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    Executive Coaching For Business Results - Measuring Executive Coaching ROI

    Executive Coaching For Business Results

    I recently spoke with the Human Resources Director of a company regarding providing executive coaching for the company president. The HR Director asked some great questions to determine fit, and specifically wanted to know if I had evidence to support the efficacy of executive coaching for leadership development of “C”- level executives.

    The HR Director and I spoke about my approach to coaching, and my belief that possessing an understanding of human behavior and business acumen are critical competencies for coaching executives. We also spoke of the need for her organization to create an organizational culture that allows innovation to flourish. The Human Resource Director is interested in partnering with me in helping the president who is widely respected become an even more effective values – based leader.

    Measuring Executive Coaching ROI

    Many attempts have been made over the past decade to quantify return on investment of coaching programs for executives in organizations. Some spectacular results have been recorded.

    Yet even with the application of ROI standards commonly used for measuring training and development programs, there remain too many variables to establish reliable data. It is difficult to quantify data of a qualitative nature.

    In 2003 Anthony M. Grant of the University of Sydney surveyed coaching research and found only 56 studies that met standards of reliable methodology. There were only 131 peer-reviewed studies since 1937. While the outcomes of coaching programs appear to be positive, the quality of research on coaching is extremely poor. There are new studies being conducted currently by academics, but it may be years before there are authoritative guidelines and best practices for coaching.

    ROI may never become a measure of the true success of coaching. One must assess its value with qualitative data. Any time perceived value is used as a measure, the measurements are subjective and less reliable. It is difficult to implement and replicate a program where the outcomes are perceived as “good” or “very good.”

    The marketplace is perhaps the most vocal proponent of the use of coaching for executives for leadership development. Top corporations such as GE, IBM, Hewlett-Packard, JP Morgan Chase, and Goldman Sachs are among those that invest heavily in hiring coaches for their executives. Overall, annual spending on coaching in the U.S. is roughly estimated at $1 billion.

    Other companies with smaller budgets are wise to follow this trend. Successful companies don’t throw money at programs that don’t have a positive impact on their bottom line—or, at least, they don’t for very long. Even so, there are some concerns about how much coaching adds to the financial success of the organization.

    Improving an executive’s well-being can certainly contribute to improving his or her interpersonal skills (and hence the productivity of the team). Unfortunately, some coaching may get an executive to feel better without having a noticeable impact on his or her behaviors. Obviously, this would be a case of incomplete or ineffective coaching.

    Are you working in a company or law firm where executive coaches are hired to develop better leaders? Does your company or law firm provide leadership coaching to help leaders to be more effective at leading others? During tough economic times, leaders at all levels need to become better at leading others to get work done.

    One of the most powerful questions you can ask yourself is “Am I tapping into all of my capability to become the best possible authentic leader?” Emotionally intelligent and socially intelligent organizations provide executive coaching and leadership development for leaders to be more effective at leading and inspiring others.

    Working with a seasoned executive coach and leadership consultant trained in emotional intelligence and incorporating assessments such as the Bar-On EQ-i CPI 260 and Denison Culture Survey can help you create an organizational culture where the ability to lead people based on values and purpose is a critical competency for leaders. You can become a leader who models emotional intelligence and social intelligence, and who inspires people to become fully engaged with the vision, mission and strategy of your company or law firm.

    I am currently accepting new executive coaching, career coaching, and leadership consulting clients. I work with both individuals and organizations. Call 415-546-1252 or send an inquiry e-mail to mbrusman@workingresources.com

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