Executive Summary
The Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) partnered to conduct this research to gain a deeper understanding about the practice of coaching in organizations, and the results of such programs. This report profiles the key business measures affected by organizational coaching, and provides a more comprehensive perspective on how coaching is practiced in business today, including the barriers facing this practice. The result is a clearer perspective on the current coaching environment, including how coaching is different for multinational companies and recommended ways that organizations can better leverage coaching and its ability to help achieve both individual talent development and organizational goals.
In a new era of work exemplified by complicated and disparate processes, trans-cultural people, and an ever-increasing volume of information, organizations and their leaders are facing accelerating challenges to success. Chief among these obstacles is the need to create and implement more effective means of talent development to give employees the skills they need to be most successful and better prepare organizations for the future. Coaching has historically been used to help leaders develop required skills and knowledge, but its importance across an organization continues to expand. As a recent Organizational Development Journal article noted, “Employee development has become a necessary component of an organization’s efforts to improve quality, to retain key employees, to meet the challenges of global competition and social changes, and to incorporate technological advances and changes in work design.” In particular, increasing numbers of global companies can benefit from coaching, which can help improve cross-communication skills and the ability to leverage and manage conflict. As a whole, the opportunities for coaching to positively influence business are vast.
And yet, a clear consensus on the best way to define, structure, and implement coaching remains elusive. Determining how and in what ways coaching is most successful in organizations is critical. A model of continuous learning continues to be touted by OD practitioners as the next wave of talent development wherein every employee is tasked with consistently expanding their knowledge, improving their skills, and enhancing their ability to think bigger. Arming organizations with the knowledge about how coaching can actively support this kind of collaborative and information-based culture is the only way leaders will truly be able to capitalize on its practice.
In response to these issues and this environment, a 26-item survey exploring the practice and application of organizational coaching was created. Three-hundred eighty four responses were received from more than 230 organizations around the world, and the data collected helped produce the foundational knowledge that informs this report. Key survey findings include:
• The top reason leaders engage with a coach is to support leadership development; other top skills and business processes coaching is used for are performance management, change management, and building leadership bench strength.
• Organizations interested in scaling coaching engagements in an international market need to focus on establishing clear, consistent, and enterprise-wide coaching guidelines to achieve higher levels of coaching success.
• Organizations that offer coaching beyond their executive team report increased effectiveness in building skills and competencies. It would seem that organizations that universally offer coaching to employees are in a better position to transfer critical knowledge and build a stronger internal talent pipeline, which arguably sets them up for more success in the future.
Organizations are constantly seeking ways to differentiate themselves and better prepare for the future. The increased complexity of work today, alongside generational and geographic shifts in the workplace, has resulted in organizations ramping up their talent development offerings. The customized, individual approach that characterizes coaching makes it an ideal option for organizations to effectively maximize leadership competencies and skills among its workforce. Our data help identify the specific components of coaching that organizations can focus on to scale it across the enterprise and further improve the development of tomorrow’s leaders.
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About the Authors
Krystin Fakalata is an Online Talent Community Manager with the Organizational Development and Leadership Practice Area at the Human Capital Institute. Krystin has a diverse background, always with a focus on learning and training. Prior to joining HCI, she facilitated business communication workshops for some of the best companies in the world with Duarte Design. She has also worked for one of the largest branding consultancies, Landor Associates, in San Francisco. She comes to every project with an eye on big picture strategy and learning opportunities. This makes sense because she started out her career as an English teacher. She still likes to tutor and coach volleyball in her spare time, when she’s not playing in her own volleyball tournaments! Krystin is a graduate of The Ohio State University and is a proud Buckeye.
Aubrey K. Wiete, MA is a Senior Research Analyst at the Human Capital Institute in the Organizational Development and Leadership Practice Area. Previously, she was a lecturer and research fellow at the University of Kentucky. Most recently, she has authored or co-authored reports on the growth and necessity of internal content management, building trust in business to drive collaboration, and determining the ROI of executive development methods. Aubrey’s other areas of interest include leveraging talent agility to drive high potential performance, and how to build creative and sustainable employee cultures. She earned a bachelor’s degree from Saint Louis University and a Master’s in Organizational Communication from the University of Kentucky. Aubrey is based in Cincinnati, Ohio and enjoys shoes, writing, Scrabble, (occasionally) running, and spending time with her family.