The Point: All over America, corporations are spending more than $1 billion a year on executive coaching. For most of these organizations, this is not a last-minute remedial action, but rather a long-term investment in leadership development that pays off in the long run. And pay off it does, with reported ROIs being up to 700% of the initial investment. However, the real return on executive coaching actually goes beyond figures. In this post, we stress on the real return on investment of executive coaching… Enjoy!
A Satisfactory and Enriching Experience
Most executive coaching engagement participants and their sponsoring organizations testify to the high satisfaction rates of executives who undergo such leadership development. For example, out of the 400 executives at Dell Computer Corporation who were offered coaching, 90% reported high satisfaction rates in 2001.
Personal and Team Growth
Executive coaching has also proved to increase organizational improvement, both for the individual leaders receiving coaching as well as their stakeholders. Productivity increases have been as much as 88% as employees see a competent, talented, and an often easy-to-approach person leading their organization. Not to mention, executive coaching also fosters greater teamwork, which paves the way for creative collaborations and more opportunities for delegation.
Quantifiable Benefits for Businesses
Executive coaching makes a positive impact on a business’s bottom-line in more than one way:
- As people are trained and groomed internally, you will not have to worry about hiring talent from outside to lead your organization. This will further enhance your ‘promote from within’cultural strategy.
- When the organization works as a team, there is a decreased chance of conflict developing, which saves precious time and energy for leaders that have to intervene.
- The leader learns to study industry trends while also keeping an open ear for suggestions from within the organization. This coupled with the executive’s knowledge and experience, means that they’re more likely to identify sound business opportunities while avoiding weak prospects.
- Coaching becomes company culture. Once an executive undergoes training and learns to spot their own weaknesses, they can share the same insights with potential candidates for future leadership positions in the organization.
Summary
While the average ROI for executive coaching is somewhere along 340% to 700% of the coaching engagement fee, this post was developed to show how investing in leadership development through executive coaching can help businesses make profits (the only reason why a business exists).
If you’d like more information about Tip of the Spear’s Business Advisory Services, consisting of Centered Executive Coaching, Leadership Development through ‘The Leadership Challenge’ methodology, and Communication Skills Training for Leaders use the CONTACT US page of this website.