Third Generation Coaching builds on the limitations of First and Second Generation Coaching by integrating deeper, more holistic approaches to self-exploration, meaning-making, and transformation. Its key characteristics include:

1. Systemic Perspective – It considers the coachee within a larger system, including their relationships, organizational structures, and cultural influences.

2. Narrative and Meaning-Making – It focuses on how individuals construct meaning through their personal stories rather than just setting and achieving goals.

3. Embodied and Somatic Awareness – Unlike earlier coaching models that prioritize cognition, Third Generation Coaching incorporates the body, emotions, and intuition in the coaching process.

4. Dialogical Approach – The coach and coachee engage in open, reflective dialogues rather than directive questioning or problem-solving models.

5. Transformational Rather Than Transactional – The aim is not just performance improvement but deeper transformation in personal and professional identity.

6. Integration of Complexity and Uncertainty – It acknowledges that modern challenges are ambiguous and complex, requiring adaptability rather than rigid goal-setting.

7. Ethical and Existential Focus – Coachees are encouraged to explore their values, purpose, and ethical considerations in decision-making.

8. Use of Aesthetic and Expressive Tools – Third Generation Coaching may involve metaphor, storytelling, and even artistic or movement-based methods to unlock new perspectives.

Reinhard Stelter, a prominent figure in the field of coaching psychology, is widely recognized as the founder of third-generation coaching. His approach emphasizes transformative dialogue, focusing on collaborative meaning-making, values, and identity exploration. This method moves away from traditional performance optimization, aiming instead to foster deeper self-reflection and personal growth. 

Stelter's seminal work, "A Guide to Third Generation Coaching," delves into the theoretical foundations and practical applications of this coaching paradigm. He advocates for creating reflective spaces where both coach and coachee engage as equal partners in dialogue, facilitating a co-creative process that leads to profound insights and development. 

Second-generation coaching represents an evolution in coaching methodologies, emphasizing solution-focused and future-oriented approaches. This generation of coaching strategies aims to create positive future scenarios by leveraging the strengths and resources of the coachee. Techniques such as solution-focused coaching, general systems theory-based coaching, appreciative inquiry, and positive psychology or strength-based coaching are integral to this approach. 

In second-generation coaching, the coachee is regarded as the expert in their own life, with the coach facilitating deep listening and posing insightful questions to guide the process. This method fosters a collaborative environment where the coachee's strengths are identified and harnessed to build a positive future. 

Overall, second-generation coaching signifies a shift from traditional performance-based models to approaches that prioritize the coachee's active participation in envisioning and realizing their desired future outcomes..

First-generation coaching, often referred to as "traditional coaching," emerged in the early stages of coaching development and is characterized by a focus on enhancing performance and achieving specific goals. This approach is rooted in behavioral and cognitive-behavioral techniques, emphasizing the identification and modification of behaviors to improve outcomes.

In first-generation coaching, the coach typically adopts a directive role, providing guidance, feedback, and strategies to help the coachee reach predefined objectives. The process is often structured, with clear agendas and measurable targets, aiming to bridge the gap between current performance and desired results.

This coaching model draws heavily from sports coaching methodologies, where the primary aim is to enhance specific skills and competencies. It operates on the premise that performance improvement can be achieved through systematic practice, feedback, and reinforcement.

While effective in skill development and performance enhancement, first-generation coaching has been critiqued for its limited focus on deeper personal development aspects, such as values, beliefs, and identity. This recognition has led to the evolution of coaching practices, giving rise to second and third-generation coaching models that incorporate more holistic and transformative approaches.

In summary, first-generation coaching laid the foundational framework for subsequent coaching methodologies by emphasizing performance improvement through structured, goal-oriented interventions.