Trending Away from ROI in Coaching

Trending Away from ROI in Coaching

By guest blogger Bonnie Chernin, CPC

June 2014

  • ROI abandoned as a key statistical measurement to determine the impact of coaching.
  • Latest survey shows a trend away from ROI toward a feedback-based measurement in coaching practice.

Trending Away from ROI in Coaching Sherpa Coaching just released their 2014 Ninth Executive Coaching and Leadership Survey earlier this month.  Surprising new findings present a major shift in the way coaching effectiveness will be measured and interpreted going forward.

The question asked in the survey is:  In your experience, how are the benefits of coaching most often measured?  Participants included executive and business coaches (66% and 11%); HR and training professionals (9%); business leaders (7%) and other coaches (7%).   The 845 respondents included coaches, clients and HR professionals from 50 countries.  The All Respondents Summary results are published in the survey:

  • 360 assessments before and after (Goldsmith method) – 28%
  • Well being and engagement framework – 21%
  • Performance reviews – 20%
  • IOB:  Impact on Business (Sherpa method) – 13%
  • ROI:  Return on Investment – 11%
  • Effectiveness of Learning (Kirkpatrick method) – 7%

The results clearly show the 360 measurement – using feedback taken before and after coaching – is the preferred method and is most often used by external coaches.  With ‘Well-being and engagement framework’ at 21% and the measure frequently used by internal coaches, the focus is trending away from a quantitative measuring approach toward a methodology that reflects coaching’s benefits.  This corresponds with a drop among the number of consultants who use ROI to determine the value of coaching, down from 33% to 22% this year.  Significant also is the survey result that “only 11% of executive coaches attempt an ROI measurement.”

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