Extensive research has been carried out by the ICF into Return on Investment (ROI) from coaching. To find out more, visit the global research portal here: http://coachfederation.org/about/landing.cfm?ItemNumber=825&navItemNumber=624
How can the success of the coaching process be measured?
Measurement may be thought of in two distinct ways: external indicators of performance and internal indicators of success. Ideally, both are incorporated.
Examples of external measures include achievement of coaching goals established at the outset of the coaching relationship, increased income/revenue, obtaining a promotion, performance feedback that is obtained from a sample of the individual’s constituents (e.g., direct reports, colleagues, customers, boss, the manager him/herself), personal and/or business performance data (e.g., productivity, efficiency measures). The external measures selected should be things the individual is already measuring and has some ability to directly influence.
Examples of internal measures include self-scoring/self-validating assessments that can be administered initially and at regular intervals in the coaching process, changes in the individual’s self-awareness and awareness of others, shifts in thinking that create more effective actions, and shifts in one’s emotional state that inspire confidence.
Coaching brings a shift in corporate culture that increases productivity by changing it from command and control to collaboration and creativity. It helps close the gap between generations by increasing engagement and encouraging progress that benefits all parties involved. Leadership is strengthened; communication is enhanced; listening is fine-tuned; and the overall organization becomes more effective.
With those internal benefits come external benefits. According to the ICF Global Coaching Client Study, individual clients reported a median return on investment of 3.44 times their investment.
The news is even better for corporations. Companies that use or have used professional coaching for business reasons have a median return on investment of seven times their initial investment. With greater demands and fewer resources, some businesses are now asking themselves whether they can afford not to employ coaching.