Leadership by example is important in coaching. A coaching leader loses credibility when they cannot practice what they preach. This means that a coaching leader should be well organised, highly competent in their field, communicate openly and encourage feedback, and has a clear idea of the organisation’s vision-mission-goals.
By vicarious and purposeful learning, members catch the same good practices and attitudes from the coaching leader, turning them into coaching leaders themselves. If a member experiences good coaching, they are most likely to do the same things when entrusted with formal leadership roles.
Some words of caution though: coaching is just one of the styles of leadership. It can be done in combination with the other five emotional leadership styles depending on the profile of the emerging team.
Furthermore, coaching as a leadership style requires that you are physically, emotionally, and mentally fit most of the time since it involves two levels of coaching: individual and team. Your members expect you to be the last one to give up or bail out in any situation especially during times of crises.
A coaching leader must be conscious that coaching entails investing time on each individual, and on the whole team. Also, since while you are coaching members, you are also developing future coaches as well.