What are the benefits of business coaching or executive coaching?
You must have heard about leadership coaching in your company or in your friend’s company. Did you wonder if this business coaching or executive coaching is a passing fad. Are there any real benefits to it?
There are a number of studies and research conducted on the benefits of business coaching. There was a definitive study done by Manchester Consulting Group in 2001, which suggested a whopping 790% return on investment from business coaching.
Another study by Fortune magazine has put that figure at 600% return on investment.
Companies who combine coaching with training increase employee productivity over 80% according to the Bureau of Justice statistics based on study conducted in 2001.
Now apart from the ROI, which is the hard benefit, there are also numerous soft benefits of coaching as per research conducted on Fortune 1000 companies:
- Better working relationships with direct reports (reported by 77% of executives)
- Better working relationships with immediate supervisors (71%)
- Better teamwork (67%)
- Better working relationships with peers (63%)
- Greater job satisfaction (61%)
- Conflict reduction (52%)
- More organisational commitment (44%)
- Better working relationships with clients (37%)
Under what scenarios, are companies employing a business coach?
As per Harvard Business Review, the top 3 reasons are:
- Develop high potentials or facilitate transition (48%)
- Act as a sounding board (26%)
- Address derailing behaviour (12%)
If we flip the coin, what about the executives viewpoint on coaching, are they enjoying such coaching sessions?
Well, yes, as per survey conducted by Stanford Graduate School of Business,
- 100% of CEOs were receptive to making changes based on feedback
- Nearly 100% said they enjoy receiving coaching and leadership advice
- 78% said it was their own idea to be coached
No wonder, 40% of Fortune 500 companies use business coaching to develop their executives and to grow further.
