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Emotional Intelligence for Leadership - A Key Success Factor for Corporate Coaching

Corporate coaching is always about Emotional Intelligence.  In the context of coaching for leadership there is no escaping its significance. 

As organisations increasingly invest more in corporate and executive coaching, they are becoming more discerning about the quality of the coaching they undertake and of its strategic impact.  They are seeking a competitive edge through developing leadership capability and this is particularly so in markets where product or service differentiation is difficult to achieve.  Consequently, leadership becomes a key success factor when engaging a corporate coach and in determining the return on investment for any coaching activity.

As a goal-centric, results-orientated approach to professional and personal development, corporate coaching is ideally placed to help achieve corporate objectives within a strategic context through the development of values-based leadership within the organisation.  Such coaching involves dynamic interaction through which the coach works with the client to identify options and take actions that move him or her towards clearly defined outcomes.  A close alignment between coaching and strategic objectives is vital and much easier to achieve when this is addressed before a coaching engagement begins.

Emotional Intelligence for Leadership

The principles of Emotional Intelligence, established by Daniel Goleman, are now widely accepted as being crucial to a successful workplace.  The five ‘domains’ of Emotional Intelligence, knowing your emotions, managing your own emotions, motivating yourself, recognising and understanding other people’s emotions, and managing relationships, are accepted as being critical to good leadership.   

High levels of Emotional intelligence are associated with self awareness, a participative management style, decisiveness, a willingness to “do whatever it takes”, empowering others, and building and mending relationships.  It helps a leader to be open to and to effectively manage change as well as to handle problem employees.

Emotionally intelligent leaders are more committed to their organisation, achieve greater success and are more effective in the workplace.  So it no surprise that Emotional Intelligence is now recognised as the basis on which corporate leaders are recruited.  Technical competence is taken as a given.  It is the leader’s ability to engage productively with all stakeholders that will determine their effectiveness in their leadership role.

Leadership Coaching for Emotional intelligence

Goleman has argued that teaching Emotional Intelligence competencies through traditional methods is ineffective.  Cognitive learning methods draw on different areas of the brain to emotional learning which involves ways of thinking and acting that are central to an individual’s sense of identity.  People are thus more likely to resist being “taught” to be more emotionally intelligent.

It takes time to unlearn existing unhelpful behaviours and replace them with new ones, and a different development approach is therefore much more likely to succeed.  Whilst coaching is not the only method that can be used to increase Emotional Intelligence it is one that provides ongoing support and challenge over a period of time and can thus have a significant impact.

Within an organisation a number of factors can highlight the need for leadership coaching.  It could be identified through classroom-based training, through a performance appraisal or from 360° feedback.  Times of change can throw up a need for new leadership styles.  Leadership coaching can also be identified for individuals who have failed to achieve a promotion for which they are technically suited but lack the necessary people skills.  The individual might request leadership coaching themselves. 

One factor, however, that is very common is that of direct observation by stakeholders of an individual who should have leadership potential but is creating their own barriers to progress through their limited behavioural habits.

Successful leaders need a wide behavioural repertoire and the ability to select appropriately in any given situation.  This requires behavioural flexibility and leaders need to understand and appreciate the perspectives of different stakeholders and be able to adjust their approach to different individuals or groups accordingly.

When deciding on the criteria for understanding the return on investment on a coaching programme, it is important to determine how these kinds of behaviour are identified, how an improvement will be recognised, and what the organisation will accept as return on investment.

Emotionally Intelligent Leadership Coaching success

If you are considering engaging a corporate coach to work with leaders or would-be leaders within your organisation you could find yourself recognising many different situations where coaching would be effective and appropriate and here are some examples of clients we have recently worked with.

One individual had been identified for  leadership coaching by a number of stakeholders from the senior leadership team.  He was considered to be highly successful in his role but his tendency to ruffle feathers meant others regarded him “rough round the edges”.  He was inclined to be very opinionated, believed that he understood others’ motivations and behaved as though his beliefs were true.

Through coaching, he was able to appreciate that others’ motivations might not be as he assumed and could then adapt his behaviour accordingly.  His ability to influence others greatly improved through this understanding.  The success of this coaching engagement was measured through feedback from senior stakeholders about the individual’s improved ability to influence, positive comments about his improved flexibility of his approach, and, as a knock-on effect, a reduction in the number of complaints about his behaviour.

A second coaching client was a company director, again considered to be technically capable but, in this instance, considered to have a lack of gravitas, a quality believed by the company to be a clear differentiator for effective leadership.  This lack of gravitas became apparent, for example, when he was chairing meetings but had little personal impact.

He was identified as a candidate for leadership coaching because he needed to be perceived as a credible leader within the organisation.  His habit of being a “willing workhorse” meant that, in an effort to help out, he often took on tasks that were of a level far junior to his role, undermining his standing as a director.

Success was measured through changed perceptions of his leadership capability within the business and quantitatively measured by time spent on his own responsibilities rather than those of others in his team, with a consequent positive return on investment.

In a third example, the individual had been referred for leadership coaching because of an identified lack of flexibility in her approach.  Once more, she was an individual who most certainly knew her stuff and this could make her personal style very challenging.  Required to present information to the board on a regular basis, her approach could be abrasive and she took no account of the different needs of members of her audience.  This single-minded approach was also apparent in her dealings with other stakeholders as well as in the coaching relationship.

Success in this case was immediately evident to the Board who would recognise a change in style and easily measured in terms of feedback from a range of stakeholders.

Leadership Coaching for great organisations

At The Corporate and Executive Coaching Organisation, we have worked closely with a client whose values-based approach to emotionally intelligent leadership provides the backdrop to all coaching assignments.

Starting with a clear mission, they developed a series of corporate values which define the behaviours expected of everyone within the company, how they interact with each other, and the experience that they want customers to have.  They determined a sound understanding of the corporate context within which a culture of excellent performance can thrive, and decided on strategic themes for organisational development which give a consistent focus for the corporate values.

Within this context, it was possible to determine key factors for success for coaching, focused on developing leadership capability which enables their mission, not only to be driven down through the organisation, but also driven back up again by very focused employees at all levels.

The impact on areas relating to Emotional Intelligence is unquestionable with 26% of respondents to a feedback survey reporting improved working relationships and 44% seeing a clear change in communication style following coaching.

The financial return on their investment in coaching has been impressive and the company has been able to quantify a clear financial impact derived from the measures determined at the outset. 

Setting up a great coaching relationship

The success of a relationship between your organisation and your coaching partner is dependent on a number of factors.  This begins with a discussion with the two organisations about why coaching has been chosen as part of the leadership dev elopement strategy.  In our experience, coaching is not suited to all organisation cultures and, at CECO, we advise organisations if we believe coaching is not appropriate for them.  

Each individual coaching relationship starts with a clear discussion including each individual client’s sponsor to define the measures of success.  This three-way relationship between sponsor, individual client and coach is a crucial part of ensuring that coaching achieves outcomes that are aligned with corporate goals.

Feedback and evaluation methods should also be agreed at the outset.  The organisation will now have a firm foundation on which to build a coaching programme for leadership success.

In conclusion

It is useful to look at wider evidence for the value of corporate coaching.  A study of Fortune 1000 companies showed quantifiable improvements: 

• 53% of respondents reported improvements in productivity
• 39% of respondents reported improvements in customer service levels
• 32% of respondents reported improvements in retention of senior people who received coaching
• 23% of respondents reported improvements in  cost reductions
• 22% of respondents reported improvements in  bottom line profitability

Whilst these figures are impressive, can they be said to relate to the impact coaching has had on Emotional Intelligence?  In the same study, recipients of coaching reported improvements in their performance which can, most certainly, be considered to be related to Emotional Intelligence factors: 

• 77% of respondents reported improvements in  working relationships with direct reports
• 71% of respondents reported improvements in  working relationship with the boss
• 67% of respondents reported improvements in  teamwork
• 52% of respondents reported improvements in conflict reduction
• 37% of respondents reported improvements in  working relationships with clients

Figures such as these demonstrate that the evidence for putting Emotional Intelligence at the heart of corporate and executive coaching programmes is significant.  Its impact throughout an organisation can be seen in positive changes in communication, leadership behaviours, and business relationships.  It can then, in turn, be clearly linked to organisational strategy through performance management, organisational change programmes, career management and succession planning.

Emotional Intelligence will continue to be a key focus for leadership in the coming years.  As Daniel Goleman expands his thinking into the arena of Ecological Intelligence, we can expect to see Emotional Intelligence in the workplace and its wider community rising as a factor in corporate social responsibility strategies too.  And it will be the Emotionally Intelligent leaders who will be at the forefront of these trends.  As Goleman himself says:  “Great leaders move us. They ignite our passion and inspire the best in us. When we try to explain why they are so effective, we speak of strategy, vision, or powerful ideas. But the reality is much more primal: Great leadership works through the emotions.”

The white paper is free to download and ideal for HR decision makers and anyone involved in making the most effective coaching decisions in their business.  Download Getting the Best from your Corporate Coach here.

Informed by research amongst City of London firms by recruitment specialists Morgan McKinley and Vicki Espin of The Corporate and Executive Coaching Organisation, the white paper discusses how to establish criteria for measuring coaching success, how to determine whether a coach will have a good fit with the organisations and its needs, and how to effectively manage the coaching relationship.

Vicki Espin said, “Our research showed that just 30% of City firms with coaching programmes were able to assess the impact of those programmes on their bottom line.  Our white paper, “Getting the Best from your Corporate Coach” is our response to our findings.  It highlights the issues that companies should consider before engaging a coach to ensure that they will get a measurable return on their investment.”

“Getting the Best from your Corporate Coach” also details the qualities that companies should seek in a corporate coach, based on the National Occupational Standards for Coaching and Mentoring in the Workplace for which Vicki Espin sat on the Steering Board. 

The white paper is now available to all HR professionals and can be downloaded free from The Corporate and Executive Coaching Organisation web site here.

The company boasts a number of accolades including winning Best Coaching Programme from The Training Journal for 2008/2009 and Regional winners of a National Training Award for coaching and partnership for 2009/2010 presented at The East Midlands Conference Centre.

Positive thinking

Originally the CECO client base was mainly from the financial services sector.  They have since diversified into the retail, manufacturing, education and insurance sectors, training a large number of people to be professional coaches as Neil explains.  “To date CECO has trained and presented to over 6,000 new coaches, coached over 1,200 individuals at senior level and trained over 400 business leaders to coach inside their organisations.   We work with top level managers in businesses and pride ourselves on delivering the highest quality, professional service at all times.”

In the current economic climate, Neil and Vicki redefined their marketing strategy to compensate for the cut in spending by investment banks.  “We decided we were not going to join the recession as it didn’t sound much fun,” explains Neil.  “This was a deliberate strategy and completely altered our frame of mind to one of positivity rather than doom and gloom and is reflected in the contracts we won.

“Through a persistent contact strategy we are also finding that the banking sector is re engaging with us as organisations recognise the need to keep and develop key personnel, rather than rely on the cheque book.”

Skills development

Neil contacted the regional Business Link service for information about the Train to Gain initiative and to discuss CECO’s marketing strategy.   “We wanted to develop our website to enable us to sell products and services online such as distance learning modules of the ILM programme, our various books and to develop an interactive web presence,” explains Neil.

 “We also wanted to understand more about areas such as search engine optimisation and social networking.  Our local Business Adviser was a great help and provided details of fully funded workshops which were part of the eBusiness Programme.”

Their Business Adviser was able to help CECO identify and successfully apply for, Leaders First grant funding to help develop Neil’s marketing skills as he explains, “The new skills helped me to work on developing a new web presence for CECO and to take full advantage of social media networking.  We have also put a strategic marketing plan in place for future growth.”

Celebrating success

With Neil and Vicki continuing their professional development, the company has signed up to the Skills Pledge, a public commitment to investing in the skills of its workforce. Neil has been awarded a Professional Diploma in Executive Coaching from The Institute of Leadership and Management whilst Vicki has achieved a Post Graduate Certificate in Coach Supervision from Oxford Brookes University

“I think we could be the best kept secret in coaching,” says Neil.  “With the new marketing skills we are in a great position to raise awareness of what we can offer and to celebrate the awards and accolades we have achieved.”

 Neil’s top tips for business:

• You simply cannot operate a boom strategy or sell boom packaged products in a bust market.
• Review your strategy and take action immediately.
• Maintain a positive outlook and frame of mind, it will pay off.
• Seek help.  As a business we have always funded ourselves, there is some great advice and help available if you take the time and effort to seek it out.
• Keep in touch with your business adviser and let them know how your funding has helped

These awards are organised on behalf of the Department for Business, Innovation and Skills by UK Skills so we’re delighted to have been recognised for our work with Britannia – which recently merged with The Co-operative Financial Services (CFS) – for a successful company-wide coaching programme.

We have a long-established relationship with Britannia and the training programme won last year’s Training Journal Award for Best Coaching Programme so it’s very gratifying to have our work together further recognised.  Let’s hope this success continues to the National Finals.

Developed in partnership with The Corporate and Executive Coaching Organisation (CECO), Britannia’s coach training strategy equips senior managers with essential knowledge, skills and underpinning coaching philosophies – unlocking employee potential and putting training, development and a coaching culture at the heart of the business.

Karen Moir, CFS’ director of organisational development, said: “We are delighted to have received this external recognition. Our people are our greatest asset and, a fundamental part of our business strategy is to create a great place for our people to work, grow and develop. By investing in our people we believe results will follow and our accredited coaching programme is a great example of this. 

Held on Tuesday night – 21 October – at the East Midlands Conference Centre, Nottingham – The National Training Awards celebrated businesses and individuals achieving success through investment in training.

ITV Central Tonight presenter Sameena Ali-Khan presented Britannia and CECO with the ‘East Midlands Training Award for Partnership and Collaboration’. In congratulating all the winners, Sameena said: “This year’s recipients have set the benchmark high.  Each and every one of them has proven that in today’s current climate, high quality training is an integral part of both personal and business development.”

The awards were organised on behalf of the Department for Business, Innovation and Skills (BIS) by UK Skills. Commenting on the awards, Kevin Brennan MP – Skills Minister, said: “It is more important than ever that we continue to support and invest in the training of our workforce, helping individuals develop their skills as well helping businesses stay competitive and prepare for the upturn.  This year’s winners demonstrate the diverse range of training taking place within the UK and the benefits it is delivering to organisations and employees.”

Simon Bartley, Chief Executive of UK Skills – which manages the National Training Awards – concluded: “The winners in the East Midlands have demonstrated that training is an investment not a cost and that it can transform companies, careers, and communities.  I congratulate them all on what they have achieved.”

 –Ends–

 Photo: Collecting the award presented by ITV Central Tonight presenter Sameena Ali-Khan (far right) are; Vicki Espin (centre) – co-founder of the Corporate and Executive Coaching Organisation (CECO) and, left to right, Suzi Goodall, Liz Barnes, Kelly Platt, Sue Marriott and Adrian Powell – head of leadership and development at CFS.  

Notes to Editors

For case studies or more information please contact: 

• Andrew Torr – The Co-operative Financial Services Press Office – 01538 397855.
• Kate Moloughney, UK Skills kate.moloughney@ukskills.org.uk 0207 429 2827

About The National Training Awards

The National Training Awards (NTA) identify and celebrate organisations and individuals that have achieved really outstanding business and personal success through investment in training.

• Run on annual basis, The National Training Awards are free to enter and open in January.  Entries close in April.
• The National Training Awards includes the following categories:  Large Employer (250 +), Medium Employer (50-249+), SME (49 and under), Training Provider, Partnership and Collaboration and Individual.
• The ‘Now is the Time’ category was launched in 2009 to encourage employers who have invested in training during the recession, to share their experiences and get public recognition to their commitment to training and re-skilling. 
• The National Training Awards are organised on behalf of the Department for Business, Skills and Innovation (BIS) by UK Skills.  The National Training Awards support the training delivered by organisations working on the London 2012 Olympic and Paralympic Games.
• The National Training Awards support the Skills Pledge.

About The Co-operative Financial Services: 

The Co-operative Financial Services (CFS) is part of The Co-operative Group, which is the world’s largest consumer co-operative with around five million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care.  The Co-operative Group has over 5,300 retail trading outlets, including Somerfield.

We’re very much aware that many corporate organisations are not getting the return that they should be for a range of reasons, which is why we are currently putting together a free guide to Getting the Best from your Corporate Coach. 

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