The Business Case for Executive Coaching: The ICF Global Coaching ROI Study

The Business Case for Executive Coaching

Do you work in a company or law firm where executive coaches help leaders develop their leadership skills? Does your company or law firm offer executive training and leadership development for high-potential, high-performing leaders?

One of the most powerful questions you can ask is “Does providing executive coaching to company leaders have a direct effect on company results?” Emotionally intelligent and socially intelligent organizations provide executive training and leadership development for authentic leaders at all levels of the organization.

About 25 to 40 percent of Fortune 500 companies use executive coaches, according to Hay Group, an international human resources consultancy. According to a survey conducted by Manchester, Inc., a Jacksonville, Florida career management consulting firm; About six in ten organizations currently offer coaching or other development advice to their managers and executives. Another 20 percent of companies said they plan to offer training in the next year.

Although once used as an intervention with troubled staff, coaching is now part of standard leadership development training for executives at companies such as IBM, Motorola, JP Morgan Chase, Hewlett-Packard, and many others. Brokerage firms and other sales organizations, such as insurance companies, use coaches to reinforce people’s performance in stressful and high-pressure jobs.

Global ROI Study of ICF Coaching

The 2009 International Coach Federation (ICF) Global Coaching Client Study reported that the average ROI of coaching was 700%. The results of the study are quite dramatic and provide much-needed metrics for this popular leadership development strategy.

The International Coach Federation conducted a qualitative and quantitative global client survey and interview research project between May and December 2008. The full research report was made available to the public on June 11, 2009. Aspects More highlights related to the return on investment of coaching are reported here. . This is a crucial research topic: what do coaching clients say is the value of coaching?

The research design phase consisted of three components: First, fourteen in-depth interviews were conducted with an international sample of coaches to assist with the design of the questions to be used in the qualitative and quantitative study. Second, the qualitative research phase consisted of five focus groups with a total of 41 participating clients. The focus groups allowed for an in-depth survey of qualitative issues. Third, the quantitative research component consisted of 2,165 coaching clients from 64 countries who participated in a 20-minute online survey.

What do clients say that motivates them to start training? Clients cited career opportunities and business management as the top reasons for seeking coaching services.

Both coaches and consumers of coaching services are interested in return on investment (ROI) studies on coaching. An Often Cited ROI Study on Executive Coaching, Coaching for Greater Profitability: How to Deliver and Demonstrate Tangible Results in the Bottom Line by Merrill C. Anderson, Ph.D. MetrixGlobal (2003) had reported a coaching ROI of 788%.

In apparent confirmation of that finding, the ICF Global Coaching Client Study Executive Summary (April 2009) reports: “The vast majority (86%) of those who were able to provide figures to calculate the company’s ROI indicated that your company had at least made its investment In fact, nearly a fifth (19%) reported an ROI of at least 50 (5000%) times the initial investment, while another 28% reported an ROI of 10 to 49 times the investment The average return of the company is 700% which indicates that, in general, a company can expect a return seven times higher than the initial investment. “

Source: ICF Global Coaching Client Study, Executive Summary, April 2009, in consultation with PricewaterhouseCoopers LLP and Association Resource Center inc.

Working with an experienced executive coach trained in emotional intelligence and incorporating leadership assessments such as Bar-On EQ-i and CPI 260 can help company leaders improve their leadership skills. You can become a leader who models emotional intelligence and social intelligence, inspiring people to fully commit to the vision and mission of your company or law firm.

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