The
Benefits of Business Coaching
By
Jeffrey E. Auerbach, Ph.D.
Business
coaching is an expanding industry – 58% of organizations say they have
increased their use of coaching in the past year.
In
the United Kingdom, four years ago just four percent of small businesses used
coaches, and now 20% of small business enterprises are using coaching as part of
their growth strategy. In another
international study, 79% of medium and large businesses in the United Kingdom
reported using coaching. In the US,
in a sample of 101 companies using coaching, 58% of the companies were small or
medium sized, government agencies and non-profits (Auerbach, 2005).
Coaching
utilization is increasing because it is a cost effective means of achieving
phenomenal results for teams and businesses.
Organizations are asking can we afford not to use coaches?
There is increasing evidence that coaching is one of the most powerful ways of
developing people and adding to bottom line business performance. A study of
Fortune 1000 companies using coaching showed these percentages of executives
reported the following benefits from the coaching they received:
-
An increase in productivity (by 53%)
- Increased customer service (by 39%)
- Increased retention of senior people (by 32%)
- Reduction in costs (by 23%)
- Increased bottom line profitability (by 22%)
The
same survey reported that the individuals who received coaching saw improvement
in:
- Working relationships with their direct reports
- Working relationships with their manager
- Team-building
- Reduction in conflict
- Business Relationships with clients
(Source:
Manchester Review, 2001, Vol. 6, 1; and Executive Coaching - With Returns
A CFO Could Love, Fortune Magazine February 19, 2001)
Some
leaders try to save money by limiting their expenditures on training because
they don’t feel training generates immediate bottom line results.
However, coaching can turn an investment in training into dramatic
positive results. Here are two
studies that support this statement:
The
Xerox Corporation found that the impact of using follow-up coaching after formal
training gave a massive 87% increase in the effectiveness of training when
compared to training alone.
The International Personal Management Association supported this data. Their
investigation showed that training improved the performance of their teams by
22%. When coaching was added to the training program, improvement in day to day
work performance increased by 88%.
In 1999 the Industrial Society asked companies what were the top three benefits
of providing coaching to the workforce. The companies reported direct results
from coaching in the following key performance areas (similar findings were
reported in 2005 from the 2005 State of the Coaching Industry Report):
• Productivity
• Quality
• Organizational strength
• Customer service
• Reducing customer complaints
• Retaining executives
• Cost reductions
• Bottom-line profitability
Coaching is increasingly being utilized because (Auerbach, 2005):
• Small businesses can result in isolated managers who welcome support and
challenge from someone outside their immediate work environment – especially
if coaching and leadership development is not available in-house.
• Attendance at whole-day, or multi-day leadership development courses can
seem impossible in an already busy schedule – and involve significant travel
expenses. Sessions with business coaches, often conducted over the telephone,
can fit around other commitments.
• As organizations operate with a “lean” staff – a shortage of time and
increased pressure to perform is always present – and coaching provides
“just in time” assistance and individual learning and support.
• Coaching
provides for an individual “thought partner” to help the executive or
manager confidentially think through important decisions in an enhanced manner.
The
investment for business coaching can pay off many times over –- increasing
your bottom line, helping you work with renewed passion, getting more done in
the same time period by working smarter, and reclaiming your life by adding more
work-life balance. What will be
your next step to start working with a coach or bringing coaching to your
organization?
Auerbach,
J. E. (2005). Seeing the Light: What Organizations Need to
Know About Executive Coaching. Executive College Press: Pismo Beach,
CA.
Fisher,
A. "Executive Coaching - With Returns
A CFO Could Love". Fortune Magazine, February 19, 2001
Jeffrey E. Auerbach, Ph.D., is President of College of Executive Coaching and
author of the best-selling book, Personal and Executive Coaching.
