ROI of Executive Coaching
Are you working in a company or law firm where leaders are engaged in an executive coaching program? How do leaders in your company or law firm measure the cost effectiveness of executive coaching programs?
One of the most powerful questions one can ask is “How does our company leadership measure the return on investment of executive coaching programs?” Emotionally intelligent and socially intelligent leaders align executive coaching programs with the company strategy.
Maximizing Resources and Coaching
A coaching program that is carefully conceived as a part of the overall organizational strategy will be cost effective. The cost of coaching can be measured against other development options such as seminars, which might involve multiple days and travel expenses. Even so, training and workshop lessons are retained more effectively with the help of a coach. When a situation calls for coaching, the most expensive coach is no coach.
One return-on-investment study on executives from Fortune 1000 companies revealed an average of almost six times the cost of coaching programs, with improvements in productivity, quality, organizational strength, customer service, and shareholder value. They received fewer customer complaints, and were more likely to retain executives who had been coached.
In another study, a coaching program produced a 529% return on investment and significant intangible benefits to the business. Including the financial benefits from employee retention boosted the overall ROI to 788%.
Skilled executive coaches can help leaders can explore their strengths within the context of the organization, work more effectively with their teams, develop leadership skills, inspire others and be more focused and effective. The masterful coach helps link the leader’s personal goals with the business strategy of the organization.
When Coaching Goes Wrong…
To be optimally effective, the coaching program with executives must be well managed and aligned with other organizational goals and processes. Failure to do so is a primary source of problems. Organizations new to coaching may not be aware of the need to manage and oversee this activity. Even so, there are some factors that may arise no matter what. Having a sponsor or program manager can help limit damage and wasted resources.
Working with a seasoned executive coach trained in emotional intelligence and incorporating leadership assessments such as the Bar-On EQ-i and CPI 260 can help you become a leader who matches their personal coaching goals with the business strategy of the organization.
You can become a leader who models emotional intelligence and social intelligence, and who inspires people to become happily engaged and aligned with the vision and mission of your company or law firm.
I am currently accepting new executive coaching and career coaching clients. I work with both individuals and organizations. Call 415-546-1252 or send an inquiry e-mail to mbrusman@workingresources.com
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