Measuring the effectiveness of leadership development approaches like leadership coaching is a question and challenge HR and L&D leaders are often faced with. Organisations are keen to understand whether investing in senior leadership coaching programmes, or leadership coaching for their middle or first-time managers’ development is worth it.
And, if so, then by how much, please?
And how do we go about it?
Contents
Leadership Coaching Context
The interesting thing about leadership coaching is that its impacts are multi-layered, producing both subjective and objective outcomes. Which can be both immediate (transactional) as well as longer-term, slower burns (transformational). And blindingly obvious, as well as more subtle. Plus, there’s a whole bunch of external factors which can influence the same outcomes.
As Nancy Maher our Kinkajou Founder found in her research with coaches, it can be difficult to determine the cause and effect of coaching as it’s embedded in a complex system with multiple active components. Plus, definitions of success vary not only between, but within organisations sometimes differing between sponsors and coachees. All of this can make some leadership coaching programmes tricky to measure.
However, here at Kinkajou, we have taken on this challenge and focused our efforts on effectively evaluating the impact of our leadership coaching programmes. Our approach is to partner with organisations and focus on measuring impact. Therefore, from our extensive experience, scientific research and diverse backgrounds, we have created a comprehensive package of various techniques, which we detail some more below.
There are various ways to measure the effectiveness of leadership coaching programmes. For example, Harvard Business Review reports on a study which highlighted that 85% of the time executive coaching is assessed on post-hoc performance reviews, wellbeing and engagement surveys, learning effectiveness, perceived return on investment (ROI) and 360 assessments.
At Kinkajou, we see the benefit in measuring before, during and after a leadership coaching programme. That way there are baselines to measure from, we have a good view of progress as we're in motion and robust knowledge of impact on completion. Using a before, during and after framework, this article explores the key ways to assess the effectiveness of leadership coaching.
Leadership Coaching Pre-programme Preparation
In order to measure the effectiveness of leadership coaching programmes, there's a bit of pre-work that needs doing before starting the journey.
It's important to establish both;
a baseline - a view of who the individual is and where they're at
as well as
a plan of their trajectory - where they want to go and how we're going to get there.
While some of this includes organising and engaging in the logistics, identifying goals and completing a range of assessments provides a solid view of where individuals are starting from.
Goal Identification and Achievement
One of the most straightforward ways to measure coaching effectiveness is by identifying goals at the outset and evaluating their achievement. At the start of a coaching programme, leaders typically set specific, measurable objectives they aim to accomplish. For example, these goals might include improving leadership skills, evolving authentic leadership styles, empowering their teams, or building positive relationships.
As part of preparation for Kinkajou's EMPOWER leadership group coaching, we invite participants to complete a check-in survey. This helps leaders reflect, self-assess on a range of leadership skills, and identify any initial goals they're looking to accomplish.
Tracking progress towards these goals provides a tangible measure of coaching effectiveness. And, depending on the goal, can be measured both objectively and subjectively. Organisations can use regular pulse surveys, as we discuss in detail below, to gauge improvement and progress against particular goals.
Surveys and Psychometric Assessments
360-Degree Feedback
A powerful tool for leaders to gain insights into how others perceive them is 360-degree feedback. This method involves collecting input from a leader's colleagues, managers, reports, clients, friends, and family before the coaching programme.
Kinkajou uses the third-party tool - AtMyBest 360 - which stands apart from traditional 360s. It captures stories from invited others about when they see leaders at their best, rather than endless questionnaires and ratings. It focuses only on strengths and is more personally meaningful than bar charts and data tables. Feedback also isn't anonymous. This provides opportunities for leaders to build trust, strengthen relationships and develop skills in receiving feedback. We suggest leaders explore this feedback with their managers before beginning of their coaching programme.
These kinds of assessments also enable organisations to identify changes in leadership behaviours and effectiveness as perceived by those working closely with the coached leader. While also providing opportunities to develop giving and receiving feedback skills. For example, a leader might receive feedback on their ability to build trusting relationships or foster innovation within their team. Improvements in these areas, as reported by colleagues post coaching, can indicate the positive impact of coaching.
Emotional Intelligence Assessments
In order to effectively know where you're going, it's important to know who you are. Psychometric-style assessments conducted at the beginning of a leadership coaching programme enable leaders to start from a platform of self-insight. These kinds of assessments raise self-awareness, enabling greater understanding of mindsets, strengths and behavioural style.
At Kinkajou, we focus on emotional intelligence (EQ) and use the Everything DiSC Agile EQ Report. This provides a comprehensive personalised profile helping leaders discover their natural EQ mindsets and DiSC styles. It also offers strategies and insights to enhance these and become more agile in responding to challenges or opportunities. This can be used as a reflective tool before the programme to help identify goals and during the programme to drive actions in support of the goals.
Coaching Programme Feedback
Leadership Coaching Pulse Surveys
As well as enabling leaders to measure their goal progress, pulse surveys can monitor and promote continuous improvement through the coaching programme. Conducting regular surveys with participants enables evaluation of their experience as the programme is in motion, rather than waiting until the end. Kinkajou conducts monthly anonymous feedback surveys throughout EMPOWER, our leadership group coaching programme. They promote self-reflection, provide insight into goal progress and programme experience and invite feedback on what's going well and what could be improved. This final element is particularly valuable, as it allows us to design and deliver the most impactful coachee experience. As a boutique coaching company, Kinkajou prides itself on agility and continuous improvement.
Leadership Coaching Sponsor Check-ins
Regular check-ins with sponsors of the leadership coaching programme is another effective measurement technique. They dovetail nicely with the pulse surveys as key feedback themes can be fed into these meetings to inform evidence-based decision making. This supports the continuous improvement and agile approach Kinkajou align with. The check-ins also provide insight into perceived business impacts as the programme is progressing. This is something that differentiates Kinkajou as a boutique coaching company. We are able to tailor programmes to organisational requirements and pivot focus when required. Our sponsor check-ins also allow us to offering a personalised approach, identifying and providing a real understanding of how it's really going.
End of Leadership Coaching Programme Assessments
The end of a coaching engagement presents another opportunity to assess the effectiveness of the coaching programme. This checkpoint can produce further rich data around goal(s) achieved, learnings, development and overall experience of the programme. Kinkajou's EMPOWER leadership coaching programme allots time at the close of the programme to celebrate.
Post-Programme Impacts
Leadership Coaching Impact Assessments
The impacts of a leadership coaching programme can continue to evolve and manifest long after its closure. In fact, transformational changes may take time to percolate. Conducting an impact assessment after the coaching programme has closed provides a valuable way to measure the programme's effectiveness.
Kinkajou conducts an impact assessment as part of our leadership coaching programmes, six months post-programme. It assesses areas at both an individual and organisational level including;
behavioural change
the value of the coaching to the organisation and its clients
impact on relationships
how the coaching has been sustained
whether desired outcomes were achieved
As well as measure effectiveness of a leadership coaching programme, this can generate data-driven, actionable insights and ideas for organisations to make improvements for themselves going forward.
Leadership Coaching Behavioural Changes
In addition to formal assessments, observable changes in a leader's behaviour can be a strong indicator of coaching effectiveness. Colleagues and team members may notice improvements in areas such as:
Increased confidence
Empowering others
Communication
Improved client relationships
Relationship building
Empathy and emotional intelligence
Self-Reported Outcomes of Leadership Coaching
Self-reported outcomes from coached leaders can provide valuable insights into the perceived effectiveness of coaching.
Leaders can assess their own growth in areas such as:
Leadership self-awareness
Confidence in decision-making
Ability to manage uncertainty
Ability to thrive and not just survive
Client relationships
These self-assessments, when combined with other measures, can paint a more comprehensive picture of coaching impact and effectiveness.
Performance Metrics of Leadership Coaching
Linking coaching outcomes to concrete business metrics can provide an objective measure of effectiveness. Depending on the leader's role and coaching goals, in addition to impact assessments, relevant key performance indicators (KPIs) might include:
Employee engagement
Employee retention rates
Customer satisfaction scores
Sales figures
However, as Nancy Maher's research shows, it can be challenging to determine the cause and effect of coaching as the leader exists in a complex organisational system. All of this can make leadership coaching's impact difficult to measure. So, while you may choose to utilise these metrics, you cannot always correlate direct cause and effect as many interactions and forces are at play that are not in the leader's control.
Return on Investment (ROI) of Leadership Coaching
Such metrics can also be beneficial in understanding ROI. While calculating the exact ROI of coaching can be challenging, some organisations do attempt to quantify the financial impact. This typically involves estimating the monetary value of improvements in areas like productivity, employee engagement, or revenue growth that can be attributed to the leadership coaching programme.
For instance, according to the ICF, a global study by PWC and the Association Resource Centre found that companies investing in coaching reported an average return of 7 times the initial investment.
Although it can be tricky, according to Forbes, it’s important to establish your starting point. This includes a setting a baseline as well as having a clear idea about what you’re looking to impact and change. Having these elements will enable a pre-post measurement approach.
Forbes also suggests a way to calculate ROI both quantitatively and qualitatively. Quantitatively, they suggest four steps in their worked example:
Pick a lever (aka a KPI or business metric)
For example, they suggest metrics like increased revenue, productivity, customer satisfaction, retention and so on.
Using internal and historical data, estimate the initial impact
Understand how much the metric is worth or costs the organisation. And based on previous experience of the organisation or even the leadership coach, estimate how much ‘benefit’ may be realised. Then do the math!
Adjust the impact
Consider and estimate what percentage the coaching may contribute to the outcome. The coach’s previous experience or track record may be considered here, along with expected employee effort or challenge of the goal.
Calculate the ROI
Finally, calculate the total cost of the leadership coaching programme and minus this from the adjusted values totalled from the above.
It's important to note that calculations like these often involve some degree of estimation and should be interpreted cautiously.
Ripple Effects of Leadership Coaching
The impact of leadership coaching often extends beyond the individual being coached. Improvements in leadership skills can lead to increased employee engagement and team performance.
Metrics to consider could be:
Employee satisfaction scores
Team collaboration effectiveness
Innovation and idea generation within the team
Reduction in workplace conflicts
By monitoring these team-level indicators, organisations can assess the broader impact of leadership coaching.
Long-Term Career Progression
The effects of coaching may continue to manifest long after the programme has ended. Tracking the career progression of coached leaders over time can provide insights into the long-term effectiveness of coaching investments. This might include monitoring:
Promotions and career advancements
Expanded responsibilities
Leadership roles in key initiatives
Mentoring and developing other leaders
Common Challenges of Leadership Coaching
There can be a variety of challenges that inherently come with measuring the impact of leadership coaching programmes.
Some of the most common challenges are:
Defining Clear Metrics. One of the primary challenges is establishing clear, measurable metrics for success. Leadership coaching often creates intangible outcomes that can be difficult to quantify. However, these can be overcome by identifying a clear starting point, measuring progress and using impact assessments alongside key business metrics.
Time Constraints. The impact of leadership coaching may take time to manifest, making it difficult to measure keenly anticipated results. Kinkajou's suite of assessment tools can help with this.
Isolating Coaching Impact. It can be tricky to attribute changes in leadership performance solely to coaching, as other factors may also influence outcomes.
Data Collection and Analysis. Gathering comprehensive and reliable data to evaluate coaching effectiveness can be complex. And also requires accurate analysis and interpretation.
Resistance to Evaluation. Some leaders may be reluctant to participate in thorough evaluations, fearing potential negative consequences. Fostering a continuous improvement culture can help with this and the 360-feedback is a good way to initiate and develop it.
Sustainability of Change. Assessing whether coaching-induced changes are sustained over time can present another challenge. Considering follow-up evaluations and longer-term check-ins, like Kinkajou's impact assessment could help manage this.
Consequences of NOT Investing in Leadership Coaching
This is all very interesting and can lead to some helpful measurements of the effectiveness of leadership coaching programmes. But have you considered the consequences if you decide NOT to invest in coaching for your organisation’s senior leaders, first-time managers or middle-managers? What then?
Well, all the good stuff like creating opportunities for employees to thrive and leadership skill-building, enabling diversity, equity and inclusion (DEI), and all the other benefits demonstrated in these coaching statistics may be missed.
Conclusion
Measuring the effectiveness of leadership coaching programmes requires a multi-faceted approach. Although it can be challenging, by combining quantitative metrics with qualitative assessments, organisations can gain a comprehensive understanding of the impact of their coaching initiatives.
Part of the challenge is being aware of the varying definitions of ‘success’, the impact of external factors and having realistic expectations about potential timelines. It's also important to establish clear baseline measurements before coaching begins and to continue monitoring progress over time. While some benefits of coaching may be immediately apparent, others may take longer to manifest. Therefore, a long-term perspective is crucial when evaluating coaching effectiveness.
By consistently measuring and analysing the outcomes of leadership coaching, organisations can refine their programmes, demonstrate ROI, and ensure they're making the most of their investment in leadership development.