After a long ‘traditional’ career, during the Christmas holidays it was a bit difficult to explain my new role to my family and friends. Financial Director seemed easier to understand and reassuring than Mental Coach.
However, when I mentioned that last year I started helping executives and athletes unleash their full potential, the most frequently asked question was, “how do you measure the success of such an investment made by a coach/company?”
Having an unmotivated executive has definite costs that can be measured. Sales coaching has a direct influence on sales, also collaterally improving the relationship between sales teams and customer service, which means that customers are happy.
An athlete can work to become a champion, and this can be measured by winning games, working against the clock, getting sponsorships, etc.
Everything can and should be measured to monitor progress session after session and to assess ultimate success.
In search of the best ROI formula, I have come up with an easy one, which may be useful for clients who are still pondering whether or not to start such a partnership.
The formula can be:
ROI = (Benefit of coaching – Cost of coaching) / Cost of coaching
As already mentioned, the benefit of coaching can and should be analysed and measured together with the coach for each project (e.g. for start-ups and small companies any possible impact on cash flow can be crucial).
Of course, feel free to leave your comments and contact me to build a business case together.
