In Coaching there is more than one bottom line to consider when measuring ROI; both the intangible (qualitative) and the tangible (quantitative) impact are equally important. Additionally, there are multiple intangible and tangible outcomes.
Intangible benefits include enhanced inter-personal relationships, a more positive attitude, improved process for strategizing and decision making, and a greater level of awareness. The intangible ROI is unique to every coaching situation because what the coachee learns and changes is different. A note: the comfort level of the coachee with their coach impacts skill development.
The tangible ROI can be quantified through numbers and formulas and it also varies based on the coaching situation. For example, in a business setting, bottom line measures may include productivity, sales, and turnover costs. The tangible number, how much achieving the goal changed the bottom line, is divided by how much the coaching cost in terms of hours spent plus dollars invested.
A best practice for measuring ROI in coaching is to talk with a sponsor and / or with individual coachees prior to starting the coaching relationship(s). In the conversation, ask what they want to gain from the coaching and ask how they want to measure it. Then, throughout the coaching relationship, check in with them on whether they are gaining what they want from the coaching. When a sponsor or coachee focuses on only tangible or intangible benefits, then ask questions about the other type too.
