Reetta Koivuniemi
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Coaching is a modern leadership style that focuses on openness, trust and collaboration. This approach differs from traditional authoritarian management in that it emphasises the role of the manager as a coach, whose goal is the personal and professional development of employees. This type of leadership increases employee motivation, commitment and job satisfaction, which in turn improves the overall performance and innovation of the organisation.

In this article, we will go through the principles of coaching, its impact on the work community and the main skills required of a coaching leader.

Principles of coaching leadership

Coaching is first and foremost a people-centred approach that emphasises the development of both individuals and teams in the workplace. Below are four key principles that form the core of coaching:

1. Listening

In this context, listening does not just mean recording words, but deep and active listening, in which the leader seeks to understand the perspectives and feelings of his subordinates. Active listening means focusing on what is being said or not said in its entirety. It involves paying attention to body language and tone of voice and requires the listener to be genuinely present. According to research by Itzchakov and Kluger (2018), effective leaders spend a large proportion of their time listening and this is key to their ability to lead effectively.

2. Questions

A coaching leader uses questions to deepen thinking and challenge his or her subordinates to think critically and find their own solutions. Questions are open and constructive, such as "What alternatives do you see in this situation?" or "How would you describe the biggest challenge of this project?" This approach encourages self-direction and promotes problem-solving skills. The questions guide employees to think about solutions themselves, rather than waiting for ready-made answers. Coaching questions lead to broad thinking and new insights.

3. Setting objectives

An important part of coaching is helping employees to set clear, achievable and meaningful goals. Goals should be set jointly by the supervisor and the employee so that they are realistic and can be committed to. The SMART method is a commonly used tool to help set and achieve goals. The acronym SMART stands for spesific, measurable, achievable, realistic and time-bound. The method not only helps individuals focus on what is important, but also helps measure progress.

4. Support

In order to enable them to achieve their objectives, the coaching manager must provide them with the necessary resources and support, and keep them informed. This means, for example, regular meetings, using the right tools, providing training and removing any obstacles. Ongoing support and encouragement, as well as timely feedback, will help maintain motivation and commitment. Employees who feel supported by their supervisors are more engaged and productive.

How does coaching affect the work community?

Coaching not only improves the performance of individual employees, but has a deeper impact on the culture of the whole organisation. Let's take a closer look at how coaching can transform workplaces:

Increased engagement

When managers use a coaching approach, employees feel heard and understood, which increases their commitment to their work(Popli & Rizvi, 2016). When communication is open, employees have space to express their ideas and concerns and take ownership of tasks more clearly.

Better problem-solving skills

A coaching style of leadership encourages employees to develop independent problem-solving skills. Employees learn to approach challenges creatively and take responsibility for solutions, which also helps teams to find self-directed ways of working. Employees who receive regular coaching show better performance and are better at solving work-related problems(Popli & Rizvi, 2016).

A stronger trust

trust in the leader is one of the biggest factors affecting employee engagement and well-being(Jena et al., 2018). A coaching style of leadership focuses on open interaction, identifying strengths and finding ways to leverage employees' talents to increase trust. When employees trust their leaders, they are more open to sharing their ideas and challenges, which at its best also improves the effectiveness of the workplace as a whole.

In other words, coaching can improve workplace dynamics, promote a positive organisational culture and create more effective workplaces.

Coaching leadership in practice

In this section, we go through the key skills of coaching and how to develop and apply them effectively.

• Active listening: this is much more than just listening; active listening requires paying full attention to the speaker and understanding what he or she is saying without preconceptions. Active listeners use non-verbal signals such as nods and eye contact, and show understanding with words such as "I understand" or "tell me more". Active listening is therefore a key skill for managers who want to build strong teams and promote psychological safety in the workplace

• Conflict resolution: coaching leaders also need to be able to deal with differences of opinion and conflicts in a constructive way. This means identifying conflict situations, understanding their causes and promoting dialogue between the parties involved. In most cases, conflict resolution requires a neutral approach and the ability to guide the discussion so that all parties feel heard and that the outcome is beneficial to all.

• Solution-oriented: the coaching leader must have the ability to identify problems quickly, but at the same time have the courage not to bring his or her own solutions to them. It is more important to guide and insight the team to find solutions and support them in implementing them. This not only boosts professional self-esteem, but also steers towards a more self-directed work culture.

• Feedback and continuous improvement: being able to critically examine your own performance is important for development. As a leader you are never finished, you need a constant willingness to learn and understand yourself and different people better. Giving and receiving feedback is also important, as is looking after your own wellbeing and well-being.

Challenges in coaching leadership

The transition to coaching is a change, and change is almost always met with resistance. Leaders face challenges that are worth bearing in mind when starting to use a coaching approach.

• Resistance to change: employees may even resist the move to a coaching style of management, especially if the previous management culture was very authoritarian. Resistance may be due to fear of the unknown or uncertainty about new roles and expectations. The shift towards employee self-direction may initially feel like an increased workload and responsibility.

• Use of time: coaching requires time, as the leader is expected to be present and supportive. The presence of a leader is a key factor in the daily routine, including discussions, feedback and individual development plans. This can be challenging, especially in large organisations or when schedules are tight. It is therefore important to leave enough time for leadership.

• Measurement challenges: measuring the impact of coaching can be complex, as many of its benefits, such as improved work climate and increased employee engagement, are difficult to measure and may only become apparent in the long term. There is no single clear solution, but measurable objectives, regular surveys and feedback from employees are good starting points for assessing the impact of management style.

Identifying these challenges and proactively working through them is necessary to make a shift towards coaching leadership possible in the first place. It is also worth remembering that leaders also need time to practice and learn new ways of leading.

Three examples of successful coaching leadership:

The effectiveness of coaching can be seen in the success stories of many organisations. Here are three well-known companies that have applied coaching and achieved significant results.

• Google: Google's "Project Oxygen" is one of the best-known examples of coaching leadership. At the start of the project in 2008, Google conducted an in-depth analysis of what makes a leader effective. The study revealed that the leaders who spent the most time coaching their teams received the highest ratings. Google used this information to develop training programmes focused on improving coaching leadership skills. The results spoke for themselves: employee satisfaction and performance improved significantly, and Google has continued to apply coaching across the organisation.

• Microsoft: when Satya Nadella took the helm at Microsoft in 2014, he initiated a cultural shift towards a growth mindset with coaching at the core. Under Nadella, Microsoft leaders were encouraged to act more like coaches than authoritarian bosses. This change included active listening, supporting personal development and increasing transparency in decision-making. These actions have led to improved employee engagement and innovation, which has also been reflected in Microsoft's product development and market value.

• Atlassian - Innovation and ShipIt Days: Atlassian has introduced coaching management to support an innovative work culture. In particular, their ShipIt Days event is an example of how giving employees the freedom and support to experiment with new ideas can foster creativity and generate valuable innovation. During these 24-hour hackathons, employees develop and present new product ideas, many of which end up in Atlassian's product portfolio. This not only improves products, but also strengthens collaboration and community within teams.

So coaching is not just a tool for improving employee performance. It is a strategic approach that can change the culture of an entire organisation and contribute to sustainable success.

How to start the journey towards coaching leadership?

Becoming a coaching leader can be a rewarding journey that improves both your team's performance and your job satisfaction. Here are concrete steps to take if you want to develop a more coaching style of leadership:

1. Start by listening: focus on listening carefully to the members of your team. Active listening is not only about hearing what they say, but also about understanding and empathising with them. This lays the foundation for trust and open communication.
2. Develop your questioning skills: Learn to ask open-ended questions that encourage your team members to reflect and suggest solutions. For example, questions like "Tell me more about this problem?" or "What could be possible next steps?" help develop independent thinking.
3. Set goals together: work together with your team to set clear, achievable goals. Make sure all relevant people are involved in setting goals. Make sure all key players are involved in setting goals. This will increase commitment and motivation.
4. Provide ongoing support: give your team the tools and resources they need to achieve their goals. Ask them what they need to achieve their goals. Give them the tools they need to achieve their goals.
5. Ask for and give feedback: ask for feedback on your management style and make the necessary adjustments based on the feedback you receive. This will help you develop as a leader and make your leadership style more effective. At the same time, you will develop an ongoing culture of feedback and self-evaluation in your organisation.

The journey towards coaching leadership consists of small steps. Each conversation, listening moment and support provided will move you and your team closer to your common goals. Investing in people development will pay off. Both research and my own practical development experience with numerous organisations speak for themselves.

Sources:

Itzchakov, G., & Kluger, A. (2018). The Power of Listening in Helping People Change. Harvard Business Review.

Jena, L. K., Pradhan, S., & Panigrahy, N. P. (2018). Pursuit of organizational trust: Role of employee engagement, psychological well-being and transformational leadership. Asia Pacific Management Review, 23(3), 227-234. https://doi.org/10.1016/j.apmrv.2017.11.001

Popli, S., & Rizvi, I. A. (2016) Drivers of employee engagement: the role of leadership style. Global Business Review, 17(4), 965-979. https://doi.org/10.1177/0972150916645701