Why Is Coaching Becoming More Popular?

Why Is Coaching Becoming More Popular?

What is driving the uptake of coaching, and what are its benefits?

by Andrew Cooke, Growth & Profit Solutions

Organizations are increasingly using coaching as a means by which to grow and growthandsupportdevelop their people and businesses. What is driving this growth?

For one thing, the ever-increasing pace of change requires organizational leaders to develop quickly, and in the context of their current jobs. Traditional training programs are often set up to train or educate large numbers of people, but not to focus on a specific individual’s development needs. Coaching offers an individualized development option without removing leaders from their work.

Second, the war continues for leadership talent. As the hunt to find and retain talent intensifies, many companies have viewed coaching as a way to compete in the marketplace to attract and retain that talent.

Third, organizations find that the feedback gained through coaching seems to stick better, and leaders liked the opportunity to work with an unbiased external professional. More leaders, as well as many intact teams, have found the coaching process helpful for their development—and as leaders grew as executives, they look to develop their reports and cascade the coaching process to them in turn.  This creates leverage and synergies over and above those realized from just coaching the leaders.

Coaching is used to assist high-potential or high- performing leaders, rather than those experiencing performance problems. Today, name-brand organizations such as Dell, Johnson & Johnson, Wal-Mart, and Unilever have large managed coaching programs serving countless executives and use pools of highly-screened coaches, in all parts of the world.

Coaching is also moving internally, with many organizations using external coaches to train internal practitioners to coach their leaders. This approach is especially useful for companies who view their organizational culture as highly unique, and are looking to build this into their culture and develop the necessary in-house capabilities.  Internal coaching is most frequently being implemented at the mid-manager and first-line supervisor level.  External coaches remain the most popular solution for executives.

Organizations are also increasingly looking to create a coaching culture. Companies are training their leaders to better coach others in work-related situations. As more organizations understand the results of coaching, they are offering leader-as-coach training.

The benefits include one-on-one focused development, specialized personal learning, confidentiality, and personal accountability for improvement. In addition, coaching provides leaders the opportunity to develop individual capabilities faster than most instructional programs can, and in areas where training programs do not exist.

So, coaching is becoming more important and intrinsic to developing a successful organization.  External coaches are increasingly used to assist in the development and retention of senior executives and leaders, whilst working with their reports to develop leaders-as-coaches and assist in the creation of a coaching culture.  This builds the capabilities and bandwidth to grow and develop their people and businesses, and helps organizational leaders to develop quickly against a backdrop of an ever-accelerating rate of change.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Where Leaders of the Future Will Come From…

 by  Andrew Cooke, Growth & Profit Solutions

Forecasts on where the future leaders will come from, and where they will not!The Ticking Timebomb for Talent

Are you worried about the lack of management and leadership talent in your business?  You should be.  There is an underlying shift in demographics that is driving this – and it isn’t going to go away.  The baby-boomers are beginning to retire in large numbers and this represents a major exodus of experience and talent.  This problem is being compounded by the influx of a smaller, less-experienced generation of workers, managers, and leaders.

How did we get into this mess?

Let’s be honest here, business has only looked at its available pool of talent only in the short-term.  A few forward-thinking companies may have looked at this issue over a slightly longer time the horizon, but they are few and far between.  The problem is that business is driven by short-term results, and this is at the expense of the long-term.  Leadership is increasingly short-term as a result and this is reflected in the average tenure of CEOs continuing to decline.

So where are we now with our leadership pipeline, and where will we be in the future?  What will this mean for our ability to recruit and retain the talent we need to survive and thrive both now and in the future?  The 2012 Global Leadership Survey from SHL provides a worldwide view of leadership potential spanning 25 countries.

The Findings

The countries which currently today have the most effective leaders are not those with the greatest leadership potential.

Developed Countries Decline, Developing Countries on the Rise

Notably, it is the developing countries that will have greatest leadership potential in the future, in part because they have the populations that are large and growing, and that many developed countries which will experience leadership shortages where the population growth is low.  This is summarized in the graphic below:

Why is this happening?

The main reason for this is the demographic shift that is occurring, with baby boomers beginning to retire and the next generation of the workforce (Gen Y) being significantly smaller in size and with less experience.  The implications as regards this for future effective leadership are:

  • For developing countries –rising education standards and a culture of entrepreneurialism are some of the environmental factors that are driving emerging economies.  They have a huge growth opportunity if they can identify, nurture and develop this potential.
  • For developed countries – although they have a strong supply of leaders today, they will be impacted if they continue to fail to invest in learning and development to cultivate their future supply of leaders and remain competitive.

What constitutes an effective leader?

An effective leader has many of the key leadership characteristics including:

  • The ability to build relationships
  • The ability to solve problems
  • The ability to communicate effectively
  • The ability to think laterally
  • The ability to influence
  • The ability to respond positively to change
  • The ability to organize
  • The ability to motivate and be motivated

Potential Leaders of tomorrow

Leaders of tomorrow are those individuals who exhibit some of the key leadership characteristics (outlined above) but require additional development to realize their full leadership potential.

Companies need to build their leadership talent pipeline and look outside their home markets for further talent. Understanding the supply of leadership is crucial for organizations.  As such, they need to develop and invest in their future leadership talent for the long-term in order to remain competitive in the global economy.

The Four Quadrants

Leadership Development 2b

Countries fall into four quadrants:

In The Talent Vacuum – countries with leadership gaps both today and in the future;

Talent Leapfroggers – countries in short supply of leaders today but have a huge pool of leadership potential in the future;

Talent Timebombs – countries with strong supplies of leaders today and gaps in leadership supplies in the future;

Talent Trailblazers – Countries with strong supplies today and in the future;

Depending on your geography you will fall into one of the four quadrants – the question is, given where you are, what are you going to do to address the long-term problems and implications in the now?

Five Steps to Cultivating Leadership Success

So what can you and your business do to build long-term success by building the necessary leadership skills and future pipeline?  There are 5 steps:

  1. Identify the behaviors and skills which make a successful leader in your organization;
  2. Have a complete overview of the leadership potential across your organization and don’t restrict that view to only those you think are high potential;
  3. Using data, benchmark your people against competitor talent and identify leadership shortages to avoid succession risk;
  4. Focus on development interventions including where to spend learning and development budgets and apply this across the business;
  5. Take a global view of where your leadership talent is located and be prepared to use creative strategies to source talent across borders to fill leadership gaps

What are you doing to develop and retain leadership and high-potentials in your organization?  Do you have a long-term view or are you driven by short-term requirements? Share your ideas, insights, and experiences here for others to benefit.

Share the knowledge, share the wealth!

Share

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.