What Separates a Team That Excels From One That Merely Functions Comes Down to 1 Key Strategy

In sports, the success of a team largely hinges on one key role: the coach. Coaches strategize, connect, inspire and refine players' skills. In the corporate world, a coaching strategy is just as vital and can be the difference between a team that merely functions and one that excels.

A coaching culture shifts the dynamic from a traditional hierarchy to a more empowering, cooperative approach. It involves open communication, active listening, and thoughtful questioning to unleash potential.

However, according to new analysis from global leadership company DDI's latest Global Leadership Forecast, 40% of leaders report inadequate coaching from their managers, highlighting a gap between aspiration and execution.

Investing in a coaching culture is a necessity, not a luxury. A staggering 85% of HR professionals surveyed believe developing coaching skills will be critical for leaders within the next three years. By prioritizing coaching now, companies can empower leaders, boost team performance and drive lasting success.

"When there is a coaching culture, knowledge-sharing becomes a key resource for learning and development," says Stephanie Neal, co-author of the research and Director of DDI's Center for Analytics and Behavioral Research (CABER). "In environments with frequent meetings, distributed staff and diverse teams, it's essential to build a culture of interactive communication, ongoing feedback and network-building - all grounded in coaching."

High-potential employees are twice as likely to leave within the next year if their manager isn't an effective coach. Only 11% of high-potentials plan to leave within the next year when they receive quality coaching from their managers, compared to 20% when they don't.

Any successful culture change needs to start at the top. Senior leaders must allocate time to coach their managers in meetings, one-on-ones and informal conversations. But most importantly, they must "walk the walk."

Companies that invest in coaching for all leaders, including those in informal roles, strengthen their leadership bench. They promote more leaders internally and maintain a pipeline of high-potential talent.

Everyone needs feedback to grow and leaders aren't experts in everything. They need coaching and feedback from others, regardless of their seniority or position. All leaders at every level should be given coaching skills. Ensure people in informal leadership roles, such as project managers and department heads, have the skills to coach. At a minimum, every formal and informal leader should be trained on core leadership skills.

Practice makes perfect. Every leader should be able to apply new techniques to influence, communicate, and strengthen their skills with their teams. With some added support and guidance from senior leaders, areas for improvement and success become clearer.

Create opportunities for leaders to apply coaching techniques and receive feedback, such as small group sessions or online simulations. The absence of coaching and feedback on the job can cause employees to stagnate in their role, and in turn, inhibit companies from getting results.

Oftentimes, leaders alone are held responsible for coaching and teaching their teams how to coach each other. But just as coaching skills should be invested in for all types of leaders, everyone should be responsible for actively coaching and being coached. It's an effective way for them to receive specific feedback about their approach, performance and behavior to make continuous improvements.

This accountability system encourages frontline leaders and managers to take ownership of their performance, as well as how they coach others. DDI's research states that leaders who get quality coaching from their managers that includes this accountability are 2.7 times more likely to feel accountable for being an effective leader themselves.

Leaders often feel solely responsible for setting objectives and determining how employees will achieve them. However, to ensure employees are engaged and dedicated to their goals, they must be actively included in defining next steps.

Rather than relying on arbitrary metrics or behaviors, senior leaders should work collaboratively to plan the path forward, define expectations and share how progress will be monitored. Identify key areas their coaching skills should address, such as employee engagement, retention, productivity, and customer satisfaction. This approach will help avoid misunderstandings and missed opportunities, while enabling teams to better connect their coaching with business objectives.

 "Leaders are signaling that they want and need to be part of a coaching culture," says Dr. Matt Paese, SVP of Leadership Insights at DDI. "Most coaching engagements start with one perceived need but often uncover something slightly or entirely different. Every leader is unique, as is the context in which they lead. Coaching is tricky and requires structure, experience and the use of proven methods and tools."

Building a coaching culture facilitates one of the best and most in-demand enablers of personal growth. It's about developing leaders who can handle situations in the moment, rather than holding intervention-like meetings with some coaching so that a box can be checked. As first-time leaders and frontline managers grow and develop over time, so will the number of opportunities to delegate and involve them in important projects. That means more time for their senior colleagues to focus on strategic activities and consistently deliver strong results for your organization. The organization will also see better productivity, more engagement, higher performance and a healthier overall culture.