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Internal vs. External Executive Coach
          - Which is Right for You?

The latest trend in large corporations is hiring coaches into the HR Department as employees.  It can work for the corporation - but is it the best answer for you?

Corporations are always looking for ways to grow their business and control their costs - and coaching is becoming known as a way of increasing the quality and quantity of output while increasing efficiency of the entire organization.  Consequently, corporations are looking to lower the cost of coaching so they can use it more widely among their staff.  One way the are approaching this is to hire coaches as employees.  Will you and your corporation get the best results by taking this approach?  What pros and cons are there to using internal or external coaches?  Let's look at it from the perspective of both the person undergoing coaching and the corporation funding the coaching. 

Business Knowledge

Let's face it, no one knows your business like one of your fellow employees.  If the corporate vision has been clearly communicated, then the internal coach-employee will know it.  Also, the internal coach will know your corporate culture and goals and is more likely to be familiar with the personalities with whom you interact.

The external coach, on the other hand, is more likely to have worked with individuals in companies that are similar to yours in terms of industry, stage of growth and organizational structure and culture.  She may even have worked in a company similar to yours before becoming an external coach, thus being familiar with both sides of the table (coach and employee).  Consequently, the external coach is more likely to be well positioned to help introduce new thoughts into the company.

Sometimes, the external coach is perceived as not understanding your business or industry.  This can actually be an advantage, as your external coach will bring forth questions that will not be constrained by knowledge of the "customary" way of doing business, thus potentially opening paths to substantial growth.

Objectivity

Your internal coach's familiarity with office politics and personalities may be an advantage in helping you learn what you contribute to the success and emotional climate of the organization.  

Because your external coach is not part of the company, there is less likelihood that she will be wearing the same organizational blinders that inhibit the success of your company (see Why Hire a Coach?).  Consequently, your external coach is more likely to identify ways that your corporate culture and beliefs affect your success.

Confidentiality

The coaching relationship is a sacred trust.  Unfortunately, you may be one of the many people who do not trust their Human Resources Department.  Additionally, you may also feel that going to an internal coach is like divulging sensitive information to someone living in your neighborhood.  Even if your neighbor keeps your trust, you may have feelings about what you have shared and feel inhibited every time you encounter him.  As a consequence, many individuals simply will not open up very deeply to an internal coach.  If that is what you experience, then you need an external coach for the coaching to go beyond being superficial and to provide you with the benefits you should receive.

Independent Sounding Board

Often, people look to their coach to be an independent sounding board for their ideas.  With an external coach, you know you've got someone who has no agenda for you, other than for you to be or do what you choose.  This can be a difficult point for many internal coaches, because the corporation has expectations of them.  They are part of the system and that makes total independence more difficult to achieve. 

Cost

Cost is a big motivator for companies to hire internal coaches.  Your internal coach is there all the time and can work with many employees.  Alternatively, your internal coach may have other part-time responsibilities, typically within Human Resources.  As a coaching client, you may or may not see that as an advantage, as it may mean that in her second position, your coach is involved in matters that may concern you.

Availability

Some executives and managers like having an internal coach around because the coach can be called anytime - and is expected to interrupt whatever she is doing, as long as she is not in a client conference.  Your external coach is much more likely to depend more on scheduled meetings, although he probably tries to be as accessible as possible during normal working hours for quick calls or e-mails.

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The materials presented in this site are the opinions of the authors and do not fully cover any aspect of coaching.  These materials are presented to help you understand the basic nature of coaching. Should you hire a coach, your experience is likely to differ in at least some respects from what is presented here.

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