Charting Success: Considerations for Effective Executive Coaching in Organisations

The coaching landscape Coaching psychology has evolved since its origins in the early 1900s and is now embraced by psychologists and coaches with diverse backgrounds in various fields. Coaching psychology focuses on the application of approaches to facilitate development, change, and improved functioning, well-being, and performance in both personal and workplace settings. Executive coaching extends on this and is specifically focused on supporting executives, leaders, and professionals in enhancing their leadership skills, performance, and achievement of professional goals. It focuses on areas such as leadership development, strategic thinking, decision-making, emotional intelligence, communication, and organisational effectiveness. It is distinct from mentoring, consulting, advisory services, training, or counselling. Executive coaching is not currently regulated in Australia, at times presenting some challenges in understanding its purpose, benefits and applied practice.

Addressing executive coaching misconception While there are many benefits in engaging an executive coach, it is also important to recognise upfront what is in scope for an executive coach in the organisational context. Executive coaches support leaders and teams in making changes, but they are not in a position to change the organisation; that responsibility lies with leadership. They assist teams in performing effectively to achieve shared goals, but the parties involved must be willing to collaborate. While executive coaches help clients explore options and make decisions, clients are ultimately responsible for their choices and taking steps towards their goals. They may provide guidance in managing people, but individuals and teams must take ownership of their actions. Executive coaches may support organisations to lead change by identifying needs, developing plans, and implementing them, but they are not the agents of change. Nor do they correct employee behaviour or make performance decisions; that is the role of leadership.

Benefits of coaching supported by data When deployed effectively, executive coaching can have a significant positive impact on individuals, organisations, and the bottom line. The body of research is consistently growing and supports the benefits of executive coaching. Below is data specifically relevant to Australia:

• A 2019 study by the Centre for Creative Leadership found that executive coaching can lead to a 20% increase in job performance for executives. The study also found that coaching can help executives to develop their emotional intelligence, improve their decision-making skills, and build stronger relationships with their colleagues and stakeholders.

• A 2020 study by PwC found that executive coaching can lead to a 15% increase in employee engagement for organisations. The study also found that coaching can help organisations to improve their leadership development programs, increase their innovation capabilities, and reduce their turnover rates.

• A 2021 study by McKinsey & Company found that executive coaching can lead to a 10% decrease in turnover for organisations. The study also found that coaching can help organisations to improve their talent management processes, increase their diversity and inclusion efforts, and improve their financial performance.

Establishing successful executive coaching engagements

Executive and leadership coaching engagements or programs sponsored by organisations need to be established in line with several principles to ensure success:

Assessment of Coaching Need: Ensure that coaching is the appropriate support for development and enhanced performance. Coaching can also be combined with other interventions. Common scenarios where executive coaching is beneficial include:

• New leaders seeking to develop their leadership skills and effectiveness.

• Mid-level leaders aiming to advance their careers and take on more responsibility.

• Senior leaders striving to improve performance and make a greater impact in their organisation.

• Leaders facing challenges like enterprise change, mergers/acquisitions, or complex business environments.

Clear Purpose: Clearly define and agree upon the coaching engagement's purpose among stakeholders, including the executive, the coach, and the organisational sponsor, to ensure focused and productive coaching.

Commitment From All Parties: Ensure commitment from the executive, coach, and organisation involved in the coaching process to maximise its success. This includes roles, timeframes and required actions.

Data-driven approach: Adopt a data driven approach to identify strengths, developmental opportunities, track progress and impact. This may include diagnostics such as 360 feedback, performance metrics, and coaching feedback.

Confidentiality: The coach must guarantee confidentiality to create a safe and trustworthy environment for the executive to be open and honest. That which is discussed in the session, remains in the session.

Professionalism: Engage a qualified and experienced executive coach who can effectively collaborate with the executive and the organisation. While industry experience can be valuable, the skills for facilitating the coaching process are even more important.

Organisational coaching engagements are in service of the individual and the broader stakeholder system. By linking individual concerns and aspirations with organisational agendas, they serve to improve organisational effectiveness. In summary, executive coaching is a valuable tool for executives, leaders and teams who are looking to improve their performance, reach their goals, and make a greater impact on their organisations.