Capturing the ROI of Coaching Worksheet

К оглавлению
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 
119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 
136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 
153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 
170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 
187 188 189 190 191 192 

Instructions: This worksheet is designed to serve as an interview guide for evaluators to

assist coaching clients in evaluating the monetary impact of coaching they have received.

The ROI may be calculated for each client. Data from all clients are combined to

determine the ROI for the entire coaching initiative.

1. Describe the performance improvements you have realized as a result of coaching.

I have really been able to focus my sales team on the right sales opportunities.

Before, many salespeople were struggling with opportunities that, while potentially

very big, seemed like a lot of work and went nowhere. I provided the team with an

approach to decision making that focused us on the right opportunities and got big

results.

2. Identify the potential sources of impact of these improvements. (Please check all that

apply.):

a. Increasing your personal productivity ___________

b. Increasing the productivity of your work group X

c. Increasing sales X

d. Reducing cost ___________

e. Increasing product quality ___________

f. Reducing cycle time ___________

3. For each item checked above, please complete one of the benefits calculations on the

following page. Use one letter code for each response. Identify currency used in the

analysis: US Dollars

Determine/use the standard values of the client organization. If these are not known

or available, use the following values in calculating the monetary benefits. If the

benefits are not in $US, then convert the values to the appropriate currency. All

benefits must be recorded in annualized numbers (i.e., a benefit that is recorded in

monthly terms will be multiplied by 10.5 months to get to the annualized number).

Compensation rate = $75 USD

Hours per week = 40 hours

Weeks per year = 46 weeks

Months per year = 10.5 months

Sales margins = 20%

Cost of money = 10%

percentage of this amount that resulted from coaching and (2) the

percent confidence of the estimate. These two factors—attribution

and confidence—represent the way the monetary benefits are isolated.

Specifically, the respondent said that he attributed 60 percent

of the $750 to his coaching and that he was 50 percent confident in

this estimate. Multiplying $750 ¥ 60% ¥ 50% = $225.

ROI calculations always deal with annualized benefits. Therefore,

the weekly amount of $225 must be annualized. This is done by

Figure 12.5 Continued

Benefit Calculations: Please describe the benefit in the left margin.

Letter Estimate Monetary Estimate % of State Confidence

Code Value of Improvement in This Estimate (on a

Performance Due to Percentage Basis:

Improvement Coaching 0% = No Confidence;

100% = High Confidence)

B $ 750_________ ¥ 60___ % ¥ 50___ % = $ _225______

Based Daily Est. Monetary

On: Weekly Benefit

Circle Monthly ¥ ( 46 weeks ) = $10,350

One Quarterly Annualizing multiplier Annualized benefit

Yearly

Letter Estimate Monetary Estimate % of State Confidence

Code Value of Improvement in This Estimate (on a

Performance Due to Percentage Basis:

Improvement Coaching 0% = No Confidence;

100% = High Confidence)

C $ 10,000______ ¥ 60___ % ¥ 50___ % = $ _3000______

Based Daily Est. Monetary

On: Weekly Benefit

Circle Monthly ¥ ( 10.5 months ) = $31,500

One Quarterly Annualizing multiplier Annualized benefit

Yearly

4. Determine the cost of the coaching.

$12,000 Professional fees

1,500 Cost of client’s time to participate in coaching (hours ¥ $75 or standard value)

800 Materials and assessment

2,000 Travel expenses

200 Telecommunications

2,300 Administration costs (includes cost of evaluation)

= $18,800 TOTAL

5. Calculate the ROI.

Tally the annualized benefits (A through F) = $ 41,850

Enter the values into the formula:

ROI = ((Benefits - Cost) / Cost) ¥ 100

ROI = (($41,850 - $18,800) / $18,800) ¥ 100 = 123%

6. Identify the intangible benefits.

a. Improved teamwork and collaboration

b. Enhanced leadership skills of the sales manager

c. Improved productivity of the sales support staff

d. Increased customer satisfaction

e. Increased employee satisfaction

1 hour/per 10 salespeople saved every week 60% due to coaching; 50% confident

Sales increase of $50,000/month ¥ 20% margins = $10,000

multiplying $225 ¥ 46 = $10,350. Therefore, the total isolated benefit

of team productivity for this respondent was $10,350.

Let’s turn now to the second source of benefits: sales increase. Sales

increased by $50,000 per month over a seven-month period (five

months of coaching and two months that had elapsed before the evaluation).

ROI calculations do not include total sales, but rather sales

net of the cost to produce sales; in other words, margins. The margin

for OptiCom solutions was 20 percent. Therefore, the $50,000 was

multiplied by 20 percent to produce $10,000 in monthly benefits.

Discounting this amount by the same attribution and confidence

factors produced a monthly isolated benefit of $3,000. Annualizing

this amount was done by multiplying $3,000 ¥ 10.5 months =

$31,500. Determining the total isolated benefits of the coaching for

this respondent was done by adding $10,350 + $31,500 = $41,850.

Let’s now turn to item 4 in the interview guide and determine the

cost of the coaching. The fully loaded cost of coaching includes

professional fees, opportunity costs (or the cost of the client’s time

to participate), materials, travel, telecommunications, administration,

and the cost of the evaluation. All of these costs combined for

this respondent were $18,800.

Item 5 shows how the ROI was calculated, given the benefits and

costs:

ROI = ((Benefits - Cost) Π Cost) ¥ 100

ROI = (($41,850 - $18,800) Π $18,800) ¥ 100 = 123%

Item 6 summarized the intangible benefits noted by the respondent.

These included improved teamwork and collaboration,

enhanced leadership skills of the sales manager, improved productivity

of the sales support staff, increased customer satisfaction, and

increased employee satisfaction. Some of these benefits could, in

fact, be explored further to see if these benefits could be converted

to monetary value. Improved productivity of the sales support staff,

for example, would seem to readily convert to monetary value. It’s

really a judgment call whether to do this. If the tally of monetary

benefits is great enough to demonstrate the value of coaching, then

there is little need to take the extra step to convert these additional

benefits.