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The ROI of Leadership Coaching

May 19, 2020 HR

Tough times call for difficult decisions. COVID-19 has put business leaders in unchartered waters, workforces in remote work situations and companies facing furloughs and layoffs. Many great leaders rely on the expertise of a leadership coach to help guide them, even in the best of times. As leaders of organizations evaluate the future, a leadership coach is a valuable asset to help navigate the windy road ahead.

In the face of economic adversity, there may be an inclination to eliminate these kinds of services. However, now just may be the time when organizations can justify the investment in coaching with a better understanding of the ROI. Senior leaders set the tone for creating the right environment in your company. It is critical now more than ever to understand how leader behaviors and performance are impacting the bottom line.

A Fortune 500 company wanted to study the ROI of leadership coaching. They found that 77% of respondents indicated that coaching had a significant impact on at least one of nine business measures. In addition, they uncovered that overall productivity and employee satisfaction were the most positively impacted areas (which in turn has an impact on customer satisfaction, employee engagement, quality, annualized financial results, and more). In all, their study concluded that Leadership Coaching produced a 788% ROI. The study noted that excluding benefits from employee retention, a 529% ROI was produced. (Executive Briefing: Case Study on the ROI of Executive Coaching, Merrill C. Anderson, Ph.D., Metrix Global ,LLC)

There are softer measures that will be impacted by a coaching investment. The leader being coached will no doubt improve working relationships, have an increased commitment to the organization and do a better job of developing their own team members. At the same time, you should expect bottom line impact through increased revenue, increased productivity, higher customer satisfaction and market share and reduced turnover.

The reality is that there is no better investment to make in effective leadership that can lead and deliver results, particularly during chaotic times like these. We would encourage you to continue your investment or start a new coaching relationship now as it will send a strong positive message to the organization and may give you a significant return to the bottom line!

About the Author

Bill Meade has an extensive business career at senior levels with a strong background in business process outsourcing, not for profits, and financial services. He left the corporate world in 2005 and formed a partnership which focused on investments in the retail food segment and business process outsourcing. During the past two years, Bill has devoted a considerable amount of time assisting three not-for-profit organizations with long term strategy and fundraising. During Bill’s years in the corporate world he was known for being an exceptional coach to his senior leaders and staff. As a leader that understands the benefit of professional development, Bill’s coaching participants found great benefit in his wisdom and focus to leverage their strengths and grow within their organizations. Bill’s firm belief is that growth in an organization comes from ongoing and continued development

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