how to use the roi methodology in your team coaching engagements

© Copyright 2015 Team Coaching International & ROI Institute.

Presenter:Javier Carbajo, PCC

Team Coach & Facilitator

Moderator:George Johnson

Chief Executive Officer

How to Use the ROI Methodology in Your Team Coaching Engagements


What We’ll Cover Today> Business Alignment Conversation

> Benchmarking data in ROI

> Chain of impact of the ROI Methodology

> KPIs Examples

> Case Study Exec Coaching with Action Planning

> Q&A


Business Alignment & Forecasting

The ROI Methodology

Learning Needs

Preference Needs

Evaluation

Reaction

Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives

Application Objectives Performance Needs

Impact ObjectivesBusiness Needs

Payoff NeedsROI

Objectives

End HereStart Here

5

4

3

2

5

4

3

2

1 1

Initial Analysis

Input Needs 0 Input Objectives Input 0

Program

Business Alignment


Facilitating the Business Alignment Conversation…

1. Why is this an issue?

2. Who will support the team coaching?

3. Who will not support the team coaching?

4. Are there important intangible benefits?

5. Is this issue critical?

6. Is it possible to correct it?7. How much is it costing us?8. Are there multiple solutions?9. What happens if we do nothing?10. Is there a potential payoff

(positive ROI)?11. Is this issue linked with strategy?(From 10 Steps to Successful Business Alignment, Phillips)


MeasurementLevels

Measurement Category

CurrentStatus

Goal in 5 Years*

0 Inputs/Indicators — Number of programs, participants, costs, efficiencies

100% 100%

1 Reaction — Reaction and satisfaction with experience, content, value of program

100% 90-100%

2 Learning — Acquisition of knowledge, skill, information, awareness, insights

30-40% 60-80%

3 Application — Use of knowledge, skill, information, awareness, insights

10% 30%

4 Impact — Changes in business impact measures such as output, quality, time, engagement

5% 10-20%

5 ROI — Compares monetary benefits to cost of program, project, or initiative

1% 5-10%

*Target is based on typical number and variety of HR initiatives.

Measurement in Human Resources


Chain of Impact1. Reaction & Planned Action

2. Learning

3. Application & Implementation

4. Impact

5. ROI

Isolate the Effects of the Program

Intangible Benefits


> OUTPUT Completion rate Units produced Tons manufactured Items assembled New accounts generated Applications processed

> QUALITY Failure rates Waste Error rates Product defects Incidents

> COSTS Overhead costs Operating costs Turnover costs Program cost savings Accident costs

> TIME Cycle time Overtime On-time shipments Processing time

Examples of KPIs for ROI


Case: Healthcare

If we want to convert patient satisfaction to money we will have to rely on internal experts or better to find an industry study that shows how does it convert to money in this industry

Patients seen per team member per day can easily be translated into money with internal experts


Key Tool for ROI: Action Planning


Completed Action Plan


Method> Control Groups> Trend Line Analysis> Forecasting Methods> Participant Estimates> Manager Estimates> Expert Input> Customer Input

Isolating Program Techniques Effects most used by ROI practitioners

Benchmarking Data

0%

10%

20%

30%

40%

50%

60%

1 2 3 4 5 6 7 8

32% 29%

5%

55%

37%

11% 13% 11%


Actual Data Reported — Business Impact from Coaching


Total Benefits Total Costs

Calculating ROI


Criteria for Selecting Programs for Level 4 & Level 5 EvaluationBenchmarking

Life cycle of the program 14%Linkage of program to operational goals & issues 29%Importance of program to strategic objectives 50%Executive interest in the evaluation 48%Cost of the program 52%Visibility of the program 45%Size of target audience 6%Investment of time required 7%


Questions?


Thank [email protected]

how to use the roi methodology in your team coaching engagements

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