Posts Tagged ‘Performance

03
Nov
09

The R.O.I. of Coaching, Consulting & Training


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Originally uploaded by N S R

If any seemingly “intangible service or program” that you are offering or purchasing promises an increase in productivity, customer service, product quality, sales or the like– measure it. If the service or program cannot promise results linked to business performance, reconsider it.

It is important to expose any fantasy related to the application of services such as coaching, consulting, and training.  Clearing out  delusions and examining motivation, supports accountability for both buyer and seller  — ensuring inspirational and truly powerful results.

All programs should produce a demonstrable increase in business performance that exceeds the cost of the program (Results – Cost)/Results = Return on Investment (R.O.I.).

Before the program begins, obtain a baseline number of the performance measures (e.g. productivity, customer satisfaction, employee retention, product quality, or sales). Only track a measure that is clearly linked to the overall success or profitability of the business.

Convert information such as customer and employee satisfaction scores into a dollar amount. Similarly, cost of the program can be translated into a “score.” The goal is to have two like numbers to use in the R.O.I. formula.

Determine how often the measure will be revisited. Immediately following the program and quarterly or semi-annually checkpoints are typically good.

Share and discuss the results to keep the door open for further inquiry into how the program can impact the performance measure.  Maintain effectiveness as the measure of truth.

Considering only the cost of a program is like a viticulturist paying more attention to the bottle than to the wine. When measurable results are integrated into program implementation, the delivery of substance over form is ensured.

This post is a retread of an article written under my non-pen name, Brenda Rarey ~ co-authored with Diana Petrochelli ~ published in the Houston Business Journal.

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