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Kirkpatrick
                                                                  May 19, 2010




          Level 1      Level 2                                                                                             Identify
                                                                                                                           Cost of
                                                                                                                           Training
360°         Coaching &              Executive            Executive        Executive
             Mentoring               Coaching             Coaching         Coaching
                                                                                       Level 4

                                                                                                           Monetary        Calculate
                                                                                       Data                Value           ROI
                       1 Month              1 Month               1 Month              Analysis
                       Application          Application           Application                              Business
                                                                                                                            Level 5
                                                                                                           Impact


                                           Level 3
                                                                                                 Operational          Management
                                           360° Behavioral
                                           Measurement

                                                                                                                             Results


Fig 2 : ROI model on Coaching and Mentoring Training Process




                                                 Page 1
Kirkpatrick
                                               May 19, 2010

Basic Concept of ROI

After the data have been collected and analyzed for isolation and conversion, all that remains to
calculate the benefit-cost ration (BCR) and return on investment (ROI) is to apply the benefits to the
numerator of the formula and compare it to fully loaded costs of the program.

The formula for benefits-cost ratio is stated as

                                         BCR = Benefits / Costs

The ROI Formula is:
                                         ROI = (Net Benefits / Costs) x 100 =
                                         XX %


Example : What is Return on Investment on Mentoring?

The ROI for mentoring can be calculated using various methods, and a return for the investment can be
found in numerous locations in the organization. An ideal way to look for ROI related to mentoring is to
look at mentees, mentors and the organization.
• Mentees – ROI can be calculated through skill and knowledge development that directly impacts
productivity.
• Mentors – ROI can be calculated through the sharing of knowledge and expertise.
• Organization – ROI can be calculated through retention, attracting talent, saving on training and
development costs, and creating a competitive work environment.




                                                   Page 2

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Kirkpatrick roi

  • 1. Kirkpatrick May 19, 2010 Level 1 Level 2 Identify Cost of Training 360° Coaching & Executive Executive Executive Mentoring Coaching Coaching Coaching Level 4 Monetary Calculate Data Value ROI 1 Month 1 Month 1 Month Analysis Application Application Application Business Level 5 Impact Level 3 Operational Management 360° Behavioral Measurement Results Fig 2 : ROI model on Coaching and Mentoring Training Process Page 1
  • 2. Kirkpatrick May 19, 2010 Basic Concept of ROI After the data have been collected and analyzed for isolation and conversion, all that remains to calculate the benefit-cost ration (BCR) and return on investment (ROI) is to apply the benefits to the numerator of the formula and compare it to fully loaded costs of the program. The formula for benefits-cost ratio is stated as BCR = Benefits / Costs The ROI Formula is: ROI = (Net Benefits / Costs) x 100 = XX % Example : What is Return on Investment on Mentoring? The ROI for mentoring can be calculated using various methods, and a return for the investment can be found in numerous locations in the organization. An ideal way to look for ROI related to mentoring is to look at mentees, mentors and the organization. • Mentees – ROI can be calculated through skill and knowledge development that directly impacts productivity. • Mentors – ROI can be calculated through the sharing of knowledge and expertise. • Organization – ROI can be calculated through retention, attracting talent, saving on training and development costs, and creating a competitive work environment. Page 2