Your coaching business case - benefits and costs
What does executive coaching? Your coaching should have a positive business case. Take a look at the benefits and cost drivers below. Reflecting on the benefits of eliminating your issue and comparing this with the cost is a healthy exercise to do
The coaching business case
The benefit of the resolved issue - a recurring benefit
The problem/issue you want to resolve has a benefit. The benefit can be a positive number, e.g., the possibility to make a next step with increased revenue. The problem/issue may also be about cost avoidance. Examples can be the risk of losing your job or an indirect cost in terms of stress and pain in your actual role and the risk of losing your employment. It may also be non-financial such as frustration, anger, fear of the future, disinterest in what you are doing. Take a minute to think what could happen if your problem is resolved.
To calculate your business case, take the costs you estimated and bring them to one number. Let’s call these the "BENEFITS". Before you continue, it pays off to check if the underlying problem will go away by itself .... if it does, stop right here, be patient until it goes away. On the other side If you think the problem will stay or as it often does increase over time, then consider this and adjust the “BENEFITS" if necessary. The "BENEFITS" are typically recurring, i.e., the benefit from the removed issue remains and continues over time.
The cost of coaching - a one off cost
On the cost side there are two costs. One is the cost of your time. This is an important element as you will need to take to work with the coach and then implement what both of you have concluded on. For simplicity reasons I suggest you to focus on your time with the coach. For the duration see below. Calculate these costs and add them as one element to "COACHINGCOST".
The cost of the coach is typically based on an hourly basis. These costs vary considerably as do the profiles of the coaches. Make the coach-profile match to your needs. More on criteria for selecting coaches go to coaching.
In my case the cost of coaching is CHF 500.00/ h & VAT. The typical duration would start from understanding your situation, clarifying it with you, developing solution options, implementing them, review the effectiveness and adjust if appropriate.
The duration for such a coaching is typically between 5 and 8 sessions of 1.5 h each. So therefore, including VAT from CHF 4100.00 to CHF 6500.00. Add these as a second element to "COACHINGCOST"
Your business case. The formula is simple: "BENEFITS" / "COACHINGCOST”. The positive number should give you the comfort, that it is worth the try. It can even help you to realise that you should be doing something about it.
A negative number shows that the cost is higher than your benefit. In this case it does not look like it’s worth it to invest your time and money to do something about it. If you are in doubt, take the opportunity of the free first session and we can clarify this together.
Most cases show a 2-to-3-digit positive number.
With this information you know that it is important do to something about it. Just get over the uncomfortable feeling of the first step and contact me to get to the first free evaluation meeting. I am looking forward to hear from you.
