Coaching for Profitability
Does coaching ultimately increase profits for the organization? Research on that question is tricky. There are many, many factors that determine whether a company makes a profit. Some are under the company’s control, and others are not. That said, research cited in Primal Leadership: Realizing the Power of Emotional Intelligence (Daniel Goleman, Richard Boyatzis, and Annie McKee) presents some compelling information that suggests that coaching can have a major impact on profit. The authors reported that an organization’s emotional climate determines 20 to 30% of its profitability, i.e., companies with emotionally unpleasant climates make less money than companies with emotionally positive climates. That’s huge, given that many factors which influence profitability are outside of a company’s control. Such factors include macro-economic conditions, the actions of competitors, supply chain issues, pandemics, and so forth. But company leaders can directly impact their organization’s climate. In fact, Goleman et al found that leadership…
