NEWS RELEASE

Executive Coaching and Its Contribution to Business
Performance Outcomes – Suggestion from Empirical
Research

September 20, 2022
Tokyo, September 20, 2022 -COACH A announced the release of a research paper, “Does
Executive Coaching Really Have an Impact on Management?“, a report of a statisticalanalysis on the impact of executive coaching on business performance outcomes, which
was conducted by the Coaching Research Institute and Kinya Kokubo, Associate Professorof Nishogakusha University. The report showed that business performance outcomes have
improved for a group of companies that utilized COACH A’s executive coaching.

Ordinary Income of companies that utilized coaching outperformed
In this report, we extracted 60 companies from COACH A’s client companies that are either
publicly traded on the 1st Section of the Tokyo Stock Exchange or are publicly tradedsubsidiaries of such companies, whose top executives (Presidents) have received coaching
through the 3-year period between 2017 and 2019. Using 1,604 publicly traded companies
on TSE’ 1st Section as of March 2020 as the control group, an analysis was conductedcomparing the Compound Annual Growth Rates (CAGR) of Ordinary Income (CAGR Profit)
as well as CAGR Profit Rate of Ordinary Income(CAGR Profit Rate) through the 3 years
between April 2017 and March 2020.
As a result, both analyses showed higher results for the group of companies that utilized
COACH A’s coaching, with statistically significant results. Specifically, [3-year CAGR_Profit]
showed 10.6% growth for companies that utilized COACH A’s coaching and 1.2% for thegroup of other companies. As for [3-year CAGR_Margin], companies thatutilized COACH A’s coaching showed 5.0% growth. (see Diagram below).

Diagram: Business performance outcomes (average) of companiesthat utilized COACH A’s coaching and their control group

In order to grasp the impact of coaching more accurately, 60 control companies thatmatched the traits of the 60 test companies were chosen from a list of 1,604 companies in
the control group, and a survey was conducted to see whether there would be a difference inbusiness performance outcomes between the 60 companies where executives werecoached, and the 60 control companies where executives were not coached. It was foundthat companies that utilize COACH A’s coaching showed results that were higher withstatistical significance for both metrics (CAGR Profit/ CAGR Profit Rate).

Outlook for Coaching Research
As it has been made clear statistically that companies utilizing COACH A’s coaching aredelivering healthy business results, it can be seen that coaching for top management
generates some form of impact on management. Having said that, it is also true that thisanalysis does not necessarily prove that there is a direct relationship between coaching andbusiness performance outcomes. It is believed that there are other multiple, different, andindirect paths of influence between coaching and business performance outcomes, whichare yet to be discovered.

The influence of coaching on businesses is being researched not only in Western countries
but also throughout Asia, but measuring its effectiveness is still a work in progress.
Additionally, coaching is not as widespread in Japanese society as it is in the West, so theresearch of coaching in Japan is still in its earliest stage.
Despite these circumstances, this research has been rendered possible due to the fact thatthe number of top companies that utilize executive coaching for their top management(including top executives) has reached a certain level. It is hoped that the mechanism ofcoaching will be further clarified as coaching becomes more prevalent among Japanesecompanies.
We believe that it is one of COACH A’s responsibilities, as a leading company in thecoaching industry, to identify the value of coaching as it gets implemented by more and morecompanies in recent years. We intend to put our ample results and data to use in driving
coaching research forward.
Please download the full report here.

COACH A Co., Ltd.
COACH A is one of the largest coaching ﬁrms in the world, established in 1997 as Japan’sﬁrst coaching institution. It focuses not only on supporting individual growth but also on therelationships that surround individuals, and provides dialogic organizational developmentthat supports the growth of entire organizations globally, in languages such as Japanese,English, Chinese, and Thai. It also conducts evidence-based coaching leveraging analysis
data from its research division, Coaching Research Institute (CRI), and analyzes the data it
has amassed from its vast coaching record to release reports on topics such as themechanism between leadership and organizational revitalization or the effectiveness ofcoaching.

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