The International Coaching Federation (ICF) defines coaching as “partnering with clients in a thought provoking and creative process that inspires them to maximize their personal and professional potential.”
The Return on Investment (ROI)
Historically, coaching has been viewed as the answer to a toxic personality or proactively, as “a soft solution,” absent of a Return on Investment (ROI)
Because of that, it has been open to criticism in regard to both its usefulness and effectiveness. However, in recent years and with a seismic shift in how coaching is burgeoning in the business environment, these stereotypes are slowly evaporating, especially as organizations start to witness the results of a successful executive coaching engagement.
The ROI yields both intangible and tangible results.
Forbes reports organizations attest to improved relationships within teams, peers and key stakeholders, increased commitment to the organization and increased job satisfaction.
Quantitative data demonstrates increased productivity and greater retention which results in lowering the significant cost associated with lowering turnover. Therefore, delivering direct financial returns coaching has when deployed.
The ICF reports that 86% of organizations ranging from Fortune 100 to small, mission driven not-for-profits stated that coaching provides a clear ROI and of those 96% would repeat their experience being coached.
- One third of all Fortune 500 companies use the services of a coach
- According to a survey conducted by the ICF, 95% of participants rated their coach as “good” or “excellent”
- A study conducted by the ICF, 68% of individuals who paid for coaching realized their initial investment back, with a median ROI of 3.4
- Companies typically realize a much higher rate of ROI with the median being seven. A staggering 19% of companies surveyed realized a ROI of more than 50 times