Long-Term exceptional performance

Rapid, accurate self-correction

Continual, competent self-generation

Example ROI Calculation

Personal Productivity

Jim finds that as a result of his coaching he is better able to set priorities and to delegate. He feels that he has gained somewhere between 30 - 60 minutes of productive time per day. To begin determining the return on the investment Jim's company made in his coaching:

1. Determine the total annualized monetary benefit.

  • Use the lower end of the range that Jim provided: 1/2 hour per day, or 2 1/2 hours per week.
  • Use the actual fully loaded cost per hour for Jim's employment, if known. In this case, use $75.
  • Use 48 weeks to account for time away from work.
2.5 hours x $75 per hour x 48 weeks = $9,000

2. Isolate the effect coaching had on Jim's increased productivity:

  • Jim estimated that 80% of this improvement was due to coaching. He was 70% confident in his assessment.
$9,000 x 80% x 70% = $5,040

3. Add $5,040 to the benefits pool.

 

 

Increased Team Productivity

Jim has four direct reports. He finds that his improved ability to delegate clearly, to obtain buy-in and to ensure comprehension has helped his reports become more effective. They are better able to focus their efforts, they waste less time tracking down information that turns out to be superfluous, and their interactions with Jim and with each other cover more ground more quickly. Jim feels that each of his direct reports have gained between 2 and 4 hours of productive time each week. To continue determining the ROI on Jim's coaching:

1. Determine the annualized monetary benefit.

  • Use the lower end of the range Jim provided: 2 hours per week.
  • Use the fully loaded cost per hour for his reports: $55.
  • Use 48 weeks to account for time away from work.
2 hours x 4 reports x $55 per hour x 48 weeks = $21,120

2. Isolate the effect coaching had on the productivity of Jim's team:

  • Jim estimated that 65% of this improvement was due to his coaching, and was 90% confident in his assessment.
$21,120 x 65% x 90% = $12,355

3. Add $12,355 to the benefits pool.

 

 

Calculate the ROI

To calculate the ROI Jim's firm received on investment they made in his coaching:

ROI = [($5,040 + $12,355) - $4,250] / $4,250
ROI = $13,145/$4250
ROI = 309%