Return on Investment
If an organisation decides to invest in a coaching programme, it is good practice to ensure that the effectiveness of coaching is evaluated. Return on Investment (ROI) is the straightforward ratio of money made (or saved) divided by the cost of the activity.
Technique Overview
Return on Investment Definition
Return on Investment (ROI) is the ratio of money made (or saved) divided by the cost of the activity. Most of the costs associated with coaching include coach’s fees, additional expenses (travel, room) in addition, if the coach is an internal member of staff costs may also include time out of their day job. The formula for calculating ROI involves subtracting the costs of coaching from the estimated value of the outcomes of coaching, and expressing this as a percentage ([estimated coaching benefits – costs of coaching / costs of coaching] x 100%) (Stobierski, 2020).
Return on Investment Description *
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Business Evidence
Strengths, weaknesses and examples of Return on Investment *
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Business Application
Implementation, success factors and measures of Return on Investment *
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Professional Tools
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Further Reading
Return on Investment web and print resources *
Return on Investment references (4 of up to 20) *
- Anderson, M. C. (2008). What ROI studies of executive coaching tell us. Retrieved from http:// www.linkageinc.com/thinking/linkageleader/Documents/Merrill_C_Anderson_What_ROI_ Studies_of_Executive_Coaching_Tell_Us_1004.pdf https://gvasuccess.com/articles/ExetutiveBriefing.pdf
- Corporate Leadership Council. (2003). Maximizing returns on professional executive coaching. Washington, DC: Corporate Leadership Council.
- De Meuse, Kenneth P., Dai, Guangrong and Lee, Robert J.(2009)'Evaluating the effectiveness of executive coaching: beyond ROI?', Coaching: An International Journal of Theory, Research and Practice. 2 (2). pp. 117–134.
- Edwards, L., Phillips, J.J. and Phillips, P.P. (2012) Measuring the success of coaching: A step-by-step guide for measuring impact and calculating ROI. Association for Talent Development.
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