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.