Why coaching-style leadership is the missing link in high performance

Over the years, I’ve had the privilege of working with countless organisations striving to improve leadership capability. So, when Culture Amp released its 2025 report, The Leadership Advantage, I was curious to see how its findings aligned with what I’ve observed in practice. The report is rich with insight - highlighting the profound impact leaders have on engagement, performance and retention. But as I read through it, one thought kept returning: where is the conversation about coaching?

Trusted leaders are making a difference - but is it enough?

Culture Amp’s research identifies six leadership profiles, with the “trusted leader” emerging as both the most common and the most effective. These leaders communicate clearly, show that people matter and inspire confidence. Unsurprisingly, employees reporting to trusted leaders are significantly more likely to stay and perform well.

But even among these high performers, there’s a challenge. The report reveals a “leadership sentiment gap” - a disconnect between how leaders perceive the workplace and how their teams experience it. Senior leaders often report a far more positive view than those on the ground. This gap, if left unaddressed, can quietly erode trust and engagement.

Coaching: the bridge between leadership and lived experience

In my work, I’ve seen how coaching-style leadership can close this gap. Coaching isn’t about having all the answers - it’s about creating space for others to think, grow and contribute. It’s a mindset that values curiosity over control, and development over direction.

Interestingly, many of the behaviours Culture Amp associates with high-performing leaders - frequent feedback, aligned goals, regular 1-on-1s - are core to a coaching approach. Yet the report doesn’t explicitly name coaching as a leadership style. That feels like a missed opportunity.

Coaching leaders create sustainable impact

One of the most powerful aspects of coaching-style leadership is its sustainability. Culture Amp notes that great leaders are under pressure to “do more with less.” Coaching offers a way to meet that challenge - not by working harder, but by working smarter.

When leaders coach, they enable their teams to take ownership. They build capability, not dependency. And they foster cultures where people feel seen, heard and valued. This isn’t just good for morale - it’s good for business. As highlighted in the report, McKinsey estimates that highly engaged employees can save a mid-sized company over $1.1 billion across five years. Coaching leaders are uniquely positioned to drive that kind of engagement.

From good to great: embedding coaching into leadership development

If we want to move from good leadership to great, we need to be intentional about how we develop our leaders. That means going beyond competencies and KPIs and investing in mindset and behaviour.

Coaching should be a core part of leadership development - not an optional extra. Whether through formal training, peer coaching, or reflective practice, leaders need opportunities to build their coaching capability. And they need support to embed it into their day-to-day work.

At the AoEC, we’ve seen how even modest investments in coaching skills can transform how leaders show up. It’s not about turning every manager into a professional coach. It’s about equipping them with the tools to lead with empathy, clarity and purpose.

A call to action for organisations

Culture Amp’s report ends with a clear message: leadership matters. It’s the multiplier that drives performance, engagement and retention. But if we’re serious about unlocking that potential, we need to broaden the conversation.

Let’s recognise coaching not just as a development tool, but as a leadership style. Let’s support our leaders to listen more, ask better questions and create space for others to thrive. And let’s build organisations where leadership isn’t just about direction - it’s about connection.

Because in a world of complexity and change, the leaders who coach will be the ones who truly make a difference.