As more business executives are recognizing the benefits of coaching in the workplace, companies are evaluating its return on investment (ROI).

In 2001, Metrix Global, LLC, a professional services firm that provides performance measurement solutions, reported the results of a study to determine the business benefits and ROI for an executive coaching program. The study was commissioned by a Fortune 500 firm and Pyramid Resource Group, a coaching services company.

The Bottom Line: Coaching produced a 529% ROI and significant intangible benefits to the business.

Survey respondents credited coaching for:

• A “significant or very significant” impact on at least one of nine business measures (77% cited
• Increasing productivity (personal or to their work group) (60% cited)
• Annualized financial benefits (50% cited)
• Increasing employee satisfaction (53% cited)
• Increasing customer satisfaction (53% cited)
• Increasing work output (30% cited)
• Increasing work quality (40% cited)

While the study was not able to quantify dollar benefits for improvements in employee satisfaction, customer satisfaction or work quality, the remaining benefits were calculated to determine the 529% ROI.

In 1997, AMOCO Corporation, now part of British Petroleum (BP), conducted an evaluation of the coaching they had offered to their executives over a ten year period (Birkeland et al., 1997; Davis & Petchenik, 1998). The investigators reported that "compared to other AMOCO managers, coaching participants consistently demonstrated improved performance, increased ratings of potential for advancement and 50% higher average salary increases. Moreover, the participants themselves attributed these results directly to the coaching they had received."

At YESS!, we work closely with our clients to determine specific desired outcomes for their coaching programs. We then create coaching plans that measure the attainment of these outcomes. It is important for our clients to experience measurable results.