Strong leadership has always been the common thread in successful companies – and always will be. The mark of a great leader is the ability to help people within an organization (employees) become the best version of themselves.
Many of these duties fall on your leadership team.
A strong coaching culture helps employees grow, improves team performance, and strengthens leadership skills across the board. When coaching becomes part of daily interactions, junior employees learn faster, and senior employees become better leaders.
Research from the International Coaching Federation has found that almost 90% of companies recoup their investment in coaching – and leaders who receive coaching generally experience large productivity improvements.
But building this culture doesn’t happen overnight. It requires commitment, ongoing feedback, and a student mindset. With the right steps, any company can create a coaching environment that empowers employees and supports their growth. In this post, we will explain how to develop leaders (and employees) in your company.
The Role of Leadership in Coaching
Leadership coaching starts at the top.
If senior leaders do not coach junior staff, the culture will not properly take root. Leaders must set an example by mentoring, asking thoughtful questions, and encouraging problem-solving.
When leaders embrace a coaching culture, all employees reap the benefits. They learn that mistakes are part of growth and that guidance is a daily practice, not just an annual review. A coaching mindset is what turns managers into leaders.
Key Coaching Skills for Leaders
Even the most experienced leaders can struggle with coaching. However, in many organizations, coaching and leadership go hand in hand. As you begin creating a coaching mindset in your company, the most important skills to look for include:
- Active listening
- Self-awareness
- Growth mindset
- Empathy and compassion
- Ability to provide constructive feedback
- A way of asking questions that sparks problem-solving
- Ability to set realistic goals and expectations
These are the foundational skills necessary to start building a coaching culture.
How to Develop a Coaching Mindset
A coaching mindset focuses on development rather than punishment. This leadership style requires patience, curiosity, and a belief in others’ potential.
Leaders with a coaching mindset ask more questions than they answer. They encourage employees to think through challenges rather than providing quick solutions. This method builds confidence and problem-solving skills in the team. Here’s an overview of how to implement this culture within your organization:
Step 1: Shift from Telling to Asking
“To ask the right question is already half the solution of a problem”
– Carl Jung
The first step to implementing leadership coaching sessions in your organization is changing the general mindset. Instead of giving direct orders or answers, ask open-ended questions that prompt employees to think critically.
This mindset should encourage self-reflection by asking questions like,
- “What do you think the best solution is?”
- “How would you approach this challenge?”
Keep in mind, younger employees will make mistakes. This is part of the growth process. A strong coaching culture guides thought processes – rather than providing quick answers.
Step 2: Practice Active Listening
Active listening is THE most important skill a leader can develop to create a coaching culture in an organization.
When employees speak, leaders should give their full attention without interrupting or thinking about their response while the other person is talking. Distractions, such as checking emails or glancing at a phone, should be minimized to show genuine engagement. Giving someone undivided attention makes them feel valued and encourages open communication.
To reinforce understanding, leaders should summarize key points and ask follow-up questions. Use phrases like:
- “So what I hear you saying is…”
- “Can you clarify what you mean by…?”
These responses demonstrate that the leader is listening with intent. This approach creates alignment and prevents misunderstandings. Employees are more likely to share their thoughts when they know their words are truly being heard.
Nonverbal cues also play a critical role in active listening. Simple actions such as nodding, maintaining eye contact, and leaning in slightly show engagement and attentiveness. A leader’s body language can either encourage or discourage an employee from opening up.
Step 3: Build a Constructive Feedback Culture
Good feedback is key for both employee and leadership development, but it must be delivered in a way that leads to genuine improvement, rather than discouragement. This can be a fine line to walk on.
To improve team performance, leaders need to make their feedback clear, specific, and tied to growth.
Start by acknowledging strengths before addressing areas for improvement. This approach keeps employees motivated while guiding them toward better performance. A useful technique is the “what went well, what can be improved” method, which balances encouragement with actionable suggestions.
Step 4: Encourage Independent Problem-Solving
Leadership coaching is not about providing all the answers.
It’s about helping employees develop their skills to find solutions on their own. Leaders should resist the urge to immediately fix problems for employees (which is easier said than done). Instead, they should guide them by asking thought-provoking questions like:
- “What steps have you considered?”
- “What resources do you need to solve this?”
What this approach does is shift responsibility to the employee, sparking critical thinking and decision-making skills. When employees are encouraged to solve problems independently, it boosts employee engagement, personal/professional growth, and helps to maximize performance.
Over time, this creates a more capable and self-sufficient team.
Step 5: Lead by Example
A coaching culture starts at the top. Leaders who model the behaviors they preach are always more successful in empowering employees.
One of the best ways to lead by example is to seek feedback on their own personal leadership performance and coaching experience. When employees see their leaders continuously working to improve, they are more likely to adopt the same mindset.
Sharing experiences and challenges also helps establish trust and relatability. Leaders who openly discuss their growth journey show that development is an ongoing process – and the student journey never ends.
Step 6: Invest in Leadership Coaching Training
Not all leaders naturally excel at coaching.
That is why organizations should provide formal leadership coaching to develop skills among senior employees. These training sessions can focus on coaching techniques like active listening, guiding discussions, and motivating employees through encouragement – rather than just directives.
Organizations should consider workshops, peer coaching programs, and continued education to help leaders keep their coaching skills sharp.
Overcoming Resistance to Coaching
Not everyone may embrace coaching immediately. Some employees may resist feedback or get defensive – while some leaders may struggle with shifting from a directive to a coaching style of management.
The key is consistency. The more coaching becomes part of daily work, the more natural it feels.
Leaders should communicate the value of coaching and (if necessary) provide training to help employees adjust. Some may need time to trust the process, especially if they are used to traditional management styles. Leaders need to be patient and reinforce coaching benefits through success stories and small wins.
Measuring the Success of a Coaching Culture
Leadership coaching should align with your business goals. It is generally measured by employee engagement scores, retention rates, and overall team performance.
Surveys and feedback sessions can also provide insight on coaching engagement. If employees feel supported and motivated, the coaching culture is working.
Adjust your leadership training strategies based on what works best for the team. Leaders should regularly assess coaching outcomes and identify areas for improvement. Organizations can also review mentorship pairings, team collaboration, and project success rates to continuously improve coaching initiatives.
By following these steps, leaders can develop a coaching mindset that leads employee development, strengthens problem-solving skills, and helps to create a learning organization.
Start Building a Coaching Culture Today
Internal development of employees is beneficial for companies in terms of retention and long-term success. Yet, one of the biggest challenges companies face is implementing employee development programs. By implementing a coaching mindset, you’re investing in your culture and helping younger employees gain their footing in the workforce.
Rome wasn’t built in a day – and a coaching culture isn’t built overnight, but small steps create big results with leadership development coaching. When leaders commit to coaching, employees grow, engagement improves, and the entire organization benefits.
At CDI, we provide a variety of training and certification programs to help organizations better equip their leaders with a leadership coaching program, boost employee engagement, and set themselves up for sustainable success.
Get in touch with a professional to learn more about our coaching programs.