The Surprising ROI of Executive Coaching

Executive Coaching is the most effective method for improving leadership behaviour. Implementing a one-to-one customized and structured personal development program is more effective than sending a person to a workshop or conference. A leadership conference may have famous speakers, shiny brochures, great food, and networking opportunities but research indicates this doesn’t usually translate into improved professional performance.

There are three things about an Executive Coaching Program that greatly enhance the outcome and the measurable ROI.

  1. Validated assessments that reliably measure the Executives’ strengths and weaknesses.
  2. Specific attention to both intangible and tangible goals that help the Coachee improve on both the personal (intangible) and professional (tangible) level.
  3. Consistent accountability between the Executive, the Coach, and the Stakeholder.

A reliable personality assessment looks at the underlying motivators to behaviour and is also able to predict the challenges that can bring out negative behaviours. The assessments give both the Coach and the Executive an objective foundation for building a customized performance improvement strategy. This strategy becomes the basis for goals and an action plan that maps out the development program to follow. Then the Coach provides the Coachee with accountability for the action plan throughout the program and updates the stakeholder on the progress.

cash1A study published in the Manchester Review (2001, Volume 6, #1) indicates that Executive Coaching consistently offers both tangible and intangible returns on the investment made in developing the inherent talent in the employees and executives you already have. Like, when calculated conservatively, ROI(for the 43 participants who estimated it) averaged nearly $100,000 or 5.7 times the initial investment. This is a conservative estimate carefully calculated from the data received from executives and stakeholders about their coaching experiences. Additional to this financial gain are the ongoing effects of increased productivity (53%) and improved relationships in the workplace (77%).

The Manchester review also stated that “…84% of the candidates who completed an executive coaching program identified the quality of the relationship between the executive and the coach as critical to the success of the coaching.” A great Coach needs to be a great listener and motivator, and offer the flexibility needed to accommodate an Executive’s busy schedule. Another factor for success was the participation of the stakeholder, however this did not hold true when the confidential relationship between the coach and the executive was not respected.

This study and other studies indicate that when you want to invest in your team, the best way is to give them an opportunity for personal and professional growth. In choosing an Executive Coach, look for one who will invest the time to customize a development process for the specific needs of YOUR team. People are too unique and too valuable to your business success to send them to a “Spizz-Me-Up” leadership conference and expect the “magic” to rub off.

If you’re thinking of investing some time in developing the talent you already have, give me a call and we can talk about how the customized program I offer can make a positive difference for you, your team, and your company.


Maximizing the Impact of Executive Coaching. Behavioral Change, Organizational Outcomes, and Return on Investment; The Manchester Review (2001) Volume 6 Number 1; (Joy McGovern, PhD; Michael Lindemann, PhD; Monica Vergara, MA; Stacey Murphy; Linda Barker, MA; Rodney Warrenfelz, PhD) Read the published study HERE

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