Coaching ROI: Why Business Coaching is Worth It

From athletes to actors, the professionals in any field are the ones who know best the impact that an experienced Coach can bring. The world of business is no different; the entrepreneurs and business leaders on the winning edge often have a secret weapon in their corner: a Business Coach who gets them better results, faster than the competition.

Business coaches are brought in to accelerate revenue growth, to enhance management performance, and to improve the overall performance of your company. While the decision to onboard a Business Coach brings with it a number of invaluable benefits, there are a few misconceptions that exist about coaching. Before examining coaching ROI, let’s take a moment to address these misconceptions.

Misconception 1: The cost

The investment is often the primary issue, but it is vital to distinguish ‘spending’ from ‘investing’. When you spend money, you receive a finite product or service and no more. Smart investments, on the other hand, bring back the initial investment plus extra. With the right Coach, Business Coaching is an unbeatable investment: in your Management team, in your business, and in yourself. And, when your leaders are more empowered, focused and prepared, your teams will naturally experience increased productivity and motivation levels. And, as some of the statistics below will demonstrate, the ROI can be MASSIVE.

Misconception 2: The budget

Ok, so the investment makes sense. But 2020 and 2021 weren’t easy, and many businesses have tightened their budgets as a reactionary measure. The fundamental difference between acting and reacting: the latter requiring little to no thought. Ensure you are managing your expenditure on the right things, not blindly slashing everything across the board. Your business still has to function effectively if you are to make up for the losses incurred.

Misconception 3: The impact

It’s reasonable to assume that the impact from a coaching intervention may be less than required, or take too long to show results. The fact remains: even in the depths or aftermath of a global pandemic, Business Leaders who are actively involved within a coaching programme will outperform their peers. Coached leaders and executives can adapt their businesses faster, lead their teams more effectively, and handle challenges more confidently.

Having said all that, not all coaches are equal. Before making the leap, you’d want to look at their statistics and data before deciding who your Business Coach should be. And to know what to look for, it’s important to understand the ROI that a reputable Business Coach can deliver.

Business Coaching ROI

A great Business Coach should bring results disproportionate to the effort exerted. Think of it as a lever - small effort on one side, massive movements on the other. While we can’t speak for all coaches, here are some of the results that Kaizen’s Coaching Clients have seen.

1. Revenue:

Businesses need to make money...and that is the first area we work on with clients. Kaizen’s Business Coaching clients saw an average of 41% increase in their revenue over the coaching period. This equates to over 2700% ROI on the coaching investment, and that’s from the smallest businesses we’ve worked with. In larger businesses, with revenues above AED 20M, the ROI is far higher.

2. Cost-Saving and Profitability

Revenue is vanity, Profit is Reality. Businesses increase their profits by either increasing revenues or decreasing costs, and at Kaizen, we work on both. Most clients will see significant costs saved within the first 6 months, and the Business Coaching investment usually pays itself off in multiples from this exercise alone. Clients that are already efficient with operational expenses still see significant improvements, as the areas of cost saving are both internal and external.

Kaizen’s Business Coaching clients also focus on costs outside the business, and have won favourable terms and rates from suppliers, which adds massively to the bottom-line. Our clients often manage to negotiate and win exclusive discounts from their suppliers which magnifies their margins, putting them far ahead of their competitors.

3. Geographical Growth

Reach impacts revenue, profitability, economies of scale, and - most importantly - valuations. Over 80% of Kaizen’s Business Coaching clients have seen their business grow geographically. This growth takes place in the form of opening new offices, establishing new partnerships or joint ventures, and in terms of the projects these businesses win.

While their competitors are scrambling to win low-margin jobs in saturated markets, Kaizen’s Business Coaching clients have won numerous lucrative, high-margin projects and clients in untapped markets.

4. Operational Effectiveness

A business is only as good as its execution. Winning business is of no benefit if the delivery of work either costs money, stretches the organisation too thin, or takes away from more profitable work. Among the main areas that Kaizen’s Business Coaching clients see ROI is in the streamlining of their operations; this impacts time, costs and profitability.

As an example: a project-based client saw their execution time drop over 40%, with an increase in quality and output - as measured by the client. Given that the biggest expense is time, this meant a huge boost in profits, as direct costs went down by almost half.

5. Valuations, Awards and Employer Branding

While more money is always good, recognition is also highly appreciated. Kaizen’s Business Coaching clients have won numerous awards in their industry, from local authorities such as the Chamber of Commerce, and are highly rated in terms of their Employer Branding. This has a direct impact on the quality of candidates that apply to work with them, allowing them the luxury of picking the best people who fit their culture. If and when our clients decide to raise funding, the results-backed valuations help clients attract even the most discerning investors, and command top-dollar. Over the last decade, Kaizen’s clients have raised hundreds of millions in investments and funding.

6. Leadership Effectiveness

Kaizen’s Leadership Coaching clients have achieved 100% of their leadership development goals, as measured in their respective 360 reviews. These goals are wide-ranging, but usually include the following:

• Increased productivity and more effective delegation
• Better time management
• Better communication between Managers and their teams
• Better conflict management
• Healthier team-working and working relationships
• Improved working relationships with direct reports and with immediate supervisors
• Successful retainment of executives who received Coaching

To Summarise:

Coaching works.

The massive impact of coaching is seen and felt throughout the organisation: from the improved financial position, to the streamlined operations, to the motivated and loyal team.
Having said that, coaching is not a “quick fix” - it takes time, sustained effort and commitment, and our Coaches at Kaizen are here to support and challenge you the whole way through.

Your investment into developing your senior staff through coaching will result in a tangible ROI, as discussed above. You can expect increased revenue, more effective leaders, improved operational effectiveness, cost-saving strategies, geographical growth, more cohesive team, industry-recognised branding, and perhaps even a few awards to boot.

Working with the right Coach is the best and quickest way to accelerate your business success. Select the Coach that is best for you and your business, set massive goals, commit to doing the work...and we’ll write your legacy together.

Ready to win? Click here to reach out, or call 800 COACH (26224) to get started.