Research & the ROI of Leadership Coaching!

The goal of coaching is the goal of good management: that is – to make the most of an organization’s valuable resources.”          — Harvard Business Review

“Coaching is unlocking a person’s potential to maximize their own performance.  It is helping them to learn rather than teaching them.  Clients say coaching brings out their best by helping them focus, break down tasks, and clarify their issues“.                 – Fortune Magazine

Research shows that hiring a coach can lead to improved work relationships, increased productivity and customer service, and increased employee retention.   Surely, this compilation of research will be updated as more becomes available!

  • Research shows that hiring a coach can lead to improved work relationships, increased productivity and customer service, and increased employee retention.
  • A study commissioned by a professional services firm, and performed by MatrixGlobal showed that the ROI on coaching was 6.8x the initial investment. (The Business Impact of Leadership Coaching at a Professional Services Firm, Merrill C. Anderson, PhD, 2006).
  • Including one-on-one coaching with leadership training resulted in a near quadrupling of productivity results (from 22.4% to 88% when combined) according to an Olivero, Bane & Kopermann study (1997) of a public sector municipal agency.
  •  A recent study cited in the prestigious Public Personnel Management Journal found a typical management training program increased the manager’s productivity by 22%, but when combined with 8-weeks of intensive Coaching, the manager’s productivity exploded to more than 85%.
  • Improves leadership effectiveness 50-60%, as reported by direct reports, peers and managers (Thach, Leadership and Development Journal, April 2002).
  • According to a study of senior level executives at Fortune 1000 companies who received developmental coaching, the average return from the programs was nearly 5.7 times the initial investment. (Maximizing the Impact of Executive Coaching, The Manchester Review, Volume 6, Number 1, Joy McGovern, et.al., 2001).
  •  Employees at Nortel Networks estimate that their coaching programs earned the company a 5.2x return on investment and significant intangible benefits to the business, according to calculations prepared by Merrill C. Anderson, a professor of clinical education at Drake University. Including the financial benefits from employee retention boosted the returns to 7.8x the initial investment. (Coaching the Coaches, Psychology Today, 2004, and Case Study on the Return on Investment of Executive Coaching, Merrill C. Anderson, PhD, 2001).
  • A Florida-based coaching firm, Manchester Inc., investments in coaching were found to yield an average return on investment (ROI) of almost 6X the cost of the coaching (Jan. 2001, HR.com).
  • 85% of managers value coaching as a way to enhance team morale
    (Chartered Management Institute and Campaign for Learning: ‘Coaching at
    Work’ research, 2002).
  • Creates a 60% improvement in working relations, teamwork, job satisfaction and conflict resolution (Manchester Group Inc, Jan 2001).
  • Three stock portfolios comprised only of companies that spend aggressively on employee development each outperformed the S&P 500 by 17-35% during 2003. (How’s Your Return on People? Harvard Business Review, Laurie Bassi and Daniel McMurrer, 2004).
  • Including one-on-one coaching with leadership training resulted in a near quadrupling of productivity results (from 22.4% to 88% when combined) according to an Olivero, Bane & Kopermann study (1997) of a public sector municipal agency.
  •  The objectivity that a coach brings to a developmental opportunity is helpful to mangers seeking to make difficult changes in attitudes, work habits, perspectives and interpersonal relationships (McCauley & Hugh-James; Young & Dixon, 1996).
  • According to Personal Decisions International, a Minneapolis-based human resources consulting firm, 70% of the top 1,000 firms worldwide use some form of executive coaching (Source: HR.com, author Ann Vincola, President of a quality of life issues consulting firm, 2000).
  • Companies that have used professional coaching for business reasons have seen a median return on their investment of 7 times their initial investment, according to a study commissioned by ICF, and conducted by Pricewaterhouse Coopers and Association Resource Center Inc. (ICF Global Coaching Client Study, 2009).
  • A Florida-based study of organizations and coaching (Manchester, Inc. 2001), found that 6 in 10 organizations currently offer coaching or other developmental counseling to their managers and executives while another 20% plan to offer coaching in the next year.

Copyright Denise Scotti-Smith 2011.  All Rights Reserved.

 


About Mission Accomplished Consulting LLC

Denise Scotti-Smith PHR, SHRM-CP is the Founder and President of Mission Accomplished Consulting, LLC. As a Certified Executive & Leadership Coach, she provides coaching, risk management services, consulting, outsourcing and on-site management training. With a Master's in Organizational & Human Resource Management and more than 20 years of leadership experience, she specializes in risk management, organizational development, strategic planning, leadership & employee development, change management, operations management, employee relations, and HR law. For more information, go to http://www.missionllc.org.
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7 Responses to Research & the ROI of Leadership Coaching!

  1. Bobbie-Lynn Scotto says:

    You offer a very insightful take on the benefits of coaching! These facts can be so helpful to any type of business looking to maximize its productivity! Thank you for your input!

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