COACHING:INTERNAL VS. EXTERNAL

An Analysis by Chaim Rothstein

Outline Coaching Defined

Advantages of coaching in generalCurrent coaching statistics/ROI

External Coaching DefinedExternal coaching advantagesExternal coaching disadvantages

Internal Coaching DefinedInternal coaching advantagesInternal coaching disadvantages

Main Similarities & Differences Conclusion/Recommendations

Coaching Defined

“Partnering with clients in a thought-provoking and creative process that

inspires them to maximize their personal and professional potential.”

Advantages of Coaching in a Business Setting

Enhance Employee Skills

Address Derailing Behaviors

Maximize Productivity

Boost Employee Engagement

Cultivate High Potential Employees

Current Coaching Statistics/ROI- Coaching at Work Survey 2002: “Coaching for all”

- MetrixGlobal 2001 Study: ROI = 788%

- Personnel Management Association Report: Coaching combined with training = 88% increase in productivity

- Manchester Inc. Survey: ROI of almost 6X the cost of the coaching- Metropolitan Life Financial Services: Retails sales people. $620,000 coaching cost delivered $3.2 million in measurable gains

External Coaching Defined

“An individual who is self-employed or employed outside the organization and provides coaching

services within the organization.”

External Coaching Advantages

Professionally Certified Highly Trained Objective Perspective Specialized Skills Experience Exclusive Focus on

Coachee

External Coaching Disadvantages Cost Small % of organization has

access Lack of consistency in model Ad hoc engagements Lack of clarity around

multiple factors Lack of measurability Attrition risk

Internal Coaching Defined

“Instead of paying for external coaches to

come into the company, an organization trains

its own professionals to be coaches for the

organization.”

Internal Coaching Advantages

Cost Knowledge of the business/culture Expands traditional approach to

leadership development More access to information about

coachee Specific and relevant job knowledge Efficiency Promotes informal coaching across

management Opportunity to connect across the

organization

Internal Coaching Disadvantages

Balancing multiple roles Attunement to conflicts of

interest Managing multiple relationships Attending to confidentiality Difficulty listening objectively Abstaining from certain

decisions Managing relationship

boundaries

Main Similarities

Sensibility and competencies

Well-conceived coaching methods

Clear contracting Confidentiality/Record

keeping Resource to discuss

conflicts of interest Matching process

Main Differences

Frequency and scope Tenure of coachee;

Coaching focus Formalization Duration Coach’s source of

knowledge and context Retention COST

Conclusion/Recommendations

Coaching is an effective tool Pros and cons to both Internal

& External Best to use in tandem Budget is a big factor Depends on what the goal is Internal would be ideal to

promote a coaching culture

References1. ATD at Work: Creating an Internal Coaching Program

https://www.td.org/Publications/TD-at-Work/2014/Creating-An-Internal-Coaching-Program

2. Center for Coaching Solutions: Starting and Running an Internal Coaching Programhttp://www.centerforcoachingsolutions.com/white-papers.html

3. The Hudson Institute of Santa Barbara: Creating an Organizational Strategy for Coachinghttp://www.cenera.ca/documents/144.pdf

4. iCoach NY: Possibilities and Pitfalls of Internal Coachinghttp://www.icoachnewyork.com/news.php

5. Results Coaching Systems: Driving Change with Internal Coaching Programshttp://www.davidrock.net/files/Driving_Organisational_Change_with_Internal_Coaching_Programs.pdf

6. http://www.free-management-ebooks.com/faqch/principles-05.htm 7. http://www.what-is-coaching.com/icfcoachingdefinition.html