As coaching has become more recognized as a practice management and career fulfillment tool for financial advisors, the use of internal coaches seems to be a growing trend. In a recent survey by Ridler & Co., 79 percent of organizations expect to see an increase in the use of internal coaching over the next three years. [Note: this was a European-focused survey that included many diverse organizations and industries.]
For many successful financial advisors who work within firms that embrace coaching and have built coaching structures, internal coaches (Note: an internal coach is a coach employed by the coachee’s organization) are a viable choice. At the same time, external coaches offer multiple benefits in contrast to internal coaches, depending upon the circumstances of course.
Thus, it might be helpful to sketch out some of the generally accepted perceptions as to why a financial advisor might use internal, and external, coaches:
Internal Coaches: Benefits
External Coaches: Benefits
There is no “universally correct” choice for financial advisors who are choosing between an internal and external coach. And there are situations where the use of BOTH an internal and external coach is warranted. For example, a financial advisory team who has recently transitioned to a new firm and might want the organizational knowledge of an internal coach, as well as the broad, industry perspective of an external coach.
One of the principal reasons reported for the increase in internal coaching is that internal coaches understand the organization better than external coaches. This can be a double-edged sword, however. A corresponding challenge for internal coaches is that they are so embedded in their organization’s culture that it is difficult for them to guide the coachee towards a fully objective perspective.
There are many other perspectives on internal vs. external coaching. We offer the following ClientWise Learning Tool to encourage additional thinking: