When it comes to business, the bottom line is critical for the sustainability of the business. That’s why today’s most successful leaders and top executives are constantly looking for ways to improve their company’s financial performance and ensure their competitive advantage. Engagement is a critical component. Executive coaching is one tool that can help them do just that. But don’t take our word for it — there’s a great deal of new evidence showing that the ROI of executive coaching is big, and can have a big impact on a company’s bottom line!
ROI studies prove that meaningful growth happens for companies who implement executive coaching with their management teams, as shown by iPEC Coaching:
A study by the Hay Group, for example, found that:
“Companies who invested in executive coaching saw an average ROI of 5.7 times their investment . . . A third of all Fortune 500 companies utilize Executive Coaching as standard leadership development for their elite executives and talented up-and-comers.”The Hay Group
Other studies have found even greater returns on investment…
“Coaching yielded an ROI of 7.9 times the initial investment.”Manchester Consulting
“Coaching yielded an ROI of a staggering 11 times the business’ investment in their executive coaches.”MetrixGlobal LLC
“Figures of between 500% and 700% commonly reported as being a reliable ROI for executive coaching.”Anderson
What makes executive coaching a no-brainer?
Clearly, coaching can be a powerful tool for business leaders who want to improve their company’s financial performance. But what exactly is it about coaching that brings about such impressive returns?
First of all, coaching helps leaders develop a clear understanding of their strengths and weaknesses. While this may seem obvious, research shows that many people have a hard time identifying these characteristics in themselves. We all have things we are good at and things we are not so good at, but knowing what those things are and acting on them makes all the difference. Once identified, coaching can help leaders develop and hone the specific skills they need to be more effective in their roles. This helps leaders make better decisions, set clear goals, effectively communicate their vision to their management team and employees, and utilize time and resources more effectively and efficiently. How do you choose a coach that fits what you need?
Choosing an executive coach can be an important first step to improving a company’s management effectiveness. But you need to keep in mind the ultimate goals of your company, your executives, and your individual managers. If your company’s financial performance is a top priority, for example, then it would certainly make sense to find an executive coach with a strong financial background.
What’s more, you should be sure that your coach has the experience and credentials that fit what you are looking for as well. One side effect of the last couple of years of people working from home has been an influx of self-proclaimed executive coaches with no real credentials to speak of. Hiring the wrong coach can lead you down the wrong path starting day one, so choosing a highly trained and certified coach is of utmost importance, so don’t be shy about asking for credentials.
Why should you look for an executive coach with a strong background in banking and finance?
Ultimately, running a successful business is creating and executing a strategy that produces results; delivering positive results and a strong bottom line. As such, tapping the experience of an executive coach with a strong background in banking and finances is imperative to expedite results. Even something as simple as using the same terminology can cut down immensely on back and forth, allowing both of you to maximize your time and energy.
What’s more, an executive coach with a banking background can bring a valuable, financially-focused perspective. If necessary, they can also identify what banks are looking for in companies with ambitious financial objectives. Imagine having that kind of expertise on your side!
How do you explore your executive coaching possibilities?
Read about Marian Howley’s 30 years of banking experience before becoming a business coach.
All of the above can have a direct impact on a company’s financial performance. The potential long-term benefits of executive/business coaching, such as increased profitability, improved productivity, and employee engagement. It’s clear that investing in executive coaching can potentially yield impressive returns and can be a wise decision for any business.
If you’re thinking about the ROI of executive coaching in your business, be sure to do your research and choose a coach with a strong financial and business background. With the right coach, you can see real return on investment in relatively little time — and help your business reach new levels of success.
Contact M Howley Consulting to discuss how you could see a great ROI on your coaching investment!