They think they're too busy for it, but your prodding hasn't been in vain, a new study by outplacement, coaching, and career management firm DBM and the Human Capital Institute suggests. "Trends in Executive Coaching: New Research Reveals Emerging Best Practices" shows organizations increasingly are using executive coaching to enhance performance across the enterprise by grooming high-potential employees, while also supporting high-performing executives and leadership teams. Here are some of the highlights:
• Demand for executive coaching services is growing due to increased credibility and demonstrated impact on the enterprise. The vast majority of the study’s nearly 500 respondents (78 percent) view coaching as a credible and effective way to enhance an individual's effectiveness in driving an organization's performance.
• Organizations are benefiting from a high return on investment (ROI) for executive coaching. Of study respondents who calculate ROI, 77 percent believe executive coaching provides their organizations with a solid return. These individuals estimate levels ranging from a minimum of 100 percent ROI to more than a 500 percent return.
• In addition to tracking direct evidence of financial return, organizations also consider a variety of qualitative factors when measuring the impact of coaching. These include: achievement of agreed-upon development objectives (84 percent); anecdotal evidence of success (83 percent); assessment from the coach (82 percent);other people's perceptions of the coachee (79 percent); and the coachee's ability to be promoted or to take on new responsibilities (74 percent).
• Organizations are using a combination of metrics and qualitative factors when evaluating the success of executive coaching. Organizations measuring direct financial impact most often track: executive output (33 percent), such as sales revenue and productivity; quality improvements (23 percent), such as increased reliability or decreased defects; cost savings (23 percent); and turnover (21 percent).
• A majority of enterprise executives (78 percent) view executive coaching as credible and valuable. "DBM's research reinforces that executive coaching can generate significant rewards within an organization," says Karen O'Boyle, president of DBM North America. "Businesses that invest in human capital by effectively leveraging executive coaching to groom talent throughout the enterprise are witnessing a significant impact on both operational excellence and the bottom line."
Editor's Note: What's the gist of your executive coaching? What knowledge do you try to impart, and how do you know it's benefiting the rest of the organization? Join the discussion on Training Day.
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