Does My Business Need a Focal Point Business Coach?
March 3, 2000 by admin
Filed under Does My Business Need a Coach?
Why Executive Business coaching for Me and/or my Company?
A Return on Investment for Business Coaching: The Facts!
Business Coaching is a relatively new industry. It has become very popular because it works. A Manchester study of 100 executives from Fortune1000 companies found the benefits to companies that provided 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%)
- 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%)
According to an International Coach Federation survey, clients typically seek help with time management (81%); career guidance (74%) and business advice (74%). The benefits extend to self-awareness (68%); smarter goal setting (62%); a more balanced life (62%); reduced stress levels (57%); and more self-confidence (52%).
Other studies reported:
- MetrixGlobal, LLC a Fortune 500 telecommunications firm reported a ROI of 529% based on survey of 43 leadership development participants. They also found the financial benefits from increased retention raised the overall ROI to 788%.
- The Xerox Corporation showed that in the absence of follow-up coaching 87% of the skills change brought about by the training program was lost. However good skills’ training is in the classroom, most of its effectiveness is lost without follow-up coaching. For example: Most sales people try out the new skills for a few calls, find that they feel awkward and the new method isn’t bringing instant results, so they go back to their old ways.
- “Coaching is the only cost-effective way to reinforce new behaviors and skills until a learner is through the dangerous results dip. Once through the dip, when the new skills bring results, they will become self-reinforcing.” — Training and Development Journal.
Executive Coaching Industry Comments
Don’t take our word for it. Read what others have to say about the power of executive coaching.
For years, CEOs of some of the most successful and largest companies have relied on executive coaches. Henry McKinnell, CEO of Pfizer, Meg Whitman, CEO of eBay, and David Pottruck, CEO of Charles Schwab & Co., are just a few who rely on a “trusted adviser. ~ The Business Journal
Executive Coaches are everywhere these days. Companies hire them to shore up executives or, in some cases, to ship them out. Division heads hire them as change agents. Workers at all levels of the corporate ladder are enlisting coaches for guidance on how to improve their performance, boost their profits, and make better decisions about everything from personnel to strategy. ~ TIME Business News
Xerox Corporation carried out several studies on coaching. They determined that in the absence of follow-up coaching to their training classes, 87% of the skills change brought about by the program was lost. That’s 87 cents in the skills dollar. However good your skills training in the classroom, unless it’s followed up on the job, most of its effectiveness is lost without follow-up coaching. ~ Business Wire
A study featured in Public Personnel Management Journal reports that managers (31) that underwent a managerial training program showed an increased productivity of 22.4%. However, a second group was provided coaching following the training process and their productivity increased by 88%. Research does demonstrate that one-on-one executive coaching is of value. ~ F. Turner, Ph.D. CEO Refresher
Booz, Allen & Hamilton’s Ed Cohen, Director for Professional Excellence says; “We hire outside certified coaches to help our executives fill in minor gaps that may not have shown up earlier in the person’s career because those skills may not have been the ones that were needed to help them rise to their present level. ~ The Edge
Employees at Nortel Networks estimate that coaching earned the company a 529 percent “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. ~ Psychology Today
“Managers describe an average return of $100,000–about six times what the coaching costs their companies.” –FORTUNE Magazine
Results of a coaching poll of mostly FORTUNE 1000 companies: The respondents were executives from large companies who had participated in coaching programs to improve their mental capacities. “The survey demonstrated that the participants valued the coaching at 6X the cost paid by their company. So, an $18,000 program investment generated value at approximately $108,000. -Fortune Magazine
