Over the past two weeks, I have discussed leadership development, both in terms of its prevalence in Ottawa private sector organizations, as well as its Return on Investment (ROI) benefits. Today, I will talk in depth about management coaching, as it is arguably the most popular leadership development (LD) activity currently used within this arena. In particular, I will discuss what coaching is, provide an overview of the ROI of coaching to the individual and close with an overview of some of the critical question you, or others in your organization, should ask before engaging a management coach.

What is Coaching?

Last week, I used the following definition of management coaching: "a short- to medium term relationship between a manager or senior leader and a consultant (internal or external) with the purpose of improving work performance" (Underhill, McAnally, & Koriath, 2007). At its core, coaching is a positive process designed to enable the strengths of the individual while allowing areas of development to be recognized. Usually, some form of assessment (e.g., psychometric testing or 360-degree feedback) lays the foundation for the coaching work. However, in some cases, the organization may prescribe desired areas of development for the coachee. In practice, arguably the most popular form of management coaching involves one-on-one sessions between the coach and the 'coachee'. These sessions can occur face-to-face, over the telephone, or through webcam. Email correspondence often supplements these sessions to allow 'real-time' check-ins to occur.

The most effective coaching relationships are client-driven, because what works for the coach may not work for the client (e.g., coachee) in his or her situation. Thus, the role of the coach is to ask the right questions to get the coachee to think differently about certain challenges they are facing rather than "telling them what to do" or producing an off-the-shelf solution. Considerable research and experience has shown that engaging clients as part of the solution maximizes the possibility of their long-term success.

ROI to the Individual

Last week, I talked about why LD (and coaching by extension) is of value to an organization. Today, I will talk about the benefits of engaging in this activity for the individual client:

a) Opportunity to engage in fire prevention versus fire fighting – The modern manager is in a constant state of flux given the current organizational and business realities, and decisions often need to be made very quickly. This whirlwind of activity creates tremendous pressure and, consequently, managers rarely get the opportunity to engage in an important aspect of their role, which is to think strategically. Many clients have indeed noted a powerful benefit of working with a coach is the relationship requires them to set time aside every week, or month, to discuss and think about the 'bigger issues' that are affecting their job. As one of the pre-eminent authorities on coaching remarked, "the value of pushing a busy manager to be more reflective on a regular basis should not be underestimated" (Kilburg, 2000).

b) Opportunity to brainstorm – As the old saying goes, "it is lonely at the top." As an example, although brainstorming and teamwork are common vehicles utilized by employees to figure out some of their work challenges, this is a luxury that is not as readily available (or at least, it may not be perceived to be) for the manager. For example, managers may not feel comfortable sharing their uncertainty with their team, their peers, or their supervisors, as they may be concerned they will be viewed as 'ineffective.' This leads to a certain feeling of isolation within an organization, which can be self-imposed. Having a 'trusted advisor' to sort through these issues and act as a 'sounding board' is enormously valuable to the executive, both in terms of raising their self-awareness as well as finding the answers they need by 'talking through' their challenges.

c) Opportunity for honest feedback – The higher an individual ascends the corporate ladder, the less there is an opportunity to receive open and honest feedback. It is difficult to ask co-workers and team members for direct information on performance, as they may not feel comfortable sharing the 'absolute truth.' Therefore, managers may not have an opportunity to hear about their potential development areas or, conversely, areas in which they are flourishing. Bringing in an external coach allows a mechanism for gathering this information to occur, such as via 360-degree feedback or psychometric/personality assessment.

d) What got you here won't get you there – Borrowing the classic phrase from Marshall Goldsmith's book on leadership (2007), the reality is that the things that made someone successful in an employee role (e.g., functional or technical skills) will not necessarily translate into success in a managerial capacity, as now they need to get the best out of their team rather than themselves. There are countless examples of top performing employees who struggle mightily when they are thrust into a management role. Although it may be assumed that leadership and people management skills are 'common sense', this is not the case. Overall, coaching plays a crucial role in helping develop these skills, through increasing their own self-awareness and helping individuals recognize that their view of the world may not be shared by others. Thus, coaching supports the manager in leveraging the strengths of the organizational talent pool by engaging with each individual team member in a way that matches his or her needs.

Important Questions to Consider

Once an organization has decided that management coaching is right for them, where do they begin? Indeed, there are several crucial questions and issues that need to be addressed to maximize the opportunity for a successful coaching relationship. Here is a partial list of things to consider:

a) Clarity of purpose – Essentially, what is the goal of the coaching assignment for your organization? Often, many organizations (and coaches) get involved without truly understanding these expectations. Therefore, it is essential, or highly recommended, to work out an 'Accountability Contract' that outlines the roles that each party (e.g., coach, client, and corporate client) will play in this engagement. Recent research by the American Management Association (AMA, 2008) showed that the clearer the reason a company had for embarking on a coaching program, the better the programmatic results.

b) Who receives it? According to a survey conducted by the AMA, the three most common groups to receive coaching include high potential employees, problem performers and executives. However, as with any LD activity, it is important to consider the message being sent to the rest of the organization if coaching is only being provided to one of these groups. For example, if coaching is only given to the top performers, this may be quite de-motivating for the rest of the company. Conversely, if it is only used to address 'problem employees', it may be viewed quite negatively, and may carry a stigma that will be difficult to discard at a later date. Thus, the potential implications of utilizing this type of development activity on the corporate culture should be considered before moving forward.

c) Credentials? The field of coaching currently does not have any universally accepted qualifications or credentialing process. Although this may sound troublesome, interestingly, research suggests that qualifications are the lowest rated item of concern for organizations when selecting an external coach (with previous and similar coaching experience rated number one; Leedham, 2005). However, when faced with an endless selection of seemingly strong candidates, what are the most important differentiators? To answer this question, I would refer the reader to the AMA global study on coaching (http://www.amanet.org). In their review, they picked 10 common 'selection criteria' for coaches and examined whether they had a significant impact on future market performance. Some of the criteria that they looked at included coaching certifications, accreditation, recommendations from a trusted source, university degrees in a related field, etc. Of these, only THREE had a significant statistical relationship with market performance:

1) Business experience

2) Consulting experience and

3) Having a Ph.D.

Although the first two have been widely viewed as being important in the past, the last criteria may seem somewhat surprising. However, as mentioned by the study authors, 'one possible reason for this is that Ph.D.s bring a level of expertise to a field that has very low barriers to entry" (pg. 24). Based on the above, it appears that these three factors are the most important when it comes to maximizing the ROI of coaching in terms of the bottom line.

Conclusion

Engaging with a management coach can bring tremendous benefit to an organization. However, as with all LD activities, it is crucial to take the time to think through how this activity fits within the broader talent management strategy of an organization. Furthermore, finding the right coach for the client and the client's situation will also go a long way in obtaining the results desired. I hope this article has provided some additional insight into the coaching field for those who have been contemplating undertaking such an initiative or piqued the interest of those who have not given it much consideration.

In closing, developing people is the most important thing an organization can do and finding effective and empowering ways to positively impact individual and team performance is an essential component of true success. Good luck in your journey!

Craig Dowden, Ph.D.

Managing Director

André Filion & Associates - Ottawa

(613) 230-7023

References

American Management Association (2008). Coaching: A global study of successful practices. (This report is available on-line at: http://www.amanet.org/)

Goldsmith, Marshall (2007). What got you here won't get you there. Hyperion.

Kilburg, Richard (2000). Executive coaching: Developing managerial wisdom in a world of chaos. Washington, DC: American Psychological Association.

Underhill, B.O., McAnally, K., & Koriath, J. (2007). Executive coaching for results. San Francisco: Berrett-Koehler Publishers Inc.

To read more Business Matters articles from André Filion & Associates, click on: http://www.ottawabusinessjournal.com/businessmatters18.php