What if someone asked you:

“What’s the return of investment of giving paid vacation time?”

It’s obvious that this is not a very fair question. Recharging does not directly generate revenue and ROI. Yet, the connection, while indirect, is clear to us.

This short is about how how coaching works in a very similar way.

And I offer a better question than asking for just ROI!

“So what’s the ROI of Coaching?”

It’s a very common question.

I argue here that this is NOT a good question, as it comes with the built-in assumption that Coaching would generate direct ROI. It does not. Let’s be real here. No one goes out of a coaching session with more revenue than they entered it.

However, what good coaching does is that the coachee has a spark of insight and motivating ideas that they run to implement. Which in turn leads to higher performance and company success, including revenue.

When we try to evaluate the direct ROI of coaching, we measure against something it cannot directly deliver.

Here’s a better Question!

“What is the ROE of Coaching?”

ROE is the ‘Return on Expectations’

And what are expectations towards coaching that it is designed to deliver?

⚈ a sustainable change in behaviour

⚈ stronger confidence to move forward autonomously

⚈ the clarity on what decision to take

⚈ a eureka moment on a long-standing challenge

Coaching is a fantastic tool to deliver on such expectations and sponsors/clients should absolutely expect strong returns on their expectations.

Let’s make sure we measure against what an intervention can actually deliver!

Maik