12/1QI13 Coaching in a Business Erwiruunent

Coaching in a Business Environment

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Scope-This article provides an owNiew of the HR col'!l)elency of coaching in a business environment It discusses the value of coaching and describes some of the practical techniques and tools used in the practice. It also delves into various applications of corporale coaching and addresses training, certifications and careers in the field.

Coaching in a business em/ironment is a training method in which a rrore experienced or skilled indi'Jidual pro'Jides an employee with advice and guidance intended to help d9\'elop the indi'Jidual's skills, performance and career. See, SHRM Glossary. Coaching is distinguished from sirrilar HR competencies of mentoring and counseling (as a step in a progressiw discipline system). Coaching may be one of the means used for management development, but it is broader in application than just management training. See, Developing Management Toolkit.

Coaching is a highly indi'v'idualized process that depends both upon the nature of the client and the coach's knowledge, skills and abilities. However, there are several recognized techniques and tools for a coach to draw on in almost any coaching situation.

As organizations haw come to recognize the many purposes and benefi1s of coaching, the field has grown dramatically, and some organizations actively v.ork to create a culture of coaching. A coaching culture within an organization includes rrore than formal coaching; it is a culture where coaching behaviors are used as a means of communicating, managing and influencing others. It is also an en'Jironment that values learning and the development of employees. Coaching should be approached like any other strategic goal. Successful execution requires commitment from the organization and the person being coached, a plan to obtain results, qualified coaches and a follow-up evaluation. Today, it is possible to obtain training and certification in the coaching field. As a career path, coaching usually inwll.es independent consulting, although some large organizations employ coaches on their regular staff.

Definition

The hallmarks of coaching are that it is personalized, customized, usually done one-on-one and owr a period of time, and with a specific business objectiw in rrind. Coaching is sirrilar to, but distinct from, mentoring. The latter is a career d9\'elopment method whereby less BJCperienced employees are matched with rrore experienced colleagues for guidance either through formal or informal programs. See, SHRM Glossary, Find Your Mentor.

As used in this article, coaching is neither counseling as a step or technique in a progressiw discipline system {See, Managing Corrective Action), nor is coaching teaching or instruction; it is a process of guiding the person being coached from one level of corJ1)8tency to another. See, Book Review of Coaching. Counseling & Mentorlng.

Fundamentally, coaching is a business relationship between the organization, the coach and the person being coached, and it iroolves a tailored approach to fit the client Depending on the position of the person being coached and the purpose of the coaching, different approaches are called for. See, Executive Coaching Series Part 1: Executive Coaching-Overview.

Value

Coaching is a commonly used method of employee development that has generated positiw business outcomes. According to a study by the American Management Association in conjunction with the Institute for Corporate Producti'v'ity, business coaching is becorring increasingly rrore popular. Of U.S. companies surwyed, 52 percent said they had business coaching programs in place, and another 37 percent said they v.ould be implementing coaching programs in the future. According to a 2009 ICF Global Coaching Client Study, responden1s reported business improwrnen1s in areas such as better leamv.ork, more clarity at goals, and better communications. Of the 2130 clien1s surwyed by the ICF, rrore than 70 percent reported significant improvemen1s in the follov.Ang fiw areas:

• Self-esteell'Vself-confidence {80 percent). • Relationships (73 percent). • Corrm.mication skills (72 percent). • lnlerpersonal skills {71 percent). • Work performance (70 percent).

Consistent with these findings, 78 percent at the 472 top business and human capital leaders surwyed in a 2008 study by global outplacement and career management firm Drake Beam Morin Inc. and the nonprofit think lank Human Capital Institute said they 'Jiewecl coaching as a credible, effectiw way to improve a company's

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performance. Participants in that study calculated ROis ranging from 100 to 500 percent return, based on factors such as executiva output, quality improvements, cost savings and senior leader turnover. See, Executive Coaching Gets Second Look as Development Tool.

Coaching isn't for evaryone. Some individuals are not open to feedback, and some are unwilling to change. Hcr.vavar, this is a problem 'Nith the person being coached, not a deficiency in the tool of coaching. Evan a "Tiger Woods" can benefit from having a personal coach to help him solva problems and excel evan more. See, Woods's Coach Change Vindicated: A conversation with Tiger Woods's golf coach Hank Haney. Hcr.vavar, for those who make a corrmitment, coaching can open a v.tlole new world in terms of greater candor, more respect from staff at alllevals, professional alliances and relationships, and better skills to achieva s1rategic goals.

Techniques and Tools

At its best, coaching is about partnering rather than about one person being "the expert" and lecturing the other. The client is the expert in the organization; the coach helps the client to devalop a higher laval of expertise. The

coach can use a wriety of methods to facilitate the coaching process:

• Using data from anonymous 360-degree survays or climate analysis survays to identify objectiva behaviors that can be linked 'Nith business outcomes. See, Developing Mid·Level and Senior Leaders. CEOs are vary often shocked at the disparity in their rating and their subordinates' ratings of them. This might be the first awareness that they are out of touch. See, Don't Be Cowardly When Addressing CEO Coaching Needs.

• Using personality and behavioral assessments to diagnose v.tlat traits and behaviors are dominant or lacking, and 'o\tiat might be easy or difficult to change.

• Ustening actively; the coach does not soll.e the client's problems-the client solves his or her own problems. • Helping clients to distinguish v.tlat is important from v.tlat is not • Leading clients outside of their comfort zone. • Acknowledging the client's accorrplishments and empathizing (not sympathizing) 'o\tien the client is down. • Providing perspective based upon the coach's own experiences. • Helping the client set goals, develop an action plan for moving ahead and anticipate and overcome potential

obstacles. • Recommending specific books or other sources of learning. • Meeting on a regular basis, 'Nith on-the-job "homework" assignments between meetings. • Managing the confidentiality of the coaching partnership. In most cases, the official"client" is the

organization v.tlo is paying the coaching inwice, yet the true "clienf' is the individual being coached. • Designing systems to track the return on invastment of coaching.

See, Executive Coaching Series Part 1: Executive Coaching-Overview, Executive Coaching Part II: Challenge of Determining Return on Investment

Coaching Applications

The growth of the corporate coaching industry has been rapid. See, Executive Coaching Part 1: Executive Coaching-Overview; Scoring Big in the Workplace. Sin"ilar to personal training in the priwte realm, coaching in the business environment is quickly becoming mains1ream and branching out to all areas of organizational management Coaching can be an effective tool in meeting numerous organizational needs. See,

career Development: Why Does Your Organization Provide Coaching?, Executive Coaching Part II: Challenge of Determining Return on Investment.

Executive development

Executive coaching, sometimes introduced to address senior leadership's disruptive or ineffective behavior, also can help a capable executive perform at an even higher level. It is also useful for developing high-potential prospects for purposes of succession planning. With the improvament in the economy, many organizations are looking toward the future and considering global expansion. The possibility of expansion has brought into focus the need for new global leadership skills and more deliberate and s1ructured pipelines of future leaders.

Current executives. As coaching clients, CEOs, in particular, may be unaware that the competencies that have gotten them to the top may not be the ones that 'Nill ensure their continued success. Moreover, CEOs tend to be very dynamic people v.tlo are not always receptive to unsolicited feedback. Staff merrbers may awid saying v.tlat needs to be said, fearing a "kill the messenger" response, reprisal or exclusion from the inner circle. If C­suite occupants perceiva coaching as a practice that comes 'Nith the territory, they may be more likely to be receptiva to it, making it an effectiva tool in addressing their devalopment. See, Don't Be Cowardly When Addressing CEO Coaching Needs.

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12/1QI13 Coaching in a Business Erwiruunent Emcutiw coaching is a practical, goal-focused form of one-on-one dewloprnent C-suite coaching clients typically are looking for a thinking partner with whom to discuss decision options, expand perspectiws, balance \\Ork and horne acti\'ities, and strategize through difficult or unusual circumstances. Strategic coaching should integrate organizational and personal needs. Each engagement should be custom-designed, focusing on a leader's particular dewlopment goals. The CEO typically will need six to eight months of one-on-one coaching to ingrain new beha\'iors. Practice, observation and feedback are key to changed beha\'iors.

Potential executives. Many individuals v.tlo currently hold exacutive-lewl positions are nearing retirement. O"ganizations want changes in leadership to occur with as little disruption as possible. To increase the chances of a smooth transition, companies are using coaching as a means of dewloping the next generation of leaders. See, Opportunities far Consultants Who Ofl"ar Executive-Laval Coaching. Factors such as an individual's outstanding achiewrnent of dewlopment objecliws, positiw assessment from the coach and the coached individual's ability to take on new 1asks are also recognized benefits of executiw coaching. See, Executive Coaching Gets Second Look as Development Tool. In light of this looming change in executive-lewl positions, the funding traditionally directed toward senior leaders has begun to shift to first and mid-level management As much as 30 percent of an organization's leadership dewloprnent budget is being devoted 1o the dewlopment of these potential executiws, v.tlich translates into approximately $1,500-$2,700 per participant, for first and mid-lew! managers, respectiwly.

Management development

Super\'isors and managers are on the front lines of organizational performance and need to dewlap skills 1o motivate collectiw effort Sometimes, super\'isors and managers lack necessary people skills, such as skills in setting goals, delegation, providing accountability, deliwring effectiw performance reviev.s and awn coaching itself. Coaching can help them dewlap such skills.

A manager probably has succeeded at a super\'isory lewl and been promoted or hired into a higher level. Accordingly, the manager may benefitfrom coaching as to big-picture issues or may need polishing on some particular issue such as delegation of work, time management, team-building, performance management, hi ring, or corrm.Jnication or negotiation skills. Sirrilarly, a super\'isor is often a person promoted from the rank-and-file and, as such, may benefit from coaching on how to effectiwly transition to the new role of being a boss. See, Tips for transltlonlng from pear to supervisor.

Publication Note-This treatment was first published in February 2009 and thoroughly revised in March 2013. SI-RM staff will update it periodically as dewlopments in this field warrant For the most recent dewloprnents, see the Coaching topic in the Organizational Development Discipline. Please notify SHRM of broken links or concerns

Oeve/opment for HR professionals

Coaching can be an important dewlopmental approach for HR professionals. Perhaps the most pressing reasons HR professionals seek coaching are to help them become more effectiva in:

• Demonstrating their value 1o the organization's bottom line. • Making the case for the importance of HR programs. • Strategic planning. • Showing return on inwstrnent. • Institutionalizing HR initiatiws. • Corporate corrm.Jnications.

See, Career Development: Coaching HR, Developing as an HR Profassional.

Diversity coaching

Coaching also can be an effecliva toollo support an organization's diversity initiatives, although organizations rrust take care that such efforts do not amount 1o unlawful discrimination. Divarsity-based coaching activities might focus on:

• Legally protected characteristics. Coaching can be used to sensitize individual e~yees v.tlo may haw e»'libited or been accused of inappropriate, discriminatory or harassing behaviors. The objectiw v.oold be to help them see things through the eyes of persons v.tlo are different from them in terms of gender, race, religion or other legally protected characteristics and 1o respond effectiwly in a business environment (This is distinct from any disciplinary remedy that may be called for.) See, Executive Coaching for Female Executives.

• Generational differences. Coaching can assist older and younger \\Orkers (Baby Boomers, Gen Xers and Gen Yers) in understanding the differing \\Orld views and skills of the various generations, learning how

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their different e)(IJeriences affect the way they \'iew the w:>rkplace and discowring how they can most effectively 'Mlrk together to achieve organizational goals. See, SHRM VIdeo: Diversity Trends.

• Behavioral and personal styles. Coaching can help indi\'iduals better understand how their business counterparts are sim lar and different from them and how to interact effectively with indi\'iduals with different styles.

Coaching fol' International assi(J'Iment

Employees may resist International assignments for various reasons: famly concerns, a spouse or partner's career or their own career aspirations. These are all areas v.tlere a coaching intervention can help companies Y.lith making assignments and assisting expatriates to adapt to their assignments. Once an el'll>loyee accepts an international assignmen~ a coach can help the indi\'idual, the spouse and the famly acclimate to the new en\'ironmenl See, Coaching Expata is Opportunity for HR Consultants.

Cross-cultural coaching

As the business 'Mlrld continues to ewiYa in a global marketplace, eleCUtive coaching takes on a new dimension: cross-cultural perspectives. Whether company leaders are dealing Y.lith cultural changes through mergers/acquisitions or 'Mlrking with a 'Mlrkforce of different ethnic and/or nationai-AEMtPoints, values and 9)(1Jectations, coaches can be effective in helping eliBCutives na\'igate cross-cultural en\'ironments. See, Executive Coaching Series Part Ill: Cross-Cultural Perspective.

Heal1h coaching

In this age of consumer-directed health care, health coaching is taking on a more promnent role in educating and 9fl1)0W9ring employees to make smart health care purchasing decisions--and smarter decisions about their own health. A 2006 Health Coaching Study by researchers at Q-egon Health & Science University, in Portland, found that 276 medical center e~ees showed significant il'll>rovements in their physical and mental health after three months of health coaching compared Y.lith a control group. In addition, a 2012 study by Miriam Hospital's Weight Control and Diabetes Research Center notes that obese indi\'iduals v.tlo ware supported by health coaches lost clinically significant amounts of waight (at least 5 percent of their initial body waight). See, Health Coaching: A Helping Hand for Getting Better, staying Well.

Other applications

Coaching also can be applied to a variety of other situations, including the following:

• Attracting and retaining top talent See, Latest HR Trend&, Problem& Can Be Consultant&' Opportunities.

• Ensuring a newly hired or promoted indi\'idual's success. • Responding in a remedial fashion to unproductive 'Mlrkplace beha\'iors.

Training and Certification

The coaching profession is generally unregulated, with no broadly recognized body of knOYJiedge. Howavar, in 2011 the World Association of Business Coaches (WABC) introduced Professional standards for Business Coaches. These standards are available to W ABC merrbers to serve as a guidance document on topics such as responsibility, professionalism, ethics and effective boundaries.

A successful coaching career requires a combination of skills, credentials, e)(IJerience and business acumen. To

qualify for a regular position as an eJCeCutive coach, a person might well need to have a graduate degree in organizational development or leadership development See, Diversify: Could You Be an Executive Coach?

Numerous organizations pro\'ide certification in the coaching COI'll>8tency, including:

• The International Coach Federation. Based in Lexington, Ky., this nonprofit federation is described as the largest 'MlrldiNide resource for business and personal coaches and as a source for those INho are seeking a coach. It offers a Master Certified Coach credential. See, Master Certified Coach (MCC) Application Process.

• The Worldwide Association of Business Coaches. This Canada-based organization for the business coaching industry was established in 1997 as the National Association of Business Coaches. It became the Worldwide Association of Business Coaches in 2002 and serves and develops the U.S., Canadian and owrseas business coaching markets.

• The College of Executive Coaching. This institution pro\'ides personal and executiw coach training, coaching ser\'ices and leadership development programs to professionals.

• The National Career Development Association. A di\'ision of the American Counseling Association, the .. 1-..:-.--• ,..._ .. .-..-. ... n-.~-•-----' A---=-'-=-- -- __.._.._ ..... -- :..-. .• -.1.. -:.a.-. -·-.:...a-.----.:-.-.- .a.-..&&...-. -. •• 1...1:-. --...1 '-

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professionals i~ YJith or interested in career dewloprnent, including professional dewlopment activities, publications, research, public information, professional standards, adwcacy and recognition for achiewrnent and service.

• The Canter for Creative Leadership. This nonprofit institution focuses eJ«:Iusiwly on leadership. It integrates research YJith training, coaching, assessment and publishing for leaders and organizations.

Careers

For HR professionals YJith the right background and credentials, coaching can present significant opporb.mities. Coaching careers usually inwlw external consulting. Getting one's foot in the door for independent consultan1s is an mcercise in self-marketing, net\wrking, ..wb site establishrnen~ credibility establishment YJith the corporate community and an ewr-eJCpanding list of coaching success stories that one can write up and share YJith prospective clients. A 2012 global study by the International Coaching Federation (ICF) notes that the coaching profession was among those that weathered the financial storms of recent years, with owr 41,000 active coaching professionals generating nearly $2 billion in annual rewnue. The global average revenue generated by those providing professional coaching services alone is approximately $48,000. However, virtually all coaches offered additional services such as consulting and training. While the profession continues to grow, it has currently outpaced its research base demonstrating the return on investment (ROI) and return on e>q')ectation (ROE) delivared from professional coaching services. The development of consistent rnetrics that clearly communicate the value of the services is currently one of the challenges to the grov.1h polential for the profession.

While most coaches are external contractors, internal coaches are becoming more common, especially for mid-level employees. Sonne large organizations e~loy coaches on their regular staff.

Acknowledgement-This article was prepared for SHRM Online by Wendy Bliss, J.D., SPHR Bliss is the founder and principal of the Bliss & Associates human resource consulting practice based in Colorado Springs. She has provided coaching services to CEOs, mecutivas, managers and ef11)1oyees in varied organizational conte>cts. A member of SHRM's national HR Generalist and HR Essentials certificate program faculty, Bliss is author of tY«< books published by SHRM and Series Advisor for the Business Uteracy for HR Professionals series co-published by SHRM and Harvard Business School Press. In addition to relying on her own professionalmcpertise and research, she has incorporated existing SHRM Online content in devaloping this 1reatment

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