# VICTORY

Return on Investment

from Coaching

 Indicator of impact Estimated annual monetary value of performance improvement Estimated percentage of improvement due to coaching Percentage of confidence in this estimation Value Introductions of web-based system to report orders 25 000 100% 75% 18 750 Increased ability to set motivating sales targets for team 235 000 50% 75% 88 125 Reduced meeting time 30 000 80% 60% 14 400 Introduction of a new incentive system 180 000 100% 80% 144 000 TOTAL (benefits) 265 275

Before giving you the algorithm of calculation the investment return from coaching, let me mention that the average benefit from it is usually 600%-1000% in accordance with the Lore International Institute (US). It means that 1 dollar invested in coaching will generate you 6-10 dollars of income.

Worthy, isn’t it?

If you like the numbers the way I do and would like to have some more detailed data, let me share the formula developed by the abovementioned Institute on how this return of investment (ROI) is calculated:

ROI = ((Benefits – Cost of coaching) / Cost of coaching) x 100

The benefits will be the sum of all chosen indicators of impact (monetary values, of course) multiplied by estimated percentage of improvement due to coaching and multiplied by the percentage of confidence in each estimation. Example by the coaching company from the UK, which has developed a special non-standard coaching program for a sales company and charged for it 35 000 GBP (all amounts are in pounds):

ROI = (265 275 – 35 000) / 35 000 x 100 = 658% - IMPRESSIVE!