When it comes to measuring the value of coaching, Return on Investment (ROI) is often the go-to metric. However, it can be difficult to quantify when the object of measurement is the culture of a company. Instead, focusing on Return on Expectations (ROE) may have more impact. ROE is a three-letter acronym that measures the success of coaching by linking it to specific, relevant metrics and desired outcomes that are important to each organization.
Pre- and post-workout evaluations are an effective way to measure training ROI. Pre-evaluations involve gathering information about an employee's strengths and needs, how they are perceived, and what they need to do to achieve a higher level of performance. These feedback can be collected in a variety of ways, including automated online surveys or one-on-one interviews. Companies that combine coaching with training can increase company productivity by more than 80%.
It's important for organizations to create a plan to provide career guidance to employees and make it accessible and easy to participate. It could be as simple as giving your team confidence, and if there are listening skills or powerful question-asking skills you learn during training sessions, make sure to pass them on to your subordinates or teammates. Talking in the hallways or around the coffee shop about changes in executive performance or sharing ideas about your own coaching experiences can have a greater impact on a company's conclusion on coaching effectiveness than any formal analysis or survey. The Ohio-based organization retained dozens of leaders and saved several million dollars over the past decade through two separate training programs to address monumental employee growth and CEO transition.
The organization attributes coaching to increasing patient productivity, from treating 32,000 patients a year to 55,000 in two years. A similar percentage attributed coaching to their decision or that of their team members to stay with the company. The Ohio-based organization launched a training program to streamline the onboarding of new leaders as the organization went from hundreds of employees to thousands. After several years of measuring the success of coaching, the company has enough data to demonstrate that successful coaching leads to the creation of financial value. It's important for organizations to create a plan to provide career guidance and make it accessible and easy for employees to participate.
Demonstrating how coaching can act as a muscle to achieve strategic objectives can make the difference between considering such an initiative and making it a lasting part of your company's culture.