Key Takeaways
1. Coaching is a Maturing, High-Impact Development Tool.
Executive coaching is the one-to-one development of an organizational leader.
Explosive Growth. The executive coaching industry has experienced explosive growth, with an estimated 40,000 coaches worldwide and $1-2 billion in yearly revenues. This surge is driven by the accelerating pace of change, the intense "war for talent," and the effectiveness of 360-degree feedback, which often leads to coaching engagements. Coaching has evolved from remedial intervention to a strategic tool for high-potential leaders.
Unique Benefits. Coaching offers unparalleled individualized development without removing leaders from their work, fostering faster capability growth in areas traditional training might miss. Key benefits include:
- One-on-one focused development
- Specialized personal learning
- Confidentiality and personal accountability
- Faster development of individual capabilities
This personalized approach makes it a powerful alternative to traditional training programs, which often assume understanding translates directly to action.
Permanent Mainstay. Despite challenges like high costs and difficulty in measuring ROI, coaching is not a fad; 63% of organizations expect to increase its use, and 92% of coached leaders would hire one again. The "Wild West" era of coaching is being tamed by increasing understanding and best practices, solidifying its role as a permanent fixture in leadership development.
2. Culture and Leadership Support are Non-Negotiable for Coaching Success.
The most pervasive, yet perhaps the least appreciated dynamic in organizations is corporate culture.
Culture's Influence. An organization's culture profoundly impacts the success of coaching initiatives, guiding how development decisions are made and how coaching is perceived. In supportive cultures, development is natural, and coaching is seen as a positive benefit, often with leaders proudly seeking coaches. Conversely, in less supportive cultures, coaching can be secretive or viewed as a sign of trouble, undermining its effectiveness.
Gaining Support. For challenging cultures, strategic approaches are vital to introduce and embed coaching. This involves:
- Finding a path of least resistance, starting with receptive leaders or departments.
- Securing a high-profile executive sponsor to champion the effort.
- Introducing coaching as an add-on to existing, accepted training programs.
- Offering coaching to new leaders, who may be less resistant to the idea.
Over time, initial successes can help shift cultural perceptions and integrate coaching more deeply into the organization's fabric.
Leadership Endorsement. Senior leadership support is paramount, as their involvement and public endorsement set the tone for the entire organization. While many CEOs and executive team members receive coaching, a significant gap exists between receiving it and publicly endorsing it, suggesting a lingering stigma. Positioning coaching as an exclusive benefit for high-performers, rather than a remedial tool, can enhance its desirability and secure stronger leadership buy-in.
3. Strategic Alignment: Link Coaching to Leadership Development and Talent Management.
Coaching can be a strong supporter of both the who and the how of connecting leader development to an organization’s strategies and goals.
Integrated Strategy. For coaching to maximize its benefits, it must be clearly linked to an organization's leadership development (LD) strategy and talent management approach. The LD strategy defines how leaders are developed, often aligning with the 70/20/10 guideline (70% experience, 20% on-the-job, 10% formal training), where coaching fits into the 20%. This ensures coaching efforts are purposeful and contribute directly to executing business strategy.
Talent Management Connection. Linking coaching to talent management clarifies who should be coached and when, often targeting high-potential or high-performing leaders for retention and succession planning. While 96% of organizations link coaching to LD, only 71% link it to talent management, indicating a significant opportunity for improvement. This connection allows for:
- Determining eligible leaders and appropriate coaching intensity.
- Tailoring coaching topics to individual development plans (IDPs).
- Tracking coaching outcomes against succession planning profiles.
HR/LD's Pivotal Role. Internal HR and LD professionals are crucial in establishing program parameters, screening coaches, and ensuring coaching is the right intervention. They also play a vital, often underestimated, role throughout the engagement by:
- Assisting with coach matching and orientation.
- Reviewing development plans and checking in regularly.
- Providing coaches with essential background materials (360 results, culture surveys).
- Discouraging "management by proxy," where a boss uses a coach to deliver difficult performance feedback.
4. Effective Engagements Require Clear Preparation, Matching, and Structure.
Leaders told us that the match to their coach was one of the most important pieces of the process, if not the most important—especially for longer-term assignments.
Thorough Preparation. Preparing both the executive and their boss is crucial for a successful coaching engagement. Executives need clear guidance on the purpose, activities, and expected outcomes, understanding what coaching is and is not. The boss, as the assignment sponsor, must actively support the process, provide feedback, and review action plans, rather than being a passive observer.
The Art of Matching. A strong coach-leader match is paramount, fostering trust and openness. Best practices involve:
- HR/LD prescreening coaches and providing 2-3 tailored options.
- Allowing the leader to interview and select their preferred coach.
- Considering both personal chemistry and the coach's ability to challenge.
- Following up 3-4 weeks into the engagement to verify satisfaction and quickly address mismatches.
Leaders are less likely to blame a failed assignment on the coach if they participated in the selection.
Structured Engagement. While flexibility is important, a clear structure for the engagement is beneficial. Common durations are 6-12 months, with 12-18 months often needed for full behavioral change. Frequency typically ranges from weekly to monthly, with shorter, more frequent interactions often preferred for ongoing reinforcement. Key activities include:
- Jointly created action plans with clear objectives and metrics.
- Behavioral rehearsal/practice to apply new skills.
- Regular follow-up with key stakeholders for ongoing feedback.
- Daily metrics to track progress on specific behaviors.
5. Leverage a Diverse Toolbox of Assessments for Deeper Insights.
Prescription without diagnosis is malpractice.
Beyond the 360. While 360-degree feedback and stakeholder interviews are foundational for gathering broad quantitative and qualitative data on a leader's performance, they often only identify what needs improvement, not why or how. A diverse toolbox of assessments provides deeper insights into a leader's personal style, emotional intelligence, and underlying tendencies, connecting the dots between behavior and motivation.
Variety of Tools. Organizations should be open to a wider range of assessment tools, and coaches should be equipped to offer them. These can include:
- Leadership Skills: Emotional Intelligence (Hay Group, TalentSmart), Professional Dynametric Programs (PDP).
- Personality/Personal Style: Myers-Briggs (MBTI), DISC, SDI, Birkman Method, Hogan.
- Interests/Values: PIAV, Strong Interest Inventory.
These tools facilitate self-awareness, make discussing weaknesses easier, and provide value-neutral data.
Strategic Selection. The choice of instrument should be tailored to the leader's specific development needs, avoiding a one-size-fits-all approach. Organizations should establish clear policies on instrument use, ensuring they complement rather than compete with internal competency models. Providing coaches with a budget for additional tools and encouraging their training in diverse assessments can significantly enhance the diagnostic phase of coaching.
6. Balance Consistency with Flexibility in Program Design.
How important is it that a consistent process or methodology be followed in your organization’s approach to coaching?
The Consistency Dilemma. Organizations grapple with standardizing coaching across the company versus allowing for unique, flexible engagements. While consistency can ensure predictable quality and address measurement challenges, leaders and coaches often prioritize customization to individual needs. Approximately half of organizations value consistency, but a vocal minority appreciates the uniqueness of each engagement.
Elements of Control. Organizations can choose to control various aspects of their coaching programs to different degrees, ranging from low to high consistency:
- Initiation: Open access vs. centralized approval.
- Matching: Leader choice vs. HR/LD assignment.
- Process: Unique per assignment vs. standardized steps.
- Instruments: Coach discretion vs. approved list.
- Reporting: Not managed vs. regular progress reports.
- Outcome Measurement: Case-by-case vs. standardized metrics.
- Coach Screening: Local selection vs. corporate criteria.
- Costs: Individual negotiation vs. centralized management.
The decision often reflects the organization's broader tendency towards centralization or decentralization.
Practical Implementation. Even with a desire for flexibility, some basic consistency can be achieved through:
- Prescreened coach pools and preferred vendors.
- Internal coordination and a coaching management system.
- Clear milestones and milestone-based coach payments.
- Standardized assessment tools and action plan templates.
- Regular check-ins with leaders and written progress reports from coaches.
- Consistent metrics for evaluating assignment outcomes.
Examples like CalPERS (high consistency) and Johnson & Johnson (flexible framework across many operating companies) demonstrate varied successful approaches.
7. Cultivate Internal Coaching Capabilities and Leader-as-Coach Mindsets.
If imitation is the sincerest form of flattery, then the coaching field should feel honored.
Rise of Internal Coaching. Organizations are increasingly building internal coaching capabilities, driven by a desire to replicate external coaching's impact at a lower cost and leverage unique corporate culture understanding. While external coaches remain popular for C-level executives, internal coaches are often deployed for mid-managers and first-line supervisors. This trend signifies a growing respect for the coaching field's effectiveness.
Benefits and Challenges. Internal coaches offer distinct advantages:
- Lower cost and greater control over methods.
- Deeper understanding of organizational culture and politics.
- Increased exposure to leaders and scheduling flexibility.
However, they face challenges such as: - Managing time alongside other responsibilities.
- Perceptions of less confidentiality and credibility.
- Difficulty challenging higher management due to internal relationships.
- Limited exposure to diverse organizations and best practices.
Leader-as-Coach. Beyond formal internal coaching roles, there's a growing interest in teaching line leaders and supervisors to be better coaches themselves. Programs like Bell Canada's "Coaching Mastery" aim to instill advanced coaching skills in executives, fostering a more robust coaching culture. This approach enables just-in-time, daily coaching for performance management and task-specific issues, complementing the objective role of professional coaches.
8. Measure Impact Beyond Satisfaction to Prove Coaching's Value.
Can you measure coaching’s return on investment?
The Elusive ROI. Measuring the return on investment (ROI) for coaching remains the "holy grail" of the industry, a challenge many organizations desire but few fully achieve. While some programs rely on anecdotal evidence, larger investments increasingly demand quantifiable value. Surprisingly, leaders themselves are often less concerned with ROI than organizational practitioners, prioritizing personal satisfaction with the coaching experience.
Tiered Measurement Approaches. Organizations are urged to implement a range of metrics, even if full ROI is difficult:
- Level 1: Satisfaction. Basic coach satisfaction surveys, conducted early and regularly, provide immediate feedback and help identify mismatches.
- Level 3: Behavioral Impact. This involves assessing actual behavioral change. Methods include:
- Leader self-reports of effectiveness.
- Assessments from the coachee's manager.
- Follow-up 360-degree feedback or "mini-360s" focused on specific development areas.
- Level 4: Business Impact/ROI. While complex, some methods include:
- Leader estimates of coaching's financial impact on business metrics (e.g., productivity, retention, cost reduction).
- Calculating ROI based on improved retention of coached leaders.
Strategic Implementation. An independent party (internal finance, I/O psychologists, or external consultants) can conduct ROI surveys to ensure objectivity. Tools like Sony's "Friday 5s" demonstrate how technology can track learning goals, action plans, and estimated financial impact, linking leadership development directly to the bottom line. Even without perfect ROI, consistent measurement of satisfaction and behavioral change is crucial for program justification and continuous improvement.
9. Master the Art of Finding and Screening Qualified Coaches.
The real difficulty is locating and properly screening the most qualified coaches for their particular assignments.
Beyond Availability. While coaches are plentiful in most Western countries, the true challenge for organizations is identifying and screening the most qualified individuals for their specific executive coaching needs. Companies with established programs have refined criteria, but newcomers often struggle with where to begin.
Key Qualifications. Successful coaches possess a blend of foundational characteristics and preferred traits for specific assignments:
- Foundational: Strong interpersonal and communication skills, credibility, trustworthiness, objectivity, confidentiality, ability to give direct feedback, intelligence, integrity, and a solid coaching reputation.
- Preferred for Assignments: Personal chemistry with the leader, temperament, fit with organizational culture, industry experience, specific certifications/methodologies, mastery of instruments, specialization, and geographic location.
A background in a "people field" (e.g., psychology, HR) and prior business experience are often prerequisites.
Effective Sourcing and Screening. Organizations primarily find coaches through existing vendors (80%) and recommendations from other organizations (55%). Rigorous screening processes are essential, such as Unilever's three-stage assessment:
- Stage 1: Initial screening of biographical and technical data.
- Stage 2: Criteria-based interview focusing on key competencies.
- Stage 3: Full-day assessment including presentation, coaching demonstration, and final interview.
Certification, while debated, is generally less critical than proven qualification and experience in the corporate context.
10. Build a World-Class Coaching Community for Enhanced Effectiveness.
Build a community among your coaches; internal and external alike.
The Power of Community. Coaches, often working independently, deeply desire community for learning, sharing, and connection. Organizations that foster a "world-class coaching community" among their internal and external coaches reap significant benefits, including:
- Enhanced understanding of the company's culture and strategic changes.
- Improved coach effectiveness by incorporating company-specific learnings.
- Boosted coach loyalty and goodwill towards the organization.
- An objective, external perspective on internal dynamics.
This is a highly leverageable activity, yet often overlooked by organizations.
Connecting the Pool. Simple, yet effective methods for building community include:
- Regular Conference Calls: Monthly or quarterly calls covering company financials, news, coaching policies, common themes, and best practice sharing.
- Coach Gatherings: In-person forums at company sites, featuring executive presentations, facility tours, instrument certifications, and networking opportunities. Dell's Global Coaching Forum is a prime example.
- New Coach Orientation: Comprehensive programs (face-to-face, telephone, written) to integrate new coaches into the company's context and expectations.
- Coach-Support Web Sites: Centralized platforms for documentation, news, and resources, providing 24/7 access.
Developing Talent. In regions with coach shortages (e.g., China, India, Japan), organizations can proactively develop local coaching talent, mirroring their leader development strategies. This involves providing increasing levels of assignments, mentor coaching, and additional training/certifications. Understanding what motivates coaches—meaningful work, growth, connection, and alignment with their values—is key to attracting and retaining the most desirable talent.
11. Plan for "Life After Coaching" to Ensure Sustainable Change.
Is coaching really over when the contract expires?
Sustainable Impact. The benefits of coaching should extend far beyond the formal engagement period, with insights and new behaviors continuing to live on. Leaders should be equipped for "self-coaching," applying learned processes and information to their ongoing development. Coaches often maintain informal relationships with former clients, offering light, uncompensated support, which can be formalized into a "senior advisor" role with pre-negotiated compensation.
Renegotiating the Relationship. At the conclusion of an engagement, it's crucial to renegotiate the relationship. The leader needs to fully re-engage with their business responsibilities, integrating new behaviors, while the coach transitions to other assignments. However, the door for future, informal check-ins can remain open, acknowledging the value of the established rapport.
Preventing Dependencies and Fading Finishes. Organizations must guard against leaders becoming overly dependent on their coaches, characterized by prolonged engagements without clear goals or over-reliance on advice. Open discussions about goals and timelines are essential. To combat the "fading finish" as engagements near their end, ensure final metrics (like mini-surveys) are planned, and that HR/LD and the leader's boss reconnect to reinforce accountability and celebrate progress. Internal staff can play a vital role in continuing support once external coaching concludes, providing cost-effective, ongoing reinforcement.
12. The Future of Coaching is Standardized, Tech-Enabled, and Results-Focused.
Executive coaching has really only just begun.
Evolving Standards. The coaching industry is moving towards greater standardization in areas like assignment length, proprietary instruments, coach screening, and contract terms, without stifling the coach's expertise in individual conversations. This shift aims to bring more predictability and professionalism to the field, addressing the "Wild West" perception and ensuring a more consistent, high-quality experience for clients.
Results-Driven Focus. The emphasis on results will intensify, with more companies demanding "results-guaranteed" contracts where compensation is tied to measurable leader improvement. Integrating coaching outcomes with succession planning will become a key trend, allowing organizations to track the success of their programs by observing the strength of their leadership pipeline. This focus will drive the adoption of more robust impact metrics beyond mere satisfaction.
Technological and Methodological Innovations. Technology will increasingly enhance coaching interactions:
- Online Follow-Up Tools: Software to track development progress, goal accountability, and facilitate coach-leader interaction between sessions.
- Simultaneous Document Viewing: Collaborative online editing of action plans and other documents in real-time.
- Video-Assisted Coaching: Enhanced video chat capabilities for remote sessions, improving rapport and observational opportunities.
New forms of coaching like "Leader-as-Coach," "Team Coaching," "Peer Coaching," and deeper "Developmental Coaching" will also expand, offering diverse approaches to leadership growth.
