The American Management Association in conjunction with the Institute for Corporate Productivity, an HR industry researcher, conducted a major study on business coaching. For the study, the AMA and i4CP surveyed CEOs, HR managers, and other corporate executives at 1,030 United States and international companies across multiple industries. Approximately 41 percent of the participants had 1,000 or more employees and about 42 percent reported annual revenue of $500 million or more and the study concluded:
- Business coaching is more popular than ever, boosted by companies struggling to develop a new generation of leaders to replace retiring baby boomers.
- Of U.S. companies surveyed, 52 percent said they had business coaching programs in place and another 37 percent said they would be implementing coaching programs in the future.
- Companies use coaches to work with executives, high-potential employees, problem managers and expatriates headed to overseas assignments.
- Companies that use formal metrics to measure performance of coaching programs are most likely to report that those endeavors are successful.
Another factor motivating companies to use business coaches is that it works. According to the AMA survey, companies that use business coaching report performing well on such measures as revenue growth, market share, profitability and customer satisfaction. According to the survey, individuals who had received coaching were more likely to set work-related goals and believed subordinates trusted their leadership abilities.
The bottom line – executive coaching is all about making poor managers better, okay managers good, and good ones great.