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MANAGING TALENT WITH LEADERSHIP COACHING 

MANAGING TALENT 

WITH LEADERSHIP COACHING 

By Paul Larson & Matthew Richburg, Ph.D., Right Management Consultants 

(1.) OVERVIEW OF L EADERSHIP C OACHING 

What Coaching Is and Does 

We define Leadership Coaching as a personal development process designed to enhance a 

leader’s success in achieving his or her professional objectives within the context of an 

organization’s values and business goals. While coaching focuses on the individual, its 

successful implementation brings significant benefits to both the individual and the 

organization. These benefits include: retention of valued talent, increases in productivity, 

development of high-potential performers, greater job satisfaction for the participant and 

achievement of organization objectives. 

To borrow a metaphor from agriculture, coaching is about selecting the seed, understanding 

the environment in which it is planted, assessing its early growth, providing the nutrients 

needed for further development, measuring progress, pruning or grafting where necessary, 

addressing obstacles and challenges in the environment, and harvesting the fruits. 

Coaching in its Cultural Context 

High-potential talent does not reach full development in a vacuum; rather, leaders are always 

part of and influenced by a corporate culture. If coaching is to be effective, it must be 

embraced by the organization’s culture and supported by its infrastructure. 

Writing in The New Yorker in 2002, Malcolm Gladwell addresses what he calls the “talent 

myth.” Using Enron as an example, Gladwell points out the fatal flaw of putting all of an 

organization’s resources into hiring only the “stars,” rewarding them disproportionately, and 

pushing them into greater and greater positions of authority. We know where that ended. 

Gladwell reverses the polarity of this model when he observes “the talent myth assumes that 

people make organizations smart. More often than not, it’s the other way around.” 

Smart organizations often employ leadership development both in succession planning and 

for building internal “bench strength.” In this context, leadership coaching assists an 

Copyright © 2003 Right Management Consultants, Inc. 

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organization in using its resources optimally to assure that the group has: The right number 

of people, possessing the right kind of talent, at the right skill levels, in the right positions, 

at the right time and in the right geographic locations. Gaining bench superiority means 

nourishing inherent strengths and correcting weaknesses, where possible. Done right, 

coaching accomplishes both. 

Speaking at a seminar hosted by the Professional Coaches and Mentors Association in 2002, 

Coach Julio Olalla described how coaching works. He drew these distinctions: Teaching 

addresses information; training addresses action; coaching addresses observations. 

Transformational learning takes place in organizations when we have a conversation that 

causes us to look at things differently. In Olalla’s model, we observe, we take action, and we 

get results. However, when our results aren’t what we wish, we go back and change our 

actions. A coach will cause the leader to reflect on the original observations and thereby 

produce a change in action. The evaluation of observations or review of actions takes place 

in coaching conversations – a vital concept explored in this chapter. 

The culture and infrastructure of an organization must allow and support this conversation 

if transformational learning is to happen. Laurence Lyons, in his book Coaching for Leadership 

(co-edited with Marshal Goldsmith and Alyssa Freas), calls these conversations a structured 

dialogue. As he writes, “…dialogue is at the heart of coaching… the coach has no corporate 

authority whatever. But through dialogue alone, the external coach exercises considerable 

influence. With neither formal authority nor direct accountability, the coach’s greatest 

ambition is to profoundly affect the way the executive thinks and behaves.” 

In this coaching equation, it is important to note two operational characteristics of the 

relationship. 1. The outside coach should have no personal agenda. The coach’s job is to 

objectively manage the delicate balance of addressing effective business outcomes alongside 

the leader’s desired outcomes. [For consistency and clarity, throughout this chapter, we will 

use the term “leader” to refer to the individual being coached.] 2. The outside coach should 

strive always for a relationship as partner, colleague, ally or equal – never as a “superior” or 

“authority.” 

QUOTE: 

“Coaching is an action-oriented partnership that, unlike psychotherapy which delves 

into patterns of the past, concentrates on where you are today and how you can reach 

your goals.” 


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- Time, 10/16/00


(2.) THE C ASE FOR C OACHING 

Coaching Catches On 

In recent years, interest in executive coaching has exploded. More organizations are using 

coaches, and coaching has attained widespread acceptance as a powerful and legitimate 

intervention. Why this popularity? We asked attendees at a series of executive briefings on 

leadership coaching, and they noted these primary reasons: 

- Jobs are more complex. 

- Leadership challenges are more complex. 

- Feedback is needed, yet rarely received. 

- Organizations have a flatter structure, so “people issues” are even more important. 

- During periods of rapid change, effective leadership is more important than ever. 

- People are more open to outside help; some even welcome it. 

- It is a sound investment. 

The last one rings a loud bell for most organizations. Hiring a coach means an investment of 

an organization’s time and resources. Since so many leaders are using a coach, there must be 

a convincing case for coaching. There is: Quite simply, coaching works. And when it works 

well, it raises both individual performance outcomes and their implied operational 

efficiencies and bottom-line reflections for the organization. 

QUOTE: 

“The ROI with executive coaching is often very high – especially if you calculate the 

value of high-level executive salary and the return-on-improvement in skill level and 

decision making.” 

- Training & Development, 3/1/99 

C OACHING W ORKS: REAPING R ETURNS ON I NVESTMENT 

Effective professional coaching enhances leadership performance and, ultimately, 

profitability. Here’s why. 

A synergistic and focused relationship leads to growth and change. The relationship 

between the coach and the leader is a powerful tool – there is accountability, candid 


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conversation and trust (embedded in the confidential nature of the relationship) that 

facilitate personal growth. 

Clear goals and a focused endeavor lead to better outcomes. The old saying goes, “When 

you don’t know where you’re going, any road will do.” The same applies to coaching. The 

focused nature of coaching facilitates learning that readily impacts leadership behavior and 

the bottom line. 

Coaching is contextual. Because coaching occurs in the context of work, it is tied to realworld 

issues and is relevant to the business and to the culture/competencies of the 

organization. Accordingly, it affords opportunities for growth that are inherently tied to the 

goals and objectives of the organization. 

Coaching is a systemic intervention with multiplier results. Effective coaches include the 

perspectives of the leader’s boss and those of important colleagues, so that development 

occurs system wide. When one leader improves her performance, benefits ripple out to her 

team, her peers and other departments. The return on investment grows. 

Coaching focuses on using new skills and more effective behaviors. A coaching relationship 

allows for behavioral change in a “safe” nurturing environment that provides a real 

opportunity to practice new skills. Successes are rewarded and feedback is provided for 

ongoing corrections. Because most development is incremental rather than revolutionary, a 

coach can reinforce successful growth and continue to move the performance targets 

forward. 

Executive development occurs through insight and with practice -- not theoretically, but 

applied on the job under real-world conditions. 

Coaching helps leaders develop emotional intelligence. Recent research strongly suggests 

that emotional intelligence forms the base of effective leadership. Emotional intelligence 

differs from conventional analytic and technical ability, and it is apparently best served by an 

individualized approach that incorporates extended practice and feedback. Coaching 

provides a framework for recognizing and working with the drives and feelings in oneself 

and in others. 

Coaching impacts the bottom line. Leaders whose work is satisfying are more effective and 

more productive. While measurable data may be in short supply, most of us have witnessed 

this “expansion affect” in the workplace when coaching does its job. 


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(3.) THE COACHING P ROCESS 

The goal of coaching is to increase the effectiveness of the organization’s leadership talent 

through interactive guidance and learning. This achievement, in turn, helps assure greater 

success for the organization as a whole. Coaching methodology can be used to develop the 

leadership skills of executives, managers, professionals and other promising leaders at all 

levels. While details vary to suit characteristic levels, our coaching process assumes this basic 

format: 

The coaching process at our organization begins by enrolling the individual leader who is to 

be coached. The client organization usually selects these leaders in consultation with the 

coaching consultant, based on factors such as corporate goals, affected levels of leadership 

influence, needs of specific individuals and their direct reports, and other salient 

considerations. 

The coach and the leader then meet and begin building a relationship of trust by examining 

their respective roles and mutual goals. The coach explains the process, sets and fine-tunes 

expectations, addresses confidentiality and gains the leader’s commitment. To further build 

trust, the coach openly discusses his or her experience and background and, through oneon-one 

meetings, discusses the leader’s context, issues, misgivings and questions while 

exchanging organizational information and getting well acquainted. 

In fact-finding and feedback sessions, the coach and the leader review various assessment 

data and select leadership tools, techniques and exercises to use in the coaching process. 


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During this phase, the coach may “shadow” the leader to see leadership principles applied in 

everyday situations, such as meetings with bosses, peers and subordinates. 

Together, the coach and the leader create a development plan that guides their progress. 

They identify areas of strength and those that require additional development. They also 

prepare to review their plan with the organization’s decision maker. 

Then, after agreeing on basic approaches, the main work begins: coaching to the 

development plan. The coach mentors the leader, tracks behaviors and behavioral changes, 

and gives constructive feedback in a way that supports positive change. The coach also 

verifies methods to measure the leader’s progress. 

As the coaching experience produces the desired results, it’s time for closure and evaluation 

of the process. The coach and the well-coached leader review joint accomplishments relative 

to stated objectives and develop long-term goals for the client’s continued growth. The 

coach then confirms results with the organization’s decision maker, explains their plan for 

next steps, and gets commitment for ongoing support of the leader. 

(4.) COMMON C ONDITIONS FOR C OACHING 

QUOTE: 

“Inside every successful business person is an even more ambitious one trying to get 

out. He or she just needs a little help.” 

- Australian Financial Review, 10/9/00 

Many events and situations merit the constructive intervention of coaching. Consider these 

scenarios: 

The organization has hired a new Chief Operating Officer to engineer a turnaround of a 

significant operating loss. Coaching can help the new COO align quickly with the 

organization and work with many levels of personnel to accomplish business objectives. 

Chafing under a new boss, a valued member of executive management appears to be taking 

his difficulty out on subordinates. Coaching can help the executive understand what’s 

happening, why, and how to get his career back on track and rebuild relationships. 


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The company wants to promote a seasoned manager to direct a large and complex line of 

business. Coaching and assessment processes can be offered to help ensure her successful 

transition into deeper waters and to use her strengths to navigate uncharted territory. 

A longtime CEO with a history of success is two years away from retirement. Now’s the 

time for succession planning, beginning with the CEO’s favorite candidate. Through 

assessment and coaching, this leader can gain competencies and confidence to step into large 

shoes while cultivating supportive relationships with staff. 

A superior analyst and technician, the CFO is a demanding boss who alienates subordinates, 

sending turnover rates through the roof. Coaching can help rehabilitate and “save” this 

valuable resource through a sensitive program of behavioral change and accommodation to 

the needs and feelings of others. 

(5.) CATEGORIES OF L EADERS AND A TTRIBUTES OF C OACHING 

Because there are different kinds of leaders who are at various levels of development or 

potential, it is important to attempt to define each case accurately before beginning the 

process. Other sections of this book set forth and define a useful framework of categories 

based on degree of perceived leadership effectiveness, ranging from Misfit to Solid Citizen, 

to Keeper, to Superkeeper. Another metric, which we find essential in our work, is the 

degree of impact the leader is having on the organization—which might be said to be a 

combination of level or position in the organization, and his or her stage of professional 

development. The categories of this metric are Emerging, Developing, and Strategic. The 

diagram on the next page illustrates how these concepts inter-relate. 


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Super- 

Keeper 

Keeper 

Solid 

Citizen 

Misfit 

Increasing Leadership Effectiveness 


Emerging 

Superkeeper 

Emerging 

Keeper 

Emerging 

Solid Citizen 

Emerging 

Misfit 

Developing 

Superkeeper 

Developing 

Keeper 

Developing 

Solid Citizen 

Developing 

Misfit 

Increasing Business Impact 

Strategic 

Superkeeper 

Strategic 

Keeper 

Strategic 

Solid Citizen 

Strategic 

Misfit 

Emerging Developing Strategic 

Obviously, there are many possible permutations in the way one would approach coaching 

various types of individuals, and that approach would be influenced by their positioning in 

the organization. The sections that follow, however, focus on describing the rationale, 

coaching actions, and outcomes typically represented at each of the three broad levels of 

business impact, and gives real examples from our practice of how the coaching process has 

played out with individuals falling within each category. 

Emerging Leader. The business case for engaging a coach at this level might be to meet 

succession needs, to groom a high-potential leader or to help drive the organization to a 

different plane. 


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Expected outcomes might include retention, readiness for upward mobility and improved 

chances for success in the next position. Here the coaching conversation might include: 

- Self-understanding and insight through feedback 

- Exposure to new behavioral concepts and broader organizational awareness 

- Exposure to how the business world works at the top 

- Learning organizational and individual tolerance to change 

- Learning to share the spotlight 

Example: 

A large manufacturing firm had identified thirty high-potential executives, one of whom was a young 

engineer who embodied many of the qualities the company needed to become more lean, nimble, and 

innovative. They initiated a coaching relationship to prepare him for greater responsibility and the 

opportunity to make a significant contribution. The coach implemented a thorough program of assessments 

of the executive and those around him. 

This process confirmed strengths and highlighted limitations to be addressed. The leader in 

question was shown to be not tough enough and not consistent in the messages he 

communicated to his people. He would get good ideas but did not follow them through or 

convey them effectively over time. The coaching process brought new focus and direction to 

his work. He was given more opportunity to be exposed to senior management and to 

organizational strategy and, more importantly, to see his own work in the context of that 

strategy. He mapped out a clear career path to take him where he needed to go, which 

resulted in his becoming the first person to make a cross-functional move in his company. 

Since the coaching experience, he has been promoted twice and has developed a personal 

working relationship with the CEO. 

Developing Leader. In a typical scenario, this valuable leader is a great thinker but may not 

be adept at mobilizing others or addressing practical consequences. This leader might be a 

nonconformist or loner. The business case for coaching intervention is obvious: To address 

performance issues that are impacting the business. The desired outcomes are improved 

performance, retention, and strengthened relationships with key stakeholders, such as the 

board. Here the coaching conversation and activities might tap into many components: 

- Gaining self-understanding and insight 

- Changing specific behaviors, notably addressing derailment behaviors 

- Addressing the immediate concerns of the leader within the context of 

organizational issues 

- Facilitating stronger bonds with the boss, peers, directors and others 


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- Offering sounding-board opportunities to air frustrations, successes and challenges 

to the corporate culture 

Example: 

A finance executive at the director level of a public company wanted to become a vice president but was at a 

standstill. He was an MBA in a blue-collar environment, and those at the VP level perceived him to be an 

empire builder. He badly wanted to keep from derailing his career, but aspects of his behavior were causing 

serious relationship problems with the VPs. The company wanted to help him succeed and to become more 

effective and productive in his job. 

The coaching process had to be done confidentially, involving only the executive, HR, his 

boss, and the CEO. Because this constraint prevented using the normal 360-degree 

assessment, the coach devised an “introspective 360” process involving journaling to 

examine a number of key events to see who was thinking what, how people reacted to each 

other, what alternative strategies might be employed and what the actual outcomes might be. 

This technique enabled the leader to see how he was being perceived and what he had to do 

to change this perception, most notably his communication style. He was assigned a major 

project that provided him with a key opportunity to prove himself to his colleagues. He was 

highly successful in this role and able to demonstrate company-wide coordinating 

capabilities in a highly visible arena, through which he gained the respect of those who had 

previously not liked or trusted him. As a result, he was promoted to vice president. 

Strategic Leader. The business case for engaging a coach at this point might be to assimilate 

new leaders or to build a more united executive team. The expected outcomes might be to 

generate more incisive strategic thinking, to improve senior-level bench strength and to 

retain valued talent. Here the coaching conversation focuses on: 

- Thinking more strategically 

- Building specific skills, such as constructive confrontation 

- Developing leadership skills 

- Providing a sounding board 

Example: 

A CEO of a large organization was floundering. Key issues included poor stakeholder relations and 

organizational alignment. A vision was in place but the alignment was lacking because the CEO was 

unclear about the expectations of his board and therefore could not communicate these to other stakeholders. 


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A coach was engaged to address the situation on multiple fronts. Assessments and 

interviews took place not only with the leader but also with multiple board members and 

eight staff members to achieve common understanding and agreement of what should be 

expected of the CEO. The process confronted interpersonal skills but also, to a large degree, 

systemic organizational and cultural issues that were preventing the CEO from functioning 

more effectively. 

The result was that the CEO improved dramatically in his ability to be leader to both the 

board and the rest of the organization. They achieved increased clarity regarding the board’s 

needs and expectations, permitting him to convey these and act upon them confidently with 

the full range of stakeholders with whom he worked. Four years later, he was still CEO and 

the organization had experienced impressive growth. 

(6.) ISSUES S URROUNDING C OACHING 

The consideration of coaching, or the initiation of a coaching relationship, sometimes raises 

a variety of issues. Here are some, with our thoughts on each. 

Will it work? When considering the use of coaching, some organizations are concerned that 

the process may not work. To handle doubts, we generally ask questions—coaching 

questions—to probe the resistance or problem. For instance, we ask: “Why do you think it 

might not work?” or “Are you prepared for it not to work?” At this point in the 

conversation, we can usually address the real reason for concern and move forward with a 

constructive coaching program 

What’s the Return on my Investment? One natural question pertains to whether anyone can 

prove that coaching provides a value to the organization at least equal to the investment 

required. Here we typically stimulate dialogue by encouraging an analysis of several factors: 

- What is the issue you are addressing? 

- What is the current situation relative to this issue? 

- What do you envision as the desired outcome? 

- What is preventing this desired outcome? 

We then discuss the estimated financial impact of not addressing the above issues, in very 

concrete terms. In other words, what would be the dollars lost in each of the following 

areas? 

Revenues $_____ 

Profitability $_____ 


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Turnover of key people (total salaries X 2 =) $_____ 

New product development $_____ 

Missed market opportunities $_____ 

Customer satisfaction $_____ 

Other $_____ 

Total estimated impact $_____ 

While there is no guarantee of literal return on investment, an organization can often 

pinpoint with surprising specificity what the costs could be of not trying to address the 

problems at hand. 

What about Confidentiality? Confidentiality is fundamental to a successful working relationship 

between the coach and the leader. To make the kinds of progress toward personal growth 

and self-awareness that are central to coaching, the leader must be able to view the coach as 

a trusted confidante, with communications between them protected by the ethics of the 

relationship. We make the ground rules clear in advance – that a boss should not ask a coach 

to break this confidence to provide information to the organization, as any perceived gain to 

the organization would usually be more than offset by the subversive effect this would have 

on the coaching relationship. 

What is The Boss’s Role? The coach is in the center of a complex relationship that includes the 

individual being coached, his or her manager, Human Resources, other superiors, peers, or 

subordinates who may be involved in the feedback/assessment process. In this mix, the 

participation, commitment and support of the individual’s boss will make a huge difference 

in the success of the coaching. If the boss is unengaged or questions the value of the 

process, we take special pains to help the boss understand his key role both in providing 

important input to the assessment phase and in delivering feedback critical to the client’s 

self-awareness and progress. In truth, often a key goal of the coaching process is to improve 

the relationship between the boss and the leader being coached, as a leader’s ability to be 

effective in a particular job is most often closely tied to the quality of this relationship. 

The Merits of External versus Internal Coaches. Everyone in an organization has a personal 

agenda. Most people are genuine in their concern for their own best interests and the 

organization’s. Nevertheless, it is challenging for most of us when dealing with those with 

whom we work regularly not to let personal or political dynamics color the interaction. A 

coach coming from outside the organization will be less likely to have a personal agenda that 

would negatively impact the relationship. The coach’s primary agenda in this relationship 

must be consciously to balance the business concerns motivating the organization to initiate 

the coaching with the leadership and career objectives of the individual being coached. 

When the coach is positioned as a partner or equal—not as a “superior”—these critical 


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organizational and individual priorities can take precedence and the process can proceed 

unimpeded. 

(7.) CONCLUSION 

Careful, responsible leadership coaching works. It works on several levels of learning. The 

first gain comes in the leader’s incremental improvement in skills and practices; then the 

reshaping of paradigms and patterns of thinking to include broader perspectives, different 

assumptions and an altered frame of reference. During the last phase of successful coaching, 

the leader will see and sense a transformation, a rewarding personal shift in point of view. 

The coaching process is designed to bring out the best in people, with a focus on business 

results. The organization benefits in definite recognizable ways from its investment in 

coaching, whether that success is assessed as an improved bottom line, higher employee 

morale, better employee relations or progress in other business indicators. At its best, 

coaching produces lasting value-added results for individuals and for their organizations 

while reinforcing and enriching the climate for continued success. 

QUOTE: 

“As a result of coaching, clients set better goals, take more action, make better 

decisions, and more fully use their natural strengths.” 

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Sausalito.net, August 2000 

SEVEN KEY ELEMENTS OF COACHING 

Effective coaching is not amorphous. It is grounded in certain basic understandings, which 

we call “The Seven C’s of Successful Coaching.” 

C ONTEXT. 

The coach is able to provide appropriate and meaningful support by understanding the 

issues within the context of the organization’s business environment, culture and 

competitive demands. 

Copyright © 2003 Right Management Consultants, Inc.

C LARITY. 


The participating leaders are able to clarify objectives, expectations for change, and how the 

coaching process will be conducted. 

C OMMITMENT. 

The organization is committed to supporting the leader, and the leader is committed to 

working for change. 

C OACHABILITY. 

The presenting issue and the people it affects are amenable to coaching, and the situation 

can best be addressed through one-on-one coaching. In reality, there are some situations 

where coaching would not be productive, and a responsible coach knows when to turn down 

an engagement on the basis of the coachability issue. 

C OURSES OF A CTION. 

The coach and the leader establish a development plan with clearly stated objectives and 

realistic strategies to help the leader become more effective. 

C ONFIDENTIALITY. 

A “must” of trust-building. 

C HEMISTRY. 

Leader/coach rapport and compatibility characterize interactions and secure the 

relationship. 

When leadership coaching meets this “7 C’s” criteria, transformational learning is not only 

possible but also probable. Some of the results are subtle, some are dramatic, including: 

- Incremental improvements such as upgraded skills, new practices and behaviors, 

doing things better, and relating to others with greater self-awareness. 

- Reshaped patterns of thinking, such as a revised frame of reference, a change in 

assumptions about how things work or how one sees the world. 

- Personal transformation, such as a shift in one’s point of view about “Who I Am” 

and “How I Am.” 

For more information on how Right can help your company manage talent with leadership 

coaching, call the world’s leading career transition and organizational consulting firm at 

1.800.237.4448. 


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