Findings from the 2009 ICF Global Coaching Client Study* show that professional coaching within corporations yields a solid, measurable return on investment with positive business results. The findings support what the coaching industry has been claiming for years—coaching is worth the investment.
The median financial return among study participants from the European/Middle Eastern/African (EMEA) region who invested in company coaching was 1,567 percent, or nearly 16 times their initial investment. These gains may have come directly from improved processes and skills being developed through coaching—increased efficiencies, talent retention or, more generally, through an improved corporate culture.
One recent example of a company using coaching with great success is Solaglas Windowcare (SW), the largest processor, distributor, installer and repairer of glass and glass systems in the United Kingdom. SW, along with ibm.com NA, was honored with the prestigious ICF International Prism Award, in December for their commitment to coaching as a business growth strategy.
In early 2007 SW began a review of their leadership strategy within the area of Field Engineering Operations. The review concluded that SW’s planned growth over the next five years would require significant cultural change within operations if it was to be successful. To facilitate such change, an innovative coaching initiative was proposed to support the leadership development of a group of newly appointed frontline managers.
Coaching was required to address six key issues that SW felt were paramount to the success of its five-year growth plan. Coaching was to support frontline operational management to: Develop self-managed teams and to enhance new potential; develop increased decision making and ownership amongst engineers; improve engineer respect within the company; improve communication between hierarchical and departmental colleagues/teams; improve use of process and systems; and improve operational performance.
At the end of an 18-month period SW reported a return on investment (ROI) of 490 percent from coach training for frontline managers and an internal coach. Their financial gains came in performance improvement as well as savings in subcontracting costs, materials costs and in recruitment and sick absence. In addition, the SW 2008 financial report exceeded expectations showing that profit was up 250 percent on the previous year. It is accepted by SW’s board that the coaching initiative was a significant contributor to this improvement.
Following the success of this coaching in facilitating the company’s goals and purpose, SW drew up a Developing Management Potential (DMP) programme that uses the outcomes from this initiative to inspire other potential managers to recognise and work towards opportunities.
According to SW Managing Director Ian Davy, “To use coaching at the core of such a vital change-management initiative was certainly innovative and, some might say, ‘bold’. I believe it has enabled us to take giant strides towards our aims because it fundamentally started to encourage our people to step back and ask ‘what went well? Would be even better if….’
Coaching has led to more high-impact development conversations taking place that have encouraged greater involvement and the fact that our DMP programme is well over subscribed is witness to this. The ROI from this coaching initiative has been exceptional, but I believe these gains will be seen as small compared with the long-term legacy impact.”
This SW initiative is now gaining interest from other companies within the worldwide Saint-Gobain Corporation, their parent group. It is highlighting SW as a model for coaching assisted change-management which has been reinforced by a recent Chamber of Commerce Award for Investing in Skills.
* Results of the ICF Global Coaching Client Study are representative of the survey respondent sample.