Management Potential and Organisational Performance - Essay Example

Executive Coaching as Management Training and Development Tool Michael Pett MD Presentations Today's competition and its growing pressures continuously fuel the demand for more effective business leaders. It falls on them to set the tone and style for the business or organization, hence, to effect shifts in meeting changes and expectations. To this end, leaders must themselves change and be prepared to continue to change. There is a common misconception that those who reach up the ladder no longer need personal development; but this is seldom the case. Personal growth opportunities for people at this level are said to be rare. In fact, the idea of using an executive coach was looked upon as a weakness for many years.1 The higher up people got in a company, the more responsibilities they were supposed to handle without any outward sign that they were in distress. In the same vein, they were supposed to be the image of one serene and calm on the outside, "despite paddling like hell underneath."2 This paper looks into coaching, particularly executive coaching as a management training and development tool, considers its strengths and weaknesses, and presents the organisational context in which it is most appropriate and effective. Real examples of best practice are also provided through four cases. Strengths and weaknesses Coaching initially referred to remedial situations where one gets to be coached because of under-performance or unsatisfactory behaviour. Now, coaching usually refers to developing people within an organisation to be able to become effective workers.3 It uses a variety of tools and techniques from a wide range of theoretical backgrounds including organisational theory, occupational psychology and psychometrics, learning and counselling. Depending on the needs of the client, these tools are used in different situations and with different clients. Common tools, models and techniques used in coaching include Kolb's learning cycle, the GROW model, 360 degree feedback, psychometric instruments, goal setting and emotional intelligence models.4 Executive coaching is only one among so many types of coaching, to include performance coaching, skills coaching, developmental coaching, and career coaching.5 According to Charles Lauer, 6 executive coaching is the most widely used, and is the key to improving a leader's self-awareness as it includes emotional intelligence. Executive coaching is a process through which executives are helped to improve their performance and personal effectiveness while reducing stress. It facilitates the identification of inner resources, reveals the need to learn new behaviors to enhance performance, and challenges underlying beliefs and values.7 A leader who develops a coaching mindset and skills is believed capable of unlocking the potential of his or her people, and therefore of creating the next generation of inspirational leaders.8 Participation then in an executive coaching program would offer the rare opportunity for an executive to stand back and to take a fresh look at his experiences and assumptions of a lifetime.9 Carol.Braddick10 would call coaching one of the many practices that can reasonably be linked to high performing companies in terms of raising standards. In fact, executive coaching draws out individual potential by raising self-awareness and understanding, and facilitates learning and performance development that create excellent leaders.11 Executive coaching is now a widespread development tool being used by organisations across the United Kingdom and the United States.12 To John Mason, 13 executive coaching as a professional intervention will save very significant amounts of money because one may not have to remove an under-performing executive, or recruit, and then train a replacement. Its popularity nowadays is based on its strength as a management development tool. First, it gives direct one-to-one assistance and attention that fits into timeframes and schedules of those participating in coaching where they get to see quick results. Second, it supports learning and development activities especially in assisting the transfer of learning in the workplace. Coaching also provides a 'safe and objective haven' to discuss issues and provide support for managerial decision-making. Finally, coaching can be used for targeted development interventions in workplace changes so individuals can adjust.14 Despite its strengths, coaching however has its weaknesses as a management development tool. The model given by J. Jarvis 15 implies that not everyone is coachable - meaning, not convinced that coaching can help change conditions. Coaching is not appropriate apparently for one who does not believe in its effects. Each executive is said to have his own style that he believes in, certain attitudes that he keeps, and certain levels of experience.16 Before deciding to coach, one should find out first, following the model. Figure 1 shows how - Figure 1. Decision tree. (J. Jarvis 2004). Coaching as an intervention is not always appropriate. Peter Hawkins17 deplores that fact that those lacking skill may be found in couching yet try to commercialise the practice. More so if they are even backed up with elaborate organisations that cater to many clients. According to Hawkins many of the professional bodies are developing professional standards requiring coaches to have some form of supervision, but then developing clear models of practice for coaching supervision and quality training programmes for them has lagged behind. Also, there has been the danger of coaching supervision being much promoted yet very little practiced 18 The time to train for executive coaching could be an issue as it requires extensive training and supervision. The coach has to understand the psychological aspects of coaching and be confident and competent to deal with these. Coaches for executives especially require one-to-one supervised training by a clinician in the instruction and practice of use of validated tools and techniques.19 There is also the tendency to associate weakness to being coached. All the 'big people,' however, are said to have their own coaches, mentors, 'gurus', or counsellors. Indeed, to Chandler & Ellen,20 having an executive coach is nothing to be ashamed of. For one, the executive is often called upon to give keynote speeches, chair crucial meetings, develop strategy and people, focus on succession planning, handle crises and deal with internal and external pressures.21 What would make executives want to coach or be coached The answer, according to Stowell,22 is if their compensation is tied to their coaching performance. There is fear in this, however, if it would only mandate coaching opportunities but not guarantee quality coaching interactions between executives and others. Accordingly, coaching is more worth-while for executives if they are provided with one-on-one help in how to coach. Stowell23 would recommend a coaching-the-coach relationship similar to the one-on-one help executives receive in public speaking, press relations, financial matters, or other skills that are not automatic is recommended. Such approach, he says, can help the executive in fulfilling the coaching role, instead of just adding a new item to one's job descriptions. Organizational context and best practices Findings from the Training and development 2004 survey of the United Kingdom show that line managers are the most likely group to deliver coaching.24 The survey also finds that the most common recipients of coaching are junior and middle managers (64%). Coaching is being used for the development of staff at many levels of the organisation, according to the Chartered Institute of Personnel and Development. (CIPD).25 This validates Carol Braddick's 26 finding that it is executive coaching or business coaching that is directly associated with effective organizational performance. According to 1-to-1 Coaching School,27 the annual spending for 2004 on executive coaching in the United States is estimated at $1 billion; and the number of UK organisations using coaching between 1998 and 2003 has risen to 96%. Meanwhile, the Australian Institute of Management says 70% of its member companies hire coaches, and the Executive and Business coaching industry is growing by about 40% a year.28 The benefits of business coaching were first researched and published in the late 1930s through to the 1980's.29 Coaching literature focused oninternal coaching in organizations, with managers or supervisors acting as coaches to their staff between the late 1930's and the late 1960's. In the 1970s, coaching apparently had grown and made marks in psychological counseling. After a decade in the 1980s, coaching obviously began to score as a tool for intervention in organisations. 30 There are several studies that show a link between smart people practices and business performance.31 Accordingly, an example of best practice is to inspire all managers and employees to do their best; creating a challenging, satisfying work environment. Another one is to encourage management to strengthen its connections with people at all levels of the company, and to keep senior management actively involved in the selection and development of people. Three examples of couching situation and coaching results recorded by Braddick32 are described below - Case 1: John O'Brien, UK executive coach. The business of global consumer products were restructured to create autonomy for country teams accountable for local marketing budgets and plans. The global head of marketing was accustomed to top down centralised structures with authority over country marketing activities. This individual's style was in direct conflict with the business aims of the restructuring. However, the individual was highly coachable. Coaching Result: Through coaching, this executive developed the influencing skills needed to collaborate with local marketing managers. For example, the client met with country and regional marketing managers to enlist their support in changing his or his work style. The business considered both the implementation and outcomes of restructuring a success. Case 2. Noel Hadden, Learning & Development, Deutsche Bank, UK. Division. The situation used well designed processes for selecting coaches, matching coaches to client needs, agreeing coaching contracts and evaluation results. Coaches, managers and coaching clients meet periodically during coaching engagements to discuss progress. All members of a sales team undertook individual coaching during a period of intense market competition. Coaching Result: Significant improvement in business performance for the team at a time when more competitors are entering the market. The team members and their manager attribute the business performance improvements directly to the coaching programme, particularly to its intensiveness and relevance to the particular sales and competitive challenges. Case 3: Mary Davis, US Executive Coach. Members of a financial services product development team received coaching to assist them in working more effectively. Coaching Result: Savings were realised from the focus on the "optimal" products and development efforts and giving these full attention for early delivery; savings were also had from cutting the number of development projects; and accelerated revenues from launch were completed far earlier than historical record of introduced new products. The following is a more comprehensive case told in the first person account to showcase processes used by the coach in each problem. John Mason33 claims this resulted in jacking the earnings of the company from $1.5 Million/month to $11 Million/month in 5 months - but the more important result is behavioral - Case 4: L. Merger and Acquisitions, Management Culture Clash. A large financial company added a successful new mortgage company to expand services and increase profits. A significant problem developed when the management style of the smaller company needed to be altered to fit the larger company's management style and its corporate culture. One young, highly regarded, division manager found this to be a very difficult task. His skills, energy, and expertise were needed for the over-all success of the merger. I was recruited and hired to offer "Executive Coaching" to this key manager. At the time I started, the division was producing 1.5-2 million dollars of business per month, where three times this was expected. In the course of my coaching we worked on many areas to improve his skills of managing, communicating, strategic focusing, and personal self-care (necessary because his stress from the merger had caused him to be less productive, effective, and motivated.) In fact, his anger about the change in his responsibilities, who he reported to, and how the paperwork accountability had been altered from his previous routine, was so overwhelming to him that the VP of Human Resources feared his anger might exploded into violence or a harassment law suit. We worked one time weekly and made progress in the first two months. The Executive Coaching began with assessments that uncovered his style and motivations. We built a program which started with stress management and self-care. (I wanted him to be able to survive the changes with less anger and frustration.) We worked on his communication skills, particularly listening. I offered strategies for getting more positive responses from his manager and his reports. We developed a plan for increasing his departments business, with an emphasis on what he needed to prioritize for success. In addition, we worked out an anger management program that was tailored to his personality and the situation in his company. His attitude improved and his performance began to move in the right direction. More corporate changes slowed our progress in the third month, but not nearly to the degree that had existed when we began. We made some necessary revisions to our program to create even better results. By the fifth month, the performance of his department had increased to over 11 million dollars of new business per month. This was almost twice the expectation of his department. His focus, communication, and attitude were so much improved that [Human Resources] HR decided that he did not require as much supervision, freeing up even more time for his job responsibilities. John Mason34 warns that executives and managers have developed certain strategies for leading and managing which can require significant adjustments after mergers. This is because cultures can collide, causing reduction of performance and productivity. He also said that there are some key management personnel that may be more susceptible to this type of concern. There may even be a conscious or unconscious process of sabotage that can cost one's company in major ways. According to John Mason,35 one is to prepare for these situations and remain vigilant. As earlier mentioned, each executive will have his own style, attitude, and level of experience; therefore each requires a unique tailored program for success. John Mason36 suggests that simple group training may seem cost effective, but will often miss the desired results. It is now apparent that the behavior ofa company's manager or leader is crucial to the entire organization.It sets examples that communicate more than anything else.A leader's greatest tool in leading others is obviously the combination of his personality and behavior. Whatever is deficient with him as manager, coaching may help to fill this gap. When done well, coaching may accelerate the development of managers and leaders and in turn redound to the benefit of the organisation. Executives can now look up to executive coaching for a personally tailored development process to improve their performance. As it is, businesses are now open to the idea of coaching for their manpower. On the other hand, managers may now turn into business coaches to join the groups coaching for others. This is part of an opportunity to influence the next evolution of what is called management potential. More than that, they can influence an upgrading of organisational performance - for the good of themselves and for the good of society. All four cases given have shown insights into how this could come about. Endnotes 1 R. Chandler and J. Ellen, 'The Importance of Executive Coaching.' Available at: http://www.ezinearticles.com/The-Importance-of-Executive Coaching&id=111702 [Accessed January 28, 2006]. 2 Ibid. 3 'Coaching.' Chartered Institute of Personnel and Development. (CIPD). cipd.co.uk) Last updated April 2005. Available at: http://www.cipd.co.uk/subjects/lrnanddev/coachmntor/coaching.htmIsSrchRes=1 [Accessed 19 January 2006]. 4 'Coaching Tools, Techniques and Templates.' About.com) Available at: 1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 22 January 2006]. 5 'Some certification issues.' Graduate School of Master Couches.' about.com.c) Available at: http://humanresources.about.com/gi/dynamic/offsitehtmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 20 January 2006]. 6 C. S. Lauer. 'Introduction to Executive coaching.' Institute of Executive Coaching. Available at: http://www.iecoaching.com.au/ [Accessed 18 January 2006]. 7 D. Borzomati, 'Executive Coaching: An Overview,' ezinearticles.com. Available at: http://www.ezinearticles.com/Executive-Coaching-An-Overview&id=93777 [Accesses January 28, 2006]. 8 C. S. Lauer (n.d.) 9 D. Borzomati 10 C. Braddick, 'The ROI (Return on Investment) of Executive Coaching: Useful Information or a Distraction' Part 2. The coaching and mentoring network. Available at: http://www.coachingnetwork.org.uk/ResourceCentre/Articles/ViewArticle.aspartId=79 [Accessed 20 January 2006]. [This article was first published at www.ukhrd.com in November 2003]. 11 'International best practice in executive coaching.' falconbury.co.uk. Available at: http://www.falconbury.co.uk/event.phpevent=147 [Accessed 20 January 2006]. 12 '1 to 1 coach training.' 1to1coachingschool. Available at: http://www.1to1coachingschool.com/ [Accessed January 22, 2006]. 13 John Mason, L. 'Coping with Mergers: Executive Coaching: Case Study.' Available at: http://www.ezinearticles.com/Coping-with-Mergers:-Executive-Coaching:-Case-Study&id=93151 [Accessed January 28, 2006]. 14 'New Coaching at Work magazine and online resource.' The Human Relations and Development Website. Cipd.co.uk. Available at:http://www.cipd.co.uk/_caw/default.htmIsSrchRes=1 [Accessed 19 January 2006]. 15 J. Jarvis, (2004) Coaching and buying coaching services. A guide. London: CIPD. Cited in: 'Coaching.' cipd.co.uk. c) Last updated April 2005. Available at: http://www.cipd.co.uk/subjects/lrnanddev/coachmntor/coaching.htmIsSrchRes=1 [Accessed 19 Jan 2006]. 16 Ibid. 17 P. Hawkins. 'Coaching Supervision.' Excellence in Coaching. The industry guide for coaching best Practice. November 2005. Available at http://www.bathconsultancygroup.com/PDF/coaching%20supervision2.pdf [Accessed 22 January 2006]. 18 Ibid. 19 'Evidence Based Approach.' Achieving Behavioural Change with validated Coaching Techniques in the Workplace. About.com (Includes extracts from new text book 'Behavioural Coaching' by Zeus and Skiffington -published and copyrighted by McGraw-Hill, New York. Available at: http://humanresources.about.com/gi/dynamic/offsite.htmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 18 January 2006]. 20 R. Chandler and J. Ellen (n.d.) 21 Ibid. 22 C. Stowell. 'Executive Coaching: What Makes Us Want to be Coached' Available at: http://www.ezinearticles.com/Executive-Coaching:-What-Makes-Us-Want-to-be-Coached&id=81848 [Accessed January 28, 2006]. 23 Ibid. 24 'Coaching.' Chartered Institute of Personnel and Development. (CIPD) 25 Ibid. 26 C. Braddick. 27 '1 to 1 coach training.' 1to1coachingschool. Available at: http://www.1to1coachingschool.com/ [Accessed January 22, 2006]. 28 Ibid. 29 'Benefits of Business Coaching and some case studies.' Introductory Coaching Notes. through to the 1980's. humanresources.about.com. 30 Ibid. 31 C. Braddick 32 Ibid. 33 L. John Mason 34 Ibid. 35 Ibid. 36 Ibid. References '1 to 1 coach training.' 1to1coachingschool. Available at: http://www.1to1coachingschool.com/ [Accessed January 22, 2006]. 'Benefits of Business Coaching and some case studies.' Introductory Coaching Notes. Through to the 1980's. humanresources.about.com. (Includes Extracts from coaching text book 'The Coaching at Work Toolkit' by Zeus and Skiffington - published by McGraw-Hill. 2003). Available at: http://humanresources.about.com/gi/dynamic/offsite.htmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 18 January 2006]. 'Case Studies.' The Change Team. Available at: http://www.thechangeteam.co.uk/casestudies.htm [Accessed 20 January 2006] 'Coaching Tools, Techniques and Templates.' About.com) Available at: 1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 22 January 2006]. 'Coaching.' Chartered Institute of Personnel and Development. (CIPD). Cipd.co.uk. Last updated April 2005. Available at: http://www.cipd.co.uk/subjects/lrnanddev/coachmntor/coaching.htmIsSrchRes=1 [Accessed 19 January 2006]. 'Evidence Based Approach.' Achieving Behavioural Change with validated Coaching Techniques in the Workplace. About.com (Includes extracts from new text book 'Behavioural Coaching' by Zeus and Skiffington -published and copyrighted by McGraw-Hill, New York. Available at: http://humanresources.about.com/gi/dynamic/offsite.htmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 18 January 2006]. 'International best practice in executive coaching.' falconbury.co.uk. Available at: http://www.falconbury.co.uk/event.phpevent=147 [Accessed 20 January 2006]. 'Maximizing the Impact of Executive Coaching: Behaviour Change, Organizational Outcomes and ROI.' The Manchester Review. 2001. 'New Coaching at Work magazine and online resource.' The Human Relations and Development Website. Cipd.co.uk. Available at:http://www.cipd.co.uk/_caw/default.htmIsSrchRes=1 [Accessed 19 January 2006]. 'Some certification issues.' Graduate School of Master Couches.' about.com.c) Available at: http://humanresources.about.com/gi/dynamic/offsitehtmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 20 January 2006]. 'Some misconceptions about coaching.' HR Coaching News. About.com d) (Extracts from new book 'Behavioural Coaching' by Perry Zeus and Suzanne Skiffington - published by McGraw-Hill 2004). Available at: http://humanresources.about.com/gi/dynamic/offsite.htmzi=1/XJ&sdn=humanresources&zu=http%3A%2F%2Fwww.aaa-coaching-partners.com%2FManager_as_Coach.html [Accessed 18 January 2006]. Borzomati, D. 'Executive Coaching: An Overview,' ezinearticles.com. Available at: http://www.ezinearticles.com/Executive-Coaching-An-Overview&id=93777 [Accesses January 28, 2006]. Braddick, C. 'The ROI (Return on Investment) of Executive Coaching: Useful Information or a Distraction' Part 2. The coaching and mentoring network. Available at: http://www.coachingnetwork.org.uk/ResourceCentre/Articles/ViewArticle.aspartId=79 [Accessed 20 January 2006]. [This article was first published at www.ukhrd.com in November 2003]. Chandler, R. and Ellen, J. 'The Importance of Executive Coaching.' Available at: http://www.ezinearticles.com/The-Importance-of-Executive Coaching&id=111702 [Accessed January 28, 2006]. Clarke, R. (2000) A study exploring the link between EI and stress in front-line police officers, unpublished MSc dissertation, Goldsmiths College, University of London. [Cited in Braddick 2003]. Hawkins, P. 'Coaching Supervision.' Excellence in Coaching. The industry guide for coaching best Practice. November 2005. Available at http://www.bathconsultancygroup.com/PDF/coaching%20supervision2.pdf [Accessed 22 January 2006]. Heathfield, S. M. 'Tips for Effective Coaching.' About.com d). Available at: http://humanresources.about.com/od/coachingmentoring/a/coaching.htm [Accessed 18 January 2006]. Jarvis, J. (2004) Coaching and buying coaching services. A guide. London: CIPD. Cited in: 'Coaching.' cipd.co.uk. c) Last updated April 2005. Available at: http://www.cipd.co.uk/subjects/lrnanddev/coachmntor/coaching.htmIsSrchRes=1 [Accessed 19 Jan 2006]. John Mason, L. 'Coping with Mergers: Executive Coaching: Case Study.' Available at: http://www.ezinearticles.com/Coping-with-Mergers:-Executive-Coaching:-Case-Study&id=93151 [Accessed January 28, 2006]. Lauer, C. S. 'Introduction to Executive coaching.' Institute of Executive Coaching. Available at: http://www.iecoaching.com.au/ [Accessed 18 January 2006]. O'Neill, M. B. (2000). Executive Coaching with Backbone and Heart: A Systems Approach to Engaging Leaders with Their Challenges. Jossey-Bass ISBN: 0787950165. Skiffington, S. and Zeus, P. (2000). The Complete Guide to Coaching at Work. McGraw-Hill Publishing Co. ISBN: 0074708422. 184 pages. Stowell, C. 'Executive Coaching: What Makes Us Want to be Coached' Available at: http://www.ezinearticles.com/Executive-Coaching:-What-Makes-Us-Want-to-be-Coached&id=81848 [Accessed January 28, 2006]. Read More