Executive Briefing: Case Study on the Return on Investment of Executive Coaching
Prepared by:
Merrill C. Anderson, Ph.D., merrilland@metrixglobal.net
MetrixGlobal, LLC
November 2, 2001
A Fortune 500 firm and Pyramid Resource Group, a coaching services company
engaged MetrixGlobal LLC to determine the business benefits and return on investment
for an executive coaching program. These highlights are excerpted from the final
report of the study.
The Bottom Line: Coaching produced a
529% return on investment and significant
intangible benefits to the business. Including the financial benefits from employee retention, coaching boosted the
overall ROI to 788%.
Introduction
The data comes from surveys completed by 43 participants of an executive coaching program launched by
a Fortune 500 firm as part of an innovative leadership development program. The participants
in this effort were drawn mostly from the ranks of middle managers and from many different business
units and functional areas. All had been identified as potential leaders and executives.
Results
Coaching was a very effective developmental tool for the leadership development
participants, producing financial and intangible benefits for the business.
- 60% of the respondents were able to identify specific financial benefits that came as a result of their coaching.
- 60% reported an increase in productivity; half documented annualized financial benefits
- 53% reported an increase in employee satisfaction
- 40% reported an increase in work quality
- 30% reported an increase in work output
Click here for the full Executive Summary (PDF).
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