Executive Coaching

1. Executive Coaching An HR View of What Works Dr Gavin R Dagley October 2006

2. Research questions • how has executive coaching been used? • how effective was it? • what were the factors that predicted success?

3. Scale • 17 interviews • 1000+ executives • $15.4m spend • manufacturing / retail / corporate services / industrial / local government / government organisations / logistics / financial • “larger” ($1m+) and “smaller” ($200k-) programs

4. Does it work? Overall, how effective has EC been in your organisation? O’all $1m+ $200k- 5 - Outstandingly effective 1 1 - 4 - Very effective624 3 - Moderately effective1037 2 - Marginally effective - - - 1 - Not effective - - -

5. What do executives think? Overall, what have been the participants’ responses to the degree of benefit they received from EC? O’all $1m+ $200k- 5 - Outstandingly effective 3 21 4 - Very effective 1147 3 - Moderately effective 2 - 2 2 - Marginally effective - - - 1 - Not effective - - -

6. What do executives gain? Which of the following specific gains for the individuals have you become aware of that resulted from the EC work? (of 20) strong some Total Style, responses & issues 16 1 33 Communication & engagement 7 9 23 Robustness 6 7 19 Understanding own performance 7 4 18 Understanding org issues & solutions 3 11 17

7. What executives gain less? Which of the following specific gains for the individuals have you become aware of that resulted from the EC work? strong some Total Improved measured performance 2 7 11 Improved work throughput 2 4 8 Improved delegation ability - 8 8

8. What does the organisation gain? Which of the following organisational gains occurred as result of using EC? (all) strong some Total Building talent pool capability 8 8 24 Talent retention & morale 6 6 18 Effective leadership 4 7 15 Cultural change 3 6 12 Team cohesion 3 6 12 Conflict resolution 1 9 11 Performance remediation 3 5 11

9. What are the drawbacks? What drawbacks and difficulties have you experienced with EC services? big some Total Expensive 46 14 Making session time 112 14 Poor translation to behaviours 36 12 Negative perceptions of EC 36 12 Locating good coaches 35 11 Difficulty linking to org performance 19 11

10. Programs & Costs • 9 sessions (4 to 18) • 90-minute sessions (50 to 120) • 7 months duration (3 to 12) • range - $600 for 4 >> $45,000 for 18 • $12,600 per executive ($10k median) • $717 per hour ($488 median)

11. Cost/benefit estimates If you were to make an estimate, overall, how do you rate EC in terms of the extent to which the dollar returns exceeded (or were exceeded by) the cost? O’all $1m+ $200k- Greatly exceeded 2 11 Exceeded 431 Equal 2 11 Less than 1 - 1 A lot less than - - -

12. Are you interested? How much interest do you have in using EC services in the next two years? Strong 15 Some 2 Little - None -

13. What makes it effective?

14. What makes it effective? For each of the following program factors please indicate the relative importance of each using a 4 to 1 scale, with [4] meaning CRITICALLY IMPORTANT and [1] meaning NOT IMPORTANT:(22 factors) Highly skilled coaches 4.0 Rapport and trust between the coach and participant 3.9 Confidentiality of discussions to coach and participant only 3.9 Senior management support and engagement 3.8 Participant engagement and commitment 3.8 Other ethical considerations effectively dealt with 3.8

15. What makes it effective? For each of the following program factors please indicate the relative importance of each using a 4 to 1 scale, with [4] meaning CRITICALLY IMPORTANT and [1] meaning NOT IMPORTANT: (22 factors) ….continued Careful matching of coach and participant 3.8 Sponsor/supervisor support and engagement 3.7 Allowing coaches considerable flexibility to individually tailor program content 3.6 Rigorous coach selection procedures 3.5 Careful participant selection 3.5

16. What factors have less effect? For each of the following program factors please indicate the relative importance of each using a 4 to 1 scale, with [4] meaning CRITICALLY IMPORTANT and [1] meaning NOT IMPORTANT: (22 factors) Participant choice in the selection of the coach 2.8 Formal measurement and reporting processes 2.8 Having a standard structure for coaching programs 2.4 Use of psychometric tools and inventories in the content of each program 2.2 Collation and presentation of EC results 2.2 Having a standard model for the delivery of content 1.9

17. What makes EC effective? 4.0 3.3 2.0

18. Interesting stuff • Defining coaching • Goal-setting • Concern about reporting

19. Fascinating contrasts • Efficacy vs interest • Individual vs organisational gains • Larger vs smaller programs • Value of structure vs measurement & support

20. The bind Complexity & uncertainty Pressure for structure Individual vs organisational benefits EC >> $$ Expensive Strong interest Limited options

21. Hypothesis Extraordinary executive coaching functions in a niche • in which results are difficult to measure • that sometimes produces extraordinary changes • that is otherwise largely inaccessible

22. Foundations Conviction Talent develop >> Org performance Tension The bind Method Options & agendas

23. Best practice Individual development Executives Delivery structures Coaches Relationship Organisational performance Environment Reporting

24. Contact details Gavin Dagley gavin.dagley@bigpond.com PO Box 55 St Kilda VIC 3182 0425 795 675