Talking to Your Boss - The ROI of Coaching
We know coaching provides a big impact — now to get your boss onboard as your sponsor.
Executive coaching is no longer just for executives, as the benefits of coaching are valuable no matter where you are in your life or career, not just to the coachee but also to the organization for which they work.
At some organizations, coaches are funded through learning and development funds that are already set aside for each employee, or will be made available. If your manager doesn’t know, have them speak with the human resources or leadership team. At smaller organizations your manager may have to look to other areas of their budget to foot the bill.
Which means, when I’m talking with prospective clients, I often get the question, “I know this is going to make such a big difference, but how do I get the buy-in from my manager/sponsor? Is there a specific return on investment (ROI) of coaching?”
I recommend a three-fold approach to having a conversation with your manager about engaging in the coaching process. The first part lays out findings from research, the second opens up the discussion for company-specific value, and the third re-focuses on how your ask and how you specifically plan on making the most of the opportunity.
First, the facts
There are plenty of studies documenting the value of coaching, as well as the value of developing a ‘coaching culture.’
The International Coach Federation (ICF) has provided a number of studies showing the coaching usually generates a ROI of between $4 and $8 for every dollar invested.
Benefits reported by the companies leveraging coaches:
improves individual and team performance
increases productivity and quality
improved customer service and reduced customer complaints
increases employee and staff engagement for improved retention (especially by those receiving coaching)
bottom-line profitability
empowers individuals and encourages them to take responsibility
helps identify and develop high potential employees
helps identify both organizational and individual strengths and development opportunities
demonstrates organizational commitment to human resource development
Benefits reported by individuals receiving the coaching:
improved working relationships with direct reports, immediate supervisors, peers, and external clients/relationships
better teamwork
greater job satisfaction
reduction in conflicts
greater organizational commitment and loyalty
motivates and empowers to excel
Data from the ICF
80% saw improved self-confidence
73% saw improved relationships
72% saw improved communication skills
70% saw improved work performance
61% saw improved business management
57% saw improved time management
51% saw improved team performance
Next, Prod Thinking by Ask Questions About Larger Costs & Value
With a general foundation in place of the possible value and return on investment of working with a coach, it’s time to start developing a custom ROI for your particular business and situation.
Before going to your boss, take the time to reflect and answer some high-level questions yourself. Pull the key points of your reflection together to share with your manager, along with asking them some of the same key questions. They might all of a sudden see even more benefits.
“What outcome do you expect from the coaching?”
“What will become possible when this outcome is achieved?”
“What is this worth to you?”
“What is it worth to the organization?”
“What happens if you don’t fix the problem? What will that cost you and the organization?”
Get even more specific as needed, for example:
“What will it cost you if the team doesn’t deliver on time and on budget?”
“What would be the value of seeing the team’s deliverables come through on time and under budget?”
“How much does it cost to replace someone in your organization? Given your answer, let’s calculate the cost of your current turnover and the value of hitting your reduced turnover goal.”
“How much is this strategic initiative worth to the organization? What is the cost if it doesn’t happen?”
“What is the gap between the performance of the sales team now and the performance you expect?”
“How might your compensation increase if you get that next position?”
“How much could the organization grow if it had additional leaders grown from within?“
Sometimes, the most valuable parts of coaching are intangible:
“How would you feel if you had more time, and could leave the office earlier?”
“What would it mean for your peace of mind if you reduce the conflicts happening on your team?”
“How much stress are you feeling about this issue? What would it mean to you if we could eliminate this stress?”
“What would it mean to you if you and your manager were on the same page?”
“What will your manager think about you when you make this change?”
“How will you feel when we achieve your goal?”
Finally, Bring It Home With Your Commitment
Having talked through the general known benefits and ROI of coaching and potential opportunities specifically for your business, it's now time to make your ask and commitment. Keep it as simple as possible.
“With that in mind, I’d like request your support in securing a coach to work with on a bi-weekly basis to focus on 1____, 2______ and 3____________ so that {specific ROI/benefit}. The International Coach Federation has a database of certified coaches we could select from to make sure it’s a powerful fit. What do you think?”
This process also makes it easy to set up metrics to track progress and results during the coaching engagement, because you’re already co-creating the expected outcomes together.
Bringing It All Together - The Pitch
“Did you know that studies have found that companies have a $4-8 Return on Investment for every dollar they invest in coaching for their employees? The biggest impacts are increased productivity, quality, customer care, talent retention and bottom line, with employees reporting improved relationships, communication and confidence. What would the cost be for us to lose and have to rebuild our sales team right now? What is the value if we make our numbers this quarter, versus the cost of not? How much more productive would we all be right now if we could eliminate some of the stresses around all of the change? I’m seeing hundreds of thousands of dollars potentially lost if we don’t take action, and the opportunity to overtake our competitors and lead the market if we do...With that in mind, I’d like request your support in securing a coach to work with on a bi-weekly basis to focus on guiding me in supporting the team in going virtual, managing through change, and selling in a turbulent market so that we can retain the team, maintain productivity and quality, as well as meet or exceed our sales numbers during this time of crisis. The International Coach Federation has a database of certified coaches we could select from to make sure it’s a powerful fit. What do you think?”