LEADERSHIP DEVELOPMENT: The ROI of Executive Coaching

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These are tough economic times. You have had to lay off people. Your organization is lean and mean. Every dollar you spend needs to have a positive impact on your business. How do you focus your limited resources to get the biggest bang for your buck? How do you justify investments in executive coaching? How do you know that the coaching is working? What is the ROI?

While some organizations dismiss executive coaching as just another flash in the pan leadership development fad, 60% of fortune 100 companies are providing executive coaching programs. In one survey of US and Canadian business managers, 85% chose executive coaching as their number one preference of leadership development. They believe that one-on-one coaching works…and they believe they should invest in their best!

N2 growth, a leading venture growth consultancy, released the results of a study that quantifies the business impact of executive coaching. The study conducted by Manchester, Inc., includes data on executive behavior change, organizational improvements achieved, and the return on investment (ROI). The study concluded that executive coaching programs delivered an average return on investment of 5.7 times the initial investment in a typical executive coaching assignment.

Specifically, 53% of executives reported an increase in productivity, 48% an increase in quality and organizational strength, 23% in cost reductions and 22% in bottom-line profitability. Other benefits reported by executives who received coaching were in the areas of better working relations with immediate supervisors, peers, direct reports and clients, improved teamwork and job satisfaction, conflict reduction and organizational commitment.

For an executive coaching investment to be successful, the development must begin with a firm understanding of the business/organizational results you want to achieve. What business goals will most likely be impacted by the individual being coached? What strengths, talents and skills can best be enhanced? What weaknesses can be mitigated? A good executive coach has developed the ability to assess, develop and provide feedback to ensure positive actions take place for both the individual being coached and for the organization.

As organizations attempt to get a better handle on dealing with the pressure of these unpredictable times, executive coaching can well be an investment which will be money well spent. Because on the real-time experience executive coaching provides, leaders gain confidence and optimism in their ability to lead people and deal with the unexpected. Leaders have a coach at their disposal to help them navigate through the ambiguity and uncertainty.

Executive coaching helps key individuals in the organization thrive not just survive. The executive coach helps executives focus and adjust to new organizational realities as they occur. The executive coach helps anchor the executive being coached to focus on… and achieve specific business/organizational outcomes…resulting in a good ROI.

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About Ingbretsen Consulting LLC:
Coach and author Roger Ingbretsen is a certified executive coach and organizational developer, providing organizational and career guidance to professionals, managers, supervisors and all individuals looking for "real world" career development and business information. His entrepreneurial approach will help you learn how to plan, lead and succeed in your career. Roger is the creator of the “Leadership Development Coaching Experience©” and author of the personal development reference eBooks, “Plan Your Career Now: The Survival Guide for the American Workplace” and “Master Your Career: Proven Strategies for Career Success©.” To know more and claim dozens of Rogers free articles go to www.ingbretsen.com or call 509 999 7008.

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