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Writer's pictureLucia Levato

Creating Effective Business Coaching Agreements

Updated: Dec 20, 2024

According to the International Coaching Federation (ICF), the “Client” refers to the individual or team/group receiving coaching. When another entity arranges, defines, or funds the coaching services, that entity is referred to as the “Sponsor.”


In a corporate coaching program, how can the involved parties establish a shared commitment—the “WE”—to achieve meaningful outcomes for everyone?




Effective Business Coaching Agreements

Challenges often arise, such as coachees perceiving coaching as an obligation or HR departments and managers seeking to measure the coaching’s return on investment (ROI), sometimes unrealistically. A formalized “business coaching agreement”—also referred to as an “official contract”—addresses these challenges by ensuring clarity, alignment, and accountability among all stakeholders.

This agreement establishes the foundation for:

  • Managing expectations: Ensuring all parties understand their roles and the coaching objectives.

  • Commercial clarity: Guaranteeing the coach’s compensation and the organization’s investment in terms of resources and time.

  • Coachee awareness: Highlighting the organization’s investment in the coachee’s development.

For confidentiality reasons, the contract should outline:

  • The context and objectives of the coaching engagement.

  • The coaching terms, including hourly rates and session logistics.

  • The roles and responsibilities of the coach, client, and sponsor.

However, the agreement should avoid detailing personal factors related to the coachee. Instead, it should focus on professional objectives and outcomes.

An essential component of the agreement is the inclusion of the coach’s ethical guidelines, particularly regarding confidentiality. A robust confidentiality clause ensures:

  • Protection of personal and sensitive information.

  • A clear understanding of how information will be shared among the coach, client, and sponsor.

By establishing a clear and comprehensive agreement, organizations can foster trust and collaboration, while ensuring coaching engagements are effective, ethical, and aligned with corporate goals.


Translated from my professional coach certification dissertation (December 2018) and rearranged with the help of ChatGPT

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