Calculating the ROI of Executive Coaching

Executive coaching can be expensive. According to an article entitled “What Can Coaches Do for You?” published in 2009 in the Harvard Business Review, you can expect to pay between $200 and $500 per hour for executive coaching, with elite coaches charging up to $3,500 per hour. And that was ten years ago!

ROI of Executive Coaching

However, we all recognize the folly of those who know the price of everything and the value of nothing. If that $3,500 price tag were to earn you $7,000, you would be more than satisfied. Well, what if I were to tell you that several studies show the return on investment (ROI) of executive coaching far exceeds 100%?

Here are the numbers:

  • According to Joy McGovern, et al. in the study Maximizing the Impact of Executive Coaching: Behavioral Change, Organizational Outcomes, and Return on Investment, published in The Manchester Review,2001, and available for download here, a conservative estimate of the ROI (for the 43 participants who estimated it) averaged nearly 5.7 times the initial investment in coaching.
  • In another study, Booz Allen Hamilton’s executive development director, Vernita Parker-Wilkins, coaching produced intangible and monetary benefits for seven out of eight business impact areas, and ROI 689 percent.
  • Confirming those results is an Intel study revealing its internal coaching program resulted in an ROI of more than 600 percent.
  • In a study conducted by MetrixGlobal LLC, companies reported an average return of nearly $8 for every $1 invested in executive coaching.
  • And in a global survey of coaching clients by PwC (Price Waterhouse Coopers) and the Association Resource Center, it was reported that the mean ROI for companies investing in coaching was seven times the initial investment, with over a quarter reporting an ROI of 10 to 49 times.

Will My Investment in Executive Coaching Be Worth It?

You can easily calculate your ROI after you receive coaching, pay the bill, and evaluate the results. You simply subtract the cost from the total value gained, divide by the cost, and multiply the result by 100%. For example, if you paid a coach $5,000 for services that resulted in a $30,000 increase in your gross income, your ROI is ($30,000 – $5,000)/$5,000 = 5 x 100% = 500%.

However, when you are deciding whether to hire a coach, you don’t yet have the numbers to crunch to determine whether the coach will be“worth it.” After all, several factors, in addition to cost, contribute to ROI, including the following:  Continue reading…

Hiring an Executive Coach: 10 Do’s and Don’ts

Great coaches help to make great athletes. Basketball coach and mentor John Wooden played a key role in launching the careers of numerous basketball greats, including Kareem Abdul-Jabbar, Bill Walton, and Gail Goodrich. Tennis standouts Venus and Serena Williams owe their success, in part, to their father/coach Richard Dove Williams. While boxing champs Floyd Patterson, José Torres, and Mike Tyson all have Constantine “Cus” D’Amato to thank for their entry into the International Boxing Hall of Fame.

What all these coach-athlete relationships have in common is the right chemistry. When you are in the market for an executive coach, look for someone who is not only qualified but is also the right match for you.

Do's and Don'ts of hiring an executive coach

In this post, I provide 10 tips on finding the right executive coach for you.

1. Make a list of what matters.

Develop a list of executive coach attributes that are important to you. For example, you may appreciate an executive coach who:

  • Speaks truth
  • Provides empathic attunement (responds to the client’s perception of reality in the current moment as opposed to his or her own “objective” view of the situation)
  • Fosters a deep level of connection
  • Expects the potential of the client to come forward
  • Holds the client accountable
  • Keeps the client moving forward

Related… here is what a well-qualified executive coach should do for her/his clients:Continue reading…

JLJ and Associates Joins the Blogosphere

2019-08-27T22:03:36-07:00By |Categories: Blogging|Tags: |0 Comments

With this first post, we here at JLJ & Associates welcome you to our blog — The Executive Coaching Blog, which is the online destination we expect will evolve into a valuable resource for information about executive coaching and related topics for a sophisticated and thoughtful audience.

If you’re already familiar with JLJ, we think you’ll appreciate the fact that we now have a blog of our own… a place where we can demonstrate our commitment to and furthering of our craft, educate people pursuing answers and solutions to the often-confusing and misinformed marketplace for truly meaningful performance and coaching for C-Suite executives and their spouses. And by educate, we mean this:

There is so much confusion and conflicting information online about the time, cost, and manner associated with hiring an executive coach, that many C-Suite types and their spouses are understandably skeptical and misinformed about the process and benefit. At JLJ, we’re committed to helping prospective clients understand and resolve concerns about working with a coach before presenting a Statement of Work for the services we collectively agree they want and we can deliver. We work to help prospective clients take control of their coaching engagement and not just rely on us to tell them how their experience is going to be.

We need Qualified Coaches for the C-Suite and their Spouses

Many of our clients say they are actively seeking an alternative to the traditional performance or executive coach. And by ‘traditional,’ I mean someone with a turnkey coaching mentality and playbook who has lofty or delusional views of his or her craft. The ones I speak of are usually ‘certified’ by an organization you’ve never heard of, and they actively invest more time and resources in Internet-based marketing than they ever have in an actual board room or supporting the work of those of us who have and do work in the enterprise leadership ecosystem.

This disillusionment provides us with the opportunity toContinue reading…