Return on Coaching Experience (ROCE): The Most Important Variable in Getting a Return on Investment in Your Leadership Coaching Is You!

by Marshall Goldsmith , Executive Coach, Educator, Author, MarshallGoldsmith.ai ; Rebecca Ray Marshall Goldsmith 100 Coach, Author, Board Member, Human Capital Center Leader Emeritus at The Conference Board ([email protected] ) and Dave Ulrich, Rensis Likert Professor, Ross School of Business, University of Michigan, Partner, The RBL Group ([email protected] )

Leadership coaching is burgeoning : today about $6 billion (up 62% since 2019) with estimates of growth to $20 billion market size, over 109,000 certified coaches worldwide (up 54 percent since 2019), revenue from executive certified coaching has grown from $8.4 billion in 2021 to $9.3 billion in 2022, and over 33 percent of Fortune 500 companies in the Unites States use executive coaches.

The growth in coaching is due in part to increased demands on business leaders caused by challenging business conditions, changing employee attitudes about work, and more pressures to deliver results in the right way. Research shows that 60 percent of new managers fail within 24 months. CEO median tenure has dropped 20 percent from 2013 (6.0 years in position) to 2022 (4.8 years in position). Preparing for, transitioning into, and becoming an effective leader explains some of the increased demand for coaching.

Effective executive coaching can support the best leaders in their quest to continue to grow and make an impact. It can also help aspiring leaders on their journey to know themselves and become the leaders others would choose to follow.

However, coaches are only part of the coaching effectiveness equation. We have found that too often the coachee is not prepared to be coached or to use coaching efforts. We (and others) have offered many tips on how to be an effective coach (Stakeholder Centered Coaching [SCC], GROW , CLEAR , OSKAR , STEPPA , and others). In this post, we explore the coachee’s role in having a great return on coaching experience (ROCE). If you are looking for coaching, we want to help you effectively prepare for, engage in, and apply learning from your coaching experience.

Prepare for Coaching

1. Know why. Determine why you want to be coached. What do you want from the coaching experience? New behaviors? Better outcomes? For example, Marshall originated Stakeholder Centered Coaching (SCC) to help already motivated leaders achieve positive, lasting change in behavior. It does not deal with business problems, life planning, increasing financial returns, or many other concerns. If your issue is behavioral, you are motivated to change, and you are getting a fair chance to improve, SCC works. If not, get a different type of coach!

2. Get baseline data. Assess yourself using a 360 or other qualified assessment tool. You likely judge yourself by your intent; others judge you by your behavior or results. Find out what others perceive about you. Have a baseline so you can monitor your improvement from coaching. If you want to improve sales skills, get data on how well you are selling currently and set specific improvement goals. If you want to be a better public speaker, get feedback on how well you are perceived as speaking before you begin the process.

3. Commit to act. Make sure you are willing to go through the hard work of change before you start. Coaching should not just be an item on an individual development plan but a sincere commitment to improve. If you are not willing to change, don’t create expectations for yourself or others. Our research has shown that leaders who receive coaching but do no follow up with their people achieve positive change that is only slightly better than random chance!??????

Engage in Coaching

1. Find the right coach for you. Your style and the coach’s style need to mesh. Make sure you are comfortable being transparent and vulnerable with your coach, willing to listen to him or her, and be open to advice. You and your coach need to have a personal bond of mutual respect.

2. Contract. Set clear outcomes for the coaching experience with timelines, meeting dates, and budget. If you find yourself cancelling coaching sessions, they are not your priority and you are not ready. Being coached requires dedicating time and money, letting go of legacy behaviors, and experimenting with new behaviors.

3. Discover simple actions. Identify simple and specific takeaways from each coaching session. Take personal responsibility for making the coaching process work. We like to ask the “four 3s” from a coaching effort: [1] What will I do in the next 3 hours (immediately)? [2] What will I do in the next 3 days (short term)? [3] What will I do in the next 3 weeks (change my behavior)? [4] What will I do in the next 3 months (change how others see me)? Focus most of your energy on improving yourself, not critiquing your coach or making excuses.

Apply Coaching Learnings

1. Share commitments. When you make improvement commitments, share them with others (boss, peers, subordinates) so they help hold you accountable. We have learned that sustained change comes from public commitment. After sharing your original commitments, keep following up with stakeholders to ensure positive change.

2. Track. Do daily follow up on the key things you want to improve. This may be a quick call or check in, but track your progress with someone you trust. The “daily questions” process causes you to “look in the mirror” every day and assess yourself relative to your personal goals.

3. Adjust. Recognize that the intended actions from coaching may evolve, which is ok. But stay committed to making change happen. For example, your role may change or your customers may change. These changes may bring up new, unforeseen challenges and opportunities for you.

Return on Coaching Experience (ROCE)

Coaching can have a profound impact on your performance as a leader. It can have far-reaching impacts on the teams you lead, your organization, your family, and the communities you serve. Adding personal coaching to any leadership development initiative multiples the impact. But, like with any change, it only works if you are willing to invest in the coaching experience. If you are not yet ready to be coached, get ready so that coaching gives you a great return. A great way to do that is to review the invaluable game plan offered in Becoming Coachable from Marshall, Scott Osman, and Jacquelyn Lane (see https://becomingcoachable.com/ ).

Make getting a great ROCE your personal goal, not just your coach’s goal!

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Dave Ulrich?is the Rensis Likert Professor at the Ross School of Business, University of Michigan, and a partner at The RBL Group , a consulting firm focused on helping organizations and leaders deliver value.