globalcoachingstudyexecutivesummary

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Introduction

This is a summary of the findings from the 2012 ICF Global Coaching Study.The study was commissioned in 2011 by the International Coach Federation(ICF) and undertaken by PricewaterhouseCoopers.

In late 2006, the ICF commissioned its first ever global industry study toprovide a baseline picture of the profession; to identify what coaches sawas the major challenges; and to estimate the size of the profession. Whenthe benchmark Final Report was ultimately released, the 2007 ICF GlobalCoaching Study included responses from 5,415 coaches living in 73 different

countries

among them, more than 1,500 non-ICF member coaches.

Since then, the landscape of professional coaching has evolved in termsof the number of coaches worldwide, global revenue, and perhaps eventhe demographic profile of the coach.

Following a sharp slowdown in 2008, global output fell in 2009 andsubsequent economic recovery has been tentative. Nonetheless, the

coaching profession appears to have continued its expansion. To serveas a reference, the ICF membership numbers grew from around 11,000in 2006 to almost 19,000 by the end of 2011.

Against that backdrop, the 2012 ICF Global Coaching Study was designedto be one of the most ambitious pieces of industry research ever conductedon the field of professional coaching. A primary goal was to engage with asmany coaches as possible on a worldwide basis, thus providing an up-to-

date picture of the profession to help meet the challenges ahead.


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The survey was launched onlinein June 2011, with all ICF membercoaches sent a personalizedinvitation and survey link.Strategies were adopted tofacilitate and encourage thewidest possible participationby ICF and non-ICF coaches.

The questionnaire was madeavailable online in nine languagesand was also designed so that itcould be completed using mobiledevices. ICF members were askedto provide a link to the online surveyregistration site to their widernetworks of coaches; creating asnowball effect that would attracteven more non-ICF coaches.

Over the six-month fieldwork period,global reminders were regularlyissued to those in the ICF contactsdatabase who had yet to completethe survey. Coaches who becameICF members during this period werealso invited to participate through themonthly reminder campaign.

Throughout 2011, the ICF alsopromoted the survey extensivelyat regional and global ICFConferences in Madrid, Spain,Las Vegas, USA and Santiago, Chile.Other professional coaching bodiesdelivered messages directly to theirown members encouragingparticipation.

Our deepest gratitude must beoffered to the following collaboratingorganizations:

Association for Coaching (AC); Association of Coach Training

Organizations (ACTO); European Mentoring and Coaching

Council (EMCC); Graduate School Alliance for

Executive Coaching (GSAEC); and

International Association forCoaches (IAC).

The survey process

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International Coach Federation 2012 ICF Global Coaching Study Executive Summary


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The efforts deployed to maximizeparticipation in the 2012 GlobalCoaching Study proved verysuccessful. With 12,133 validresponses, the survey is largein scale, providing a wealth ofdetailed information on thecoaching profession.

Responses were received fromprofessional coaches in 117countries, an unprecedentedresponse. In fact, a total of 31 nationseach received more than 100 surveyreturns; representing all the majorworld regions. This threshold ofparticipation enabled these nationsto receive customized dataappendices which includedresponses to most of the surveyquestions provided to coachesin this study.

The survey also reached outto the wider coaching profession.Over 4,400 valid responses werereceived from non-ICF members.Western Europe and North Americaeach contributed around 1,400respondents to the non-ICF total.

The remaining non-ICF returnswere spread across the other worldregions. The response from non-ICFmembers was above average inthe Middle East and Africa, whereone in two responses were fromnon-ICF members, followed byAsia (46%).

More than 7,700 ICF membersresponded to the survey. The largestnumber were from North America(3,565), reflecting the regions 52%

share of the ICF contacts database.Over 2,000 responses were receivedfrom Western Europe. Both LatinAmerica and Asia generated inexcess of 500 returns from ICFmembers.

NOTE: The figures presented in this

report are based on survey responsesand therefore rely on the accuracy of

the data provided by the surveyrespondents.

Survey outcomes

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A truly global survey117 countries participating

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A comprehensive list or leaguetable highlighting the responses

for every nation participating inthe study will be provided toreaders in the Final Report.

Survey responses by region

3,565 1,411

0 1,000 2,000 3,000 4,000 5,000 6,000

North America

Latin America and the Caribbean

Western Europe

Eastern Europe

Middle East and Africa

Asia

Oceania

Number of valid responses

535 419

2,038 1,380

388 318

211 210

526 452

473 207

ICF Non-ICF

100+ returns (31 countries)

Fewer than 50 returns (79 countries)

50-99 returns (7 countries)


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A key objective for the studywas to determine estimatesof coaching revenue by typeof coaching, geographicalregion and global total.

Given that no accepted, globallyinclusive list of coaches was

available to use as a samplingframe for the survey, the precisenumber of professional coachescurrently practicing worldwide isnot able to be confirmed. In orderto determine these revenue figures,it is first necessary to make someassumptions about the number ofcoaches that there are in the world.

It was therefore required to estimatethe number of coaches, both globallyand by region, using a combination

of known total ICF membershipnumbers combined with estimatedmembership numbers of otherorganizations and survey responses,based on a membership ratiomethod. The methodology is fullydetailed in the Final Report.

The estimation procedure benefitsconsiderably from robust ICFmembership counts, the large scaleof the global survey including non-ICF members, and the availability ofinformation on membership overlaps.

From the available data, it is herebyestimated that there are presentlyin the region of 47,500 professionalcoaches worldwide.

When asked about their current levelof coaching activity, 87% of coachesresponding to the survey said theyhad active clients at the time of theirsurvey response.

Therefore, the estimated globalnumber of active coaches is 41,300.This distinction between coaching

activity levels remains significantbecause only active coaches whocompleted the survey were askedabout revenues, fees per 1 hoursession, hours worked, and numberof clients.

Number of coaches

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Coaches by world region

Number % Per 1mpopulation

North America 15,800 33.2 46.0

Latin America & the Caribbean 2,600 5.4 4.4

Western Europe 17,800 37.5 44.4

Eastern Europe 3,500 7.4 7.9

Middle East & Africa 2,100 4.3 1.7

Asia 3,300 7.0 0.9

Oceania 2,400 5.1 66.2

Global 47,500 100.0 6.9

Note: 2010 population data by country sourced from the World Bank indicators database(http://data.worldbank.org/topic).

Professional coaches are notevenly distributed across theglobe. Rather, they are mosthighly concentrated in the high-income regions of North America,Western Europe and Oceania(primarily Australia and NewZealand).

Together, these three world regionsaccount for 76% of the estimatedglobal total of professional coaches,compared with their 11% share ofglobal population.

Globally, there are 6.9 coachesper 1 million population. In the high-income regions, the ratio of coachesper 1 million population is in excessof 40.

Nonetheless, the coachingprofession appears to be showingmore rapid growth in emergingregions outside the establishedhigh-income regions.

Coaches by world region

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Survey respondents with activeclients were asked to providetheir annual revenue or incomegenerated by coaching only.

A total of 64 different currenciesfeatured in the responses to the

revenue question.The revenue

figures were therefore standardizedto U.S. dollars (USD) based oninternational exchange ratespublished by the World Bank.When calculated in USD, averagerevenues are highest in the high-income regions of North America,Western Europe and Oceania.

However, it should be rememberedthat, while the revenue data has beenprovided in one currency, the valueof the amounts quoted in individual

countries and regions must becontextualized in terms of PurchasingPower Parity (PPP), and diversestandards of living. This subject willbe described in greater detail in theFinal Report.

There is, however, considerablevariation in annual revenues earnedfrom coaching, which is evidentwhen comparing average andmedian revenues. The medianrepresents the middle value inthe distribution of annual revenues.

Annual revenue/ income from coaching

Globally, median annual revenuesin 2011 were $25,000 (i.e. one halfof coaches earned less than thatamount from coaching and the

remaining half earned in excessof $25,000).

In comparison, the averageannual revenues from coachingwere $47,900. The disparitybetween median and averagerevenues from coaching perhapsreflects the diversity that exists withinthe coaching profession, includingfactors specific to the coach, such ascoaching experience, education andother services they offer within theirpractices.

Among those services mentionedmost commonly were consulting(62%) and/or training (60%). Not onlycan coaches choose to work both

externally or internally within anorganization, but they also can servea variety of client types; ranging fromexecutives to personal clients.

Of course, coaches also vary in thenumber of clients they coach, thefees that they charge and the hoursthat they work. In fact, according tothe 2007 ICF Global Coaching Study,a majority of coaches (54%) offersome of their services pro bono andalmost one in three (31%) barter theirservices.

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Average annual revenue ($)

Average$

Median$

North America 50,400 29,100

Latin America & the Caribbean 34,400 12,700

Western Europe 52,100 27,700

Eastern Europe 24,000 12,000

Middle East & Africa 39,600 20,000

Asia 36,500 13,700

Oceania 66,200 36,700

Global 47,900 25,000



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For each of the seven worldregions, total revenue fromcoaching is derived by multiplyingthe regional number of activecoaches by average annualrevenues from coaching.

From the accompanying table, it can

be seen that global revenue shares(in $ million at international exchangerates) are directly related to thegeographical pattern in the numberof coaches and regional differencesin annual revenues from coaching.

Thus, Western Europes share of

global revenue (42%) is in excessof its share of the number of coaches(38%) because annual revenues peractive coach ($52,100) are aboveaverage ($47,900).

Similarly, Asias share of world

revenue from coaching (5%) isless than its share of coaches(7%) because annual revenuesfrom coaching in Asia ($36,500)are below the global average.

Total revenue from coaching

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Total revenues

$ million %

North America 707 35.7

Latin America & the Caribbean 73 3.7

Western Europe 828 41.8

Eastern Europe 69 3.5

Middle East & Africa 68 3.5

Asia 95 4.8

Oceania 139 7.0

Global 1,979 100.0



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When asked about theirexperience over the 12 monthsprior to the study, respondentswere more likely to report anincrease than a decrease in fees,hours, clients and revenues.

Overall, the positive balances in

the trend indicators clearly point to aprofession that is continuing to growthrough difficult economic times.

Almost six in 10 coaches said theyhad experienced an increase inclients, compared to 16% sayingtheir client numbers had decreased.

Coaches were less likely to saythat average fees per 1 hour sessionhad increased (37%), but this can becompared with just 6% reporting a

decline. Similarly, coaches weremore likely to say that the numberof their coaching sessions hadincreased (49%) rather thandecreased (14%).

The positive trends in clients, feesand sessions were clearly reflectedin average revenues, with 55%reporting an increase comparedto 15% indicating that their annualrevenue had declined.

Key trends

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Change experienced last 12 months


25 59

0 20 40 60 80 100

Number of clients

Average fee

Sessions

Annual revenue/ income

Percent

57 37

38 49

29 55

Decreased No change

16

6

14

15

Increased


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The evidence from the studysuggests that the trend indicatorshave been growing more quicklyoutside the high-income regions.

For example, 29% of coaches in LatinAmerica and the Caribbean said theyhad experienced growth across all

four trend indicators in the previous12 months (i.e. clients, fees, sessionsand revenues).

On that criterion, the slowest growingregion was Western Europe, wherefewer than one in five coaches (19%)reported an increase across all fourkey indicators.

Trends by world region

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Experienced increase last 12 months on all key trends


23

0 5 10 15 20 25 30

North America


Western Europe

Eastern Europe


Asia

Oceania

Percent

29

19

25

27

29

26

35

Global 23


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In general, the coaches whoresponded to the study viewtheir prospects over the next 12months in a positive light and arelooking ahead with confidence.More than three in four expecttheir number of coaching clientsto increase.

A similar proportion anticipates anincrease in annual revenue/incomefrom coaching. Over six in 10 (62%)expect their number of coachingsessions to rise.

Coaches are somewhat lessconfident of an increase in averagefees (42%). However, very fewcoaches (2%) expect averagefees to decline.

Coaches located in Latin Americaand the Caribbean, Eastern Europe,the Middle East and Africa, and Asia,are looking forward to the next 12months with greater confidence thantheir counterparts in the high-incomeregions.

For example, 84% of coaches in LatinAmerica and the Caribbean expect tosee an increase in annual revenueover the next 12 months compared

with 69% in Western Europe.

Looking ahead

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Change expected next 12 months

Annual revenue/ income next 12 months


19 76

0 20 40 60 80 100

Number of clients

Average fee

Sessions

Annual revenue/ income

Percent

56 42

33 62

20 76

Decreased No change

4

2

4

4

Increased

19 77

0 20 40 60 80 100Percent

13 84

25 69

16 81

Decreased No change

3

3

6

3

Increased

North America


Western Europe

Eastern Europe


Asia

Oceania

Global

15 82

17 79

16 81

20 76

2

4

3

4


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The 2012 ICF Global CoachingStudy provided coaches withthe opportunity to commenton a range of issues facing theindustry in the future, including:regulation of coaching; obstacles;and opportunities.

A majority of coaches (53%)believed that coaching shouldbecome regulated. On the otherhand, 23% did not believe thatcoaching should become regulatedand the remaining 24% indicatedthat they were unsure on the subject.

When compared to the other sixglobal regions, the proportion ofcoaches favoring regulation wassignificantly lower in North America(42%); however, the responses werestill in excess of those in NorthAmerica who did not agree thatcoaching should be regulated (30%).

Among those who believe coachingshould be regulated, or who wereunsure, the overwhelming majority(84%) felt that professional coachingbodies were best placed to regulatethe industry.

Key issues facing the industry

Untrained individuals who callthemselves coaches were viewed asthe main future obstacle for coachingover the next 12 months (43%),followed by marketplace confusion(30%).

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Key issues facing the industry in the future (% respondents)

Obstacles

Untrained individuals 43

Marketplace confusion 30

Market saturation 9

Under-pricing 5Over regulation 3

Competing services 3

Other 7

Opportunities

Increased awareness of benefits 36

Credible data ROI/ ROE 28

Improved general perception 14

Increased demand 11

Positive media 8

Other 2

The main opportunities were seento be increased awareness of thebenefits of coaching (36%) andcredible data on the return oninvestment (ROI)/return onexpectations (ROE) fromcoaching (28%).



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The following are the key themes to emerge from the 2012 ICF Global CoachingStudy indicators reviewed in this summary report:

The profession appears to be growing, with an estimated 47,500 professionalcoaches generating close to $2 billion (USD) in annual revenue/income.

The profession remains concentrated in the higher-income regions of NorthAmerica, Western Europe and Oceania. Collectively, these regions containmore than three in four coaches, well exceeding the 11% share of globalpopulation living in these regions.

Despite the critical mass of coaches found in the higher-income regions,nonetheless, the evidence from the study indicates faster growth in coachinghas emerged in markets outside these regions, such as in Latin America andthe Caribbean.

Coaches are looking confidently to the future, with expectations over the next12 months of increasing demand (clients and sessions) leading to growth inannual revenue and income from coaching.

Key issues for the future include tackling obstacles such as untrainedindividuals who call themselves coaches; availing of opportunities to increaseawareness of coaching benefits; and answering the question of whethercoaching should be regulated.

Concluding remarks: key themes

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This summary report haspresented the main findingsfrom the 2012 ICF GlobalCoaching Study. More detailedanalysis and statistics can beobtained from the Final Report,which will be made available inthe coming weeks.

The topics included in the FinalReport are as follows:

Coaching Profession:Size and Key Trends;

Profile of Coaches; Training and Accreditation; Profile of Clients; Interaction between Coach

and Client; Key Issues and Future Trends; and Technical Appendix.

The final report

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www.coachfederation.org/coachingstudy2012

This document contains proprietary information of the International Coach Federation (ICF). No disclosure or use of anyportion of the contents of this material may be made without the express written consent of the ICF. For permission toreproduce any material contained in this publication, please email your request to [email protected] or call+1.859.219.3580. If consent is granted, attribution to the ICF and to PricewaterhouseCoopers should be made. All rightsreserved. Copyright 2012.
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