The Business Case for Executive Coaching – The ICF Coaching ROI Global Study

One of the most powerful questions you can ask is “Does providing executive coaching for company leaders have a direct effect on the company bottom line?” Emotionally intelligent and socially intelligent organizations provide executive coaching and leadership development for authentic leaders at all levels of the organization.

Approximately 25 to 40 percent of Fortune 500 companies use executive coaches, according to the Hay Group, an international human-resources consultancy. According to a survey by Manchester, Inc., a Jacksonville, Florida, career management consulting firm; about six out of ten organizations currently offer coaching or other developmental counseling to their managers and executives. Another 20 percent of companies said they plan to offer coaching within the next year.

Return on Investment

Research has shown that ‘knowing how you operate’ directly affects work performance and the bottom line.

Understanding people’s strengths, styles, desires, and how they approach work gives both the individual and the organization the power to use their talent most effectively to enhance group productivity, increase revenues, reduce expenses and increase profitability. Assessments are an efficient manner of gathering interpersonal data on an anonymous and confidential basis, and when combined with effective executive coaching, the tools and services can provide information on a person’s intelligence, leadership style, emotional maturity, learning preferences, interpersonal and communication style.  Assessments can isolate weaknesses and spotlight strengths, which can then be focused on within the coaching engagement.

By Patricia Harmon, Ph.D.
Center for Quality Management Journal

In a June 1999 article entitled "Why CEOs Fail" Fortune magazine listed six habits of highly ineffective CEOs. The worst culprit in ineffectiveness wasn't the CEOs' failure to create or implement the right corporate strategy, as one might expect. The number one ineffectiveness habit was people problems. To be sure, the best strategy is useless without good execution. Getting the job done often requires tough decisions, and feelings should not get in the way. Nevertheless, overlooking the human element is a serious mistake.