Management Training and Executive Coaching
A High Return on Investment (ROI) Combination

An original Firstbiz article
by Joseph Eng

One of the most widely held notions in business is the value of management training. Every dollar invested in management training should yield a healthy return on investment. Sadly, this has not been the case for many companies large and small. A more common experience has been little or nothing to show for the $2500-$5000 invested to train just one manager. Often all that remains is an impressive looking binder of materials and the memory of all the work that stacked up during training.

Why? With the wealth of seminars with name speakers you wonder why so many great ideas never become a reality in Corporate America. Seminars often provide great sources for excellent ideas, materials, and enthusiasm. However, they do not produce the two things most needed for on-the-job results -

• Tailoring ideas to the organization's culture, processes, and people
• Providing on-going mentoring to make new behaviors a way of life.

A better way?
Yes there is.

Management training combined with the emerging practice of Executive Coaching delivers impressive bottom-line results.

A recent survey measuring Return on Investment (ROI) of 100 managers and executives of Fortune 1000 companies who received customized Executive Coaching found Coaching returned an average of six times its cost. Among specific benefits from Coaching include improvement in:

• Leadership effectiveness
• Bottom-line profitability
• Organizational strength
• Top-line sales
• Retaining executives who receive coaching
• Cost reductions
• Quality of products and service
• Overall Productivity

Among benefits to Coached managers and executives are improved:

• Leadership skills
• Conflict resolution techniques
• Working relationships with employees
• Job satisfaction
• Work and life balance
• Working relationships with peers
• Time management
• Organizational commitment
• Relationships with clients

A recent study cited in the prestigious Public Personnel Management Journal found a typical management training program increased a manager's productivity a respectable 22%, but when combined with 8- weeks of intensive Executive Coaching, the manager's productivity exploded to more than 85%!

Coaching works, but it does take time, energy and a personal investment by the Coached individual.

What exactly is Executive Coaching?

The field of Coaching is relatively new. It finds its roots in diverse fields such as: business management, human resources, organization development, sports psychology, peak performance training, adult learning, and clinical psychology.

According to the National Association of Business Coaches, Coaching is a relationship between the Coach and a willing individual inside or outside of an organization. That relationship is built on respect, safety, challenge and accountability. Its purpose is to motivate the Coached individual to be "his/her absolute best and to achieve extraordinary results in performance and in living." (from the NABC Registered Internal Corporate Coach Manual™)

Small Business Coaches generally work with entrepreneurs, small business owners and their management teams in developing a vision and building a more profitable and efficient business.

Midsize Business Coaches work with executives, managers, and owners of companies who have grown to a point where stronger leadership focus is needed as the company struggles to overcome normal growth challenges.

Corporate Coaches often work within larger organizations to increase manager and executive productivity, strengthen leadership abilities and achieve peak performance.

Executive Coaches usually specialize in working with mid- to upper- level executives and owners of companies who desire to accomplish corporate or personal goals more effectively and efficiently.

What kind of professionals
typically use executive coaching?

All kinds--from front line managers to top executives; from home business owners to doctors and lawyers. Coaches can be effective in all the major industries including: financial services, technology, manufacturing, publishing, airlines, consulting, hospitality, professional services, hospitals, oil, and many more.

Why do individuals and
companies work with coaches?

There are a wide variety of reasons why individuals and companies work with coaches. Coaching can help an individual:

• Better focus on vision, mission and personal integrity
• Eliminate the blocks that constrain peak performance
• Clearly define vision and strategy to effectively achieve goals
• Improve leadership skills
• Live life with purpose, passion and integrity
• Maximize strengths and abilities
• Learn to make more money with less effort
• Cope with conflict in a healthy and beneficial way
• Create a business that complements and enhances one's quality of life
• Rapidly accelerates career growth
• Achieve a dynamic balance between one's personal and professional life
• Focus energy in the right direction
• Feel confident in making the right decisions for self, business and family
• Create sustainable change in one's life and work

How does it actually work?

How does a Coach do this? A client interacts with his/her Coach once a week on the phone or in person. The vast majority of clients enjoy the convenience of phone-coaching sessions. Clients bring an agenda into each session, and their Coach helps them examine their issues and helps them create a plan to reach goal-oriented solutions. Since Coaches have ongoing personal contact with their client, they are capable of helping them continually set higher standards.

What should you look for when choosing a coach?

Chemistry. There must be a good chemistry between client and Coach. It also is important to find a coach one trusts and respects and who has a successful track record. For those who are combining management training with Coaching, the Coach needs strong management development skills. Often actual management experience is desirable.

How much does it cost to work with an Executive Coach?

Many Coaches offer a "test drive" before requiring a commitment. Monthly fees for executive Coaching range from $1,000 to $3,000 for a weekly coaching session. While Coaching generally takes place either in person or over the phone, some Coaches use fax, email, and even chat rooms to accommodate schedules of busy executives. Practitioners report that in dealing with out of state clients they often find no decrease in effectiveness using electronic versus face- to-face communications. New technology now makes voice and image coaching possible via computers with small digital cameras.

How long is the typical coaching engagement?

The initial phase of a Coaching relationship usually lasts at least 3 months. Meeting on a weekly basis this gives 12-13 opportunities to interact and accomplish meaningful goals. A biweekly schedule translates into a six-month engagement. Some Coaching firms report the majority of clients work with them weekly for an average of 6-8 months, Some engagements last as long as two years.

How is coaching different from consulting or counseling?

Coaching has become a very hot topic in the last 3-5 years. Now it seems like everyone is calling themselves a "Coach." Good Coaches, however, understand the differences between coaching, consulting and counseling.

Most counseling is centered on healing mental and psychological issues. Generally the patient comes into the counseling center or hospital to be treated for his/her "problem." The psychologist or therapist generally diagnoses the patient and prescribes a treatment plan. In Coaching there is no diagnosis; no "doctor-patient" relationship. The coaching relationship is founded upon the belief that Coaching is a partnership of equals. A coach does not prescribe a treatment plan, Instead, client and Coach develop a plan together. The solution as defined in Coaching comes not from delving into the past but focusing on the future. Great Coaching helps one maximize strengths while developing growth areas.

Most consulting relationships are also based on the "expert-student" model. The consultant is the expert. The client is the student. Consulting is generally all about having the right answers. Coaching is all about asking the right questions. In Coaching, the Coach is not viewed so much as the expert, but as a partner. The Client is the expert on his/her life and business. The Coach will focus on learning about the client and will solve problems more effectively and efficiently by asking the right questions.

How to Lay the Foundation for a Successful Coaching Experience

Since ROI (Return on Investment) is an important consideration to justify an investment in time and money for Coaching, it's best to begin by defining clear business goals to improve profitability. Such goals might include: renegotiating better terms with vendors; improving cash flow by improving accounts receivable collection rates; increasing inventory turns; reducing scrap, or improving first-run quality. Often there are many such "low hanging fruit" projects that were never started or never finished. Accomplishing just a few of these goals during the coaching process provides ample return on investment. Look for a return of at least 300% over 12 months.

In subsequent meetings develop realistic action plans to implement goals over a 3-6 month period. Action plans should break the tasks into manageable two-week mini goals that are challenging but not overwhelming.

Review progress with your Coach at each session. He/she is your accountability partner. This alone is a powerful force for accomplishing goals. This process provides the time, opportunity and laboratory environment to work through a variety of technical, organizational and people issues related to goal achievement.

Making it Happen

Help yourself find the time to give to this effort. A key issue is time management. Effective time management skills are essential to help you accomplish new tasks and focus your priorities. This is where Coaching can provide the edge that often makes the difference between success and failure.

Focus on your passion. Look for ways to recognize and feel your growing success. Change is often painful, frightening and confusing. Here is where you and your Coach work on personal growth skills that define success.

At the end of a successful Coaching/ management training experience two positive outcomes occur:

• You will see a solid ROI as a result of accomplishing your goals.
• You will have grown in maturity and confidence in both management and life skills.