ROI of Executive Coaching
According to a recent Fortune magazine which reported the results of a poll of executives and upper level managers who had six to twelve months of coaching with a Masters or Doctoral level executive coach:
The executives were asked to give a conservative estimate of the monetary payoff from the coaching you received. The survey demonstrated that the recipients valued the executive coaching at six times the cost that their company paid for the service. In other words, a nine-month, $18,000 executive coaching program investment for a VP, was given a rating of being worth six times that —$108,000.
Sixty percent of the executives in the study were ages 40-49, half held positions of Vice President or higher, and a third earned more than $200,000 per year. Seventy-seven percent of the executives reported improved working relationships with their direct reports, 71% with supervisors, and 63% with peers. The executives also cited a marked increase in job satisfaction (61%) and in organizational commitment (44%).
Summary: Return on investment of Executive Coaching is 570%.
What do coaches do to bring such dramatic value to you and your organization? You and your coach first forge a partnership built around your most important goals and the organization’s needs. Then your coach helps you identify your strengths and potential blind spots through interviews and selected assessment tools. Your coach helps you to leverage your strengths, enhance skills, and recognize your developmental needs in areas of strategic importance to you and your organization.