Have you considered business or executive coaching?
Have you wondered what the return on investment for coaching is?
Is it really worth investing in your business by working with a business coach?
In any organization it is important to have strong leaders with a clear vision and goals as to where the business is heading. Leaders that can demonstrate that they have a goal and can achieve their goals. Leaders, who don’t just tell their staff what to do, but that can actually lead people.
If you don’t have strong leaders, how can you expect your staff to know or to believe in the organizations success?
One of the main things to consider in business and executive coaching is to move away from the activity based approach to business to a results based approach. You see it is very easy to be “busy,” but that does not mean that you are productive or achieving the results you are looking for. Coaching is very good at achieving this and more.
So what is the return on investment for coaching?
It is reported that in the USA, they spend over 1 billion dollars per year on executive coaching. There is a reason for that it that it works and the return on investment for coaching is reported to be between 5-7 and sometimes as high as 49 times. That means for every $1000 they spend they get a return of around $7000 and even up to $49000.
In a recent article by Forbes the following was said about the R.O.I for coaching. “Though the exact impact of coaching is notoriously hard to quantify, Marc Roudebush, CEO of Inspiring Workplace, points to a recent global survey of coaching clients by PriceWaterhouseCoopers and the Association Resource center which concluded that the mean R.O.I for companies investing in coaching was 7 times the initial investment, with over a quarter reporting an R.O.I of 10 to 49 times.” You can read the rest of the article here
Studies on the R.O.I for coaching.
There have been a number of studies which have shown that investing in coaching produces greater results than traditional training. Training is obviously often a necessity and has its place. The problem is that training only goes so far in holding people responsible for actually achieving results with their new found skills. A coach on the other hand will hold the client accountable to achieve the client’s goal. Furthermore, training on its own can be forgotten, whereas the practical application of coaching ingrains a change pattern that can be replicated by the client over and over again.
The Hudson Institute has found that companies are investing more money into coaching than training because the return on investment is easier to track.
How do you measure the return on investment for coaching?
There are a number of things to look at when tracking return on investment in coaching. These can be different for different organizations.
1. The financial benefit from coaching. (Not only directly attributed to the coaching, but also based on actions taken due to a new way of thinking and behaviour.)
2. Time, money and other savings that the coaching process has helped by change of behaviour or thinking.
3. Personal outcomes due to coaching and their impact.
4. Financial impact on staffing costs, retention, training etc. due to coaching.
5. What else do you need to measure the ROI against?
6. Total overall impact, financial, physical, emotional and behavioural.
In short coaching can have a massive positive impact on the client. Regardless if it is the business owner, executive, staff or simply life coaching. The way the return is measured will depend on you. With all successful sports people, fortune 500 companies and even presidents using the services of a coach, don’t you think it will also benefit you?
So do yourself a favour and stop wondering about the impact and simply contact us today to have a discovery meeting. Find out for yourself what all the fuss is about and reach for the goals you truly want.