Thanks for the thoughts, Cuan. I definitely agree on the value of an external point of view (it's how I make most of my revenue, after all). This is where I'd start to distinguish between "coaches" and "consultants," however.

I've noticed that it's become increasingly difficult for my friends who are coaches ONLY to maintain a sustainable external practice -- and I don't think this is simply due to the economy. I want to also reiterate that this isn't about coaching being not valuable; it's due to the different KIND of strengths/talents/value that a coach brings.

The unique value a coach creates is one that managers SHOULD have been doing all along -- listening to their direct reports, helping to liberate employee's unique gifts, cultivating an engaging work environment, etc. As more leaders begin to recognize (and more importantly, execute) the competitive advantage that lies in these "coach-like" behaviors, the location where the demand happens will shift, bringing the supply of coaches "inside."