2017 Executive Coaching Survey FINAL
2017 Executive Coaching Survey FINAL
2017 Executive Coaching Survey FINAL
1
Statement of Intellectual Property Rights
© 2017 by Sasha Corporation in This document contains information ALL RIGHTS RESERVED.
Cincinnati, Ohio, USA, the holding available exclusively from Sherpa’s
company for Sherpa Coaching, LLC. proprietary research, a body of work No part of this work covered by the
that is to be considered a trade secret. copyright thereon may be
reproduced or used in any form or by
Produced and printed in the United This document is only authorized as any means: graphic, electronic, or
States of America. a hard-copy version, available for mechanical, including
purchase from Sherpa Coaching, photocopying, recording, taping,
This research is offered by Sherpa LLC, Cincinnati, Ohio USA, and Web distribution, or information
Coaching LLC, Cincinnati, Ohio made available to attendees at storage and retrieval systems, or in
USA, as a service to executives and EXCO 2017, the Executive any other manner - without the
their coaches. Coaching Conference held June 4, 5 written permission of the publisher.
and 6 in Cincinnati, Ohio USA.
This report is a distinct work from Please do not quote or otherwise use
the 2017 public report made any part of this survey without
available for download at no charge editorial permission from Sherpa
by its owner, Sasha Corporation, Coaching, obtainable by email
through the website of Sherpa request to the publishers’
Coaching LLC. international media desk,
[email protected].
2
3
4
Table of Contents
Copyright 2
Infographic 4
Welcome 6
Defining the Industry 7
A Shared Definition 9
Coaching Constants 10
Landscape of Coaching 14
The Purpose of Coaching 15
Strengths versus Weaknesses 17
Measuring the Benefits 26
Demand for Coaching 31
The Coaching Confidence Index 33
How Coaches Market Their Services 35
How Buyers Find a Coach 37
Delivery and Technology 39
Who Gets a Coach? 43
Women in Leadership 47
Performance Management 52
Standards of Practice 54
Internal and External Coaches 59
Executive Coach, Business Coach 64
The Purpose of This Research 68
Report Topics and Distribution 69
Participation 70
Analytics 72
Global Reach, Global Results 73
Top Metro Areas 74
The Publishing Team 75
Sponsors 70
EXCO: 2017 Coaching Conference 81
5
The Executive Coaching Survey
This year, as always, we polled coaches, clients, HR and training professionals, and a wider
group of professionals with an interest in leadership development.
6
Defining the Industry
With thanks to our sponsors and supporters, the Executive
Coaching Survey is a market research project now in its
twelfth year. Through this market research, you will
discover how to make the most of coaching as a service for
your organization – or as a career for yourself.
7
Defining the Industry
To gather insightful and useful data we need to distinguish between coaching, training,
consulting, and other professional positions. It also allows us to separate and analyze
answers that come specifically and exclusively from executive coaches. We can make direct,
factual comparisons between different types of professionals.
We need a clear, academically sound definition of the role of an executive coach. One early
definition described coaching as something that would: “…produce extraordinary results”
and “…enhance quality of life.” However, the definition can’t be promotional or guarantee
specific results, so that language didn’t last long.
An accurate and viable definition of executive coaching should provide specific information
that distinguishes it from other coaching – such as life, sports, fitness or business coaching.
* Definition from 'The Sherpa Guide: Process-Driven Executive Coaching’ (Thomson 2005)
8
A Shared Definition
9
Coaching Constants
The world of executive coaching changes as markets, practices, and local economies change.
Monitoring trends puts us in great position to make predictions about the coaching industry
and provide insight for coaches and clients. However, identifying trends is only one side of
the coin. While many aspects of the coaching world have changed (or will change) some
remain constant. With 12 years of survey data at our fingertips, not only do we see what
changes, but we can also see what aspects of the industry remain constant.
"Coaching Constants" are areas of executive coaching that don't seem to change at all. What
can these valuable Coaching Constants tell us about the state of executive coaching?
With the high value of coaching firmly established, the ‘credibility of coaching’ emerged as
another Coaching Constant. Although credibility started at a lower level, for five
consecutive years going into 2016:
Over 90% agreed that the credibility of coaching was somewhat or very high.
It became such a slam dunk guarantee that we didn't include even include the question
this year!
10
Coaching Constants
Standards
First, we saw the value and credibility of coaching trend upward and level off. Then clients
started to really “buy in” to the coaching industry – literally and figuratively – and more
Coaching Constants emerged.
This is another question where trends emerged before leveling out into constants. The third
option, 'individuals in transition,' has hovered at 20% for every single year of the survey. The
other two options trended in opposite directions before starting to level out. 'People with a
specific problem or challenge' is leveling out at 20%, and about 60% of survey respondents
have consistently said an executive coach is most needed by 'people who need leadership
development.'
11
Coaching Constants
When clients need to hire a coach how do they find one? One option here has dominated
the rest, but this Coaching Constant is under siege. About 73% of people find a coach through
personal reference – far more than all the other options (web search, trade association,
LinkedIn, and service broker) combined. But while personal reference stands above the rest,
web search nearly doubled over the last 3 years. As information technology and social media
expand, other methods of finding a coach may cause the number of people relying on
personal reference to decrease. What was once a Coaching Constant is starting to change.
So far, we've seen a few Coaching Constants: from the value and credibility of coaching to
who needs coaching and how they find it. Let’s look at a few survey questions about coaches’
processes and backgrounds.
12
Coaching Constants
Do coaches base their coaching on a published process? The answer to this question has
remained remarkably consistent over the years. Only 25-30% follow a specific published
process while greater than 70% do not. Companies are hiring younger coaches and training
them in the use of a published process. If this continues, and some of these coaches become
independent, we’ll see a gradual change over decades. Eventually, new trends will emerge
out of this apparent Coaching Constant.
What are some constants we’ve seen about a coach’s background? Very consistently over
the years, about 95% of coaches have said a background in neuroscience moderately or
positively affects credibility. However, only 10% of coaches say their training was based on
neuroscience and/or psychology. It has also become very clear that a majority of
professionals think coaches should have at least a working knowledge of neuroscience. And
85% of all respondents agree that neuroscience should have a role in coaching.
13
Landscape of Coaching
When this research started in 2005 the field of executive coaching was still in its formative
years. Hundreds of coaching schools opened and closed. Trade organizations came and
went. The role and definition of coaching remained poorly defined. Coaches themselves
were confused about what they did – and what exactly to call it. Since then, the industry has
matured, developing some standards and constants along the way.
The average age of executive coaches hasn’t changed much over the years. New coaches
enter the market, but they do not encounter a barrier to entry created by an over-saturated
market. There is turnover, and the average age of coaches doesn't change. How can we tell?
Rather than their age, what we see increasing is coaches’ tenure – their years of service.
The number of veteran coaches with 10 or more years of experience increases every year.
This indicates that executive coaching has become a more clearly defined and stable
professional field.
14
The Purpose of Coaching
There are three main reasons coaches are hired. Coaching is used to solve specific behavioral
problems, to assist in transition and to develop ‘up and coming’ leaders.
In 2009, responses started to show this change. Over the years, the figures have moved
constantly in one direction. Two years ago, we said “this trend won’t be reversed.” Last year,
for the first time ever, ‘a specific problem or challenge’ became the least likely reason that
someone would be paired with an executive coach. This year’s data confirms the change in
rankings.
15
The Purpose of Coaching
Over the years, the purpose of coaching has shifted from problem solving toward
proactive leadership development.
16
Strengths versus Weaknesses
There are two basic schools of thought in coaching. One approach involves
identifying and working on strengths. The other focuses on identifying and correcting
weaknesses, or deficits. Let’s look at the differences between what we call Appreciative
Inquiry (focusing on strengths) and the Deficits Approach (focusing on weaknesses):
Strengths
Advocates of strengths-based coaching, drawing from positive psychology, will say: “Know your strengths, craft
your life around them and you will be happier, more productive and reach your goals. Positive psychology
supports change by focusing on positive emotion and core strengths -- rather than negative emotion and
overcoming weaknesses”.
Weaknesses
The weakness-based approach says: “Your strengths have gotten you where you are. Dealing with weaknesses
in behavior is the only way to get to the next level.” Advocates of the deficit approach include Marshall
Goldsmith and ‘Sherpa Guide’ author Brenda Corbett, who writes: "Often, a client has reached a plateau with
his strengths, but is stuck because of his weaknesses.”
17
Strengths versus Weaknesses
So, who gets a coach? How are coaches chosen for an assignment? Does a coach’s preferred
approach mean they only work with a certain type of client? You might guess that they do,
but there's no evidence of a hard and fast rule. Coaches who favor Appreciative Inquiry
aren't necessarily working in a proactive relationship. They might, at times, work with
leaders' specific problems or challenges. Similarly, coaches who focus on weaknesses don't
work exclusively with clients who have problem behaviors.
In fact, a writer for Forbes Magazine, quoting this survey, concluded incorrectly that coaches
who favor one approach work solely in that area, saying: “According to Sherpa’s 2015
Executive Coaching Survey, there are about twice as many coaches in the market who focus
on strengthening leadership skills as there are so-called deficit coaches who specialize in
problematic leaders.” True, twice as many coaches prefer the strengths approach. But that
doesn't mean they're only working with clients in proactive leadership development.
18
Strengths versus Weaknesses
What does the data say? This year, we see both weakness-based and strengths-based
coaches working on problems more often than they did last year. We also see plenty of
weakness-based coaches working with leadership development clients.
19
Strengths versus Weaknesses
Let’s look at some other differences between coaches using the Appreciative Inquiry method
versus those using the Deficits Approach.
Delivery:
Process:
Strengths coaches most often “develop a unique approach from client to client,” and are
less likely to follow a published process. Deficits coaches follow a published process more
often.
This is, in part, the result of available training and education. The Sherpa process, the most
widely used coaching process, and its related university certification is based on the deficit
approach. Comments left by our survey respondents tell us that after training, Sherpa
coaches stay with the process they were taught.
20
Strengths versus Weaknesses
This is our third year asking coaches which approach they favor. We found slight differences
this year in coaches’ appraisal of the results they achieve. Over two thirds (67%) of strengths
coaches describe their results as ‘excellent’ while 62% of deficits coaches do.
The gap between the two is shrinking, with deficits coaches reporting much better results
than last year:
Every coach deserves fair compensation for their work. Individual coaches can compare their
rates to the survey's global numbers, based on approach, type of client, and other important
factors. The 2017 survey indicates that deficits coaches charge higher rates for their services.
Nearly two thirds (61%) of coaches who prefer the Deficits Approach charge over $300 per
hour, while closer to half (54%) of Appreciative Inquiry coaches do.
21
Strengths versus Weaknesses
Do different types of business professionals favor one approach more than the overall
averages? It turns out that HR & Training Professionals are more likely than business people
or executive coaches to prefer focusing on weaknesses.
About a third of HR professionals favor the Deficits Approach. Other professionals are split
about 25% to 75% in favor of strengths.
22
Strengths versus Weaknesses
For the first, time, Deficit coaches are now equally likely to work on proactive leadership
development.
23
Strengths versus Weaknesses
As coaching evolves in different regions, the approach that coaches choose and executives
favor varies from one place to the next. National culture also contributes to the approach
people choose for coaching. North Americans are most likely, among major markets, to
select the deficits approach. Australians are most likely to work with strengths.
24
Strengths versus Weaknesses
The gap between the two approaches has closed over the last year. Support for neuroscience
remained flat among strengths-based coaches, and improved significantly among deficit
coaches.
25
Measuring the Benefits
The only way to gauge whether results are improving is to measure them. How
do business leaders measure the benefits of coaching?
Compared to last year, the two lowest-rated methods, ROI and Effectiveness of Learning,
fell further. Well-being and engagement lost about 10% of its support, dropping from 22%
to 20%. Performance reviews surged from 16% to 20%, and Impact on Business picked up
two points, from 13% to 15%. 360 stayed constant at 29%.
26
Measuring the Benefits
With so many different methods in use it can be helpful to see which type of professionals
use which methods. Do all professionals use the 360 Feedback method most? Who uses
Performance Reviews or Impact on Business?
The 2017 survey shows that HR, training, and other professionals actually prefer to measure
the benefits of coaching through IOB: Impact on Business. Executive coaches only use IOB
13% of the time while Human Resources people use it considerably more often, 33% of the
time.
27
Measuring the Benefits
Over the last few years, the number of executive coaches using
ROI to measure the benefits of coaching has hovered at 10% or
less. In a notable change, the number of consultants (business
coaches) who use ROI to measure coaching’s value dropped
from 33% to 25% three years ago, and now stands at 19%.
Last year in the UK performance reviews are once again edged out by 360 assessments.
Performance reviews, however, are gaining on 360’s.
Globally, before-and-after 360 assessments are still the most frequent method of
measuring benefits gained from coaching. but Impact on Business took 6% of market share
over the past year.
28
Measuring the Benefits
An improved sense of awareness (of self and others) was mentioned literally hundreds of
times by those who took the 2017 survey.
• A business coach from Toronto, Canada mentioned “knowing yourself and elevating
your awareness” as benefits of coaching.
• A UK business professional commented that “greater levels of self-awareness and
awareness of others [creates] more trusting and effective relationships, enabling a
shift in organizational performance.”
• An executive coach from Phoenix in the USA responded: “examination of blind spots
[leads] to greater self-awareness, increased confidence, and more effective
engagement, influence, and action.”
Tied in with the theme of improved awareness is the idea of creating real, lasting changes
in behavior.
• A coach in Canada said the benefits of coaching include “the direct one-to-one
contact of learning, applying and evaluating,” and that “the chances of noticeable
improvement are greatly enhanced with one-to-one coaching.”
29
Measuring the Benefits
• A UK coach points out that “clients feel they have achieved change through their
own effort,” which is a key point mentioned by many others.
• A coach in the Washington D.C. area says a great coach “creates meaningful
behavior change that the client can sustain over time and that improves the well-
being and effectiveness of the individual, team, and organization.”
Many other coaches, HR staff, and business professionals echoed the same thoughts.
Several also pointed out that these lasting changes go beyond the business world and
create improved relationships and successful endeavors in other aspects of life.
• A coach from the Southeast region of the USA says a coach’s role is “navigating
client breakthroughs to transform the human capital attitudes and performance in
their respective industry.”
• A German coach pointed out that great coaching teaches leaders “to be authentic
and autonomous. Becoming a leader is authentic with becoming yourself, and …
success is due to your ability to communicate, negotiate, and lead.”
Comments like these showed up extensively throughout the 2017 annual survey. Finally,
this comment, from a business professional in Calgary, Canada, touches on all 3 of these
themes. The benefits of coaching include gaining “self-awareness which translates into
effective behavior, on-the-job application, and life fulfillment.”
30
Demand for Coaching
The role of executive coaching in the modern business organization is now firmly
established. The perceived value and the credibility of coaching stand at record highs.
Every year we have a chance to see what people predict about coaching
and compare that with actual results. Optimism about demand for
coaching has faded slightly over the last three years. Last year more than
5% of coaches changed their positive estimations to neutral or negative,
perhaps reflecting economic uncertainty.
31
Demand for Coaching
Executive coaches are less optimistic than business and life coaches. Levels of optimism are
nearly equal across gender and age.
Again this year, optimism among HR and training professionals equaled or bettered the
results from coaches themselves.
32
The Coaching Confidence Index
You may have heard of the Consumer Confidence Index – a tool that measures the state of
the economy based on consumer data. We’ve developed a similar tool to analyze the state
of the coaching industry based on several factors that affect it:
We’ve tracked an extensive amount of data as the world economy has shifted over the years.
We can combine data from these categories to create the CCI: inflation-adjusted rates
charged by coaches; the number of clients they serve; predictions about demand; the
amount of effort coaches put into marketing; and more. We continue to fine tune this
formula each year.
A few years ago, the Coaching Confidence Index improved at a healthy rate. This
improvement reflected economic recovery, which led to higher employment and larger
budgets for professional development. For three years, the coaching market settled in to a
very stable position.
33
The Coaching Confidence Index
After three solid years, the CCI fell sharply the past two years. The current index is again
negative (below 100). Factors including the number of clients seen, a decrease in billing rates
and lower optimism have pulled the index back significantly, with little change this year over
last.
34
How Coaches Market Their Services
The landscape of marketing and promotion has changed in recent years. Advertising and
networking now go way beyond the traditional methods of the past. This year, for the second
time, we asked executive coaches how they make the public aware of their services.
Respondents chose among these options:
Taking into account the number of coaches responding and their current or planned use, we
created a power ranking, rating each medium on a scale of 1 to 100.
35
How Coaches Market Their Services
Only two of the top eleven, YouTube and Internet ads, showed more coaches
planning to use versus already using.
The survey identified five media that the greatest number of coaches is planning to use. You
would expect the majority of new promotion to fall in these categories, in order of
importance:
Over the last two years, however, it seems that people are using web searches to replace
personal networking, brokers lost effectiveness in reaching clients. LinkedIn maintained its
4% share. Trade association directories showed little gain from two years ago.
As technology makes it easier for people to connect remotely, will the need for personal
referrals decline further? We will continue investigating and look for new trends in this
area.
37
How Buyers Find a Coach
38
Delivery and Technology
Delivery of coaching services goes hand in hand with emerging consumer technology. In their
2005 book “The Sherpa Guide: Process-Driven Executive Coaching,” Brenda Corbett and
Judith Colemon wrote: “Technology has added another option for coaching, that of point-
to-point video.... Over time, the quality of sound and images will only improve, making
coaching over the Web more and more like a live meeting.” That day has certainly arrived.
Coaches can deliver their services any number of ways, including: in person, by phone, by
videoconference, and more. As we investigate these methods of service delivery we analyze
two factors: how many coaches use a given method; and how much of their coaching is
conducted that way.
Let’s look at a hypothetical example. One coach conducts meetings entirely in person.
Another works in person half the time while using the phone for the other half. We can
describe this small sample by saying 50% of coaches use the phone (at some time or
another), and that 75% of all coaching is delivered live.
Technology has changed the way coaches and clients interact. We first
reported the use of webcams and applications such as Skype in 2009.
Between 2011 and 2012, use of these methods exploded. More than half
of coaches and clients experience webcam coaching to some extent, and
nearly a quarter (21%) of all coaching services are delivered that way.
39
Delivery and Technology
Nearly 100% of coaching clients (and purchasers of coaching services) prefer ‘face-to-face’
coaching.
Seven years back, 85% of coaches had in-person meetings with clients, at least some of the
time. Four years ago, that number had climbed to 93%. Almost every coach meets their
clients in person, at least some of the time.
40
Delivery and Technology
41
Delivery and Technology
The way coaches deliver their services falls across a broad spectrum:
There are executive coaches who meet via Skype, or meet on the phone, and never have
face-to-face meetings. They tell us that their average hourly fees are about 30% under
industry averages.
Technology is changing service delivery on both ends of the spectrum. Internet video is
replacing telephone coaching, while HD video is replacing the face-to-face meeting.
Starting with a big shift in 2011-2012, the amount of coaching done by telephone has
dropped by just about the same amount that webcam use has risen. Webcam coaching
accounts for 21% of all coaching, and 50% of executive coaches have at least some
experience with webcam coaching.
In-person meetings are being replaced, hour for hour, by meetings in HD video. HR and
training professionals now report that HD video is used for 11% of all coaching.
As high-def becomes more widely available and less expensive, it may replace webcam
coaching in the same way it is replacing in-person meetings. At least 12% of coaches already
have some experience with HD video.
42
Who Gets a Coach?
Coaching can be an expensive endeavor. It can be risky, too, since not all coaches produce
lasting results. Leaders at the top of an organization have the most influence, and seem to
be the most obvious place to allocate coaching resources. There is also benefit to be had
coaching at lower levels, and coaching the ‘rising stars’ in an organization.
Where is the money going? Here’s the global breakdown for 2017:
Executive coaching, in its early days, was being democratized, spreading across ‘all levels in
the organization’. Then, several years ago, it became the province of senior leaders and,
even more so, reserved for top executives. Coaching became more exclusive. The number
of organizations that reserved coaching for top executives grew, year by year, for five years
or more.
43
Who Gets a Coach?
The pendulum has swung back toward democratization, as confidence is restored in world
economies. The number of organizations with coaching ‘at all levels’ is on the rise. Coaching
for ‘senior managers only’ is also rising.
44
Who Gets a Coach?
45
Who Gets a Coach?
In Europe, the UK is the largest reporting market once again this year. Their level of
unrestricted coaching trails the USA by about 10 percentage points.
46
Women in Leadership
This year, for the first time, we investigated several questions aimed specifically at issues
related to women in leadership. While these issues aren't new, they're relevant to
organizations and business professionals around the world. With Sherpa's annual survey,
we're able to gather data that reveals peoples' perceptions in addition to facts on various
topics. The perception of leaders, coaches, HR & training staff, and other business
professionals reflects how organizations operate and reveals an overall attitude towards
women in leadership.
What can we draw from the data? What does the survey tell us about overall perceptions of
women in leadership? One thing we're able to do is break down the results and compare
men's versus women's perceptions. We can also look at age differences – do younger
executives see things differently than older ones?
47
Women in Leadership
We asked the following four questions about women in leadership. Survey respondents
answered on a 5-point scale: always, usually, sometimes, rarely, never.
• If women have the skills, they are given equal opportunity for advancement.
• Men and women are equally aware of opportunities when they arise.
• Both men and women have an equal chance to hold positions of power.
• My organization values women as leaders.
What can we make of these results? 'Always' and 'Usually' dominate the responses, and
'Never' doesn't even show up. On one hand, no one fully thinks women have equal
opportunity – 'Always' doesn't hit 100% in any of the questions. But 'Rarely' scored very low,
and the majority answered that women are highly valued as leaders.
48
Women in Leadership
We can use a 5-point rating system. The 'Always' answers get 5 points. 'Usually' earns 4
points, 'Sometimes' gets 3, 'Usually' gets 2, and 'Never' scores 1 point. Here's how our 4
questions perform in the 5-point rating system:
49
Women in Leadership
Organizations tend to value women as leaders, with a rating over 4 ½ points. However,
survey respondents tend to think women don't quite have an equal chance for
advancement. Nor are they equally aware of advancement opportunities. Both questions
scored nearly a half point lower. The difference here could indicate that most organizations
hold a positive attitude toward women in leadership – but don't quite give them an equal
chance to get there. Both questions about women as leaders scored higher than the two
questions about women becoming leaders.
Let's dig deeper into these results and break down some of these questions by gender, age,
and other factors.
There are clearly differences among the ranks, with executives holding a more optimistic
opinion. Which category of professional – executive or HR & training staff – is more likely
to have an accurate perception of an organization?
We also found that men and women see these issues differently. Men in leadership are
more likely than women in leadership to believe:
This result extends the global result described above. Women do think their organization
values female leadership, but they don't feel they're given an equal chance to reach those
roles.
50
Women in Leadership
What are some other differences we seen in the way men in leadership operate as
compared to women in leadership? Men seem to be ahead of the curve in offering
leadership development to their teams.
• More men in leadership are likely to have established team coaching in place, 44%
to 27%.
• Women in leadership are more likely than men, 31% to 24%, to have team coaching
programs in design or startup.
What could these differences mean? Why do more men in leadership have coaching
programs in place while women leaders' programs tend to be in startup mode? We will
watch trends as we move further into our research
51
Performance Management
The University of California, Berkeley, defines performance management as “an ongoing
process of communication between a supervisor and an employee that occurs throughout
the year, in support of accomplishing the strategic objectives of the organization. The
communication process includes clarifying expectations, setting objectives, identifying
goals, providing feedback, and reviewing results.”
When there is a difference between ideal results and actual results, the performance
management system is supposed to proscribe activities that improve performance. That can
mean any number of things. There is always the division between skills and behavior.
Performance enhancement will, most obviously, work on skills and knowledge. That means
testing and training, to see how much people know and what they need to learn.
Organizations with a ‘coaching culture’ include questions about business behavior in their
performance evaluations, and may recommend behavioral change for performance
improvement that includes one-on-one coaching, or training in coaching skills. It is not
apparent that people can do this successfully, however. This year, we saw a drop in the
number of organization who included questions about business behavior in their
performance management systems and reviews.
52
Performance Management
Our 2015 report showed a high incidence of coaching being ‘usually’ integrated into
performance management.
INFO 2017 showed a much higher incidence of coaching being ‘always’ integrated into
performance management.
53
Standards of Practice
Practice
Prior years’ research tells us that coaching will never be regulated. We know that the
industry reaches standards all on its own, with no outside intervention. Case in point: the
use of assessments as a coaching tool. Over time, every coach came to use an assessment.
Five assessments dominate the market. Their market share doesn’t change, year to year.
This standard of practice is so firmly embedded that we no longer ask about it.
So, what standards is the industry developing for the future? How do we distinguish trends
from emerging standards?
If the entire executive coaching industry moves one way or the other over time, it is a trend.
However, trends can be influenced by fads, fashion or the state of the economy. Not every
trend becomes a standard.
54
Standards of Practice
Will all coaches eventually follow a published process, similar to those used in accounting
and financial planning? Not likely. There has been agreement with that idea over the years,
but support leveled off six years ago.
As coaches take part in this study, they write in the process they use, if any. Again this year,
the most widely-used process for coaches is the Sherpa process, focused on weaknesses. In
second place, coaches list ICF Competencies, which does not seem to be a process in the
truest sense. The next highest mention goes to the Coactive process, which focuses on
strengths. These numbers include business coaches and life coaches.
To look at this data carefully, we can ignore coaches who do not follow
a process, those that did not specify one, and processes only
mentioned by one coach worldwide.
Now, let’s focus on executive coaches only. Use of the Sherpa process
is reported by 28% of those who specify one. The ICF Competencies
and the Coactive process are reported by 17% and 16% of coaches,
respectively. GROW and Sociedade Brasiliera de Coaching trail, with a
market share of 5% or less. The list, going past the first five slots,
changes from year to year.
55
Standards of Practice
However, fewer than three in ten coaches follow a published process. This means it is
unlikely that following a published process will become a universal practice, at least not any
time soon.
56
Standards of Practice
With so many training and certification programs for executive coaches, very few coaches
follow a published process. Things are starting to change. The following pages tell the
tale, with research only available in this hard copy report.
Younger coaches, and coaches who have entered the business more recently are most
likely to follow a published process, as this breakout report shows.
57
Standards of Practice
The results may be skewed, and perhaps they do not seem to represent a force that will
become trend. Here’s why:
Younger executive coaches are far more likely to be internal coaches. Their employer
selects their certification, and their coaching techniques are uniform.
As coaches go independent, they tend to develop their own process from a
combination of sources, or abandon process altogether.
Even if ‘following a published process’ does become universal, that does not mean that there
will only be one process. It most likely will be two or more, with one process appealing to
coaches who work with strengths, and another process appealing to those who work with
weaknesses.
58
Internal and External Coaches
We can split executive coaches into two general categories: internal and external. Let’s
review again how their roles differ.
As internal coaches gain experience and seniority, they can take on higher-level assignments,
working with top leaders in an organization. Often, however, their reach is limited as an
employee. As time goes on, many internal coaches go independent, to take full advantage
of their experience.
The following comments highlight some of the different roles and responsibilities of internal
versus external coaches:
An executive coach and trainer from Los Angeles, California told us: “Clients experience a release
from the circularity of their own thinking process, which is augmented by external coaches who can
provide a level of confidentiality unavailable to internal coaches.”
A veteran executive coach in Phoenix, Arizona says her clients have “freedom to be honest and
vulnerable with someone who is committed to supporting growth but detached from internal
communication, reporting systems and career decisions.”
59
Internal and External Coaches
This year’s study shows an increase in the number of men working as internal coaches, now
comprising nearly 50% of all internal coaches. That would indicate that men have entered
the ranks of coaching in greater numbers than women recent years. Women still dominate
among the ranks of external coaches, at 62% of the total, an increase from five years ago.
60
Internal and External Coaches
Our study shows some other significant differences between internal and external coaches’
styles. A company’s internal coaching staff will typically train together and aim to produce
consistent results as a team. As you can see below, internals are almost twice as likely to
follow a specific published process. Externals tend to “develop a unique process for each
client”.
61
Internal and External Coaches
62
Internal and External Coaches
We also found differences in the way the two types of coaches measure the benefits of their
training. Externals use the 360 Method more than other measures, at a 35% rate. Internals
use Impact on Business at an ever-increasing rate, now at 38%.
Return on Investment (ROI) has fallen below 10% for both groups.
GRAPH
63
Executive Coach, Business Coach
For years, we have asked coaches to identify themselves as either:
The role of the business coach can also be described as consulting, a term we will use in the
following report, for simplicity’s sake.
Demographics:
Women are the majority in executive coaching. 62% of executive coaches are female. Males
are predominant in consulting/business coaching, by a 57% to 43% ratio.
Consulting has fewer veterans and more new entrants than executive coaching. 86% of
executive coaches have been in business 5 years or more, while 81% of consultants are 5-
year veterans. There is far more turnover in life coaching, with only 66% having lasted 5
years or more in business.
Service Delivery:
In the past, our study showed that executive
coaches worked with clients face-to-face more
often than consultants did. For the last two
years, things have evened out, as consultants
now meet face-to-face with clients as often as
executive coaches.
64
Executive Coach, Business Coach
Executive coaches do more via HD video, at 8%, versus consultants, where only 5% use video
conferencing.
Additional information on billing rates and earnings is available in the 2017 Coaches’
Earnings Report, available at: http://sherpa-university.com/courses/44.
65
Executive Coach, Business Coach
Billing Rates: In general, executive coaches charge more for services than consultants, and
their rates are on the rise.
66
Executive Coach, Business Coach
Executive coaching dominates business coaching on the very high end as well, with 14% of
executive coaches reporting hourly earnings at $500 or above. Just 7% of business coaches
make more than $500 an hour.
67
The Purpose of This Research
The Executive Coaching Survey is a market research project, now in its twelfth year. The
report originates with Sherpa Coaching, headquartered in Cincinnati, Ohio, USA and is
copyrighted by Sasha Corporation.
Our focus has shifted as the industry has changed. As standards emerge and answers
become predictable, we move on, and study different topics. We have more questions for
business leaders, HR and training professionals than ever before.
The Executive Coaching Survey: a hard-copy report issued in February. This full
report is available for purchase at the Sherpa Store,
www/sherpacoaching.com/store. An abbreviated public report is available in
March as a free download at the Sherpa Coaching website.
The Global Study on Corporate Culture: This has now become a permanent,
year-round survey housed at www.corporateculture.cc
Business leaders use this research to design internal coaching programs and make intelligent
decisions about change management and corporate culture. Coaches use this report to
make strategic decisions about their careers.
Our most striking support is from individuals who take the time to participate, and eagerly
await the results each year. Their appreciation is ample reward for our investment in this
research.
68
Report Topics and Distribution
This report spotlights the professional activities of executive coaches, and serves as a
benchmark that guides the careers of coaches and the decisions of the people who hire
them.
Several years ago, corporate culture emerged as a major theme in the Executive Coaching
Survey. With the term ‘corporate culture’ becoming a part of daily language, HR personnel,
training professionals, and business leaders felt a need to know how their corporate cultures
compared to a global benchmark. Our research led to the creation of a new way of
measuring corporate culture across three dimensions:
The 2017 Coaches’ Earnings Report will be published in the first half of the year. The report
will be available from February 28 as a free program at the Sherpa Leadership Institute
Online (SLI Online), a new online learning center. Access the report at https://www.sherpa-
university.com/courses/44. You will want to set up a user account, at no cost or obligation,
so you can conveniently review research and other programs going forward. Visit
www.sherpa-university.com for details.
EXCO 2017, the twelfth annual Executive Coaching Conference, will feature detailed,
exclusive information from this market research, with a chance to pose questions to the
research team. See the last two pages of this document for details.
69
Participation
A large number of responses came in for this 12th annual report. In fact, we saw a surge of
over 50% from last year’s participation. It was still not enough to break our record, set by
the 10th annual survey,
This report is about executive coaching. You’d expect most of our contributors would be
executive coaches. That proves to be the case once again this year, with seven in ten
respondents describing themselves as ‘executive coaches, working on business behavior’.
.
70
Participation
How accurate is this survey? The chance our answers are not meaningful is called ‘sampling
error’. Look at this in its simplest sense. If you ask one person to respond to a ‘yes’ or ‘no
question, your results will either be 100% accurate, or 100% inaccurate, depending upon
whether that one person agreed with what we all think collectively. Your margin of error is
100%. You just might be totally wrong.
This year, over 900 people responded to this survey, providing a margin of error of under
3.2%. The accuracy of the survey’s conclusions is also confirmed by comparison with
responses from previous years, allowing the confirmation of trends over time. Based on an
ever-increasing body of knowledge, this 2017 report can share changes and trends
available nowhere else.
This survey gets information from a wide variety of people. We do not control or limit who
participates. There are no user-specific invitations with passwords and the like. If we limited
our invitations to a controlled list, then our reporting would lose accuracy due to sampling
bias, however:
Our university sponsors and relevant trade associations invite participation, working from
their private mailing lists. People share our invitations, ensuring a free flow of information
and a sample that fully represents the world of executive coaching. As always, almost half
our respondents come from outside our list of invitees. That ensures fresh and accurate
results, year after year.
71
Analytics
The Executive Coaching Survey has three ways of finding information that is
relevant to interested professionals.
We began in 2005 with questions of interest to coaches and their clients. Each year,
we tend to ask certain questions in exactly the same way, to identify trends. When
the answers stop changing, we go on to different questions, knowing our respondents
have identified the state of the art.
A few years back, we created a special web version of this report. Based on the
number of page visits to each topic, we know what interests you most, and we focus
on that.
We ask for comments on trends in coaching and the benefits of coaching, and give
people free reign to tell us what they think and share their observations. That ensures
we have new topics each year.
We have now reached critical mass in our research on corporate culture, with
questions exclusively for HR, training professionals and business leaders. This allows
us to report on topics of broader interest, with yearly information that will tell us
where corporate cultures are headed. The Corporate Culture Survey is now housed
at its own website: www.corporateculture.cc
Each year, we review the way our research is designed. Since 2005, we have solicited help
in survey design from university executive education programs. In addition, we rely on the
expertise of Shawn Herbig, President of IQS Research in Louisville, Kentucky, USA. Mr. Herbig
and his research team, who offer solid advice any time we consider additions or changes.
72
Global Reach, Global Results
Over the years, the Executive Coaching Survey has received responses from
over 65 counties, representing the vast majority of the world’s population.
73
Top Metro Areas
Whose views are reflected? It’s up to our respondents. Which cities and countries provide
enough response for detailed analysis and breakout reporting?
For 2017, here are the top 20 metro areas we heard from, in order of response rates. Some
of these are new to our top twenty. Four are from outside the USA, reflecting global
participation in this 12th year of research.
74
Publishers
Sherpa Coaching
75
Sponsors
Sherpa Coaching is based in Cincinnati, Ohio, USA. For managers and executives, Sherpa offers one-
on-one coaching. For leaderships groups and teams, Sherpa conducts programs based on their
university texts. For coaches, Sherpa offers training and certification on campus at major
universities. Custom programs are available on site or on campus.
76
Sponsors
The University of Georgia Center for Continuing
Education in Athens, Georgia, USA, provides programs
and services which connect the University with lifelong
learners throughout the world. The Center designs,
develops and delivers a variety of executive programs in a dynamic learning environment with a
luxury hotel, restaurants, meeting rooms and banquet facilities.
77
78
Sponsors
University of New Mexico
The University of New Mexico (UNM) is proud to announce the debut of the Sherpa Coaching
Certification in the fall of 2017.
The UNM Anderson School of Management’s Executive & Professional Education Center
houses two accelerated MBA programs, non-credit professional development programs, and
customized programming for businesses.
The Center connects exceptional students, renowned faculty, accomplished alumni, prominent
business partners, and dedicated staff to provide high-quality educational resources to New
Mexico's business community.
Custom Programs
Partner with Anderson to develop strategic solutions to your business challenges and achieve
organizational success with highly skilled employees who are focused on meeting your goals.
Drawing from Anderson School's prestigious faculty and the business community's premier
corporate coaches, our consultants get to know your organization, and then craft a relevant
and effective approach for improvement.
79
Sponsors
Howard University is in Washington, DC, USA. Its Business School
offers executive education alongside graduate programs in
entrepreneurship, finance, management, international business and
supply chain management. Howard University and the U.S. Small
Business Administration operate a Small Business Development resource center on campus.
80
Sponsors
This year we go back to basics. EXCO 2017 will focus exclusively on mastery of the Sherpa
process for executive coaching. Who should attend? Every certified Sherpa coach, and every
practitioner of the Sherpa process, should be there!
The primary speakers will be the founders of Sherpa Coaching. Brenda Corbett and Judith
Kinebrew are the world’s leading educators in the coaching industry. Karl Corbett leads the most
extensive market research in the history of coaching, 12 years running. The three of them, along
with several Master Sherpa coaches will ramp this conference up to a whole new level.
81
It’s the 12th annual event. New venue:
Fountain Square in Cincinnati.
Get new, exclusive Celebrate Executive Take action. Save the dates
information about Sherpa Coaching Week with our now, and register early.
technology, direct from the annual awards. Find out June 4, 5 and 6, 2017.
authors. who will win in 2017. Bring your team!
82