Every so often, a stat stops you in your tracks. Executive coaching, according to multiple studies (See my sources below), delivers a return on investment between 5 and 7 times the original cost. If coaching is such a high-ROI investment, why aren’t more companies rushing to offer it to their executives?
Let’s unpack this curious contradiction.
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The ROI Is Real But Not Always Obvious
The return from coaching is often qualitative before it becomes quantitative. Leaders grow in confidence, communication improves, teams gel, and decisions get sharper. These eventually hit the bottom line, but not in a way that’s easy to plug into a quarterly report.
In other words, coaching’s benefits tend to show up as:
- Improved decision-making
- Higher emotional intelligence
- Greater team retention and engagement
- Reduced internal friction
- Increased innovation and speed
But try telling that to a CFO who wants clean metrics by Friday or a CEO who made it without needing a coach.
Coaching Is Still Misunderstood
Many organizations still think coaching is:
- A last-ditch effort to fix struggling performers
- A luxury for elite, top-tier execs
- A fuzzy, feel-good “soft skill” practice
Modern coaching is neither remedial nor indulgent. It’s strategic. Think of it less like therapy, more like a Formula 1 pit crew for leadership. The top athletes in the world have coaches—not because they’re failing, but because they’re winning and want to stay that way.
Budgeting and Short-Termism Get in the Way
In too many companies, leadership development lives in a budgeting no-man’s-land:
- It doesn’t produce immediate cost savings.
- It doesn’t slot neatly under a department.
- It’s hard to “own” in a quarterly KPI dashboard.
As a result, coaching often gets cut while less impactful—but more measurable—initiatives stay funded. It’s a classic case of knowing the cost of everything and the value of nothing – something my music teacher in high school taught me.
4. Measurement Still Has Growing Pains
Ironically, even though coaching is about performance, measuring its impact remains elusive. Did the exec’s turnaround come from coaching, or from market conditions? Did team engagement improve because of coaching, or because of a new product launch?
The truth? It’s almost always a combination. But when attribution is murky, decision-makers default to safer, more traditional investments.
5. Some Executives Still Resist It
Let’s not ignore the elephant in the boardroom: pride. Some executives (especially in more hierarchical cultures) still equate coaching with weakness. To them, asking for a coach feels like admitting you don’t have it all figured out. (You don’t)
This mindset is fading—but not fast enough. In some cases, the very leaders who need coaching the most are the least likely to request it.
So, What’s the Future?
Here’s the good news: the tide is turning.
- Younger leaders expect coaching as part of their development, not a perk.
- High-growth companies and venture-backed startups increasingly see coaching as a multiplier, not a cost.
- Tech platforms are making coaching more scalable, data-informed, and accessible than ever before.
We’re on the verge of coaching becoming as standard as having a CRM or a health plan – in part because there is a greater reliance on leadership now with the advent of AI increasing our velocity. And when that happens, companies that embraced it early won’t just have better leaders—they’ll have a serious strategic edge.
Not sure how to introduce coaching to your organization?
That would be an exceptional reason to reach out and have a chat! The truth is MOST organizations are in the same boat.
Now, The Sources:
1. ICF & PwC Global Coaching Study (2020)
- Headline stat: Median ROI for companies using coaching was 7x, with over a quarter reporting 10–49x.
- Published by: International Coaching Federation (ICF) and PricewaterhouseCoopers
- Link: ICF Global Coaching Study – Executive Summary (PDF)
2. Manchester Inc. Study (2001)
- Headline stat: Coaching delivered a 529% ROI, and including indirect benefits, a 788% ROI.
- Scope: Surveyed 100 executives from Fortune 1000 companies
- Link (summary): Forbes Article Referencing the Study
3. MetrixGlobal LLC Study on Fortune 500 Firm
- Headline stat: Found a 529% ROI on executive coaching.
- Details: Included both financial and non-financial benefits such as retention and productivity.
- Link (summary): ICF Case Study PDF
4. Harvard Business Review – “What Can Coaches Do for You?” (2009)
- Key insight: While not quantifying ROI, it discusses strategic coaching outcomes and business benefits as seen by executives.
- Link: HBR Article
5. CIPD Research (UK) – Coaching Climate Survey (2021)
- Findings: Reinforced coaching as a critical component in leadership development and organizational performance.
- Link: CIPD Coaching Climate Report
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