This week, in celebration of International Coaching Week, I continue to reflect on the brief summary of a longer study of trends in Executive Coaching published by DBM in partnership with the Human Capital Institute (available via inquiries@dbm.com).
43% of respondents suggested that their organisations measure the financial impact of coaching, with 77% of those who measure financial impact suggesting the return on investment is at least equivalent to the investment and in some cases as high as 500%. The factors most often tracked were given as:
- Output: 33%;
- Quality: 23%;
- Cost: 23%;
- Turnover: 21%.
Reflecting on my own practice, I wonder what precisely is being measured here and over what time period. For coaching almost always offers the “double whammy” benefits of helping the person seeking coaching to handle situations more effectively during the coaching and leaving them more equipped to handle situations that take place long after coaching has finished. What would it take to measure the life-long ROI from coaching for a particular Executive?
Yes, this is certainly a possibility – I start some Executive Coaching relationships by conducting an assessment or collecting 360 degree feedback. Information also arises naturally during the course of coaching about areas where people feel confident or less so.
Of course, identifying strengths and development needs is a starting point rather than an end goal – an opportunity to explore how best to leverage strengths or address development needs.
Thank you for posting, Albert.