When providing performance coaching services for an organization, showing a clear return on investment is crucial to securing buy-in from senior decision-makers. They want to see tangible proof that a coaching engagement is having an impact—not just in terms of employee engagement and satisfaction, but also on the company overall. What is the best way for a coach to measure and demonstrate that kind of ROI?
Below, Forbes Coaches Council members share strategies for showcasing the value of their work, from tracking key performance indicators to presenting compelling case studies. Whether a coach is new to organizational coaching or looking to refine their approach, these tips can help prove the true worth of coaching services to company leaders.
1. Establish A Baseline
Demonstrating ROI is vital to gaining decision-makers’ confidence. They’ll seek tangible proof that coaching drives measurable results. Conduct a comprehensive diagnostic using questions to identify areas for improvement and create a baseline. By regularly reviewing the metrics and showing incremental progress against the baseline, we can show the direct impact of the coaching, providing proof of the ROI. – Angela Sedran, The Business Growth Accelerator
2. Choose The Right Metrics To Monitor
Much thought, discovery and collaboration must occur in order to determine the best metrics to measure and monitor. Choose incorrectly, and the ability to prove success will be fleeting. In one case, we had to look at what data we could easily collect. An indirect metric was selected. It showed the employees’ propensity to do an activity, which in turn reflected the desired cultural shift. – Marti Evans, Propel
3. Design Reporting Protocols With The Client
ROI design is the key to proof, and design starts even before the engagement agreement is drafted, let alone signed. Design—with the client or sponsor—what will be measured, how and when it will be measured, and how it will be reported and to whom. In this way, reporting will be meaningful for the sponsor, and the ROI will actually be measurable. – David Taylor-Klaus, MCC, CPCC, DTK Coaching
4. Conduct ‘Before And After’ Studies
I will use an engagement study before the work begins and then another at the one-year mark to show the increases in employee engagement, which drives organizational KPIs. With some clients, I will tie my compensation to the KPIs, which ensures a positive ROI. – Gregg Frederick, G3 Development Group, Inc
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5. Start With The Desired Impact In Mind
Impact is where you start. What is the impact (outcome) you’re looking for? To demonstrate ROI, you have to start with the end in mind. After that, it’s about the milestones and changes in behavior that lead to the desired impact. Too many times, coaching starts off on the wrong foot. Setting goals and expectations up front can keep everyone focused and moving in the right direction. – Dr. Teresa Ray, PCC
6. Connect Tangible And Intangible Results
Depending on the goals set, there are tangible and intangible results. Tangible ones are related to numbers—the bottom line, increasing efficiency, operations, and so on. The intangible results are related to soft skills and can be measured based on algorithmic tests pre- and post-coaching. Connecting these to tangible results often leads to correlations between engagement and productivity (that is, numbers). – Olga Kiendler, OK Transformation
7. Agree On Which Activities To Change
You will fail if you do not start with a measurable outcome you are working toward. We look at the activities we want to have an impact on, and before we start anything, we agree on what we want people to do differently and gain agreement as to the desired impact of this change. We then assess current behaviors and activities, and then continually reassess to see that changes are happening and the impact on the business. – Mark Savinson, Strategy to Revenue
8. Identify Gaps In Leadership Behaviors
Before any engagement, I help my clients clarify what business results they need and what specific gaps in leadership behaviors are contributing to current performance. We then identify skills to focus on in coaching sessions with leaders and a timeline for seeing an impact on performance. – Katie Anderson, Katie Anderson Consulting
9. Track Pre- And Post-Coaching Productivity
Decision-makers can see ROI through improved employee productivity, which can be measured by tracking KPIs before and after coaching. Additionally, performance coaching often leads to higher employee engagement and retention rates, reducing turnover costs and the expense of recruiting and training new talent. – Curtis Odom, Prescient Strategists
10. Share Business Outcomes Reflecting Performance
When providing performance coaching, the ROI is generally reflected in business or performance outcomes. These might include increases in employee engagement, output of products or services, sales or customer engagement, along with decreases in absenteeism, turnover, quality and safety incidents, or shrinkage. – Jaclynn Robinson, Nine Muses Consulting, LLC
11. Co-Create Proof Of Impact With Stakeholders
Performance coaching outcomes, or proof of impact, are co-created at the beginning with the client, sponsor and HR business partner. Criteria are established to determine how success will be measured for each coaching goal. Qualitative observations from pre-selected third parties may be enough. Quantitative results are best tied to corporate key performance indicators that are selected in advance. – Gina Lavery, Gina Lavery Inc.
12. Create A Roadmap With SMART Goals
Performance coaching for an organization must be designed around a set of SMART measurable outcomes at the start of the engagement. When these are set and agreed upon, we have a clear roadmap of deliverables and can quantify what those mean in terms of the return on the investment. The metrics must be tracked and managed every 30 to 60 days with ongoing monitoring to ensure they never fall off track. – Erica McKenzie, Creative Brands & Concepts
13. Link Outcomes To Strategic Goals And Success Stories
Something I do is conduct regular impact assessments tied to specific business outcomes. I gather and present data on improved team collaboration, increased project success rates and enhanced leadership effectiveness. By linking coaching outcomes to strategic goals and showcasing success stories, I provide clear, compelling evidence of the coaching program’s value to the organization. – Kerri Sutey, Sutey Coaching & Consulting LLC
14. Present Data On OKRs And Participant Feedback
When implementing a coaching program, it’s crucial to define objectives such as boosting productivity, enhancing engagement or reducing turnover. To show progress, present data on objectives and key results that have improved due to coaching, along with participant feedback on better performance and morale. – Dr. Courtney L. Teague, CLT & Associates
15. Align On Mission-Critical Behaviors Up Front
The coach can show ROI for performance coaching by agreeing upon, aligning around and assessing the key behaviors that the company decision-makers deem mission-critical for success. ROI starts with the coaching agreement. – Karen Tracy, Dr. Karen A Tracy, LLC
16. Connect Coaching Wins To Hard Dollars
It doesn’t hurt to connect coaching to hard dollars—we show how a 10% boost in efficiency directly pumps $500,000 into the bottom line or slashes costly overtime. For extra flair, we create a predictive ROI model that teases out the future financial windfall if the program scales. This way, we prove impact and make it impossible for decision-makers to say anything but “yes.” – Alla Adam, Alla Adam Coaching