What Are The Benefits of Coaching?

Individuals who engage in a coaching relationship can expect to experience fresh perspectives on personal challenges and opportunities, enhanced thinking and decision making skills, enhanced interpersonal effectiveness, and increased confidence in carrying out their chosen work and life roles. Consistent with a commitment to enhancing their personal effectiveness, they can also expect to see appreciable results in the areas of productivity, personal satisfaction with life and work, and the achievement of personally relevant goals.

The ROI of Executive Coaching

It is challenging to get a really good handle on the ROI of executive coaching. Currently, more than $80 billion dollars is being spent on corporate education, it is estimated that less than 3% is spent on executive coaching at senior executive levels in Fortune 500 companies. Yet the benefits of hiring a coach are insurmountable.

A survey by Manchester Consulting of their Fortune 1000 clients found the return on investment for coaching services over a 6-12 month period:

• Monetary return was 6 times the coaching investment
  
• 71% improved relationships with their bosses
  
• 77% reported improved relationships with their direct reports

"Metropolitan Life Financial Services offered an intensive coaching program to part of its retail sales force. They found that productivity among those salespeople coached increased by an average of 35%, while 50% identified new markets to develop. Perhaps most important, Metropolitan has retained all of the salespeople who had the coaching-a big deal, since industry statistics show that each representative who leaves a company with three years' experience cost $140,000 to replace. In all, the coaching program which cost about $620,000, delivered $3.2 million in measurable gains: A 5.16 ROI."

"Executive Coaching: An Investment in Creating Masterful Leadership,"
- The Rowell Consulting Group

"I absolutely believe that people, unless coached, never reach their maximum potential."
- Bob Nardelli CEO, Home Depot

"Asked for a conservative estimate of the monetary payoff from the coaching they got; these managers described an average return of more than $100,000, or about six times what the coaching had cost their companies."
- Fortune, 2/19/01, "Executive Coaching -- With Returns a CFO Could Love"

"The soft stuff is always harder than the hard stuff. Human interactions are a lot tougher to manage than numbers
 and Profits and Losses."
- Roger Enrico Vice Chairman, PepsiCo.