The most effective way to measure the return on investment (ROI) of coaching is to focus on Return on Expectations (ROE). This involves gathering information about an employee's strengths and needs, how they are perceived and what they should do to achieve a higher level of performance. Pre-training and post-training evaluations, completed by both coaches and participants, can help to lay the groundwork for more impactful training that aligns with corporate objectives. Companies that combine coaching with training can increase company productivity by more than 80%.In the future, more and more coaching professionals will be asked to provide the ROI of coaching expenses.
To strengthen the case for coaching, it is important to measure both the main indicators and the lagging indicators. Main indicators can be modified to help obtain the delayed measures. The International Coaching Federation (ICF) recognizes a handful of companies and organizations that have achieved the highest standard of excellence in training programs. To measure the success of coaching and of a coaching culture, it is essential to start with a goal in mind: what do you want to see that is different in the organization? It can be either quantitative or qualitative, or both. Surveys have revealed that 77% of respondents attributed their retention or that of their team members to coaching and 80% attributed the training to the acceleration of their transition. Successful coaching initiatives begin when leaders align training activities with specific strategic objectives.
Coaching is based on results, so it is important to think about large scale coaching and free individual coaching and how they translate into a difference in ROI, such as an increase in revenues, a decrease in costs, or an increase in the internal movement of people. Every coach looks forward to that “magic moment” when a player they have mentored shows that he has been listening and learning, that moment in which the coach knows that his work has made a difference. Measuring the value of a coaching culture is not easy but it is possible. By focusing on Return on Expectations (ROE) and gathering pre-training and post-training evaluations from both coaches and participants, companies can ensure that their training aligns with corporate objectives. Surveys can also help to measure the success of coaching initiatives.
Ultimately, successful coaching initiatives begin when leaders align training activities with specific strategic objectives.
