Return on investment in executive coaching: a practical model for measuring ROI in organisations

Abstract

Research and anecdotal evidence suggest that the majority of organisations make no attempt to evaluate their investment in executive coaching services. Although a body of work espousing the value of financial return on investment (ROI) methodologies exists, few organisations appear to have faith in the value of these frameworks in persuading senior management as to the efficacy of coaching. This paper reports the findings of a survey conducted with purchasers of executive coaching services (purchasing clients) using a semi-structured interview. The survey was designed to explore how purchasing clients currently evaluate their investment in coaching. Using a grounded theory approach, a new model for evaluating investment in coaching services is presented. The new model places a primary emphasis on establishing the purpose of coaching, and on establishing an ongoing, formative approach to evaluation. The potential value of the new model to both organisations and executive coaches is discussed.

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