Written by Tim Wat.
For more information or to contact Tim, email him at Tim.Wat@GRITTBusinessCoaching.com.
Investors have great stories. Some of us can proudly tell you the best call we ever made; taking that tip and buying early, or choosing not to get out and ride out the storm. For others, it was the sleepless nights that brought us to start our first business, or buy our first home. Every investor loves the satisfaction of reaping the fruits of a wise investment.
When it comes to a good investment for the sake of your company, let us offer some observations. According to the Brandon Hall Group’s research State of Leadership Development, organizations overwhelmingly recognize the need for skilled and effective leaders to succeed in today’s marketplace.
But half of these organizations said their leaders are not skilled to effectively lead their organizations today, and only 18% say their leaders are “very effective” at meeting business goals. Even more startling, 71% said their leaders are not ready to lead their organizations into the future.
This is why leadership training and development spending has exploded across all levels. Some estimates put spending as high as $50 billion annually. But not all training is equally effective, and the ROI on leadership training can be frustratingly elusive for many organizations.
Within that context, consider the impact of Executive Coaching.
What does Business Coaching accomplish?
Executive coaching helps you to grow as a leader. Here are two ways:
1. See more clearly
Research shows that leadership self-awareness is highly correlated with durable, positive financial performance – and that many of us do not see ourselves very clearly. An effective executive coach will gather input into how those around you see you and help you transform this information into personal, practical growth strategies.
In addition, many leaders run into challenges because of their inaccurate assessments of those around them. As executive coach Erika Andersson puts it, “They may lose good employees because they don’t recognize and support their capabilities, or keep poor performers too long because they think they’re better than they are.” An effective coach will help you recognize some of those inaccuracies, as well as suggest tools and methods to improve the clarity of your vision – both of others and yourself.
2. Communicate more effectively
Leaders have less time than ever, and more pressure to accomplish things faster than ever. Everything you do as a leader requires effective communication. Your wisest strategic choice, your best execution initiative, your most clever insight into your market – each must be implemented by your team, and this requires your ability to effectively communicate your instructions, reasoning, and conclusions to others.
Effective communicators reap the dividends tenfold through increased clarity, more motivated employees, engaged staff enlisted in the leader’s vision, and more effective delegation. Consider the title of Marshall Goldsmith’s book, What Got You Here Won’t Get You There. We all have a set of capabilities and resources that may serve us well as mid-level employees. But as the research cited above suggests, these skills may need to be expanded, grown and matured for you to lead your organization effectively into the future.
An effective executive coach will make you a more effective communicator, teaching you perspectives, methods, and tools and leverage your existing strengths to evolve into the most effective, best version of yourself as a leader.
Is it any wonder that the ROI on Business Coaching is as promising as it is? Fortune Magazine notes, “In a recent study, training alone improved leadership skills by 22%. When combined with Executive Coaching, improvement jumps to 77%.” Along similar lines, Forbes’ report on ROI for Executive Coaching observed, “The mean Return on Investment in coaching was 7 times the initial investment, and over a quarter of coaching clients reported a stunning ROI of 10 – 49 times the cost.”
Every investor loves the satisfaction of reaping the fruits of a wise investment. For your company and your career, executive or business coaching may be the wisest one yet.