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In this blog, Rod Bulmer highlights why and how we track executive coaching services against objectives and not ROI.
We often get asked whether we measure the ROI on coaching interventions. The simple answer is that we don't, not because it is unimportant, but because it is almost impossible to link specific outcomes exclusively to the coaching intervention.
However, we are clear on two things.
Firstly, suitable coaching interventions have a very high ROI. McKinsey's September 2023 research shows, "Coaching boosts productivity and innovation. When you sum the benefits, you get a clearer idea of the ROI, which, based on our research and analysis, can be anywhere from five to 20 times depending on the use case."
Secondly, setting clear and measurable objectives is crucial to a successful coaching intervention and ongoing relationship.
Coaching objectives serve as guiding principles, ensuring alignment between you and your Hedgehog coach on the achievements you are aiming for. They provide clarity, direction, and measurable outcomes, helping to focus efforts and track progress effectively. They act as the motivation and help establish a framework for the coaching relationship, ensuring that you and your coach are working towards specific goals that address your needs and aspirations.
The Hedgehog Approach
We use a 5-step approach to objective setting.
Step 1 - Client to Frame their Ambition
Your Ambition acts as inspiration- the juice has to be worth the squeeze. It has to be stretching but also achievable, and timescales need to be framed.
Step 2 - Identify current gaps in achieving Ambition
A clear understanding of gaps is critical and requires a skilled coach to ask the right questions and drill down to the reality of the actual answer.
Honesty is critical (there is no point lying to yourself here!), and this should be a safe space where there is no need for a "carefully constructed narrative". Rather, this is where being brutally honest with yourself will ultimately reap benefits. Very often, this is done individually but will also involve a tripartite session with the line manager facilitated by your Hedgehog coach, who will carefully drill down where there are any areas of disagreement.
Step 3 - Agree on the 'From: To' Transition Statements
These statements capture what good would look like—they provide a future-state look at the outcomes we are aiming for. Based on reality, your Hedgehog coach will challenge you as they need to and give a picture of aggregate success. No BS allowed here!
Step 4 - Agree Coaching Objectives
Arguably, this is the most crucial part of the process, and with steps 1-3, the quality of the objective setting is maintained. Your coach will ensure the objectives link to the Ambition and agreed gaps - there is no point in focusing on something that will not move you to where you want to be. We try to make the objective SMART.
Your coach will also remind you that coaching is only one part of the development mix, and combining all development activities produces breakthrough outcomes.
Step 5 - Ongoing Objective Management
Wherever possible, your coach will reference one or more of the agreed objectives at each coaching intervention, some objectives can be addressed quickly, whereas others are about building ongoing momentum.
Some clients have a fixed number of sessions booked, whereas others have an open-ended contract. In any circumstance, we formally review progress and reset objectives on a six-monthly basis if required. Six months gives sufficient time to see progress and is timely enough to ensure we can correct and refresh Ambitions and Objectives.
So, we don't try to measure ROI artificially. We set clear and measurable objectives framed against a clearly understood Ambition. We make sure every intervention is about making progress against these objectives. We do this in a safe space where clients can be liberated from the narrative they need to tell. We KNOW that when we do this well, our ROI is so strong that it is not as debate a client needs to have.
Contact Rod on rod@hedgehogstrategy.com if you can benefit from our executive 1-2-1 coaching services.