The Executive Coaching Investment

1. The Executive Coaching Investment

2. Use of Executive Coaching around the World Coaching is becoming more popular globally, especially in larger, successful companies. But to what end?

3. 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

4. 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.

5. 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

6. A Successful Process: Getting Tough Our coaching process has been called executive "tough love" • Our process is not negotiable. We will work with those who accept our process, who genuinely want to change • Leaders must fully accept the feedback at face value—they can not selectively accept or reject findings • 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 • Utilize participants throughout the coaching process for objective advice and feedback

7. 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

8. Peers Boss Direct Reports Team Focused Typical coaching processes only rely on one influence, the coach, who is furthest removed from the day-to-day behaviors Coach Coachee . . . 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.

9. Accountability and Follow-Up • Accountability • Our 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 If no one is held accountable, then why should anyone change? Perceived change Perceived change Perceived change

10. 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? -3 -2 -1 0 1 2 3 Less Effective No Change More Effective