How To Know if Coaching is Worth the Investment
So your ROI formula would look like this:
(Value of Idea x Percent likelihood) - Cost of Coaching = Total Return
Cost of Coaching/Total Return from Coaching = ROI
Let’s say you choose the doubling revenue as your goal. It’s worth $250,000 to you. Given your past attempts, you feel that without support you have a 50% chance of succeeding. Your ROI on coaching then would be as follows:
(250,000 x 0.5) - 11,000.00 = 114,000.00
You invested $11,000 and made $114,000, or a 10% return on your coaching investment.
Of course these numbers are made up. We don’t know how much the coaching costs, how long you will retain your coach, and we haven’t calculated the unmeasurable impact of coaching: the increase in your Self Mastery, the transformation of your capacity to Be, Do and Have in all areas of your life.
But the formula works to set a framework.
You come into the coaching relationship with a Big Idea, one whose value you have determined for yourself.
You share that expectation with your coach, create a plan that is measurable. Even if the Idea doesn’t seem measurable, “I want to feel less stressed”, “I want to learn to communicate better”, “I want to be healthy and vibrant”, your coach can work with you to create an action plan with measurable signposts on both the inner and outer levels that lets you assess the progress that you’re making.
Rory Cohen is known as the Idea Implementation Coach. Her company, Entelekey, Inc., produces Take 10, a system for implementing Big Ideas. Rory is an implementation faculty/coach for international seminar leaders like Steve Harrison and Alex Mandossian. She blogs on implementation issues for entrepreneur.com and serves as a frequent media guest on national TV and radio, including Entrepreneur Magazine, SmartMoney Magazine and National Public Radio. If you have a great idea inside of you that you haven’t taken action on, visit her at www.take10now.com to find out how you can move forward at lightning speed in just 10 minutes a day.
Photo from Flickr
You might also find one of our other blog posts on Executive Coaching interesting.