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Coach

Tool: ROI

Typical use (type of issue/project)

After the client has undergone coaching. It is used to measure the coaching’s effect on both their behaviour as well as business results.

Ease of use rating

Used by

Your client and their manager.

Tips for effective use

Best used at the agreed end of the coaching programme, with data collected from both the client and their manager.

Signals of successful use

The client and their manager understanding the benefits of coaching for both the individual and the business.

Signals of unsuccessful use

Stopping coaching if the monetary return from the coaching investment is not as high as desired. Failing to recognise the personal growth and developmental opportunity coaching provides as well as its monetary returns.

Links to other tools

SMART, ACHIEVE, Start-stop-continue, and Business case (Project analytics and diagnostics).

 

ROI

The work of Kirkpatrick, and later, Phillips, provides a useful starting point for measurement of return on investment, particularly of development and learning activity, including coaching. Kirkpatrick defines four levels of evaluation ranging from participant reaction to increased capability and knowledge.  Phillips built on this work to examine benefit at five levels, and seek to demonstrate the value of interventions on the bottom line of the business, through behaviour change and/or monetary impact.

When planning any programme of work, or people initiative, the ability to measure return on investment is critical. As HR professional, your business acumen and understanding of corporate goals and objectives enables you to measure effectiveness in business terms.  This is an important discipline to get in to – in order to be able to demonstrate in business terms the impact and value of your work and the work you direct.

  1. Looking back over the programme, please describe the performance improvement that you have realised as a result of the coaching. In your answer you may wish to include reference to internal documents such as performance and development reviews and appraisals.
  2. What impact do these improvements have on the organisation? Please tick as appropriate.
  • Increased output/sales
  • Increased personal productivity
  • Increased team productivity
  • Increased product quality
  • Improved customer relationships
  • Reduced customer complaints
  • Reduction in delivery times
  • Other (please specify)
  1. For each item ticked above you must complete a benefit calculation using the following table:
Indicator of impact Estimated annual monetary value of performance improvement Percentage improvement due to coach Percentage confidence in this estimate Value
In other words: reduced meeting time
£30,000
80%
60%
£14,400
 
 
In other words: total
£14,400
  1. When the table is complete, the monetary benefit is calculated with the following formula:

Monetary value=
Estimated annual monetary value of performance improvement
x Estimated percentage improvement due to coaching
x Percentage confidence in this estimate