
Top Performance Management Tools in 2025
Discover the value of performance management tools in the modern business environment and explore top-performing software programs and their features.
A promotion is one way to recognize positive performance in the workplace. An individual contributor shows reliability and strong results, and the company rewards them for it.
But stepping into a managerial role for the first time is an entirely different process, accompanied by distinct expectations.
Success is no longer personal but shared, impact is delivered and measured through others, and decisions carry much greater consequences. Culture, team morale, engagement, and performance begin to sit within the new manager’s span of control. Therefore, the promotion is not so much a “reward” as it is a reinvention of skills.
Without guidance, many high-performing professionals find themselves unprepared for the fundamentally different demands of leading others. Management coaching reduces this learning curve by offering a focused, personalized approach to developing the skills and mindset that newly promoted managers need to succeed.
Management coaching develops the skills required for a supervisory position, including delegation, communication and feedback, strategic decision-making, and conflict management.
A coach works with the individual to identify growth areas and challenges, then teaches them skills through guidance rather than prescribing solutions.
This relationship is built on active listening and guided reflection. It usually unfolds over months, with regular sessions focused on real workplace situations, allowing individuals to apply what they learn and refine their managerial approach.
Up to 60% of new managers will fail within 24 months of taking on the role.
First-time managers often struggle to shift their identity from being a high performer who does the work themselves to someone who delivers results through others.
Many also fail because they either misunderstand what their new role requires or lack the flexibility to adapt.
This high failure rate coincides with a lack of training.
Research shows that among those who oversee one to two employees, 59% report having no training at all, while this figure reaches 41% among those who oversee three to five workers.
Meanwhile, 42% of new managers develop their leadership style by observing previous managers instead of through formalized training.
Another 44% feel overwhelmed at work.
Bad management doesn’t exist in isolation, and usually creates a ripple effect throughout the organization, affecting everything from culture and morale to engagement.
Preventing this requires targeted learning opportunities, and coaching is an effective way to provide the personalized support these managers need during a vulnerable transition period.
When a new manager fails, companies lose the investment made in promoting them. Teams suffer from inconsistent leadership, engagement drops, and turnover increases often because employees quit managers, not companies.
A SHRM article exploring this found that, because of poorly prepared first-time managers:
The article cites a “sink or swim” philosophy as the culprit, in which companies provide little to no leadership training when they promote individuals to manager.
Eventually, these challenges add up, and so, too, do the expenses.
According to Gallup’s report Re-Engineering Performance Management, the cost of poor management and lost productivity from disengaged employees in the U.S. ranges from $960 billion to $1.2 trillion per year.
Coaching for managers addresses these risks by providing the support they need as they navigate the transition from leading themselves to leading others.
Coaching is not an abstract leadership theory, but a situational approach grounded in practice. The focus of a management coach is to help newly promoted managers develop and apply specific, practical skills for open conversations, strategic decisions, and better performance.
One of the most challenging skills to learn is “unlearning” the habits new managers carry from their previous roles.
Many often struggle to let go of the work they used to do themselves. Therefore, delegation can feel like a loss of control. They may believe they can do tasks faster or better, or feel uncomfortable assigning them to former peers.
Coaching and leadership development reframes work delegation as a leadership discipline. It helps new managers understand that, rather than seeing it as offloading work, delegation is a way to develop others and focus managerial attention where it matters most.
Coaches work with individuals to identify what to delegate and how, and to provide appropriate oversight without micromanaging.
Communication and feedback are foundational to management effectiveness.
For example, employee communication statistics show that when managers provide regular and ongoing feedback, employees are 3.2 times more likely to perform better and 2.7 times more likely to be engaged at work.
However, giving feedback is often more difficult than receiving it, especially for first-time managers who may struggle to provide constructive criticism without damaging relationships or offer recognition in ways that motivate continued performance.
In this case, executive communication coaching provides a safe space to practice these conversations and develop confidence in handling sensitive topics or negative feedback.
While employees typically make decisions within defined parameters, managers face ambiguity and must decide on matters that carry significant risks and consequences to the company.
Structured and strategic thinking, along with the confidence to act without perfect information, are learnable management skills that should be overcome early on.
Coaching builds them by helping leaders think through competing priorities, consider stakeholder perspectives, and accept responsibility for outcomes, including when decisions do not work out as planned.
When managers take responsibility for a team, they also assume responsibility for resolving all its conflicts.
Disagreement between colleagues is inevitable, but how leaders handle it determines its impact.
Conflict management requires separating facts from assumptions, staying neutral and unbiased, managing emotions, and facilitating honest and constructive conversations. The goal is not to eliminate disagreements but to resolve them in a way that protects team morale and productivity.
New manager coaching develops frameworks for approaching these difficult conversations early on before conflict escalates.
How a leader responds under pressure, provides feedback, communicates, or resolves conflict depends on their emotional intelligence.
This relational skill plays a significant role in the development of other operational competencies. It helps managers recognize what’s happening beneath the surface and respond in ways that move the situation forward.
While personality has some influence, emotional intelligence is not a fixed trait and can be taught. Through self-reflection and executive coaching, new managers can build greater awareness and strengthen their ability to lead with intention rather than instinct.
Management coaching may be specific to the individual, but it’s not improvised.
Coaches follow a structured methodology to move managers from current challenges to defined outcomes.
There are numerous established models, and their selection depends primarily on the objective – whether the focus is performance improvement, behavioral change, or strategic leadership development.
For example, industry perspectives from the Forbes Coaches Council highlight these five approaches as the most preferred:
Developed in the 1980s, GROW stands for Growth, Reality, Options, and Will (way forward) and is one of the most popular coaching strategies. This model provides a clear structure that can be useful for performance goals, strategic decisions, and problem-solving discussions.
STEPPA focuses on the connection between emotions and behavior and is a preferred choice for many management coaches because of its flexibility and efficiency in both one-on-one and group settings. The acronym STEPPA stands for Subject, Target, Emotions, Perception, Plan, and Act.
This solution-focused approach directs attention toward achievable progress rather than problems, through its coaching framework: Outcome, Scaling progress, Know-how, Affirming Strengths, and Review (OSKAR).
CLEAR is another popular coaching model developed in the 1980s and stands for Contracting, Listening, Exploring, Action, Review. Often used in a multi-session format, it is particularly effective for situations requiring transformational change.
The ACL model balances three areas for leadership development: task achievement, team formation and management, and individual growth. Due to its flexibility, it applies to all forms of leadership, regardless of the number of employees.
The early months of a first management role often reveal more than performance metrics do. Newly promoted managers are navigating an identity shift while operating under increased visibility and pressure.
Although not every struggle will require structured support, when the following predictable patterns begin to emerge, they indicate the need for deliberate intervention:
Early identification of these signs allows companies to provide support before small challenges become significant problems. However, the results and impact depend on how well they structure their executive coaching programs.
Manager coaching programs require thoughtful design that balances human interaction with structural support. This structure determines whether they become a strategic lever for leadership development or a short-term intervention with limited impact.
Clarity around ownership, objectives, integration, and measurement ensures the initiative strengthens individual and company performance.
Coaching solves defined problems or strengthens defined capabilities, but to do so, it needs a clear purpose that answers the question: what does success look like for the managers and the company?
For newly promoted managers, objectives usually centre on improving specific leadership behaviours, completing key projects or milestones, or reducing turnover within the manager’s team. These goals guide every interaction and ensure the program moves beyond training to real behavioural change.
Research shows that 44% of new managers feel unprepared for their role.
Another 87% wished they had more training prior to being promoted.
First-time managers often face similar challenges – delegating effectively, resolving conflict, and thinking strategically – but the nuances differ for each individual.
Identifying the areas where they struggle the most is a crucial step in coaching and leadership development. It requires observation and structured insight.
Self-assessments reveal areas where leaders feel less confident, while peer and team feedback reveal blind spots that might otherwise go unnoticed.
The next step is defining how coaching management will function in practice.
Should it be internal and integrated into broader talent development programs, or external with an independent perspective and dedicated expertise?
Internal coaches are employees, usually HR leaders or senior managers, who possess the necessary skills. They understand the company expectations and can align coaching with strategy and culture. However, managers may hesitate to be fully open with internal coaches due to concerns about confidentiality or political dynamics.
External coaches bring objectivity and specialized expertise. They offer complete confidentiality and can provide a perspective unconstrained by internal politics. External coaching typically costs more but may be more effective for complex situations.
Many companies also use a hybrid approach: internal coaches for broad manager development and external coaches for high-potential leaders or particularly challenging transitions.
Who receives coaching and at what stage? How often will sessions take place, and how will progress be reviewed?
Answering these questions provides the program’s core infrastructure.
For newly promoted managers, this often means a structured development plan within the first 90 days of their transition, consisting of a learning and development phase, an integration and application phase, and an implementation and results phase.
When development aligns with performance expectations, coaching becomes directly connected to measurable outcomes. This alignment ensures that program effectiveness, in this case leadership growth, is not abstract but tied to team results and strategic priorities.
Performance management systems can reinforce these objectives by tracking progress toward goals and documenting development plans, while regular performance reviews provide a checkpoint that reflects how coaching insights translate into action.
Leadership, both good and bad, impacts the employee experience.
This difference is evident in SHRM’s research Effective People Managers: The Linchpin of Organizational Success, which reveals that:
The study suggests that skill development can be the deciding factor in the transition from poor to effective leadership, particularly in areas such as coaching and mentoring, communication, performance feedback, conflict resolution, and strategic thinking.
When companies invest strategically in their employees’ development, according to Gallup, they can increase profitability by 11% and double their retention.
Coaching for managers, especially newly promoted ones, becomes a relatively small but highly beneficial investment compared to the costs of turnover, lost productivity, and team disruption caused by poor leadership.
Management coaching often reflects how a company approaches employee development.
As such, it’s susceptible to mistakes.
For example, when organizations introduce it late, usually as a response to visible performance issues, they position it as a correction rather than an investment. This oversight shapes how managers engage with their coaches and limits the impact from the start.
A more subtle challenge comes from a lack of clarity. Companies offer coaching without defining expectations or performance indicators. In this case, the program may drive some results, but it will likely fail to achieve considerable behavior change.
Inconsistency further weakens the impact, as different coaches, models, or isolated sessions create a fragmented experience. Without continuity, any attempt at employee development will struggle to build the foundation required for real, long-term growth.
Ultimately, the biggest mistake companies make with coaching management is making it an isolated exercise, disconnected from business priorities. Effective programs, in contrast, ensure that coaching goals align with organizational needs and that coaches understand the strategic context in which managers operate.
Managing employees today looks very different from what it was just a decade ago.
Teams are now more dispersed, employee priorities have shifted, traditional organizational structures have become more distributed, and technology and AI are actively reshaping how work gets done.
Therefore, the expectations placed on new managers are growing, and the assumption that leadership ability develops naturally through experience is becoming harder to justify.
In this changing, complex environment, management coaching provides the structured support and practical skill development that evolves alongside the workplace, promoting individual contributors into effective leaders able to navigate modern challenges.
Content Writer at Shortlister
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