ROI or VOI?by Bronwyn Bowery-Ireland
In the last several issues of Business Coaching Worldwide, I have shared some models that are currently used to measure the ROI of business and executive coaching. At this stage, rather than present another model, I would like to create a little debate and discussion around ROI in general and how coaches are using ROI models.
I often hear coaches say, "Why should we use an ROI model to measure coaching at all?" This is a pretty good question. ROI was a '60s response to the need to measure the effectiveness of training and its impact on corporations' bottom lines.
But coaching is very different from training. Coaching is client-centered, client-directed, and client-focused. There is no formal training plan set in place. Trainers, on the other hand, teach new skills and determine the particular training methodology to be used. ROI justifies the training by showing a direct link between the training and resulting improvements in employee productivity—and thus the bottom line.
source: Business Coaching Worldwide winter issue 2006
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