Why coach?
What's the return for investing valuable time in
coaching?
Every
organization has its own approach to performance
management and coaching. But all models view
coaching as interactive. When you coach, you listen
actively, ask questions, share views, and negotiate
solutions. You give and receive feedback.
Coaching helps
individuals grow as professionals and contribute
fully to the success of an organization. Done well,
it can turn performance management into a
collaborative process that benefits everyone.
Coaching focuses
on what needs improvement and what's going well.
The overall goal is to help people become more
effective. You coach individuals to help them
overcome personal obstacles, maximize individual
strengths, and reach their full potential.
In today's
environment of changing technology and evolving
organizations, coaching can have a strategic
impact. It provides continuous learning and
develops people to meet current and future needs.
Coaching is an investment that you make in
developing your key resource people for the
long-term benefit of your organization.
Due to the need
for leadership development, increased management
performance and succession planning, companies are
focusing more closely on building the capability of
managers and executives through coaching and
mentoring programs. About 6 out of 10 (59%)
organizations currently offer coaching or other
developmental counseling to their managers and
executives, according to a nationwide survey of
more than 300 companies by Manchester, a human
capital consulting firm. Another 20% of
organizations said they plan to offer such coaching
within the next year.
Here's
why: Most
organizations need to improve productivity to fuel
growth and profitability. Productivity doesn't
happen when people are only focusing on the
financial or technical issues. They also must build
the capability of managers to help their employees
with the intangible elements of human
interaction---because the work gets done through
personal relationships. The key to ROI is
developing and sustaining individual and group
behaviors through personal relationships to achieve
the desired business results. Executive coaching
builds the organizational capability to get this
done.
Since it's
becoming harder to train and keep effective
employees, it is clear that companies are
interested in providing executive coaching to
managers who are able to improve productivity by
energizing, exciting and coaching their direct
reports.
"Executive
coaches are not for the meek. They’re for
people who value unambiguous feedback. All coaches
have one thing in common, it’s that they are
ruthlessly results-oriented." FAST COMPANY
Magazine
"If
ever stressed-out corporate America could use a
little couch-time, it's now. Trust in big companies
is at an all-time low. Baby-boomers have been
burned; Gen Xers aren't expecting the Corporation
to take care of them. Under the circumstances,
employees are much likelier to go outside and get
independent advice to help them be better managers"
Karen Cates, Assistant Professor of Organizational
Behavior, Northwestern's Kellogg Graduate School of
Management.
"Between
25 percent and 40 percent of Fortune 500 companies
use executive coaches" Recent survey by The Hay
Group, an International Human Resources
consultancy
What does executive coaching really
cost?
Typical executive
coaching programs are a mix of both change-oriented
coaching (changing certain behaviors or skills) and
growth-oriented coaching (focused on sharpening
performance).
Executive
coaching
programs
typically last from 6 months to one year. Six
months of individual executive coaching generally
costs a company between $7,500 and $20,000 which
includes one or more personal assessments and one
weekly session of telephone or face-to-face
coaching.
Some executives
decide to personally contract with a coach to
achieve certain professional or personal goals.
Signature, Inc. offers individual coaching to
executives who do not have access to employer-paid
programs. This individual coaching is targeted to
the client's needs within personal budget
limitations--beginning
at only $1,200 per
month.
For more information on coaching fees,
email
us to
communicate what interests you about a coaching
relationship.
Receive
our Podcast:
http://coachingtip.blogs.com/coaching_tip/rss.xml
What
coaching plan option would work for
you?
Case
Study on the Return on Investment of Executive
Coaching
A Fortune 500
firm wished to determine the business benefits and
return on investment for an executive coaching
program launched as an innovative leadership
development effort to accelerate the development of
next generation leaders. The participants in this
effort were drawn mostly from the ranks of middle
managers and from many different business units and
functional areas. Leadership development activities
included group mentoring, individual assessments
and development planning, a leadership workshop and
work on strategic business projects.
Coaching was
considered to be a key enabler for this approach to
leadership development because the participants
could work privately and individually with his or
her coach to develop specific leadership
competencies. While participants spoke very highly
of their experience with coaching it was decided to
conduct a formal assessment of the effectiveness
and business impact of coaching. It was intended
that the results from this study be used to
determine:
1. How did
coaching add value to the business and what was the
return on investment?
2. How could
coaching be best leveraged in the future,
especially if coaching was to be expanded to other
business regions?
It was decided
that the best way to isolate the effects of
coaching on the business was through a
questionnaire. The target population for the survey
was 43 leadership development participants. These
participants represented a cross section of the
business and included those in sales, operations,
technology, finance and marketing. All had been
identified as potential leaders and executives.
Thirty (30) of 43 leadership development
participants returned their surveys for a 70%
response rate.
Case Study
Results
Coaching was a
very effective developmental tool for the
leadership development participants, producing
financial and intangible benefits for the business.
Coaching sessions were rich learning environments
that enabled the learning to be applied to a
variety of business situations. Decision-making,
team performance and the motivation of others were
enhanced. Many of these business applications
contributed annualized financial benefits. Other
applications created significant intangible
benefits. Overall, the participants appreciated
their coaching experiences and would highly
recommend coaching to others.
Three-quarters
(77%) of the 30 respondents indicated that coaching
had significant or very significant impact on at
least one of nine business measures.
Overall,
productivity (60% favorable) and employee
satisfaction (53%) were cited as the most
significantly impacted by the coaching. Respondents
defined productivity in this context as relating to
their personal or to their work group productivity
and half (50%) documented annualized financial
benefits.
Program costs
were tabulated for all 43 leadership development
participants in determining the return on
investment. Overall, the coaching process produced
a 788% return on investment. Excluding the benefits
from employee retention, a 529% return on
investment was produced. While those clients who
had customer or people responsibilities produced
proportionally greater financial benefits, the
realization of benefits to the business was fairly
widespread throughout the group involved in this
study.
Coaching
Return on Investment Survey
A survey of 100
executives, mostly from Fortune 1000 companies, by
Manchester, Inc. concludes that a company's
investment in providing coaching to its executives
realized an average return on investment (ROI) of
almost six times the cost of the
coaching.
Corporate
benefits
received:
-
delivered an average ROI of 5.7 times the
initial investment (a return of more than
$100,000)
-executive
productivity improvements (reported by 53%
of executives)
-organizational
strength (48%)
-quality
(48%)
-customer
service (39%)
-retaining
executives who received coaching
(32%)
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Personal
benefits to the coached
executive:
-direct
report and supervisor relationship
improvements (greater than 70%)
-teamwork
(67%)
-working
relationships with peers (63%)
-job
satisfaction (52%)
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Where
do you want to be? What's the biggest challenge you
have? Are you doing today what you do
best?
Check out what
executive coaching plan would work best for
you--click
here for coaching cost and plan
options.
If you are really
committed to what you want to do, let's have a
conversation about getting there from here. If your
company does not provide executive coaching,
consider contracting with an executive coach
yourself. We would be pleased to provide you a
quotation based upon an understanding of what you
seek in a coaching relationship.
Call now
734.426.2000 (US Eastern Time Zone) or email
johnagno@signatureseries.com
to arrange for a free consultation to discuss where
you are heading. To learn more about John Agno,
certified executive and business coach,
click
here.
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