30 Coaching in a Business Environment

Overview

Coaching in a business environment is a method in which a more experienced or skilled individual provides an employee with advice and guidance intended to help develop the individual’s skills, performance and career.

Coaching is a highly individualized process that depends on both the nature of the employee and the coach’s knowledge, skills and abilities. However, coaches have several recognized techniques and tools to draw on in almost any coaching situation.

A coaching culture within an organization includes more than formal coaching; it is a culture in which coaching behaviors are used as a means of communicating, managing and influencing others. It is also an environment 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.

Definition

The hallmarks of coaching are that it is personalized and customized and that it is usually done one-on-one and over a period of time, and with a specific business objective in mind. Coaching is similar to, but distinct from, mentoring. The latter is a career development method whereby less experienced employees are matched with more experienced colleagues for guidance either through formal or informal programs. Coaching is frequently used to assist individuals as they prepare for or move into new assignments, improve work habits, adapt to a changing environment or overcome specific obstacles.

Coaching is not counseling as a step or technique in a progressive discipline system, nor is coaching teaching or instruction; it is a process of guiding the person being coached from one level of competency to another.

Fundamentally, coaching is a business relationship between the organization, the coach and the person being coached, and it involves a tailored approach. Depending on the position of the person being coached and the purpose of the coaching, different approaches are called for.

Value

Coaching is a commonly used method of employee development that has generated positive business outcomes. A strong coaching culture has been linked to increased business performance and employee engagement, according to a 2015 survey from the International Coach Federation (ICF) and the Human Capital Institute (HCI).¹ The survey found that 51 percent of respondents from organizations with strong coaching cultures reported revenue above that of their industry peer group, and 62 percent of employees in those organizations rated themselves as highly engaged.

According to the ICF/HCI survey, respondents reported business improvements in the following five areas:

• Improved team functioning.
• Increased engagement.
• Increased productivity.
• Improved employee relations.
• Faster leadership development.