ATD, association for talent development

ATD Blog

Making the Business Case for Coaching

Why a one-to-one investment can yield enterprise-wide returns.

By

Thu Oct 02 2025

Making the Business Case for Employee Onboarding
Loading...

I am a coach. I incorporate coaching into how I teach, train, and present. I have a coaching mindset. And I love it when my clients consider coaching as a leadership development option.

But let’s get one thing straight: Coaching is not a feel-good perk. It’s a business decision. And like any investment, it needs a solid rationale, a strategic purpose, and a measurable return. Too often, coaching gets pitched with passion and launched with enthusiasm—minus a clear business “why.” That’s when it becomes “an HR thing.” And that’s when you lose your champions before you even get started.

So, how do you make the business case for coaching that lands? One that earns support from executives, activates middle managers, and delivers results across the org chart? You start with the business, not with the coaching.

Begin With Why – The Business’s Why

The fastest way to get your coaching initiative ignored? Start with how. “Let’s roll out coaching!” sounds exciting, but if you can’t tie that how to a compelling why, you’re just adding to the noise.

Your business case must start at the top—with what’s happening in your industry, the trends and risks your organization is navigating, and the strategic objectives your leaders are laser-focused on. Only then can you align your coaching initiative with the real problems leadership is trying to solve.

Don’t turn coaching into a solution in search of a problem. It’s a tool to help leaders do what the business needs them to do—better, faster, with more impact. When framed that way, coaching becomes a driver of business outcomes, not a side project.

Reframe Coaching as a Strategic Investment

Coaching is not about “fixing people.” It’s about unlocking leaders’ potential in service of the business. One executive in construction management put it this way: “After each session, I feel driven, inspired, and energized … my coach helps me find ways of solving issues specifically tailored to my approach and my situation.” That’s not just personal growth—it’s business alignment. Coaching becomes strategic when it helps leaders tackle real-time challenges that directly affect performance, culture, or results.

Take the leader who was struggling to adapt to a shifting culture after a company transformation. Targeted coaching sessions helped them process the changes, rebuild their confidence, and show up with renewed clarity for their team. That’s not fluff. That’s risk mitigation.

When coaching is grounded in the “why” of your business strategy—and when you’ve identified the right leaders, right goals, and right timing—it delivers more than insight. It delivers impact.

Know When Coaching Is the Answer – And When It Isn’t

Coaching isn’t a magic wand. It doesn’t scale easily, it won’t fix poor performance, and it may not teach hard skills from scratch. But when it’s used well, when the right leaders are matched with the right coaches for the right reasons, it’s transformational.

It’s also personal. Coaching creates a safe, confidential space for leaders to explore their challenges, clarify their goals, and change behaviors. It’s practical, timely, and deeply relevant, which is why it aligns beautifully with adult learning principles. No slide decks. No forced group participation. Just one-to-one, focused development.

So yes, coaching works. But it works best when it fits inside a broader strategy. When it’s linked to a specific competency or business objective. When the leader’s manager is involved and supportive. And when it’s not treated like a “fix-it” for underperformance.

Prove the ROI – Even if It’s Ripple-Based

Coaching doesn’t always show up on a dashboard. It’s tough to quantify breakthroughs, mindset shifts, or a leader’s new ability to inspire a disengaged team. But the ripple effect is real.

When leaders become more self-aware, more effective, more empowered—their teams feel it. The leaders make better decisions. They communicate more clearly. They retain high performers. Productivity increases, turnover decreases. Goals are hit, engagement is nurtured, and the organization builds a reputation for being a great place to work.

That’s ROI. You just have to know where (and how) to look.

If you’re having a hard time justifying the cost, flip the question: What’s the cost of not coaching this leader? What happens to their team, their output, your pipeline of promotable talent? Suddenly, the math changes.

Pick the Right Coaches for the Right Context

Who delivers the coaching matters. Managers can coach—but they’ll need training, time, and trust to do it well. Peers can coach—but you’ll need structure, upskilling, and accountability. HR can coach—but only if they can set aside their other hats and avoid the perception of dual loyalties. And external coaches? Pricier, sure. But they bring perspective, expertise, and built-in confidentiality that can accelerate impact.

In short: Know your bench. Build your options. And pick the model that best supports your leaders, your culture, and your capacity.

Final Word – Coaching Doesn’t Have to Be Big to Be Bold

Don’t wait for the perfect enterprise-wide rollout. Start small and intentional. Find a high-potential leader with a clear development need and a supportive manager. Pair them with a coach. Measure the impact. Then tell that story. That’s how you build momentum—and credibility—for coaching as a serious leadership investment.

Because for those of us who are coaches and love coaching, it isn’t just about developing individual leaders. It’s about helping organizations unleash the potential of their humans. One conversation at a time.

You've Reached ATD Member-only Content

Become an ATD member to continue

Already a member?Sign In


Copyright © 2025 ATD

ASTD changed its name to ATD to meet the growing needs of a dynamic, global profession.

Terms of UsePrivacy NoticeCookie Policy