Aligning Purpose, Passion and Performance through Coaching
RETURN ON INVESTMENT
Executives considering coaching for themselves, their senior management teams or their high potential employees are finding a growing body of research with positive answers to the question, what is the ROI?
Michigan-based Triad Performance Technologies, Inc. evaluated the effects of a coaching intervention on a group of regional and district sales managers within a large telecom organization. The third party research study cites a 10:1 return on investment in less than one year. The study found that the following business outcomes were directly attributable to the coaching intervention:
Retention of top performing staff who were considering leaving the organization, resulting in reduced turnover, increased revenue, and improved customer satisfaction.
Creation of a positive work environment, focusing on strategic account development and resulting in higher sales volume.
Improved revenues and customer satisfaction due to fully staffed and fully functioning territories.
Increased revenues due to managers improving their performance and exceeding their goals.
"Asked for a conservative estimate 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, 2001.
"A study featured in Public Personnel Management Journal reports that managers (31) that underwent a managerial training program showed an increased productivity of 22.4%. However, a second group was provided coaching following the training process and their productivity increased by 88%. Research does demonstrate that one-on-one executive coaching is of value." -- F. Turner, Ph.D. CEO Refresher 2001.
"Xerox Corporation carried out several studies on coaching. They determined that in the absence of follow-up coaching to their training classes, 87% of the skills change brought about by the program was lost." -- Business Wire, July 30, 2001.
