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Why Use Coaching?

Executive Coaching increases the effectiveness of individuals and therefore the organization. The rapidity of change within business has a Slinky effect for many executives. The Slinky effect occurs when accelerated change exceeds integrated learning. Stretched to the limit in terms of using what is known and has worked in the past, the executive finds him or her self unable to meet the growing demands of more responsibility and/or strategic initiatives. Executive Coaching creates an up close and personal learning container that supports the individual to expand the possibilities to meet the daily challenges.

Benefits of Coaching

Some benefits of executive coaching are:

Business Case for Coaching

Executive Coaching increases the effectiveness of individuals and therefore the organization. The rapidity of change within business has a Slinky effect for many executives. The Slinky effect occurs when accelerated change exceeds integrated learning. Stretched to the limit in terms of using what is known and has worked in the past, the executive finds him or her self unable to meet the growing demands of more responsibility and/or strategic initiatives. Executive Coaching creates an up close and personal learning container that supports the individual to expand the possibilities to meet the daily challenges.

Benefits of Coaching

Some benefits of executive coaching are:

Coaching gets to the bottom line

Success is made from many factors; it is not easy to measure and attribute benefits from coaching. Through personal comparisons of experiences before and after coaching most people establish a value for coaching. Still, we have important evidence that coaching works. Here are a few examples:

Research on Executive Coaching

The Manchester Consulting Group (McGovern et al., 2001) conducted a study designed to examine the effects executive coaching had on an organization’s profit and loss. Participants were 100 Northeastern and mid-Atlantic executives who completed coaching between 1996 and 2000. Their coaching experiences consisted of involvement in customized coaching programs that were either change- or growth-oriented (“remedial” or “developmental” in our terms) or a combination of the two. The coaching programs ranged from six to twelve months in duration and were delivered by coaches who had either Ph.D. or MBA degrees and who had at least twenty years of organizational development or management experience and training in executive coaching. The sample was balanced to include both genders, an age range from 30 to 59, and a mixture of races and executive income levels.

Each executive was interviewed over the telephone by one of two independent contractors, who employed a standardized interview protocol (McGovern et al., 2001). During the interviews, executives provided a rating of their overall coaching satisfaction, described their coaching goals and indicated whether their goals had been met. Respondents were also asked to describe any new behaviors they developed and how often they engaged in these behaviors, and to identify aspects of the coaching they found to be effective or ineffective. Executives also estimated financial gains to the business and any tangible and intangible benefits of the coaching. Whenever possible, the executive’s boss or a sponsor from human resources was also interviewed.

Executives established their own calculation methods for determining their subjective estimate of the financial impact of the return on investment (ROI) of the coaching investment on their businesses (McGovern et al., 2001). They were then asked to rate their confidence in this number. To eliminate outliers and ensure that estimates were more conservative than liberal, the researchers set an upper estimate of $1 million. The researchers also made adjustments in their attempt to assure that the ROI
was the result of coaching and not other factors.

Regarding the overall satisfaction of the coaching process (McGovern et al., 2001), 86% of executives and 74% of stakeholders reported being “very satisfied” or “extremely satisfied.” Learning was categorized into competencies that executives expected to gain as a result of coaching:

Organizational outcomes reported by respondents in this study were positive but not overwhelming. Concerning tangible benefits, 51% reported increased productivity; 48%, increased work quality. Less commonly reported outcomes included: Regarding tangible benefits, 51 percent reported increased productivity; 48 percent reported increased work quality; 48 percent, increased organizational strength; 39 percent, improved customer service; 34 percent, reduced complaints; 32 percent, cost reductions; 22 percent, increased bottom-line profitability; 14 percent, increased top-line revenue; 12 percent, decreased turnover; and 7 percent reported other business effects.; 22%, increased bottom-line profitability; 14%, increased top-line revenue; 12%, decreased turnover; and 7% reported other business effects.

The reported intangible benefits were much stronger with 77% of the executives reporting improved relationships with direct reports, 71%, improved relationships with stakeholders; 67%, improved teamwork; 63%, improved relationships with peers; 61%, improved job satisfaction, 52%, reduced conflict; and 44% reported increased organizational commitment.

Adapted from: The Effectiveness of Executive Coaching: What We Know from the Literature and Experience And Where We Should Go From Here, by Sheila Kampa Kokesch, Ph.D., Randall P. White, Ph.D. in Handbook of Organizational Consulting Psychology (Jossey-Bass, 2002)

Executive Coaching: With the limited research available there seems to be some positive results that help coaching. For example, 94% of million dollar earners use a coach (Simply business, February/march, 2005).

However, awareness had higher percentages of agreement for sustaining change. The statements for awareness and responsibility measured the effectiveness of sustaining change based on combined percentages of statements rated as "highly effective" or "somewhat effective". The percentage of agreement for awareness statements are as follows: Understanding how my actions impact others, 93.8%; challenged my own actions, 89.6%; more sensitive to others, 85.5%; better relationships, 81.2%; and better balance in my life, 70.9%. The percentage of agreement for responsibility statements are as follows: applied to future choices, 91.7%; maintained goals achieved, 83.4%; applied to other areas in life, 83.4%; encouraged others to achieve, 81.3%; and stretched my abilities, 81 .3%.

But research from Case Western Reserve University's Weatherhead School of Management shows that the impact of coaching-like training can last seven years.

40% of Fortune 500 companies now use professional coaching services (Wade, 2003). Executive coaching is an interactive, focused process designed to help employees develop rapidly. It is goal-oriented, and specifically tailored to each individual. The coaching process usually includes assessments as well as outcome measures.

Executive coaching can result in improvement in many areas including increased productivity and work performance, better teamwork, increased job satisfaction, and decreased (costly)employee turnover. The return on the coaching investment is significant. In fact, a recent study reported in the
Washington Post (Joyce, 2004) found that a company utilizing coaching gained 3.3 million in 2003 which resulted in a 689% return on the company's investment. Employee success is crucial for the individual and company well-being as well as the financial bottom line for the employee and the company.

Debbie Campbell Wade, S. (2003) Coaching firm rallies businesses. Austin Business Journal. Joyce,A. (2004) Reflecting on office behavior; Career coaches help people see themselves from co-worker's perspectives. Washington Post, F.04

Another independent research study by Michigan Based Triad Performance Technology shows that a six month coaching.com intervention at a well known global Telecom Company resulted in more than $2 million positive and immediate impact to its bottom lines. The Triad study reported that coaching brought positive and measurable results in four key areas:

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