Business Performance Coaching generates ROI (return of investment)
The good news right from the beginning: Performance Coaching does pay off the expense s it creates!
“Choice”, a consulting company in Switzerland, supported by the University of Zuerich, investigated coaching results in terms of a return of investment in coaching sessions. Their investment calculation shows a return of 12.6 % per annum.
The Background
The consulting firm worked with economical calculation formulas as normally used for investments in production equipment. They investigated the long term effect of coaching by observing 40 managers in leading positions over a period of three years (following the training).
The coaching program comprised of 10 – 20 sessions, each lasting several hours. The goal was to achieve improvements in “soft” areas such as social and leadership competence.
To be able to evaluate the result in money terms personal targets needed to be defined and achieved. The 36 – 55 year old participants were mainly academics in leading management positions.
The Result
The results show significant increase of personal satisfaction and self-confidence:
- Emotional relief (75%)
- A strengthened ability to pursue ideas (80%)
- Leadership skill improvements (67%)
- Increase of social competence (70%)
After 3 years 77.5% of participants are still convinced that they have achieved their personal goals as defined during the coaching process.
Usually many companies cut back their staff training/development expenses in difficult times. It is also true that every business is different and so are its specific conditions. However, it seems it worthwhile to think twice before money is saved in the wrong area. Cost cutting might turn into losses.















From "Today’s Cartoon by Randy Glasbergen", displayed with special permission. For many more cartoons, please visit Randy's site @ www.glasbergen.com