While there are several ways to measure the impact of executive coaching, the first thing to point out is that not every ‘outcome’ can be measured in dollars. Ultimately, the ROI of any leadership development program is subjective, and outcomes need to be tied to goals, strategy and even culture.
That said, you can of course assess the impact that leadership coaching is having on your business by monitoring:
- Leadership effectiveness. While leadership assessments will help paint a clearer picture of any improvements in your leader’s capabilities and competencies, you should also be tracking whether they’re adopting the right habits. You can learn more about this here.
- Business and team outcomes. Are goals being met? Are projects being finished? Are teams contributing to organizational success? Are there good levels of psychological safety across the organization? Are employees engaged, motivated and being developed? Are there problems with individual managers?
It’s also important to remember that there’s also a cost to not investing in your leaders—inconsistent leadership styles, undervalued employees, high employee turnover and so on.