Options for Measuring ROI

Coaches, companies, and individual coachees think about the value and return for their investment in the coaching relationship.  Sometimes the focus is heavily on the quantifiable bottom-line impact.  Other times measures for qualitative improvements are developed.

One option for measuring coaching ROI is Kirkpatrick’s 4 level formula:

Level 1—Reaction: How satisfied are you with the coaching experience?

Level 2—Learning: What did you learn through this experience?

Level 3—Behavior: What are you doing differently because of the coaching?

Level 4—Results: What difference has this made in your outcomes?

This measure may be used conversationally, or values may be assigned to both the qualitative and quantitative components.

A factor in determining a true coaching ROI figure is the degree to which the results can be attributed to coaching.  Specifically, the change in the coachee’s outcomes and how much of that change has been the direct result of the coaching.

Hence, another option for measuring ROI is this equation:

X = Sum total of coaching impact
÷ Total cost of coaching

(Note: To obtain results in percentages multiply X by 100.)

It is important to note that whatever the formula is, choosing what to measure and how for the ROI will come from the sponsor or coachee.  Therefore it is critical to engage coachees and sponsors in determining their criteria for measuring ROI in advance, and to check-in with them throughout the coaching relationship.