FACT SHEET - 2011

Marketplace Update – The Business of Coaching

Workplace Trends
(data referenced from: “Deloitte Talent Edge 2020 Report, Blueprints for the New Normal, December 2010)

• When asked to look ahead and predict where their talent strategies are headed, roughly two out of three survey respondents predict that their companies will increase or significantly increase their focus on accelerated leadership programs, such as coaching (64%).
• Even amidst high unemployment (reported at 9.6% in the U.S. in October 2010), the competition for talent continues to heat upundefinedfueled by the demands of an economy that grew even more global and more competitive during the recession. For companies competing in the global marketplace, getting the right talent in the right place at the right time represents a significant challenge.
• When asked to list their three most pressing talent concerns, 41% of executives named competing for talent globally and in emerging markets, followed by developing leaders and succession planning at 38%. Despite a weak job market, retaining employees at all levels was listed as a pressing talent concern by 37% of surveyed executives (Figure 4).

Human Capitol Trends
(data referenced from: Aberdeen Group Reports – 2009 & 2010)

• In Aberdeen’s 2009 Employee Engagement it was found that 60% of all organizations were focused on engagement as a tool to help with creativity and innovation – a critical business priority given the competitive landscape.
  Coaching is one of THE most effective ways to create a safe place for inspiring creativity among high performers and high potential employees.
• In Aberdeen’s 2009 Learning & Development study it was found that “senior leadership has a strong role to play. The top capability cited overall by 65% of all companies was visible senior leadership support for learning and development efforts. Given the impact that top learning practices (such as coaching) are having on organizational performance, this modeling of priorities from the top can play a big role in putting an organizational focus on learning and leadership.”

General Coaching Data
(data references noted inline below)

• As companies rapidly work to recalibrate their leadership development and talent management strategies – we’re finding that more and more are turning to a coaching approach.
• Issues such as engagement, retention, leadership, self-awareness and succession planning – are not “quick fix” issues that can be solved with one-off training classes.
• As evidence of the growing demand for coaching, the ICF attracted on average 400 new members globally each month in 2010 – and we expect this to continue to escalate in 2011.
• Further evidence of the demand for credentialed coaches, is the fact that the ICF Credential (currently held by more than 6,900 coaching professionals in over 70
• The approximate annual worldwide revenue produced by coaching is $1.5 billion (USD), 2007 ICF Global Coaching Study

Puget Sound Coaching Data
(from survey of PSCA members)
Companies around the globe, including many local Seattle businesses, are increasing investment in leadership development programs such as coaching. A recent PSCA survey of Seattle-area coaches found that:

• 71% expect an increase in demand for coaching in business organizations
• 75% say leadership skills and employee engagement are top issues driving increase in coaching
• 54% have seen an increase in job seekers utilizing coaching to improve job placement
• 91% say job seekers that have done coaching, secured successful job placements

The ROI of Coaching for Businesses
(data references noted inline below)

• Through coaching, companies today are realizing benefits that impact their bottom-line, both short term and long term:
  - Increased motivation
  - Improved performance/productivity
  - More effective & transferable skills development
  - Better collaboration/teamwork
  - Improved self-management and leadership
  - Increased employee engagement
  - Employee retention & succession planning
  - Increased capacity for change & growth
  - Inspired creativity & innovation
  - Development of next generation of leaders
  

• Companies that use or have used professional coaching for business reasons have seen a median return on investment of seven times their initial investment*, 2009 ICF Global Coaching Client Study. (*Results representative of survey respondent sample.)
• 86 percent of companies that use or have used coaching report at least a 100 percent return on their initial investment, as well as a significant impact in other client goal areas, 2009 ICF Global Coaching Client Study.
• In one study conducted by MetrixGlobal LLC, companies including Booz Allen Hamilton received an average return of $7.90 for every $1 invested in executive coaching.
• A study of Executive Coaching in a Fortune 500 firm by MetrixGlobal reported a 529% return on investment and significant intangible benefits to the business.
• A survey by Manchester Inc. of 100 executives found that coaching provided an average return on investment of almost six times the cost of the coaching.
• An internal report of the Personnel Management Association showed that when training is combined with coaching, individuals increase their productivity by an average of 86% compared to 22% with training alone.
• A Hay Group study of Fortune 500 companies found that 21 to 40% utilize Executive Coaching; Coaching was used as standard leadership development for elite executives and talented up-and-comers.
• A 2001 study on the impact of executive coaching by Manchester Inc. showed an average ROI of 5.7 times the initial investment or a return of more than $100,000, according to executives who estimated the monetary value of the results achieved through coaching.