While executive coaching and business coaching share the common goal of enhancing organizational performance, their focus and methods differ significantly. Executive coaching zeroes in on the individual leader, enhancing decision-making, emotional intelligence, and personal development. In contrast, business coaching addresses the business itself, its systems, processes, and overall strategy.

Executive coaching focuses on the decision-maker. 

At first glance, the two may seem interchangeable. Both support leaders and aim to drive measurable business outcomes. 

Choosing the wrong one could mean solving the wrong problem. In this post, I’ll break down the key differences between executive coaching and business coaching, and help you determine which one your organization needs most right now.

What is Executive Coaching?

 

Executive coaching is a targeted, long-term intervention focused on developing the decision-maker into a more capable and strategic leader whose growth directly impacts organizational performance. It is typically delivered through a one-on-one professional relationship between coach and executive. 

As shown in a foundational study by McGovern et al. in 2001, executive coaching has been proven to significantly improve leadership effectiveness and organizational outcomes across a wide range of industries and executive levels

This approach centers on developing essential leadership skills, enhancing strategic thinking, and fostering self-awareness.

 

A Dual Focus: Developing Inner and Outer Core Strength

Executive coaching, tailored to C-suite leaders and senior executives, delves into personal and professional development to strengthen leadership potential. It develops the inner core, the leader’s values, beliefs, and emotional intelligence, while strengthening the outer core, which includes strategic thinking, decision-making, and interpersonal competencies.

This dual focus ensures transformational growth that impacts both personal and professional dimensions.

Through an executive coaching program such as the Intelligent Leadership Executive Coaching program®, leaders gain the tools to make informed, critical decisions that positively impact the organization’s success.

 

Goals of Executive Coaching

The objectives of executive coaching are the following:

• Maximizing the individual performance of the coached leader in personal and professional terms
• Strengthening leadership competencies and execution skills.
• Identifying skill gaps and minimizing/eliminating them
• Giving leaders the practical tools to achieve their organizational objectives and personal goals

Executive coaching is individual-focused.

Because its top priority is to improve the quality of leadership, and through it, the results of the organization, it is more suitable for larger companies than mom-and-pop businesses.

Executive coaching can benefit not only the top leadership brass. Lower-level leaders, such as departmental managers, can also maximize their performance through it.

An executive coach builds long-term, professional relationships emphasizing emotional intelligence, strategic thinking, and informed decision-making. Such development is critical for succession planning and maintaining high leadership standards.

With executive leadership coaching, leaders gain new skills that bolster their professional journey and support overall well-being and sustainable growth within the organization.

 

Strategic Impact and Long-Term Benefits

Executive coaching enhances emotional intelligence and strategic thinking in leaders, capabilities that are critical for navigating uncertainty and mitigating leadership risk. 

A study by Kombarakaran et al. published in Consulting Psychology Journal: Practice and Research, found that executive coaching significantly improves leaders’ self-awareness, emotional regulation, and ability to lead strategically, thereby helping organizations close leadership gaps and prepare for future challenges.

 

Benefits for Leaders and Organizations

Engaging with an executive coach can offer significant advantages that elevate leaders and their organizations. Here are the key benefits:

• Personalized Leadership Development: Tailored coaching helps business leaders strengthen decision-making and strategic thinking.
• Unbiased Feedback: Executive coaches provide objective insights that refine leadership styles and address skill gaps.
• Acquisition of New Skills: Leaders gain emotional intelligence, communication, and problem-solving competencies.
• Enhanced Organizational Impact: Coaching empowers leaders to influence team performance positively and align with company goals.
• Culture of Growth: Leadership development fosters a continuous improvement environment, contributing to long-term success and competitive advantage.

These benefits ensure leaders maximize performance and drive their teams and organizations toward sustainable long-term growth. Regular 360-degree feedback and tools like the Mattone Leadership Enneagram Inventory (MLEI) provide measurable insights into leadership growth.

These metrics help leaders align their personal development with organizational goals, ensuring measurable and sustained impact.

 

The Executive Coaching Program Structure

John Mattone’s coaching programs, as one of the premier leadership coaching frameworks, are strategically designed to develop leadership skills and foster impactful growth for business leaders. The structure follows these key phases:

Awareness Phase

• Executive coaches discuss with the leader, senior leadership, and key stakeholders to set specific coaching goals.
• This personalized phase ensures that leadership development aligns with the organization’s strategic vision.

Analysis Phase:

• It incorporates comprehensive assessments, such as 360-degree feedback, and John Mattone’s proprietary tools, such as the Mattone Leadership Enneagram Inventory (MLEI®) or Strategic-Tactical Leadership Index-360 (STLI-360®).
• These assessments help executive coaches identify strengths and address areas for improvement, creating a targeted development approach.

Action Phase:

• The executive coach and the leader collaborate to create and implement a tailored Individual Development Plan (IDP).
• Focuses on enhancing leadership skills, strategic thinking, and applying new behaviors for impactful results.

Achievement Phase

• Solidifies the progress made through regular LeaderWatch surveys and continuous feedback.
• Encourages sustained leadership growth and ensures long-term success for the leader and the organization.

This comprehensive program supports business leaders and senior executives, laying the groundwork for sustainable leadership development and lasting professional growth.

 

What is Business Coaching? 

Business coaching aims to improve the performance of an organization focusing on optimizing processes, eliminating inefficiencies, and helping leaders reassess the position of their business from a fresh perspective.

The scope of business coaching also includes individual talent development.

Although individual leadership development can also be part of a business coaching program, the top priority of business coaching is to create an action plan that improves processes and supports sustainable growth.

Business coaching often incorporates concrete, practical, and measurable steps that accomplish clear objectives. A business coach has to understand the business in its entirety, not just the individual leader.

Business coaching focuses on concrete plans and solutions. 

 

Aligning Strategy with Leadership for Sustainable Growth

While business coaching focuses on systems and strategy, it also integrates leadership skill-building to empower teams and align operations with broader business goals. Business owners and corporate leaders benefit from strategic planning support and leadership development tools tailored to their organization’s needs.

By implementing proven growth tactics, business coaches help leaders generate measurable outcomes that enhance market position and operational efficiency.

Prerequisites for a Successful Business Coach

In addition to delivering actionable business advice, a business coach also has to:

• Have experience in running a business
• Understand and be capable of reading financial statements
• Have experience in creating and implementing strategic business plans

We could define a business coach as a combination of executive coach and business consultant.

This includes fostering self-awareness in leaders, enabling them to assess their impact on their teams and make informed adjustments for leadership success, and providing them with specialized business knowledge.

Effective business coaches must demonstrate strong communication and interpersonal skills, which are essential for building trust and supporting executives through complex decision-making processes. 

Research by Ely et al. published in Human Resource Development Quarterly, highlights that the quality of the coach–coachee relationship, driven by trust, communication, and mutual respect, is one of the most significant predictors of coaching success. 

Beyond tactical expertise, a skilled business coach helps clients align business strategies with personal growth goals, ensuring a balance that supports long-term success.

This holistic approach, similar to elements in executive coaching services, allows business owners to navigate complex challenges better.

Key Differences between Executive Coaching and Business Coaching

Although they both aim to improve organizational performance and business results, the two types of coaching achieve their objectives through different paths.

• Executive coaching focuses on unlocking individual potential to enhance leadership decision-making and influence. Business coaching emphasizes optimizing processes and creating actionable strategies to meet business objectives. It also improves processes and offers solutions to current problems, while executive coaching helps decision-makers improve processes and solve problems.
• Business coaching is better suited for small businesses, while executive coaching is a better fit for larger organizations. Business coaching offers actionable solutions that small business owners can readily implement, while executive coaching goes to the source of decisions and business plans.
• Executive coaching entails a one-on-one professional relationship. Business coaches work with the owner, CEO, president, and other senior leadership figures to identify problems and produce actionable solutions.
• A business coach should have direct experience running a business. An executive coach doesn’t need such experience. Executive coaches offer solutions and advice on a personal level rather than on the level of the organization.
• Executive coaching improves business outcomes through the maximization of individual performance. Business coaching creates an optimal framework for individual performance to shine.

Impact on Leaders and Organizations

Executive coaching often helps leaders achieve better results by developing self-awareness and tailored growth plans aligning with their professional and personal lives.

This alignment leads to improved decision-making and sustained leadership success.

On the other hand, business coaching sharpens leader’s business know-how, ensuring they implement changes that drive enhanced business performance.

Both coaching types are crucial, yet their unique focal points enable organizations to choose the path that best suits their growth ambitions.

Does your Organization Need Executive Coaching or Business Coaching?

For optimal results, both may be needed. While business coaching addresses immediate challenges, executive coaching builds long-term legacy by fostering leaders who inspire, influence, and sustain organizational growth over time.

If your organization is small and looking to grow and scale to a higher level, a business coach is probably what you need.

Executive coaching offers a more compelling solution for leading a large organization. It reaches deeper to trigger continued growth and development in leadership personnel.

Business coaching provides concrete plans and solutions, while executive coaching provides the tools to devise them.

I invite you to read my books or contact us directly if you are a business owner or an executive interested in leadership development.

 

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