Bottom-Line Impact (Impact of coaching on the bottom Line)
Coaching creates insight, purpose, competence and well-being among participants. However, it isn’t just another feel-good endeavour based in soft skills that have no correlation to the bottom line.
Several studies* have examined the effects of quality executive coaching on the financial success of business. Results indicate that a value for money investment in this specialty area can provide major dividends.
*In an article in the Harvard Business Review (Jan-Feb 1998) by Rucci, Kirn and Quinn, entitled The Employee-Customer-Profit Chain at Sears, a model was developed indicating that a 5 "unit" increase of employee attitude led to 1.3 "unit" increase in customers' positive impression, resulting in a 0.5% increase in revenue growth.
Another study examined the effects of executive coaching in a public sector municipal agency. Thirty one managers underwent a conventional managerial training program, followed by eight weeks of one-on-one executive coaching. Training, (which included goal setting, collaborative problem solving, practice, feedback, supervisory involvement, evaluation of end-results and a public presentation) increased productivity by 22.4%. Training and coaching in conjunction increased productivity by 88%, a significantly greater gain compared to training alone.
(Public Personnel Management; Washington; Winter 1997; Gerald Olivero; K Denise Bane; Richard E Kopelman)