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The ROI of Executive Coaching

Guest post by: Roger Ingbretsen

Article Overview: Executive coaching helps key individuals in the organization thrive not just survive. The executive coach helps executives focus and adjust to new organizational realities as they occur. The executive coach helps anchor the executive being coached to focus on… and achieve specific business/organizational outcomes…resulting in a good ROI.

The ROI of Executive Coaching

These are tough economic times. You have had to lay off people. Your organization is lean and mean. Every dollar you spend needs to have a positive impact on your business. How do you focus your limited resources to get the biggest bang for your buck? How do you justify investments in executive coaching? How do you know that the coaching is working? What is the ROI?

While some organizations dismiss executive coaching as just another flash in the pan leadership development fad, 60% of fortune 100 companies are providing executive coaching programs. In one survey of US and Canadian business managers, 85% chose executive coaching as their number one preference of leadership development. They believe that one-on-one coaching works…and they believe they should invest in their best!

N2 growth, a leading venture growth consultancy, released the results of a study that quantifies the business impact of executive coaching. The study conducted by Manchester, Inc., includes data on executive behavior change, organizational improvements achieved, and the return on investment (ROI). The study concluded that executive coaching programs delivered an average return on investment of 5.7 times the initial investment in a typical executive coaching assignment.

Specifically, 53% of executives reported an increase in productivity, 48% an increase in quality and organizational strength, 23% in cost reductions and 22% in bottom-line profitability. Other benefits reported by executives who received coaching were in the areas of better working relations with immediate supervisors, peers, direct reports and clients, improved teamwork and job satisfaction, conflict reduction and organizational commitment.

For an executive coaching investment to be successful, the development must begin with a firm understanding of the business/organizational results you want to achieve. What business goals will most likely be impacted by the individual being coached? What strengths, talents and skills can best be enhanced? What weaknesses can be mitigated? A good executive coach has developed the ability to assess, develop and provide feedback to ensure positive actions take place for both the individual being coached and for the organization.

As organizations attempt to get a better handle on dealing with the pressure of these unpredictable times, executive coaching can well be an investment which will be money well spent. Because on the real-time experience executive coaching provides, leaders gain confidence and optimism in their ability to lead people and deal with the unexpected. Leaders have a coach at their disposal to help them navigate through the ambiguity and uncertainty.

Executive coaching helps key individuals in the organization thrive not just survive. The executive coach helps executives focus and adjust to new organizational realities as they occur. The executive coach helps anchor the executive being coached to focus on… and achieve specific business/organizational outcomes…resulting in a good ROI.

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Article Tags: executive coach, executive coaching, executive coaching ROI



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What are you doing to grow your business Ladies? - Hi Ladies, I thought it might be great for us women to share what we are doing lately to develop our business(es). I have now signed a lease on a new commercial space where my husband and I plan to open a Sport's Consignment and Cappuccino Bar. We're an active tourist destination and we also want to give back to our local community by offering discounted quality equipment. I'm doing lots of research and planning right now. For my Coaching Business, I have signed up for a new coaching mentorship program by one of USA's top Executive Coach trainers, Drayton Boylston. He's sure to challenge me, offer continued professional development and keep me on track as I grow my Coaching business. I'm quite excited about the opportunity since you have to be invited to even participate in this group. What are you doing lately or what are you planning in order to develop your business? I'm hoping we can all encourage each other to keep our businesses growing. Warm regards, Tami
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