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COACHING PAYS Return
on investment from coaching: £10,000 for 1hour
Our client, an IT company, had a production issue. A decision had been made to appoint a temporary contractor
at the cost of £10,000 to add the extra resources the client thought they required to complete some projects.
A coaching discussion threw
more light on the subject. The client was able to come up with several new options, all of which used existing internal resources.
At the same time, the new
options also gave long term advantage. In effect solving a problem, rather than camouflaging it with temporary fixes.
Not only was there an instant saving of £10,000 but also the saving on internal costs of recruiting and
managing an outside contractor.
Retail turnaround – An estimated return on investment (ROI) from coaching of £50,000 in year
1
A small two store retail business was making a loss.Working with the two main directors over a 6 session period the following
results were achieved: New management systems introduced. Commitment to implementing a better stock control system identified savings of several hundred pounds per week. A projected annual increase of £50,000 net profit by implementing a profit growth plan including doubling special
offer campaigns, optimising stock, and a pricing review. Within
the first two months the business had started to make profits again New
confidence amongst the directors Increased management
and financial reporting skills More motivated staff A saving equivalent to more than one day a week in directors' time,
through more efficient use of resources – enabling the directors to concentrate on strategic planning and ‘working
on’ the business
Thinking
bigger
As part of a profit growth plan, we helped one client increase
the size of projects they won. There was an internal belief about their ability to win larger projects, based on a feeling
they would need to add more resources before they were ready.
Working with senior staff, Martin was able to challenge this belief.
The result, after one workshop
and a few follow-up coaching sessions, the belief completely changed to ‘we are ready to deliver larger
projects now’. And just a few weeks later they had signed up two projects worth a total of £100,000.
A massive return on investment from coaching.
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The 2009 Sherpa Executive Coaching Survey
Although
this research is US based, many of the findings are relevant to the UK market.
Every crisis calls for great leadership. Today,
a generation of leaders is being severely tested. One bad decision, even one bad attitude in top management can cost people
their jobs. That’s why executive coaching is an essential development tool for leaders at every level….
read more
Research on return on investment |
In 2001 MetrixGlobal conducted a case study on the ROI of executive coaching. The conclusion:
"coaching produced a
529% return on investment
and significant intangible benefits to the business.
Including the financial benefits from employee retention boosted the overall
ROI to 788%".
'Coaching and Buying Coaching Services' 2004, produced by The Chartered Institute of Personnel
& Development (CIPD) concluded:
- 93% of respondents agree that coaching and mentoring are key mechanisms for transfering learning
from training courses back into the workplace.
- 99% of respondents agree that coaching can deliver tangible benefits to both individuals and
organisations.
Combine training with executive coaching to increase results |
Coaching helps in several areas to increase performance from training:
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Helping to embed and apply the skills when training has ended and the individual
is back doing the job.
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Ensuring the beliefs, values and behavours of the individual are aligned
with the organisational objectives.
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Increasing commitment and motivation to reach goals
In one study it was found that when coaching was used to support training,
companies found that the average increase in productivity was 88% compared to when training alone was used (only 22.4%).
Source: European Coaching Institute).
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