Chicago Executive Coaching Consulting Services Firm - Think … · 2016-06-01 · Any behavioral changes in the leader, and resulting changes in his or her outcomes, will directly

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The Truth About Executive Coaching

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Table of Contents Executive Summary ................................................................................................. 1

Introduction ............................................................................................................. 2

Six Truths about Executive Coaching ......................................................................... 3

1. Coaching Is a Cost-Effective Investment with a High Rate of Return .............. 3

2. Coaching Must Align to Business Outcomes ................................................... 3

3. Coaching Must Involve the Leader’s Key Stakeholders ................................... 4

4. Coaching is Not Therapy ................................................................................... 4

5. Coaching is Not for Everyone ............................................................................ 4

6. Coaching Requires Dialog Fit ............................................................................ 5

In the rest of this Special Report… .............................................................................. 5

Truth One: Executive Coaching is a Cost Effective Investment with a High Rate of Return ................................................................................................. 6

Measuring the Impact of Executive Coaching .......................................................... 6

How to Capture Executive Coaching’s Impact on Key Stakeholders ...................... 7

Calculating the ROI from Executive Coaching .......................................................... 8

Calculating ROI – An Example: ................................................................................... 9

Truth Two: Executive Coaching Must Align to Business Outcomes ...................... 11

STEP I: Identify Critical Initiatives ................................................................................. 12

STEP II: Determine the Necessary Leadership Competencies .................................. 14

STEP III: Identify Candidates Most Likely to Benefit from Coaching .......................... 16

Truth Three: Executive Coaching Must Involve the Leader’s Key Stakeholders .......................................................................................................... 20

Two Requirements for Stakeholder-Centered Leadership Coaching ..................... 21

The Heart of the Stakeholder-Centered Leadership Coaching Process ................. 21

Two Rules for Identifying and Selecting Key Stakeholders ....................................... 22


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Setting and Managing Expectations ........................................................................ 23

Executive Coaching without a Support System is a Waste of Time and Money ................................................................................................................. 23

Truth Four: Executive Coaching is Not Therapy .................................................... 25

What is Executive Coaching? .................................................................................... 26

What is Therapy or Counseling? ............................................................................... 26

What Does the Executive Coaching Process Look Like? ......................................... 28

When to Use Executive Coaching ............................................................................. 28

Truth Five: Executive Coaching is Not for Everyone .............................................. 30

How to Choose the Best Candidates for Executive Coaching ............................... 31

Truth Six: Coaching Requires a “Dialog Fit” .......................................................... 33

Separating the Wheat from the Chaff ...................................................................... 33

The Importance of Dialog Fit ..................................................................................... 35

Essential Coaching Criteria ....................................................................................... 36

In Summary: Executive Coaching Can Make a Real Difference to Your Organization ............................................................................................. 37

About Dr. Robert Denker ....................................................................................... 38


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Executive Summary s an executive, you face enormous pressure every day to improve revenues, increase profitability, and enhance productivity whatever your business, industry or sector.

The simplest way to address these pressures is to expand your market, introduce operational improvements and/or redirect your strategy.

But when you begin to make those adjustments, you may find yourself facing even more and greater challenges. Developing existing talent, hiring new talent, and working toward effective execution may raise questions related to your current team and leadership performance.

In addition, with additional pressure comes the need for better cost control and more effective management and leadership skill – from yourself as well as from your team.

Many leaders face such challenges by exploring the idea of Executive Coaching. And since there is no “official” voice for the executive coaching industry, this report describes 6 key “truths” about the process, offering some needed insight into this much-discussed, yet somewhat “mysterious” developmental process:

• Coaching is a cost-effective investment with a high rate of return

• Coaching must align to business outcomes

• Coaching must involve the leader’s key stakeholders

• Coaching is NOT therapy or counseling

• Coaching is NOT for everyone

• Coaching requires a dialog fit

This Special Report will explore each in detail, emphasizing that executive coaching can be the most cost-effective solution to the challenges facing you and your organization.

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Introduction n today’s highly competitive corporate landscape and shifting economic

conditions, companies need to take advantage of every performance-enhancing tool at their disposal not only to survive – but to thrive.

Executive coaching is one of the most cost-effective tools available, providing average returns on investment of more than 500%.

Talent makes the difference between success and failure in most businesses. Strategy, customer insight, the superiority of your product or service and the size of your financial resources are all critically important, but are simply not enough if the people within the organization lack the skills necessary to make the most of them.

That’s why organizations of all sizes in almost every industry, have used executive coaching to improve productivity, increase bottom lines, and assist high-level executives in gaining critical leadership skills for themselves, their teams, and their organizations.

But given the growth and fragmentation of the coaching industry (meaning thousands of people in the marketplace who call themselves coaches) it is not surprising that many leaders looking at the idea of executive coaching are confused.

And since there is no “official voice” for the executive coaching industry, there is a need for some truth about this widely-discussed yet somewhat mysterious developmental tool.

I EXECUTIVE COACHING:

THE 6 TRUTHS

1. Coaching is a cost-effective Investment with a high rate of return

2. Coaching must align to business outcomes

3. Coaching must involve the leader’s key stakeholders

4. Coaching is NOT therapy or counseling

5. Coaching is NOT for everyone

6. Coaching requires a “dialog fit”



If you’re looking for a clear understanding and insight about the process of executive coaching and whether it might be a viable solution for you or your organization, I’d like to share my insight about the subject.

In my own professional experience – having coached hundreds of executive clients -- I have discovered six universal “truths” about executive coaching. I consider them truths because they have proven consistent over time and will continue to define the field of executive coaching for the foreseeable future.

Six Truths About Executive Coaching

1. Coaching Is a Cost-Effective Investment with a High Rate of Return

Think about how much your organization spends on paper clips, Dixie cups, and coffee filters each year – then think about the ROI from those expenditures. Not much of a return, right?

By contrast, executive coaching is relatively inexpensive when measured from the perspective of return on investment. In fact, research finds reported ROI’s from coaching tend to exceed 500%!

The problem? Most organizations don’t even measure coaching results formally — and worse: most leaders couldn’t care less about the ROI (or any other metrics, for that matter) of executive coaching.

So, before one can look at any other aspect of executive coaching, you must first realize and understand how to accurately calculate the true rate of return from coaching directly related to your overall business goals.

2. Coaching Must Align to Business Outcomes Any investment in executive coaching must be data-driven, measured against desired business results: improved processes, streamlined decision-making, and a healthier bottom line.

It’s about the business, plain and simple. If you cannot connect the process directly to business outcomes, don’t invest in coaching.



3. Coaching Must Involve the Leader’s Key Stakeholders The whole coaching process must include consideration of the leader’s key stakeholders. Colleagues, bosses, direct reports, board members or other stakeholders are identified early in the process – and their feedback about the leader’s effectiveness is actively sought.

Any behavioral changes in the leader, and resulting changes in his or her outcomes, will directly impact those stakeholders and their buy-in is critical to the process.

4. Coaching is Not Therapy Executive coaching will not help you decide what you want to be when you grow up, help you find your ideal mate, or help you with issues of distress or personal loss. Therapy or “life coaching” best resolves such personal challenges.

An executive coach, however, works with you individually or with your group to help develop leadership behaviors and skills that directly impact your organization’s strategy and contribute to its key financial indicators.

5. Coaching is Not for Everyone Perhaps because it’s confused with “therapy” or “life coaching,” many people erroneously believe that coaching is a remedy for poor performers or those who lack motivation or focus. Nothing could be further from the truth.

Executive coaching is designed for leaders who are highly valued key contributors — those whose roles are expanding, who are motivated toward organizational growth and increased profitability, and whose commitment to the process is unshakable.

Coaching is designed to make the best of your team even more effective. It’s about working with professionals who are already very good at their jobs -- and making them even better.



6. Coaching Requires “Dialog Fit,” not Just a Personal Fit between Coach and Client

The success of executive coaching hinges on the partnership between the coach and the leader – who must be matched in terms of goals, drive, and, to some extent, “personal fit.” However, “personal fit” is subordinate to “dialog fit.”

One of the best ways to achieve such a dialog fit is to ensure that any executive coach you select brings experience and expertise as a leader to the process. In other words, it’s important to know your coach has sat where you’re sitting, and can discuss your process with relevant wisdom and insight.

And given that the goal of executive coaching is to produce organizational outcomes, choosing the right executive coach should be an organizational decision. The decision should never be left solely to the leader being coached.

In the rest of this Special Report… Each of these six “truths” will be explored in detail in the following chapters to help you determine whether executive coaching might be the right solution for you and your company.



Truth One:

Executive Coaching is a Cost Effective Investment with a High Rate of Return

oaching is relatively inexpensive, when measured from the perspective of return on investment (ROI).

In fact, preeminent executive coach, Dr. Marshall Goldsmith: relates the investment in coaching to the “cost of paper clips!”

But before I show you how to easily calculate the ROI from executive coaching, let’s take a look at what happens in most organizations today.

Measuring the Impact of Executive Coaching The sad truth is this: Most coaches and human resources practitioners worry more about the real impact of coaching than their own organizational leaders do!

As a matter of fact, most organizations don’t even measure coaching results formally — and worse: most leaders couldn’t care less about the ROI (or any other metrics, for that matter) of executive coaching.

Why not?

Because most leaders only care about whether they were “personally satisfied with the process.” And more often than not, if the leader was satisfied, so was the coach.

This “mutual satisfaction society” is no way to measure ROI or organizational impact!

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Impressive ROIs are not uncommon when organizations focus their attention on measuring executive coaching outcomes.



Unfortunately, too many organizations continue to demand less -- not more -- from the coaching process and default to a purely subjective measurement of “satisfaction” to justify the expense.

To achieve the most impact from an executive coaching engagement, the leader must involve his or her key stakeholders... they are actually the ones who determine its success.

How to Capture Executive Coaching’s Impact on Key Stakeholders One simple and practical way to determine the impact of executive coaching is to conduct a Mini 360 Assessment with the leader’s key stakeholders -- either during the coaching engagement or at its conclusion.

The Mini 360 Assessment:

• Allows the leader to track performance and assume personal responsibility for

development

• Targets only one or two behaviors the leader is working to change

• Provides “quick” feedback after the leader has worked his or her action plan

• Identifies the results of development efforts, and provides a checkpoint to take

stock and re-calibrate efforts if necessary

Although the Mini 360 uses a similar approach to a traditional 360 performance appraisal, it is much less demanding on the stakeholder's time (It can usually be completed in 10 minutes) and focuses the leader's attention on the specific behaviors he or she is working to change. Results can be aggregated for a good view of the leader’s overall progress.

The benefits of this approach are many, but the most obvious is keeping the key stakeholders involved in the coaching process.

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Calculating the ROI from Executive Coaching Calculating the Return on Investment (ROI) of Executive Coaching remains an elusive goal for many -- but it doesn’t have to be.

Most organizations don’t even measure coaching’s ROI because they either don’t know how or they assume it’s too difficult.

Most ROI methodologies tend to be subjective, because they rely on estimates of coaching’s impact on business or strategic metrics. While estimates don’t absolutely measure actual business impact, the honest truth is that all ROI calculations are based on estimates.

Following a simple and practical 2-step method to calculate your ROI from executive coaching will help get you well beyond most basic metrics, and at the same time eliminate any perceived complexity.

Step 1:

• Engage the leader and key stakeholders at the very beginning of the

coaching engagement to focus on ROI. Developing an ROI mindset is critical.

• Provide parameters. For example, invite the leader and stakeholders to focus

on metrics in one of four Balanced Score Card areas: Finance, Customers,

Internal Processes, and Learning/ People.

• Ask: “How will a change in Behavior X help us reach the business goal or complete the strategic initiative?”

Step 2:

• During the coaching engagement, and at its conclusion, ask the leader and

key stakeholders, “What percentage of the achieved business results do you attribute to the executive coaching process?”

• Next ask: “On a scale of zero to 100%, how confident are you about this contribution?” Establishing this confidence level is critical because it affects the

final ROI calculation, as I’ll show you in the following example.



Calculating ROI – An Example:

Global Industries has identified decision-making as a critical leadership competency required to achieve a target of 10% revenue growth on a base of $10 Million in sales for the next fiscal year.

Margaret, who is a VP, is the leader most responsible for the initiative and most likely to benefit from executive coaching to improve her decision-making skill.

At the end of the 9-month coaching engagement, Margaret’s division achieved 12.5% revenue growth – a total of $1.25 Million.

To determine ROI, ask:

1. What percentage of that $1.25 million can be attributed to the coaching process? The collective answer from Margaret and her key stakeholders was that executive coaching was 20% responsible of this goal attainment.

2. How confident are they that 20% of the revenue growth is a direct result of the coaching process and her improved decision-making? Margaret and her stakeholders agree that they are 80% confident that coaching contributed to the improvement in revenue.

In dollars, the positive impact of coaching is calculated by multiplying the level of confidence by the estimated contribution – in this example, 80% of 20%, which produces an adjusted confidence level of 16%.

Based on these estimates, the adjusted impact of coaching on the success of the initiative is 16% of $1.25 Million, or $200,000.

The last piece of information required for calculating the ROI is the cost of the coaching. In this example, the professional fee was $20,000. Finding the ROI becomes simple division:

$200,000 (Adjusted Impact of Coaching) $ 20,000 (Professional Fee for Coaching)

= 1000% ROI



Impressive ROIs of this magnitude are not uncommon when organizations focus their attention on measuring executive coaching outcomes.

In fact, research finds reported ROI’s from coaching tend to exceed 500%. (For further information on the ROI of executive coaching see the The ROI Institute website).

Although measuring the impact of executive coaching will always be somewhat subjective, there is still reason to embrace the words of Dr. Marshall Goldsmith when he states that coaching is the “cost of paper clips!” In other words, executive coaching is a very cost effective investment for your organization that can produce very high returns.

To get the highest ROI, it’s critical to focus the executive coaching process on producing measurable business results. In the next chapter, I’ll show you how.

http://roiinstitute.net/�

http://roiinstitute.net/�



Truth Two:

Executive Coaching Must Align to Business Outcomes

he purpose of executive coaching is to improve business results…period.

It sounds obvious, doesn’t it? But surprisingly, the vast majority of firms and coaches make little to no effort to align coaching to practical business

outcomes.

As a matter of fact, Alec Levenson in Meeting and Maximizing the Business Impact of Executive Coaching (University of California 2009) surveyed human resource professionals and found:

• 46% of respondents indicated they conduct no tracking whatsoever of coaching effectiveness

• Only 14% conduct formal “before and after” assessments

• Of those who do track, only about a quarter measure leader satisfaction

• Only about one third actually measure the effect of coaching on behavior

To put it simply, the sad truth is this:

It is largely “taken on faith” that coaching will enhance a leader’s abilities…and eventually (hopefully) yield business results.

In other words, there’s a gaping hole in the industry.

Here’s the problem:

Most executive coaches do not have an executive background. They never worked for, held a strategic position in, or had P&L responsibility for a top-tier organization.

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Prioritize your needs against an assessment of business-level strategic initiatives.



Moreover, they quite literally do not have the knowledge or experience to even consider making coaching a business-driven process.

Not only that, current professional coaching literature is devoid of any advice or instruction about how to conduct business-driven coaching.

So what do you do if you want to align the coaching process with business results?

It’s quite simple.

Prioritize your needs against an assessment of business-level strategic initiatives.

In short, the goal is to focus executive coaching on the key business initiatives that matter most to the current — and future — success of your business.

Therefore, offer coaching support to the leaders (and teams) responsible for successfully delivering those key value-creating initiatives.

Any credible coaching practice should use a focused three-step approach to successfully implement and align executive coaching to actual business needs.

Now, let’s explore each step in detail.

STEP I: Identify Critical Initiatives For a strong foundation that ensures the coaching process is properly aligned to your business outcomes, it’s necessary to identify the critical initiatives that will benefit most from coaching. You’ll need to answer three key questions:

1. What initiatives are “mission-critical” to your company, business, or function?

FOCUSED APPROACH TO EXECUTIVE COACHING

STEP I: Identify Critical Initiatives

STEP II: Determine Leadership Competencies

STEP III: Identify Candidates Most Likely to Benefit from Coaching



• Which initiatives would benefit most from providing executive coaching support to its leaders?

• What level of leadership strength or competence is necessary for the success of the initiative?

Once you’ve identified the initiatives best suited for coaching, you’ll want to evaluate each of the strategic initiatives according to the following Key Strategic Filters (ranking them as High, Moderate, or Low):

a) Importance to Business Success

b) Probability of Success without Coaching Support

c) Level of Leadership Strength and Competence Required

Typically any strategic initiatives (whether at the corporate, business, or functional levels) considered for coaching would be a high priority to overall business success; have a low to moderate probability of achievement without assistance; and require a strong or high level of leadership strength and competence.

In Example 1 below, the leader has identified five strategic initiatives critical to the organization, and evaluated each one against the Key Strategic Filters.

EXAMPLE 1: SELECTING A MISSION CRITICAL INITIATIVE FOR COACHING*

Initiative Importance to Business

Probability of Success Without

Coaching Assistance

Leadership Strength Required

Introduce a new product in the Energy Group

Moderate High Moderate

Integrate a new acquisition High Moderate High

Launch business in China High Moderate Moderate

Implement Six Sigma High Low High

Strengthen the leadership bench

Moderate Moderate Moderate

*Source: Corporate Executive Board 2003, "Maximizing Returns on Professional Executive Coaching”



In this example, implementing Six Sigma is identified as “mission-critical” because it is of high importance to the business, has a low probability of success without executive coaching, and requires a high level of leader strength to succeed in delivering business returns.

STEP II: Determine the Necessary Leadership Competencies Once you have selected your strategic initiative(s) you’ll need to define the leadership skills and behaviors most important to accomplishing those initiatives and necessary for success.

Your choice needn’t be complicated or difficult. The simplest, most efficient way to define the required leadership skills and behavior is this:

• Review a published list of leadership competencies (see Example 2 below).

• Select 3-6 key competencies necessary to achieve the targeted business results

(see Example 3 on the following page).



EXAMPLE 2: SAMPLE OF THREE TYPICAL LEADERSHIP COMPETENCIES

Note: This is just a partial list of applicable leadership competencies and skills.

EXAMPLE 3: ANALYSIS OF SKILLS REQUIRED FOR SIX SIGMA INITIATIVE

Mission-Critical Strategic Initiative: Implement Six Sigma

Targeted Business Results Desired: Reduce service response time by 40% by third quarter

Leadership Competencies Required to Achieve the Targeted Business Results:

• Managing Change

• Planning & Organizing

• Influencing & Persuading

Decisive Judgment

Makes good decisions in a timely and confident manner

• Decides in a timely manner

• Decides with conviction and does not second guess the decision without very good new

information

• Confidently takes action based on his/her decisions

Drives For Results

Challenges, pushes the organization and themselves to excel and achieve

• Challenges self and the organization to set high expectations

• Sets or helps to set appropriate goals and objectives

• Exerts the personal effort and hard work to achieve results

Integrity

Upholds a high standard of fairness and ethics in everyday words and actions.

• Holds him/herself to a high standard and will do what is right in spite of the consequences for him/herself

• Does not promise that which he/she cannot deliver



STEP III: Identify Candidates Most Likely to Benefit from Coaching Once you know the key competencies necessary to achieve the targeted business results of your mission-critical strategic initiative, then you can choose the leaders who would benefit most from coaching to achieve these initiatives, and determine their goals for the process.

It’s a fairly straightforward process.

First, identify all of the leaders involved in the mission-critical initiative. These people are often the “owners” of the process.

Be sure to include any other key contributors who will be involved in or responsible for the initiative. Key contributors are often other team members or people whose roles have significant influence or impact on the initiative’s results.

EXAMPLE 4: LEADERS/PROCESS OWNERS & KEY CONTRIBUTORS FOR THE SIX SIGMA STRATEGIC INITIATIVE

Leaders Team Members & Key Contributors

Pat Rivers Jamie Boyle

Jean Beaumont Pat Kemp

Don Fernandez Anne Cates

Amala Bhalla

Chris Nolan

Clive Pitts

From your list, select the leaders and key contributors who are most likely to benefit from executive coaching based on their demonstrated strengths (using the key leadership competencies you identified in Step II).

More than just a “gut check” or judgment call, you must base your evaluation of each leader and key contributor on either a competency development tool or a 360-degree performance appraisal.




Now, evaluate each leader and key contributor (high-moderate-low) against the competencies you identified as necessary to achieve the targeted business results for the mission-critical Six Sigma initiative.

Upon examination, you’ll quickly be able to identify the candidates who would benefit most based on an evaluation of their competencies.

Example 5 below details the selection process.

EXAMPLE 5: ASSESS LEADER STRENGTH AGAINST COMPETENCIES REQUIRED TO ACHIEVE THE TARGETED BUSINESS RESULTS

Skills Required

Name Managing Change Planning & Organizing

Influencing & Persuading

Anne Cates High High High Jean Beaumont High High Moderate Don Fernandez Low High High Jamie Boyle Low Low Moderate Amala Bhalla High High High Chris Nolan High Moderate High Pat Rivers Moderate Moderate Moderate Clive Pitts High High High Pat Kemp High High Moderate

In this example, Jamie Boyle, a contributor, and Pat Rivers, a team leader, are identified as the best candidates for executive coaching as they have the highest probability of success based on leader strength assessment.

With evaluations of low and moderate in the skills required to implement the Six Sigma initiative, you might think that I’m suggesting you focus your attention on “poor performers” in this example.

Nothing could be further from the truth.



While executive coaching is truly not for everyone, its purpose is to make the best performers even better – not to correct or coerce those who are not performing up to standard.

Poor performers are those who demonstrate lack of motivation, resistance to change, and unwillingness to address or correct their own non-productive behavior. They are not performing up to standard in many areas. You know who they are. And you can accurately predict that they will react to coaching with the same kind of resistance.

Later on in this report, I’ll show you why coaching is the worst solution you could choose to correct performance problems (see Truth 5).

On the other hand, to even be chosen to implement Six Sigma, candidates must be proven leaders with demonstrated leadership skills and motivation, as well as enormous talent and potential for growth.

Even though they are rated as “low” or “moderate” in the leadership skills Six Sigma implementation requires, a 360 assessment reveals Jamie Boyle and Pat Rivers are not “poor performers.”

Rather, they have high levels of competence in other areas.

For example, they both bring strong knowledge required for this initiative, as well as an acute understanding of the organization’s culture. All they need is a helping hand to develop and hone the key leadership competencies necessary for this particular project.

By using this simple yet practical three-step approach to selecting coaching candidates, your organization can achieve success more predictably and consistently.

Why? Because successful executive coaching is…

Based on a mission-critical business need

Defined explicitly in business terms

Linked solely to leader behaviors that support targeted business results



Provided only to the leaders with the highest probability of success from the

coaching engagement

Once you’ve selected the initiatives and team members most likely to benefit from the executive coaching process, you’ll need to broaden your focus to determine – and involve – other key stakeholders in the coaching process. In the next chapter, I’ll show you why.



Make sure to set yourself – and your organization – up for success by involving key stakeholders in the coaching process from the outset, and use their input to monitor the progress of the coaching relationship.

Truth Three:

Executive Coaching Must Involve the Leader’s Key Stakeholders

o realize the greatest impact from executive coaching, the leader being coached must involve his or her key stakeholders

— those people necessary to their business success – in the process.

Here’s why. No one within an organization operates in a vacuum. Each of us is part of a team, a culture, a context. Our behavior impacts people around us in many ways, influencing decisions, plans, and communication.

Therefore, making improvements that only we (and our coach) can see is simply not a good enough result. The only real, lasting impact is when the people we interact with – our key stakeholders – perceive the positive changes in our leadership behavior.

In this case, “perception truly is reality” because once our key stakeholders perceive changes in our behavior, they will change the way they interact with us – leading to better communication, improved planning and decision-making, and enhanced working relationships.

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From this perspective, successful executive coaching must involve more than just the leader and the coach. It must also include bosses, peers, and direct reports; key customers, vendors or suppliers who interact with the leader; family members (in a family-run business); and literally anyone who is affected by the success or failure of the critical initiative.

Executive coach Dr. Marshall Goldsmith calls this process Stakeholder-Centered Leadership Coaching. The most skilled, reputable executive coaches incorporate stakeholder-centered coaching into their practices, working from two basic requirements:

Two Requirements for Stakeholder-Centered Leadership Coaching 1. Gather confidential feedback (preferably using a 360-degree performance

appraisal) from those who work most closely with the leader.

The key stakeholders invited to participate most often include the leader’s boss (and boss’s boss), and direct reports, peers, and other leaders in the firm. In addition, some circumstances merit including selected vendors, suppliers, customers -- even family members – in the feedback process.

2. Evaluate the feedback. Working together, the leader and coach evaluate the feedback to determine one development area that, if improved or sustained, will contribute most directly to the mission-critical strategic initiative.

The Heart of the Stakeholder-Centered Leadership Coaching Process At its heart is a 4-step process:

The leader asks each key stakeholder for specific suggestions about how to

best achieve a positive change in an identified development area. For example,

a leader might ask each stakeholder, “Over the next month, what suggestions

can you offer about how I can become a more effective decision maker?”





Whatever the feedback, the leader simply responds by saying “thank you,” indicates that he or she will consider the suggestion, and promises to follow up monthly.

The leader follows up as promised, asking the stakeholders whether they have

observed improvement in the development area. Monthly follow-up allows the

leader (and the coach) to obtain instant feedback, confirm sustained practice,

or launch development adjustments as necessary.

This monthly commitment is the key to ensuring everyone has a vested stake in the

coaching process. The key stakeholders therefore are not only active participants in the executive coaching process, they are the ones who actually

determine its success.

With such a stakeholder-centered approach, coaching success is not, therefore, defined by the leader or the coach alone.

For more information on stakeholder-centered coaching see marshallgoldsmithlibrary.com.

Two Rules for Identifying and Selecting Key Stakeholders Of course, choosing the key stakeholders to involve is critical to making the coaching process work. I recommend the following two rules:

Rule # 1: Select those who know the leader well.

A key stakeholder must have experience working with the leader sufficient to provide valid responses on the 360-degree performance appraisal, because the responses are based on observable behaviors. A helpful rule of thumb is to select those people who have worked with the leader for a minimum of 6 months and fully understand the leader’s role.

Rule #2: Select a cross-section of people.

Select key stakeholders who have had a wide variety of experiences with the leader, having worked on various projects with varying degrees

http://marshallgoldsmithlibrary.com/�



of success. Including some positive and some negative provides a more complete and balanced picture of the leader’s perceived strengths and areas for further development.

Setting and Managing Expectations Involving key stakeholders is really about setting, measuring and influencing expectations. Here are three practical steps to get you started.

Step 1: Set Conscious Expectations

Focus your developmental goals on how your behavior as a leader impacts your stakeholders. If you aren’t thinking about it on a daily basis, the odds don’t favor much positive change in your selected area for development.

Step 2: Monitor Expectations

Since you set developmental expectations at the beginning of the coaching process by asking for their suggestions, make sure to check in with your key stakeholders monthly to ask how they think you are doing. Such ongoing communication positively reinforces expectations.

Step 3: Influence Expectations

If the monthly check-in reveals that stakeholder expectations are not being met, you can influence stakeholders to set appropriate expectations by explaining why their particular suggestion did not work for you, and ask for alternatives.

Executive Coaching without a Support System is a Waste of Time and Money If the process of executive coaching does not involve those working closest with the leader -- the key stakeholders -- it will be next to impossible to measure its impact on the organization’s mission-critical initiatives.



Make sure to set yourself – and your organization – up for success by involving key stakeholders in the coaching process from the outset, and use their feedback to monitor the progress of the coaching relationship.

With all this discussion about feedback and communicating about expectations, you might be tempted to think that executive coaching is just like “therapy” or “counseling.” It most decidedly is not. Its sole focus is the business, and improving the leadership behavior that promotes business success.

To clarify, I’ll illustrate the differences between coaching and therapy or counseling in the next chapter.



Truth Four:

Executive Coaching is Not Therapy

o understand executive coaching, it’s important to define exactly what it is, and

then define therapy or counseling to compare and contrast the processes.

You’d think that would be a fairly simple task — but it isn’t.

Why?

Because when you search for definitions of “executive coaching” you find all kinds of “ethereal” wording that just doesn’t seem to fit well in an organizational context.

Here are some definitions to illustrate my point:

“Professional coaches provide an ongoing partnership designed to help clients produce fulfilling results in their personal and professional lives. Coaches help people improve their performances and enhance the quality of their lives. Coaches are trained to listen, to observe and to customize their approach to individual client needs. They seek to elicit solutions and strategies from the client; they believe the client is naturally creative and resourceful. The coach’s job is to provide support to enhance the skills, resources, and creativity that the client already has.”

– International Coach Federation

”Coaches should be in the business of giving advice and direction to their clients. Coaches should be experts in life management, decision-making and goal setting. They should tell clients how to better organize

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“… it is not about discovering what you want to be when you grow up. It’s about achieving long-lasting positive change in your leadership behaviors to improve your organization’s strategic business results.”



their time and their lives, which activities and values are worthwhile and which are not.”

– Thomas Leonard, 1998, founder of Coach University

and author of The Portable Coach

Those definitions are all well and good….if you’re trying to figure out what to be when you grow up or resolve other personal issues that are limiting your ability to engage in life’s demands.

But if you’re an executive looking to enhance your team’s performance, achieve mission-critical strategic initiatives, or produce concrete business results, you probably have limited time and patience for such soul searching.

What is Executive Coaching? Here’s a more precise and professional definition of Executive Coaching:

“Executive Coaching is a one-to-one or group developmental process designed to assist business executives, professionals and other highly valued staff members to achieve long-lasting positive change in their leadership behaviors to improve their organization’s strategic and/or business results.”

In other words, the purpose of executive coaching is to make the best even better –for the benefit of your organization and the customers you serve.

What is Therapy or Counseling? Now let’s look at some definitions of therapy or counseling:

“Counseling takes place when a counselor sees a client in a private and confidential setting to explore a difficulty the client is having, distress they may be experiencing or perhaps their dissatisfaction with life, or loss of a sense of direction and purpose.”

– British Association for Counseling and Psychotherapy



“Therapy (psychotherapy/counseling) is a process by which a client and a mental health professional work together to resolve emotional issues or behavioral problems that may be interfering with the person’s highest level of functioning. These problems may stem from past relationships or situations, or they may be the result of a current crisis or disruption in one’s life.”

–Therapy World, www.therapyworld.com/professionals.cfm

Here’s a quick summary to show you the contrast in focus:

Executive Coaching Therapy/Counseling

• Is typically a short-term process lasting 6 to 18 months

• Can be a much longer-term process, sometimes lasting years

• Deals with specific, narrowly defined issue(s) related to a person’s effective leadership behaviors at work, to directly support and improve

organizational results

• Deals with broad issues covering all

aspects of a person’s life

• Focuses on creating lasting positive change in leadership behaviors that improve an organizations strategic and/or business results, dealing with feelings only as they impact business

results

• Geared toward exploring and staying with feelings more fully, especially in

coping with grief, anger and stress

As you can see, the two are distinctly different tools.

http://www.therapyworld.com/professionals.cfm�



What Does the Executive Coaching Process Look Like?

Executive coaching is a concrete 7-step process that matches the executive with the appropriate coach, and then flows through setting ground rules, gathering data, measuring goals, and reinforcing results.

The focus is on individual development within the organization’s context, and all key stakeholders in the process evaluate and reinforce the outcomes.

Let me summarize the most reliable executive coaching process with the following chart:

THE EXECUTIVE COACHING PROCESS

When to Use Executive Coaching Since it’s designed to make your best performers even better, you and your organization can use executive coaching to:

Prepare leaders to adapt to changes in business strategy, direction, or

challenges

Ensure that new leaders hit the ground running

Prepare the next generation of emerging leaders

Ensure partnership

with all stakeholders

in the development

process

Quantify and measure

outcomes against goals determined

by all key stakeholders

Focus on development

within the organization

al context

Determine measurable goals and develop

action plans

Gather feedback from self, bosses,

peers, direct reports and

other stakeholders

Set ground rules (e.g.,

confidentiality, objectives, and

timeframes)

Pair executive

and coach

based on goals and “dialog fit”

REINFORCED EVALUATED CONTEXTUAL GOAL-ORIENTED

DATA-DRIVEN CONTRACTED MATCHED



Reinforce leader behaviors with organizational goals and values

Create high performance teams

Foster an organizational culture of learning, development, and coaching

In the next chapter, I’ll show you why it’s important to carefully consider the candidates within your organization to select those who are most likely to benefit from executive coaching.



Truth Five:

Executive Coaching is Not for Everyone

any leaders are unsure about exactly how to choose the best candidates for

executive coaching.

Why the confusion?

Well it may be because when executives research the question they simply don’t get much guidance.

And even such well-known and respected research studies as the Sherpa Executive Coaching Surveys address the issue this way:

“Half the organizations who use coaching allow managers at every level to participate, while an equal number limits coaching to senior managers and executives.”

How’s that for helpful?

At best, even those journals and professional organizations who write strictly for the executive coaching industry simply conduct their own short surveys and produce basic rank order charts like this one:

WHO GETS EXECUTIVE COACHING?

Title/Organizational Level Frequency of Coaching

Vice-President 1

Senior Vice President 2

Director 3

High-Potential 4

Poor to Mediocre Performers (C or D Players) 5

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In short, never, ever provide executive coaching to associates with performance problems. It’s a horrible investment.



Let me help define and clarify a sensible selection process.

How to Choose the Best Candidates for Executive Coaching Determining the best candidates for executive coaching can actually be a fairly simple process. As a matter of fact, answering just three questions can guide you to a logical decision about choosing your best candidates. Just ask yourself:

1. What’s the candidate’s current position and growth potential for the next 24-36 months?

If the candidate is currently occupying a leadership role and you can predict with some certainty that this role will grow in scope and scale, executive coaching may be right for them.

2. What’s the candidate’s current performance and potential?

If the candidate is performing “above the standard” and/or has the potential to continue contributing as a highly valued associate or the potential to move up quickly (see #1), executive coaching may be right for them.

3. What’s the candidate’s level of motivation and commitment to professional development through coaching?

If the candidate is motivated, willing to embrace change and commit to the process, executive coaching may be right for them.

Revisiting Example 5 on Page 17, the candidates selected for coaching to implement the Six Sigma initiative are a perfect fit. While they are rated “low” or “moderate” in the leadership competencies critical to its success, they are proven leaders with potential because:

• They currently occupy leadership positions which are growing in scope and scale.

• They are performing “above the standard” in other areas, and are highly

valued as contributors .



• They have already demonstrated they are motivated, willing, and committed to their own professional development.

They are not “poor performers.” They just need the extra “nudge” that coaching will provide to quickly develop those critical leadership competencies necessary for the successful implementation of the Six Sigma project.

Poor performers, on the other hand, are those employees who demonstrate little initiative or motivation, fail to correct performance deficiencies when they are identified, and are resistant to change. Those who are just “going through the motions” at work are the last people you should consider as candidates for executive coaching.

Why?

Because they’ve already demonstrated resistance to the development process – and coaching will just be one more thing to resist.

And besides, providing executive coaching to associates with performance problems is a horrible investment. It’s a waste of organizational resources to spend money on non-performing assets. If you do, you’ll only create increasingly negative overall organizational performance.

To that end, it bears repeating: never…ever…offer executive coaching as a solution to performance problems.

With so many critical fiscal responsibilities, you can’t afford the waste.

When considering executive coaching to enhance performance, there’s one last thing to consider: whether the coach will be a good organizational “fit.”

In the next chapter, I’ll show you how to review and chose the right coach to help create the biggest impact on you, your team, and your organization.



The right coach has experience as a business leader. The right coach not only knows the questions to ask but also has the experience and wisdom to understand and “add to” the leader’s response. We call this “Dialog Fit.”

Truth Six:

Coaching Requires a “Dialog Fit”

he success of the executive coaching process is completely dependent upon

selecting the right executive coach, so you must choose wisely.

Choosing wisely requires being clear about your salient criteria for selecting the right coach.

Establishing clear and salient criteria will eliminate any guesswork and give you confidence to make the wisest choice. So let me help you get some clarity.

Separating the Wheat from the Chaff An estimated 40,000 people call themselves executive coaches. Their education may range from online self-study courses to doctoral degrees from major research universities.

Like Forrest Gump’s “box of chocolates,” you have no way of knowing which one you’re going to get.

T



Coaching, like most other consulting, has a low barrier for entry. That simply means that anyone (and I do mean anyone!) can grab a domain name, throw up a website, and, for around $100.00, hang out a shingle and announce they’re in the coaching business.

If you browse executive coaching websites, you might find buttons or banners or graphics touting membership in a professional coaching organization, or certification from some association or other. While some professional associations do “certify” coaches, the value of such certification efforts isn’t exactly clear.

In addition, “professional coaches” themselves often reject the idea of any national or international occupational standards that require measurement against statements of competence.

It’s not surprising, given the low barrier for entry.

And when you look at relevant literature, you’ll come across numerous articles listing the “traits” required of successful executive coaches, including:

Strong interpersonal skills

Objectivity

Intelligence and insight

Ability to communicate feedback effectively

Obviously those desirable traits apply today to almost anybody…seeking any position…in any organization… anywhere on the planet.

Clearly you can’t argue the benefits of such traits, but how would you ever know whether any of your coaching candidates even possess those traits, much less to what degree? Such a list alone won’t do much to help you choose the right executive coach.

When you’re ready to explore the possibility of hiring an executive coach for yourself, your team, or your organization, you’ll want to critically evaluate his or her qualifications and expertise before contracting for services.



The Importance of Dialog Fit One key principle of executive coaching is that the whole process hinges on the partnership between the coach and the executive – who must be matched in terms of goals, drive, and, to some extent, “personal fit.” However, “personal fit” is subordinate to “dialog fit.”

To learn any skill requires acquiring knowledge and deliberate practice -- but knowledge and practice alone do not necessarily lead to mastery. To fully harvest the benefit of learning, a dialog with another is required. Participating in such a dialog allows learners to hone new skills – and be held accountable for their results in a relationship of trust and partnership.

The right coach has experience as a business leader. The right coach is someone who has sat where the leader is sitting. The right coach not only knows the questions to ask but also has the experience and wisdom to understand and contribute to the leader’s response.

I call this “Dialog Fit.”

Although they’ll only be working together for a relatively short time – anywhere from 6 to 18 months – it’s essential for the coach and leader to establish a relationship of “dialog fit.” Then – and only then – should they consider “personal fit” as a second-level criteria – not the primary criteria as is so often the case.

Additionally, the final choice of a coach is an organizational one. The decision should never be left solely to the leader being coached.

Why?

Because executive coaching is about organizational outcomes.

Here’s what you should look for when choosing an executive coach for your organization:



Essential Coaching Criteria The most reputable and effective Executive Coaches most likely to exhibit good “Dialog Fit” have been tempered by BOTH solid education and real-world business experience.

When reviewing potential Executive Coaches, look for the following essential criteria:

At least 10 years of executive-level business leadership experience in a

Fortune 1000 firm, preferably including P&L responsibility, with a…

Formal graduate-level education in the behavioral sciences (a Ph.D. or MS in

Organizational Psychology or Organizational Development is preferred). Other

relevant education might include a graduate business degree, especially if the

coursework required supervised coaching of clients for successful certification. The coach should also have…

At least 5 years of experience coaching VP or Director-level executives in a

corporate environment, coupled with….

Favorable–and verifiable–references from at least 5 current (or former)

executive coaching clients

Yes, there are exceptions, just as there are effective senior leaders who lack formal degrees or successful musicians who cannot read a note of music. But they are just that…exceptions.

Some effective coaches have educational backgrounds in social work or clinical psychology. But keep in mind that therapists are trained to heal the “patient,” and they are (legitimately) concerned with what is wrong, rather than what is right with the person. Their focus tends to be on a personal rather than an organizational context, which can sometimes make achieving “Dialog Fit” a monumental stretch.

Use these guidelines to select your executive coach and you will be serving your organization well.



In Summary

Executive Coaching Can Make a Real Difference to Your Organization

ow that you understand the nature of executive coaching, you’re better equipped to:

Calculate the cost of coaching against real business returns

Identify the issues specific to your business that would benefit from executive coaching

Include those people directly impacted by the organizational changes coaching is designed to produce

Distinguish between executive coaching and therapy, counseling or other “soft” personal development tools

Choose the most promising candidates for the coaching process

Evaluate and select the executive coach best suited to achieve business results

Remember, the purpose of executive coaching is to improve your business results.

Whether you’re looking at ways to maintain your organization’s competitive edge, improve productivity, increase management and staff accountability, develop executive talent, or implement organizational change, the executive coaching process is designed to create lasting, measurable results – and yield a very high return on your investment.

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About

Dr. Robert Denker

ince 2000 Robert Denker, Ph.D. MBA, has been Managing Principal with rd&partners, working with client companies to build and retain executive talent and execute

business strategies with greater clarity and focus.

Rob served in several senior executive and officer positions (with P & L responsibilities) for more than twenty years in world-class Fortune 500 organizations. He has served as a trusted advisor and coach to senior executives in diverse industries throughout North America and Europe. His areas of expertise include:

• Executive coaching

• Executive and key talent assessment

• Succession and talent management

• Change management strategies

He has consulted such diverse industries as financial services, insurance, private equity, consumer products, technology, professional services, not-for-profit, sales & marketing,

manufacturing, healthcare, construction, logistics, and pharmaceuticals to name but a few.

Rob holds a Ph.D. in Psychology/Leadership Development, as well as M.B.A. and B.S. Degrees. Certified in executive coaching, he is also a member of the American Psychological Association, The Institute of Coaching, and holds certifications and licenses in numerous performance and behavioral assessments.

He served on the Board of Directors for The Leukemia & Lymphoma Society and I AM CONNECTED, a not-for-profit group dedicated to the

professional advancement of women in the HR profession.

In addition, he is the Host of the radio show Leadership Leverage.

Visit RDPUSA.com for related articles, interviews, training videos, and resources.

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Chicago Executive Coaching Consulting Services Firm - Think … · 2016-06-01 · Any behavioral changes in the leader, and resulting changes in his or her outcomes, will directly

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