Case Studies

Here are some case studies of large organizations that have received some consulting. If they find value in consulting then there is definitely merit in considering getting outside help.

The evidence suggests that the majority of executives who participate in coaching are
highly satisfied with the experience and find it valuable. For example:

  • Dell Computer Corporation offered coaching to nearly 400 executives and their internal survey determined that satisfaction rates exceeded 90 percent. Executives report personal and organizational improvements. Improvements that stem directly from coaching engagements include:
  • Enhanced executive learning. One study described the increased results of combining coaching with training. They learned that training alone increased productivity by 22 percent, but when training was paired with coaching, the productivity increased by 88 percent.
  • Gains in corporate performance. One study of 100 executives documented benefits in productivity, quality, organizational strength, customer service, executive retention and profitability.
  • Enhanced relationships. In the study of 100 executives, the benefits included improved working relationships with direct reports as well as immediate supervisors, peers and clients external to the organization.
  • Increased leadership effectiveness. Dell Computer Corporation found more promotions among senior staff members who had been coached than those who had not.

Companies find substantial and quantifiable business results

Below are some examples from business impact studies.

  • One study asked consulting clients for a conservative estimate of the financial benefits gained from coaching. The average response indicated a gain of $100,000. 28% claimed they had learned enough to boost quantifiable job performance -whether in sales, productivity or profits – by $500,000 to $1 million!
  • A large employer in the hospitality industry saved between $30 million and $60 million by coaching its top 200 executives.

ROI

Calculating the return on investment is a hot topic in contemporary coaching. So far,
ROI is a summary statistic reported in studies that look at business impact.

  • A landmark study commissioned by Right Management Consultants based in Philadelphia found a return-on-investment of dollars spent on executive coaching of nearly 600%. Executives engaged in coaching reported increases in productivity, improvement in relationships with direct reports and colleagues, and greater job satisfaction (Botch 2001).
  • Research conducted by Metrix Global on coaching in Fortune 500 firms found a 529% return on the investment made in coaching in addition to more intangible benefits (Wilson 2004).
  • Studies completed by ASTD showed a ROI of five times the cost of coaching.
  • Studies by outplacement firm Manchester showed it to be six times the cost of coaching.