12 May

What is the ROI for coaching?

An interesting question came up the other day. “By investing in coaching for your team members, how do you measure your return on investment? “ 

This is a really good question and it depends on the expectations of the person asking the question. If your business is looking for a quick result or wanting to get profits up with very little work, then implementing  a coaching programme within your business will not be the answer.

Coaching is not a quick fix and a coaching programme should never be started in a business if there is an expectation of a speedy outcome similar to that of a quickie month-end promo to boost sales.  If this is the case, then the coaching programme will fail as it has been implemented for the wrong reason. Coaching initiatives need to be given time, especially if it involves all team members within the business.

With a quick-turn-around-sales-boosting expectation in mind, some companies choose  not to implement coaching, as they say it doesn’t work. Sad and short-sighted.

So coming back to the original question. “By investing in  coaching for your team members, how do you measure your return on investment? “ 

The best way to answer this question is to provide you with some feedback from business owners and managers who have actually invested in their teams and therefore their business by implementing a coaching programme.

  1. Employee retention – Happy, focused and motivated employees don’t look for alternative employment. Engaged employees who understand what their role is and who understand that they are valued are focused on their tasks and looking for ways to move up within your business, not ways to move out of the business. These are loyal and driven individuals who you want on your team.

    If you want to talk costs, then think about this – If you are constantly employing, training and inducting new people into your business, it is costing you precious time and recruitment costs. Depending on the job, a new person can take up to 9 months to become 100% productive in their new position. I won’t get started on the negative impact it has on business morale when there is constant change of team dynamics going on, that’s for another blog post.

  2. Decrease in customer complaints – Happy, focused and motivated employees understand it is in their best interest to look after the customer. They understand  consequences to their actions. As complaints go down, we see compliments go up.
  3. Business image – You just need to look at the top companies to work for in the world. The best employees aspire to work for these companies and customers are attracted to do business with them due to the work ethic and energy of these businesses. These companies are also rated as the best companies to work for by their employees as they invest in the teams.

The net result of the above is that there is actually a financial benefit to coaching. With these solid foundations in place your bottom line will look after itself. Now that’s a great return on investment!

02 Mar

Your Business Cannot Run on Auto-Pilot

The other day I was sitting in a cafe, enjoying a cup of tea and finishing off some work. And watching the staff at work. Well, not quite.

The female server had decided it would be a good idea to fix up her appearance. So she had laid out her make up and hair equipment on the serving counter and proceeded to, with the assistance of the stainless steel coffee machine as her make-shift mirror, apply eyeliner, blush and a few other bits and pieces. Once all the brushes and paraphernalia were packed away she then started on her hair. While she was doing this she was chatting rather loudly to a fellow server behind the counter, oblivious to the world.

As I watched this play out in front of me, I looked around the cafe. Some of the tables were dirty. The chairs were not placed neatly and there was rubbish lying on the floors.

What’s wrong with this picture?

As I sat there wondering if there were any makeup products in my tea, I wondered how many other businesses are run like this? The obvious lack of self-awareness and self-management on behalf of the employees, and a lack of management, controls, procedures and systems. I wondered if this cafe would ever be as successful as it could be.

If you have your own business then don’t ever believe it can run successfully on auto-pilot. Why would you invest in a business and then not be involved?

Most people are in business to make money, and the customer/client is an important part of this financial success. Here are a few things to think about:

  1. If you are not able to be in the business everyday, then who is taking care of it? Who is looking after the customers/clients? Do you have a responsible manager in charge?
    1. Is this manager aware of the business standards and their position’s roles and responsibilities?
    2. How will you measure their performance?
  2. Are your team members aware of their roles, responsibilities and the business goals?
  3. Do you have a disciplinary code of conduct? What you can and cannot do in the business?
  4. When will you be checking in on the business? How would this be carried out?
  5. What external resources can you use to measure the businesse’s performance?
  6. Do you have an employee induction programme and training programme?
  7. Do you interview and hire your employees to fit your business culture?

To stay on track, meet and exceed your customers expectations and to be successful you need to include the correct oversight in your business.