Leadership development has long been a top priority for organizations, with 61% of organizations prioritizing investment in the area in 2024 according to Forrester Research, surpassing all other talent development initiatives. Yet, despite these significant investments, research reveals persistent challenges. Gallup reports that 70% of U.S. employees remain disengaged at work, citing poor management as a leading cause of disengagement. Additionally, findings from the Corporate Executive Board indicate that nearly 60% of new managers fail within their first 24 months.

This indicates that current leadership training programs are falling short of adequately preparing managers for their roles. One major reason is the tendency of these programs to cover too broad an array of competencies. This broad scope dilutes focus and can result in leadership training that lacks sufficient depth of development in key competencies, leaving managers insufficiently prepared for the challenge of managing others. Effective leadership training and development should narrow its focus to a few critical competencies aligned with the organization’s strategic priorities. This targeted approach ensures deeper learning, enhanced mastery and a level of performance improvement that drives organizational success.

One competency that should be at the center of all leadership development programs is developing a manager’s ability to coach. Managerial coaching is directly tied to employee learning and development (L&D) as well as organizational commitment. When a manager invests time and energy in coaching an employee, the employee will learn more and improve their skills.

Meanwhile, when employees perceive that they receive support from their managers in their development, they are more likely to be engaged with the organization. One empirical study, “Impact of Managerial Coaching Skills on Employee Commitment: The Role of Personal Learning,” found that 46% of the variance in employees’ L&D and 36% of the variance in organizational commitment are directly explained by managers’ managerial coaching skills.

Given the importance of managerial coaching, how should organizations build capability in managerial coaching amongst their leaders?

There are five competency areas that managers should be trained in to enhance their coaching capability:

Communicating Openly

Open communication is foundational for building strong, resilient teams that can adapt, innovate, and thrive under effective leadership. When leaders maintain open lines of communication, employees feel valued and heard, leading to higher morale and engagement.

Example behaviors to emphasize in training:

• Actively solicit direct reports’ opinions, ideas and concerns. The simple act of asking team members a question values them and their answers.
• Explain the reasons behind decisions and be honest about challenges or setbacks.
• Show understanding and consideration for employees’ feelings and perspectives.

Fostering a Team Approach

A team-oriented approach aligns employees with common goals, supports a culture of trust and inclusivity, and helps organizations achieve sustainable success.

Example behaviors to emphasize in training:

• Involve team members in goal-setting, problem-solving and decision-making.
• Define common objectives that everyone on the team works toward.
• Celebrate milestones to build team morale and a sense of shared purpose.

Valuing the Employee

Recognition and validation result in team members who feel fulfilled and satisfied with their jobs, which translates to improved morale and performance.

Example behaviors to emphasize in training:

• Give specific praise for accomplishments, skills or behaviors that contribute to the team’s success.
• Ensure that the employee is treated fairly in terms of workload and opportunities.

Acknowledge not only work accomplishments but also important life events.

Encouraging Expansive Thinking

Encouraging expansive thinking equips leaders and their teams to innovate, remain agile, and approach complex business challenges with a proactive and open-minded mindset, which is crucial for sustained success and growth.

Example behaviors to emphasize in training:

• View differences of opinion as constructive. Create a space where all ideas are welcomed, and employees feel comfortable sharing unconventional thoughts without fear of criticism or premature dismissal.
• Encourage employees to think beyond current constraints by asking questions that stimulate creative problem-solving. Support taking calculated risks and trying new approaches, even if they might fail.

Facilitating Development

By prioritizing continuous learning, leaders create a culture that encourages personal and professional growth — which is directly linked to employee performance and job satisfaction. Leaders often have an incomplete idea of what hidden talent is available to them until they start coaching. Coaching for development helps them tap into the full strengths and qualities of their people.

Example behaviors to emphasize in training:

• Provide opportunities for employees to take on more responsibility.
• Give regular, specific feedback.
• Offer stretch assignments that challenge employees to develop new skills.
• Ensure employees have access to the materials, tools and technology needed for L&D.

Leadership Training Program Essentials

When designing a curriculum to enhance the coaching capabilities outlined above, a few essential elements should be integrated into any manager development program.

Conducing both a pre- and post-training assessment is critical to gauge the baseline of a manager’s skills and measure their development upon completion of the program. Beyond having managers complete a self-assessment before the training begins, it is also ideal to have each direct report complete an assessment of the manager’s coaching capability. Managers and direct reports should then be given the same survey to complete six months post completion of the coaching development program to assess effectiveness.

In addition to providing formal training across the five coaching dimensions, consider providing managers with opportunities for role-playing various scenarios that challenge them to apply what they’ve learned in a risk-free context.

Finally, a nudging or reinforcement component is essential for ongoing reinforcement. Managers forget 80% of what they learn in formal development programs, so reinforcement is necessary to ensure lasting behavioral change. This highlights the need for continuous learning and support, rather than one-off formal training sessions.

In Conclusion

Developing managers — especially front-line and first-time managers — into effective coaches is essential for organizational success. Incorporating a few key elements into any manager coaching program significantly increases its likelihood of success.

Ultimately, strengthening managers’ coaching capabilities not only enhances employee learning and organizational commitment but also drives measurable bottom-line benefits for the business.