Coaching vs. Managing: Why Great Leaders Must Master Both

The evolving role of leadership in today’s dynamic business environment requires leaders to understand the distinction between coaching vs. managing, as well as developing skills for both.

With shifting market trends, remote workforces, and evolving employee expectations, leaders must be more than decision-makers — they must also be developers of people, culture and growth.

“Coaching and managing are different tools that leaders must have to drive success in their organization,” says Christine Courtney, President of The Leadership Program in New York City. “There are equal benefits to managing, such as making sure we’re hitting KPIs, and coaching, as it allows leaders to develop their people in ways that pay off tremendously.”

Coaching vs. Managing: Key Differences

Coaching and managing are two complementary approaches to leadership. Effective leaders understand the differences and how to integrate both skill sets.

Definition of Coaching:

Coaching focuses on empowering individuals to realize their potential. Leaders who learn coaching skills guide employees in exploring personal growth, self-discovery and long-term development.

“Coaching is the teaching of timeless principles,” says Jason Lavin, Chief Executive Officer of Golden Communications in Newport Beach, California. “It’s not a finite teaching. It’s teaching things that are used infinitely. In my opinion, coaching is a higher calling because it means that you’re invested in the future of your people.”

Definition of Managing:

Managing is a structured approach to achieving goals and deliverables. The most effective managers guide their teams by ensuring alignment with key performance indicators (KPIs) and organizational objectives. Without strong management skills, even the most inspiring coaching efforts can fail to meet business requirements.

“A good manager has good discipline, good expectations, good communication and solid short-term KPIs and measurement sticks for the short term,” says Lavin.

While coaching and managing are complementary, certain situations lend themselves better to one approach over the other. These are a few examples:

A skilled leader manages an employee’s workload while coaching them to enhance their communication skills or resilience. Knowing when to switch hats is what makes a leader truly effective.

The Unique Benefits of Coaching

1. Building Employee Relationships

Coaching allows leaders to foster stronger employee relationships. When leaders ask thoughtful questions and listen deeply, employees feel valued and seen. Actively listening to an employee’s responses and having empathy builds trust within an organization—a critical foundation for high performance.

2. Fostering a Growth Mindset

Coaching reframes conversations with employees, encouraging them to define their approach and offer their perspective rather than seeking all the answers. One of the most significant differences in a coaching culture is that it creates an environment where curiosity, experimentation and learning are supported and encouraged.

When individuals feel safe asking questions like “What’s possible?” rather than falling back on “We’ve always done it this way,” the entire organization benefits. Because failures are learning opportunities, they give employees the courage to try something new.

3. Driving Employee Retention and Satisfaction

Coaching fosters open, judgment-free dialogue and creates psychological safety, encouraging people to share concerns, admit mistakes, and ask for help. Combined, these attributes reduce stress and burnout.

Employees are also less likely to feel micromanaged or ignored — two significant factors that directly relate to retention and engagement.

“We find over and over again that people don’t leave companies where their development is encouraged and where they see people moving up within their organization,” Courtney says. “If they have a strong relationship with their manager who can both manage and coach them, trust grows over time, and they’re more likely to stay.”

The Critical Role of Managing

A highly skilled manager is like the captain of a ship — they anticipate obstacles, allocate resources wisely, and make real-time decisions to keep everything on track by:

1. Providing Structure and Clarity

Without direction, even the most talented teams can drift, duplicate effort, or work at cross-purposes.Managing answers critical questions such as “What are we doing?” “Why does it matter?” and “Who’s responsible?”It also ensures that the right people are assigned to the right roles and that they have the necessary tools and support to succeed.

2. Ensuring Accountability

Managing is crucial to ensuring that employees and teams make progress by assessing outcomes and adjusting strategies as needed.

“When I’m having a team meeting, we’re talking about goals, looking at results, talking about team performance and all of those indicators,” Courtney says. “But in my one-to-one meetings, I’m 100% focused on coaching them and asking questions about their growth and helping people figure out solutions to their challenges and opportunities for development.”

3. Maintaining Alignment

Great ideas don’t succeed without execution — and that’s where solid management skills are necessary. Managers are responsible for ensuring that teams and departments work together toward shared goals and for ensuring consistency in policies, standards and systems that keep work flowing efficiently.

“In some way, you need to buy into a management system, which helps with alignment. There are many of them out there,” Lavin says. “If you’re not sure what your system is, you need one.”

Striking the Right Balance Between Coaching vs. Managing

Balancing coaching vs. managing is essential for effective leadership because each approach serves a different, yet equally critical, purpose. Together, they enable leaders to deliver results and develop people.

A leader who only manages is likely to burn out their employees. A leader who only coaches may miss deadlines. The best leaders do both. Clear direction keeps people focused; curious questions keep them engaged.

Practical Tips for Mastering Both:

Mastering any skill requires practice. One of the first steps to strengthening both is to refine your thinking, Lavin says. The second step is the hardest — coaching yourself to improve in both areas.

“For example, you can’t just think about being enthusiastic. You have to be enthusiastic,” he says. “That doesn’t mean you have to be an extrovert if you’re an introvert. An introvert can be just as or more enthusiastic as an extrovert; it’s just finding a way that shows your enthusiasm.”

• Recognizing when you need coaching vs. managing based on individual and team needs.
• Blending coaching conversations into routine management interactions.
• Adapting your approach to the situation: development-focused vs. goal-focused.

The Impact of Mastering Both Coaching and Managing

Being proficient in both coaching and management is not a trade-off. Mastering both leadership approaches is crucial to developing high-achieving teams and achieving long-term success.

The outcomes are revolutionary for teams, individuals and the business overall — when leaders find a balance between these two strategies, such as:

Creating Agile and Resilient Teams

Teams are better able to adjust to change and overcome obstacles when these leadership philosophies are balanced. When teams receive clear guidance and developmental assistance, they become independent and creative.

“One of the benefits for me of having a coaching culture is that other people can do the things I can, and I have more trust that they are going to be able to handle whatever comes up,” Courtney says. “You also have a sustainability plan, a leadership pipeline built in your organization when you have people coached and ready to step into a new role.”

Motivating and Inspiring Teams

Those who can artfully blend coaching and managing skills drive team engagement and innovation. Leaders who can transition between both create environments where people feel challenged and supported. This balance encourages individuals to take ownership, think creatively and bring their best ideas forward so the organization meets and exceeds expectations.

Enhancing Leadership Effectiveness

When leaders can coach and manage, their teams are better equipped to align strategic goals and develop a more creative, resilient staff that contributes to improved retention and stronger team performance.

For Leaders Considering an Encore Career in Executive Coaching

Developing coaching skills allows an organization to thrive even in the most challenging times. When people feel valued and seen, and that their ideas contribute to something larger than their role, they are more likely to remain in their jobs and drive innovation.

Leaders who can nurture a coaching environment like the one described above have the opportunity to transition into a rewarding career as an executive coach — expanding their impact on even more people.

“What’s more rewarding than helping people?” Lavin asks. “Is there anything more rewarding? It starts there.”

Coaches who also have strong management experience bring a deep understanding of how organizations run: they know how to set goals, allocate resources, meet deadlines, and drive performance. These are critical, foundational skills that keep teams aligned and productive.

When this experience is paired with a coaching mindset, something powerful happens. Instead of simply directing others, these leaders invite input, listen deeply, and ask thoughtful questions that encourage reflection and ownership. They shift from being problem solvers to becoming thinking partners, empowering others to grow, take initiative, and build their capacity.

Numerous resources and programs, including Vistage’s executive coaching and peer advisory groups, are available for leaders interested in pursuing executive coaching as a next step.

“What’s neat about a coach is that they don’t have to come out with all the answers,” Lavin says. “Vistage has a good process that enables Chairs to help their members process issues.”

The Next Step Forward

As a CEO, you have the power to intentionally shape your organization’s culture by deliberately balancing coaching and managing. The question isn’t whether you’ll have a culture — you will. The question is whether it will drive performance, retention, and sustainable growth.

“Most CEOs, if they’re doing a good job, know their job boils down to culture,” says Lavin. “If you want great culture, you’ll need coaching. Company culture is going to happen no matter what, right? It’s impossible to have an organization without culture. So the culture is coming. It’s your choice whether you want to shape it.”

Vistage is a trusted partner in helping CEOs and business leaders elevate their leadership and management skills through executive coaching and peer advisory. Learn more about how Vistage helps leaders drive organizational growth and deliver better outcomes for their companies, families and communities.

Related Resources

• 8 Qualities that Make the Best Executive Coaches
• Setting Effective Executive Coaching Goals: A Pathway to Leadership Excellence

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