The Power of a Coaching Culture on Organizational Performance Barbara A.F. Greene, ICF MCC Career Partners International – San Antonio businesses face a myriad of challenges, both externally and internally. Overcoming these challenges can be the difference between success and failure. Many external issues are beyond an organization’s direct control…natural disasters, global economic turmoil, etc. Internal challenges, however, can present a company with significant opportunities to stimulate and energize the organization. Internally, organizations face executives retiring in record numbers and many positions disappearing due to measures. Fierce competition has employers battling to retain their very best talent while less experienced Generations X and Y desire to accelerate their progression up the corporate ladder, demanding faster and more attention than past generations of employees. The overall result leaves numerous organizations struggling to achieve business imperatives with little or no astute leadership, significant demands on all employees including more complex work and longer hours, and fewer resources to overcome these challenges. Focusing time, energy and precious resources in the areas can propel organizations past these challenges and advance their business performance. For example, executive and coaching have long been utilized within organizations to expedite the development of leaders. Coaching is a tremendous tool for employee and organizational success. During our November 2012 webinar titled, “The Power of a Coaching Culture on Organizational Performance,” 1333 registrants were asked how their organization viewed coaching. Overwhelmingly, respondents recognized the of coaching in their organizations with 40% indicating it a desirable skill for leaders, 20% requiring it as a competency of their leadership and 30% viewing it as a core management
competency across the enterprise. Effective one-on-one coaching can positively impact retention and performance, one individual at a time and result in some cascade effect of development to others within the organization. While one-on-one coaching has its place, without a more comprehensive approach the organization may not necessarily be able to achieve a sustainable competitive advantage. A Coaching Culture Enter the world of a coaching culture. A coaching culture expands coaching to a broader scope, impacting the entire organizational structure and energizing all employees from top to bottom and laterally. A company that is intentional integrating a coaching culture as a comprehensive and enterprise-wide approach has the potential to move its entire workforce toward peak performance. The success of one manager is exponentially multiplied. Employees at all levels accept ownership and accountability for their work product and relationships. They require less daily and direct supervision from managers as they develop their skills and strive to reach their full potential. This propels the company to achieve its top potential due to the focus, positive energy, and attitude of all its workers. Every employee is committed to success. The company reaches its strategic and financial goals with a greatly increased success rate. According to a study by Bersin & Associates, organizations that effectively prepare managers to coach are 130% more likely to realize stronger business results and 39% stronger employee results through engagement, productivity and customer service. Additionally, organizations whose senior leaders “very frequently” make an effort to coach others have 21% higher business results. In a work context, coaching is about improving human capacity to deliver superior organizational results. The power of a coaching culture in an organization can result in expanded improvements in: Skill development at all levels Creation of a leadership pipeline Engagement by all employees Retention of employees at all levels Increased business performance A coaching culture impacts three key factors in achieving positive business results: A robust and aligned strategy Optimal people performance Knowledge
A Robust and Aligned Strategy Employees have the chance to develop a “solutions” focus that is future oriented, as well as the commitment needed to succeed. Relationship development across the organization enhances interpersonal contacts among all employees and clients. Everywhere there is discovery and learning, as all employees see the relevance and alignment of their goals to the organization’s strategic plan. This was clearly experienced by Ontario Shores Centre for Mental Health Sciences who shared its journey to create and build a coaching culture during our November 2012 webinar. Following the onset of its coaching culture initiative, 33% of participating managers noted improvement in their interpersonal skills and 71% felt closer in working towards their goals. Optimal People Performance Optimizing the performance of employees is naturally achieved with a coaching culture. Leaders inherently bring out the best in employees throughout the organization and they begin to embrace and engage in critical thinking. A commitment to performance goals, both personally and professionally, is enhanced and performance barriers are overcome. Everyone’s passion, drive, and ambitions are aligned, energizing the entire organization. Ontario Shores achieved significant shifts in people performance as a result of its transformation process. In addition to improvements in employee communication and conflict resolution, employee engagement scores rose 23% and management engagement scores rose 30%, both surpassing best-practice benchmarks. Knowledge Management Organizations are challenged to manage knowledge as multiple generations enter and exit the workforce. A coaching culture bolsters the effective and efficient transfer of critical knowledge and refinement of skills throughout the workforce. New solutions can be tested in an open, courteous and contributory environment. Every employee receives validation of his/her knowledge, expertise, and contributions. At Ontario Shores participating managers experienced an increased sense of self and 92% gained new insights and skills as a direct result of the journey. During the webinar, the question “What is your organization doing to help leaders/managers be better coaches?” was posed to attendees. The responses, shown in the following chart, clearly indicate that most companies provide some form of coaching development and a significant
Based on their findings, key themes were identified and the team developed three phases essential to successfully build and sustain a coaching culture. The following model shows how each phase builds upon the other for a comprehensive approach. First, the organization must plan to create awareness and engagement. Everyone needs to recognize coaching as a tool for: Growing, both personally and professionally Developing high-performing individuals and throughout the organization Creating commitment to the development and achievement of business objectives Building a learning organization that can adapt and respond quickly to change During this planning phase, key stakeholders are identified and must clearly understand what coaching is, what the initiative will entail, and what results it will bring to their organization and their employees. Leaders must be encouraged to set the example and to publicize their support of the development of coaching capabilities in their managers and up-and-coming leaders. The coaching outcomes must be linked to the success of the business. Second, to learn and apply the process, coaching capabilities are grown using a coaching model that is easily teachable, repeatable, and scalable. Key leaders and managers serve as role models of the desired coaching approach which is linked to the development of strategy, the delivery of business results, the exchange of knowledge within the organization, and the development of personal and professional successes. Again, coaching is linked to the success of the business. Last, the sustain phase is critical to the coaching culture’s success. To flourish, a coach approach needs to be fully integrated in all talent management and other development initiatives. The organization must recognize and reward coaching culture behaviors and continue to develop skills, offer opportunities and projects where young leaders stretch and practice their skills, and provide constant feedback on personal progress for all employees. Measures for tracking the return on the company’s investment must be developed and constantly reviewed to keep the coaching culture at the forefront of strategic planning. For a coaching culture to truly flourish, a coach approach becomes the fundamental core of the organization – the heart, if you will – infusing every aspect of the business.