What's New—

Article:Return on Investment (ROI) from Coaching--a Brief Overview

Quantitative Data from Sources Internal to the Coaching Profession

1) Manchester US – Results of R.O.I Survey Poll

Survey participants confirmed a conservative average return of $100k or 6 times what coaching cost the company.

28% reported
Increase in Job Performance from $500k to $1m (Sales, Productivity or profitability
77% reported
Better relationships with Direct reports
71% reported
Better relationships with Managers/Bosses
63% reported
Better relationships with Peers
37% reported
Better relationships with Customers
61% reported
Increase in Job Satisfaction
44% reported
Increase in Organizational Commitment (less likely to leave)

Profile of Survey Participant
  • 60% aged between 40-49 years of age
  • 50% held Vice President position or higher
  • 33% earned $200k or more per annum.

2) The Gallup Organization

”Marcus Buckingham from the Gallup Organization and Curt Coffman of Q12 Management Consulting may or may not consider themselves executive or life coaches, but they do believe that you must coach the people around you to perform at a higher level. And that coaching people is the only way to get them to level that they are capable of achieving.”

Gallup discovered that workgroups that exhibited the highest levels of employee engagement were more likely to have above-average:

Employee retention.......... 44%
Customer Loyalty
............. 56%
Safety Records
............... 50%
Productivity
...................... 50%
Profitability
......................33%


3) MetrixGlobal LLC ( Pyramid Resource Group & a Fortune 500 Firm)

A Fortune 500 firm and Pyramid Resource Group, a coaching services company, recently engaged MetrixGlobal LLC to determine the business benefits and return on investment for an executive coaching program.

Most significantly impacts:
Personal or workgroup Productivity 60% favorable
Employee satisfaction (personal as well as the being able to increase the employee satisfaction of their team members) 53% favorable
Customer satisfaction 53% favorable
Annualized financial benefits* documented by 50% of participants
Next most frequently cited significant impacts:
Work output 30% favorable
Work quality 40% favorable
Financial benefits as a result of increased work output 20%
A 529% return on investment was produced by the coaching process (excluding the benefits from employee retention)
* 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.

4) International Coaching Federation – clients reported outcomes as a result of working with a coach -

Self Awareness
................................ 67.6%
Setting better Goals
......................... 62.4%
More balanced life
........................... 60.5%
Lower stress levels
.......................... 57.1%

Quantitative Data from Sources External to the Coaching Profession

1 )Manpower Project-May 2000, Corporate Coach University
A coaching project for the senior management team at Manpower Canada,
Manpower is Canada's largest staffing company.

Response Key
1 I have not realized any change
2 I have realized some change
3 My approach is noticeably different, as noted by me or others
4 My approach has dramatically changed
N/A Not applicable
The initial coaching agreement was for six months of executive coaching. At the end of the six months the results were tabulated and the agreement was extended to include regional managers across Canada.

The executive coaching was evaluated using a proprietary quality assurance process as well as a 360 degree feedback instrument, which linked to the desired leadership competencies at Manpower Canada. The following chart indicates the level of satisfaction and represents a summary of the quality assurance feedback. Participants were interviewed at mid and end points of the initial agreement to determine the level of satisfaction with their progress in eight key areas as follows:

Summary of Results
% reporting an improvement
I.
Communication Average score 3.2 100%
II.
Teamwork Average score: 3.5 100%
III.
Leadership Average score: 3.2 100%
IV.
Innovation Average score: 3.1 95%
V.
Customer Service Average score: 3.1 100%
VI.
Productivity Average score: 2.4 83%
VII.
Goal Setting Average score: 2.9 100%
VIII.
Effectiveness Average score: 3.0 96%

2) The Xerox Corporation carried out several studies, one of which showed that in the absence of follow-up coaching 87% of the skills change brought about by the program was lost. That’s 87 cents in the skills dollar. However good your skills training in the classroom, unless it’s followed up on the job, most of its effectiveness is lost without follow-up coaching.

3) In an article in the Harvard Business Review, [Jan-Feb 1998], entitled The Employee-Customer-Profit Chain at Sears, by Rucci, Kirn and Quinn, (Reprint 98109)] a model was developed indicating that 5 units increase of employee attitude led to 1.3 unit increase in customers' positive impression resulting in 0.5% increase in revenue growth

4) One study examined the effects of executive coaching in a public sector
municipal agency
. Thirty-one managers underwent a conventional managerial training program, followed by 8 weeks of one-on-one executive coaching. Training - which Included goal setting, collaborative problem solving, practice, feedback, supervisory involvement, evaluation of end-results, and a public presentation - increased productivity by 22.4%. Training and coaching combined increased productivity by 88%, a significantly greater gain compared to training alone.
(Public Personnel Management; Washington; Winter 1997; Gerald Olivero; K Denise Bane; Richard E Kopeirnan)

Qualitative Data from Sources External to the Coaching Profession

“Soaring With Their Own Life Coach”, Journal of Staff Development, Spring 2002

Schools and districts will be more productive learning environments for both students and educators if their leaders are clear about their goals, know how to develop multiple paths for achieving those goals, have the interpersonal skills to build deep relationships and understand how language impacts their actions, understand the power of listening without an agenda or giving advice, are able to honor others, and have the unconditional support of a life coach to achieve those goals.

Qualitative report from participants (50 principals and superintendents):

  • Able to address difficult professional situations in ways that they would not have without the support of a coach.
  • Ability to stand firm for the academic success of student
  • Shorter meetings
  • More time to spend with teachers and students
  • Confidence to talk with teachers in a way that builds their sense of efficacy and responsibility
  • Understanding of their problems and what they wanted
  • Better solutions
  • More “real” on the job

“Leadership is the key to student achievement, yet we’ve been out there alone. Coaching provides the support to help us become a leader of adults because it gives us a sounding board, a mirror to our own actions and thoughts. I don’t have to do it alone anymore. I have a coach who is my unabashed, unconditional supporter, my personal cheerleader, my analytic critic, and the keeper of my dreams for my school and my students.”