Does Coaching Work?

Mary-Louise Angoujard and Dr Nigel Paine

By 2023, the global market for the executive coaching industry had grown from an estimated $2 billion to over $9.3 billion, reflecting the increasing demand for coaching services worldwide. It is projected to rise to $27 billion by 2032 according to the Coaching Industry Report 2025.

This is a significant investment by anyone’s standards.  But we should ask the obvious question: does coaching deliver real value? If it does, what impact can it have on the organization and the individual being coached?

According to Jerome Abarbanel, VP of Executive Resources at Citibank, "Even modest improvements can justify hiring a coach. An investment of around $30,000 in an executive responsible for tens of millions of dollars is a rounding error."

How can you determine if coaching will work for your organization? Are there additional benefits to using coaching as a complement to other forms of development? "The ROI of Executive Coaching: A Comprehensive Guide" published by Forbes in 2023, delves into various research studies demonstrating the financial benefits of executive coaching. It emphasizes that coaching leads to improved leadership skills, decision-making, and overall business performance, contributing positively to an organization's bottom line (Espeland 2023). A recent article in The Journal of Applied Behavioral Science shows that there are multiple benefits in coaching, from behaviour change to a greater sense of well-being. (Boyatzis et al, 2022)

What is Coaching? The term "coach" first appeared in the 1840s at UK Universities. It was a slang term referring to a private tutor who "carried" a student through an exam. Over time, coaching evolved as a term in its own right, to mean a process that transports people from where they are to where they want to be. In business, coaching is used in various fields, including leadership, communication, and personal development.

Coaches use a range of communication skills—such as targeted restatements, listening, and questioning—to help clients shift their perspectives and discover new approaches to achieving their goals. A coach’s ultimate aim is to unlock hidden potential and foster sustainable growth.

The Impact of Coaching

Recent studies reinforce the benefits of coaching. A 2022 report from the International Coaching Federation (ICF) found that 80% of people who received coaching reported improved self-confidence, and over 70% saw improvements in work performance, relationships, and effective communication skills.

 There is a qualification, however, coaching is most effective when the individual is ready and willing to develop. Those who are open to new perspectives and eager to learn are more likely to benefit from coaching. As many coaches can attest, even the most resistant clients often improve once their initial resistance is overcome.

A Real-World Example: consider the case of a senior executive who, despite technical expertise, struggled with connecting with his audience and presenting his ideas confidently. After engaging in executive coaching, he reported, "The coaching I did changed my life—it has been transformational for my confidence and impact as a leader. I still apply what I learned on a regular basis."

This experience highlights a critical point: coaching is not about imparting technical skills but rather about enhancing leadership, confidence, communication, and the ability to engage effectively with stakeholders.

jan Marchant former MD of Home and Clothing for Tesco, is a senior leader in one of the UK’s largest and most successful businesses. She first engaged a coach four years ago during a challenging leadership transition; since then, she has leveraged her talents, drive, and leadership impact for even greater contributions and success.

Jan’s view: “I met my coach when I stepped up to CEO, and my time with her proved to be transformative.  We worked on impact and stakeholder management, and she coached me to bring the talent I have to the fore. I loved the way she taught me a new communication style and influencing technique whilst allowing me to be authentically me.

True coaching is personalising techniques and tools, and everything I have learnt stays with me and continues to help me be at my best.”

The Role of AI in Coaching

As generative artificial intelligence continues to advance, its role in executive coaching has become a topic of interest. AI-driven coaching tools can analyze vast amounts of data to provide insights into leadership approaches, communication patterns, and performance metrics. These tools can offer personalized feedback and suggest areas for improvement, making them valuable for routine and data-driven aspects of coaching as well as widening the net of people given access to coaching. And your AI coach offers scalable support.

However, while AI can enhance the coaching process, it is not a binary decision “AI or human”?  AI offers instant analysis and commentary on performance, but it is not yet a replacement for the nuanced, empathetic guidance provided by seasoned human coaches. AI still lacks the ability to interpret complex human emotions, cultural contexts, and the subtleties of interpersonal dynamics, which are crucial in effective coaching relationships. Executives still benefit immensely from the human aspects of one-to-one coaching with experienced professionals who can provide tailored advice, challenge assumptions, and foster deep personal growth.

Trend Insight: A 2023 survey by the Human Capital Institute found that while 67% of organizations are exploring AI-driven coaching tools, 92% of executives who have used both AI tools and human coaches still prefer the personalized approach of a human coach. But in AI-terms 2023 is the dark ages. There is continued relevance for traditional coaching methods, even as AI technology advances. However, a study published in Frontiers in Psychology concluded that clients are willing to and appreciate building coaching partnerships with AI, which has both research and practical implications.

Coaching in Practice: What Are the Results?

If you speak with senior executives today, you'll find that coaching is almost ubiquitous. The vast majority have either experienced coaching or are currently being coached, and very few dismiss it as a waste of time. Those who reject coaching often have an inflated view of their abilities or believe that external help cannot match their ideas and actions.

A 2020 study by Harvard Business Review found that executives highly value "honest, realistic, challenging feedback." Good listening, clear action points, and straightforward feedback, along with seeing a model of effectiveness, are among the key benefits of coaching. Trust, credibility, and challenge are the factors most often cited as critical to coaching success.

But is seeking guaranteed outcomes the right approach? As Fillery-Travis and Lane argue in their book Coaching (2020), before asking whether coaching works, we must first consider how it is being used, whether it follows a coherent framework, and how its effectiveness is perceived or measured within that framework.

The Purpose of Coaching

The purpose of coaching varies widely depending on the objectives set by the sponsoring organization or the individual being coached. Common goals include:

• Developing more confidence and clarity to achieve objectives.

• Improving presentation skills and becoming more engaging.

• Enhancing communication to convey knowledge with authority.

• Building relationships and influencing stakeholders effectively.

These goals are typically less about technical competence and more about leadership presence, communication, and the ability to engage the relevant audiences in the right way.

Another senior executive shared, "It has been good to have this kind of coaching at this stage in my career because it brings out what is missing. It is useful to have a third party articulate what others have tried to tell me in the past, but which was easily pushed to the side. The result has been that it made the soft skills quite tangible, and I now have a useful set of tools in addition to my technical capability and knowledge—all of which are required to be a good leader."

Therese Procter ChCCIPD FRSA (LION) , Chief People Officer, Orgshaker, offers a comprehensive list of coaching benefits:

“I have seen coaching make a huge difference for talented individuals throughout my career.  In my experience, coaching can deliver real value in numerous ways, such as

1.     Personal Growth: Coaching often requires continuous self-reflection and learning, leading to a deeper understanding of oneself, including strengths, areas for improvement, and values.

2.     Skill Development: It challenges already talented individuals to enhance essential skills such as active listening, empathy, communication, and the ability to ask powerful questions. These skills not only enhance their effectiveness in their role, but also positively influences other areas of life.

3.     Perspective Shifts: Coaching widens perspectives on problem-solving and goal-setting, because it enables appreciation of diverse viewpoints and opens new ways of thinking.

4.     Impact on Others: More self-aware, mindful leaders gain great fulfilment from empowering others and helping them achieve their goals.

5.     Building Relationships: Coaching helps leaders build deep, trusting relationships with others, which is both rewarding and enriching.

6.     Adaptability and Resilience: Coaching enables greater adaptability to different personalities and situations, increasing resilience in the face of challenges and setbacks.

7.     Increased Self-Awareness: Coaching develops greater mindfulness of personal biases, assumptions, and emotional triggers which allows more intentional and effective interactions with others.

8.     Continual Learning: Coaching encourages lifelong learning and seeking new knowledge and methodologies to develop oneself, and enhance coaching of others.

Strategies for Successful Coaching Engagements

Strategies to get the most benefit from investment in coaching for Executives and High Potential Future Leaders:

·       Clarify Objectives: Clearly define the purpose of coaching and the expected outcomes, linking it to both organisational and individual goals.  It highlights the importance of the coaching for the individual, and professional coaches welcome this clarity of direction.

·       Executive Buy-In: Ensure that the executive receiving coaching is genuinely committed to the process and open to self-reflection and change.

·       Select the Right Coach: Choose a coach with a track record in relevant areas, who matches the executive’s personality and needs. Compatibility and expertise are key to success.

·       Integrate Coaching with Development Plans: Embed coaching within broader personal development plans to ensure it complements other growth initiatives, making it part of a continuous improvement culture.

·       Encourage Honest Feedback Loops: Create a safe environment for feedback between the coach, executive, and organisation.

·       Prioritise having the Feedback Meetings:  in many companies, this never or seldom happens anymore – even at the end of the coaching process - although it is a crucial part of the process of accountability as well as recognition of progress and celebrating success.

·       Set a Cadence for Progress Reviews: Regularly assess progress to reinforce commitment and refine goals as needed. This keeps the coaching relevant and impactful.

·       Champion Coaching at the Top: Position coaching as a valued tool for leadership and growth throughout the organisation, promoting a positive culture around development.

·       Support a Focus on Long-Term Impact: Encourage a mindset focused on sustainable development rather than quick wins. This helps create lasting behavioural changes that benefit both the executive and organization.

·       Celebrate Wins and Improvements: Recognise achievements along the way to build momentum and reinforce the value of coaching, both for the individual and the organization.

Conclusion: Does Coaching Work?

The answer from reviewing the evidence is a resounding yes—when the right kind of coaching is provided, and the individual fully engages with the process. Research and real-world examples consistently show that coaching can lead to significant improvements in leadership skills, communication, and overall effectiveness, making the undertaking a valuable investment.

In the words of John Russell, Managing Director of Harley-Davidson Europe Ltd., "I never cease to be amazed at the power of the coaching process to draw out the skills or talent that was previously hidden within an individual and which invariably finds a way to solve a problem previously thought unsolvable." As Gen AI continues to evolve, it will undoubtedly play a larger and larger role in executive development. However, the irreplaceable value of human connection, empathy, and the personalized guidance that seasoned coaches provide will take some beating.  But watch this space! One-to-one coaching remains a vital component of executive success human and perhaps bot.

Do you agree with the scope and implications of the article?

Have you examples of the benefits of coaching what have you noticed?

Have we missed something?

Where is it going in the age of Gen AI

1.    The Grand Challenge for Research on the Future of Coaching

Richard E. Boyatzis, Alicia Hullinger, Sharon F. Ehasz, Janet Harvey, Silvia Tassarotti, Anna Gallotti, and Frances Penafort

The Journal of Applied Behavioral Science 2022 58:2, 202-222

2.The ROI Of Executive Coaching: A Comprehensive Guide Melanie Espeland Forbes 2023

 3. Artificial Intelligence vs. Human Coaches: Examining the Development of Working Alliance in a Single Session

Frontiers in Psychology Volume 15 - 2024 |

3.nbsp;nbsp;nbsp;nbsp;Artificial Intelligence vs. Human Coaches: Examining the Development of Working Alliance in a Single Session

Frontiers in Psychology Volume 15 - 2024 |

4.    Amber  Barger Doctoral Student Cornell University Teachers’ College