Two-thirds (65%) of companies run high-potential programs to develop exec-level talent, but 68% of those admit the programs aren’t working. That’s a significant investment going nowhere fast.
The usual culprit? Many companies are developing the wrong people, in the wrong way, at the wrong level.
Executive coaching has long been reserved for the C-suite, but some of the greatest returns on coaching investment come one or two levels below, with directors and VPs. This group is the operational backbone of most organizations. They own client relationships, lead teams, and make hiring decisions. Companies have a lot riding on them, both now and as future leaders.
Here are three ways companies can better support their high-potential middle and senior managers.
Reassess who gets support. More than 70% of top global companies rely primarily on subjective manager nominations to identify high-potential employees. This approach is inconsistent, disadvantages people with weaker managers, and means companies are likely to miss great talent.
Fewer formal programs, more personalized coaching. Training offsites are energizing in the moment, but the learnings often don’t last. Shifting development budgets to leadership coaching gives people actionable support earlier in their careers, increases retention, and amplifies the effectiveness of entire teams.
Transitions are coaching moments. Change is a constant, and transitions to new roles and levels are big changes. By the time someone reaches director or VP, an organization has made a significant investment — recruiting an experienced hire or developing talent from within. Coaching protects that investment, helping leaders stay effective as their roles evolve, teams change, and dynamics shift.
The Ripple Effect of Coaching
Think of coaching as a pebble dropped in a pond. When a middle manager develops stronger leadership and people skills, the effects spread. One coached director can shift the culture of an entire team. Coached leaders and teams are more supported and effective, more resilient and flexible in the face of change, and meet goals and KPIs more consistently.
If you’re building a culture of intentional, skilled leadership, coaching isn’t a perk. It’s a strategy. The investment is focused. The impact is wide. And it starts one or two levels below where most companies look.
Next week, we’ll discuss why coaching newly promoted employees — and those on the promotion track — is a smart investment.
Source: Cultivating Leaders Report by Richard Hodge & Jeannie Z. Taylor.