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Internal or external coach? How to choose and what both should have in common 

Over recent years there has been a significant rise in individuals within an organisation who hold a coaching qualification and go on to operate as an internal coach. This is often in addition to another, more sizeable, role held within the organisation. External coaches, on the other hand, are not directly employed by the organisation and provide coach services across a wide range of organisations and sectors. 

For those organisations looking to develop a coaching culture, it is often considered best practice to have a panel of both internal and external coaches available to support the needs of the individuals and teams within the organisation. But how do organisations know when to select an internal or external coach?

This article looks to explore 3 things: 

1. Some of the unique benefits and challenges of internal and external coaches.

2. Questions to help determine the best route to take.

3. Characteristics that both internal and external coaches should have in common.

  1. Some of the unique benefits and challenges of internal and external coaches.

Internal coaches 

BenefitsChallenges
Aligned with the organisations culture and valuesMight have biases or limitations in perspective because they are part of the same culture
Better understanding of internal dynamics and processesConflicting roles might make it harder to hold confidentiality
May have the ability to observe leaders in action and provide feedback around coaching goalsIt can be challenging to manage coaching time and other responsibilities within the organisation
An internal coach can more easily align to an organisations larger development program to keep goals consistentMight be seen as a less credible coach compared to an external coach. Often outside experts will be given greater respect 
A coachee may be more comfortable working with someone they knowCoachee may withhold sharing of information due to fear of consequences
An internal coach may have more time with the coachee and can get to know them betterIncreased scope for ethical dilemmas
Less expensive which means that they can coach further down the organisational hierarchyCosts of training, supervision and accreditation
 Coachees may have a more limited choice regarding which coach they work with
 May be harder to end a coaching relationship if any issues arise

External coaches 

BenefitsChallenges
The role of the external coach is often more clearly defined May take time to build an understanding of the organisations culture and processes
Can often offer fresh perspectives which may lead to more innovative solutionsAvailability may not meet short-term needs
Typically have a more specialist skill set and deeper level of experience across a broad spectrum of coaching philosophies, clients and organisationsCoaching often comes at a higher cost
Can offer an enhanced sense of confidentiality through clearly defined boundaries between coach and coacheeMay create inconsistencies with the methods of internal coaches, if they are also being used
Can provide feedback without fear of judgement from the coacheeThe ability to report back themes that could help organisational learning may be more difficult
Unlikely to be impacted by the culture or politics of the organisation 
Can provide an open environment to question established methods and practices  
The coachee would typically choose, through a series of chemistry calls, which external coach they would like to work with. This selection process is highly correlated with successful coaching outcomes 
Changing an external coach, if an issue arises, is easier and less damaging to working relationships 

2. Determining the best route

Coaching is not a ‘one size fits all’ solution. Consideration of the organisational context for coaching and the needs of the coachee and then establishing an approach congruent to those aspects is critical. 

These questions might help to determine the best route:

What is the purpose of coaching?

  • Understanding the specific coaching objectives, and how these fit in with the broader organisations purpose, mission and strategy can help determine which type of coach is better suited to meet the need. 
  • What are the perspectives of the different stakeholders on the work that needs doing? 

What’s the level of expertise required?

  • Is a specific focus / skill required: e.g. strategic influencing, leadership communication, wellbeing and resilience, maternity coaching, team coaching, administering psychometric assessments, neurodiversity. 
  • Does the coachee need reinforcement of internal cultural norms or is a different perspective required?

What is the level of confidentiality required?

  • Typically, the more senior the leader, the more likely an external coach will be a better fit. C-Suite executives, their direct reports, and even the next few levels down the organisational ladder tend to prefer anonymity when working with a coach so they can be fully vulnerable and transparent.

Is the individual deemed to be coachable?

  • Coaching is a significant investment and if there is a question around coachee readiness then an internal coach may be a great first step. With budgets increasingly limited, external coaches need to be used where they can produce the greatest returns.

What is the budget, timeframe and scale for the coaching engagement? 

  • Internal coaches might be more cost effective while external coaches can be more expensive but bring specialised expertise. 
  • Internal coaches may be able to meet a more urgent 1-1 requirement, whilst an external coaching company may be able to help an organisation scale up or down quickly. 

Whether the organisation selects an internal or external coach, both should have the following characteristics:

3. What they both should have in common:

  • Have undertaken a coaching training programme (and have a specific level of capability around core coaching competencies) and ideally hold a professional coach qualification.
  • Membership / accreditation by a professional coaching body, e.g. the International Coaching Federation (ICF), the European Mentoring & Coaching Council (EMCC), the Association for Coaching (AC) and demonstrate practice in accordance with the ethics of the coaching body.
  • Evidence of regular, ongoing, continuing personal and professional development and supervision.
  • Can handle ethical dilemmas.
  • Understand the processes and procedures around confidentiality and safeguarding and contract around these.  
  • Have a clear detailed agreement with the client organisation and coachee in writing.

In summary, when it comes to choosing between an internal or external coach, organisations will want to weigh up the benefits and challenges of both routes against such factors as the broader context, the specific coaching goals, levels of confidentiality, objectivity required, expertise and budget. 

Ultimately, the success of coaching relies on the levels of trust, commitment and collaboration between the coach and coachee, regardless of whether the coach is internal or external.

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About Aziz Corporate

Aziz was founded over 40 years ago by Khalid Aziz, a media pioneer of his day who at 21 became the youngest ever appointed BBC producer.

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