Measuring the Impact of Coaching

1. Measuring the Impact of Coaching Rick Woodward Director, Learning & Development ….now we have gone to all this effort ….has it made any difference?

2. Global Performance Managementrequired improved coaching • Global process launched in 2005 • Multi-rater feedback (360o) • Quarterly coaching discussions • 6 Leadership Qualities (including Talent Management)

3. 800 plus team leaderswere trained in coaching • 1 day highly interactive programme led by Performance Associates • Launched in USA and Europe • Based on GROW model • Inspiring and impactful

4. But did it have any impact? • Level 1 evaluations: enthusiastic • “Best course I have ever taken” • “Amazing experience” • “Simon is a great trainer” • Level 2/3 evaluations: encouraging • “I now ask more than I tell” • “I schedule regular coaching sessions” • “I use the GROW model”

5. We commissioned an independent level 4 coaching impact study • Peggy Parskey – a leading expert in Workplace Measurement conducted the analysis • She ‘e-surveyed’ 224 team leaders and 202 team members • She interviewed 30 team leaders – some strong supporters, some not! • She confirmed that her results were statistically significant and robust

6. We made 3 major findingsabout coaching • Coaching significantly improves performance • Coaching training positively impacted business results • Coaching has much more impact when reinforced by the leader’s manager

7. Coaching significantly improves performance Team members who received frequent coaching (blue bars) were significantly more likely to report increased productivity and effectiveness than those not receiving frequent coaching (maroon bars) % Strongly agree + agree “I don’t think coaching builds strength as much as it unleashes it.” (Team leader Interview)

8. 92 63 60 33 52 22 52 Coaching training positivelyimpacted business results • Team leaders reported significant business improvements from their coaching. • They estimate that the training accounts for 10% of the business results attained. Average % improvement in business result area # out of 224 respondents citing the business improvement

9. Team leaders explained how coachingimproved business results We saved $117,000 in decreased overtime My coaching empowered a maintenance team to take ownership. They repaired a machine part instead of replacing it and saved $2,800. We put a trade show together in only 2 months – it normally takes 4. The customer applauded our long term vision and forward thinking plans. My team delivered $7 million savings against a target of $4 million – and the quality of work was better.

10. Team leaders linked coaching toperformance improvement My coaching reduced frustration in the team. We made a $1 million turnaround on a production asset. I believe that 30% of that came from the coaching. My coaching has helped the team work smarter and focus on realities. Now we concentrate on what makes best sense to earn the business. I challenged my team to increase productivity and waste utilization. Productivity increased 10% and waste utilization improved by 21%. I coached a deputy about her interpersonal skills which not only improved her relationships internally but also helped her to save $30,000 from a vendor over project errors.

11. Team leaders mentioned other benefits from coaching I coached a regional manager about how to handle a difficult employee. The individual now knows our expectations and has an improved attitude. I managed to retain all my key staff despite re-organization and very difficult times. With my improved coaching skills my team members advance projects on their own leading to improved productivity and reduced costs. Coaching has made me more confident as a team leader. I am learning to listen instead of talking. I now coach everyday and my employees are more engaged.

12. Coaching has four times more impactwhen reinforced by the leader’s manager Business improvements were four times more likely when the leader’s manager mentored and supported coaching efforts. For example, 25% of mentored team leaders reported a 20% increase in productivity against only 4% of those who were not mentored. # of total population reporting >20% improvement in each area “Before I talked to people every day. Now I coach people every day. Employees are more engaged. I literally saw the walls break down.” (Team leader interview)

13. But it wasn’t all good! • Respondents believe coaching is a high priority and that their team leaders expect them to use these skills. • Only 50% feel their team leaders support or reinforce their coaching efforts. • Only 29% feel Senior Leaders model coaching behaviors. % Strongly agree + agree

14. How do we reinforce thevalue of coaching? • Continue with coaching training • Incorporate coaching into leadership skills training • Extend training with ‘Helping Others Succeed’ • Reinforce coaching in team intervention • Tough Conversations Training • Coaching Health Care sales professionals • Changing the culture of key sale teams • Strong vocal leadership from CEO • Tom Falk frequently reinforces coaching in Senior Leader meetings • Talent Management objectives include coaching

15. CEO supports coaching as a part of talent management Tom Falk Kimberly-Clark CEO & Chairman ‘Deliver timely, accurate, focused feedback and coaching, including quarterly discussions, to ensure desired job performance and no surprises at the year end assessment ‘ Reinforces the link between coaching and improved results Includes coaching reminders in employee communications Cascades an annual objective to all team leaders with a coaching component

16. Coaching with impact • Coaching does have a measurable business impact • It requires leadership commitment and time and enthusiasm • It is much more effective when reinforced by senior leaders • It may be a key component of employee engagement