Like seashells along the beach, I collected some insightful stats today in support of Executive Coaching and the use of coaching to support learning and development strategies. Coaching is clearly worth the investment.
Did you know?
Effective managers learn 70% on-the-job, 20% from other people, and only 10% from courses and reading.[1] Combine methods for maximum return on investment (ROI), impact and growth.
Combining training and follow-up coaching leads to significantly higher productivity (an 88% increase compared with 22.4% from training alone). [2]
Coaching to support learning and development strategy works. When combined, training supported by follow-on targeted coaching will yield better results than training alone. Example measurable results from academic and professional studies follow. Coaching is often measured against specific competencies and behavioral outcomes in disciplines such as leadership or sales.
Coaching-supported learning can be a critical success factor when used to support business turnaround: by working with individual leaders, each gains “clarity around their personal operating frameworks, thinks longer term and with focus on issues that would make a difference to business results. The pace of change means timescales between critical decisions are short. Coaching helps each sales leader create their own roadmap.”[3]
U.K. Recruiter cites industry statistics on Coaching:[4]
- A recent study of executive coaching in a Fortune 500 firm reported a 529% ROI and significant intangible benefits to the business
- A survey by Manchester Inc. of 100 executives found that coaching provided an average ROI of almost six times the cost of the coaching
Benefits of non-directive coaching[5] vs. training and directive management
- The Coaching Approach: Results/Outcomes were significantly more positive for those who believed they were being helped to make discoveries, that their thoughts and actions were being challenged, and that they were supported
- Training Alone: Outcomes were reported as less positive for those who felt they were being provided with information
- Directive Management: There was no link to positive outcomes where individuals felt they were being advised or told what to do
Managers who worked with an executive coach were significantly more likely than managers who did not work with a coach to (a) set specific goals (d = 0.16; p < .01), (b) solicit ideas for improvements from their superiors (d = 0.36; p < .01), and (c) obtain higher ratings from direct reports and superiors in the second year (d = 0.17; p < .05)[6]
Does YOUR firm / organization use Coaching?
References
[1] Center for Creative Leadership, quoted in CRF Research Report April 2014
[2] Olivero, G., Bane, K. D., & Kopelman, R. E. (1997). Executive coaching as a transfer of training tool: Effects on productivity in a public agency. Public Personnel Management, 26, 461–469.
[3] John Renz, Director of HR at Novae, via CRF Research Report April 2014
[4] http://ukrecruiter.co.uk/2014/07/09/improving-organisations-top-executive-coaching/
[5]De Haan, E., Duckworth, A., Birch, D. & Jones, C. Consulting Psychology Journal: Practice and Research, 65.1, 40-57, 2013
[6] Smither, J. W., London, M., Flautt, R., Vargas, Y., & Kucine, I. (2003). Can working with an executive coach improve multisource feedback ratings over time? A quasi-experimental field study. Personnel Psychology, 56, 23–44. doi:10.1111/j.1744-6570.2003.tb00142.x
