Studies show that the Return on Investment for coaching typically ranges from 500 to 700%. Some studies are as low as the 100% range – which by itself is a fabulous return on investment – and another study cites 1000%. These numbers are phenomenal and a reason to wonder ho
w you can afford not to have a coach.
On the pro side of the studies we gain awareness of the value, get specific in terms of the reality that there is an impact, and support making the case for coaching. On the con side of the studies they are expensive, which means limited in number, and much of the impact is more qualitative than quantitative.
Recently there have been several articles that state the focus on the ROI actually takes away from the outcome. Because measuring ROI focuses on the quantitative outcomes, there is pressure for the coaching to focus on those specific outcomes. At the same time the qualitative benefits of coaching often provide the greater impact. If the focus on the quantitative minimizes the qualitative, the overall ROI is diminished. Thus ideally coaching is measured and the qualitative benefits are also valued and tracked.
In executive coaching, often the process for determining ROI is discussed before beginning the coaching work. List what can be tracked quantitatively and also list qualitative outcomes along with an estimated value.
