Measuring the ROI of Coaching

Not only is coaching a fast-growing profession, the ways in which coaching is being used are growing. No longer is coaching only for executives, it’s becoming more common to see coaching used in other ways, such as a support to a new hire or a way to transfer learning to behaviour of job skills.  In spite of the wide acceptance of coaching, the challenge to demonstrate the benefit or return on investment (ROI) of coaching remains.

Lisa Ann Edwards of the Bloom Coaching Institute has developed a ROI Methodology (Measuring the Success of Coaching: A Step by Step Guide to Measuring Impact and Calculating ROI (ASTD Press, 2012).  The Guide sets out five levels of evaluation to consider in measuring the ROI of coaching:

Level 1: Reaction and Satisfaction – measuring the coachee’s satisfaction, reaction and planned reaction as a result of coaching.

Level 2: Learning – measuring the coachee’s change in knowledge, skill or attitude.

Level 3: Behaviour, Application and Implementation – measuring the coachee’s changes in on-the-job behaviour.

Level 4: Business Impact – measuring the link between behaviour (doing) and business impact (monetary)

Level 5: ROI – after all costs of the coaching, both direct and indirect, what was the return on investment?

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