| Coaching for business executives is a | | | | We all know the adage "People don't quit |
| hot topic, featured recently in many | | | | the company; they quit the boss." |
| well-known publications, from The Wall | | | | Identifying the irritant that causes |
| Street Journal to the Harvard Business | | | | someone to resign and developing a |
| Review. These stories have linked | | | | program to remove the problem or |
| coaching to performance improvements in | | | | dysfunction can have a direct benefit |
| executive effectiveness, higher | | | | for the leader and the entire |
| executive retention rates, and increased | | | | organization including the community of |
| job satisfaction. As executive coaching | | | | relationships that executive operates |
| becomes a mainstream leadership | | | | in. What criteria should you consider in |
| development approach, many have begun to | | | | selecting a coach? • Get the right |
| ask the obvious business question "Is | | | | skills match. The Harvard Business |
| there a clear return on investment (ROI) | | | | Review states that good coaching is |
| from executive coaching? And if so, what | | | | based on "…a small number of |
| is it?" Each coaching engagement is | | | | disciplines, including consulting, |
| unique, every coach has their own | | | | management, organizational development, |
| approach and style, and every leader has | | | | and psychology." I agree, and would add |
| their own set of issues and challenges. | | | | that the best "mix" will vary, based on |
| There are some "fundamental truths" and | | | | the situation and end objective. • |
| patterns to coaching, however each | | | | Address core issue(s). If your executive |
| coaching engagement becomes a unique | | | | team has done the offsite "teambuilding" |
| program and experience. We beleive in | | | | routine, but always seems to revert back |
| the adult learning model where an | | | | to the norm, then most likely you have |
| individual has to be disturbed about the | | | | been addressing symptoms instead of root |
| present state enough to want to be | | | | causes. Having an understanding of |
| coached and enabled to produce a better | | | | change management and the psychological |
| future. A handful of studies do exist on | | | | drivers will help dislodge frozen and |
| coaching ROI. A MetrixGlobal study | | | | unsuccessful change initiatives. |
| pegged the ROI within a Fortune 500 | | | | Focusing on the core issues that impact |
| company they studied to be 529%; Fortune | | | | individual behaviors one issue at a time |
| Magazine's broad coaching study came in | | | | is the best way to impact change. |
| at 570%. The benefits of a high-quality | | | | Maximizing ROI for the business must be |
| coaching program may be higher than this | | | | done in the context of the strategy, and |
| because of the subjective value and | | | | desired business outcomes. This is where |
| impact on people. In fact, one of our | | | | identifying the individuals impact on |
| clients describes coaching as his secret | | | | the systemic outcomes is vital to |
| weapon. Today's leaders have a lot to | | | | stimulating the desire to change. • |
| gain from a good executive coach. | | | | Cost. Executive coaching is relatively |
| Because coaching is done one on one they | | | | inexpensive; we are typrically not |
| receive feedback in private, where their | | | | talking about a six-figure consulting |
| reputation and image is protected as | | | | engagement. In today's "Wild West" of |
| they work through issues in a private | | | | executive coaching, rates can run from |
| and confidential setting. There is a | | | | less than $1000 to over $10,000 a day - |
| freedom to admit vulnerability and an | | | | but in general, a highly-effective 6 |
| opportunity to tap into an executive | | | | month program can be done for |
| coach's experiences, resources and | | | | $25,000-$50,000. This certainly compares |
| network. How can you maximize the ROI of | | | | favorably to the annual compensation and |
| your own executive coaching program? | | | | dollar contribution impacted by the |
| First, let's look at where the return | | | | executive. The "right" executive coach |
| comes from. Certainly, there is an | | | | is almost always worth the price. Its |
| expectation of increased effectiveness | | | | clear that executive coaching is an |
| from the executive; this has been the | | | | investment of time, money, people and |
| focus of most of the traditional ROI | | | | trust. Where else can you invest $25,000 |
| studies. And there are soft skills | | | | and address multi million dollar issues? |
| impact that may be even more significant | | | | Next time you consider how to get the |
| than direct dollar results. Consider the | | | | biggest bang for your buck in leadership |
| impact of attrition on an organization. | | | | development consider executive coaching. |