Article Index

Example of Return on Investment Calculation (Executive Coaching):

Parameters:

1. 

Good relationship with employees:

15% of the improvement due to coaching
2. Making of difficult decisions:

15% of the improvement due to coaching

 
3. Communicating the vision clearly:

25% of the improvement due to coaching

4. Self-assessment of leadership skills: 20% of the improvement due to coaching

 

Average: 18,75 % of the improvement due to coaching

To put figures to this improvement the yearly salary of the executive is used for the calculation:

salary: 80.000 €
18,75% of salary:15.000 €

Coaching created an immaterial value of 15.000 €. The costs for the coaching were 2.500 €.

ROI is calculated:
(15.000€ - 2.500€)/2.500 = 500%

For more information, my examples for ROI can be downloaded here: Return on Investment.pdf

A case study on "Return on Investment of Executive Coching" can be found here:

http://www.coachfederation.org/includes/docs/053metrixglobal-coaching-roi-briefing.pdf