Sponsored coaching, where an organisation pays for an individual's coaching, introduces a layer of complexity that independent coaching does not. The three-way contracting process, involving coach, client, and organisational sponsor, is the mechanism through which this complexity is managed. When handled skilfully, it creates clarity, alignment, and accountability that enhance the coaching's effectiveness. When handled poorly, it creates confusion, divided loyalties, and compromised outcomes.
The Purpose of Three-Way Contracting
The three-way meeting serves several essential functions. It ensures that all parties share a common understanding of why coaching has been commissioned, what outcomes are expected, and how the engagement will be managed. It creates an opportunity for the client and sponsor to discuss development needs openly, which can be a valuable conversation in itself. It establishes the confidentiality framework that will govern the engagement. And it positions the coach as a professional who manages the process rather than simply delivers sessions.
The timing of the three-way meeting matters. It should take place after the chemistry session, when the coach and client have already established initial rapport, but before the substantive coaching work begins. This sequence ensures that the client has chosen to work with this coach before the organisational context is introduced, preserving their sense of agency in the process.
Facilitating the Conversation
The coach's role in the three-way meeting is primarily facilitative. You are creating a structured conversation between the client and sponsor, not interviewing either party. Begin by inviting the sponsor to share their perspective on why coaching has been commissioned and what outcomes they hope to see. Then invite the client to share their own view. Look for areas of alignment and, just as importantly, areas of difference.
It is not uncommon for the sponsor and client to have different priorities. The sponsor may want the client to develop greater strategic thinking, while the client may be more concerned with managing workload and stress. These differences are not problems to be resolved in the meeting. Rather, they are valuable data that helps the coach understand the full picture and design an engagement that addresses both sets of concerns.
Establishing Boundaries and Reporting
The three-way meeting is the appropriate moment to establish the confidentiality framework and agree on how progress will be communicated. Be explicit and specific. Will there be a mid-point review meeting? Will the coach provide written progress reports? What level of detail will these reports contain? Will the client see the report before it is shared with the sponsor?
Most experienced coaches recommend that the client is involved in all communications with the sponsor. This might mean agreeing together on the content of a progress report, having the client present at any review meetings, or using a "no surprises" principle where nothing is communicated to the sponsor that the client has not approved. This approach maintains the client's trust while meeting the sponsor's legitimate need for information.
Managing Power Dynamics
Three-way contracting inevitably involves power dynamics. The sponsor typically has organisational authority over the client and may be their direct manager or HR business partner. The client may feel constrained about what they can say in the sponsor's presence, particularly if the coaching has been commissioned in response to performance concerns.
The coach must be sensitive to these dynamics while creating enough safety for an honest conversation. This might mean speaking with the client briefly before the meeting to understand any sensitivities, creating space in the meeting for each party to speak without interruption, or following up individually after the meeting to address anything that could not be discussed openly.
The Living Contract
The three-way contract should not be treated as a one-time event. Schedule a mid-point review to assess progress, adjust objectives if needed, and ensure continued alignment between all parties. The end-of-engagement review is equally important, providing an opportunity to celebrate progress, discuss ongoing development, and agree on any further support the client might need.
Throughout the engagement, maintain a professional relationship with the sponsor that demonstrates your commitment to the organisation's investment while never compromising the confidentiality of the coaching relationship. This balance, held with consistency and integrity over time, is what builds the coach's reputation as a trusted professional partner.