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State of the Executive Coaching Industry Research Project This page contains excerpts of the glossy State of the Coaching Industry report. For an expanded, glossy, printed report, with additional facts and information click on the link below. Expanded
Deluxe Printed Edition of the State of the Coaching Industry Report which
bolsters the case for Executive Coaching is available by Clicking Here.
Seeing
the Light State of the Coaching Industry A
Survey by the Coaching Industry Research Project Sponsored by the College of
Executive Coaching By
Jeffrey
E. Auerbach, Ph.D. College of Executive Coaching: Executive Coaching. Executive Coach Training. Emotional Intelligence Based Leadership Development Executive College Press Pismo Beach, California Copyright
2005 by Jeffrey Ethan Auerbach All
rights reserved. No part of this
publication may be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopying, recording, or by any
information storage and retrieval system, without written permission from the
publisher. For information, address
Executive College Press, 897 Oak Park Blvd. #271 Pismo Beach, California, 93449. Many
of the designations used by manufacturers and sellers to distinguish their
products are claimed as trademarks. Where those designations appear in this book and Executive
College Press was aware of a trademark claim, the designations have been printed
in initial capital letters. Library
of Congress Cataloging-in-Publication Data Auerbach,
Jeffrey Ethan. ISBN
0-9706834-4-8 First
Edition Printed
in the United States of America. Executive
College Press 897
Oak Park Blvd. #271 (805)
474-4124 ******************************************************************* Survey
Background Recent
events in business, technology, and organizational dynamics, combined with
changes in workplace demographics and individual goals, have contributed to
challenges for both organizations and individuals.
But there is one area in which wise individuals agree: people are the most valuable force within an organization.
The individual commitment, capability and motivation of employees,
combined with opportunity and effective leadership--interfaced with
technological innovation -- determine success or failure, peak performance or
average performance. An
increasing number of organizations have turned to executive coaching to meet the
multitude of challenges that face managers and executives.
Despite the huge growth in the adoption of executive coaching over the
past decade, no comprehensive study was previously conducted examine the size of
the coaching industry, who is utilizing coaching, what coaches actually do in
organizational settings, and how coaches are selected. We
surveyed 101 organizations that utilize coaching and 610 external and internal
coaches in North and South America, Europe and the Asia-Pacific region in 2005. Survey participants completed a 40-minute online survey. The
results are impressive. The
utilization of executive coaching has sharply increased in the past five years
with no sign of slowing. However,
there is a great divergence in the field as to the use of techniques, as well as
a great variety of educational level, training and experience in those who
identify themselves as executive coaches. The
survey is part of a larger study that the College of Executive Coaching is
conducting under the direction of the State of the Coaching Industry Research
Project Chairperson and CEO of College of Executive Coaching, Dr. Jeffrey E.
Auerbach. To gain a deeper
understanding of what it takes to excel in this arena, the research team is
conducting interviews with companies whose directors and executives are leaders
in the use of executive coaching and leadership development.
The results of that part of the study will be released when completed. The
2005 State of the Coaching Industry Surveys
In the
summer of 2005 two online surveys were conducted.
One was the 2005 State of the Coaching Industry in Organizations Survey
and the other was the 2005 General Personal and Executive Coaching Survey. 2005
State of the Coaching Industry in Organizations Survey
An
invitation to complete the online 2005 State of the Coaching Industry in
Organizations Survey was distributed via email through coach training
organizations such as the College of Executive Coaching and other training
programs, and special interest groups like the International Coaching Federation
Executive Coaching and Internal Coaching Special Interest Groups.
Representatives of these groups forwarded the online questionnaire to
organizations that utilize executive coaching, other coach training programs and
other coaching associations. Partial List of Companies That Responded to the Survey
Size
of the Executive Coaching Industry
The
industry of executive coaching fits under the umbrella of management consulting. Most management consulting firms assist other firms in areas
such as large-scale strategy, tax advising, IT assistance, or supply chain
management consultation; however, executive coaching is a specialized service
delivered on a smaller scale. Even
though executive coaching has grown considerably, and many organizations are now
building a “coaching culture” where they infuse a coaching philosophy with
their management and leadership style, the size of the executive coaching
industry is still a relatively small subset of the management consulting field.
Little
reliable data is available on the size of the executive coaching industry, but
the Harvard Business Review reported that actual expenditures on executive
coaching worldwide is in the range
of $1 billion. Most
Companies Use Coaches
Eighty-eight
percent of European companies report using coaching in some manner and 70% of
Australian companies report using executive coaching.
Moreover, a recent survey of 170 Human Resource professionals determined
that more than 50% set up a coaching program in the past 18 months (The Hay
Group) and a random survey of 248 Human Resource Managers demonstrated that 55%
of their organizations use formal coaching as an employee development method
(Society of Human Resource Management, 2005).
However,
the term “coaching” is used rather loosely.
Managers state that part of their management approach involves coaching
their employees – usually for higher performance -
and in this sense, coaching is often seen as one of several
people-management methods. However,
most internal or external executive coaching professionals are characterized as
not having any direct authority over the coaching client, which helps the
employee be more open with their coach and speeds learning and results.
Growth
of Coaching in Organizations
Dramatic
increase in utilization of executive coaching in the past five years as
evidenced by:
The
use of executive coaching is widely reported to be growing rapidly.
Our survey results bear this out.
Ninety-five percent of organizations that use coaching have increased
their utilization of coaching over the past five years and none of them have
decreased their utilization of coaching. This
impressive finding suggests that organizations that have utilized coaching find
it so valuable that they continually increase its usage, even though executive
coaching can be an initially expensive service. Why
is the Use of Executive Coaching Increasing?
A 2004
study attributes these nine factors as the principle forces driving the
increasing use of executive coaching: 1.
Rapidly evolving business environment 2.
Individual responsibility for development 3.
Financial costs of poor performance 4.
Popular development strategy 5.
Supports other learning 6.
Employees request coaching 7.
Need for lifelong learning 8.
Improves decision-making 9.
Targeted, just-in-time development
(Chartered
Institute of Personnel Development, 2004) International
Scope of Coaching
Executive
coaching is utilized internationally. Of
the 101 organizations responding to this survey, respondents indicated that they
utilize coaching in one or more of the following thirty-two countries:
Large
Psychology-Based Management Consultation Firms
Psychology-based
management consulting companies traditionally have an emphasis on behavioral
measurement, assessment, and learning so their unique skills, if combined with
organizational experience, lend themselves to the interpersonal nature of
executive coaching. Other
Large Players in Coaching Field
Boutique
Executive Coaching Firms and Coaching Panels
The
need to efficiently find qualified executive coaches has increased as demand has
expanded. A
few representative firms of this boutique, specialized sector that only utilize
seasoned, senior executive coaches are:
Growth
in Executive Coach Training
A
necessary foundation for any new industry is a training process that meets
uniform standards. The executive
coaching field is populated by some individuals who may be motivated to help
others but lack formal education in the field.
Over the past eight years there has been a rapid growth in coach training
organizations that have sought accredited status through the International Coach
Federations Accredited Coach Training Program process.
There are now thirty International Coach Federation Accredited Coach Training programs worldwide and eighteen of them are active members of the non-profit Association of Coach Training Organizations (ACTO). Still, most “coach-training” programs are not accredited. ************************************************************************ Seeing
the Light
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