Is Coaching Worth It? A 600% ROI Says Yes!

Many organizations ask the question whether paying for leadership development and executive coaching is really worth it. The answer’s not that complicated. The value of any investment is measured by the return it generates.?

What the Numbers Say

Research published by the Manchester Review reveals than the average ROI for an investment in executive coaching is 600%.

Other studies found that 77% of those Fortune 500 leaders surveyed said that coaching had a significant impact on their productivity. Close to the same percentage cited benefits ranging from enhanced performance and communication skills to improved working relationships.?

American University reported that one Fortune 500 reaped returns on its investment in executive coaching of nearly 800%. Included in those returns were significant increases in individual, team, and organizational performance.

You Never Outgrow the Need to Grow?

Learning is a lifelong process you don’t outgrow just because you move into the corner office. You never outgrow growth, and if you do, you’re dead. I know we all think we’ve made it when we reach a professional pinnacle. We should acknowledge and celebrate those achievements. But I work with some incredibly talented and highly intelligent, well-educated C-level clients who know they need ongoing coaching and development. Even the greatest of the great (think Tom Brady, LeBron James or Sabrina Williams) still rely on coaches. They would never do that unless the quantifiable ROI not only justified the investment but generated powerful competitive returns.

Don’t only invest in coaching while you’re new to the game. The investment ROI increases the higher you go up the leadership ladder. That’s because the stakes are higher. The responsibilities are greater. The downside risk is huge. But with a high-level coach/advisor, the upside potential can be exponential. It can create multifaceted, sustained returns that are measurable throughout the organization and its corporate DNA.

The Top 3 Questions Organizations Need to Ask

#1 Do you need a C-Suite advisor, a coach, or both?

If you have a few specific goals, then an executive coach may be the answer. They’ll hold you accountable and keep you on track. You may need a trusted, candid advisor to bounce ideas off of, or talk through challenges. Leaders are often reluctant to discuss those things with their CEO or Board of Directors. In that case, a C-suite advisor is recommended.

Why Do They Pick Me?

I am engaged by organizations to do both. Many Fortune 500s give me feedback, saying I bring a unique value and perspective that other coaches, advisors, and consultants cannot offer. I’m a former Fortune 100 senior leader, and a successful global entrepreneur. Plus I’ve had years of experience in high-level leadership in the trenches. I’ve navigated rough waters through multiple mergers and acquisitions, volatile economic times, and historic recessions. Whatever a C-Suite leader is dealing with, I’ve been there, I get it, and – most importantly – I have proven solutions.

Coaching vs. Training

Last year, Harvard Business Review published an article that said distinguished between training – which has a fixed agenda – and coaching, which is tailored to the client’s unique needs. That client may be an executive, but oftentimes the organization hires the coach. As HBR describes, the coach “helps the client set its own goals, identify choices, and close gaps while moving toward a client-envisioned future. Organizations integrating coaching into organizational effectiveness see improvements in retention, teamwork, relationships, and job satisfaction.”

?Takeaway Questions

Here are 3 key questions for organizations and senior leaders to ask themselves regarding coaching.

#1 What transformational changes do you seek?

What are the most significant challenges you’re facing right now? Where would you like to be in six to 12 months? Identifying those goals helps you know who to hire and how to set metrics to evaluate their performance.

#2 How can you gain objective, actionable insight?

From my experience working with my own executive coaches (yes, even award-winning coaches need coaches!) you need someone to stretch you – to identify the gaps and help you bridge them to a new you. Growth doesn’t occur until you are willing to step beyond the status quo.

#3 Are you prepared to invest in your leadership?

Many organizations are understandably worried about their coaching budget. But the most successful organizations pay for real results. They keep paying for coaching because coaching pays for itself. If you don’t invest in your leaders, your competitors certainly will – as they lure them away.