Return on Investment

Coaching as a Return on Investment
 

The smartest, most valuable investment a company can make is to develop a stellar base of employees. The resiliency,strength, and productivity of today’s organization depends upon a workforce that is

continuously prepared for current and future market needs—to adjust and respond rapidly to changing economic conditions, to compete successfully on a global basis, and to leverage its core competencies.

Coaching provides the organization with opportunities for optimization. Coaching significantly increases the return on the investment made by helping companies identify, develop and utilize the skills of employees for optimum performance.

Three major studies demonstrate the tremendous return on investment in coaching:

1. Case Study on the Return on Investment of Executive Coaching by Dr. Merrill C. Anderson. A study commissioned by a major Fortune 500 company demonstrated a coaching ROI of 529 percent and significant intangible benefits to the business.The financial benefits from employee retention boosted the overall ROl to 788%. The study provided powerful new insights into how to maximize the business impact from executive coaching.
2. Olivero, Bane & Kopelmann Public Personnel Management Washington; Winter 1997; ISSN: 0091026).
   This 1997 study concluded that follow-up coaching combined with a supervisor training program increased productivity by an astounding 88%. The same study concluded that training alone increased  productivity by 22.4%. The bottom-line: coaching increased productivity more than 300%.
3. The Manchester, Inc. Survey was published in the proceedings of the ICF Annual Conference in August 2001. A study of 100 executives at Fortune 1000 firms showed that nine in ten executives believe coaching to be worth their time and dollars in that it delivers an ROI of six times the cost of coaching.Study showed that the benefits to the companies were improvements in:
   • Productivity 53%
   • Quality 48%
   • Customer Service 39%
   • Reduced customer complaints 34%
   • Retaining executives 32%
   • Cost reductions 23%
   • Bottom-line profitability 22%

Benefits to the executives were improvements in:

• Working relationships with direct reports 77%
• Working relationships with immediate supervisors 71%
• Teamwork 67%
• Working relationships with peers 63%
• Job satisfaction 61%
• Conflict reduction 52%
• Organizational commitment 44%
• Working relationships with clients 37%

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