The Coaching ROI

From the desk of Kamahl Barhoush, Elite Master Coach

Like any investment a business owner makes, there must be a clearly defined ROI for it to be a sound business decision.

With tangible items such as wholesale prices and markups, this is very easy to visualise, but when it comes to intangibles such as coaching, there have been a myriad of subjective views… until now.

Such a rapidly scaling growth of coaching in the business sector has caught the attention of many research institutions, who have all asked the question “Is it really worth it?”. Well, the numbers are in, and they are better than anyone expected.

From an investment standpoint, there are entry levels that start at FREE and go up to $10,000 per month or more. So how does a business owner know the best approach to take?

There are 3 answers to solve this problem.

  1. If a business owner knows they are ready to commit, prepared to invest and are ready to talk real strategies, then connect with a coach right now. Don’t worry about pressure sales in strategy calls, it’s going to happen… you’ll be sold to, so nothing to worry about. If you’re in business and you hate the sales conversation (going either way), then you DEFINITELY need to chat with a coach!
  2. Create a habit of implementation. If you’re not quite ready for the full dive into 1-1 coaching, start with an incremental program like the 21-Day Challenge. Each day for 21 days, dedicate 30-45min being guided step-by-step through business tools 30 years in the making. Investment level negligible, and a powerful habit forming tool to skyrocket business growth
  3. Complete the 60-Point Diagnostic. This is the most powerful tool to highlight exactly where you must focus on next. In 97% of cases, the results that show up in the Diagnostic are different to what the business owner originally thought they needed. You see, we cannot solve a problem with the same mindset that created it, so the solution the business owner thought they needed was from a mindset of problem. The 60-Point Diagnostic gives an objective, birds-eye view of your business, right now (oh, and its free).

As far as ROI, below are 4 institutions that have done the research. Their research findings have developed a crystal clear, single number that represents ROI, that business owners can use to answer the question “Is it a good investment for my business?”.

Well, if 529% ROI is a good number for your business, then go ahead and invest!

MetrixGlobal LLC. – Executive Briefing: Case Study on the Return on Investment of Executive Coaching

  • The Bottom Line: Coaching produced a 529% return on investment and significant intangible benefits to the business. The study provided powerful new insights into how to maximize the business impact from executive coaching.
  • 77% of the 30 respondents indicated that coaching had significant or very significant impact on at least one of nine business measures.
  • Overall, productivity (60% favorable) and employee satisfaction (53%) were cited as the most significantly impacted by the coaching.
  • The next most frequently cited as being significantly impacted by coaching were work output (30%) and work quality (40%)

The Linkage Leader, What ROI Studies of Executive Coaching Tell Us, By Merrill C. Anderson, Ph.D. 

  • 58% of those clients whose coaching experience was limited to working on the more tactical issues reported that their coaching significantly impacted the business. In contrast, 100% of those who’s coaching progressed to work on more strategic issues
    reported making a significant impact on the business.
  • 70% of all monetary benefits attributed directly to the coaching people received came from clients who worked on the more strategic issues.
  • Less than half (43%) of all clients progressed to work on more strategic issues. These findings suggest that there is additional opportunity to drive greater strategic value from
    coaching. Of course, not all clients have the opportunity or need to work on the more strategic issues, however, for those clients who do have these opportunities it is in everyone’s best interest to seize these strategic opportunities

Harvard Business Review (Jan-Feb 1998) entitled The Employee-Customer-Profit Chain at Sears, by Rucci, Kirn and Quinn,

  • A model was developed indicating that a 5 “unit” increase of employee attitude led to 1.3 “unit” increase in customers’ positive impression, resulting in 0.5% increase in revenue growth.(Public Personnel Management; Washington; Winter 1997; Gerald Olivero; K Denise Bane; Richard E Kopelman
  • One study examined the effects of executive coaching in a public sector municipal agency. Thirty-one managers underwent a conventional managerial training program, followed by 8 weeks of one-on-one executive coaching. Training” which included goal setting, collaborative problem solving, practice, feedback, supervisory involvement, evaluation of end-results, and a public presentation” increased productivity by 22.4%.
  • Training and coaching increased productivity by 88%, a significantly greater gain compared to training alone.
    (Public Personnel Management; Washington; Winter 1997; Gerald Olivero; K Denise Bane; Richard E Kopelman)

ICF 2009 /

  • Coaching in organization and leadership settings is also an invaluable tool for developing people across a wide range of needs. The benefits of coaching are many;
    • 80% of people who receive coaching report increased self-confidence, and
    • Over 70% benefit from improved work performance, relationships, and more effective communication skills.
    • 86% of companies report that they recouped their investment on coaching and more

So what can you do to start your next phase of business and profitability growth?

  1. Book a Strategy Session and connect with a coach right now.
  2. Join the next 21-Day Challenge
  3. Complete the 60-Point Diagnostic

Enjoy your business, and may it bring you all the successes you have been working so hard towards!

Leave a Reply

Your email address will not be published.