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A Fortune 500 company recently published a
report on business benefits and the return on
investment for an executive coaching program.
Bottom line: Coaching
produced a 529%
return on investment and significant
benefits to the business.
"..what
is believed to be the first major study to
quantify the business impact of executive
coaching. The study included 100 executives,
mostly from Fortune 1000 companies, who received
coaching...Half of the executives in the study
held positions of vice president or higher
(including division president, general manager,
chief executive officer, chief financial
officer, chief information officer, partner,
principal, and practice leader). Almost six out
of 10 (57%) executives who received coaching
were ages 40 to 49, and one-third earned
$200,000 or more per year
Among
the results of the study: The coaching
programs delivered an average return on
investment of 5.7 times the initial investment
in a typical executive coaching assignment -- or
a return of more than $100,000 -- according to
executives who estimated the monetary value of
the results achieved through coaching.
Among
the benefits to companies that provided coaching
to executives were improvements in:
Productivity (reported by 53% of executives)
Quality (48%) Organizational strength (48%)
Customer service (39%) Reducing customer
complaints (34%) Retaining executives who
received coaching (32%) Cost reductions (23%)
Bottom-line profitability (22%) Working
relationships with direct reports (reported by
77% of executives) Working relationships with
immediate supervisors (71%) Teamwork (67%)
Working relationships with peers (63%) Job
satisfaction (61%) Conflict reduction (52%)
Organizational commitment (44%) Working
relationships with clients (37%).
"The Xerox
Corporation carried out several studies,
one of which showed that in the absence of
follow-up coaching 87% of the skills change
brought about by the program was lost.
That’s 87 cents in the skills dollar.
However good your skills training in the
classroom, unless it’s followed up on the job,
most of its effectiveness is lost without
follow-up coaching. For example: Most
sales people try out the new skills for a few
calls, find that they feel awkward and the new
method isn’t bringing instant results, so they
go back to their old ways." -
(BUSINESS WIRE) -July 30, 2001
"A study featured
in Public Personnel Management Journal
reports that managers (31) that underwent a
managerial training program showed an
increased productivity of 22.4%. However, a
second group was provided coaching following the
training process and their productivity
increased by 88%. Research does demonstrate that
one-on-one executive coaching is of value."
." -
by F. Turner, Ph.D. CEO Refresher 2001
Accenture's
Alastair
Robertson, manager of worldwide leadership
development practice in Boston, says employers
are shocked at how high their ROI numbers are
for coaching. He recalls a large employer in the
hospitality industry saved between $30 million
and $60 million by coaching its top 200
executives.
-Asian News 2002
"business
coaching, a trend that's exploding
among small businesses and entrepreneurs
nationwide. It's estimated that up to 20%
of American small businesses are using them,
up from 4% just four years ago." - Chicago
Business 2002
"For
years, CEOs of some of
the most successful and largest companies have
relied on executive coaches. Henry
McKinnell, CEO of Pfizer, Meg Whitman, CEO of
eBay, and David Pottruck, CEO of Charles Schwab
& Co., are just a few who rely on a
"trusted adviser." -The
Business Journal. Nov. 2002
According to NASA:
-
"In every field of human endeavor
in which performance is key, coaching is
integral to helping shift an individual's
mindset, approaches, and behaviors to ensure
more effective action and greater business
success. It's all about company and employee
strengthening and growth. In their new
groundbreaking text book, Zeus and Skiffington
outline some of the key benefits of
organizational coaching ..and the types of
executive coaching." -Your
Strengths are the Paths to Excellence. National
Aeronautics and Space Administration -Report.
Issue 24. Dec 2002. -E. Saxinger (NASA Work/Life
Program Manager)
"The
leaders of
organizations such as Alcoa, American Red Cross,
AT&T, Ford, Northwestern Mutual Life, 3M,
UPS, American Standard, the federal governments
of the United States and Canada are
convinced that coaching works to
develop people and increase productivity." -
Consulting
to Management (Sept.2001)
"Between
25 percent and 40 percent of Fortune 500
companies use executive coaches"
-
according to a recent survey
 
A
CASE STUDY: SALES PERFORMANCE BEHAVIORAL
COACHING
Background:
In
a continually changing market, regularly
evaluating and improving employee performance
and productivity has become more than an
administrative detail - it is now a key business
strategy. Today most businesses (large and
small) first exposure to 'bottom-line' coaching
(other than executive coaching for senior
management) is the introduction of
performance coaching in their sales departments.
Performance sales coaching is relatively easy to
introduce, control and monitor, and generates
immediate measurable results
A
new breed of performance coaching development
systems promises to solve many of the problems
of training-based review systems and support
best practices that result in greater
productivity and employee satisfaction. These
systems lead managers through the performance
review process of measuring key behavioral
aspects that critically impact upon the
successful execution of professional skills. Importantly,
it helps them with the most difficult part of a
review - putting their assessments and action
plans into a development vehicle that works. This
just-in-time approach via regular one-to-one or
small group coaching/learning is widely regarded
as more effective than traditional occasional
"classroom" training. It ultimately
results in greater productivity because managers
become coaches as they work with employees on
developing the skill sets most in need
of growing. By giving managers HR
expertise and coaching tools to help them
track and evaluate performance, the coaching-based
performance management system removes many of
the barriers that have traditionally undermined
the ongoing development of their people. Coaching
based development programmes
also enable organizations to: audit their
human capital base; measure operational
performance to provide the platform for ongoing
improvement; and gain an understanding of
employee value for ongoing strategic modeling
and planning
Example:
Premium Insurance,
a leading player in the motor insurance
market, needed to improve its internal
processes, skills and service levels in order to
compete effectively. Premium wanted
results that would be lasting and realized
quickly. Working closely to the brief as
co-developed with the in-house project
management team, an external Coaching Group
devised an innovative approach that resulted in
the complete redesign of Premium's Customer Strategy.
It introduced a Sales Agent Performance
Management Development schedule. The group's
programme of consultation with management and
the agents themselves resulted in a system which
automatically produced weekly agent skills
reports, and which summarised individual
performance on an agreed set of defined
performance indicators. Team leaders and agents
alike could now see on a weekly basis not
only how they performed on key outcome
measurements, such as sales calls handled, schedule
adherence, policies sold, sales conversion rate, cross-selling
of other products - but more significantly,
the Team leaders could now easily identify
and monitor the behavioral strengths and
weaknesses of each agent in the execution of
their sales skills and use this as a basis for
individual behavioral coaching. The system also
facilitated the introduction of a fair and
motivating performance-based reward system based on
the Weekly Skills Report. The experience so far
with the system has been that: staff morale has
improved as agents have more visibility and
control over their performance; sales
performance has radically improved - with
average weekly sales up by 50%.
Note:
One of the first published case studies (1958) on
the effect of coaching was on individual
sales performance enhancement. The case study
involved the coach working with
the Sales
Training Director and included the sales
staff receiving regular group coaching
sessions focusing on team building. The program
objectives of higher sales, greater team
motivation and reduced staff turnover were all
met.
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