It is not just about succession in the family business. Of course, that in itself is quite a challenge. How do we, as first or second generation owners, prepare our sons and daughters to take the reins of the business? Do they really want? Are they competent enough to do it? These questions and many more often dominate his thoughts as he contemplates stepping aside and allowing the next generation to take over. There are numerous issues and challenges that private family businesses face when it comes to succession. If you fall into that category, email [email protected] and receive a sample guide on “Family Business Leadership Succession.”
If it’s not a family business, you’re still not home free. You face many similar issues and challenges focused on attracting and retaining top talent to ensure your succession plans to continue the business are successful. It’s not just about “Who will be the next CEO?”.
Succession planning should be a critical core initiative in your strategic planning process for every key management position within your company. I have written numerous articles in the past on coaching and mentoring skills. These are very definitive skills that are imperative for successful leadership. But, advice and mentorship from you and your managers, even if they have been trained, and most are not, may not be enough.
Many of the top quartile players featured in the PARs recognize this challenge and are turning to a process (now an industry) that was once considered a fad or highly suspect with respect to the benefits provided; executive coaching. Executive coaching is quickly becoming recognized as a way to complement and enhance the succession process at most executive levels. Although most executive coaching has occurred at the CEO and chairman level, companies are now beginning to realize the value that is provided in all executive management positions. In fact, coaching now occurs at many levels of the organization, including front-line sales management.
Executive coaching may soon enter the field of “best practices” in this business century. Just a few years ago, many corporate executives dismissed the idea of coaching as a fad or psychological jargon meant to erode the bottom line. The common objection was, where is the ROI, the return on investment? Even those most progressive companies that welcomed innovation and creativity still considered it a luxury expense.
That is not the case today. Companies are now beginning to realize that there really is a solid ROI for executive coaching. You see, one-on-one executive coaching is not the same as attending a leadership seminar for five days and paying $5,000. In my opinion, leadership seminars and retreats, follow-up coaching, and accountability can be considered simply entertainment.
Executive coaching provides a tremendous return on your investment. Jay MacDonald of Bankrate.com recently reported that according to a 2001 Metrix Global study of a Fortune 500 company, executive coaching returned more than $5 for every $1 spent, 529 percent, in significant financial and intangible benefits to the company. . When the financial benefits of employee retention were factored into the mix, the ROI was nearly eight to one, 788 percent.
The growth of executive coaches from 1995 to 2006 has increased by five hundred percent. Today we have over 10,000 executive coaches doing business in the US.
Executive coaching is about you
Executive Coaching is personal. It’s about developing a personalized program to help you meet the many challenges you face every day… efficiently in your professional life, but balance in your personal life is a contributing factor to success.
Coaching is different from consulting and it is different from having a personal advisor on your team. An executive coach believes and demonstrates that the power is in the questions and not in the answers. You as a client are recognized for your skills and the success you have generated. You have a strong vision for your business and much more knowledge about that business than your coach.
The goal of the executive coach is to challenge and stimulate your thinking…cooperatively explore various options…allowing the executive to make the final decision on the appropriate course of action.
Listening — The Most Critical Skill
As you provide the focus of the challenge to be addressed, the coach listens…using accumulated business experience and training, direct open-ended questions, and relevant observations to facilitate the development and exploration of potential options for the first or next step. Remember, the power is in the questions.
Once you reach that crossroads, a critical element of the training process comes into play…accountability. Poor execution is the biggest cause of failed initiatives. Even initiatives developed with vision and good planning cannot overcome poor execution.
The coach must introduce accountability into the process by asking for specific timelines for actions and defining desired results. This is a significant differentiator. Very often, a senior executive, and CEOs in particular, have no one to hold them accountable. Even middle managers can shirk responsibility for results. A good coach will not allow that to happen. The growth and development of individual leadership skills is based on a commitment to accountability and action.
Why should a company consider executive coaching?
The answer to that question is simple: in most cases, what is good for the individual is also good for the company. When one needs help separating the forest from the trees, they usually find the forest within company boundaries. When one makes decisions from a position of stress, one discovers that stress is usually attributed to the requirements of the job, and the relief of stress generally allows the work to be done better, faster, and with much more enthusiasm.
The higher you are in the management hierarchy, the lonelier the decision-making base becomes. Regardless of your experience, you can use a third party whose future is not based on a decision or an action. You can use the trainer as a sounding board for a concept that may seem silly or embarrassing, that even your most trusted insider is better off not knowing about initially. Sometimes hearing yourself explaining an issue, defending a position, or just brainstorming provides the kind of clarity that is often missing from your normal day-to-day thought process.
Executive coaches are not business consultants; they are not psychotherapists who will help you solve emotional problems. An effective coach will focus on one thing: improving your performance as a leader. This is not an easy task because they must effectively help him help himself by guiding him to make the most of his natural abilities and finding ways to improve or fix his weaknesses.
A good coach will make sure you stick to your commitments, behave like an adult, and otherwise stay out of your own way. Many coaches, myself included, may request that the executive allow them to interview the management team to gain a perspective on leadership within the organization that is not particularly biased by the personal opinion of executives.
Coaching is about success, not failure
Coaching is not reserved for problem managers. He is often sought after by top performers whose organizations value his potential for growth. Regardless of your motivation for hiring a trainer, it is important to keep the following guidelines in mind:
Establish ground rules
1. Confidentiality —- A coach must observe client privilege similar to what attorneys practice. The exchange of information with senior management must be approved by the person receiving the training. Remember, coaching is about success, not failure. If a client cannot be coached, the coach is required to cancel the arrangement.
2. Expectations —- Individual goals should always be aligned with corporate goals. This is rarely an issue, but both parties need to be clear about their expectations.
3. Communication —- Confidentiality of reference, however, the collection of information is often necessary. Interviewing members of the management team may be required, but must be approved in advance.
4. Objectives —- Objectives are set during the initial training call as pre-call preparation work is discussed. Focusing on weaknesses and behavior modification is usually part of this process. Goals are rarely related to revenue or profit.
How to get the most out of training
Once you have hired a trainer, the following principles will increase your desired results and ROI.
1. Tell your coach what to ask of you and what you need to move forward.
2. Report (email or fax) weekly.
3. Tell him what really isn’t driving you or what’s holding you back.
4. Tell him how to recognize and encourage him: We all have our special needs here.
5. Ask him how he perceives his image and how strong he is as a customer.
6. Accept their requests and TAKE ADVANTAGE vs. endurance.
7. Ask him what he has done to make changes in the quality of HIS life.
8. Point out what he does well for you and encourage more of it.
9. Do not tolerate anything between yourselves; clear up any misunderstanding immediately.
10. Be thankful you have a coach (part of your thankful attitude).