Posted by In today’s fast-paced, competitive business world, it is no longer enough to be skilled and knowledgeable about your own business and business processes. To distinguish yourself from other successful people, and to maintain your competitive edge, you need to be continuously honing your management and leadership skills.
A detailed study was recently conducted and published detailing the benefits and findings in support of Management & Executive Coaching. Included within this document are “5 main items of ROI” that surfaced through this research.
Benefit #1: Improve the Bottom Line
Of participants who were able to estimate ROI, 70% valued the ROI on coaching at $100K or more, with 28% valuing the coaching ROI between $500K & $1 million.
| A Less than $100,000 30% B $100,000 to $199,000 12% C $200,000 to $299,000 16% D $300,000 to $399,000 7% E $400,000 to $499,000 7% F $500,000 to $1 million 28% |
AMONG THE RESULTS OF THE STUDY:
Six-fold ROI : The coaching process delivered an average return on investment (ROI) of more than $100,000 — or almost six times (5.7) the initial investment in coaching.
Seven out of 10 put ROI at $100,000+ : The ROI of 5.7 is a conservative estimate of the relationship between the monetary value of the results achieved from coaching programs and the costs incurred. Seven out of 10 participants who received coaching and provided an ROI estimate valued the ROI in excess of $100,000 – with almost three in 10 (28%) valuing the ROI between $500,000 and $1 million.
APPENDIX
These 5-items include data on executive/management behavior change, organizational improvements achieved, and the return on investment (ROI) from multiple individualized and comprehensive Business/Leadership coaching programs. The study examined results realized by 100 executives/managers, mostly from Fortune 1000 companies, who participated in coaching programs that typically lasted from six months to one year. Fifty-seven percent of executives/managers who received coaching were ages 40 to 49, and half held positions of vice president or higher, with one-third earning $200,000 or more per year. It is understood that while this study focused on executive/management level participants, this group of participants represented a narrow slice of the coaching population, and that research in general acknowledges the value of coaching across a variety of roles and levels of seniority. The coaching programs that executives/managers participated in were a mix of both change-oriented coaching (aimed at changing certain behaviors or skills), such as our Executive/Management & Team Coaching programs, and growth-oriented coaching (aimed at personal goals & sharpening personal performance), such as Personal Coaching.
Dominick F. Mills
Next Step Business Coaching
Telephone: (800) 887-1086 (national)
Telephone: (661) 947-9768 (local)
Facsimile : (661) 310-1033
