By Jeff Fierstein
Ongoing performance feedback and coaching are among the most effective strategies for reinforcing targeted learning and improving outcomes for both individuals and teams. Yet, a common question arises: How does this emphasis on regular coaching align with the more traditional, annual performance reviews and appraisals embedded in many HR structures?
The answer often lies in compliance. Annual reviews are frequently maintained to satisfy legal and regulatory requirements, serving as a safeguard against potential litigation or costly settlements. However, while these reviews are important from a risk management standpoint, they fall short in supporting real-time development and performance improvement. To close this gap, organizations must evolve their approach by incorporating frequent observation, assessment, coaching, and documentation into everyday management practices.
The Rising Importance of Coaching
Coaching is gaining traction in modern workplaces and is poised to become even more essential in the years ahead. It enables employees and teams to meet their objectives effectively, while also preparing individuals for advancement and long-term career growth. While mentoring often supports development for a specific future role, coaching tends to focus on enhancing immediate job performance, typically involving specific tasks or skills.
In today’s complex work environments—characterized by cross-functional collaboration, rapid change, and the need for strategic agility—leaders at all levels must ensure employees can apply new knowledge and capabilities effectively. This requires not only structured training programs but also deliberate coaching efforts led by managers and organizational leaders.
Moreover, senior executives will need coaching themselves to navigate organizational design, strategic planning, evolving markets, and other leadership competencies. As traditional command-and-control leadership models give way to more dynamic approaches, organizations must equip leaders with the behaviors and skills required to lead in this new era…
Internal vs. External Coaching
Organizations are increasingly reevaluating the balance between external coaches and internal coaching provided by managers and peers. External coaching can be valuable—particularly for executive development and major transitions—but it must be results-oriented and aligned with business goals. Unfortunately, many engagements become overly focused on personal venting, which rarely leads to meaningful, long-term behavioral change.
In practice, coaching should not be viewed as a remedy for “fixing” individuals perceived as problematic. Rather, it is a shared leadership responsibility—especially for managers—to guide and support their team members in developing the competencies needed for current roles and future opportunities.
Leveraging Internal Coaching Capabilities
Many companies are adopting peer and manager-led coaching models, supported by structured training programs. Internal coaches bring a critical advantage: familiarity with the organization’s culture, systems, and strategic direction. Intra-team and cross-functional coaching also facilitate knowledge sharing while reducing reliance on costly external consultants.
That said, no single manager can coach team members in every skill area. Instead, the role of the manager-coach is to facilitate development pathways, especially in preparation for promotions or participation in complex project teams. Peer coaching plays a complementary role, enabling frontline employees to support one another’s growth and reinforce critical competencies.
When equipped with the right tools and training, both leaders and peers can coach effectively. Ultimately, how we coach—whether as executives, managers, or peers—will shape our teams’ capabilities, resilience, and success.
Adapted from: Leadership Whack-A-Mole: Actionable Strategies for Leadership Challenges, (c) 2024 Ric Shriver and Jeff Fierstein. Learn more about the book by perusing this website or clicking on the banner below:
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