In recent years, many organizations have made coaching a core part of their executive development programs. Some of them even consider it the crux of their performance improvement strategy. Under the right circumstances, executive coaching can provide faster return on investment than other forms of organizational development. Perhaps this explains why 86 percent of Fortune 1000 companies use coaching to sharpen the skills of their leaders.
The ROI of Executive Coaching
Whereas coaching once was viewed as a tool for correcting under-performance, today it’s widely used to support top performers. One of the major advantages of coaching is that 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 investments in improving executive performance trickle down and deliver excellent ROI.
The Value of a Coaching Perspective
Most executives rarely receive objective feedback about their performance from superiors, peers, or staff. Since improvement hinges on receiving precisely that, these executives are caught in a Catch 22: As they advance, developmental feedback grows less frequent and reliable, and they become more isolated. No wonder many management studies show that most executives plateau in interpersonal, management, and leadership skills.
One of the main benefits a coach can deliver is honesty. The coach isn’t indebted to the organization or enmeshed in the executive’s personal life. Even family members and friends who want the best for an executive typically aren’t objective, since the executive’s choices directly impact them. By standing outside “the system,” the coach can provide a degree of support and challenge the executive simply can’t get in day-to-day personal or business relationships.