The Tenth Annual Executive Coaching Survey

Public Report

2015

Statement of Intellectual Property Rights

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Contents Statement of Intellectual Property Rights ............................................................................... 2

Defining the Industry ............................................................................................................... 5

A Shared Definition.................................................................................................................. 7

Report Topics and Distribution ................................................................................................ 8

From Your Publishers .............................................................................................................. 8

Landscape of Coaching ............................................................................................................ 9

Internal and External Coaches ............................................................................................... 10

Executive Coach, Business Coach ......................................................................................... 13

The Purpose of Coaching ....................................................................................................... 14

Strengths versus Weaknesses ............................................................................................... 15

Where Coaching Produces Value ........................................................................................... 17

Measuring the Benefits ......................................................................................................... 18

The Credibility of Coaching .................................................................................................... 19

Demand for Coaching ............................................................................................................ 21

The Coaching Confidence Index (CCI): .................................................................................. 22

How Purchasers Find a Coach ............................................................................................... 23

Delivery and Technology ........................................................................................................ 24

Who Gets a Coach? ................................................................................................................ 26

Performance Management .................................................................................................... 28

Coach Training and Certification ........................................................................................... 29

Licensing and Regulation ....................................................................................................... 31

Standards of Practice ............................................................................................................ 33

Rationale ............................................................................................................................... 36

Participation .......................................................................................................................... 37

Analytics ................................................................................................................................ 39

Global Involvement, Global Results ........................................................................................ 40

Top Metro Areas: ................................................................................................................... 41

Supporters ............................................................................................................................. 42

Trade Associations ................................................................................................................ 43

Publishers .............................................................................................................................. 44

Sponsors ................................................................................................................................ 45

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The Executive Coaching Survey Welcome to the 2015 Executive Coaching Survey.

This market research is a service of Sherpa Coaching, a team of executive coaches, authors and educators based in Cincinnati, Ohio, USA. Your research team is headed by Karl Corbett and Justin Kennedy, officers of the firm.

This year’s research is sponsored by: Š University of Georgia Center for Continuing Education, Athens, Georgia, USA Š Howard University School of Business, Washington, D.C., USA Š Ernst and Young, Johannesburg, Gauteng, South Africa This year, as always, we polled coaches, clients, HR and training professionals, and a wider group of professionals with an interest in leadership development. A record number of responses was received for this 10th annual report. The overpowering response to this year’s survey creates the most reliable sample and the most accurate results ever.

Add to this a groundbreaking launch of a parallel survey written in Portuguese, for a Brazilian audience. The Sociedade Brasileira de Coaching (SBC) was responsible for this effort.

Trade associations with similar interests may want to know how this came about. SBC was given the 2015 question and answer set for translation into Portuguese. IQS Research hosted the survey and validated results. Publishers Corbett and Kennedy received raw data and generated a wide variety of reports for SBC. SBC reported results to their membership and the Portuguese-speaking business public. All of this was done pro bono. This collaboration shows how people can share time, resources and intellectual property for the betterment of the industry. Inquiries are encouraged for collaboration in 2016.

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Defining the Industry With thanks to our sponsors and supporters, the Executive Coaching Survey is a market research project now in its tenth year. In this report, we study executive coaching, a highly specialized type of leadership

development. Through this market research, you will discover how to make the most of coaching as a service for your organization, or as a career for yourself.

It’s not clear to everyone what executive coaching really is. Let’s draw some lines. In business, there are two general fields of endeavor that are referred to as coaching: ‘executive coaching’ and ‘business coaching’. A clear description of the differences between the two might go like this:

“Business coaching” is an alternative term for consulting, as research shows: “Many business coaches refer to themselves as consultants, a broader business relationship than one which exclusively involves coaching.” (Wikipedia, 2014) We ask respondents to identify themselves, with two of the choices being:

business coaches (working to develop client’s knowledge and skills) or executive coaches (working to permanently enhance business behavior).

This allows us to produce a clear distinction between coaching, training, consulting and other professional positions. It also allows us to separate and analyze answers that come specifically and exclusively from executive coaches.

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So, let us focus on executive coaching, and what it means.

To understand executive coaching, we need a clear, academically sound definition of the role. This definition cannot be promotional, nor can it make any guarantees results. One early definition of coaching included terms such as: “… produce extraordinary results” and “… enhance the quality of life”. That language didn’t last.

The International Coach Federation (ICF), defines coaching as “partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential.” A viable definition of executive coaching should both align with the ICF definition and provide additional, specific information that distinguishes executive coaching from life, sports, fitness or business coaching. Here’s one widely-accepted definition of executive coaching: “Executive coaching means regular meetings between a business leader and a trained facilitator, designed to produce positive changes in business behavior in a limited time frame.” * This definition of executive clarifies: - Who coaches are: trained facilitators - What coaches do: produce positive changes in business behavior - When things happen: on a set schedule within a limited time frame * Definition from 'The Sherpa Guide: Process-Driven Executive Coaching’ (Thomson 2005)

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A Shared Definition Over the last ten years, this definition has been adopted by numerous trade associations and universities. This annual survey, including this definition of executive coaching, has been disseminated or promoted over the years by countless organizations and publications, including:

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Report Topics and Distribution This report spotlights the professional activities of executive coaches, and serves as a benchmark that guides the careers of coaches and the decisions of the people who hire them.

In the 2013 edition of the Executive Coaching Survey, corporate culture emerged as a major theme. How do HR, training professionals and business leaders feel about their own corporate cultures? Our second year of research has led to the creation of a new report in 2015 that deals exclusively with corporate culture. You can plan on this being an annual event. The Corporate Culture Survey report is available at sherpacoaching.com

Due to massive turnout and a surprising set of answers to last year’s questions about neuroscience, we will also report separately on the marriage of neuroscience and executive coaching.

From Your Publishers Here are a few things you will want to know as we publish more research this year, and look forward to 2016:

EXCO 2015, the tenth annual Executive Coaching Conference, will feature detailed, exclusive information from this research and a keynote address from Marshall Goldsmith, launching his book, ‘Triggers’, slated for June 2015 release.

The 2015 Coaches’ Earnings Report will be published in the first half of 2015. The report will be available as a free program at the Sherpa Leadership Institute Online (SLI Online), a new online learning center. You will want to set up a user account, at no cost or obligation, so you can conveniently review research and other programs going forward. Visit www.sherpacoaching.com for details.

Next year, both the 2015 Executive Coaching Survey and the 2015 Coaches’ Earnings Report will be available exclusively at SLI Online. Those who participate will be granted special benefits.

SUPPORT FUTURE RESEARCH. YOU CAN SEE SAMPLE PAGES AND PURCHASE A BOUND COPY OF THE COMPLETE REPORT HERE.

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Landscape of Coaching In the early days of this research project, executive coaching was in its formative years. Coaching itself was ill-defined. Since then, hundreds of coaching schools have opened and closed their doors. Dozens of trade organizations have come and gone. Coaches themselves were confused about what they did and what to call it.

We are now part of a maturing industry. There are still coaches entering the field, and we have more proven veterans than ever before. This is not a matter of people entering the business, succeeding, and saturating the market, to the point they create a barrier to entry. People come and people go. Some have success and stay. Veterans and pioneers in the trade retire.

The business itself is maturing, but the average age of executive coaches has not changed very much over the years. What has increased is coaches’ tenure: their years of service to the industry.

There are always new coaches starting out, but their arrival is not always a steady stream. In 2010 and 2011, the state of the economy clearly dissuaded people from entering the industry. This was true of independent coaches, uncertain about their ability to make a living. This was also true of staff coaches, whose employers did not hire or train coaches at the same accelerated rates we saw a few years earlier.

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Internal and External Coaches

Executive coaches can be looked at differently, based on the way they earn their living. Once again, we review the roles of internal and external coaches. When you think of an executive coach, you may picture an outside expert, often a one-person shop, who works with a number of different client companies. External coaches offer services independently to a number of clients. They are responsible for their own training and preparation. Many start their own business, and a vast majority work for small companies. Some organizations prefer to have an internal staff of executive coaches, full time employees who provide coaching services to fellow employees. Major companies continue to train and certify ‘in-house’ coaching staffs. Internal coaching is on the rise. In our study four years ago, just seven percent of coaches were internals. This year, that number has risen to ten percent. That may appear to be a modest increase, but it is a relative rise of over forty percent. The number of internal coaches signing on to take this survey has doubled in recent years. Nine out of ten coaches describe themselves as external coaches: professionals assigned to coaching engagements who are not employees of the coaching client’s organization.

In the ranks of both internal and external coaches, women outnumber men by a 6 to 4 ratio. Externals average two years older than internal coaches, at ages 53 and 51.

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These comments provide perspective on the roles and demands placed on internal and external coaches:

An executive coach and trainer from Los Angeles, California says: “Clients experience a release from the circularity of their own thinking process, which is augmented by external coaches who can provide a level of confidentiality unavailable to internal coaches.” A veteran executive coach in Phoenix, Arizona says her clients have “freedom to be honest and vulnerable with someone who is committed to supporting growth but detached from internal communication, reporting systems and career decisions.” An executive coach in Basel, Switzerland points out a dilemma: “Organisations do not want to be seen to be spending money an external coaches and yet internal coaches are overwhelmed.” An internal coach, working for the federal government in Washington DC, reports: “Executives recognize coaching is necessary for the 1st and 2nd level supervisors. The coaching received at that level will help personal and organizational results.”

The goals of internal and external coaches differ, as well. As the desired outcome of their work, internal coaches emphasize ‘change management’ and ‘building trust’ more often than their external counterparts. External coaches are more likely to work towards ‘creating growth’ and ‘productivity’.

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Internal coaches are more likely to feel that formal certification for executive coaches is important. Often trained together and called upon to produce consistent results as a team, internal coaches are more likely to learn and follow a published process:

Internal coaches are 50% more likely to take a training program based on a specific methodology or process. Externals favor training that covers a ‘review of multiple coaching methods and practices’. Often, internal coaches and client work in the same building. You would expect they would meet more often, and have face-to-face meetings at a higher rate than externals. This year’s results confirm that assumption, but internals are replacing face-to-face with HD video conferencing at a growing rate. Internal coaches most often measure the benefits of coaching using the 360 method (27%), in numbers just slightly ahead of ‘Impact On Business’ (25%). They are twice as likely to use IOB as are external coaches. Externals also use the 360 method most often (34%), with performance reviews and ‘well-being and engagement’ tied for second place (at 18%) among external coaches.

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Executive Coach, Business Coach For years, we have asked coaches to identify themselves as either:

Executive coaches, those who work on business behavior, or Business coaches, who help clients develop knowledge and skills.

The role of the business coach can also be described as consulting, a term we will use in the following report, for simplicity’s sake. Here’s a sampling of what we found for 2015:

Demographics: Women are the majority in executive coaching. 59% of executive coaches are female. Males are predominant as consultants, by a 55% to 45% ratio. There are fewer veterans in consulting and more new entrants, compared to executive coaches. 24 % of executive coaches have been in business for 5 years or less. 35% of business coaches are relatively new to the game.

Service Delivery: In years past, we reported that executive coaches worked with their clients in person more often. This year, we find that consultants are meeting with clients face-to-face just as often as executive coaches. For both groups, a significant amount of work has shifted to Internet and high-definition video, with around 5% of each group saying that coaching is often delivered with high-definition video.

Note – Additional information on billing rates for business and executive coaches is available in the online earnings report. Additional market intelligence, not included in this public report, is available in the full survey report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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The Purpose of Coaching Almost every HR and business leader sees real value in coaching. Coaching has been used to solve specific behavioral problems, to assist in transition and to develop ‘up and coming’ leaders. In the first Executive Coaching Survey (2006), behavioral problems were a big part of the rationale for executive coaching. Now, the emphasis has clearly moved to something different. In 2009, responses started to show this change. Over the last six years (2010-2015), the figures have moved constantly in one direction, a confirmation that this trend won’t be reversed.

Over the years, coaching has shifted from problem solving toward pro-active leadership development. Today, having an executive coach can be a status symbol, the mark of an up and coming leader being groomed for greater possibilities.

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Strengths versus Weaknesses There are two basic schools of thought in coaching. One involves identifying and working on strengths. The other involves on identifying and correcting weaknesses. Here is how we can describe the approaches:

Strengths Advocates of strengths-based coaching, drawing from positive psychology, will say: “Know your strengths, craft your life around them and you will be happier, more productive and reach your goals. Positive psychology supports change by focusing on positive emotion and core strengths -- rather than negative emotion and overcoming weaknesses”. Martin Seligman and other practitioners in positive psychology “work to increase positive emotion and positive traits, building a body of coaching materials that can be used to enhance people’s happiness.”

Weaknesses The weakness-based approach says: “Your strengths have gotten you where you are. Dealing with weaknesses in behavior is the only way to get to the next level.” Advocates of the deficit approach include ‘Sherpa Guide’ author Brenda Corbett, who writes: "Often, a client has reached a plateau with his strengths, but is stuck because of his weaknesses. For example, if you cannot delegate effectively, you are set up to fail. No matter how caring or charismatic you might be, you will fail as a leader if you do not work on delegation.”

Which approach is most widely used? The 2015 Executive Coaching Survey found that coaches working with strengths outnumber deficit coaches by about two to one.

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Here are some other differences between executive coaches working with strengths, and those using the deficit approach.

DELIVERY: Deficit coaches are more likely to meet in person. Deficit coaches are 60% more likely to work with HD video than strengths coaches. Strengths coaches are more likely to conduct meetings by telephone.

GENDER: Weakness coaches are more often men. Strengths coaches are more often women.

NEUROSCIENCE: Strengths coaches are more likely to favor the inclusion of applied neuroscience into coaching, and more likely to feel that clients should know something about neuroscience.

In this first year of exploring the approach coaches use to guide their work, we found significant differences in the professional results attained and methods used to deliver services. In years to come, this report will be poised to track changes and identify trends in the world of executive coaching. Additional market intelligence, not included in this public report, is available in the full survey report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

TO SUPPORT THIS RESEARCH, PURCHASE A BOUND COPY OF THE COMPLETE REPORT HERE.

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Where Coaching Produces Value What do clients and customers expect from their executive coaches? The Executive Coaching Survey has tracked the reasons people use coaching for a long time. Let’s talk about what people want from coaching.

There are many business processes that benefit from improved business behavior: communication, teamwork, collaboration, accountability are all a part of the benefits executive coaching is designed to produce. Which business processes get the most significant boost from executive coaching? The biggest winner is ‘change management’, shown on the bottom of the chart below, in dark blue. The next area where value is most often seen from coaching is ‘creating growth’, followed by ‘productivity’.

Percentage of People Who Say

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Measuring the Benefits How are the benefits of coaching being measured? 360 feedback, taken before and after coaching, was pioneered many years ago by Marshall Goldsmith. Other methods in common use are ‘effectiveness of learning’, ‘well-being and engagement’ and performance reviews. Rounding out the field are traditional ROI, and the newest measure, IOB, Impact on Business.

Overall, Goldsmith’s method wins handily. The 360 is the preferred measure overall. ‘Well-being and engagement’ places second, and is the preferred measure used by internal coaches. Performance reviews are the third most popular way to measure the benefits of coaching. A close 4th place goes to the newest measure on the market, IOB. ROI trailed, and ‘effectiveness of learning’ came in last.

Additional market intelligence, not included in this public report, is available in the full survey report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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The Credibility of Coaching In its early days, executive coaching was often confused with counseling, consulting or training. Now, there are best-selling books, training programs and trade associations dedicated exclusively to executive coaching and business behavior. As the world gains clarity about executive coaching, we can arrive at legitimate conclusions about its value and credibility. Since we first started collecting data, both the perceived value and credibility of executive coaching have risen constantly. A few years ago, we were able to say that negative perceptions about the value of coaching had virtually disappeared. In fact, we no longer ask about the perceived value of coaching. Because there is room for improvement, and since opinions vary between countries, we still analyze the credibility of executive coaching. Global results have reached a new high point, with a majority of respondents now saying that the credibility of executive coaching is very high.

As markets mature, the best coaches stay in business…. and their reputation drives market perception. We can pretty well predict how and when the credibility of coaching will advance in a given market.

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In the Executive Coaching Survey report two years ago, we were able to pinpoint a breakthrough in market perceptions in South Africa, as follows:

Just as predicted, we see this breakthrough, with more than 15% of South Africans reporting a change in perception from ‘somewhat high’ to ‘very high’ :

Credibility means belief, and it is difficult to believe in something when you are not surer what it is. As we pointed out in our section on definitions, the people who hire coaches and make decisions about building internal programs cannot always tell whether someon is a coach, or something else entirely. The following quote from a training professional describes the dilemma.

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Demand for Coaching

Executive coaching is firmly established in the modern organization. The perceived value and the credibility of coaching stand at record highs. Every year, we have a chance to see what people predict about coaching, and compare that with actual results. Optimism about demand for coaching has been fairly steady over the last three years. Here is a look at anticipated demand for executive coaching in the coming year.

Executive, business and life coaches are equally optimistic. Levels of optimism are nearly equal across gender, age and coaching approach. As usual, HR and training professionals are less optimistic than coaches themselves.

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The Coaching Confidence Index We have been through several stops and starts in world economies, and have tracked demand for coaching over the years. To create a snapshot of the industry’s direction, we have developed the Coaching Confidence Index: (CCI). To calculate the index, we consider rates charged by executive coaches, the number of clients they serve, predictions about demand for coaching and the amount of time executive coaches spend in marketing their service, among other factors.

The coaching confidence index improved at an incredible rate a few years back. This reflected economic recovery, which leads to higher employment and larger budgets for professional development. Economic recovery has moved at different rates in different places, and continues to spread across the globe. The CCI fell this year from the two previous years’ levels, which were high. The current index is still slightly positive. Given two years of strong growth, the coaching market has settled in to a very solid position.

With ten years’ worth of data, we took a fresh new look at the Coaching Confidence Index. Among other things, the effects of inflation are now factored in. Additionally, we now use prior years’ data to come up with moving averages for the index. This helps to ‘smooth out’ the results we see, and produce a more stable, reliable index.

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How Purchasers Find a Coach Executive coaches, like any other service professionals, must connect with their clients. There are time-honored traditions, and brand new ways to communicate a message and build a network. Some ways of ‘spreading the word’ are free. Others come at a cost. Every method takes time and energy. Coaches are putting their message out. How do people actually find their coaches? The market tells us that ‘personal references’ are by far the most common way for finding a coach. Other methods include web searches, trade associations, service brokers and LinkedIn. All four of them combined reach a total of 20%, while 80% of people finding a coach rely on personal references. Asking this question for the first time sets up a baseline that allows tracking of trends.

Technology makes it easier to find people you don’t know, and get around the need for a personal referral. Will trade associations, web listings and service brokers take steps to become a significant factor in helping coaches and customers meet? We will keep an eye on trends for you. Additional market intelligence, not included in this public report, is available in the full survey report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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Delivery and Technology In their 2005 book “The Sherpa Guide: Process-Driven Executive Coaching”, Brenda Corbett and Judith Colemon wrote: “Technology has added another option for coaching, that of point-to-point video.... Over time, the quality of sound and images will only improve, making coaching over the Web more and more like a live meeting.” That day has arrived. Coaches can deliver their services in person, by phone, by videoconference, or in a number of other ways. There are two ways to look at service delivery: How many coaches use a given method, and how much of their coaching is conducted that way. Take a small sample, and look at two coaches: one coach works entirely in person. Another coach uses the phone half the time, otherwise opting for in-person meetings. In describing this sample, we can say that 50% of coaches use the telephone (at some time or another), and that 75% of all coaching is delivered live.

Technology is changing the way coaches and clients interact. In 2009, this report showed the first use of webcams and applications, including Skype. Since then, the use of webcams for coaching has exploded to the point that 40% of coaches and clients experience webcam coaching at least sometimes, and 20% of coaching services overall are delivered that way. Nearly 100% of coaching clients and purchasers of service like ‘face-to-face’ coaching best. Until 2009, coaching was delivered in person more and more frequently. Six years back, 85% of coaches had in-person meetings with clients, at least some of the time. Three years ago, that number had climbed to 93%. Almost every coach meets their clients in person, at least some of the time. But when it comes to the overall number of meetings, and how services are delivered, the percentage of coaching delivered in-person has fallen in the last six years, now hovering at about 40%. That is happening because high-definition video conferencing (HD) is starting to replace the in-person meeting. In person meetings are dropping by the same amount at which HD is rising.

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We separate high-definition videoconferencing from web-based video, which has limitations that interfere with the quality of a conversation. Large screen, high definition systems deliver consistently high image quality, synchronized audio and video, and real-time delivery, without lags or dropouts. High definition studios are becoming more widely available to coaches and clients at larger firms.

Percentage of Coaching Meetings, by delivery method used:

The amount of coaching done by telephone has dropped by just about the same amount that webcam use has risen. Webcam coaching accounts for 19% of all coaching, and 40% of executive coaches have at least some experience with webcam coaching. In-person meetings are dropping by the same amount at which HD is rising. HR and training professionals now report that HD video is used for 6% of all coaching. Executive coaches confirm that number, as do business coaches. As high-def becomes more widely available and less expensive, it will cut into webcam coaching as well as in-person meetings. At least 12% of coaches already have some experience with HD video.

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Who Gets a Coach? Executive coaching, in its early days, was being democratized, spreading across ‘all levels in the organization’. Then, in recent years, it became the province of senior leaders and, even more so, reserved for top executives. Coaching became more exclusive. The number of organizations that reserved coaching for top executives grew, year by year, for five years or more. The pendulum is swinging back as confidence is restored in world economies. The number of organizations with coaching ‘at all levels’ remains low, but it is on the rise. Coaching for ‘senior managers only’ and for ‘top executives only’ is giving way to coaching for everyone.

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Here’s a look at the global summary for 2015:

Internal coaches work at lower levels, while coaching engagements at higher levels are often reserved for veteran external coaches. Issues of objectivity and confidentiality come into play, as external coaches are twice as likely to work with top executives.

Additional information about the use of internal and executive coaches by country is available in in the full survey report. The full survey report is available to attendees at EXCO 2015, the 10th annual executive coaching conference and is also available for purchase on line. Visit www.sherpacoaching.com for details.

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Performance Management The University of California, Berkeley, defines performance management as “an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.” Performance management is the way an organization ensures that its goals, large and small, are being met proficiently and efficiently. Performance management can focus on the entire organization, a department, specific processes and, of course, people. When individuals are the focus, data is collected, performance is measured against ideals and results are shared in an event called the performance appraisal.

When there is a difference between ideal results and actual results, the performance management system is supposed to proscribe activities that improve performance. That can mean any number of things. There is always the division between skills and behavior. Performance enhancement will, most obviously, work on skills and knowledge. That means testing and training, to see how much people know and what they need to learn. Organizations with a ‘coaching culture’ include questions about business behavior in their performance evaluations, and may recommend behavioral change for performance improvement that includes one-on-one coaching , or training in coaching skills. The use of coaching in performance management has remained steady, after an increase last year. As the most mature market for executive coaching. Australia still leads the world when it comes to incorporating coaching into performance management. Canada ranks highly, as well. The United States’ ranking now matches that of Brazil. South Africa has risen in the ranks again this year.

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Coach Training and Certification For executive coaches, the landscape of training and certification has always been a bit confused. Working from the model of life coaching, which had the same person starting up training schools and the trade associations that endorsed them, executive coaching was born into chaos. Customers and clients need to know that they are working with the right coach, with the right skills and the right training. To take care of the ‘buying public’, both executive coaches and the programs that provide them with their training should be put under some independent review. That, everyone agrees about.

There are standards, but there is no universal standard for evaluating training programs, and no common standard for giving them formal approval.

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Certifying training programs is only one part of the issue. That doesn’t guarantee quality, according to some. What about coaches themselves? There is no universal method of passing judgment on coaches, their qualifications and credentials.

Additional market intelligence, including breakouts by country report, is not included in this free public report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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Licensing and Regulation Any coach will tell you …. Be careful how you ask your questions. Three years ago, we first asked about licensing and regulation of executive coaching. 25% of our respondents favored some sort of government regulation, while 50% said coaching should not be regulated at all. The remaining 25% replied that they had a different answer, and wrote in their comments on the subject.

We had a look at the comments, and made some changes. Federal government, state and local government were still offered as choices, alongside trade associations, an independent licensing board, no regulation at all, and the option for ‘other’.

Support for government regulation dropped from 25% to 7% when other options were offered. Trade associations gathered around 35% of all support, and an independent licensing board stands at around 30%. Responses of ‘other’, with their associated comments, dropped to 5%. Almost 30% say there should be no regulation at all.

What is going to happen? The answer probably lies in a comment we received several years ago. In the US, an attempt to regulate coaching was described by a respondent who said:

“I am a member of the team that added language to exempt coaches from mental health legislation in the state of Colorado. State legislatures create laws to protect those at risk in the population. Colorado determined that coaching clients are not vulnerable and do not need protection, thus no need to license practitioners.”

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If there is anything here, there is opportunity. There is a huge degree of support for a universal licensing board to bring order to executive coaching, but there is no such entity. Even in the field of life coaching, which some might say borders on counseling, there is not an independent, central licensing body.

An Austrian executive coach favors “an international licensing board of trade associations - coaching is global.”

A Canadian CEO calls for “Licensing or trade certification for Executive Coaching. It’s a professional and essential component in business and should be considered as such.”

Who will step up and move toward creating a licensing body? There is a great deal of pent-up demand, it would appear.

TO SUPPORT THIS RESEARCH, REVIEW AND PURCHASE A BOUND COPY OF THE COMPLETE REPORT HERE.

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Standards of Practice Coaching, from all appearances, will never be regulated. We know that the industry reaches standards all on its own, with no outside intervention. Case in point: the use of assessments as a coaching tool. Over time, every coach came to use an assessment. Five assessments dominate the market. Their market share doesn’t change, year to year. This standard practice is so firmly embedded that we no longer ask about it.

So, what standards is the industry developing for the future? How do we distinguish trends from emerging standards? If the entire executive coaching industry moves one way or the other over time, it is a trend. Trends can be shaped by fads, fashion or the state of the economy. Not every trend becomes a standard. For a trend to become a standard, it needs three characteristics:

It shows steady growth in one direction over a period of years. It will lead to a universal practice of some sort. We see widespread adoption of this practice by coaches just entering the market.

Let us take some examples: Will we ever see a standard duration for a coaching engagement? Not likely. There are really no trends in either direction. There is a strong minority favoring engagements of three months or less. The majority favors engagements of six to twelve months. The number of coaches and clients who opt for ‘open-ended’ engagements is small, but it has not changed over the years. No trends, no standards.

Will all coaches eventually follow a published process, similar to those used in accounting and financial planning? There has been agreement with that idea over the years, but that support declined five years ago, and remains flat. Additional market intelligence, including breakout reporting, is not included in this free public report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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If ‘following a published process’ does become universal, that does not mean that there will only be one process. It most likely will be two or more, with one process appealing to coaches who work with strengths, and another process appealing to those who work with weaknesses.

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Additional market intelligence on this topic, including breakout reporting and trend analysis, is not included in this free public report. The full report and its premium content is available to attendees at EXCO 2015, the 10th annual executive coaching conference and also available for purchase on line. Visit www.sherpacoaching.com for details.

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Rationale The Executive Coaching Survey is a market research project, now in its tenth year. The report originates with Sherpa Coaching, headquartered in Cincinnati, Ohio, USA. Why do we do this? Over the years, our team has worked to build the credibility of executive coaching and ensure the industry’s future. In 2005, we made a commitment to run an annual survey, open to anyone who wishes to participate, and release the results to coaches, business leaders and the public at no charge. Our focus has shifted as the industry has changed. As standards emerge and answers become predictable, we move on, and study different topics. We have more questions for business leaders, HR and training professionals than ever before. What was once a single report has now become four:

The Executive Coaching Survey The Global Study on Corporate Culture Neuroscience and Executive Coaching The Coaches’ Earnings Report

Details about all our research is available at www.sherpacoaching.com. Why do we do this? Business leaders use this research to design internal coaching programs and make intelligent decisions about change management and corporate culture. Coaches use this report to make strategic decisions about their careers. Our most striking support is from individuals who take the time to participate, and eagerly await the results each year. Their appreciation is ample reward for our investment in this research.

TO SUPPORT THIS RESEARCH, PURCHASE A BOUND COPY OF THE COMPLETE REPORT HERE.

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Participation

A record number of responses was received for this 10th annual report, exceeding our previous high point in 2008, when a booming economy created enthusiasm for coaching and a thirst for knowledge. This year we received close to 2,000 responses, an increase of 25% over our prior best year, and more than the previous two years combined. This report is about executive coaching. You’d expect most of our contributors would be executive coaches. That proves to be the case once again this year.

How accurate is this survey? The chance our answers are not meaningful is called ‘sampling error’. Look at this in its simplest sense. If you ask one person to respond to a ‘yes’ or ‘no question, your results will either be 100% accurate, or 100% inaccurate, depending upon whether that one person agreed with what we all think collectively. Your margin of error is 100%. You just might be totally wrong.

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If you ask 100 people a question, your answer might be off by 10%. You can say they are at least 90% accurate. Your margin of error is 10%. If 300 people answer your question, you will be at least 94% accurate, and the odds get better and better that your sample group’s answer is exactly right. This year, over 1,800 people responded to this survey, providing a margin of error of under 2.5%. The accuracy of the survey’s conclusions is also confirmed by comparison with responses from previous years, allowing the confirmation of trends over time. Based on an ever-increasing body of knowledge, this 2015 report can share changes and trends available nowhere else.

This survey gets information from a wide variety of people. We do not control or limit who participates. There are no user-specific invitations with passwords and the like. If we limited our invitations to a controlled list, then our reporting might lose accuracy due to sampling bias, however:

Anyone who wants to participate in this research can do so. Anyone can invite others to participate. We always invite people who took the prior year’s survey, so our answers year to year

reflect trends based on answers from the same people. Anyone can provide anonymous answers.

Our university sponsors and relevant trade associations invite participation, working from their private mailing lists. People share our invitations, ensuring a free flow of information and a sample that fully represents the world of executive coaching. As always, almost half our respondents come from outside our list of invitees. That ensures fresh and accurate results, year after year.

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Analytics

The Executive Coaching Survey has three ways of finding information that is relevant to interested professionals.

• We began in 2005 with questions of interest to coaches and their clients. Each year, we tend to ask certain questions in exactly the same way, to identify trends. When the answers stop changing, we go on to different questions, knowing our respondents have identified the state of the art.

• A few years back, we created a special web version of this report. Based on the number of page visits to each topic, we know what interests you, and we focus on that.

• We ask for comments on trends in coaching and the benefits of coaching, and give people free reign to tell us what they think and share their observations. That ensures we have new topics each year.

• We have now reached critical mass in our research on corporate culture, with questions exclusively for HR, training professionals and business leaders. This allows us to report on topics of broader interest, with yearly information that will tell us where corporate cultures are headed.

Each year, we review the way our research is designed. Since 2005, we have solicited help in survey design from university executive education programs. In addition, we rely on the expertise of Shawn Herbig, President of IQS Research in Louisville, Kentucky, USA. Mr. Herbig and his research team offer solid advice any time we consider additions or changes.

Headquartered in Louisville, Kentucky, IQS Research delivers research on markets, customers, and employees, with studies designed to identify issues and opportunities, and map a path to reliable decisions and profitable outcomes.

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Global Involvement, Global Results The 10th annual Executive Coaching Survey received responses from 63 countries, an all-time high.

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Top Metro Areas It’s up to our respondents. Whose views are reflected? Which countries provide detail for analysis and breakout reporting? This year, we list the top 20 metro areas we heard from, in alphabetical order. Some of these are new to our top twenty. Eight are from outside the USA, reflecting wider global participation in this 10th year of research.

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Supporters This research stays fresh and vibrant every year, with ‘a little help from our friends’.

Our thanks for ongoing promotion during this year’s data collection. Those who helped us ‘get the word out’ included:

Gabriela Forte Sociedade Brasileira de Coaching Garry Schleifer Choice Magazine Katherine Tulpa the Association for Coaching Kim Wells Howard University Marshall Goldsmith Marshall Goldsmith Library Pam Bracken the University of Georgia Rey Carr Peer Resources Canada Suzi Pomerantz the Library of Professional Coaching Willem de Jager Ernst and Young South Africa

And for ongoing support and participation over the years, we thank:

Association of Corporate Executive Coaches USA Coaching at Work Magazine UK International Coach Federation USA The Leading Coaches Center USA

SUPPORT FUTURE RESEARCH. BROWSE SAMPLES AND PURCHASE A BOUND COPY OF THE COMPLETE REPORT HERE.

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Trade Associations The Executive Coaching Survey has acquired global reach over the years. This, our tenth year, represents yet another milestone, with responses from over 60 countries representing a vast majority of the world’s population. As part of our cooperation with executive coaching trade associations, Sherpa Coaching provides alternate language data collection and special breakout reports by country to our trade association partners. We provide this service at no charge. We were encouraged by support worldwide from organizations dedicated to executive coaching, who shared an invitation with their members and colleagues to participate in this survey. We know from past experience that certain trade associations, experts and academics forward an invitation to their networks without even letting us know. Our thanks to them. They know who they are, as do their members, followers and colleagues. Special thanks to:

COMENSA Institute for Learning Practitioners Library of Professional Coaching Peer Resources Sociedade Brasileira de Coaching

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Publishers

Sherpa Coaching USA The Sherpa Leadership Institute

Karl Corbett is Managing Partner of Sherpa Coaching in Cincinnati, Ohio, USA. He handles strategy, marketing and client relations for Executive Coaching Certifications at Howard University and the University of Georgia. He was contributing editor for “The Sherpa Guide: Process-Driven Executive Coaching”. (Thomson, 2005) Karl created this Executive Coaching Survey, the largest and longest-running market research on executive coaching.

Sherpa Coaching Africa

Dr. Justin Kennedy is a leading researcher and practitioner of neuroscience coaching. He serves as CEO of Sherpa Africa, and holds the position of Professor of Organizational Behavior and Regional Dean of Africa at Monarch Business School in Switzerland. Dr. Kennedy is also a Professor of Neuroscience and Coaching and a research executive at the University of Pretoria and a leading executive coach in his home country of South Africa.

Technical Contact: Shawn Herbig, President IQS Research 308 North Evergreen Road, # 200 Louisville, Kentucky USA (502) 244-6600 sherbig@iqsresearch.com

Media Contact: International Media Desk Sherpa Coaching P O Box 417240 Cincinnati, Ohio USA 45241 (513) 232-0002 im@sherpacoaching.com

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Sponsors

Sherpa Coaching is based in Cincinnati, Ohio, USA and in Sandton, Johannesburg, South Africa. For managers and executives, Sherpa offers one-on-one coaching. For leaderships groups and teams, Sherpa conducts programs based on their university texts. For coaches, Sherpa offers training and certification on campus at major universities. Custom programs are available on site or on campus.

The University of Georgia Center for Continuing Education in Athens, Georgia, USA, provides programs and services which connect the University with lifelong learners throughout the

world. The Center designs, develops and delivers a variety of executive programs in a dynamic learning environment with a luxury hotel, restaurants, meeting rooms and banquet facilities.

Howard University is in Washington, DC, USA. Its Business School offers executive education alongside graduate programs in entrepreneurship, finance, management, international business and supply chain management. Howard University and the U.S.

Small Business Administration operate a Small Business Development resource center on campus.

The Association for Coaching is a leading independent, not-for-profit professional body dedicated to promoting best practice and raising the awareness and standards of coaching, worldwide. The AC has members from over 50 countries, made up of professional coaches, training & coaching service providers and organizations building coaching cultures.

EY Advisory: People & Organisational Change, based in Johannesburg, South Africa offers executive coaching, team coaching and group coaching as part of custom executive and senior leadership development programmes for organisational performance improvement. Their track record for delivery of executive coaching programmes spans the past ten years, across sectors and industries.

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