Monday Oct 06, 2025
The Coaching Crisis: Why 70% of Leadership Development Investments Fail to Show ROI with Andrea Caldwell
Are you a business leader or HR professional frustrated by the lack of measurable return on investment (ROI) from your leadership coaching programs?
You are definitely not alone. Industry reports indicate that a staggering 70% of organizations struggle to effectively measure the ROI of their leadership development initiatives.
This massive disconnect leaves companies feeling like they have invested in a solution without a clear problem, or worse, a problem without a tangible outcome. The market is saturated with providers, and the challenge goes beyond finding a coach—it’s about selecting the right approach for your specific business needs and ensuring it delivers a measurable, lasting impact.
In this deep-dive interview, we pull back the curtain on why so much corporate coaching falls short and what truly moves the needle. To guide us, we host a true expert in the field: Andrea Caldwell, Vice President of Consulting and Coaching at FranklinCovey, a global leader in performance improvement.
The Science of Change: Moving Beyond "Soft Skills"
Andrea shares her deep expertise in corporate leadership and human behavior, explaining that effective leadership coaching is far from a "soft skill." It is deeply rooted in neuroscience and behavioral psychology. We discuss the key scientific principles that make coaching work, including the ability to create new neural pathways in the brain. People change when they feel psychologically safe, achieve small wins, and receive regular feedback. Critically, the change must be intrinsically motivated; it cannot be imposed or come from external pressure.
A major pitfall we uncover is the common corporate mistake of positioning coaching as a punishment—telling an underperforming employee to "go see a coach." This instantly kills intrinsic motivation and sets the entire program up for failure. Effective coaching is about growth, development, and broadening a leader's positive impact on their team and the organization's strategic goals.
The ROI Blueprint: Getting Hardcore Data
The conversation tackles the "Disneyland calculations" often seen in measuring coaching ROI. Andrea provides the facts: studies by the International Coaching Federation show anywhere from a 400% to 800% return on investment on coaching dollars spent. This return comes in the form of improved productivity, expanded skills, and increased confidence in navigating disruption and change. Gallup also reports a 59% lower turnover in organizations with highly engaged teams—a direct outcome of effective leadership coaching.
The key to achieving this high ROI is beginning with the end in mind, as taught in The 7 Habits of Highly Effective People. Before starting any program, you must define clear, measurable objectives that align with business goals, whether they involve culture transformation or specific skill adoption.
The Future of Coaching: Integrating AI and Tackling Culture
We explore the challenges in implementation, notably the lack of executive sponsorship and the inability to effectively apply training. When coaching is paired with a learning experience, implementation boosts up to 400%. To solve the scalability problem, we discuss the role of AI in coaching. AI is an essential tool, acting as a low-stakes practice partner for skill development (e.g., navigating difficult conversations) and helping with accountability, but it is not a replacement for the human element.
Finally, we address the influence of company culture. A toxic culture—like the "firefighter syndrome" where people intentionally wait for a crisis to be the hero—can completely destroy a coaching program. Andrea offers advice on how corporate leaders should evaluate coaching providers by focusing on proven methodology, data tracking, scalability, and cultural fit.
If you want to stop guessing and start getting real, measurable results from your leadership coaching, this episode provides the practical framework you need.
About the Guest: Andrea Caldwell Andrea Caldwell is the Vice President of Consulting and Coaching at FranklinCovey, bringing over two decades of experience in leadership development and organizational effectiveness. She leads teams dedicated to helping organizations build high-trust cultures, develop world-class leaders, and achieve exceptional business results.
Connect with Andrea Caldwell:
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Franklin Covey Profile: https://franklincovey.ca/engage-with-us/andrea-caldwell/
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