ROI Of Executive Coaching
- May 22, 2022
- 5 min read
Updated: Feb 9, 2024
Written by: Nikolett Huszák, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
How to measure the result of executive coaching?
’I believe that all successful organizations share two qualities: they are smart, and they are healthy.’ ‒ written by Patrick Lencioni in his book of The Four Obsessions of an Extraordinary Executive: A Leadership Fable.
The Return on investment in the business is an essential question. It seems that companies still need to get numbers and tangible results once the coaching program finished. Why? Because they need proofs about the development journey what the executive achieved so they can implement the coaching program in their HR strategy. I made research when I was preparing for my final exam, and I’d like to share my views about the ROI of Executive coaching.
I would like to highlight some essential elements for being an extraordinary executive. I know there are lot more however in terms of transformation I would like to refer the below ones.
Leadership skills
Humble
Authentic
Clarity in communication
Transparency
Vulnerability
Building community
Strategical thinking
+1 Heart
"X factor" in leadership. Let’s start with a broad definition: executive presence is the ability of the leader to engage, align, inspire, and move people to act.
Taking care of the employees is so important meanwhile taking care and developing the leaders are also crucial. In my previous article, I was writing about the balanced executives. In case a leader is in balance, the team and the organization will be in balance as well and can achieve better results together.
Goals of the coaching progress could have two major areas.
Leadership development
Support in blockings or beliefs
I found some research and books about the return on investment of executive coaching and this time my views based on the experience of my research and the book of Coaching for Performance by Sir John Whitmore.
Benefits of coaching in an organization:
Improved performance and productivity
Improved career development
Improved relationships and engagement
Improved job satisfaction and retention
More time for leaders
Increased innovation
Better use of people and knowledge
People who will go the extra mile
Greater agility and adaptability
High-performance culture
Life skill
Organizations would prefer to see precise numbers about the coaching progress what was the cost and profit for them providing this fantastic opportunity for the high-level leaders.
Actually, I worked with a president & CEO and 2 executives during my final exam and I used a survey once the 5-5 occasions finished. In this survey I asked them about holistic questions which helped them think through each occasion and see the areas and evolution of their development journey and results they realized in their work-life areas thanks to the coaching sessions.
As an example, I asked them how they transformed or what they do differently due to the coaching sessions.
’I will be braver in making-decisions.’
’I will procrastinate less.’
’I will ask help from a coach earlier to support finding my answers in my difficult dilemmas.’
’I will be much more conscious how to do my job.’
’I became more patient, tolerant and considered. I give time for myself to think the situation through and not to act immediately.’
’I’m aware that I’m able to change and transform and don’t stick in my old patterns and thinking methods.’
In case of the executives, the following results were experienced:
Mindset shift
Awareness in their functioning as a human being
Increased responsibility
More effective decision-making process
Finally, the survey didn’t provide numbers however on a deeper level, all the executives could transform and transferred recognitions which implementation will help them using their talents better.
On longer-term
can bring extra profit by their conscious behaviour or
can save money for the company due to their thinking habits.
’A’: CEO & President said that thanks to the coaching progress he will undertake difficult decisions earlier and he will be braver in these situations. In case this happens, he will think these situations quicker, share it with his colleagues, the decision-making process will be also quicker. This would mean more time for other decisions or to taking care of other leadership tasks or more me-time. ’Time is money.’
Besides in case the executive takes the decision two months earlier, more money could remain in the budget, he can have quality sleep and stressed time can be also reduced significantly.
It is hard to measure and put numbers behind a service which mostly affects the transformational process within the people. It’s also difficult to measure how the executive is self-confident or how fast he can make the decisions.
Well-being is about to have balance in your body-mind-spirit and having executives in this balanced state would be essential for the companies.
Usually said that coaching is art and one of the main purposes of coaching is to provide a platform for the clients to find their balance. This state of body-mind-spirit can support them to reach a higher level in their consciousness, efficiency and financial results.
Tim Gallway wrote in his book of Coaching for Performance, that coaching programs should be part of the company culture as it can help the company to further develop. We need to see it in a holistic way, check the coach’s ability, personality, coaching methods, and the environment of the coaching. Besides, the program can be successful if the executive has an open attitude, coachable. If they have realistic goals and there’s trust and chemistry between the coach and them.
Finally, I realised that directly the coaching process cannot be measured however the change and transformation will be experienced on the executives, how they handle their team, their conflicts, how fast they make decisions, how they look at themselves and what they convey to the wider environment.
’As you transform yourself, you transform the world.’ – Anodea Judith
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Nikolett Huszák, Executive Contributor Brainz Magazine Nikolett HUSZÁK ACC is an ICF Accredited Business Coach and Human Marketing Developer. She has 16+ years of professional experience in Airline, Retail, and Property marketing. This knowledge gives her a Helicopter view of how the business runs. She is currently in a change as she just left the multinational company she worked for 16 years and give herself a break to have deeper knowledge and a clear view on her future. She holds a Bachelors's degree in Economics, a Masters's degree in Marketing, an ACC credential, Business coach certification.
Nikolett is passionate about coaching, and it is one of her great passions besides traveling and sports. She loves to support people when they have dilemmas or challenges in their business. Through coaching, she is in charge of inspiring people. Nikolett used to be a professional handball player, and she accomplished several half-marathons.
Resources:
Nikolett Huszák: Final essay on Challenges of Executive coaching (2021)
https://coachfoundation.com/blog/executive-coaching-statistics/
11 Sir John Whitmore Coaching for Performance 2017, 203-210.
12 Benjamin Franklin, 1736
13 W. Timothy Gallway, The Inner game of Work, 1999, 213.
14 Meuse, Kenneth P. De, Evaluating the effectiveness of executive coaching: Beyond ROI?, 2009, 15.
Patrick Lencioni. The Four Obsessions of an Extraordinary Executive: A Leadership Fable. Jossey-Bass, 2000. (181 pages)
