Top 4 reasons leaders hire executive coaches

David Jackson

Partner
Robert Smith

Principal

Ways top leaders move the needle on leadership skills development and enterprise growth

According to Mercer’s 2022-2023 Global Talent Trends report, metrics related to leadership behaviors that contribute to thriving and engaged teams were listed among the metrics C-suite leaders identified as most valuable. While C-suite leaders believe leadership behaviors were most useful only 44% believe these behaviors are being measured today. This suggests there is work to do to support leaders in enhancing their leadership skills. When political entanglements are removed, external coaches bring a unique point of view to the most critical business challenges. Executive coaches can provide perspective and insight on actionable ways to overcome these challenges. When done well, the impact cascades through the entire organization. Following executive coaching engagement, research shows that leaders experience a 70% increase in individual performance, a 50% increase in team performance, and a 48% increase in organizational performance.¹

_{¹. The ROI of Executive Coaching. Link: https://www.american.edu/provost/ogps/executive-education/executive-coaching/roi-of-executive-coaching.cfm#main-container}

Top 4 times leaders hire an executive coach

There are a number of reasons an executive leader may choose to hire an executive coach. The top four reasons CEOs, C-Suite Leaders, Presidents, and Board Chairs alike hire executive coaches include:

Moving into new to executive role:

a leader may be new to their role and would benefit from an outsider’s perspective on practical ways to navigate new expectations, political dynamics. Understanding the new leadership skills that are required to operate effectively are essential because for high-visibility positions, early wins can make the difference in how the leader is perceived and their ability to lead.
Leading a new transformation or change in strategy:

a recent change or major shift in the business transformation requires a significant shift in the way the organization currently operates. These changes often require a new organizational focus that will require the leader to boost their influence and networking skills to gain buy-in from key stakeholders including the Board, Managers and Directors, as well as other C-Suite leaders.
Identifying a successor / develop a succession plan:

the board may request a succession plan for the executive leadership team. In other cases, an executive leader nearing retirement may want to identify the skills and attributes needed in potential future executive successors.
Tackling challenging executive team dynamics:

occupying a top leadership position often requires navigating the most challenging and entrenched problems facing the organization. These dynamics may include strong personalities and entrenched interests. Leaders often opt to leverage experiences to coaches to help navigate.

In each case, we begin with a discovery process that allows leaders to articulate who they are, and the goals they are trying to accomplish. We use those inputs to create actionable goals to move forward and create momentum. In other cases, we have supported leaders and organizations with reimagining executive reward strategy, leadership development, learning and upskilling, as well as human resources transformation.

Up to 81% of executive officers have one or more ESG goals in their current performance goals or have them listed in their incentive plans.² Developing leadership skills is consistent with the increase of Board-mandated Environmental, Social, and Governance (ESG) goals. Executive coaching provides high-achieving leaders with skills to improve emotional intelligence, enhance strategic thinking, and promote engagement across multiple stakeholder groups.

One topic area typically emphasized during coaching is the link between personal vision and how it aligns to organizational vision and goals. Similar to driving a car, it becomes extremely difficult to move in the right direction without a clear picture of what the destination will be. Once that destination is clear however, together we map out and document a path to get there, and ensure all stakeholders are informed along each phase of the journey. Versions of this leader journey map can be shared with others making the process plain bolstering buy-in.

Executive coaching client case:

Mercer executive coaches recently partnered with the CEO of a leading construction firm. We began with a series of discussions where we got to know the leader and their goals. The Mercer team conducted a set of validated psychometric assessments and 360-degree assessment. This was followed by a twiceper-month meeting cadence to evaluate progress towards the CEO’s personal goals as well as goals outlined by the Board. By the end of the 1-year coaching engagement, the CEO’s performance ratings increased by over 20 percentage points.

Key activities:

Create a CEO leader profile
Identify targeted areas for growth and focus
Meet regularly to check-in and discuss top-of-mind concerns and confidential progress against key outcomes

Executive Coaching Value

Vision and Goals	Leader Focus	Achieving Outcomes
Where the organization needs to go and what needs to be done now and in the near-term to get there.	Daily operational requirements, market forces, operating environment, and stakeholders.	Alignment across key stakeholder groups, meeting key milestones, and advancing towards the vision of success.

Key Coaching Questions
Am I clear on what success looks like? Am I leading the team in ways that will get us there? Am I unintentionally blocking progress for myself or others?	How do I show up on a daily basis? Does the way I lead support the outcomes I am trying to accomplish with my team? Am I spending my time on the most valuable activities?	Are we achieving the goals and accomplishing the vision? Am I doing anything to get in the way? Do others agree we are arriving at the goals we set out to accomplish?

_{². The role of the Board and Management and how HR can lead. Link: https://www.mercer.com/en-us/insights/people-strategy/hr-transformation/the-role-of-the-board-and-management-and-how-hr-can-lead/}

Leaders of leaders occupy a unique position of developing goals and embodying the vision they have developed, our regular coaching sessions (weekly, bi-monthly, or monthly) focus on how they “show up” when speaking about or advancing these goals with the Board, fellow C-suite members, or direct reports. In each of these cases, we highlight ways to create their unique brand around the vision so that others can easily understand and buy-in to it.

Coaching is not for the faint of heart. Effective leadership requires a level of humility and discipline that many leaders who have honed their functional skills may be reluctant to undertake. Despite these challenges, the effort is well worth it. These insights often only come through engaged, candid, outside-in insights from seasoned leaders. When leaders become better versions of themselves they move into an optimal position to lead their organizations and move them into progressively higher levels of performance. By providing a safe and confidential space for leaders to share obstacles that might arise, we serve as sounding boards to make the path a bit easier to climb while also achieving the vision. This is the true value of having an executive coach.

About the authors

David Jackson

works with the boards and executive teams of global companies, public sector clients, and not-for-profit organizations to improve leadership performance and drive results. He focuses on governance and board effectiveness, executive assessment, and leadership development strategies that assist boards with succession planning and CEO review and to help boards and CEOs with talent strategy formation and execution. He is an executive coach.

Robert Smith

is a Principal in Mercer’s Career practice based out of the Washington D.C. office specializing in Leadership Assessment and Development. With over fifteen years of consulting and talent experience across multiple industries, he has provided executive coaching to leaders in a range of industries.