As companies strive to stay competitive in today’s fast-changing business environment, many are turning to coaching as one of the key ways to maximise leadership performance and develop emerging talent.
A $25 billion global industry, leadership coaching is growing rapidly. But what is it, how does it differ from mentoring programmes or general management training and what are some of the benefits on offer?
Leadership coaching, mentoring, and general management training all help people grow professionally, but there are some distinct differences in their approach and methodology.
The difference of leadership coaching
General management training is more structured and educational. It typically focuses on developing technical skills to improve organisational performance and is delivered through courses, workshops and seminars.
Whilst mentoring is more closely aligned to leadership coaching, it is much more about an individual sharing their knowledge, advice and guidance with someone less qualified. A mentor’s support is usually based around their own experience.
Leadership coaching however, is a much more personalised process focused on unlocking a person’s potential to maximise their performance.
It’s much more of a facilitative approach, with a coach working collaboratively with an individual to help them improve their skills, self-awareness, and effectiveness.
A leadership coach will provide insights, feedback, and strategies to navigate challenges and enhance their decision-making, communication, and leadership style.
The Benefits of Leadership Coaching
As with any professional development programme, the goal is to empower leaders to drive business performance, be more innovative and create a positive impact within the business.
Reported stats about coaching include, the Manchester Inc. study on executive coaching. The report highlights that companies that invest in coaching see an average ROI of 5.7 times the initial cost.
And the Human Capital Institute (HCI) & International Coach Federation (ICF) report that 96% of organisations with a formal coaching culture, say it has a positive impact on individual and team performance.
But what are the distinct advantages that leadership coaching offers and how does it impact individuals?
1. Executive presence
Coaching helps leaders to exude authority, project confidence and cultivate gravitas.
The tailored feedback and support they receive from a coach, will help them be more of an impactful presence and remain more composed under pressure, benefitting colleagues and the business as a whole.
With an improved executive presence comes more progression opportunities. The Center for Talent Innovation reports leaders with high executive presence are 23% more likely to be viewed as successful and promotable by senior leadership.
2. Self-awareness and emotional intelligence
According to Korn Ferry, self-awareness is the strongest predictor of success in leadership roles, even more than IQ or technical ability.
Leadership coaching has a profound impact on helping individuals better understand their strengths, weaknesses and blind spots.
Through being more self-aware of their positive attributes and where they need to develop, leaders can become more empathetic. They can build stronger relationships, manage conflict more effectively and better inspire those around them.
It’s all backed up by ICF Global which states that 80% of people who receive coaching report increased self-confidence, and over 70% benefit from improved work performance, relationships, and communication skills.
3. Communication and collaboration
Coaching can help leaders improve their communication skills. Leaders who communicate with clarity, listen actively and encourage open dialogue, are much more likely to succeed.
The relationships with those they lead are highly likely to be much more collaborative and based on trust. Gallup reports that leaders who are perceived as effective communicators have teams with up to 50% higher engagement.
4. Decision-making and problem-solving
By working alongside a coach, leaders will be better equipped to analyse different business risks, compare and contrast different options and make more informed commercial decisions.
Leaders will improve their critical-thinking skills and their strategic decision-making abilities.
HBR’s article, “The Best Leaders Are Great Decision Makers”, backs this up, stating that coaching improves strategic decision-making by increasing executive reflection time by 40%, which is strongly correlates with better business outcomes.
5. Continuous improvement and adaptability
Leadership coaching encourages leaders to adopt a growth mindset and be more resilient in times of adversity.
The Harvard Business Review also states that companies with a growth mindset culture are 34% more likely to foster innovation. Similarly, the ICF Research Portal emphasises how coached leaders are 39% more likely to lead successful change initiatives.
Working alongside a coach will help leaders embrace change and identify innovative solutions to address challenges and drive continual improvements.
6. Employee engagement and talent retention
More engaging, emotionally intelligent and communicative leaders usually results in a highly motivated team and more positive work environment. Employees who work for empathetic, supportive, and inspiring leaders, tend to stay longer and enjoy their job roles more, leading to higher employee engagement and reduced turnover.
In fact, employees who feel their managers are invested in their development are 47% more likely to stay with the company, according to LinkedIn Learning Report.
Likewise, Gallup states that teams with highly engaged leaders see 21% higher profitability and 59% less turnover.
7. Develops Future Leaders and Succession Planning
Leadership coaching plays a big role in nurturing emerging leaders. Organisations with strong coaching cultures are 67% more prepared to identify and develop future leaders, according HCI/ICF’s Talent Development Report.
Helping businesses with their succession planning, coaching helps develop and equip high-potential talent with the leadership skills they need.
8. Commercial acumen and overall business performance
77% of business leaders surveyed by the International Coaching Federation (ICF) say that coaching helps improve business results such as revenue growth, profitability, and customer satisfaction.
Similarly, Deloitte states that companies providing leadership coaching are 130% more likely to see stronger business performance.
Why? Because as part of their leadership coaching, executives will often work on developing areas such as goal-setting or their negotiation skills, as well as enhancing how they manage and influence stakeholders.
Developing a deeper understanding of these topics will only serve to have a positive impact on their commercial acumen and lead to stronger business outcomes.
Overcoming obstacles and implementing leadership coaching in your business
As is so often the case, implementing change can be met with internal resistance. Although transformative, establishing a coaching culture can come with challenges.
Common obstacles include:
- Scepticism and a lack of leadership buy-in is often cited as the no. 1 barrier to implementation – if senior leaders don’t actively support coaching, it’s unlikely to grain traction or become embedded in the company culture. Managers and employees, more used to traditional management styles, may be reluctant to adopt more forward-thinking coaching practices
- Limited resources – adopting and implementing a coaching programme requires time and finances, which can be difficult in fast-paced work environments where budgets are under pressure
- Inadequate coaching skills – if trying to deliver internally, managers may lack the necessary skills to coach effectively, with coaching being inconsistent or ineffective. In fact, CIPD’s Learning & Development Report states that only 15% of management feel confident in using coaching skills without proper training. Added to this, is that senior leadership may also be reticent to buy-in external resource
- Unclear objectives and a lack of measurement – without clear goals and objectives, coaching programmes may feel somewhat disconnected from delivering positive commercial outcomes. Over 60% of companies cite lack of clear metrics as a major hurdle in measuring coaching impact (Harvard Business Review Analytic Services), highlighting how a lack of tracking progress may make it difficult to measure impact
Key steps to introducing and sustaining Leadership Coaching
Embedding a coaching culture in a business requires a strategic approach, so before launching in, it’s important to:
1. Secure buy-in
Make sure senior leaders and stakeholders across the business understand the full benefits. When leadership actively show their support, it sets the tone for how coaching is views across the whole team.
2. Set clear goals
Determine in advance what you are aiming to achieve through a leadership coaching programme. Decide if it’s aimed at senior leaders or as part of your succession planning and talent development efforts, and ensure the objectives are linked to business priorities.
3. Select the right coaches and match with the right coachee
If there is a lack of coaching skills internally, buy in external resources with the specialised expertise you need. Matching the right coach to each coachee is also crucial for success, leading to 3x higher engagement and satisfaction levels, according to CoachHub Research
4. Integrate coaching into performance management
Businesses integrating coaching into their performance reviews and development processes reporting 62% higher leadership effectiveness (Bersin by Deloitte). It’s important therefore to encourage leaders to use coaching techniques as part of their employee performance review to help drive a culture of continuous development.
5. Embrace alongside other professional development methods
Remember that coaching can sit alongside other forms of leadership development, mentoring and more traditional, general training. You don’t have to adopt a one-size fits all approach.
6. Evaluate the outcomes
Measuring the effectiveness of leadership coaching is key to demonstrating its impact. Using feedback, employee surveys and performance metrics will ensure that coaching delivers a commercial ROI over time.
In today’s rapidly evolving business landscape, leadership coaching offers both individual growth and development, as well as positive commercial outcomes.
Alongside improving a leader’s executive presence, emotional intelligence, communication skills, and strategic decision-making capabilities, companies can reap the business benefits of having resilient, adaptable executives who drive innovation and lead engaged teams.
Whilst implementing any cultural change can be met with resistance and present initial challenges, the long-term benefits of a well-planned, well-structured, well-resourced and well-measured coaching programme are too good to ignore.
Improved talent development and employee retention combined with a positive impact on commercial performance, make it a worthwhile investment.
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