A big problem with the business coaching and mentoring sector is that there’s no regulation. This means that anybody can be a business coach or mentor without having run a business or even understand the difference between what a coach and a mentor is (rolls eyes).
Whilst they are of course free to do as they wish because of the lack of regulation, it often creates two fundamental problems:
- They do not and rarely have the ability to deliver ROI
- It damages the credibility of the good ones who can and do deliver ROI
One misconception about business coaching and mentoring I hear is that impact can or should be judged by improvement to the bottom line.
The Association of Business Mentors’ research, released late 2024, shows us a different story. The benefits are real, measurable, and wide-ranging, but only if we first define what matters most to the mentee.
The numbers tell a compelling tale of what quality professional business mentoring delivers:
- 65% of business leaders said mentoring directly boosted revenues
- 64% reported increases in profits
- 63% saw growth in headcount
- 72% said mentoring improved their mental health and confidence
Clearly, mentoring is not just about turnover or job creation, it’s also about improving resilience, wellbeing, and leadership confidence – all much needed in the current climate.
The crucial point being that what gets measured depends on what gets agreed at the start.
Every business leader begins a coaching or mentoring relationship for different reasons with different objectives. For some, it’s growth and financial ROI. For others, it’s tackling specific challenges, building strategy, or even finding lifestyle balance.
That’s why one of the most powerful steps at the outset of any intervention is to sit down, agree clear goals, and set meaningful KPIs. When both mentor and mentee are aligned on outcomes, progress can be tracked, impact can be demonstrated, and the return on investment is unmistakable.
The research report shows that professional mentoring can deliver results. But if we want those results to be felt as widely as possible, we must continue raising awareness, breaking down barriers. Most importantly we must make sure that every mentoring journey starts with clarity of purpose.
Cookie cutter coaches and mentors often don’t agree KPIs due to lack of understanding or hiding away from delivering what is expected. This is not good for the reputation of the coach/ mentor. It’s also not good for the financial situation or mental wellbeing of the business owner forking out their hard earned cash.
When it comes to coaching and mentoring, success is never one-size-fits-all. Every client, every situation and every expectation of what and when is unique. It’s about defining the right goals, measuring the right things, and achieving impact that truly matters to the business and its leader.
Here is a simple KPI checklist for both sides to follow:
- Define priorities – Is the focus growth, resilience, strategy, wellbeing, or a mix?
- Agree measurable outcomes – Revenue, profit, headcount, confidence, or other clear indicators
- Set milestones – Break big goals into achievable stages for easier tracking – weekly, monthly, quarterly and annually
- Review regularly – Check progress at agreed intervals and adapt the plans as necessary
- Capture both numbers and narratives – Success is financial and personal
By following this simple checklist as a business owner, and ensure you engage a skilled, qualified and experienced coach or mentor, you will get demonstrable ROI. If you don’t you won’t.
Following this process gives me the confidence to offer a full money back guarantee to my clients so long as they do the work. If your coach or mentor isn’t offering a guarantee, ask yourself why not.
Check out the ABM report here.
What are the KPIs you would want to focus on to get clear ROI?
