Thursday, November 08, 2007

ROI and Corporate Coaching - any studies?

I often get requested asking about any research or articles correlating ROI with coaching. Most of the original research tied the improved effectiveness of training when coaching occurs in conjunction. It is still referenced a lot but the research goes back almost ten years. EVERYONE seems to continue to quote the same old stuff and it is often not properly reverenced. Figures like 265% return are bandied about without any concern for validity or context. While I don't concur with all of the information I have cited below, it represents a good start on this topic.

The most recent article that I have with some concrete analysis is:
http://www.cpiworld.ca/default.asp?tier_1=21&tier_2=27&content=51

It does reference Nortel study done by Metrixglobal . Having worked for Nortel in the past, I remain skeptical but do like their study which is listed below.

A very good article and references can be found here:
http://www.coachingnetwork.org.uk/ResourceCentre/Articles/ViewArticle.asp?artId=79

Here is the one that I like: www.metrixglobal.net/images/pdfs/metrixglobal_coaching_roi_briefing.pdf

Serpa has done some surveys regarding coaching over the past two years and they have a nice ROI formula here:
http://www.sherpacoaching.com/GlobalCoachingSurvey2007Delivery.pdf

Manchester Study is constantly the one that is quoted but it is very dated by now and hard to find original source (which I do have somewhere and is bound to be referenced in one of the above links):

Manchester conducted what is believed to be the first major study to quantify the business impact of executive coaching.

Half of the executives in the study held positions of vice president or higher (including division president, general manager, chief executive officer, chief financial officer, chief information officer, partner, principal, and practice leader). Almost six out of 10 (57%) executives who received coaching were ages 40 to 49, and one-third earned $200,000 or more per year.

Among the results of the study:

· Manchester’s coaching programs delivered an average return on investment of
5.7 times the initial investment in a typical executive coaching assignment — or a return of more than $100,000 — according to executives who estimated the monetary value of the results achieved through coaching.

· Among the benefits to companies that provided coaching to executives were improvements in:

Productivity (reported by 53% of executives)

Quality (48%)

Organizational strength (48%)

Customer service (39%)

Reducing customer complaints (34%)

Retaining executives who received coaching (32%)

Cost reductions (23%)

Bottom-line profitability (22%)

· Among the benefits to executives who received coaching were improved:

Working relationships with direct reports (reported by 77% of executives)

Working relationships with immediate supervisors (71%)

Teamwork (67%)

Working relationships with peers (63%)

Job satisfaction (61%)

Conflict reduction (52%)

Organizational commitment (44%)

Working relationships with clients (37%)

Besides a Fortune Inc article which must be referenced somewhere above as well, here is another “popular” article often sited that is a bit of an overkill to me:
http://www.washingtonpost.com/wp-dyn/articles/A45725-2004Aug6.html

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