Many senior executives have the potential to further improve the profitability of their organisation by enhancing the effectiveness of their workforce, from top to bottom.
Unfortunately, not all such executives bring positive change; with their different cultures, styles, agendas and often clashing egos, acting instead as a source for conflict. Sometimes even the most talented need a little help.
Coaching has become one of the most effective ways to cultivate the professional and personal skill-sets of teams and individuals. It has proven results with a significant return on investment.
The importance of coaching
The latest report from the Institute for Corporate Productivity (ICP), Creating a Coaching Culture, has highlighted the current state of play with regards to coaching within organisations; revealing that only 20% of businesses are currently using coaching in an effective way.
Given the strong desire for organisations to become more adaptive and responsive to shifting market conditions, the report highlights four strategies that should be deployed to improve their coaching competencies.
1. Establish the importance of coaching
2. Transfer knowledge via coaching
3. Get early adopters involved first
4. Build coaching accountability, capability and measurement
Industry statistics on Coaching
• A recent study of executive coaching in a Fortune 500 firm reported a 529% return on investment and significant intangible benefits to the business
• A survey by Manchester Inc. of 100 executives found that coaching provided an average return on investment of almost six times the cost of the coaching
• An internal report of the Personnel Management Association showed that when training is combined with coaching, individuals increase their productivity by an average of 86% compared to 22% with training alone
• A Hay Group study of Fortune 500 companies found that 21% to 40% utilise executive coaching
Benefits of Coaching – Employers
• Increasing productivity
• Improving quality of work
• Reduced customer complaints
• Higher employee retention
• Reduced HR costs
• Increased bottom-line profitability
Benefits of Coaching – Employees
• Proactive working relationships with direct reports
• Better working relationships with immediate supervisors
• Improved teamwork
• Healthier relationships with peers
• Greater job satisfaction
• Conflict reduction
• Increased company loyalty
• More positive relationships with clients
How to get Executives on Board
As with many cultural initiatives, it’s important to get senior managers on board, and it’s no different when trying to promote coaching within an organisation. The ICP report highlights a lack of executive support as one of the key obstacles to overcome. A recent Stanford study found that whilst two-thirds of executives don’t engage in coaching themselves, nearly 100% would like to.
Executive coaching provides a uniquely challenging and yet supportive working partnership that benefits the individual and the organisation. It helps improve performance through developing skills, confidence and focus, ensuring leaders remain competent in all the realms of leadership today.
