Showing posts with tag: studies

700% Leadership Coaching ROI (return on investment): more than 20 studies

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Until 25 years ago, nobody knew anything much about coaching. About 10 years ago, nobody asked anything about its real efficacy. Yesterday I got involved in a Ph.D. research of a nice friend and coach, research granted by Harvard and conducted within Vrije Universiteit Amsterdam, in which my friend Tunde Erdos studies the relationship between coaching presence and its efficacy, using state of the art video-analysis software. 

Being the industry with the second highest development rate in the world, coaching deserved better than just the constant questioning of its efficiency. How can you measure, after all, the efficiency of a human conversation? Who benefits the most? The client? The coach? The organization? Client’s family?

I love statistics and figures in general but I am no fanatic. I sometimes use my intuition to decide whether or not something is for me or not: how could you measure the success probability of your marriage? It’s no mistake here: I got married to coaching the same way I got married to my wife: by falling in love, not by measuring my (future) ROI. Leap of faith!

Anyway, I got asked so many times if coaching produces any results, that I finally decided to do something about it. I created a library where you will find lots of research papers and studies. I just want to outline several of the findings below:

1. „The overwhelming majority of participants reported a long term impact of coaching, including 89% of those coached five years ago and 71% of those coached more than five years ago”

2. „Executive coaching is the managerial training and development method that contributes the most to sustained observable behavior change in executives.”

3. „Ordinary training typically increased productivity by 22%, while training combined with life coaching increased productivity by 88%”

4. „Respondents feel that coaching achieves the following desired outcomes: evidence of learning being put into practice (71%) and readily-quantifiable and positive results, often demonstrated on the company’s „bottom-line” over the long term (62%)”

5. „This third-party research study cites a 10:1 return on investment in less than one year.”

6. „Improved teamwork (8.4%), increased collaboration (8.5%), increased employee engagement (8.1%), increased retention by 7.5%”

7. „Quality of work products or services improved by 7.5%, productivity increased by 7.3%, net revenue was estimated to have increased by 6.5% and the cost of operations was estimated to have been reduced by 6.3%.”

8. „86% rated coaching as very effective; 95% are doing things differently as a result of coaching, and 95% would recommend coaching to others”

9. „Improved teamwork was cited by 58% of the leaders as having been impacted. Team member satisfaction was identified by 54% of the leaders as being impacted by what they did differently as a result of their coaching experiences. Increased productivity was cited by 31% of the leaders as a business outcome of their coaching

10. „The results – close to 700 percent return on investment (ROI)”