The evidence is clear that relevant and focused training, combined with executive coaching produces significant benefits in improved productivity, client relationships, executive retention, and profitability. However, not every executive coach can produce the results we get. Our clients verify the results of our executive coaching process
Research conducted by MetrixGlobal , indicates that the ROI from executive coaching provided Booz Allen Hamilton was $7.90 return for every $1 spent.
A U Penn study of 3000 companies shows that an investment in people pays off: a 10% investment in people produces an 8.5% productivity increase vs. a 3.9% increase for a 10% capital investment.
Training and Development Journal reports that executive coaching is the only cost-effective way to reinforce new behaviors and skills until a learner is through the post-training "results dip." And a 2001 study indicates that executive coaching yields ROI of almost 6 times its investment. The study included 100 executives, mostly from Fortune 1000 companies, who received coaching from Manchester. Manchester Inc. is a part of Prolianz, the professional services division of Modis Professional Services Inc. (NYSE:MPS) of Jacksonville, Florida.
Improvements in productivity, quality, organizational strength, customer service, and shareholder value were also realized, as were fewer customer complaints.
The coaching programs that executives participated in were a mix of both change-oriented coaching -- which is aimed at changing certain behaviors or skills -- and growth-oriented coaching -- which is aimed at sharpening performance. The coaching programs typically lasted from six months to one year.
Among the results of the study:
The coaching programs delivered an average return on investment of 5.7 times the initial investment in a typical executive coaching assignment -- or a return of more than $100,000 -- according to executives who estimated the monetary value of the results achieved through coaching.
Among the benefits to companies providing executive coaching to executives were improvements in:
- Productivity (reported by 53% of executives)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Reducing customer complaints (34%)
- Retaining executives who received coaching (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
Among the benefits to executives who received executive coaching were improved:
- Working relationships with direct reports (reported by 77% of executives)
- Working relationships with immediate supervisors (71%)
- Teamwork (67%)
- Working relationships with peers(63%)
- Job satisfaction (61%)
- Conflict reduction (52%)
- Organizational commitment (44%)
- Working relationships with clients (37%)