When it comes to measuring the value of coaching, the most common approach is to calculate the return on investment (ROI). However, this can be difficult to quantify when the focus is on a company's culture. A better approach is to use the three-letter acronym ROE for Return on Expectations. This not only provides feedback to the coach, but it also helps identify the success factors of executive coaching and allows companies to improve future training initiatives.
The key performance indicators (KPIs) will vary from organization to organization, but they will help define the effect that coaching has on achieving objectives and reinforcing values and the overall mission. Coaching programs can be very effective in optimizing company culture, and even more so when you can show specific contributions and improvements. Establishing a coaching relationship has been shown to improve work performance, develop effective communication skills, and most importantly, reinforce positive self-perception (or increase confidence). For successful coaching initiatives, leaders must align training activities with specific strategic objectives.
Coaching can have a significant impact on professional progress, especially when there is real commitment. Anecdotal evidence is probably the most common way of judging the success of a coaching intervention, although it is not very scientific. Surveys have revealed that 77% of respondents attributed their retention or that of their team members to coaching. The measurement of coaching ROE includes a self-evaluation for each participant to rate their ability to achieve identified objectives such as work performance, communication and adaptability.
The challenge is to clearly identify the benefits achieved through the training program and assign a monetary value to them. For example, training can help executives improve their strategic use of time through greater delegation of responsibilities. Surveys can also help calculate the retention rate for all training participants, along with the overall return on investment. Calculating the return on expectations (ROE) depends on linking coaching to specific metrics and desired results that are important to each organization.