If you’re like many busy executives, you’ve likely considered executive coaching. Over the past few years, the one-on-one nature of coaching has gained traction as a strong leadership development tool. While most executives who have been coached rate it highly, it is still difficult to measure the impact of executive coaching on business results.
Executive coaching is inherently difficult to measure. It focuses primarily on leadership soft skills and is unique to each executive due to their organization’s culture, strategic goals, and operating processes. Add to this the evolving nature of the workplace since the pandemic, the impact of changing technology like AI, and the uncertainty of the global geopolitical landscape, it’s easy to see why executive coaching is both critical and challenging for leaders to embrace.
The executive coaching industry is as decentralized as an industry can be. There is no definitive definition of a coach, and numbers range between a few hundred thousand coaches to more than five million coaches globally. A recent article from SHRM takes a deep look at executive coaching issues and suggests how to reshape the deliverables to meet the needs of executives in the coming years. Some of the issues noted include:
Non-Contextual Methodologies
The first issue highlighted is the idea of coaches not offering advice but instead asking questions that allow the executive to analyze their thoughts and behaviors to “reframe and reconsider approaches.” The intent is for the executive to be more self-aware over time and be better equipped to handle situations moving forward. This approach has its benefits, but according to the author, with the new challenges executives are facing today, the approach is not enough to help in “navigating dynamic contexts”.
Misaligned Measurement
The inability to accurately measure the ROI of coaching has always opened the door to doubters. It is difficult to attribute correlation and causation. NPS client satisfaction scores tend to be high, but does that satisfaction with the coach translate to business results? The idea that improved executive behavior translates to business performance is hard to prove.
Structural Fragmentation
Since the industry is decentralized, gathering data is nearly impossible. The individual nature of coaching often means companies have no idea how much they are spending on it. Trying to consolidate coaching at the company tends to lean towards one of the coaching organizations that exist. If an executive is happy with their coach and as coaches tend to be territorial with their executives, the goals of the executive, the coach, and the company can be misaligned.
To evolve executive coaching for the future, the following steps are recommended.
Establish Context and Evolve it Continuously
Instead of using an antiquated framework, coaches should align their approach and metrics to the executive’s organizational strategies. The uniqueness of each executive’s needs should inform the coach’s desired outcomes for each client. It requires more upfront context but should provide the missing element of associating the work with business outcomes.
Extract Emerging Patterns and Understand Core Values
Building on the historical non-directive questioning approach, coaches should also introduce and discuss emerging issues that could pose executive challenges. Additionally, coaches have not traditionally focused on the executive’s values. With the uncertainty ahead, understanding a client’s core values can indicate their behavior in navigating new challenges.
Measure Impact Over Activity and Don’t Call It ROI
Coaches are, in a sense, consultants. And like consultants, they have been criticized for uncovering issues but not providing solutions. Coaches have been judged by HR leaders for focusing too much on personal development and not enough on organizational leadership frameworks. Align on coaching priorities that include but are not limited to personal development, and measure and report on progress toward business goals.
We recommend reading the full article for more details on the issues and steps above.
It’s time for executive coaching to take the step to outcome-focused accountability if the industry wants to continue to thrive. The ability to show coaching can create a meaningful impact by working with human resources leaders and learning and development professionals in addition to their executive clients is a great place to start.
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