Alone we can do so little; together we can do so much.
- Helen Keller

Are you getting value from coaching?

27.10.2013
Calculator and sterling currency

A current coaching client has so far increased sales from 91% of target to 98%, an increase of £450,000 sales over a period of 5 sessions.

We estimate that 10% of the sales can be attributed to increased performance as a result of coaching, which gives a very healthy return on investment.

Coaching is a confidential, constructive and non-judgemental dialogue aimed at encouraging, supporting and challenging clients to deliver high performance and get results.

Coaching is no longer reserved for senior executives, coaching at all levels of the organization is now recognized as a route to building a high performing organization.  

Measuring the value of coaching is not only possible it is fundamental to the credibility and professionalism of coaching.

Some of the benefits of coaching for the organisation and the individual can be found here.

Why measure value?

  1. Prove it or lose it, development budgets are under scrutiny
  2. Provide demonstrable return on investment to win over sceptics of coaching
  3. Useful from an investment decision perspective
  4. Shed reputation of coaching as a ‘touchy feely’ nice-to-have intervention
  5. To answer the question “have we got our money’s worth?”
  6. In reverse, to highlight the cost of not using a coaching approach

Challenges to measuring the value of coaching.

The impact of coaching on an individual, and collectively on an organization can seem difficult to articulate, how do you measure the value of becoming a more rounded human being, or a more integrated organization? How do you preserve the integrity and confidentiality of the coaching relationship yet still review and evaluate outcomes to provide information to those making the investment?

Calculations

  • Value of coaching = Return on Investment (financial value) + Return on Expectation (intangible value)
  • The costs can be calculated from coach fees (if external), administration costs (if using licenced questionnaires e.g. Myers Briggs) and multiplying the hourly rate of all the stakeholders involved by the actual time spent.
  • Return on Investment = (gain from investment – cost of investment) / (cost of investment)

Good practise for measuring the value of coaching.

It is essential to build in measurement throughout the coaching process so that at the end of the engagement there is sufficient evidence of the value delivered. Ideally there will be multi-rater feedback from coach, managers, peers, direct reports as well as self-report by the coachee.

  • Agree the desired coaching outcomes prior to starting coaching. Include quantifiable financial outcomes, metrics and baseline figures as well as more subjective measures e.g. ‘confidence’ which the coachee can score e.g. 7 out of 10, often with supporting narrative.
  • The coach and coachee will use the expected outcomes to guide topic discussion during the sessions.
  • Much of the data will already be captured in HR and financial IT systems or reporting processes e.g. absences, sales targets, performance results, budgets, KPI.
  • Leveraging this data helps to demonstrate that deliberately linking business strategy and people strategy through coaching delivers business outcomes.
  • Track the agreed metrics throughout the coaching engagement and summarise the supporting evidence in the coaching outcomes report.

Now that coaching is maturing as a distinct capability the body of evidence towards demonstrating financial outcomes is also increasing.

Want to find out more or try coaching for yourself?

Back to index

0 Comments

Comments

Sign up to our blog or newsletter

Our monthly newsletter includes a digest of the blog, other news and special offers.

It is easy to unsubscribe if you change your mind later and we never pass on your details to anyone else.

Sign up

Testimonial

Angela designed a series of focus groups to prompt discussion and gather feedback from a variety of stakeholders groups at different levels of the organisational hierarchy. The design step ensured that all the facilitators were aligned on the purpose and key questions to explore.  The discussions were well attended and provided rich insight.  This enabled us to gain approval for a robust and radical redesign to our global talent development programme
- Julie Hawkins, Early Career Development Consultant – Engineering Organisation

Buy a trial coaching session

We understand that you might prefer to have a trial run to establish that working with us is the right fit for you. We offer a trial coaching session so you can experience our approach first hand.

Find out more