Return on Investment Can Be Almost 800%
DENVER, CO, September 20, 2023 /24-7PressRelease/ -- Is Executive Coaching worth the price you pay for it? The fact is, if the stock market produced the same kind of ROI that executive coaching does, we'd be in the greatest bull market in financial history.
The website of American University cited a study conducted by Metrix Global which found that executive coaching has a 788% return on investment (ROI) "based on factors including increases in productivity and employee retention." The coaching itself produced a 529% ROI ($5 for every $1 that was spent on coaching). When the financial benefits of employee retention were included, the figure rose to 788% - a return of almost 8 to 1.
What's more, according to The International Coaching Federation (ICF), companies that engage in an executive coaching program will see increases, on average, of:
• 70% in Individual Performance (goal attainment, clearer communication).
• 50% in Team Performance (improved collaboration, enhanced work performance).
• 48% in Organizational Performance (increase in revenue and employee retention).
Despite the results that can be achieved, they are by no means guaranteed. An article in Fast Company put it quite succinctly: "Coaching done the right way simply works. There is an important caveat, however: A good coach needs to be trained, possess real-life experience, and both the coach and the client need to have a clear understanding of how to maximize the process."
Numerous factors contribute to the ultimate success of a coaching engagement and the realization of a significant ROI, according to Karen Brown, CEO of Exponential Results, a Denver-based executive coaching firm that uses neuroscience to elevate leadership effectiveness:
1. People Have to Want Coaching
You can offer your leaders a solid coaching program with a proven coach, but if they aren't interested in improving themselves, it's unlikely they are going to derive much value from the program. The optimal approach is to offer leadership development coaching on an opt-in basis for leaders who raise their hand and express a high level of interest.
2. Separate the Contenders from the Pretenders
Some coaches capitalize on the lack of a certification requirement by simply calling themselves a coach and using their professional experience or even in leadership to start working with clients. While some of these coaches may achieve a degree of effectiveness, it's better to hire someone who has ICF certification or has at least received some training in the field.
3. Self-Awareness - and Willingness to Change – Are Non-Negotiable
A leader who isn't self-aware is already at a huge disadvantage. This quality helps a person understand their own motives, goals, approach to work, and attitude towards co-workers. It is a quality that can be taught but only with receptivity to explore and improve. The real test is, are they willing to embrace self-awareness and honestly examine their blind spots?
4. The Coaching Ship Has Already Sailed
For some people, no amount of coaching will improve their attitude, performance, or ability to lead. Instead of putting this person on a performance improvement plan, have an open conversation with them. Offer to share what you see and ask them the same. Unless there is a match, part ways; it will be better for everyone, including the rest of the team.
5. Engage the Boss – to a Point
Unless it's a tri-party coaching relationship, the boss should only be involved at a supportive level; the leader shares what they are working on but doesn't actually coach the boss on how to make changes. Those suggestions will only be effective for themselves, not the leader. Also, the boss should offer recognition for changes made - in the leader's preferred format.
6. Lack of a Systematized Approach
Some coaches just show up for sessions and let the leader decide what to work on. As well as completely guide the work. Instead, the coach/coaching company should establish specific goals and objectives, target due dates for accomplishment, and create metrics to measure progress and achievement. When coaching efforts don't work, this is often the reason.
7. Teach Leaders How to Coach Themselves
When a behavioral-change methodology is used, the coach is helping the leader to change behavioral patterns that underpin historical results. Once changed to a new pattern that creates elevated results, there is no backsliding; the change is permanent. Also, the coach is teaching the leader how to identify and change their future patterns.
So, is executive coaching worth it? Based on the measurable results that can be achieved, along with the myriad intangible benefits that are gained in the process, the answer is a resounding "yes."
ABOUT EXPONENTIAL RESULTS
Founded in 2012 as Velocity Leadership Consulting, Exponential Results is a minority- and woman-owned business headquartered in Denver, CO. Exponential Results helps senior leaders, executives, divisional teams, and business owners maximize their potential. Founded on the neuroscientific principles of how our minds work, the company's Power Pathways methodology serves as a catalyst for rapid, lasting results. What's more, the results achieved are permanent, because old patterns and habits are transformed. Each of the company's coaches has logged over 20,000 coaching hours and have had careers themselves as corporate senior executives. For more information, visit https://yourexponentialresults.com/. To visit their LinkedIn page, go to https://www.linkedin.com/in/karenbrown/.
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