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Business impact of executive coaching: demonstrating monetary value

Vernita Parker‐Wilkins (Executive Development Manager, Booz Allen Hamilton, McLean, Virginia, USA.)

Industrial and Commercial Training

ISSN: 0019-7858

Article publication date: 1 April 2006

Abstract

Purpose

The purpose of this paper is to increase understanding of the business impact of executive coaching and enhance the utilization of coaching throughout the firm.

Design/methodology/approach

The ROI study consisted of a three‐step process: understand the business value expected by the firm's senior leadership; document what staff have learned from coaching; explore how staff applied what they learned from coaching to create intangible and monetary value for the business.

Findings

After the effects of coaching were isolated: monetary benefits were discounted by the isolation (interviewees were asked how much of the value did they attribute directly to their coaching experience) and error percentages; two extreme values were eliminated from the analysis, each totaling over half a million dollars; all monetary benefits were reduced by an additional 50 percent to ensure a conservative set of monetary benefits; Coaching produced intangible and monetary benefits for seven out of eight business impact areas; and ROI of $3,268,325 (689 percent)

Practical implications

Attaining business benefits requires taking a more proactive stance in how coaching is managed: ongoing measurement of the value of coaching should be linked to the achievement of specific business objectives and value propositions set by Booz Allen officers; periodic reviews of progress and business outcomes will suggest ways to increase business value and meet senior leader expectations.

Originality/value

Provides leaders of executive development programs with an approach to assess the monetary value of executive coaching.

Keywords

Citation

Parker‐Wilkins, V. (2006), "Business impact of executive coaching: demonstrating monetary value", Industrial and Commercial Training, Vol. 38 No. 3, pp. 122-127. https://doi.org/10.1108/00197850610659373

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited