INTERNAL VS. EXTERNAL EXECUTIVE COACH: WHICH ONE IS BETTER?

The greater the difficulty, the more glory in surmounting it. Skillful pilots gain their reputation from storms and tempests.

– Epictetus, Greek philosopher

In the world of business coaching, there are two types of coaches: internal and external. An external coach is hired by HR or someone else in management to provide support for employees. This type of coaching can be seen as formal mentoring, or it can be part of a company program that hires an outside business coach for everyone in an organization. An internal coach is one who works only with employees and can be seen as a replacement for the supervisor, manager, or someone else that employee dealt with directly. This type of coaching relationship goes beyond mentoring and involves increasing individual performance through developing self-awareness, specific strategies, and skills to handle job and even career areas. 

The Similarities and Differences

  1. PURPOSE. Internal and external coaching are both focused on employee growth through increased capabilities, skills, and awareness (e.g., understanding how to develop a business strategy or create a marketing campaign). The core focus is the same whether the coach is internal staff or an outside consultant.

The main difference: HR may play a very small role in selecting an internal coach, but in the case of external coaches they are usually charged with conducting a search and hiring someone who fits the needs of the organization. External coaching relationships often involve HR for performance reviews and other related issues. 

External coaches can get to employees quicker since there is no need for formal screening or interviewing. However, internal coaches may be more knowledgeable of internal processes and culture.

  • PROCESS. Internal coaching is a direct relationship (one-to-one); external coaches are one person to many people, although in some cases they work with groups within an organization. There is no “coaching session” like there might be with other types of relationships – for example, therapist to patient.

The main difference: External coaches are more visible and frequently play a large role in quarterly or annual review processes. Internal coaches may interact less with management, since their goal is to work one on one with the employee directly providing him/her direct feedback on performance.  

  • ACCOUNTABILITY FOR RESULTS. Accountability varies depending on the type of coach. External coaches are accountable for goals, objectives, and other issues the organization has assigned them to address with employees. Internal coaches typically take on areas or topics they are best suited for (e.g., someone in marketing will coach employees in marketing). The employee’s supervisor is still responsible for performance management including setting goals and having regular performance discussions. The internal coach is responsible for coaching only, though some may assign additional work or help the employee create a plan for addressing goals and objectives.

The main difference: Internal coaches are not accountable for results; they’re responsible for helping employees develop skills, strategies, etc. to enable them to be more successful on their own.  

  • AUTHORITY. Internal coaches have no authority over others; they are responsible for mentoring and coaching individuals on a specific topic or issue under the direction of someone else (often their supervisor). External coaches may be given some flexibility in how they work with employees, but ultimately the employer has set goals and objectives for each employee.

The main difference: External coaches are “hired guns” to come in and help an organization achieve goals. Internal coaches may have some autonomy as far as topics they discuss, but ultimately their goal is to support employees as Individuals, not for what they contribute to the overall success of the organization.

  • DURATION. The duration of coaching relationships varies depending on the external organization. The range could be from six months to two years.

The main difference: Coaching relationships with internal staff last a lot longer than most external coaching programs, which generally have a set time frame (e.g., six months). Some internal coaches may work with the employee for several years, using different avenues and approaches as they adapt and evolve.

  • RESOURCES. The level of internal resources differs greatly, depending on the type of coaching program implemented by an organization. Some organizations have a fully-functioning staff dedicated to supporting coaches; others rely internally on one person who also has a full-time job in another area (e.g., marketing or operations).

The main difference: External coaches are usually brought in to fill a specific need for an organization, and their availability may be limited. Internal coaching staff have unlimited access to other internal resources as needed.

  • CONTEXT. The context of the coaching relationship can change depending on the type of coach – it will be different when dealing with an internal coach versus an external one.

The main difference: External coaches are brought in from outside the organization to help with specific goals or objectives. Internal coaches may be chosen based on experience and expertise, but there’s no guarantee they’ll be able to bring much value unless they can identify challenges and opportunities the employee is facing that other resources inside the organization can’t.

  • COLLABORATION. External coaches are often brought in from outside an organization to help employees work collaboratively with others; internal coaches aren’t necessarily tasked with this responsibility.

The main difference: External coaches typically expect employees to collaborate with team members, suppliers, etc., so they may step in to coach them on how to manage conflict or resolve differences of opinion. Internal coaches are more likely to be focused on coaching employees, not teams.

  • OBJECTIVES. The goals for external coaches tend to be very specific – they may have an overall objective, but each employee is given specific objectives and expected outcomes. For internal coaches, the goals are usually based on performance objectives, but may also include the overall development of an employee.

The main difference: External coaches typically have a specific skillset or experience they are expected to provide for the company and its employees; internal coaches need to uncover potential roadblocks, challenges, or opportunities that prevent an employee from achieving their goals.

  1. SKILLS. The skills needed for external coaches focus on the coach’s ability to clearly communicate goals and outcomes, hold employees accountable, and manage conflict. Internal coaching requires a different set of soft-skills – the ability to foster open communication between an employee and their manager, encourage self-exploration, develop trust.

The main difference: External coaches are generally brought in to provide specific skills and guidance; internal coaches are more likely to provide the support necessary for employees to succeed by themselves.

The Pros and Cons

Many executives struggle with finding the right executive coach to help them reach their high-level goals. In particular, deciding between internal and external coaching can be a trying task.

When you work for an organization, your company’s in-house coaches can guide you on your path to success. However, another option is hiring an external coach to help you reach your goals.

So, when it comes to working with an external coach versus an internal coach, which is better? Which should you choose? Here are the pros and cons of each:

Pros of working with an External Executive Coach

Executive coaching requires a very personal relationship between coach and client to make the most of the process. While you can work with your in-house coach every week, you’re not guaranteed to see him or her each time you have a specific question or challenge.

With an external executive coach, at least you’ll always have someone who is looking out for your best interests and helping you grow as both a leader and as an individual. A good external coach will take the time and effort to learn about you as a unique individual in order to provide more personalized coaching sessions.

Of course, each executive has different needs that cannot be met by one particular person. However, when working with an external coach, at least he or she makes it his or her priority to meet your needs.

Cons of working with an External Executive Coach

If you choose to work with an external executive coach, you need to weigh the pros and cons. An external coach may be better able to help you grow as a leader and individual because she can guide your career from afar. However, if this is your first time hiring an external coach, it could be hard to know if she can truly understand your needs.

An external coach may not have a rapport with you or the same level of trust as an internal one. When you work under someone in your organization and form a close relationship over time, that can be difficult to replace.

Pros of working with an Internal Executive Coach

If you work for an organization, your in-house executive coach is a great resource. Your company’s coaches can offer more personalized guidance than an external coach can because they know what type of work environment you’re used to and understand the industry that you are in and the challenges therein. This is especially useful if you’re a seasoned executive who knows the ins and outs of the corporate world.

In-house coaches also understand how your company works and may be able to offer more flexibility in meeting times, locations, and other options if you want to work with them remotely on occasion. While you can always do this with an external coach as well, it’s easier to do it with an internal coach.

Finally, if you’re not sure if a coach is the right fit for you or you’re still uncertain about how to go about the whole process, an in-house executive coach can set up a series of meetings to help guide your decision making.

Cons of working with an Internal Executive Coach

Similar to the pros of hiring an external coach, there are also some cons. For one thing, internal coaches don’t have as much leeway with their time as external coaches do. While they can still meet with you on demand regardless of their schedule or other company obligations, they may not be able to give you as much personalized attention because they are stretched thin with other coaching clients.

Additionally, since in-house coaches are often responsible for many things beyond just coaching—such as managing their department or mentoring others—they may not be able to give you the time you need even if they want to help. Consequently, this means that your sessions will have a limit and you may not be able to get the most out of it.

Concluding Paragraph:

If you’re thinking about utilizing an executive coach to help guide your career as a leader, it’s best to consider the pros and cons of working with both external coaches and internal coaches. Each option has its own unique strengths and weaknesses that can make it more or less appropriate for your needs, so make sure you understand what they are before committing to a decision. In either case, being a part of an executive coaching network can give you access to a great team of mentors who can help guide your career as well as life decisions. You just need to be selective about where you take your career from here!

If you’re still not sure who’s best for you, give us a call and we’ll help guide you in the right direction!