Internal vs External Coaching: Differences and Expectations

Introduction

Today, organizations are increasingly recognizing the value of coaching. Whether it’s for leadership development, employee engagement, or improving overall performance, coaching has become a pivotal strategy for many companies.

In this article, we will be diving into internal and external coaching – discussing the differences between these roles, the benefits, challenges, and the circumstances under which each is most effective.

What is Coaching?

Many people often confuse coaching with mentoring, though there are major differences between the two. A mentor guides and acts as an advocate within the organization. Company managers are typically expected to blend both coaching and mentoring in their leadership approach.

As a coach, you help in leadership development, assist in directing changes, help clients manage their career paths, and ultimately contribute to achieving business objectives.

There are key distinctions between internal and external coaching, beyond the basic difference of one of you being an in-house resource and the other an independent contractor hired by the organization.

Internal Coaching vs External Coaching: Pros & Cons

If you’re an internal coach, you are employed by an organization to provide coaching to its employees. As an internal coach, you understand the organization’s culture, values, and objectives, which allows you to offer contextually relevant guidance. Your primary responsibility is coaching, which sets you apart from employees who coach alongside other duties.

Meanwhile, as an external coach, you are brought in from outside the organization to provide coaching services. Unlike internal coaching, you won’t be employed by the company. You bring an independent perspective, specialized skills, and a wealth of experience from working with various clients and industries. You are typically engaged for specific coaching interventions or leadership development programs.

Knowing the advantages and disadvantages of internal and external coaching can be helpful. Each has its merits, but one may be more suitable for your specific needs than the other. Let’s see how:

Pros of internal coaching

Does not come at an additional monetary cost for each session
You have the ability to help with performance improvement
You have more time with those needing to be coached and can get to know them better
You have a strong understanding of the existing processes
You understand the general culture of the company
You can work off a company’s larger development program to keep goals consistent
You provide better flexibility within the coaching and employee schedule
You have the ability to observe leaders in action to stay current
Clients may have more comfort with you as they know you
You have the ability to vet prospective coaches for training and specialized certifications
You can help guide the culture of the company
You have more freedom to influence the happiness and satisfaction of employees, as you’re part of the system
Clients can be more comfortable knowing that you cannot share information with others or company management (against coaching ethics)

Cons of internal coaching

Possible additional cost of training and certification
It can be challenging to manage coaching time and other responsibilities within the company
You might be seen as a less credible coach compared to an external coach. Often outside experts will be given greater respect.
Difficulty maintaining confidentiality with the client
Clients might go into 1:1 sessions more guarded because they already know the person and work with them every day
Clients might believe their ideas they have won’t be heard and censor themselves
You might lean into bias towards current agenda and resistance to exploring new avenues

Let’s look at the pros and cons of external coaching:

Pros of external coaching

You bring years of experience and credibility to your coaching practice.
You have the ability to help with performance improvement
You won’t be impacted by the culture or politics of the company
Clients may be more comfortable speaking about delicate issues
Clients can be more comfortable knowing that you cannot share information with others or company management (against coaching ethics)
You won’t have any other responsibilities within the company
You provide a fresh perspective for the company
You have the ability to vet prospective coaches for training and specialized certifications

Cons of external coaching

Lack of immediate knowledge of the company’s culture or processes
The short-term needs of those being coached might not match up well with your availability
It may cause inconsistencies with methods used by internal coaches if they are also being used.
Confidentiality and reporting issues

Essential Skills for Both Internal & External Coaches

Whether you’re an external coach or an internal coach, it’s important that you know and possess the following qualities:

You should employ a coaching model or methodology.
You need to establish a clear and detailed written agreement with clients.
You should show a specific level of core competency and responsiveness.
You must understand confidentiality procedures and policies.
You should be professionally trained, ideally with an ICF certification from the International Coach Federation.

In addition to these attributes, you should be able to address various leadership issues and conflicts, such as:

Project management or completion challenges
Communication difficulties
Relationship issues
Team and group coaching needs

You should have clear and specific guidelines when it comes to your skill requirements and client expectations.

What Organizations Look for in Internal & External Coaches

When an organization hires either of you for their company, it’s important to understand how they choose the right one. Here are some of the most important factors you should be aware of:

The one who fits the bill

There will be so many great picks, but certain skills might not be meeting the needs of the company. Their goal will be to find the one who will fit perfectly with their unique requirements and their clients.

Organizations will prefer to meet you before they hire. In the interview, you might even meet up with the client and their manager. It is best if you could try to form a relationship with them right from the get-go.

In other cases, you and the client simply won’t strike a deal. During such instances, establishing rapport early on can influence whether a coaching engagement progresses positively or not.

Experience counts

It’s important to be an experienced coach with the specific expertise needed by your clients. You may often specialize in areas like leadership, emotional intelligence, communication, and more. Aligning your niche and specialty with the requirements of the clients can greatly improve your value as a coach to their organization.

Coaching style

When selecting a coaching style, it’s essential to understand the style you will be using with your clients. While your coaching style doesn’t need to match your client’s style, being aware of your approach is super important.

Sometimes, a different coaching style can be useful for the client. For example, do your clients need formal key benchmark achievement tracking, or do they respond better to a more informal coaching approach?

Trust is key

If the clients of the organization don’t put their trust in you when they hire you, it can stir up trouble. Trust is the foundation of any successful coaching relationship. If the organization trusts you, it will be easier for their clients to trust you, which is the key for effective coaching and positive outcomes.

Additionally, make sure the organization has:

Well-defined goals: Clear objectives for what they want to achieve with the coaching program.
Realistic expectations: Understanding the scope and limitations of what coaching can achieve.
Consistent feedback mechanisms: Regularly approach clients for feedback to see that your coaching is meeting their needs.
Supportive environment: Creating a culture that supports and values coaching and development.
Continual improvement: An ongoing commitment to assessing and improving the coaching process.

Which Approach is the Best One for You?

Now that you have gone through the pros and cons of internal and external coaching – let’s get into knowing which of these will be the best fit for you.

Deciding between an internal and external coaching career can be a complex process, as it depends on the organization’s specific needs and circumstances. It’s important to carefully consider which option will best support your professional growth goals and the well-being of your team.

External coaching: assets and reflections

You bring a fresh, unbiased perspective. Your broad experience across various industries can introduce innovative strategies and solutions, dedicating more time to coaching without the distraction of internal politics. However, you can be more expensive, and it takes time to understand the company’s specific culture and dynamics. Moreover, as an external coach, you’re responsible for setting up and marketing your own business, all the administrative responsibilities of owning a business, and for sustained growth.

Internal coaching: assets and reflections

You deeply understand the organization’s culture, values, and strategic goals. As a result, you are able to provide ongoing support and develop a coaching culture that is cost-effective and use existing talents. However, you may bump into conflicts of interest and challenges with confidentiality, which is important to shape your skills better in coaching.

Deciding between internal and external coaching

Choosing between internal and external coaching depends on various factors. Tackling the tricky waters of office politics and relational dynamics can be challenging as an internal coach.

However, this does not mean that internal coaching is less effective. It just necessitates establishing firm boundaries to ensure optimal performance.

The key is to select an approach that best serves the organization while aligning with your personal preferences and needs.

In conclusion, the choice between internal and external coaching depends on various factors, including organizational goals, culture, and resources. Most importantly, it comes down to what will give you more fulfillment in your career as a coach!

By understanding the differences and benefits of each approach, you can make informed decisions and create effective coaching programs that drive growth and success.

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