Research Paper By Kimberly Denise Dennis
(Life Coach, UNITED STATES)
Once seen as the last step for an executive about to fall off the ladder, leadership coaches now help smooth a promotion, teach outsiders about their new culture, and tune up talent.- CNN Money[1]
Leadership coaches work with leaders, managers, and executives on self-awareness and self-management, communication, and leader impact. Leadership coaching focuses on “soft skills.” This differs from business coaching which more often focuses on hard skills, strategy, tactics, and operations.
Although leadership (executive) coaching is a growing concentration within the coaching profession, there is no one widely accepted definition. Also, the terms “leadership coach” and “executive coach” are often used interchangeably, although executive coaching often refers to higher-level managers while the term leadership coaching also encompasses lower, supervisory-level managers.
Let’s explore just a few of the definitions of the term “executive coaching.” Kilburg defines executive coaching as follows:
a helping relationship formed between a client who has managerial authority and responsibility in an organization and a consultant who uses a wide variety of behavioural techniques and methods to help the client achieve a mutually identified set of goals to improve his or her professional performance and personal satisfaction and, consequently, to improve the effectiveness of the client’s organization within a formally defined coaching agreement[2]
In this definition, the coach’s role is viewed as more of a consultant and the two parties develop goals together.
The definition used by Sherpa Executive Coaching defines the coach as a facilitator, rather than a consultant:
Executive coaching means regular meetings between a business leader and a trained facilitator, designed to produce positive changes in business behavior in a limited time frame.[3]
Here, the goal is a specific behavioral change and does not address the issue of the client’s satisfaction.
A more comprehensive definition was developed by The Executive Coaching Forum:
Executive coaching is an experiential and individualized leader development process that builds a leader’s capability to achieve short- and long-term organizational goals. It is conducted through one-on-one and/or group interactions, driven by data from multiple perspectives, and based on mutual trust and respect. The organization, an executive, and the executive coach work in partnership to achieve maximum impact.[4]
This definition touches on two important aspects of leadership coaching:
(1) it often involves obtaining input from multiple sources, such as the leader’s supervisor, direct reports, and peers, and
(2) unlike many coaching relationships, there are three primary parties involved: the coach, the leader, and the leader’s organization.
The business demand for coaching is nearly doubling each year. Out of the $80 billion being currently spent on corporate education, FLI Research estimates that $2 billion is spent on executive coaching at senior executive levels in Fortune 500 companies.― Business Wire
Who Hires Leadership Coaches?
Many people employ leadership coaches including people transitioning to more complex positions, newly appointed leaders, people identified as having leadership potential wishing to hone their skills, and underperforming leaders.
Sometimes the coach is hired by the organization and sometimes by the leader. Pavur (2013) suggests that leadership coaching falls into three categories:
(1) training and development, which benefits the organization and is typically paid for by the organization,
(2) health and self-actualization, which benefits the organization and the leader, but which is typically paid for by the leader, and
(3) adaptation and resilience, which benefits the organization and the leader, and is typically paid for by the organization.[5]
According to the Sherpa Report, the majority of executive coaches are paid by the employer (64%) versus by the coaches (14%), while some report being paid equally by people in each category (22%).[6] The coach needs to understand the organizational context. If brought in by the organization, the coach should establish the client’s commitment to the coaching process. Does the leader wish to be coached? Is the coaching designed to build up a leader who is already strong or is it part of a performance improvement plan? Is the organization committed to supporting the leader’s efforts to change?
More executives are beginning to request the service for themselves…as the negative connotation of coaching as a form of punishment for poor performance is replaced by the growing perception that coaching can help an individual or group to build sustainable professional and personal skills, better learn, overcome challenges, reach stretch goals and integrate leadership training.― US Careers Journal
Specializations of Leadership Coaching
Just as there is a variety of coaching niches, there are several specialties within leadership coaching. For example, leadership coaches coach clients who are in academic medicine,[7] finance,[8] engineering project management[9], and even high school teachers.[10] In addition to serving several industries, leadership coaches come from a range of backgrounds and include industrial/organizational psychologists, consultants, and former executives.
Coaching takes a holistic view of the individual: work, corporate values, personal needs and career development are made to work in synergy, not against one another.– British Journal of Administrative Management
Leadership Coaching Models and Approaches
Many common coaching models have been applied to leadership coaching. For example, Good, Yeganeh and Yeganeh proposed a cognitive-behavioral executive coaching model, in which cognitive behavioral therapy is applied to the executive coaching process to help leaders become more flexible in dealing with the challenges of complex environments. This model follows a five-step process:
- Orienting and Vision – determine the leader’s vision of their “ideal future.”
- Current Thoughts and Behaviors – uncover the thoughts and behaviors that are keeping the leader from obtaining the ideal future.
- Vision Oriented Thoughts and Behaviors – identify the thoughts and behaviors that would exist in the ideal future.
- Experiment – learn and practice techniques that would allow more desirable thoughts and behaviors.
- Transition – develop self-sufficiency in implementing the desired thoughts and behaviors.[11]
As a result of working through this model with a leadership coach, the executive will be better able to respond to organizational situations that arise, even after the coaching engagement.
Another approach to leadership coaching is the application of the five-factor model of personality. McCormick and Burch (2008) apply the “big five” factors of emotional stability, extraversion, openness, agreeableness, and conscientiousness to leadership coaching.[12] Since, as the authors state, leaders tend to be more extraverted, conscientious, and emotionally stable, it is helpful to use coaching to help leaders identify their personality traits and related leader behaviors.
In a somewhat unique approach, Kets de Vries (2014) has proposed that leadership coaches explore the dreams of their executive clients. They posit that the unconscious mind may hold the key to a client’s obstacles and challenges.[13]
Many of the World’s most admired corporations, from GE to Goldman Sachs, invest in coaching. Annual spending on coaching in the US is estimated at roughly $1 Billion Dollars.― Harvard Business Review
Leadership Coaching Tools
Leadership coaches often incorporate assessment tools in their coaching practice. Examples of assessment tools include:
- Multifactor Leadership Questionnaire (MLQ): The MLQ identifies the qualities of transformational leaders and includes self-report and follower ratings. It provides a measure of leader effectiveness and follower satisfaction.[14] The coach may choose to administer the MLQ before and after the coaching engagement to assess changes in the leader’s and followers’ perceptions of the leader’s behavior.
- Authentic Leadership Questionnaire (ALQ): While a leader could be effective without being ethical, it is certainly not desirable within most organizations. The ALQ measures four components of authentic leadership: self-awareness, transparency, ethical/moral standards, and balanced processing (seeking input from others before making decisions).[15]
- StrengthsFinder 2.0: Developed by Gallup, this online assessment identifies an individual’s strengths in 34 key areas. It is designed to help leaders understand what do they best, so they can nurture and build upon those strengths.[16]
- 16PF Leadership Coaching Report: Based on the 16 Personality Factors inventory, the leadership coaching report assesses the leader in six key areas: problem-solving, influence, emotional resilience, extraversion, practicality, and self-control. The resulting report provides suggestions for development and an action-planning guide.[17]
- General Inventory of Lasting Leadership (GILL): The GILL was designed to make a clear distinction between the task-oriented behaviors of a manager and the more people-focused role of a leader. Specifically, the GILL assesses a leader’s behavior in five key areas: vision and mission; shared values; strategy; empowerment; and influence, motivation, and inspiration.[18]
Leadership coaches need to remember that assessment tools are merely that: tools. They should be used to build a foundation for the coaching relationship as needed, but may not always be required in all instances.
I never cease to be amazed at the power of the coaching process to draw out the skills or talent that was previously hidden within an individual, and which invariably finds a way to solve a problem previously thought unsolvable.― John Russell, Managing Director, Harley-Davidson Europe Ltd.
Evaluating Leadership Coaching
Does leadership coaching work? Organizations are focused on results. They are not likely going to pay for a service if it is not paying off. The good news is that leaders do feel that coaching has worked for them. One report states that clients say coaching helped them to:
Other reported benefits include increased assertiveness, better stress management, and greater work/life balance.[20]
There are several ways of measuring the effectiveness of any performance improvement intervention. One traditional structure was developed by Kirkpatrick, who suggested evaluating programs on four levels: reactions, learning, behavior, and results.[21] Let’s look at each level and how it can be measured in leadership coaching.
Walkman (2003) found that coaching improved performance ratings for executives who received coaching (pre- post-360 degree feedback) according to supervisors and subordinates, but not peers.[22]
Another study, conducted by MacKie (2014) found that strength-focused coaching led to an increase in transformational leadership behaviors. This improvement was perceived by the leaders’ supervisors, subordinates, and peers, but not by the leaders themselves.[23]
Perkins coached executives on how to effectively lead a meeting. A comparison of observed pre- and post-coaching behaviors determined that the coaching was effective in positively changing the executives’ meeting leadership style.[24]
Acceptance and Commitment Training (ACT) has an abundance of evidence supporting its effectiveness in behavior change, including improved workplace performance and decreased work-related stress. Moran (2011) suggests applying this well-supported model to the leadership coaching context by focusing coaching on the six domains of ACT: acceptance, defusion, values, contact with the present moment, self-as-context, and committed action.[25]
Kombarakaran, Yang, Baker, and Fernandes (2008) studied the impact of coaching on leadership behavior found that executive coaching leads to positive change in engagement and productivity, people management, communication, goal-setting, and relationships with managers. Their study only gathered data from coaches and clients.[26]
However, organizations may be unwilling to pay for leadership coaching if they do not see an impact on the business. There are studies to support the business impact. For example, Olivero, Bane, and Kopleman (1997) found that leadership coaching led to increased task accomplishment.[28] While Levenson (2009) argued that this is only a business impact if those tasks are directly linked to the strategic goals of the organization,[29] “business impact” can take many forms. Coaches should be prepared to explain how leadership coaching could have an impact on results such as employee retention, higher morale, increased sales, and increased customer satisfaction.
Even modest improvements can justify hiring a coach. An investment of $30,000 or so in an executive who has responsibility for tens of millions of dollars is a rounding error.― Jerome Abarbanel, VP of Executive Resources, Citibank
What Leadership Coaches Charge
Speaking of getting their money’s worth, how much are leadership coaches charging? According to The 2015 Executive Coaches’ Earnings Report, published by the Sherpa Organization, global figures for 2015 find that executive coaches earn $350 per hour, up from $335 in 2014, with annual earnings of an average of $91,633 per year, down from $97,000 in 2014.[30]
I absolutely believe that people, unless coached, never reach their maximum capabilities.― Bob Nardelli, former CEO, Home Depot
Conclusion
Leadership coaching is beneficial for the leader and the organization. A leadership coach who uses established coaching models in unison with appropriately selected assessment tools will assist the executive in navigating the challenges of life in today’s fast-paced, rapidly changing organizations.
Resources
[1] All quotations from “Hear what global leaders and the media have to say about the power of coaching. A Better Perspective. http://www.abetterperspective.com/Quotes.html
[2] Kilburg, R. R. as cited in Wenson, J. E. (2010), After-coaching leadership skills and their impact on direct reports: Recommendations for organizations. Human Resource Development International, 13(5), 607-616, p. 607.
[3] Definition from ‘The Sherpa Guide: Process-Driven Executive Coaching’ (Thomson 2005)
[4] The executive coaching handbook: Principles and guidelines for a successful coaching partnership. The Executive Coaching Forum, 2008.
[5] Pavur, E. J. Jr. (2013), Why do organizations want their leaders to be coached? Consulting Psychology Journal: Practice and Research, 65(4), 289-293.
[6] 10th Executive Coaching Survey Earnings Report, Sherpa Coaching, 2015.
[7] Schidlow, D. V. & Siders, C. T. (2014). Executive coaching in academic medicine—The net under the tightrope. Physician Leadership Journal, 1(2), 60-64.
[8] Reeves, W. (2006), The value proposition for executive coaching, Financial Executive, 22(10), 48-49
[9] Berg, M. E., & Karlsen, J. T. (2013). Managing stress in projects using coaching leadership tools. Engineering Management Journal, 25(4), 52-61.
[10] Grant, A. M., Green, L. S., & Rynsaardt, J. (2010). Developmental coaching for high school teachers: Executive coaching goes to school. Consulting Psychology Journal: Practice and Research, 62(3), 151-168.
[11] Darren, G, Yeganeh, B., & Yeganeh, R. (2010). Cognitive-behavioral executive coaching. OD Practitioner, 42(3), 18-23.
[12] McCormick, I, & Burch, G. St. J. (2008). Personality-focused coaching for leadership development. Consulting Psychology Journal: Practice and Research, 60(3), 267-278.
[13] Kets de Vries, M. F. R. (2014), Dream journeys: A new territory for executive coaching. Consulting Psychology Journal: Practice and Research, 66(2), 77-92.
[14] The Multifactor Leadership Questionnaire, developed by Bernard Bass and Bruce J. Avolio, is available at http://www.mindgarden.com/16-multifactor-leadership-questionnaire
[15] The Authentic Leadership Questionnaire, developed by Bruce J. Avolio, William L. Gardner, and Fred O. Walumbwa, is available at http://www.mindgarden.com/69-authentic-leadership-questionnaire
[16] The Clifton StrengthsFinder 2.0 is available at www.gallupstrengthscenter.com.
[17] The Leadership Coaching Report is published by the Institute for Personality and Ability Testing, Inc. (IPAT) and is based on Cattell, R. B., Cattell, A. K. & Cattell, H. E. P. (1993). Sixteen Personality Factor Questionnaire, fifth edition. Champaign, IL: Institute for Personality and Ability Testing.
[18] Gill, R. (2012). Theory and practice of leadership (2nd ed.). Thousand Oaks, CA: Sage. A copy of the instrument is available here: Rupprecht, E. A., Waldrop, J. S., & Grawitch, M. J. (2013). Initial validation of a new measure of leadership. Consulting Psychology Journal: Practice and Research, 65, 128–148. DOI:10.1037/a0033127
[19] Reeves, W. (2006), The value proposition for executive coaching, Financial Executive, 22(10), 48-49, p. 49
[20] Berg, M. E., & Karlsen, J. T. (2013). Managing stress in projects using coaching leadership tools. Engineering Management Journal, 25(4), 52-61.
[21] Kirkpatrick, D.L., & Kirkpatrick, J.D. (1994). Evaluating Training Programs, Berrett-Koehler Publishers
[22] Waldman, D. A. (2003), Does working with an executive coach enhance the value of multi-source performance feedback? Academy of Management Executive, 17(3), 146-148.
[23] MacKie, D. (2014). The effectiveness of strength-based executive coaching in enhancing full range leadership development: A controlled study. Consulting Psychology Journal: Practice and Research, 66(2), 118-137.
[24] Perkins, R. D. (2009). How executive coaching can change leader behavior and improve meeting effectiveness: An exploratory study. Consulting Psychology Journal: Practice and Research, 61(4), 298-318.
[25] Moran, D. J. (2011). ACT for leadership: Using acceptance and commitment training to develop crisis-resilient change managers. International Journal of Behavioral Consultation and Therapy, 7(1), 66-75.
[26] Kombarakaran, F. A., Yang, J. A., Baker, M. N. & Fernandes, P. B., (2008). Executive coaching: It works! Consulting Psychology Journal: Practice and Research, 60(1), 78-90.
[27] Gray, D. E., Ekinci, Y, & Goregaokar, H. (2011). Coaching SME managers: business development or personal therapy? A mixed-methods study. The International Journal of Human Resource Management, 22 (4), 863-882.
[28] Olivero, G., Bane, K. D., & Kopelman, R. E. (1997). Executive coaching as a transfer of training tool: Effects on productivity in a public agency. Public Personnel Management, 26, 461-469.
[29] Levenson, A. (2009). Measuring and maximizing the business impact of executive coaching. Consulting Psychology Journal: Practice and Research, 61(2), 103-121.
[30] 10th Executive Coaching Survey Earnings Report, Sherpa Coaching, 2015.