While leadership coaching has become mainstream in athletic and physical sports, it is still not the case in the business world.
The term “leadership coaching” is still associated with mental health in the more conservative parts of the world, and the stigma is a huge problem.
But why should business leaders even opt for a coach?
According to TechCrunch, even the best leaders “self-sabotage” at least 30% of the time.
While we admire business leaders and marvel at their phenomenal feats, we fail to realize the struggles that go behind the scenes.
HBR believes there are three reasons why leaders opt for leadership coaching:
- Develop highly talented employees or facilitate transition amongst internal employees (48%)
- Act as a sounding board (26%)
- Address derailing or troubling behavior (12%)
But, a common question that keeps popping up is the ROI, or do we say ROC (Return on leadership coaching) on the undertaken leadership coaching initiatives.
Leadership coaching provides several tangible benefits.
HR Leaders and CXOs who are deliberating on implementing a leadership coaching program should note that executive leadership coaching provides a massive ROI. Like physical training coaches, the benefits of executive leadership coaching are evident in terms of productivity, leadership, and other measurable factors.
Here are some statistics to prove the ROI of leadership coaching:
- A study on Fortune 500 employees concluded that Executive leadership coaching produced a 788% ROI on the amount invested in leadership coaching. Not only did 77% of respondents state that the leadership coaching had a significant impact on their nine business measures, but it also improved overall performance, employee satisfaction, and engagement.
- In another study by Manchester, Inc. conducted amongst 100 executives, most of whom were from Fortune 1000 companies, executive leadership coaching showed an average ROI of almost six times the investment.
- According to the International Coaching Federation (ICF), 86% of organizations saw an ROI on their leadership coaching engagements, and 96% of those who had an Executive Coach said they would repeat the process.
- A detailed study by HBR, which tracked companies on S&P, showed that companies that spent aggressively on employee development outperformed the S&P by 17 - 35%.
And intangible benefits by helping leaders enable their team to become peak performers.
As with elite athletic coaches, the benefits of business leadership coaching are apparent, without the exorbitant expenses.
CXO leaders and executives who undertake leadership coaching not only start to make better decisions the first time around; they also empower their team and help their teammates maximize their potential.
In addition to ROI, leadership coaching provides many intangible benefits. While tangible factors such as increased productivity, higher levels of overall employee performance, reduced costs, growth in revenue and sales have been covered, here are some of the intangible benefits that you can get:
Studies have shown that most of us don't introspect very well and having a coach definitely helps you look at things you have overlooked before.
High self-introspection is correlated with organizing better and inspiring people to follow your goals and vision. A good coach will gather information, understand you better, and share feedback before, during, and after the session. The entire leadership coaching journey captures your developmental areas, strengths, and weaknesses.
The executive coach will also share their perceptions of you based on your interactions with your team members.
This exercise will enable you to question your assumptions about yourself, understand your strengths and developmental areas, and view yourself from an outside perspective.
Empowering their team
Being emotionally intelligent requires a focus on understanding your viewpoint and empathizing with the views of others.
A successful leader is rated by his ability to empathize with different team members, understand their issues, and help maximize their potential by removing their performance barriers.
A significant part of leadership coaching will focus on your ability to interact with different team members and handle team dynamics effectively.
Being self-aware and having a high EQ means you can now support your team better and solve their challenges by removing their performance barriers, and it is not surprising that successful leaders have high EQ scores.
Improve diversity and incorporate the views of others
By only working with certain kinds of folks, that means people like themselves — in background, race, gender, beliefs, or work style, leaders can unknowingly self-sabotage and limit their effectiveness to maximize their company’s potential.
Firms that scored in the top quartile in gender diversity outperformed the bottom quartile by at least 25% in profitability; they also helped build happier teams that put their best foot forward.
This is why a good coach can help you build relationships and remove aspersions about people who aren't like you.
For CXOs looking to be a better leaders, coaches offer you tools to support you in understanding and creating solid and vital working relationships with a broader variety of people.
Handle stress and improve your well-being
Stress dampens productivity and causes several adverse effects. An executive coach focusing on wellness will work closely with you to manage your stress with a healthy lifestyle and mindset.
High-performing leaders such as the late Steve Jobs, Ray Dalio, Oprah Winfrey, Marc Benioff, Jeff Weiner, and Arianna Huffington attribute their success to meditation. Not only do good wellness coaches help you build greater self-awareness and handle challenges better, but they will also help executives make conscious and more thoughtful decisions instead of running their day on autopilot.
The right coach can be a powerful support system in your journey to becoming a better leader and can be the perfect third party who has a vested interest in your success.
An executive coach focused on wellness will improve your self-awareness and emotional intelligence to maintain harmony and avoid burnout.
Choosing the right coach
Before choosing the coach, several things ought to be considered. The executive should not only be ready and willing to be coached, they should also be allowed to work with the right coach by the management.
And studies have shown that willingness and good chemistry were by far the most frequently cited ingredients of a successful leadership coaching relationship.
While working with a coach can be a new scary experience, like any other endeavor, if you are willing to go through introspection and have the willingness to change, it is totally worth it at the end of the day, and leadership coaching can be a powerful catalyst to becoming the person you most want to be.
Check out what we do at Peakperformer.
At Peakperformer, we provide personalized leadership coaching and help executives resolve their day-to-day challenges.
Our digital leadership coaching platform is used by tech behemoths such as CRED, Groww, MPL, Bizongo, and others.
We help you transform employees into global leaders in an effective, scalable, and measurable way.
If you have read this far, do check us out!