Finding and living in ALIGNMENT with your inner purpose is the foundation for fulfilling your outer purpose. It is the basis for true success. - Eckhart Tolle

Kristin Kaufman

 

Great insight on business leadership and personal alignment.

Leadership & Executive Coaching — is there a measurable ROI?

 

My philosophy for leadership and executive coaching is that it is all about RESULTS and Sustainable transformation! The key is how do we measure progress? There are many studies we can reference; I am including only a few for you to review. Linked below are additional articles you can read as well.

According to The Manchester Study, the reported average return on investment is 5.7 times greater than the cost of coaching. The study found:

  • 77% improvement in working relationships
  • 53% increase in productivity
  • 48% increase in quality
  • 39% increase in customer service
  • 43% reduction in custom complaints
  • 23% reduction in costs
  • 22% improvement in bottom-line profitability

Other studies show that over 93% of executives who have received executive coaching would recommend it to others. Furthermore, 20% of major U.S. corporations use coaching to help refine and grow their businesses. In fact, in the Alignment, Inc. client satisfaction survey from 2009, our clients stated an average ROI of 70-80% through the services of Alignment, Inc. and they measured this primarily by three key areas:

  • Clarity and alignment with direction (individual and group)
  • Greater execution against defined plans
  • Improved productivity within individual and teams

A few additional key perspectives:

"…a well-executed coaching program can achieve 500% and 700% returns on investment." - Executive Coaching Study, 2001, by Manchester Consulting

"The goal of coaching is the goal of good management: to make the most of an organization's valuable resources." - January, 2008, Harvard Business Review

"Coaching now is part of the standard leadership development training for elite executives and talented up-and-comers at IBM, J.P. Morgan, Chase, and Hewlett Packard. These companies are discreetly giving their best prospects what star athletes have long had: a trusted advisor to help reach their goals." - 2008, CNN.com

In the Alignment, Inc. 2009 client satisfaction survey, respondents stated:

  • The average return on investment from using Alignment, Inc. services was 80% - significantly greater than the average in this market.
  • The top 3 reasons cited were:
    • Improved productivity within teams and/or individually
    • Clarity and alignment with vision/direction - teams and/or individually
    • Greater execution against defined plans

There is a proven direct correlation between individuals seeking 'alignment' between themselves, their specific position, and the company for which they work and the overall return to the company. Individual and team coaching can strengthen, redirect or enhance employee performance relative to the company's overall goals. In addition, our consulting services drive a team and organization toward great alignment and will help to release the power of everyone moving in the same direction. Finally, the benefits of objectivity through a fresh set of lenses can bring disparate perspectives to a common and overall beneficial conclusion.

Additional ROI Articles you may want to read: