What are the differences between Business Coaching and Executive Coaching?

As businesses of all kinds seek to improve performance and maximize profits, they are turning to coaches. There are numerous types of coaches working to help people improve their lives and careers, including business coaches, executive coaches, personal coaches, team coaches, life coaches, weight loss coaches, and many others. The number available can make it confusing to determine who will offer the most assistance.

After considering the many coaching professionals available, an organization may have decided it needs either a business coach or an executive coach. But which one? Very simply put, a business coach concentrates on a business, while an executive coach concentrates on an individual in business.

What does a business coach do?

A business coach helps improve an organization’s performance by eliminating inefficiencies, optimizing routine processes, and working with executives to help them see their organization from a new vantage point. A business coach may engage in some slight work to help an individual develop their skill set, but the coach is more strongly focused on the business, the way it is run, and what can be done to improve its operations. The ultimate aim of a business coach is to devise an action plan to help the organization achieve sustainable growth by improving the processes it uses.

To succeed in this mission, a business coach needs to understand the entire business, not just the leader. Also, in addition to coming up with a plan that helps the organization thrive, the plan must incorporate concrete steps that lead to a measurable outcome. Goal setting is useless if there is no way to measure whether, and to what extent, a goal has been met.

In sum, a business coach must know how to create a business plan, understand financial statements, and have experience as a business owner/operator. This type of coaching is better suited to small companies, and even neighborhood “mom and pop stores.”

What does an executive coach do?

As noted, an executive coach, for lack of a fancier explanation, coaches executives. This is a far more personal undertaking than the work done by a business coach. The relationship between an executive and their coach is intense, highly personal, and mostly one-on-one. The coach will need to understand the concepts and ideas that drive their executive, such as whether the executive is fulfilled in their position, and if their business is a life-long dream. An executive who has built their business by themselves, in fulfillment of their vision, may be reluctant to give up any control. Someone who must remain in charge of every aspect of their company and does not or cannot learn to delegate responsibility can eventually become problematic.

The executive coach works with the person who makes the decisions, helping them become more capable, so that the decisions they make will be the right ones for the organization. The executive coach is narrowly focused, and their work involves a long-term commitment between the executive and the coach.

An executive coach has several objectives. These include providing organizational leaders with the tools they need to attain their goals, both in business and in their personal lives, identifying the gaps in an individual’s skill, and helping to eliminate or mitigate them. They also work with the executive to help him or her strengthen the leadership skills they do have, with an overall objective of enabling the executive to rise to the highest level of their ability, both professional and personal.

Since this type of coaching can have such far-reaching effects, improving the operation of an entire organization, it is better suited to larger companies than to small businesses. In addition, an executive coach can be effective in working with leaders at lower levels than the executive suite, such as department managers. They too can profit from learning to make better decisions, which will benefit their departments, and in turn, the entire company.

So, which one is best?

The choice of coach is up to the business. A small company just launching, or operating with only a few employees, will probably be best working with a business coach who can help them make a sound plan to increase their business. When the company is larger, it is possible the leadership may find themselves needing assistance to make decisions and regain their enthusiasm and drive. At that point, an executive coach may be the answer.

When you are considering a coach, speak to Jim Crisafulli at Crisafulli Business Coaching. Mr. Crisafulli has been a business coach for more than 27 years, and owned a small business for over 40 years – qualities that make him an outstanding coach and mentor. As a business coach, he works with smaller organizations, usually with five to 50 employees, and with a turnover of between $1 Million and $15 Million.

If you’re thinking about a coach, contact Jim Crisafulli today. He will do more than help you grow the business; he will help you increase its value.