ROI for Coaching
My job is to help you succeed and realize a return on your coaching investment many times over.
It’s expensive for an executive to fail
Writing for Fortune*, Anne Fisher points out in her article “New Job? Get a Head Start Now”** that about 40% of executives who change jobs or get promoted fail in the first 18 months. She goes on to note that research shows this failure rate has “stood at about 40% for at least 15 years now.”
It pays to help executives succeed
Matt Symonds† January 21, 2011, article “Executive coaching – another set of clothes for the emperor” on Forbes.com reported that corporate America is spending more than $1 billion annually on executive coaching. This growth in coaching is due to a heightened focus on developing high-potential leaders (rather than a remedial effort to help derailing employees), and the leaders themselves say it is working.
According to Symonds, a recent global survey by PriceWaterhouseCoopers and the Association Resource Centre found that the mean return on investment in coaching was seven times the initial investment, and over a quarter of coaching clients reported a stunning ROI of 10 to 49 times the cost. (According to International Coach Federation, a non-profit organization dedicated to the integrity of professional coaching, individual executive coaching clients, as distinct from corporate clients where the coach is retained by the corporation on behalf of the executive, also reported a strong ROI on their coaching investment, with a median ROI of 3.44 on the initial investment.)
* February 17, 2012
** Anne Fisher is the “Ask Annie” columnist and management/workplace contributor for Fortune.
† Matt Symonds is the business education, entrepreneurship and management writer for Forbes.com.