Advice from Diane Yates, Associate Executive Coach, Working Transitions.
The Covid-19 pandemic and its economic consequences, followed by Brexit in 2021, brought challenging times for organisations. The cost of living crisis in 2023 and the substantial increase in energy costs intensified problems, resulting in significant changes and disruptions in senior leadership roles throughout the UK.
2022 saw higher levels of CEO turnover than ever before. That trend continues this year, with statistics showing that 106 CEOs left their roles in the first half of 2023, impacting performance, values and culture, stability and morale.
As disruption trends in senior leadership continue, progressive organisations are increasingly turning to coaching to support employees and senior leaders during transition periods.
One of the pitfalls many organisations suffer is the overuse and misapplication of the term 'coaching' by leaders. Often, line managers label diary entries as 'coaching' when, in reality, they're not applying coaching techniques or supporting participants effectively.
Currently, only 6% of organisations* have full-time qualified internal coaches. Therefore, investment in external, professionally qualified and experienced coaches brings quick results. Creating a psychologically safe environment to explore senior leaders' emotions can encourage a positive attitude towards change, facilitate a growth mindset, and determine practical strategies to build resilience for themselves and their teams.
Furthermore, organisations that invest in coaching also enjoy intangible benefits such as improved relationships with direct reports and key stakeholders, more effective leadership teams, precise strategic direction, better articulation of goals and shared purpose, and better management of difficult conversations.
The evidence for coaching is compelling:
- In a report from the Investment Banking Firm FMI, 87% of survey respondents agreed that coaching has a high return on investment, with the coaching engagement having qualitative results across multiple levers, such as increased revenue, increased productivity, increased engagement, and increased retention.
- A recent global study found that coaching had a 788% return on investment thanks to increases in productivity and employee retention.
- The International Coaching Federation reports that coaching results in a 70% increase in individual performance, a 50% increase in team performance and a 48% increase in organisational performance.
- Independent research from De Haan (2021) concludes 'we can now be fairly certain that coaching does make a significant difference… evidencing that the coachees would be better off on average than about 72% of the control group that has not received coaching, over the same period'.
This research demonstrates the measurable business improvements and a good return on investment senior leadership coaching can deliver. Through coaching, leaders can strengthen their resilience and model good leadership even during challenging times. They can learn to lead constructively and authentically, resulting in better team performance and motivation, regardless of economic climate.
In conclusion, organisations that invest in professional coaching for their senior leaders can achieve stability in retention and engagement scores while providing emotional support to leaders to better support their teams.
To explore how professional coaching can support your senior leaders, check out Working Transitions Leadership Coaching Services and their Workplace and Personal Development Workshops. Or contact Sue at [email protected]/ 01604 744101 now.
*Gartner Report 2023 - Coaching: Maximising Business Impact (Gillian Pillans, Rebecca Jones and Nicolas Caesar)