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The Executive Coaching Investment

The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Page 1: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

The Executive Coaching Investment

Page 2: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Use of Executive Coaching around the World

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Coaching is becoming more popular globally, especially in larger, successful companies. But to what end?

Page 3: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Why Most Coaching Doesn't Work

We estimate that companies will spend about $100 million on Executive Coaching globally in 2004. For most companies, this will be a very poor investment. Why?

• Unclear Strategy: Coaching alone may not solve the individual issues, if they're a symptom of culture, compensation or other drivers of behavior

• Unfocused Investment: Should coaching be aimed at those with the highest potential? Those struggling the most?

• Unreliable Process: Many coaching processes have absolutely no research to prove their effectiveness

• Uncertain Measures: There are rarely quantitative measures in place to evaluate whether behaviors have changed

• Underwhelming Accountability: It's uncommon for both the coach and the executive to be held accountable for change

• Untrained Coaches: Most coaches have very little experience in actual coaching; too much in assessing behavior

Page 4: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Making Coaching Work

It's not difficult to make coaching effective. Most successful processes rely on using a few key levers.

• Behavioral, Not Psychological: Leaders’ behaviors change not through a psychological assessment of why they engage in the behavior, but through reinforcing new actions.

• No Excuses: Our process has been described as “Tough Love for Executives.” Senior leaders are focused on what needs to change and on their taking accountability for this change.

• Forward Looking: Don't penalize executives for past behavior, reinforce changing for the future.

• Lean Design: Focus on identifying and changing the vital few behaviors that most impact long-term business results.

• Team Focused: Peers and co-workers provide the greatest opportunities for consistent input and actual change

• Guaranteed Results: You expect measurable results; therefore, you should not pay unless measurable change occurs.

Page 5: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Behavioral, Not Psychological

The vast majority of individual leadership issues are behavioral and can be changed through re-direction and reinforcement

Using a psychological approach (excessive testing, analysis) is usually inappropriate because:

• Too much focus on understanding "why," too little on actual change

• Psychological tools often provide an inappropriate crutch for bad behavior — "The report is late because I am an 'ESTJ' "

• Most poor workplace behaviors are not due to psychological issues; they are behavioral and correctable

Executive coaching should

• Assess behaviors using those closest to the coachee -- his or her peers, direct reports and boss; using interviews, not surveys

• Use a "derailer" assessment to identify behaviors that are likely to hold back otherwise successful executives

• Provide a detailed summary of the issues and what should change

Page 6: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Utilize participants throughout the coaching process for objective advice and feedbackUtilize participants throughout the coaching process for objective advice and feedback

A Successful Process: Getting Tough

Our coaching process has been called executive "tough love"

Leaders must meet individually with all participants to:• Thank them for their input• Apologize for any offensive actions in the past• Review the positive and negative findings in the report• Share their action plan and ask for input and support

Leaders must meet individually with all participants to:• Thank them for their input• Apologize for any offensive actions in the past• Review the positive and negative findings in the report• Share their action plan and ask for input and support

Leaders must fully accept the feedback at face value—they can not selectively accept or reject findingsLeaders must fully accept the feedback at face value—they can not selectively accept or reject findings

Our process is not negotiable. We will work with those who accept our process, who genuinely want to changeOur process is not negotiable. We will work with those who accept our process, who genuinely want to change

Page 7: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Focusing on the Vital Few

Effective coaching concentrates on a few, critical behaviors and emphasizes multiple, small action steps• Focus when assessing behavior— Link everything to the business strategy: Which behaviors are truly

differentiating for future leaders at your company?— Interview about these vital few capabilities; triage the significant needs

from those that can be corrected in the future• Focus during coaching— The coachee should select only one or two things to change; complete

those and then move forward with more— Let them help set the agenda for change; do not dictate how this will

happen— Continue coaching those behaviors until the new behavior becomes

natural, not just until the first signs of progress

Page 8: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Team Focused

Typical coaching processes only rely on one influence, the coach, who is furthest removed from the day-to-day behaviors

. . . which ignores those who can best observe behavior and give feedback.

Hewitt's process actively involves peers, direct reports and superior(s) in the feedback and coaching process.

Coachee

Peers

Direct Reports

Boss

Coach

Page 9: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Accountability and Follow-Up

If no one is held accountable, then why should anyone change?

AccountabilityOur research shows that even a little follow-up can positively impact perceptions of change

Coachee • Accept the process• Practice new behaviors and actively seek

feedback on performance• Follow up!

Coach• Regular follow-up and quarterly

measurement of progress• Provides expert input, but more

importantly, manages the process

No Follow Up

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A Little Follow Up

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Consistent Follow-Up

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Perceived change

Perceived change

Perceived change

Page 10: The Executive Coaching Investment. 2 Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful

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Measurement and Accountability

Measuring Change

• Peers, direct report and boss should gauge if change occurs• We measure quarterly to evaluate progress and reinforce if change

has happened• Our final measure of change, at the 1 year point, is on the +3 to -3

scale shown below:

Do you feel that Bob has become more effective (or less effective) in Behavior X during the past 3 months?

Less Effective

More Effective

No Change

-3 -2 -1 0 1 2 3