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