Quantified value proposition of tech success coaching

This article covers quantified benefits of tech success coaching. Two specific use cases are summarized for this blog’s target audience of tech engineering, design, and product management leaders. Use case 1 estimates compensation benefits of tech success coaching for a User Research Director. Use case 2 estimates total net worth savings of tech success coaching for a Product Designer.  #techleadership, #techcareer, #leadershipcoaching, #executivecoaching, #careercoaching, #professionaldevelopment, #worklifebalance, #techindustry, #leadershipdevelopment, #personalgrowth

Leadership coaching is increasingly recognized to dramatically improve both work and personal well-being. Conservative estimates of just the quantitative financial Return On Investment (ROI) of leadership coaching include Anderson’s [3] results of 529% ROI and McGovern et al.’s [2] results of 570% ROI. Qualitative benefits of leadership coaching include research by Dagley [1], whose coachee leaders typically had positive experiences – reflected in statements such as ‘[leadership coaching] is considered expensive, but that doesn’t matter if it works’ [1].

This article details quantified benefits of tech success coaching for our primary target audience of engineering, design, and product management leaders. Table 1 summarizes typical benefits of tech success coaching. Figure 1 details a specific use case of the quantitative compensation improvements for a User Research Director based on typical coaching outcomes. Figure 2 details a specific use case of the quantitative total net worth savings of a Product Designer from a typical improvement of work-life balance and reduction in burnout likelihood. Total benefits would likely be even higher if fuzzier attributes were included such as better emotional well-being and indirect income improvements.

Table 1: Quantified benefits of tech success coaching

Topic & benefit examples	Success measure examples
Transition to a New Role or Organization	Accelerated Onboarding: Reduce time to productivity by [percentage, e.g., 25%] through effective onboarding strategies. Improved Job Satisfaction: Increase job satisfaction by [percentage, e.g., 20%] through a smoother transition and better role fit.
Resolve Conflicts with Work Colleagues	Reduce stress and anxiety by [percentage, e.g., 30%] through improved conflict resolution skills. Enhance team collaboration and productivity by [percentage, e.g., 15%].
Align Tech & Business Value of Your Products	Increase product adoption and user satisfaction by [percentage, e.g., 10%]. Improve product profitability by [percentage, e.g., 5%] through better alignment with business objectives.
Frame Sensitive Health, Family & Personal Constraints for Your Work	Improve work-life balance and reduce burnout by [percentage, e.g., 20%]. Increase job satisfaction and productivity by [percentage, e.g., 15%] through effective boundary setting and time management.
Define and Champion Your Professional Value	Increase confidence and self-awareness leading to improved negotiation skills by [percentage, e.g., 10-30%]. Secure a [percentage, e.g., 10-20%] salary increase for promotion within [timeframe, e.g., 12 months].

Figure 1:  Quantified value use case 1 – User Research Director compensation improvement

Figure 1 estimates a financial Return On Investment (ROI) outcome for a User Research Director’s participation in a typical tech success coaching program. These values are based on improvements in the coachee’s ability to “Define and Champion Your Professional Value” (see Table 1). Low and high estimates of compensation improvement are 10% and 20%, respectively. These are based on the coachee’s improved salary from work successes and increased negotiation skills based on higher confidence & self-awareness. A total compensation of $442 k (Base + Bonus + Equity) is assumed, resulting in $44 k - $88 k compensation benefits after Year 1. Assuming the Director stays in their current role for 2-5 years and an annual inflation rate of 3-5%, total benefits of $47 k - $113 k are estimated.

Figure 2:  Quantified value use case 2 – Product Designer total net worth savings

Figure 2 estimates a total net worth savings Return On Investment (ROI) outcome for a more junior Product Designer’s participation in a typical tech success coaching program. These values are based on improvements in the coachee’s ability to “Frame Sensitive Health, Family & Personal Constraints for Your Work” (see Table 1). For this use case, we assume a 20-30% reduction in the likelihood of divorce with a partner after a successful tech success coaching program to improve work-life balance and reduce burnout. To simplify calculations, the partner is assumed to also be a junior Product Designer with the same compensation. Direct costs of a divorce in the San Francisco Bay Area are estimated to range between $10 k - $50 k for such a professional couple. Only considering direct costs (legal fees, court fees, and expert fees), low and high estimates of 20% and 30% reduced likelihood of a costly divorce map to direct savings of $2 k - $15 k. Assuming the designer is 32 years old with 20 - 30 working years remaining, and inflation rates of 3 - 5%, total net worth savings of $4 k - $65 k result. Of course, significant indirect benefits of more positive emotional well-being, increased income, and increased total assets would also likely result. For example, such a couple would typically have a net worth of $1 - $2 M after 10 years assuming a savings rate of 20-30%, investment returns of 7%, and home ownership appreciation. Such benefits are all in addition to the single measure of direct fees shown in Figure 2.

The above two use cases are concrete examples of direct, conservative financial values resulting from typical tech success coaching programs. You can learn more about tech success coaching here or book a free 20 minute consultation to discuss a customized coaching program for your needs.

[1] Dagley, G. (2006). Human resources professionals’ perceptions of executive coaching: Efficacy, benefits and return on investment. International Coaching Psychology Review, 1(2), 34-45.

[2] McGovern, J., Lindemann, M., Vergara, M., Murphy, S., Barker, L. & Warrenfeltz, R. (2001). Maximising the impact of executive coaching: Behavioural change, organisational outcomes, and return on investment. The Manchester Review, 6, 1–9.

[3] Anderson, M.C. (2001). Executive briefing: Case study on the return on investment of executive coaching.  Retrieved 7 November, 2024, from: https://gvasuccess.com/articles/ExetutiveBriefing.pdf