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Five Practical Approaches for Implementing World-Class Coaching

1. Sponsorship for coaching must be sustained and unwavering

2. The strategic needs of the business must be articulated and shared

3. Clear objectives for the initiative must be set that link to the strategic needs

4. The outcomes of the coaching initiative must be evaluated to determine if the initiative delivered on its value promise

5. The coaching initiative must be integrated with other HR and development processes
- Cylient
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The Business Case for Executive Coaching

Just because executives are at the top doesn’t mean they’ve reached their highest potential. Executive Coaching is a vehicle that expands a leader’s unrealized aptitude for their personal benefit and for the organization’s gain. And there’s plenty of current independent research to substantiate these results.

ROI on Executive Coaching

A 2004 study on the impact of Leadership Coaching determined the ROI was 689% (factoring in the fully loaded cost of the coaching including opportunity cost associated with the time leaders spent being coached).

  • The main competencies that coaching assisted leaders to develop included:
    Leadership behavior (82%)
    Building teams (41%)
    Developing staff (36%)

  • The leaders were very satisfied with their coaching experiences:
    95% are doing things differently as a result of coaching, and
    95% would recommend coaching to other company staff.

A study on the impact of coaching in a Fortune 500 firm found an ROI of five to seven times the initial investment in an executive coaching program.

  • Coaching produced a 529% return on investment and significant intangible benefits to the business.
  • Including the financial benefits from employee retention boosted ROI to 788%.

A study of 100 executives coached for 6-12 months documented an ROI of 570% on the initial investment in the coaching program.

  • Tangible impacts on business included increases in productivity, quality, organizational strength, and customer service.
  • Executives and their organizations also obtained intangible benefits including improved relationships with direct reports, peers, and stakeholders, as well as improved teamwork, increased job satisfaction, and reduced conflict.

Coaching helps organizations get the most from other tools

A study on executive coaching as a tool for transferring training noted that training with managers increased manager productivity by 22%, and adding a one-to-one (8-week) coaching intervention after the training pushed productivity to 88%.

Personal Benefits

Studies have found that coaching reduced executives’ stress an average of 18% after 8-10 coaching conversations, while some participants experienced a reduction in stress level as high as 47%. The primary stress relieving competencies that coaching assisted leaders to develop included:

  • Tools and perspectives to better tackle stress (74%)
  • Better prioritizing of time (72%)
  • Improved ability to make decisions aligned with what is truly important to them (79%)
  • Deeper understanding of the thoughts and actions that stand in their way (81%).
  • 85% said that the coaching made a significant impact on them and has helped them make various necessary changes in their day-to-day lives (85%).

Numerous studies have found that the process of coaching benefits the individual and organization by increasing the coachee’s confidence, developing strategies for coping with work demands, and enhancing personal performance.

Bottom Line

Executive Coaching has emerged in recent years as a popular way to develop leaders because it makes sense for organizations focused on the bottom line.