Why More Organizations Are Using Executive Coaching
Many organizations have made coaching a core part of their executive development programs. Some even consider it the crux of their performance improvement strategy. The fact is, under the right circumstances, executive coaching can provide faster return rates than other forms of organizational development. Perhaps this is the main reason why 86 percent of Fortune 1000 companies use coaching to sharpen the skills of leaders.
The ROI of executive coaching
Whereas coaching once was viewed as a tool for correcting underperformance, today it's widely used to support top performers. One of the major advantages of coaching is it develops these leaders in their current jobs, without removing them from day-to-day responsibilities. This means the executive can develop without significant downtime and actually improve performance and productivity on the job.
Numerous studies have shown that the fastest way to improve the performance of groups and departments is to first improve the knowledge, skills, and behaviors of their leaders. In fact, organizational change is rarely achieved without major changes in leadership performance. The bottom line is that wise investments in improving executive performance generally trickle down, delivering excellent ROI.
The value of perspective
Most executives never receive objective feedback about their performance from superiors, peers, or staff. Since their improvement hinges on receiving precisely that, it's a Catch 22. As people advance, developmental feedback grows less frequent and reliable, and they can become isolated. That's why many executives plateau in interpersonal, management, and leadership skills.
One of the main benefits a coach can deliver is real honesty. The coach isn't indebted to the organization or tied to the executive's personal life. Even family members and friends who want the best for an executive aren't objective, since his or her choices directly impact them. By standing outside "the system," the coach can provide a degree of support and challenge the executive can't get in everyday relationships.