How to Measure ROI on Training and Coaching: Part 3

Part 3: Cost Prevention


Whilst we can sometimes demonstrate a direct link to profit or savings, we might also work on the principle that effective learning & development is a ‘cost prevention’. Coaching and training is often designed to solve a problem.


For example, consider the cost of an ineffective manager when it comes to demotivating staff and high staff turnover. With effective training and coaching, that manager is now capable of motivating and maintaining their staff. This would be a ‘cost prevention’.


To measure ROI this way, start by investigating the problem:

  • What is the problem?
  • How is this a problem to us?
  • How do we know it’s a problem?
  • What are the consequences of the problem?
  • What are the potential costs of the problem and its consequences?


If it is hard to pinpoint the problem, you might look to business in general. Type into a search engine “cost of…” followed by the problem you are seeking to solve, for example:

  • Cost of e.g. stress, mental health
  • Cost of poor (or bad or ineffective) e.g. management, project management, time management


Newspapers and reports from institutes/associations (e.g. CMI, CIPD) are often a source of interesting statistics. For example, the Daily Telegraph (14th April 2019) ran an article with the title: “Bad management ‘costs UK £19bn a year’” quoting a report from the CMI.


In the final article, we will exploring an approach to ROI called ‘Business Contribution’.


By Joe Cheal