In my practice, for a simplified example, I use (at the micro-level) a specific KPI (achieved 5% in sales growth, which could translate into net profit of USD 50K).

If the coachee achieved say 4%, that would translate into USD 40K. So an investment of the coaching cost is USD 10K i.e. the ROI in coaching for this specific KPI results in a USD 30K surplus.

Of course in practice, we work out with the client’s accountant on the ‘components’ and calculation formulas prior to the coaching contract (apologies as I am not at liberty to discuss in detail).

Are there other ways of calculating coaching ROI that is practiced differently to share?

I am intrigued by your article on the effectiveness of executive coaching. As an exec coach myself, I am familiar with the older studies reporting on its benefits and ROI.

This more recent study interest me, and I wonder what research they have done, if any, on benefits; or, if their investigation was primarily on the methods of evaluation.

Thank you,
Josef S. Klus, CPCC
JSK Coaching Associates