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Coaching for
Coaching: an effective practice for business
business competitiveness competitiveness
Marı́a Dolores Vidal-Salazar, Vera Ferrón-Vı́lchez and
Eulogio Cordón-Pozo 423
Department of Business and Management, University of Granada,
Granada, Spain
Abstract
Purpose – The purpose of this paper is to analyze the effectiveness of one of the more widespread
techniques for personnel development and training: coaching. This technique in the business context entails
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1. Introduction
To adapt and obtain competitive advantages in the current business context, companies
must implement processes of efficiency improvement. In doing so, managers are interested
in establishing a clear business advantage over competitors. Thus, the adequate
management of human resources is a determining factor for the decisive role it plays in
implementing the business strategy and for its potential in achieving a sustainable Competitiveness Review: An
source of competitive advantage (Kamoche, 1996; Mueller, 1996; Vidal Salazar, 2009; International Business Journal
Vol. 22 No. 5, 2012
pp. 423-433
q Emerald Group Publishing Limited
This research was supported by the Research Project ECO2007-67833 of the Spanish Ministry of 1059-5422
Education. DOI 10.1108/10595421211266302
CR Wright et al., 1994). Currently, techniques for the training and development of personnel are
22,5 encouraged by means of implementing practices that would facilitate organizational
learning and improve efficiency at both the individual and group levels.
Drawing on human resources management practices, this study focuses on coaching.
As a business technique, coaching constitutes an innovative management practice that
directly encourages personal development while indirectly fostering the economic and
424 sustainable growth of firms. In the business context, coaching is defined as an
interactive, direct and confidential process by means of which a trainer and another
employee (or a reduced group of employees) attempt to find the most effective way for
achieving objectives while making significant changes within a company (Launer, 2007)
and drawing upon its resources and capacities.
Little is known either theoretically or empirically about how the implementation of
coaching translates into improved business performance. Consequently, the main
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objective of this work is twofold. First, from a theoretical point of view, this work seeks
to delimit the concept of coaching. We do so by exploring the diverse applications of
coaching in the management context and by analyzing its influence on internal factors
related to a firm’s ability to compete. Second, using a sample of 40 companies located in
Ceuta (an autonomous Spanish city in North Africa), we attempt to empirically
demonstrate the positive relationship between the implementation of coaching and
business improvements. In our empirical research, we analyzed whether firms from our
sample that had invested in coaching saw a boost in their business outcomes.
Understanding the importance of coaching is essential for two main reasons. On the one
hand, despite the acceptance of coaching as an innovative human resources management
practice, scepticism still remains regarding its real efficacy, with some studies questioning
the return on investment. Unlike prior studies that have analyzed the influence of coaching
on the development of personnel capabilities (at an individual level), our work focuses on
evaluating the organizational effects of implementing coaching (at a global level),
assessing the impact of key strategic changes on business development.
On the other hand, at present, coaching enjoys extensive acceptance and is generally
understood to be applicable to companies (Goleman, 2000). Increasing corporate investment
in coaching testifies to its perceived importance. For instance, in the USA, the expense for
executive coaching is estimated at $1 billion per year. Hence, by analyzing results from 40
companies, our study employs empirical data to clarify the coaching concept in the
management context. Our finding supports the notion that the implementation of coaching
improves a firm’s ability to implement key managerial changes.
Consequently, in light of the increasing interest in coaching within the business
context, a greater understanding of this practice seems vital for improving a firm’s
competitiveness.
performance. In a similar vein, for this technique to work, it is essential that the coachee
not play a passive role but be actively involved in the activities that are developed (Alcalá,
2002). Thus, the concepts of choice and responsibility are critical, as the effectiveness of
the process depends on both the coach’s contribution as well as the coachee’s will to
change. This willingness must also entail a capacity to set aside pre-established ways of
thinking that would restrict the implementation of new measures, and it certainly
demands a willingness to modify one’s own behavior. Finally, while the assistance and
advice that coachees receive can help them to make decisions, such assistance and advice
does not exempt coachees from their responsibility for the decisions made (Larez, 2008).
Among human resource practices, this type of professional assistance represents a
modern approach to staff development and training practices and highlights the
importance of personal relationships, direct interaction and “learning by doing” in
manager training. Moreover, it suggests a departure from the contemporary
enthusiasm for information technologies and distance learning (De la Corte, 2002).
In addition, coaching possesses some peculiarities that make it quite different from
traditional staff development and training practices. For instance, coaching attempts to
reinforce the coachees’ existing capabilities, liberating all of their potential so that they
may be able to attain peak performance. Thus, coaching is a method designed to “help to
learn” rather than to “help to teach” (Whitmore, 2003), i.e. to re-learn what one has
already learned through experience. To achieve this, coaches must recognize that
knowledge is not within themselves, but rather within the coachees; consequently,
a coach’s work is a process of support and encouragement achieved through a use of the
Socratic method, which is a systematic and dialectical questioning in which participants
are impelled to seek and find answers for themselves (Ravier, 2005).
In addition, it is interesting to point out that coaching must be adapted and personalized
according to the particularities and needs of the company. Therefore, even though it is a
change-seeking process, coaching remains focused on the current situation (Bou-Pérez,
2007). It is developed within a specific context; thus, it is a process positioned and modelled
with respect to the moment, the place and the circumstances in which it occurs.
Given the specific context, companies can opt to design the coaching process by
means of an internal program, guided and implemented by qualified staff from their own
organization, or they can do so by means of an external program, where the coach will be
an agent (or professional) not belonging to the organization. Such a coach is contracted
CR for providing a service, with the elements of that service or coaching process negotiated
22,5 between the two parties (De la Corte, 2002).
Whether or not to contract external people or to use internal staff for the coaching
process remains an open discussion, especially if we bear in mind the existence of
professional associations that are attempting to regulate this field through the
standardization of a coach’s essential knowledge. This entails the creation of an
426 academic qualification for coaches that can be obtained by achieving several
requirements, such as the fulfilment of specific learning objectives, an actual training
course or through the certification of some pre-determined experience. The emergence of
this academic qualification has both defenders and detractors. That said, there does
exist some agreement about the basic competences that a coach must have (Cook, 1999;
Dotlich and Cairo, 2002; Gautier and Vervish, 2001; Zeus and Skiffington, 2002). For
instance, it is essential that a coach has experience as a manager to be able to act as a
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professional guide for managers; if the expert cannot understand the business world and
has not faced the problems and situations of this field, the work provided will be quite
shallow. Moreover, regardless of whether the coach is external or internal, such work is
only as effective as the coach. When developing the coaching tasks, the coach must
possess a deep knowledge of the business strategy and an awareness of the
organizational objectives.
4. Research methodology
4.1 Sample and variables
To empirically contrast our hypotheses, the study was based on data obtained from two
projects belonging the INNOEMPRESA program, which is an initiative financed by
the European Regional Development Fund and the Spanish Ministry of Industry,
Tourism and Trade. Both projects were developed in 2009 and aimed to improve the
competitiveness of all of 40 sampled businesses located in Ceuta. To do this,
individualized strategic diagnoses of the companies were made in an effort to decide for
each business which strategic management models should be implemented; different
models were recommended depending on the deficits detected.
CR The same procedure was followed for both projects, using an auditing process to
22,5 detect areas for improvement and to establish a plan of corrective measures specifically
adapted to the situations of each business. One of the projects was completed by
applying a coaching service to the consulting process itself (the coached group), while
the other was finished by writing a report that included the diagnosis and the measures
proposed (the non-coached group). Consequently, we gathered two samples of
428 20 businesses each: the coached group and the non-coached group.
resources available. Ultimately, managers were guided and coached in the application
of these measures.
The coach paid particular attention to opportunities for persuading managers that
they needed to modify certain habits that had become obsolete or outdated. Another
important aspect of the process was its emphasis on the emotional dimension, as
emotions are decisive for identifying or modifying attitudes and behaviors. Lastly,
through an intense interaction with their coachees, coaches emphasize the motivation
of a managers’ learning according to a constructivist approach to the psychology of
learning. Thus, coachees are active members in a learning process, where they are
encouraged to participate in all solutions and decisions.
To analyze the effectiveness of coaching (and the implementation of corrective
measures), we compared the results with those from non-coached businesses by sending
questionnaires to managers in businesses from both coached on non-coached groups. By
comparing data from both samples, we endeavoured to determine if implementing a
series of practical tutorials positively influenced three key aspects related to improving
the effectiveness of an auditing process: first, the level of acceptance of the proposed
improvement measures (H1a), second, the level of application of the measures (H1b), and
third the level of satisfaction among participating managers (H2).
To analyze the second aspect, that is, the level of application of the measures, we
recognized that the level of difficulty varied depending on whether the change was
structural, managerial (administrative, financial and commercial), customer-related or
related to adaptation to information technology; thus, we classified the measures
according to type.
Furthermore, in light of the reports provided by the coaches themselves, we also had
qualitative data at our disposal. These reports referred to a coachee’s abilities and
attitudes observed during the coaching sessions, in the context of being given advice
and directives. These reports provide impressions about the effectiveness of the
directives and additional information about the staff and the companies themselves.
5. Results 429
The average size of the participating companies was 6.38 employees (standard
deviation of 9.54), and no statistically significant differences were found between
coached companies and non-coached companies for this parameter. In addition, we
found that 50 percent of the businesses sampled were publicly owned companies while
the other 50 percent were freelance entrepreneurs (these percentages were similar to
those found in coached companies, i.e. 55 vs 45 percent, as well as in non-coached
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companies, i.e. 45 and 55 percent). Table I shows the results of the WMW, in which the
analyzed variable was coached vs non-coached company.
There were statistically significant differences in five of the seven variables
considered, supporting H1a, which indicated that coaching practices help a company’s
staff to more easily accept the implementation of several proposed improvements related
to strategic change because there is a statistically significant difference concerning the
item “level of understanding of proposed measures” (Z ¼ 2 3.577; p , 0.01). The results
also supported H2, which proposed that coaching practices increase the satisfaction of
participating managers because there is a statistically significant difference concerning
the item “participating managers’ level of satisfaction” (Z ¼ 2 2.347; p , 0.05).
However, H1b, which suggested that coaching practices facilitate the correct
implementation of several proposed improvements related to strategic change,
achieved only partial support, as several measures showed higher levels of application
in coached companies (i.e. management measures, measures of customer service and
human resources measures), but there are other areas in which the level of application is
not influenced by participation in a coaching program (i.e. structural change measures
and the use of information technology measures).
Average
Analyzed aspects (variables) Coached n rank Contrast significance
that executive coaching may foster a more intimate and quicker learning. Thus, in our
empirical research, the managerial coaching conducted in one of our two company
groups notably increased the level of understanding of proposed improvement
measures among the coached managers. Thus, coaching may ultimately increase the
probability of a company’s success when such measures are implemented.
Similarly, the level of satisfaction was higher in the coached group than it was in the
non-coached group. This is not surprising, as coaching seeks both behavioral
and personal change to benefit the organization; it is able to reach a higher level
of satisfaction as it depends on the enhancement of motivation. Coaches have been able
to generate confidence among participating managers, instilling in them a sense of
responsibility and commitment, and to develop in their coachees the capacity to innovate
and create. These facts ensure that superior implementation of improvements in the
coached group are superior.
Our results show that the implementation of the proposed measures was higher for
the coached group than for the non-coached group in the management (administrative,
financial and commercial), customer service and human resources fields. A better
understanding of the measures, the advice received when implementing these measures
and the increased motivation are associated with higher levels of implementation for the
coached group compared to the case of managers who only received audit reports. These
managers had to analyze conclusions and results for themselves; they had to implement
tasks related to the proposed improvements without the benefits of any advising service.
However, with respect to the application of measures related to structural changes
and the use of new technologies, the differences were not statistically significant
between our two groups. This finding is consistent with what we expected in light of the
important economic and organizational efforts that structural changes likely imply for
small-sized companies (substantial investments, installation changes, adaptations for
disabled/handicapped people, and alterations in shop windows). In addition, the use of
new technologies might entail minor expenses and/or investments (e.g. internet use, use
of management software, computerized monitoring of stocks, etc.). With respect to both
types of measures, the role of coaches did not significantly influence managerial
attitudes. Moreover, qualitative information provided by coaches showed that (in most
cases) managers understood the importance of the proposed measures, the lack of
resources and that the long term necessary for investment amortization was more
important than the necessity to face the proposed improvements.
In sum, our work contributes both theoretically and empirically to the existing Coaching for
literature. From a theoretical view, this study enriches the otherwise limited state of the business
literature concerning the positive effects of coaching in the business context. Moreover,
we offer empirical results that support the use of coaching in a business context, competitiveness
encouraging the corporate use of this personnel training and development practice.
resources or time for specialized advising, the superior adaptability of coaching (both to
the company’s circumstances and to the managers’ characteristics) allows for quick and
effective results, efficiently incorporating new business concepts, innovative management
techniques and tools that enhance a manager’s global vision and ultimately the company’s
profitability.
With respect to regulators, our results support the effectiveness of coaching
for improving business competitiveness. It is essential that regulators and public
agencies develop programs and formative courses on coaching so that managers are able to
benefit from the advantages of this technique concerning human resources management. In
the same way, the civil service must take into account that, frequently, the training offered
free of charge by public organisms is too generic and is barely related to the tasks performed
by those that receive this training, which indicates that managers do not show an interest
towards it because of its low effectiveness. Since coaching is a specific type of training that
could be adapted and personalized according to the particularities and needs of the company
focusing on the current situation (Bou-Pérez, 2007), its development within the company
implies a process positioned and modelled with respect to the moment, the place and the
circumstances in which it occurs. As a consequence, regulators are encouraged to make
efforts via fiscal deductions, subsidies, etc. to support the use of coaching within companies.