Who is being Coached?

Senior level and C-Suite executives are most often coached according to a 2007 study by DBM and the Human Capital Institute.  Respondents were in roles ranging from Human Resource (HR) management to Training and Development and represented a range of organizations.

The study found that 78% of respondents rated executive coaching either "good" or "excellent" in terms of its effectiveness as a leadership development tool.  The executive's boss frequently asks for the coaching (39%) and the HR business partner is second most likely to request coaching for an executive (31%).  Executives make the request for their own coaching 16% of the time.  If the organization has a history of using executive coaching, and they value it as a leadership tool, executives are more likely to request it.

The study found that:

• 31% use independent practitioners
• 47% contract through external firms
• 22% use their internal pool of coaches

Results showed that the top three qualifications of an external coach to be:

• Coaching methodology
• Senior level business experience
• Knowledge of industry and industry experience

The three top factors in making a successful match between coach a coachee are:

1. Initial chemistry between the coach and coachee
2. Business experience of the coach
3. Functional experience of the coach

The study also examined the length of coaching assignments.  Though it varies, most agree that behavioral changes take time.  The most common duration of an assignment is four to six months (40% of respondents), with some lasting over a year.

Coaching fees are most commonly charged as a flat rate.  For a six-month engagement, the fee range is between $15,000 to $40,000 for C-Suite executives; $10,000 to $30,000 for senior-level executives; and $5,000 to $20,000 for mid-level executives.  Coaching fees are typically charged to the coachee's department (49%) or to the HR or Training and Development budgets (36%).

Coaching has the greatest impact in these three situations:

• Helping a team work more effectively
• Taking someone from being a good performer to a great one
• Developing a high potential executive

When evaluating coaching effectiveness and ROI, the study revealed the top three measures of a successful coaching assignment to be:

• Agreed-upon measures achieved
• The assessment from the coach
• Other people's observations of the changes

Perhaps, the most significant findings from the research study are the following:

1. The credibility and acceptance of coaching is high: 78% rate it good or excellent
2. The ROI of coaching is estimated by survey respondents to be as high as 500%
3. Organizations are planning to increase the investment in coaching, particularly for their most capable and promising people