It seems everyone is trying to reduce organizational costs and achieve more productivity from their existing resources. I have even heard some say that they cannot afford executive coaching in our current economic environment. Unfortunately, too often executive coaching is seen as a luxury item instead of a necessity. For those organizations that want to propel themselves forward in these challenging times, I would ask how could you afford not to have executive coaching as part of your organizational game plan?
In his book Top Grading, Bradford Smart asserts that turning over good people in an organization can cost the organization up to 24 times the individual’s annual salary. You think about that! Let us say an executive in your organization earns a modest $175k a year. If you multiply that executive’s annual salary by six (instead of 24, which Bradford Smart suggests), the cost of losing that executive is over $1 million dollars to your organization. Now imagine the savings to your organization if you not only reduce the turnover rate of your company by 3-4%, but through executive coaching programs increase the productivity of those you are retaining!
Bottom line, executive coaching can help. Coaching is not all qualitative, soft issues. Executive coaching can have a direct impact on the quantitative, ROI, bottom line issues of your organization’s profit/loss sheet. The costs associated with coaching 3 – 5 executives in your organization are significantly less than the costs associated with the turnover or loss of one executive in your organization. Are you or your organization focused on the pennies and losing the dollars? This is a no brainer. Executive coaching makes sense (and cents!).
Thanks John,
Alot of great points on how important coaching is to building a solid business with solid people.
Val
.-= Val Wilcox´s last blog ..Meet Malin Berdette, World Traveler Extraordinaire =-.
I believe investing in our human capital has the greatest dividends.
~John
Dr. John,
One of the most notable distinctions an organization has is their ability to develop the leaders within the organization. Executive coaching is a great option for achieving this. I have read materials that suggest not only does the company benefit, but employee loyalty, satisfaction, and morale are improved through development. I have personally invested years in my own personal and professional development and have been fortunate enough to work with organizations who are willing and eager to invest in me as well. I have invested equal amounts of time investing in the development of others by developing leadership programs and curriculum. I am on board with you in observing first hand the positive ROI that can be attained through coaching. Great post!
.-= Krista Abbott´s last blog ..Get Inspired: Pimp Your Browswer with FireFox 3.6 Personas =-.
Krista,
I think you’ve found the key! It’s the difference between transformational leadership and transactional leadership.
Thanks for your insightful comments.
Blessings,
~John
Dr. John,
I can tell you personally how much growth I have had since hiring a coach, wow what a difference being held accountable has made in my life. Thanks for sharing.
Wes,
I think it is always beneficial to have an objective third party to provide feedback and accountability.
Thanks for sharing your success story.
Blessings,
~John
Hey John, you really touched on some important points on why it is important to have coaching as part of your organizational plan. Investing in the development of people you have already instead of having to continually replace them definitely makes sense (and cents!). Thanks for sharing!
.-= Kara Grabenhorst´s last blog ..Team… What Does It Mean? =-.
Kara,
Typically, the costs associated with coaching are minuscule compared to those associated with organizational loss, recruiting, hiring, transitioning the hire, training the hire, and the decreased production during the interim.
Thanks & Blessings,
~John
Personally I have hired different coaches and programs in the past and they have always been well worth it!
.-= Julianna Brower´s last blog ..How To Get A Facebook Opt In Box On Your Profile Page =-.
Julianna,
I too have had coaches along the way and it has always been beneficial. One of my favorite quotes is from the late great Jim Rohn, “We could all use a little coaching” (The Five Major Pieces to the Life Puzzle).
Thanks Julianna for your comment.
Blessigns,
~John
Hi John,
You nailed this one on the head. Corporate America generally does not spend enough time on training and showing appreciation. I look at this like a lawn. If I nurture it with water and food, then it will thrive and grow a deep root structure so it can survive tougher times. On the other hand, if I don’t take care of it then the weeds will come and those weeds will choke out the good turf. It would silly though to dig up that yard every time the weeds got out of hand!
.-= Renee Chase´s last blog ..Drink in Life Like Cold Water on a Hot Day =-.
Renee,
Great illustration! Thank you for your insight.
Blessings,
~John
Hi John,
What you say about executive coaching for corporations holds true for appropriate coaching in all kinds of businesses. People who are learning to be internet marketers or network marketers or salespeople in any company can become bogged down by all there is to know and do and having a coach who is qualified in their field can help them cut through all the confusion and grow more quickly and strongly.
Good info! Thanks,
Sandy
.-= Sandy & Al Abrams´s last blog ..Mammogram, Cat Scan – Life Saver or Cancer Cause? =-.
Sandy,
You are correct. We can all use some coaching and help, especially if we are wanting to master a new area. Why reinvent the wheel when you can learn vicariously from another’s life and leadership experiences?
Thank you for your comments.
Blessings,
~John
Coaching is so wonderful and leads to a better bottom line!!
.-= Jodi Lee´s last blog ..International Women’s Day =-.
Thanks Jodi.
John,
´s last blog ..Power vs Force =-.
I am completely with you on the leadership and coaching. It shows the results very quickly. I don’t have experience with big corporations, but with people and teams for my home business and definitely being a leader and teaching others to be leaders or better yet, coaching them to be leaders makes a huge positive difference quickly.
Thanks for the wisdom,
Venus
.-= Venus
Venus,
Yes, coaching can be a powerful tool that positively and quickly affects the ROI.
Thanks & Blessings,
~John
Great post John! You make a very strong case about Executive Coaching. I know the company that I worked for a few years ago seemed to have a revolving door of the top Execs just before I left. It is really easy for companies to blame the Execs for the financial difficulties they are having and to think that bringing in someone new will help. Maybe if they had just invested the money to get some Executive Coaching they could have saved a lot of time and money, and maybe even some jobs.
.-= Melissa Wright´s last blog ..What I have learned from the Olympics =-.
Melissa,
Great insight! I think we would agree that the greatest resource any organization has is its human capital. Investing in your people wisely (great transformational leadership) not only improves the quality of your people, creates loyalty, but eventually improves the output and the ROI.
Thanks & Blessings,
~John
Dr John,
I couldn’t agree more. The most important thing we can and should invest our money and time into is training, coaching and personal development. I think there is some fantastic books out there if someone is really struggling. One of my favorites though is Randy Gage – so entertaining yet so much to learn!
Blessings
Yamuna Keller
Yamuna,
I agree with you. People are our greatest asset and should be invested in wisely.
I am not familiar with Randy Gage. I will have to find him and place him on my ‘to read list.’
Thank you for your comments.
Blessings,
~John
John,
I totally agree coaching in business will take your game to the bbbnext level. Business owners need to budget in for coaching services. Thanks for a great post.
Debbie
Debbie,
Almost every elite performer has a coach of some sort. This is a great concept to bring into the executive / professional world.
Thank you for your insightful comments.
Blessings,
~John