How to Build a Coaching Culture

"Coaching culture" has become a buzzword in management circles, but what does it really mean, and why should managers care?

At its core, a coaching culture transforms the way people interact and develop within an organization. It moves away from traditional hierarchical structures and creates an environment where learning, feedback and growth are woven into the fabric of daily work life.

Managers who prioritize building a coaching culture invest in their team's future. They create an environment where continuous improvement is the norm. This fosters adaptability, resilience and a shared commitment to excellence that propels the entire organization forward.

Why Is a Coaching Culture Important?

Coaching cultures transform how organizations learn, adapt, and grow.

In traditional management structures, knowledge and decision-making often flow from the top down. However, in a coaching culture, learning and development become a shared responsibility. This shift is critical in today's knowledge-based economy, where the collective expertise of employees is often an organization's most valuable asset.

Research underscores this point, noting that managerial coaching skills predict employee engagement, collaboration and employee development. [1] Furthermore, managerial coaching skills are essential for solving team challenges. [2]

By fostering a coaching culture, organizations create an environment where continuous learning is the norm – not the exception.

What Are the Benefits of a Coaching Culture?

Implementing a coaching culture is an investment that pays dividends across the entire organization. Here are the key benefits that make it worth the effort.

• Enhanced employee engagement. 72 percent of companies believe there’s a strong correlation between coaching and increased employee engagement. [3] A coaching culture fosters a sense of value and investment in employees, leading to higher engagement levels. When managers act as coaches, they demonstrate a commitment to their team members' growth and success, increasing motivation and job satisfaction.
• Improved performance and productivity. Regular feedback helps employees continuously improve their skills and performance. This translates into increased productivity and better overall organizational performance. Research shows a positive correlation between employees' perceptions of managerial coaching skills, their commitment to the business, and their performance. [4]
• Greater innovation and adaptability. A coaching culture encourages open communication and creative thinking. Employees feel more comfortable sharing ideas and taking calculated risks, which increases innovation. This also makes the organization more adaptable to change, as employees are accustomed to learning and growing continuously.
• Better talent retention. Organizations with strong coaching cultures often see improved employee retention rates. When employees feel supported in their development and see opportunities for growth within the company, they're more likely to stay long-term.
• Stronger leadership pipeline. A coaching culture naturally develops leadership skills at all levels of the organization. As employees become accustomed to both giving and receiving coaching, they develop critical skills for future leadership roles, creating a robust internal talent pipeline.

How Do I Establish a Coaching Culture?

If you’re looking to create a coaching culture, these best practices will help to get you started.

• Encourage open communication. Foster psychological safety, creating an environment where team members feel comfortable sharing their thoughts, feelings, and experiences without judgment. Encourage regular check-ins and open-door policies to facilitate ongoing dialogue.
• Create consensus around team goals. Use the Consensus-Oriented Decision-Making (CODM) model, developed by psychologist Dr Tim Hartnett, to build agreement on team objectives. [5] This approach involves framing problems, having open discussions, identifying underlying concerns, developing proposals, choosing directions, and closing with clear action plans. By involving team members in goal-setting, you increase buy-in and commitment.
• Build meaningful connections. Find common ground with your team members. Create shared experiences, and mirror body language to build rapport. Remember that trust is the foundation of effective coaching relationships.
• Make use of creative tension. Embrace ambiguity and encourage diverse perspectives within your team. Create an environment where disagreement is seen as a constructive force for innovation and problem-solving. Encourage your team to view disagreements as opportunities for growth rather than personal attacks. This approach can increase engagement and collaboration within the team. [6]
• Normalize feedback. Encourage both giving and receiving feedback as a regular part of team interactions. Model this behavior by actively seeking feedback from your team members and demonstrating how to receive it constructively.
• Encourage positive risk-taking. Support your team members in stretching beyond their comfort zones. Create a safe space for experimentation and learning from mistakes. Celebrate efforts and progress, not just outcomes.
• Create development opportunities. Actively identify and provide learning opportunities for your team members. This could include on-the-job challenges, mentoring relationships or formal training programs. Tailor these opportunities to individual strengths, interests and career aspirations.

Example of a Coaching Culture

Watch the video below to hear from acute medicine consultant, Dr Ayo Olatoye, about creating a coaching culture in a healthcare setting.

How Do I Know a Coaching Culture is Working?

To assess the effectiveness of a coaching culture, organizations can look at several key indicators.

• Measure using established scales. Use Park et al.’s measurement scale, which evaluates coaching cultures based on the following factors: "open communication," "team approach," "value people," "accept ambiguity," and "develop people." [7]
• Monitor employee engagement. A successful coaching culture typically leads to higher levels of employee engagement. Use regular surveys or pulse checks to gauge how connected and motivated your team members feel. Look for improvements in areas like job satisfaction, commitment to the organization, and willingness to go the extra mile.
• Assess learning and development metrics. Track participation rates in learning and development activities, both formal and informal. Look for increases in the number of employees seeking out growth opportunities or engaging in peer-to-peer coaching.
• Evaluate performance improvements. Monitor individual and team performance metrics over time. A strong coaching culture should lead to continuous improvement in key performance indicators relevant to your organization.
• Analyze retention rates. Businesses with effective coaching cultures often see improvements in employee retention. Track turnover rates and reasons for leaving, looking for positive trends as your coaching culture develops.
• Observe behavioral changes. Look for shifts in how people interact within the organization. Are managers spending more time in coaching conversations? Is feedback being given and received more frequently and constructively? Are team members more likely to collaborate and share knowledge?
• Gather qualitative feedback. Conduct regular focus groups or one-on-one interviews to gather in-depth insights about how the coaching culture is impacting individuals and teams. This qualitative data can provide rich context to complement your quantitative measures.
• Assess organizational adaptability. A strong coaching culture should enhance your company’s ability to navigate change. Monitor how well your teams adapt to new challenges, technologies, or market conditions as an indicator of coaching culture effectiveness.

Remember, building a coaching culture is an ongoing process. Regularly assess these indicators and be prepared to adjust your approach based on what you learn. Celebrate successes along the way to reinforce the value of the coaching culture and maintain momentum.

Let’s Act

Look back at the best practices for establishing a coaching culture in this article. Choose one or two areas to focus on in the next couple of weeks.

Commit to a specific action for each. For example, “I will actively seek feedback from my team members, by asking them one thing I should stop doing, keep doing and start doing. And I will act on the results.”