Many of the world's most admired corporations … invest in coaching. The goal of coaching is the goal of good management: to make the most of an organization’s valuable resources.

Harvard Business Review

EXECUTIVE COACH

Coaching’s Return on Investment

There’s no doubt executive coaching delivers powerful results and is growing quickly as a consequence. Look at the numbers:

  • The Harvard Business Review reports spending on executive coaching in the US alone is in the range of $1 billion; worldwide it’s $2 billion.
  • Between 25 and 40% of Fortune 500 corporations use executive coaches as a standard leadership development tool for elite executives and rising stars.
  • Coaching is on the rise across the globe, according to the Global Coaching Survey 2008/09, and Canada is no exception. We have a highly advanced coaching industry, the sixth largest in the world.

Why is executive coaching gaining momentum? The reason is simple: used properly, executive coaching delivers an excellent return on investment (ROI). For example:

  • One study reported a 529% return on investment and significant intangible benefits from executive coaching in a Fortune 500 firm. See industry stats
  • The Personnel Management Association found that individual productivity increases an average of 86% when training is combined with coaching, compared to 22% with training alone
  • Studies on the ROI of coaching report a return of five to seven times the initial investment

In effect, executive coaching can improve performance, productivity and profitability by developing more effective leaders and decision makers.

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BENEFITS OF EXECUTIVE COACHING

A survey of 4,000 corporations that use executive coaching reported the following key benefits:

  • Improved individual and team performance
  • Increased goal achievement
  • Better bottom line results (including profits, quality and productivity)
  • Improved working relationships with peers, direct reports, supervisors and clients
  • Enhanced client service and competitiveness
  • Stronger management skills in the next generation of leaders