Why Organizations Need To Invest In Executive Coaching
Great and successful athletes do not become focused, powerful, and adaptable overnight.
They work hard, commit to disciplining themselves, and are humble enough to admit they need the help of others — like a coach — to continue growing and thriving and reaching their full potential.
I’m a successful executive; why do I need a coach?
Like top-tier athletes, business leaders like you also need executive coaching to strengthen your leadership muscles and maximize your potential as an individual and a leader.
In the past, organizations hired executive coaches to deal with negative leadership behaviors. This kind of coaching was perceived only as a remedy to fix what’s broken. The stigma in leadership development was, “If it’s not broken, don’t fix it.”
But the million-dollar question is — does the hunger to grow, the desire to be better, and the determination to thrive mean that someone — a leader — is broken?
Effective conflict management indeed continues to play as a key ingredient in defining an excellent leader. However, it is only one from the long list of attributes that make you an effective leader who is respected by the people while producing massive returns.
Wanting to be coached does not imply personal failure or professional ineffectiveness. Instead, it shows an admirable trait — a growth mindset — that separates the leaders from the trailblazers.
What is executive coaching?
Texarkana Gazette defines executive coaching as “a form of organizational learning that involves using external professional coaches that work one-to-one with the person being coached in order to facilitate growth and development… a systematic process in which the coach empowers clients to achieve organizational or personal goals and results.”
Below are some of the keywords that would make the definition above clearer and simpler.
Organizational learning. According to the Business Dictionary, it means “organization-wide continuous process that enhances its collective ability to accept, make sense of, and respond to internal and external change.”
External professional coaches. Coaching from outside the company helps the organization see its blind spots from an unbiased third-party eye.
One-to-one. Executive coaching is a relationship between one coach and one coachee.
Systematic Process. It involves methodical plans and structured processes.
Facilitate growth and development. From the keyword “facilitate,” executive coaches open the doors for progress and advancement. They don’t dictate, counsel, or impose what you ought to do because what’s effective to others may not necessarily be effective to you.
According to one of the world’s most sought-after executive coaches Marshall Goldsmith, executive coaching is working with leaders who want to get better.
What are the benefits of executive coaching?
Maybe you’re still wondering — why invest in executive coaching?
There are many incredible benefits of executive coaching — having a new perspective as a result of learning how to process your thoughts, emotions, and circumstances; being more adaptable and resilient as you increase your ability to cope with change; and fulfillment in life and your career.
The list of advantages could go on, but today, we’ll take a peek at three benefits of executive coaching according to a client study made by the International Coach Federation (ICF) in 2009 on why coaching works.
Benefit #1: Increased Productivity
Although it has been said countless times, it is worth reiterating here that maximizing your potential is one of the specific objectives of professional coaching. As you go through the coaching process, you will surely discover more about yourself, including the hidden and unexplored ways to be more productive and effective at work and with your team.
Being an effective leader means becoming a better influencer. When that happens, you can make a positive impact on others that can encourage and motivate them to support your organization’s aims and goals, which will result in an improved financial bottom line.
Data from ICF:
- Improved work performance – 70%
- Improved business management – 61%
- Improved time management – 57%
- Improved team effectiveness – 51%
Benefit #2: Positive People
Show up for meetings motivated, driven, and confident instead of walking in it and playing the meeting by ear. The latter is definitely not what’s expected of someone whose role is to be an excellent example of how it is to be a diligent, disciplined, and relentless worker.
Improved self-confidence, living the desired work-family balance, and decreased anxiety are some of the significant results that contribute to meeting organizational demands. Decreased turnover is also an advantage when you attract, retain, and inspire people through employee coaching, development, and promotion.
Data from ICF:
- Improved self-confidence – 80%
- Improved relationships – 73%
- Improved communication skills – 72%
- Improved life/work balance – 67%
Benefit #3: Return on Investment
While it’s great when organizations support and allow their leaders to grow through leadership development, it is natural for many board members and stakeholders to think about the executive coaching ROI.
Tracking results and measuring ROI are crucial factors in determining the quality and effectiveness of the coaching. At the onset, standards should be clear and goals established to set a baseline when evaluating the alignment and impact of the coaching to the business objectives.
As part of the benefits of executive coaching, some organizations have yielded five to seven times the initial investment, and others show an ROI of eight times their initial investment. According to another ICF study on the returns on investing in executing coaching, they discovered that for each dollar spent, there’s an average return of $4.30 and $7.90.
Moreover, the return on investment was justified in not only the financial bottom-line, but also the tremendous increase in productivity, competencies, self-awareness, as well as healthy internal and external work engagement and relations.
Data from ICF:
- Return on investment – 86%
All in all, 99% of those who hired a coach — companies and individuals alike — said they are “somewhat” or “very satisfied” with their experience. Given the chance and opportunity to do so, 96% would repeat the process.
When should a company invest in executive coaching?
Organizational change is inevitable, especially during this time of uncertainty caused by the global pandemic.
Now more than ever, organizations need the support they can get to boost morale and ensure that the company is stirring in the right direction through effective leadership that’s characterized by improved influence, improved relationships, magnified agility, and better execution of strategy.
While hard skills like team building, mentoring, and conflict management are main areas that many executives want to improve on, soft skills such as compassion, motivational skills, and persuasion skills are equally essential to harness at present where depression and confusion are rampant.
Remember, having a coach is not a manifestation of a problem or a sign of weakness. On the contrary, executive coaching proves to be a worthy investment that will realize your business objectives and your organization’s missions and will benefit both your company and your people.
If you’re ready to invest in Executive Coaching for yourself, or for your organization, and would like to know more about Churchill’s programs, click on these links:
Executive Coaching as a Managed Service
Executive Coaching for 1 on 1 as Needed
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