Measureing the ROI in CoachingThu 08 Sep 2016
Measuring the impact of coaching is a necessary element of any coaching assignment, and crucial in gathering data to demonstrate its value and impact as the profession matures.
It doesn't matter if you are hiring an executive coach or hiring a business coach. Measuring ROI is critical. This article will focus on Executive Coaching for small to medium sized business. (Most large businesses already have coaching awarness).
You wouldn't buy an investment without looking at the return on investment (ROI). Yet the ROI on coaching is often subjective or hard to measure.
With persistence and collaboration models have been developed. The topic has been explored and we like to share one model with understandng how we can measure ROI on Coaching.
Coaching can have a huge ROI and here are 5 separate levels or area's which may measured.
1. Reaction. Measures participant satisfaction and captures planned actions.
2. Learning. Measures changes in knowledge, skills and attitudes.
3. Implementation. Measures changes in on-the-job behaviour or actions.
4. Business Impact. Measures changes in business impact variables.
5. ROI. Return On Investment. Compares benefits to cost.
Another way to think about these 5 levels is:
1. â€œDid you like the session?â€ e.g. satisfaction survey, feedback.
2. â€œDid you learn anything?â€ e.g. test of objectives.
3. â€œYouâ€™ve learnt the concept, but what are you doing differently back on the job as a result?â€ e.g. mini-survey, 360 assessment.
4. â€œWas there any change in business impact resulting from the coaching?â€ e.g. changes in variables such as quicker/faster/better delivery.
5. â€œHow do the benefits/(or saved costs) of the coaching compare with the cost?â€ e.g. sales targets hit and exceeded by 15%, executives retained, cost of replacing an executive. Possible ways to present could be confirmed ROI to date, ROI between xxx% to xxx% for year 1, expect to grow to xxx% to xxx% over the next 2 years.
Tip for those engaging coaches:
Itâ€™s a good idea to deploy some kind of feedback form or survey after the first or second month of coaching rather than at end of the engagement. Especially if the Coachee is not completely confident or compatible with the coach, new to coaching or any potential issues as it is at this early point that things can easily be adjusted. A good Executive Coach will have but may not necessarily use feedback and assessment forms.
Remember ROI is paramount for continued engagements and coaching success.
Tip for coaches:
Start ALL coaching engagements with specific questions, check list, survery or something to take a measurement from before starting your coaching. If possible, ask to involve other parties around the Coachee to assist in some basic measurements. Secondly, ensure in this process clear goals/agendas/direction is set out. Itâ€™s great if your Coachee sayâ€™s your great. The clearer the results, the easier for all involved to validate their investments in hiring you.
Wouldn't it be great to have your Executive Coaching contracts to end with your clients expressing something like:
The Coaching engagement resulted in achieving 4 of 4 targets during the engagement. Plus we experienced a measured ROI of 300-500% by the end of the engagement. Next year we predict that ROI to grow to 500-800%. We look forward to more success.
Wealth Beliefs & ParentingTue 19 Jul 2016
Reading a very interesting book on wealth and love to share an overview about families and wealth.
They believe the more dollars you give to adult children, the fewer dollars these children accumulate (a statistically proved relationship).
Here are the rules they more or less live by in dealing with their offspring:
-Never tell your kids you are wealthy. -Teach your children discipline and frugality. -Minimize discussion on what your kids will inherit.
-Never give cash or significant gifts as part of a negotiation.
-Stay out of your adult children's' family matters.
-Emphasize their achievements.. .not your success.
-Assure them many things are more valuable than money.
Millionaires also encourage their children to become self-employed professionals such as doctors, attorneys, engineers, architects, accountants and dentists. They believe only a small number of professional people fail to make a profit any given year and they earn more than the average for small businesses. "You can lose your business, but not your intellect," they say. Most own their own business because they believe self-employment is less risky than working for another.
Very Interesting points. What are your thoughts?More