Article

Business impact of executive coaching: Demonstrating monetary value

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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.

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... Therefore, we excluded studies where the author was the coach (i.e. lacked research independence) and the two studies that calculated 'Return on Investment' (ROI) for coaching (Parker-Wilkins, 2006;Phillips, 2007). The lack of research independence is one of the main shortcomings of existing EC outcome research which will be explained later in our review as we discuss the methodological challenges associated with EC research. ...
... We also excluded the two ROI studies identified in our initial list because none offers confidence regarding rigorous calculations of ROI. These studies displayed large difference in EC ROI calculations with one estimating it to 689% (Parker-Wilkins, 2006) and the other to 221% (Phillips, 2007). This signals inconsistency in calculations, but we also felt that both had weaknesses in their data collection method. ...
... Another method questioned about its potential to measure outcomes (Grant, 2012b) is the Return on Investment (ROI), with only two peer-reviewed EC studies having used this method (Parker-Wilkins, 2006;Phillips, 2007). For reasons described earlier, both of those studies were excluded from our analysis. ...
... The consulting firm Booz-Allen Hamilton (2006) conducted an ROI study to increase understanding of the business impact of executive coaching throughout their firm which provided an approach to assess the monetary value of executive coaching in firms. In this study, officers were interviewed about their expectations for executive coaching in eight business areas: improved teamwork, team member satisfaction, increased retention, increased productivity, increased quality of consulting, accelerated promotions, increased client satisfaction and increased diversity (Parker Wilkins, 2006). Second, coaching produced intangible and monetary benefits for all business impact areas except diversity (Parker-Wilkins, 2006). ...
... In this study, officers were interviewed about their expectations for executive coaching in eight business areas: improved teamwork, team member satisfaction, increased retention, increased productivity, increased quality of consulting, accelerated promotions, increased client satisfaction and increased diversity (Parker Wilkins, 2006). Second, coaching produced intangible and monetary benefits for all business impact areas except diversity (Parker-Wilkins, 2006). Last, the findings resulted in a ROI of $3,268,325 which is close to 700% (Parker-Wilkins, 2006). ...
... Second, coaching produced intangible and monetary benefits for all business impact areas except diversity (Parker-Wilkins, 2006). Last, the findings resulted in a ROI of $3,268,325 which is close to 700% (Parker-Wilkins, 2006). (See Appendix A for detailed results and ROI calculation formula). ...
Article
In this thesis, I assert positive psychology is the science at the heart of coaching and argue it is an evidence-based coaching model. I provide a background of positive psychology and briefly discuss its history, evolution, psychological influences and current challenges. I discuss the nature of coaching, varying definitions and common themes. Critical questions surrounding Evidence Based Practice (EBP) and how can it be applied to coaching are also addressed. Examples of single, integrative and cross-disciplinary theoretical approaches to coaching are also explored. In my final chapter, I review and answer my thesis question of whether positive psychology is an evidence based approach to coaching, including an example from a recent client engagement. Coaching considerations for using positive psychology are explored as is the future of positive psychology coaching and research areas.
... Therefore, we excluded studies where the author was the coach (i.e. lacked research independence) and the two studies that calculated 'Return on Investment' (ROI) for coaching (Parker-Wilkins, 2006;Phillips, 2007). The lack of research independence is one of the main shortcomings of existing EC outcome research which will be explained later in our review as we discuss the methodological challenges associated with EC research. ...
... We also excluded the two ROI studies identified in our initial list because none offers confidence regarding rigorous calculations of ROI. These studies displayed large difference in EC ROI calculations with one estimating it to 689% (Parker-Wilkins, 2006) and the other to 221% (Phillips, 2007). This signals inconsistency in calculations, but we also felt that both had weaknesses in their data collection method. ...
... Another method questioned about its potential to measure outcomes (Grant, 2012b) is the Return on Investment (ROI), with only two peer-reviewed EC studies having used this method (Parker-Wilkins, 2006;Phillips, 2007). For reasons described earlier, both of those studies were excluded from our analysis. ...
Article
In this article, we focus on a specific type of personal and professional development practice -executive coaching- and present the most extensive systematic review of executive coaching outcome studies published in peer-reviewed scholarly journals to date. We focus only on coaching provided by external coaches to organizational members. Our purpose is twofold: First, to present and evaluate how executive coaching outcome studies are designed and researched (particularly regarding methodological rigor and context-sensitivity). Secondly, to provide a comprehensive review of what we know about executive coaching outcomes, what are the contextual drivers that affect coaching interventions and what the current gaps in our understanding of coaching practice. On that basis, we discuss and provide a research agenda that might significantly shift the field. We argue that methodological rigor is as important as context-sensitivity in the design of executive coaching outcome studies. We conclude with a discussion of implications for practice. FULL-TEXT AVAILABLE VIA THE FOLLOWING LINK: https://ora.ox.ac.uk/objects/uuid:8548836a-13af-4f3c-bac9-91e02bb4baf0
... Studies that make use of qualitative methodologies are the exception. Examples include structured interviews (Dexter & Prince, 2007;Parker-Wilkins, 2006), critical incident technique (McGurk, 2009;Watkins, Lysã, & Demarrais, 2011), and grounded analysis of reflective journals (Brown, McCracken, & O'Kane, 2011). These various self-report methods while useful have major limitations when used as the sole means to gather data on the impact of leadership development. ...
... A number of studies have investigated the impact of these relational leadership development strategies on organizational outcomes. These studies in the main focus on a specific practice such as coaching (Jones, 2006), executive coaching (Parker-Wilkins, 2006;Smither et al., 2003;Kombarakaren, 2008), and formal mentoring (Levinson, Van Der Stede, & Cohen, 2006) or they are combined with other leadership development practices such as formal classroom development (Olivero, Bane, & Kopelman, 1997). The number of studies is modest, however the research suggests promise on organizational outcomes. ...
... The number of studies is modest, however the research suggests promise on organizational outcomes. With the exception of one study that demonstrated financial outcomes of leadership development (Parker-Wilkins, 2006) the remaining studies demonstrate both human resource and performance outcomes. Human resource outcomes reported include increased diversity (Parker-Wilkins, 2002), enhanced leadership competencies (Levenson, Van Der Stede, & Cohen, 2006), and enhanced trust (Kombarakaren, 2008). ...
Chapter
This chapter answers the question what is understood by leadership development and the different types of leadership development practices found in organizations. It considers the state of the leadership development–organizational outcomes literature and reviews the studies that have investigated the organizational outcomes of leadership development practices. The chapter categorizes leadership development practices into formal leadership development programs, experience-based leadership development programs, and relationship-based leadership development programs and reviews the organizational outcomes for each of these different sets of practices. It concludes by summarizing an agenda for future research on leadership development and organizational outcomes.
... At least four studies report an average return on investment (ROI) in the range of 5 to 7 times the cost of coaching (Anderson, 2001;International Coach Federation, 2009;McGovern et al., 2001;Parker-Wilkins, 2006). The Corporate Leadership Council (2004) reported that additional studies have obtained similar ROI results. ...
... However, it is noted here because of the relatively consistent findings that across such a variety of methods, purposes, and measures, researchers are reporting positive findings. Each of the references noted here describes some tangible positive outcomes from coaching: ■ research based on self-report from participants and their managers using diverse samples and data-collection methodologies (e.g., Bush, 2005; B. L. Davis & Petchenik, 1998;Kombarakaran, Yang, Baker, & Fernandes, 2008;Leedham, 2005;Seamons, 2006;Thompson, 1986;Wasylyshyn, 2003;Wasylyshyn, Gronsky, & Haas, 2006); ■ individual case studies (e.g., Blattner, 2005;Diedrich, 1996;Hunt, 2003;Kiel, Rimmer, Williams, & Doyle, 1996;Kralj, 2001;Libri & Kemp, 2006;Natale & Diamante, 2005;Orenstein, 2006;Peterson, 1996;Peterson & Millier, 2005;Schnell, 2005;Tobias, 1996;Wasylyshyn, 2005;Winum, 2005); ■ organizational case studies, dozens of which are described in books by Clutterbuck and Megginson (2005), Hunt and Weintraub (2007), and Jarvis et al. (2006); ■ surveys of organizational purchasers of coaching (Dagley, 2006;Leedham, 2005;McDermott, Levenson, & Newton, 2007); ■ evaluations of ROI (e.g., Anderson, 2001;Corporate Leadership Council, 2004;Holt & Peterson, 2006;McGovern et al., 2001;Parker-Wilkins, 2006;Phillips, 2007;Schlosser, Steinbrenner, Kumata, & Hunt, 2006); ■ a small but growing number of quasi-experimental and other carefully designed research studies (e.g., Evers, Brouwers, & Tomic, 2006;Finn, 2007;Finn, Mason, & Griffin, 2006;Grant, Curtayne, & Burton, 2009;Offermanns, 2004 [as reported in Greif, 2007]; Peterson, 1993b;Smither et al., 2003;Steinmetz, 2005 Levenson, 2009;MacKie, 2007;Passmore & Gibbes, 2007). ...
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Executive coaching has exploded in popularity over the past decade and has many passionate advocates, including coaches, participants who have personally benefited from coaching, and their organizational sponsors who have seen the transformational power of coaching firsthand. Yet there is still considerable debate about such fundamental issues as the definition and effectiveness of coaching, the competencies and qualifications of effective coaches, and how to match coaches and participants. This chapter examines these and other issues important to coaches, researchers, users of coaching services, and those who train coaches. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
... For example, McGovern, Lindemann, Vergara, Murphy, Barker, and Warrenfeltz (2001) reported that executives realized improvements in productivity, quality, organizational strength, customer service, and shareholder value, realizing an average ROI of almost six times the cost of coaching. Likewise, Parker-Wilkins (2006) and Anderson (2001) estimated an ROI approximating 700% due to coaching. ...
... Over 75% of executive reactions to the idea of working with a coach were significantly positive (Wasylyshyn, 2003). Respondents were very satisfied with coaching Á 86% rated coaching as very effective; 95% stated they were doing things differently as a result of coaching; and 95% indicated they would recommend coaching to other staff members (Parker-Wilkins, 2006). ...
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The popularity of executive coaching has increased dramatically in both the practitioner world and academia during the past decade. However, evaluating the effectiveness of coaching has lagged behind. Executive coaching is a multidisciplinary practice, and professionals from many different scholarly backgrounds provide coaching services. The paucity of empirical research may be attributed to the lack of a consensus among these divergent professionals regarding whether and how to evaluate the effectiveness of coaching. In this article, we conducted a meta-analysis of the empirical research as well as reviewed the retrospective studies evaluating coaching effectiveness. Subsequently, we discussed six areas that impact the way researchers evaluate coaching effectiveness and the conclusions they may draw from their studies. Although the Return On Investment (ROI) index provides a straightforward, overall measure of effectiveness, its veracity and usefulness is questioned. It is hoped that the clarification of these areas will help guide the future of coaching evaluation research and practice.
... Ability enhancing high performance practices, such as training and staffing, promote employees' knowledge, skills, and abilities (KSAs), resulting in high-quality products and services. On the other hand, motivation-focused HPWPs assist employees in directing their efforts toward achieving organisational objectives by providing incentives that stimulate work motivation (Liao & Han, 2019 employees the autonomy to develop new expertise and abilities, thus decreasing the supervision cost and inspiring them to work more efficiently (Liao & Han, 2019;Parker, 2006). Based on this review, this study hypothesizes a positive relationship between HPWPs and branch market performance. ...
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The purpose of this paper is on how ability enhancing, motivation focused and opportunity creating high performance work practices and employee’s perception of HRM system strength relate to performance outcome i.e. branch service performance in a Bank’s settings. Furthermore, this paper explores the mediation effect of Line mangers ability, motivation and opportunity to implement human resource practices between the high performance work practices, perception of HRM system strength and service performance. Adopted a quantitative research design. Data collected from a sample of 761 employees across 380 different bank branches in Pakistan. Structural equational modeling technique was used to analyze the data. The result supported both content and process perspectives and the positive impact of ability, motivation and opportunity HR practices and HRM system strength on branch service performance. However, the mediation results indicated the partial acceptance. This study provides an empirical evidence of how high performance work practices and employee’s perception of HRM system strength influence branch performance of bank’s employees in developing nation context. The findings of this paper are expected to encourage researchers to be more thoughtful to the connection between organisational HRM system support and HR practices to improve performance within organisations by emphasizing the alignment between Line manager’s AMO and HPWP practices.
... A study conducted by MetrixGlobal, LLC at Booz Allen found that executive coaching generated a return-on-investment of nearly 700% (Parker-Wilkins, 2006). Twenty-eight of the original forty-three respondents found that the business areas most impacted as a result of the executive coaching experience they underwent included: improved team work, team member satisfaction, increased retention, increased productivity, increased quality of consulting, accelerated promotions, increased client satisfaction, and increased diversity. ...
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The relationship between executive coaching and organizational performance of female executives as a predictor for organizational success
... Despite the fact that the core of organizational leadership entails social influence, few studies examined criteria beyond the leader themselves-and those that did tended to rely on the clients' perceptions of changes in subordinates attitudes and behaviors rather than actual assessments of subordinates. For example, Parker-Wilkins (2006) found that 54% of leaders cited subordinate satisfaction as being impacted by changes in the leader behaviors that resulted from coaching; however, subordinate satisfaction was not directly assessed in the study. Future evaluation efforts need to incorporate a multi-level perspective of outcomes from leadership coaching that includes trickle-down effects of changes in clients' leadership behaviors on subordinates' job attitudes, performance, and retention. ...
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Leadership coaching reflects an evolving dynamic between the client and coach that is qualitatively different from most approaches to leadership development and therefore holds particular challenges for evaluation. Based on reviews of academic and practitioner literatures, this paper presents an integrated framework of coaching evaluation that includes formative evaluations of the client, coach, client–coach relationship, and coaching process, as well as summative evaluations based on coaching outcomes. The paper also includes a quantitative synthesis examining evaluation methodologies in 49 leadership coaching studies. The results revealed that self-reported changes in clients' leadership behaviors are the most frequently assessed coaching outcome, followed by clients' perceptions of the effectiveness of coaching. Recommendations to advance coaching evaluation research include the creation of collaborative partnerships between the evaluation stakeholders (client, coach, client's organization, and coaching organization) to facilitate systematic formative evaluations, the collection of multi-source and multi-level data, and the inclusion of distal outcomes in evaluation plans.
... However, there are number of different applications of this formula reported in the literature; for example, deliberately underestimating the financial return figure, thereby producing a 'conservative' estimate, or including a rating of the coachee's level of confidence that all or some of the perceived benefits were in fact due to coaching (De Meuse et al., 2009;Parker-Wilkins, 2006;Phillips, 2007).The impact of these varied applications is that the meaning of the ROI metric varies considerably between different studies, making the ROI metric unreliable and this makes meaningful comparisons between studies difficult if not impossible. ...
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In this article, it is argued that financial return on investment (ROI) is an unreliable and insufficient measure of coaching outcomes, and that an over-emphasis on financial returns can restrict coaches’ and organisations’ awareness of the full range of positive outcomes possible through coaching. Furthermore, poorly targeted coaching interventions that myopically focus on maximising financial returns may actually inadvertently increase job-related stress and anxiety. The well-being and engagement framework (WBEF) is presented as an example of a potential approach for evaluating the impact of coaching in organisational settings that can give a richer overview of coaching outcomes than financial ROI. Although financial ROI may well be an attractive metric for some managers and organisations, it is proposed that frameworks such as the WBEF and goal attainment can provide a far more comprehensive and meaningful metric than financial ROI.
... In reviewing the previous existing empirical research on executive coaching, support for a number of points discussed in the practice-based literature was found. Specifically, executive coaching was suggested as a means for increasing productivity, learning, job satisfaction, and behaviour change (Finn, 2007;Garman, Whiston, & Zlatoper, 2000;Gegner, 1997;Hall, et al., 1999;Judge & Cowell, 1997;Kampa-Kokesch, 2001;Luthans & Peterson, 2003;Olivero, et al., 1997;Parker-Wilkins, 2006;Smither, et al., 2003;Starman, 2007;Sue-Chan & Latham, 2004). Accordingly, the effectiveness of an executive coaching intervention in this study is assessed using individual indicators, which can be aggregated into two clusters, proximal outcomes, and distal outcomes. ...
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While executive coaching is a key means by which organisations and individuals build executives’ capabilities, very little research has investigated how effective or beneficial this development tool is to the individuals or the organisations in which they work. The purpose of this study was to examine executive coaching effectiveness by investigating whether executive coaching has an impact on coachee performance outcomes as well as individual outcomes as manifested by self awareness, career satisfaction, job affective commitment, and job performance. Coaching outcomes were examined through a quasi-experimental field pre-post design with an untreated control group. The study participants (n=197) were drawn from the client bases of four Israeli-based firms whose primary professional services focused on executive coaching. The primary conclusion is that executive coaching may be a mechanism by which executives could be helped in improving and maintaining a high level of career satisfaction. The results should assist organizations in designing more effective executive coaching programs, and in making informed decisions about implementing and measuring executive coaching.
... Executive coaching is a means for increasing productivity, learning, job satisfaction, and behavior change (i.e. Starman, 2007;Parker-Wilkins, 2006). On this basis, the effectiveness of a coaching intervention in this paper is assessed using individual indicators, aggregated into proximal outcomes and distal outcomes. ...
Article
Full-text available
Purpose – Executive coaching is gaining in popularity as a management developmental activity which facilitates organisational change for sustainability. The purpose of this paper is to explore the relationships among coachee feedback receptivity, pre-training motivation, learning goal orientation, developmental self-efficacy, self-reported job performance improvement, self-awareness, task performance and affective commitment in terms of executive coaching effectiveness as a form of management development. Design/methodology/approach – A non-randomised controlled trial research design was conducted to examine the hypothesized relationships among coachee characteristics and executive coaching effectiveness, as reflected in greater levels of individual outcomes in corporate Israel. Findings – A significant interaction between learning goal orientation and pre-training motivation on improvement in job self-reported performance was found. Additionally, a negative relationship was found between learning goal orientation and improvement in self-reported job performance among coachees with low levels of pre-training motivation. Finally, self-efficacy demonstrates a positive relationship with job performance improvement. Originality/value – This research provides greater insights about the type of individual outcomes executive coaching should achieve, and under which conditions coaching is likely to be more beneficial for participants. This research has value for designing and implementing coaching programmes to drive sustainable development and innovation.
... According to Kaplan-Leiserson (2005), only 55% of organizations use executive coaching to train their top executives to improve leadership skills and company performance in spite of evidence demonstrating a high return on investment (ROI). Parker-Wilkins (2006) outlined three processes for ROI and coaching as follows: ...
... Although scholarly research on the monetary value of coaching is scant, a ROI study conducted by the Booz Allen Center for Performance Excellence (McLean, Virginia, USA) suggests that organizational coaching interventions can and do produce positive return on investment, in the Booz Allen study an ROI of $3,268,325 or 689 percent (Parker-Wilkins, 2006). Another ROI study conducted by Metrix Global, a professional services firm, found that an executive coaching program in one client's Fortune 500 firm produced "a 529 percent return on investment and significant intangible benefits to the business" (Wilson, 2004, p. 98). ...
... Although many have made the business case for executive coaching (McGovern et al., 2001;Parker-Wilkins, 2006;Wasylyshyn, 2003), key issues exist within the industry and the field. Sherman and Freas (2004) likened executive coaching to the "wild west." ...
Article
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Although executive coaching has been shown to be effective, few research initiatives have attempted to understand the importance of the emergent relationship between a coach and coachee. This article explores the factors that influence coaching outcomes from both the coach and coachee's perspective and presents the results of the mediating effect that working alliance and information sharing have on coachee goal attainment and coachee insight outcomes. The authors explored these factors in both an academic coachee sample as well as an executive field sample. Results showed that coachee motivation was significantly positively related with coachee goal attainment and coachee insight in an academic sample but not in a field sample. Moreover, working alliance and information sharing partially mediated the relationship between a coach's psychological mindedness and coachee insight in an academic, but not field, sample. Another notable result was that the difficulty of the coaching goal did not impact how successful the coaching engagement was in terms of goal attainment. Implications of these findings for both research and practice are discussed.
... ROI is generally an important indicator in evaluating the investment of organizational interventions, whereas the empirical demonstration of the recovery of the investment has been a challenge in the study of results in the case of coaching (Bowles et al. 2007). There have been reported ROI values of six (McGovern et al. 2001), and even seven times greater (Parker-Wilkins 2006) as an effect of coaching. Despite being an objective indicator, its interpretation needs to be done with caution, as the calculation was often based on questionnaires or interviews, subjectively influenced. ...
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Managerial coaching is currently seen as an effective leadership practice facilitating learning process of the employees for performing better and being more effective in organizations. This article builds on recent research on the importance of the managerial coaching by empirically investigating the effects of a cognitive-behavioral coaching programme over mid-level managers. Due to the similarities between managerial coaching behaviors and transformational leadership behaviors, we have adopted the transformational leadership model as theoretical framework for evaluating management behaviors. The study used a pre-posttest approach to test the effects of the coaching program especially designed for 23 mid-level managers having as responsibility the supervision of production teams in a multinational organization. The major aims of the program consisted of: developing managerial coaching skills, assertive communication skills, motivation of subordinates. Overall, the analysis of results elicited an increase of scores in the leadership behavior dimensions measured by multifactor leadership questionnaire that are part of the managerial coaching skills. Besides, the effectiveness perceived as an indicator of performance was significantly higher upon completion of the coaching program. Findings suggest that coaching, as a professional development method, has great potential to contribute to the managerial behaviors that facilitate development at subordinate level, as they are captured by some transformational and transactional scales. Such knowledge can be informative for practitioners as well in developing effective managers and leaders and understanding and managing employee attitudes and behaviors in organizations.
... Although the fundamental aim of executive coaching is to improve leadership development, it is also intended to have benefit for leaders themselves. For example, executive coaching is frequently used to attract (Maturi, 2000), retain (Parker-Wilkins, 2006) and support executives (Thach, 2002), and based on the anecdotal feedback, leaders do indeed have very positive reactions to executive coaching. Yet there is limited evidence to explain how executive coaching achieves these outcomes, signifying the need for further research (Kampa-Kokesch, 2001;Natale & Diamante, 2005). ...
Article
Full-text available
Executive coaching has been described as a multibillion dollar enterprise (Ennis, 2004) costing some organisations up to $15,000 (USD) a day (Berglas, 2002). Executive coaching has also been reported as the second fastest growth industry (Wasylyshyn, 2003). Despite these astounding figures, empirical executive coaching research is still limited, thus more randomised, controlled studies are required (Grant, 2005). There is a fundamental need for high quality research to demonstrate the effects of executive coaching and provide justification for the level of commitment expended. The current research program addressed this need through three studies which together provide empirical evidence as to the psychological and behavioural effects of executive coaching. In the first study, twenty-three leaders from a year long transformational leadership development program volunteered to participate in six sessions of executive coaching. The study examined the effects of executive coaching on leaders’ psychological states, specifically, their self-efficacy, developmental support, positive affect, openness to new behaviours and developmental planning. The study had an experimental design with random assignment of leaders to training and control groups which provided a rigorous basis to distinguish the effects of executive coaching from the effects of other leadership interventions in the program. Comparison of the training group (after six executive coaching sessions) with the control group (who had not received coaching) revealed that the training group reported significantly higher levels of self-efficacy, developmental support, openness to new behaviours, and developmental planning compared with the control group. No significant effects were observed for positive affect. Further analysis, however, revealed that the significant differences between the training group and the control group were due to a decrease in the control group before they commenced executive coaching, rather than because the training group increased on the psychological measures after participating in executive coaching. It was proposed that this pattern of results occurred because the pre-coaching measures were obtained at the end of a two day training workshop, when the psychological measures may have already been relatively high. Thus, the effect of executive coaching was to sustain the impact of the workshop for the training group. A longitudinal analysis was also carried out in Study One to examine whether the effects of executive coaching on the psychological variables were sustained over time. The pattern of change was examined at three time points: time one, prior to the commencement of executive coaching, time two, after the completion of six coaching sessions, and time three, six months after the completion of the six coaching sessions. This analysis was also affected by the training group’s high precoaching measures, but when the analyses were restricted to the control group (n=6) – who by this stage had received executive coaching, significant change over time was observed on all of the study measures, which was sustained up to six months after the completion of regular coaching sessions. However, because the control group sample was small, these findings were tested again in Study Two. The primary aim of Study Two though was to evaluate effects of executive coaching on transformational leadership behaviour, measured with self, supervisor and team member ratings. Twenty-seven leaders participated in this study. In the first instance, an experimental design was used to investigate whether leaders in the training group, who had been exposed to executive coaching, received higher ratings in transformational leadership behaviour compared with leaders in the control group. In the second instance this study examined whether there was change in transformational behaviour over time, observed in the area that was the focus of leaders’ developmental efforts. Both approaches yielded similar findings in that the team member feedback identified significant improvement in leaders’ transformational leadership behaviour after executive coaching. There were no significant changes in leaders’ self or supervisor ratings after executive coaching. When the psychological effects of executive coaching were re-examined in Study Two, the expected differences were observed between the training and control groups. However, once again, the data from the training group failed to show the anticipated pattern of improvement over time. This failure was attributed to the small sample size and low statistical power. Consequently, a final analysis was conducted combining the data from leaders who participated in Study One and Study Two. This analysis measured change in leaders’ psychological states from pre-to post-executive coaching and confirmed that after executive coaching leaders experienced effects in the five psychological states measured. Thus, overall, the data from the two studies supported the psychological impact of executive coaching. In Study Three a qualitative approach was employed to triangulate the quantitative results from Study One and Study Two. Eight leaders were randomly identified from the Study One and Study Two samples, and interviews were carried out with these leaders, their supervisors, two team members and their coaches (a total of 40 interviews). The interview data confirmed the effect of executive coaching on the previously investigated psychological variables and also identified coaching as providing leaders with a sense of greater control. In terms of transformational leadership behaviours, all participants in the study identified improvements in leaders’ behaviour, particularly in communication, and the transformational leadership dimensions of intellectual stimulation, inspirational motivation and individualised consideration. One further aim of Study Three was to investigate the environmental conditions to determine the impact they had on the effectiveness of executive coaching. Constant change and high work load were most frequently identified as restricting participants’ ability to benefit from executive coaching. Overall, this program of research has demonstrated leadership development through executive coaching. The studies revealed that executive coaching positively enhanced the psychological states of self-efficacy, developmental support, positive affect, openness to new behaviours, and developmental planning. Impressively, the results also showed that executive coaching had sustained effects on some of the psychological states, and on team members’ perceptions of their leader’s transformational leadership behaviour. Practically, these findings justify the use of executive coaching in organisational settings. Theoretically, these outcomes augment the limited body of knowledge in this area.
... Individuals who engage in a coaching relationship can expect to experience fresh perspectives on personal challenges and opportunities; enhanced thinking and decision-making skills; enhanced interpersonal effectiveness; and increased confidence in carrying out their chosen work and life roles. In another research study by Parker-Wilkins (2006), respondents stated that coaching assisted them in the development of three main competencies: leadership behavior (82 percent), building teams (41 percent), and developing staff (36 percent). Finally, in a study that captured the benefits of executive coaching, Leedham (2005) reports that the most commonly occurring benefits from the perspective of the coachees is increased self-confidence, clarity of purpose, focus on goals, improved relationships, selfawareness, and insights. ...
... ROI is generally an important indicator in evaluating the investment of organizational interventions, whereas the empirical demonstration of the recovery of the investment has been a challenge in the study of results in the case of coaching (Bowles et al. 2007). There have been reported ROI values of six (McGovern et al. 2001), and even seven times greater (Parker-Wilkins 2006) as an effect of coaching. Despite being an objective indicator, its interpretation needs to be done with caution, as the calculation was often based on questionnaires or interviews, subjectively influenced. ...
Article
Full-text available
Managerial coaching is currently seen as an effective leadership practice facilitating learning process of the employees for performing better and being more effective in organizations. This article builds on recent research on the importance of the managerial coaching by empirically investigating the effects of a cognitive-behavioral coaching programme over mid-level managers. Due to the similarities between managerial coaching behaviors and transformational leadership behaviors, we have adopted the transformational leadership model as theoretical framework for evaluating management behaviors. The study used a pre-posttest approach to test the effects of the coaching program especially designed for 23 mid-level managers having as responsibility the supervision of production teams in a multinational organization. The major aims of the program consisted of: developing managerial coaching skills, assertive communication skills, motivation of subordinates. Overall, the analysis of results elicited an increase of scores in the leadership behavior dimensions measured by multifactor leadership questionnaire that are part of the managerial coaching skills. Besides, the effectiveness perceived as an indicator of performance was significantly higher upon completion of the coaching program. Findings suggest that coaching, as a professional development method, has great potential to contribute to the managerial behaviors that facilitate development at subordinate level, as they are captured by some transformational and transactional scales. Such knowledge can be informative for practitioners as well in developing effective managers and leaders and understanding and managing employee attitudes and behaviors in organizations.
... Therefore, the result of the current research provides the possibility to use brain information to evaluate training/coaching effectiveness from the viewpoint of neuroscience as there is no objective measure to evaluate the effect of training/coaching except ROI. ROI is calculated by subtracting the costs of training/coaching from the estimated value of the outcomes of the training/coaching 99 but there are many different applications of this formula reported in the literature (e.g., deliberately underestimating the financial return figure and producing a conservative estimate) making the metric unreliable 26,100,101 . ...
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... However from the client's point of view, suggesting a potential ROI is often the difference between gaining approval for the coaching project or not. While ROI may not be the most scientific approach to examining effectiveness, practitioner's find it a very useful tool for "proving" their worth to organisations (Parker-Wilkins, 2006). However, ROI is an exceptionally subjective outcome that carries with it a wide range of reliability and validity issues (De Meuse et al., 2009;Grant, 2012). ...
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Introduction Why the focus on teams? What do we mean by “a team”? Definition of Team Coaching Discussion and limitations of the literature Future directions for research Conclusion References
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The Problem Leadership development is one of the most pressing issues for human resource practitioners within organizations. Recently, coaching to enhance emotional intelligence (EQ) has become a major focal area for human resource and leadership development. The concept of EQ has received overwhelming research and practical support, suggesting that it, more so than technical skills or cognitive ability, is the key determinant of success in leaders. However, EQ alone may not help leaders in creating an inclusive work environment and proactively recruiting and developing diverse employees. The Solution Diversity intelligence (DQ), recently introduced by Hughes, is another important skill that has significant impact on the interpersonal relationships at work. The current article seeks to integrate the concepts of EQ and DQ with a practical and strategic approach for human resource development professionals. A theoretical review, qualitative examination, and practical application of the main models of EQ with a focus on how specific components of these models can be utilized in coaching for increased DQ is presented. Using concepts of executive coaching and general principles of leadership development, the current study examines which facets, or dimensions, of EQ should be highlighted and developed to increase DQ. The Stakeholders In addition to identifying which facets of each EQ model are essential for DQ, practical applications for human resource development practitioners and leaders are presented.
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