Increased use of business coaching has created a greater need for accountability and clearer contracts.
In this white paper, we explore the limited research available on contracting—the setting up, use and monitoring of the business coaching relationship. We do not try to develop a standard coaching contract as that would be too constraining for the majority of business coaches—each contract must be customized to the client’s requirements. Instead we provide a list of factors that should be considered in developing an effective contract.
Poor contracting creates issues for all parties—business coaching contracts are much more than who, what, when and where.
What is contracting?
The business coaching interaction uses all the elements we associate with wholesome and effective human relationships such as dialog, reflection, enquiry and exploration of meaning. But this interaction takes place within a specific and unusual context—a learning conversation where the agenda for the interaction is determined by only one of the partners in the conversation. This mix of familiar and unique can lead to misunderstandings and dilemmas for both parties unless the implicit psychological contract that is operating is made explicit. The initial exploration of the terms of reference for the relationship and its continual monitoring are at the core of contracting.
Other disciplines and helping therapies such as counseling have a wealth of experience in the management of these areas. Our research identified good practice that recognizes clarity of mutual expectations as vital for a good working relationship. We describe three types of contracts that invariably operate in any helping arrangement:
Contract early using all three contract types—seek transparency for all—review the existing contract often.
The elements under each of these contracts are varied, and we have reviewed what communities of practice and professional associations have identified as critical. These groups include the International Coach Federation (ICF), the European Mentoring and Coaching Council (EMCC) and the Worldwide Association of Business Coaches (WABC). The Executive Coaching Forum, for example, provides a valuable service with the Executive Coaching Handbook where they have a competency model that describes the requirements of a coach, including a specific section on contracting. The complexity of this section illustrates the dynamic nature of the contract. One area of particular interest is clear accountability. Negotiating the coaching contract can be an ideal opportunity to engage the sponsor fully with setting the coaching goals and designing the evaluation criteria. Real sensitivities are, however, involved in such three-way contracts, and we suggest the use of a no-fault exit clause for both sides if it becomes clear that things are not working. Some practitioners have identified issues with the three-cornered contract specifically and even the four-cornered contract, where the line manager is not the direct manager of coaching.
In general, the business coach can effectively steer through the maze of who the client is in this relationship by maintaining transparency and appropriate ethics. For example, a mismatch between the career aims of the individual and the requirements of the organization is not unusual. The business coach must negotiate goals based on the common ground between these two perspectives and use the business coaching intervention as a method of bringing them together.
The WABC Professional Standards for Business Coaches are explicit in the need to hold the potential tension between organizational and client agendas: “I will put the client first while at the same time respecting the objectives of the client’s organization.”
The issue of confidentiality is particularly marked in this regard as sponsors/line managers often assume they will receive reports of the progress of the coaching. Clearly this is not at the business coach’s discretion and a contracting conversation must take place with the sponsor and the executive to agree on the frequency and extent of reporting.
Proper business coaching contracting protects all parties (e.g., client, business coach, organization)—efforts are rewarded.
We suggest including the following key elements in the business coaching contract. Additional elements are identified in the full paper.
- The duration, number, frequency and venue of sessions
- Fees, cancellation policy and the availability of the business coach both in person and for email/telephone discussions
- The business coach’s area of practice and the mechanism for onward referral. This is critical when the coach is able to competently provide more than one type of service (e.g., consulting, training, mentoring). A contract should be limited to one type of service unless the client requires a “master” or “broad” contract, in which case each service must be explicitly covered.
- Indication that the coach may be in professional supervision and will be discussing the intervention under the appropriate confidentiality agreement there
- A limitation of liability clause, information about the business coach’s professional indemnity insurance and a no-fault exit clause and process
- The goals of the business coaching, identifying the specific outputs and behavior changes required in a manner that is measurable and clear, including time, cost, quality and milestones
- The model of practice to be used, including its limitations and strengths. Identify if real-time coaching is expected and if observation of the client is required. Identify with whom any assessments will be undertaken and who will see the results.
Full White Paper
The evidence shows that a business coaching contract should be negotiated early in the relationship and revisited often.
Coaching can help business executives to fine-tune skills that are crucial within today’s economic and market constraints. These include, for example, the ability to exert influence across organizational boundaries, to manage conflicts, and to create and articulate a vision. Coaching has also been shown to help leaders develop a clearer understanding of their roles and responsibilities. But perhaps most importantly, coaching can help new leaders deal with the aspects of transition, transformation, and change (Stout Rostron, 2009:61).
In order to make this happen, it is important for coach and client to carefully set out the boundaries for how communication is to take place. Developing the habit of both formal and informal contracting is one of the first steps in beginning to understand the dynamics of forming a coaching relationship and setting boundaries. The coach and client agree to conditions of time, space, fees, confidentiality, and goals. In contracting, the business coach agrees to a specific set of conditions.
Contracting the Relationship
The purpose of the contract is to open up the potential for trust between coach and client that is essential if the client is to trust his or her own self-exploration. As the agreement lays the foundation for the relationship, it must be adhered to in action for trust to develop.
The contract between coach and client sets out which services have been agreed upon and delineates all fees as well as the outcomes and deliverables that can be expected. The contract sets out ground rules for the coaching relationship so that both parties are aware of their obligations. This helps prevent future misunderstandings and provides a firm basis to deal with disagreements. The contract describes the relationship between the coach and multiple parties, such as the individual client, the client organization, the HR unit, and line management.
Objectives for the individual executive and for the organization need to be clarified, with boundaries made explicit in terms of confidentiality, fees, cancellation, and termination of the contract. Often in coaching, the contracting process is linked to the generation and fulfillment of outcomes. Contracting usually deals with the management of the process, roles being played, evaluation of the process, learning and outcomes, and exit clauses.
Another important aspect of contracting is the review of the contract when necessary, including termination or renewal. In any business contracting process, it is important to draw up the “marriage” and the “divorce” papers at the beginning: a bit like a prenuptial contract. It is important to specify the boundaries and parameters of the entire coaching intervention, i.e., how the process will proceed from beginning to end and how to terminate the process, whether at the contracted termination point or sooner if required by either party.
For example, last year one of my clients terminated the contract prior to the agreed upon period for the coaching intervention suggested by her organization. She and I verbally re-contracted together how she could manage her exit from the coaching process, how she would defend this position to her line manager and sponsor, and how she could negotiate re-entering the coaching process in the future when she felt more ready. This was made very transparent to the sponsoring organization. It is important that your contracting allows for this type of flexibility, yet keeps you within the bounds of your agreement with the third party or sponsor.
Defining Coaching in Your Contract
It is useful to include a definition of coaching within your contract, specifying how coaching differs from other helping professions. For example, “the services to be provided by coach to client are designed jointly with the client. Coaching, which is not advice, therapy, or counselling, may address specific personal or professional projects, business issues, or general conditions in the client’s life or profession.”
In our organization we use the following clause in our coaching contracts:
Throughout the working relationship, the coach will engage with the client in direct conversation. The client can count on the coach to be honest and straightforward in asking questions, making interventions, and facilitating the setting of goals. The client understands that the power of coaching is in the relationship between client and coach. If the client or the coach believes the coaching is not working as desired, either client or coach will communicate this.
Your Model as a Contracting Structure
A model is a metaphor for the entire coaching journey, yet embodies a structured process. The Purpose, Perspectives, Process model developed by David Lane within the scientist-practitioner paradigm (Lane and Corrie, 2006) can help you in three ways: to contract with the client, to structure the entire coaching journey, and to guide your coaching conversation. Out of the specific conversation about process can emerge the client’s purpose; the way your perspectives fit together can help clients to achieve their purpose; and the process within which you will work helps you both to achieve the outcomes desired.
Essentially, to contract the overall journey, coach and client discuss the overall aim of coaching for the client (purpose) and what each brings to the relationship (perspectives). Coach and client then discuss and contract how the coaching will take place: timing, boundaries, fees, the tools and techniques to be used by the coach, and the way the client would prefer to work (process). They also discuss the overall results and outcomes the client hopes to achieve from the coaching intervention, results that need to be visible to the organization, including thinking, feeling, and behavior that the client would like to change (outcomes as a result of process).
As a rule, I start the coaching conversation with perspectives: “Where are you now?” “What’s happening with you?” “What’s informing your thinking?” “What are your reflections on your current (or specific) concrete experience?” We move on to identify purpose: what they want to talk about, what their needs are for today, and what key outcomes they want to achieve. Once we have identified what needs to be worked on, we agree on the process we will work with using whichever question frameworks, tools, or techniques are relevant to that process. At the end of the session we summarize actions, learning, and outcomes that have resulted from the coaching conversation.
Any model that you use for your regular coaching conversations can help you to define a structure and process and set boundaries for working with your client. However, the name of the game is flexibility and working to the client’s needs, so anything prescriptive will only be for your needs. Remember, the conversation is about them.
Often when things go wrong it is due to poor practice on the part of the coach, perhaps from not setting proper boundaries (Ting and Scisco, 2006:19). Contracting and relationship building are crucial to the outcomes of any coaching intervention. Contracting is complex as it determines in what areas, and how deeply, the coach can work with the individual client, the team, and the organization in a holistic, integrated, and systemic way.
This article first appeared in Business Coaching Worldwide (October Issue 2010, Volume 6, Issue 3).
Lane, D.A., and Corrie, S. 2006. The Modern Scientist-Practitioner: A Guide to Practice in Psychology. Hove: Routledge.
Stout Rostron, S. 2009. Business Coaching International: Transforming Individuals and Organizations. London: Karnac.
Ting, S., and Scisco, P. 2006. The CCL Handbook of Coaching: A Guide for the Leader Coach. San Francisco: Jossey-Bass.
Dr. Sunny Stout Rostron, DProf, MA
Dr. Sunny Stout Rostron, DProf, MA, is an executive coach and consultant with a wide range of experience in leadership and management development, business strategy and executive coaching. The author of six books, including Business Coaching Wisdom and Practice: Unlocking the Secrets of Business Coaching (2009), Sunny is Director of the Manthano Institute of Learning (Pty) Ltd and is President Emeritus of COMENSA (Coaches and Mentors of South Africa).
The focus of the coaching conversation is to help the client work toward achieving their desired outcomes. It is in this process, where coach and client reflect on the client’s experience, that the potential for learning and action emerges. Business coaching has been defined in many different ways, but is essentially a one-on-one collaborative partnership designed to develop the client’s performance and potential, personally and professionally, in alignment with the goals and values of the organization. Business coaching should be aligned strategically with the overall values and objectives of an organization.
However, an important question is raised for executives: if goals are to be motivationally achieved, are they also aligned with the individual’s values, beliefs, and feelings? Often organizations merely pay lip service to organizational values, and don’t necessarily create them as a synthesis of the core individual values that make up the culture of the organization. Ethical dilemmas can arise during the coaching process if the executive needs to make difficult choices that are incompatible with their own value system.
Goals, Motivation, and Performance
If you wish to help your clients improve their behavior and performance, it is useful to understand the psychology behind adult behavior, goals, and motivation. Alfred Adler, who worked with Sigmund Freud for ten years, reasoned that adult behavior is purposeful and goal-directed, and that life goals provide individual motivation. He focused on personal values, beliefs, attitudes, goals, and interests, and recommended that adults engage in the therapeutic process and reinvent their futures using techniques such as “acting as if,” role-playing, and goal setting. All these tools are utilized and recognized by well-qualified business coaches worldwide.
Motivational theories primarily focus on the individual’s needs and motivations. I have typically worked with coaching clients to help them understand more fully their intrinsic motivators (internal drivers such as values, beliefs, and feelings), and how to use extrinsic motivators (external drivers such as relationships, bonuses, environment, and titles) to motivate their teams. If an individual’s goals are not in alignment with their own internal, intrinsic drivers, there will be difficulties for them in achieving those goals.
In an International Coach Federation study (ICF, 2008a), Campbell confirmed that coaches often assume clients are aware of their values, but within the confines of the study this appeared to be incorrect. The clients interviewed indicated they were not aware of their values, and that acquiring a process of awareness and reflection led them to become more aware of their emotions, their values, and the need to clarify their goals. Whitmore (2002) supports this and states that the goal of the coach is to build awareness, responsibility, and self-belief.
The coach’s intervention and questions help the client to discover their own intrinsic drivers or motivators, and allow both coach and client to identify whether the client’s personal, professional, and organizational goals are in alignment.
Adult and Experiential Learning
Adult learning theory has influenced coaching from the start: the goal of adult learning is to achieve a balance between work and personal life. In the same way, most business coach-client relationships involve an integration of personal and systems work. Personal work is intended to help the client develop the mental, physical, emotional, and spiritual competence to achieve their desired goals; systems work may be found within a partnership, marriage, family, organizational team, or matrix structure.
Another powerful influence on goal-setting in coaching is experiential learning because it emphasizes a client’s individual, subjective experience. In this process, coach and client probe the essence of an experience to understand its significance and to determine any learning that can be gained from it. The importance of experiential learning is that coach and client use the business coaching conversation to actively reconstruct the client’s experience, with a focus on setting goals that are aligned with the client’s intrinsic drivers, i.e., values, beliefs, and feelings.
Other considerations may be language, social class, gender, ethnic background, and the individual’s style of learning. In learning from experience, it is useful to understand which barriers prevent the client from learning. Often it is a matter of developing self-reflective skills as much as self-management skills. What clients learn from their experience can transform their perceptions, their limiting and liberating assumptions, their way of interpreting the world – and their ability to achieve results.
Types of Goals
The coach is responsible for ensuring that goal-setting conversations get the best results. O’Neill (2000) differentiates between two kinds of client goals, business and personal, and links the coaching effort to a business result, highlighting and prioritizing the business areas that need attention. Business goals are about achieving external results; personal goals are what the leader has to do differently in the way they conduct themselves in order to get the business results they envision.
Yalom (1980) talks about two types of goals: content (what is to be accomplished) and process (how the coach wants to be in a session). However, he also describes the importance of setting concrete attainable goals – goals that the client has personally defined, and which increase their sense of responsibility for their own individual change.
If the client is to learn how to learn, they need to cultivate self-awareness through reflection on their experience, values, intrinsic drivers, the impact of these on others, the environment, and their own future goals. This process is often implicit in the coaching relationship through the process of questions and actions that develop critical reflection and practice. As a coach, you will be asking questions to help clients reflect, review, and gain useable knowledge from their experience. A useful structure for your work with business executives is along the continuum of a development pipeline developed by David Peterson (2009). Your questions and challenges in your coaching sessions can help your clients reflect in five areas:
- Insight: How are you continually developing insight into areas where you need to develop?
- Motivation: What are your levels of motivation based on the time and energy you’re willing to invest in yourself?
- Capabilities: What are your leadership capabilities; what skills, knowledge, and competencies do you still need to develop?
- Real-world practice: How are you continually applying your new skills at work?
- Accountability: How are you creating, defining, and taking accountability?
Business coaching places great emphasis on clarifying and achieving goals. Often within the complexity of the organizational environment, the client’s overarching goals may be set by a more senior power; where that senior individual may have different worldviews, paradigms, and limiting or empowering assumptions. It is crucial that the client have a “living sense” of what their goal may be. In other words, goals must be aligned with the values of the individual as much as with those of the organization if they are to be achieved. This article is adapted from “Goals and Goal-Setting” by Sunny Stout Rostron (COMENSANews, February 2010 (www.comensa.org.za).
This article first appeared in Business Coaching Worldwide (June Issue 2010, Volume 6, Issue 2).
Griffiths, K. E, and Campbell, M. A. (2008). Regulating the Regulators: Paving the Way for International, Evidence-Based Coaching Standards. International Journal of Evidence-Based Coaching and Mentoring, 6(1):19-31.
International Coach Federation (ICF). (2008a). Core Competencies. Lexington, KY: ICF.
International Coach Federation (ICF). (2008b). ICF Code of Ethics. Lexington, KY: ICF.
O’Neill, M. B. (2000). Coaching with Backbone and Heart: A Systems Approach to Engaging Leaders with Their Challenges. San Francisco, CA: Jossey-Bass.
Peterson, D. (2009). Executive Coaching, A Critical Review and Recommendation for Advancing the Practice (in S. Zedeck (Ed.) Handbook of Industrial and Organizational Psychology. Washington DC: American Psychological Association.
Stout Rostron, S. (2009). Business Coaching International, Transforming Individuals and Organizations. London: Karnac.
Whitmore, J. (2002). Coaching for Performance: Growing People, Performance and Purpose. London: Nicholas Brealey.
Yalom, I. D. (1980). Existential Psychotherapy. New York: Basic Books.
Dr. Sunny Stout Rostron, DProf, MA
Dr. Sunny Stout Rostron, DProf, MA is an executive coach and consultant with a wide range of experience in leadership and management development, business strategy and executive coaching. The author of six books, including Business Coaching Wisdom and Practice: Unlocking the Secrets of Business Coaching (2009), Sunny is Director of the Manthano Institute of Learning (Pty) Ltd and founding president of COMENSA (Coaches and Mentors of South Africa).
You may be the best coach in the world, but if the person you are coaching shouldn’t be coached, it’s not going to work. I’m sorry to say that try as I might to help some people change I have come to the conclusion that some people are unsalvageable. Through years of trial and error, I have shed all illusions about my astounding behavioral change methods, and concluded that some flaws just can’t be coached away by anyone.
So, how do you know when someone is uncoachable? How do you detect a lost cause? Following are four key indicators that your coachee is not coachable:
- She doesn’t think she has a problem.
- He is pursuing the wrong strategy for the organization.
- They’re in the wrong job.
- They think everyone else is the problem.
She doesn’t think she has a problem.
This nice woman is a successful adult who has no interest in changing. Her behavior is working fine for her and she just doesn’t care to convert. If she doesn’t care to change, you are wasting your time! Here’s a little example. My mother, a lovely woman and much-admired first grade teacher, was so dedicated to her craft that she didn’t draw the line between inside and outside the classroom. She talked to all of us, including my father, in the same slow, patient manner, using the same simple vocabulary that she used with her six-year-olds every day. One day as she graciously and methodically corrected his grammar for the millionth time, he looked at her, sighed, and said, “Honey, I’m 70 years old. Let it go.” My father had absolutely no interest in changing. He didn’t perceive a problem. So no matter how much, how hard, or how diligently she coached, he wasn’t going to change.
He is pursuing the wrong strategy for the organization.
If this guy is already going in the wrong direction, all you’re going to do with your coaching is help him get there faster.
They’re in the wrong job.
Sometimes people feel that they’re in the wrong job with the wrong company. They may believe they’re meant to be doing something else or that their skills are being misused. Here’s a good way to determine if you’re working with one of these people. Ask them, “If we shut down the company today, would you be relieved, surprised, or sad?” If you hear ‘relieved,’ you’ve got yourself a live one. Send them packing. You can’t change the behavior of unhappy people so that they become happy: You can only fix behavior that’s making people around them unhappy.
They think everyone else is the problem.
A long time ago I had a client who, after a few high-profile employee departures, was concerned about employee morale. He had a fun, successful company and people liked the work, but feedback said that the boss played favorites in the way he compensated people. When I reported this feedback to my client, he completely surprised me. He said he agreed with the charge and thought he was right to do so. First off, I’m not a compensation strategist and so I wasn’t equipped to deal with this problem, but then he surprised me again. He hadn’t called me to help him change; he wanted me to fix his employees. It’s times like these that I find the nearest exit. It’s hard to help people who don’t think they have a problem. It’s impossible to fix people who think someone else is the problem.
My suggestion in cases like these? Save time, skip the heroic measures, and move on. These are arguments you can’t ever win.
This article first appeared in Business Coaching Worldwide (Fall Issue 2007, Volume 3, Issue 3).
Marshall Goldsmith, MBA, PhD
Marshall Goldsmith, MBA, PhD, founder of Marshall Goldsmith Partners LLC, is a world authority on helping successful leaders achieve positive, lasting behavioral change. His executive coaching expertise has been highlighted in Forbes, Fast Company and Business Week. The most recent of his 22 books is What Got You Here Won’t Get You There (Hyperion, 2007).