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Coaching Generated Big Returns

The following is a recent quote from Fortune Magazine:

“Of the monetary payoff from the coaching they got, these managers described an average return of more than $100,000, or about six times what the coaching had cost their companies.” Fortune, 2/19/01,

– “Executive Coaching — With Returns a CFO Could Love”

In my own work I have also found this to be true.  Some companies that I have worked with have generated astronomical returns on investment of 2,500%.  I believe there are some key factors that determine if a company will be able to generate an ROI of at least 600%.

  • The most senior person in the company or group has participated in coaching and is now a role model for others who take coaching.
  • Several other people in management also participate in coaching.   The more people on the leadership team that have received coaching the more successful the program.
  • Team development initiatives are taken to foster open communication and collaboration across the company or group.
  • Managers adopt a coach approach and consistently meet with staff in both group meetings and one on one.
  • Finally you need to stay the course and keep using and applying what you have learned.  As soon as you go back to your old ways, so will your results.

While doing the work with these companies, staff came to regard their organization as the best place that they ever worked.

Companies or groups within a company that have maintained these results for the longest period of time have consistently practiced doing all of the above.  It is a long term game.

Jacque

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This entry was posted on Tuesday, March 2nd, 2010 at 7:11 am and is filed under Leadership. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • Robert Miller

    I used coaching to follow up on major changes I wanted to happen at my company–relating to employee turnover and attitude. We started with a corporate consultant who helped us focus on what systemic changes were required. We then moved to coaching which showed us what thinking changes were required. Our coaching program started in 2007, and finished in 2008. I (the president) was coached, as well as my Production Manager. The results were excellent. Sales/throughput went up 25%, gross profit went up 10%, and the result was net profits went up over 500% .Employee turnover vanished. People were happier to come to work, happier to work together. 2009 was a brutal year, but with sales volume returning in 2010, I am looking forward to even exceeding our 2008 statistics.

  • http://www.catalystcoach.ca Jacque

    Hi Bob,

    Yes you and your team did exceptionally well changing the way you worked with your people and really taking coaching on as a way of leadership and management.

    Hugs,

    Jacque