.
compliments of
FutureVisionsSM
creating sustainable results in growth and performance
Self- and other-reports are generally qualitative measurements.
Business impact studies, however, place actual dollar values, or
quantitative measures, on the improvements gained from coaching.
Results are stated in ways that show the impact to the bottom line.
Below are some examples from business impact studies.
One study asked coachees for a conservative
estimate of the financial benefits gained from coaching. "Almost
three in ten (28 percent) claimed they had learned enough to boost
quantifiable job performance-whether in sales, productivity, or
profits-by $500,000 to $lmillion." The average response indicated a
gain of $100,000.
"A large employer in the hospitality industry
saved between $30 million and $60 million by coaching its top 200
executives. " Coachthee.com, "What do you know about executive
coaching ROl?"
9 April 2002.
One coaching firm completed a coaching
evaluation study using the "success case" methodology. They saved
$100,000 by retaining two key executives (a conservative estimate);
realized gains of $250,000 because strategic account teams worked
more effectively; moved average sales performers to better plans and
the company gained more than $75,000 in increased sales; improved
customer retention and satisfaction that resulted in savings of more
than $100,000. (Coaching.com, "Impact Evaluation Report on the
Coaching.com Intervention for [Client Company]."
18 May 2002.)
Another case study documented an innovative
leadership development effort within a Fortune 500 firm. ("Executive briefing: Case study on the return on
investment of executive coaching.".) First
they learned that 77 percent claimed that coaching had a significant
or very significant impact on at least one of nine business
measures. Most respondents (60 percent) identified the specific
financial gains. These respondents claimed that overall productivity
and employee satisfaction were the measures most significantly
impacted by coaching.
The Return on Investment is Impressive.
Perhaps the hottest topic- the sine qua non - found in
contemporary coaching publications is calculating the return on
investment. So far, ROI is a summary statistic reported in studies
that look at business impact, thus the ROI calculations to date are
a product of the larger business impact studies cited above. We
expect formal ROI studies to be an area of growth for establishing
the financial benefits of executive coaching.
-
A study of successful coaching engagements announced a
conservative ROI of 1000 percent. (Coachthee.com, "What do you know
about executive coaching ROI?"
9 April 2002.)
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Another study of 358 organizations claimed an ROI of
nearly 600 percent. (Manchester Inc., "Executive coaching yields
return on investment of almost six times its costs, says study."
www.manchesterus.com/executivecoachingyieldsreturnoninvestment.html,
9 April 2002.)
-
A study calculated an ROI in excess of 500
percent ("Executive briefing: Case study on the
return on investment of executive coaching.")
For how to get the most out of
your coaching,
send an email to
bs@futurevisions.org
with "MWS Coaching Tips" in the subject and nothing in the body
CAN YOU REALLY
AFFORD TO STAY WHERE YOU ARE?
