Coaching as a Catalyst for Organizational Transformation

Imagine being able to report to stakeholders that your team spearheaded 86 successful projects, generating the equivalent of over $577,000 return on investment. Or that your company reduced hiring expenses by a whopping 200%.

It wouldn’t be long before other business leaders would ask, “What’s your secret to success?”

For AEON Vietnam Company Limited, the secret is its coaching culture, which is built on the philosophy that “leaders create leaders.” AEON Vietnam is a leading retailer in Vietnam under AEON Co., Ltd., based in Japan, and has seen massive results from its coaching culture.

In addition to a significant ROI and reduced hiring expenses, the company consecutively ranks as one of the 100 Best Companies to Work for in Vietnam. In 2023, Anphabe ranked it as the number one company to work in retail.

More important than the external accolades, among its existing staff, AEON Vietnam is experiencing lower turnover rates than the average rate in the retail industry. The impact of embracing a coaching culture has enabled AEON Vietnam to surpass projected sales budgets since the implementation of the program.

The coaching culture’s monstrous (vang dội) success has prompted other business leaders to ask AEON Vietnam to share best practices for seeking management approval for coaching initiatives.

Here, you can get a behind-the-scenes look at how AEON Vietnam implemented and grew its internal coaching program, earning the prestigious International Coaching Federation (ICF) Coaching Impact Award.

Taking Action

Like many organizational leaders, those at AEON Vietnam realized the 2020 pandemic could be a catalyst for transformation. Early in the global crisis, AEON Vietnam committed to investing in ways to motivate leaders, boost innovation and collaboration, and maintain employee morale.

AEON Vietnam implemented an internal coaching program to achieve those goals and foster new ways of working through individual and team development. In the beginning, the company had to address existing cultural norms. In Asian culture, following workplace hierarchy is common. As a result, subordinates often follow the orders of supervisors, and individuals hesitate to speak out about concerns or act autonomously.

To shift this dynamic, AEON Vietnam prioritized leadership coaching to enable managers to address these fears. Through coaching, employees were encouraged to act courageously and explore innovative solutions. The “leaders create leaders” philosophy embedded in the coaching program quickly became part of daily operations.

Coaching also became a vital link to enhance cross-departmental collaboration across AEON Vietnam’s corporate offices and improve overall business outcomes, breaking down barriers and establishing better communication across functions.

Getting Buy-In

Developing a coaching culture requires buy-in from every level within the organization, from the top leaders to managers and frontline employees. Investing in professional development should be an easy sell. However, it’s common to face resistance, either real pushbacks or existing hierarchical barriers.

Recognizing there would be challenges to getting buy-in from leadership, AEON Vietnam conducted a pilot program. The impressive pilot program results convinced leadership to launch the AEON Vietnam coaching program formally.

More than half of AEON Vietnam’s 6,000 employees have participated in the coaching program, which is open to all staff. Employees have access to 12 external coaches and two internal coaches who have earned their Associate-, Professional-, or Master Certified Coach (ACC/PCC/MCC) credential through ICF. Access to this number of ICF credentialed coaches is significant as Vietnam has only 100 ACCs nationwide (data in 2023), including the two in-house at AEON Vietnam.

Identifying Goals

One key component to gaining leadership’s trust necessary for investing in an internal coaching program centered around identifying goals. Through goal setting, AEON Vietnam established four markers to guide program development and intended outcomes.

AEON Vietnam’s Four Key Business Goals:

• Promoting private brand.
• Accelerating multi-format development to meet customer demands.
• Strengthening the e-commerce business.
• Being recognized as an Employer of Choice and Responsible Corporate Citizen by critical stakeholders, such as customers, the government, the community, and the workforce.

By clearly defining its objectives, AEON Vietnam can ensure its coaching program delivers measurable results that contribute to long-term success.

Measuring Success

Results from the initial pilot program were impressive enough to convince AEON leadership to invest in an internal coaching program with organization-wide access. The impacts were immediately noticeable in daily interactions and cross-departmental collaboration. However, establishing markers to measure and quantify results is critical to sustaining a long-term internal coaching program.

Sample of Metrics AEON Vietnam Uses

• A high-performance team survey. Results jumped 12% from 2021 to 2023.
• A coaching recipient satisfaction score. Scores increased by 7% from 2022 to 2023.
• A happiness workforce survey. Data from 2023 showed AEON Vietnam’s workforce happiness is 115% higher than the average score of the retail industry in Vietnam.

The holistic implementation of coaching has extended far beyond one-to-one coaching engagements for its staff. AEON Vietnam is actively shaping a culture of empowerment and development, both internally and within the Vietnamese market at large, driving the power of coaching in a new market. Learn more about their award-winning coaching and leadership development program in this deep dive case study.