The final thesis written for the IT Management Course explores the coaching as a contemporary management tool. The paper describes the difference between the traditional managerial approach and the tools, and coaching. The purpose of this paper is to present coaching as a modern management tool. According to modern research, coaching has emerged as an optimal way to encourage, not only employees, but generally people in all positions, to realize their potential. An organization that employs and will employ productive, creative and enthusiastic employees, has the potential to take a respectable position in the industry and build an excellent reputation. What is expected of a good coach is that he knows in detail the process of personal and professional development and directs employees to development. There are a number of coaching techniques available to all company employees, and they should be informed about the benefits that coaching brings. Organizations today operate in a very fast and changing environment and that is why they must constantly evolve and adapt to change in order to maintain sustainability, and every organization wants to use its most valuable resource, and that is employees. Organizations need to help their employees to be as efficient as possible, but also more satisfied and thus contribute to the development of the organization in which they operate. Coaching that is focused on developing potential and awareness of one’s abilities and skills should result in sustainable change, both for individuals and organizations. However, not all organizations have yet accepted the use of coaching techniques.