How to Calculate ROI on Coaching - by Michael Synk - #GetInSynk

Can ROI (Return on Investment) be calculated when it comes to coaching? It’s important to me for my clients to get a tangible return on their investment in my services. Therefore, I have an annual Return on Coaching meeting with my clients. Sometimes, we have a ROC meeting more often if the value I’m providing isn’t crystal clear. It keeps me honest and keeps our relationship healthy.

Mathematically, ROI on coaching is easy to calculate.

You take the fees invested in coaching for the time spent coaching and divide that into improvement achieved measured in Revenue or Gross Profit or Net Profit for the same period. I recently calculated this for a client I’ve been coaching for about two and half years. I did the back-of-the envelope math and realized my client reaped a 5371% ROI from my coaching. Pretty damn good, right?

However, doing the same calculation a year and half earlier, after only working with the company for the first year, the number came out as zero. Even though we had successfully attacked and overcome so many obstacles and opportunities, the improvement in revenue and profitability was totally flat. We were rebuilding the business. Although we had turned the company around, the payoff was still to come. The math calculation made no sense.

Why keep going after a questionable math calculation?

To make sure the coaching was working and paying off, we listed all the accomplishments and initiatives we had worked on. They were then scored from 1-5 based on impact upon the company.  This confirmed that momentum was building, and it was good to continue the investment in coaching. The payoff for all the coaching in the first year started coming to fruition and resulted in the 5371% ROI listed above. Our work in the past year a half is building on all of that. I can’t wait to do the math next fall.

Return on Investment when it comes to coaching, whether you calculate it mathematically or with a scorecard, should be looked at regularly to make sure your coach is delivering.

I’m proud to say that I’m regularly delivering a healthy ROI on my coaching.

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