CHAPTER 2
Coaching Power

Here's what we know about what makes coaching such a powerful tool today.

Even just 20 years ago it was viewed as a fad, something that wouldn't last, another form of corporate snake oil. Yet here we are today with a widely held view that it is perhaps the single most effective leadership development tool out there. It is also viewed as a prerequisite for being a servant leader, being able to create psychological safety, and the ability for people to be their authentic selves in corporate environments. It is known as a valuable skill in the worlds of stakeholder management, employee engagement, the creation of purpose, and shared definitions of success. And it is a vital part of client relationship management skills whether as a private banker, a head of sales, or even, when time allows, for doctors-to name but a few. Even the biggest names in the world of corporate consultancy now struggle to stay ahead of the change curve, especially when it comes to how to stay ahead of the game, of the competition, of innovation, and of the myriad of other challenges that exist for all corporations today.

We know that the power of coaching is derived from the concept that when we create something ourselves, when we discover solutions to problems that are completely congruent to us, then we can own these and we act with conviction. This is because they are ours, we believe in them, we are their co-creators.

Sometimes, while we have the answers deep in our subconscious, we are unable to access those answers unaided; we can be too close to our own trees to see the forest we are standing in. And that is where an objective thinking partner is so valuable, as they can ask the questions we don't see that prompt the answers within us. And when we do that, we take on the role of coach.

We find it extraordinary that nobody would ever think of putting a world class athlete onto the field or into the Olympic Games without a coach, yet they do it every day in business. Almost always, the difference between a gold medal and a bronze medal is not physical, it is mental. It is about attitude, confidence, determination, ownership, and mindset. It is often also about visualizing success and what it takes to get there; yet how often do business people or those leading people take the time to facilitate that in their people and their teams? Sadly, not often enough.

Your Job as a Coach

Some time ago, the dictionary definition of a coach was: "A coach is a vehicle that takes you from where you are to where you want to be." That probably came from the time when coaches were better known to be harnessed to horses. However, that is exactly what the job of a coach is today. Someone who helps take one or more people from where they are to where they want to be, in life, in business, in their careers, or even in their level of happiness. We are people who help others to succeed, to understand, to influence, to mitigate the unhelpful, and to amplify the traits that help ourselves and others to reach goals.

Very often today, that means enhancing our performance within an organization, both individually and collectively.

When we as leaders can help others to achieve that, when we can help people navigate change and uncertainty, when we can help people find solutions that they couldn't find on their own, we become extremely valuable. The time when expertise was the most prized asset of a leader is no longer, now it is the ability to help ourselves and others navigate change. Perhaps it was, actually, ever so. But the advent of Google, AI, and all of the technological advancements in recent years have made it clear that knowledge is becoming a commodity. Real value today resides only in our ability to react and adapt to change with agility.

Hence, the power of coaching.

Coaching Is a Key Leadership Skill for the Future

As we move into the future, leadership skills are evolving to meet the demands of a rapidly changing world. In the past, many of the competencies that were considered essential had a lot more to do with classic management: expertise in a functional area, decisiveness, directing, and having all the answers were some of the most valued aspects in a competent leader.

The skills that the future will demand of leaders are much more attuned with some of the most fundamental coaching skills that we explore in this book and define in the following sections.

Adaptability and Flexibility

Leaders need to be able to navigate uncertainty and lightning-fast changes in the business landscape, while considering the consequences and anticipating the impact. Being adaptable and flexible allows leaders to adjust strategies, make quick decisions, and pivot when necessary. According to a survey by McKinsey,1 94% of executives believe that agility and the ability to quickly adapt to change are critical to their organization's success. Furthermore, the World Economic Forum's Future of Jobs Report2 lists adaptability as one of the top skills needed for the workforce, emphasizing its importance in a rapidly evolving job market.

Coaching skills help leaders to develop adaptability and flexibility by exploring a wider range of options, asking better questions, and creating thinking partnerships that are second nature to the best leaders in order to broaden and enrich perspectives.

Emotional Intelligence

Understanding and regulating emotions is core to effective leadership. Thanks to the extensive work done by Daniel Goleman in this area, we know that emotional intelligence (EI) helps leaders build strong relationships based on trust, communicate effectively across the board, and navigate conflicts with empathy and understanding. According to a report by Gallup, teams led by managers with high emotional intelligence have 50% higher levels of engagement compared to teams with low EQ leaders.3

Coaching skills help leaders gain self-awareness through self-reflection, and equip leaders to put themselves in the shoes of other people by inquiring from a place of curiosity to understand what's truly important to them and find common ground.

Collaboration and Team Building

The times of the "hero leader" are over. The future of work is increasingly collaborative, with teams working across geographies and disciplines, and often assembling for ad hoc projects and then disbanding just as soon as they complete their mission. Leaders will need to excel at building and managing diverse teams, fostering collaboration, and creating an inclusive culture where everyone feels valued and empowered to contribute. This is not only a nice to have, but a proven driver of performance: a recent Gallup study4 found that teams with high levels of collaboration have 21% higher profitability and performance versus industry averages.

Team coaching is a highly specific skill that leaders need to master in order to get teams through the different stages (from forming to norming, storming, and performing) much faster than before, to help accelerate the curve to get to peak performance.

Visionary Leadership

Having a clear vision for the future and the ability to inspire others to follow that vision is key to engage teams at all levels. The best visionary leaders communicate a compelling purpose and motivate their teams to achieve ambitious goals by clearly articulating what's in it for them. Visionary leaders who are able to rally an organization behind their vision ultimately drive superior performance: According to a Deloitte study5 companies with a clear vision statement, often developed by visionary leaders, are 70% more likely to outperform their peers in terms of revenue growth. Visionary leaders who prioritize growth and innovation are significantly more likely to outperform their competitors, reporting up to 7% higher stock price appreciation over three years compared to industry averages.

In this book we explore how the "Emotional Leadership" coaching framework can help you articulate a compelling vision, provide context for what matters, establish what's in it for the organization at large and for the individuals, and set the scene for defining and tracking success, which is key to make the vision more concrete by helping people see how it will ultimately move the needle.

Cultural Competence

In an increasingly diverse and culturally complex world, executives need to lead people of all ages, races, sexual identities, religions, geographies, personal views, and abilities. What we see in our coaching practice is that today most leaders mean well, but they are often afraid of making mistakes that can offend people, and therefore they are holding back from having competent conversations where they can invite these aspects of diversity into the forefront, which we know ultimately drives performance. The data on this front is conclusive: McKinsey & Company's research found that companies in the top quartile for diversity are 35% more likely to have financial returns above their respective national industry medians.6 A study by Boston Consulting Group (BCG) found that diverse teams generate 19% more revenue from innovation compared to non-diverse teams.7 Even though companies have put a lot of effort in recent years in creating more diverse workplaces, our experience showed us that when it comes to creating a culture of inclusion and belonging, the missing link...