Business coaching vs business consulting

This growing trend is unstoppable, which makes it necessary to distinguish between the two.

Is business consulting the same as business coaching?

Business consulting and business coaching can be seen as being the same, mainly because of why they are hired. Common reasons for hiring them are to grow profits, set new directions, explore new markets or even prevent a slide in the business. The approaches they use, however, differ greatly. While business consultants focus more on the critical extrinsic factors to make the client’s business work better, business coaches focus on both extrinsic and intrinsic factors to get better results.

What are the extrinsic and intrinsic factors of a business?

In the coaching context, extrinsic factors are the external aspects of the business. Some examples are: the nature and seriousness of competition, competitive edge, product types and quality, branding, marketing cash flow, systems, technology and manpower structure. Intrinsic factors include the emotional state, drive, true passion, core values, stress level, quality of relationships and life balance.

Which is more important to the success of the business, extrinsic or intrinsic?

Both are equally important. One cannot do without the other. For instance, business planning and its execution will not lead to good results if the person who is responsible for this does not have a good state of mind. The best plan in the world will still fail. Likewise, the most highly motivated person will still fail if he or she does not have a good working knowledge on how to manage a business.

This explains why some businesses still do not succeed despite millions of baht being dumped in to hire the best professionals to help them. Metaphorically, these professionals have helped them enhance the "form" aspects, but have done little or nothing on the "substance" aspects of the business and the leaders who are driving it.

So does that mean a business leader will have to hire two professionals for the same job?

No, you still hire one. A prudent client will study the background, experience and exposure of the helping professional to ensure he or she has both these skills and strongly believes that helping the business (and the clients) holistically is crucial for success both in the short and longer term.

Usually, business consultants are very strong in helping their clients in the extrinsic aspects of the business because many of them come from reputable business schools. Their years of experience as business managers also strengthen their offerings in this area. In the same light, many business coaches are also strong in the intrinsic aspects of the "people part" of the business as they usually have a good grounding in psychology and would probably have done quite a bit of work helping individuals to "repair" their lives.

Then who really has both of these skill sets?

A true and well-trained business coach will have both. "True" here means that these people have strong people skills; they connect well, they believe in the importance of relationship, they have strong empathy skills, and can read situations deeply to understand underlying issues and roadblocks, etc.

"Well-trained" here means that they have successfully undergone well-established business-coaching programmes where they are taught both the extrinsic and the intrinsic aspects of coaching.

Is there anything else that makes them differ?

Yes, it is in the approach they use. While it cannot be denied, many of the resources and tools used by consultants are used by business coaches as well, but the latter do not do it "freely" until they have discerned the issue and the situation well. To them, not all sizes fit all.

For instance, they may not use, or at least will delay the use of, business planning resources until other parts of the client’s personal and/or professional life are addressed. In other words, a business coach goes into a relationship on a "clean slate". They will not prescribe, but will go through a thorough discovery to gain deep insights before both agree on what to do to move forward.

One other place where they defer is that the business coach does not give "free handouts", because their clients are taught "how to fish" rather than being "given the fish". This really helps them to learn and acquire strong ownership for sustainable results to take place.

What advice do you have for potential clients?

Seek holistic solutions for your business. Things in life are seldom straightforward. We need to get to the bottom of things. So get someone who is equally strong in the "form" and the "substance" aspects of your business management.

Corporate Coach Academy is a coaching school in Asia to certify leaders of all backgrounds to become manager-coaches or professional certified coaches in this region. Log in www.corporate-coachacademy.com or [email protected] for details.