented.  It has also added about 15% to my bottom line this year.” – Jeff Miller, Executive Coach

We have more resources for you! Whether you are a Seasoned Coach or looking to become a Certified Executive Coach. The Center for Executive Coaching has you covered.

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