How you measure the return-on-coaching

While negotiating coaching contracts I have been asked this question many times:?“How can I quantify the benefits that coaching of individuals or teams bring my organisation? After all, this is significant money I invest, and I want to get more insight on the possible return before we start.”

This is how I see the situation

You contemplate using coaching as a tool to improve the performance of your organization.?This means that you are already aware of the potential benefits of coaching! The first part of the answer is already there: we are talking because you know that coaching works. Ideally, you also have the buy-in of your organisation: coaching for individuals or teams, on the executive level, or at any other level in the organisation.

The second part of the question is about deeper insight. What performance criteria are relevant for measuring the success of the coaching? Tim Hagan suggested that typical KPI’s may not be an effective measure (How to calculate your coaching Return on invest, Forbes, 11/2021). Instead, KPI’s should be used that measure feedback, motivation, collaboration, happiness, ... soft stuff.??While this may be an answer - and I believe it is a reasonably good one - have you ever wondered how to go further in demonstrating impact on organisational performance???Harvard Business Review and International Coach Federation (ICF) case studies, such as Google’s project Oxygen show the positive impact on organisational performance through improved leadership skills, communication, decision-making, and employee engagement. Improved performance can be used as an indicator of future financial success and thus a relevant justification for the investment.?And measuring improved performance is again within in the standard collection of KPIs. While there may be some immediate impact on the numbers, the real objective is to prepare the organisation for the long run, where company culture, individual performance are critical contributions to a successful company.

If you have time to read one book on how care, empathy and inspiration towards employees changes companies for the better, I recommend "Everybody Matters" by Bob Chapman and Raj Sisodia . They did an amazing job of capturing the journey of Barry Wehmiller Companies Inc..

How do you measure the return-on-coaching in your organisation??

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