sues, particularly at senior levels, where collegiality, territorial politics, and
personal history can create a great deal of willful ambiguity. Organizations
have clear mandates for dealing with the most egregious performance correc-
tion issues, such as sexual harassment, anger management, and so on. But in
gray areas, it’s not uncommon for an external coach to be engaged as a substi-
tute for the manager ’s own leadership duties. Sometimes, a coach is actually
being hired as a kinder, gentler way of moving the coachee to a life outside of
the organization—a very expensive mode of outplacement.
The client needs to consider some critical issues. Is coaching going to help the
problem? What’s the probability of success, and what’s the payoff for
success? When these variables are measured against the cost of the coach and
the cost to the organization’s resources and capabilities,
the answer should
be clear.
Performance Development
Because of the cost and investment required to hire a coach, organizations
today more often focus their external coaching budget on valued leaders
whose contributions are considered critical. The question whether to hire a
coach or not, however, is still one of cost benefit. The organization must an-
swer some key questions. Who is worth coaching? What areas of skill or ca-
pability development are important enough to warrant coaching? In what
direction does the organization want to move, and can its current leadership
develop the requisite capabilities? What is the final result that is desired?
Despite the economic downturn since 2001, the competition for talented
performers continues to skyrocket. Such people have unlimited options. What
is the cost to the organization in providing or in not providing growth opportu-
nities? If that star performer ’s capabilities are improved by 25 percent
through coaching, will there be a place within the organization for her to
perform at higher levels? If not, the investment will likely have been
wasted— painfully so, if the individual moves to a competitor.
Coaching for performance development is almost always applied in ad-
vance of or slightly after a change in circumstance. The coach’s role is to pro-
vide objective, continuous advice to the coachee on how to position himself
most effectively within his or her environment. The following list provides
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