Is Coaching a Fad?

With so many organizations rushing to develop programs for managers as coaches, is coaching turning into a fad?

A recent presentation sponsored by the Human Capital Institute, and given by Peyton Daniel and Anne Doster of DBM gave the statistics that over 80% of the respondents to their survey used "coaching skills training" at least sometimes, and nearly 70% were using external executive coaches at least sometimes. Now, survey samples are notoriously, so we don't want you to conclude that coaching is, as yet, that prevalent. But could it be well on its way to becoming too fashionable for its own good? The perquisite to go with the corner office? The emblem of the high-potential? The consultant's favorite gig?

Before we dismiss coaching and mentoring as another passing fad, let's look at more closer what current research is showing us about executive coaching.

• Executive coaching is found increasingly on a routine basis for C-level execs, and both less frequently and less often for senior executives; and almost never for non-managers.
  
• The primary drivers for coaching are:
  • Derailed executives
  • Enabling capable executives to achieve greater excellence
  • Supporting the development of high-potential employees
  • Improving team effectiveness
• Executive cite benefits for coaching to include
  • Continuous one-on-one attention
  • Expanded thinking through dialogue with a curious outsider
  • Increased self-awareness, including blind spots
  • Personal accountability for development
  • Effective learning delivered just-in-time
• Coaching failures are linked to
  • Lack of commitment from the client
  • Lack of clear goals and purpose
  • Client too busy to focus on developmental goals
  • A mismatch between client and coach
  • Client's manager is not involved or supporting
• ROI ranges from the value of the coaching investment up to more than 500% depending on study cited
  
• Successful coaching engagements have:
  • Coach evaluation including
    • Coaching methodology
    • Senior-level business, industry and/or functional experience
    • Chemistry with client
    • Measurement system
  • A willing client
    • Open to increasing their self-awareness and enhancing their personal growth
      
    • Entering coaching with enthusiasm, interest and a commitment of time
  • Measure the ROI of all coaching assignments using
    • Achievement of agreed-upon objectives, including performance metrics as appropriate
    • Evaluations by client, clients boss, and coach
    • 360 assessments
      
  • Clear expectations around the process from initial meeting, overall time commitment (typical agreements are 4 to 6 months, twice per month), confidentiality, and management support and involvement

David B. Peterson, in a chapter on Coaching and Mentoring Programs, adds depth to this research report by outlining the major assumptions around effective coaching. His assumptions about positive, proactive coaching are modified and included below.

• People are motivated to learn and grow; the coach's role is to clarify and engage that motivation
• Insight is ever-evolving and should be developed through the coaching process, whether initiated with a current situation or a 360 assessment
• While coach can and does provide feedback, the main goal of the coaching is to enable the client to gather and gain their own insights
• Coaches should be expert in helping people learn how to change and adjust their behaviors to become more effective, with a goal of enhancing ongoing learning and development
• Coaching is about achieving results by working on the areas of greatest leverage and payback.

The executive coaching methodology practiced at Read Solutions Groups is then to provide customized coaching that moves iteratively through the following steps:

• Clarify personal goals, values and motivations
• Develop insights into what needs to be developed
• Establish and agree to measures for success
• Evaluate reasons for and barriers to change
• Explore or chose alternative ways of behaving
• Practice new skills and behaviors
• Develop action plan and measure progress, watching for additional insights
• Ensure that other people and structures are put in place to support progress and ongoing feedback

So, is coaching a fad? Studies, whether focused on feedback from executives, clients or HR, point to solid returns on the investment of coaching when the systems employ recommendations like those above.

Email us to receive references to additional studies on executive coaching.

How do I identify high-potential candidates?

A writer asks,

Sherry, in your article "Developing High Potential Employees", you give a definition of high-potential employee. The problem is that I still don't know how to help my manager's consistently identify who is high-potential and who isn't. What do you suggest?

A High-Potential HR Manager

Well, dear High-Potential HR Manager, I get this question frequently, and always from people like you who are high-potential. The only question is whether they are high-potential in their company.

What you say? The question is whether they are high-potential in their company? Isn't the question whether someone is high-potential or not?

One former boss of mine convinced me of very little, apart from the truth that everyone is a star in some universe; or to put it more plainly, everyone is high-potential for the right role in the right company. Unfortunately, you might suggest that this doesn't help you answer the question. Ah, but it's a start.

The definition I posted in the article you mentioned, says,

What is a high-potential employee? A generic definition is an individual expected to excel at a position X levels above their current role. Companies often make this more specific to their needs, incorporating a specific leadership level, within a particular time horizon, and most importantly, based on the foreseeable needs of the business. High potential employees demonstrate capabilities in the functional requirements of the business and their specific roles (can do), the personal motivation and drive to excel now and in the future (will do), and the behaviors that ongoing delivery of results (how do).

The tricky thing is deciding what your company needs now, and in the future. And then being even more realistic about whether you need those skills, aptitudes, motivations and experience for all senior level positions, or only specific ones. The reality of most organizations is that you need to be developing a talent pipeline that will fill a wide range of roles across differing functions. While you want your heads of R&D, Finance, H&R and the Business Units to all fill comfortable in the same function, the behaviors, motivations and drivers across the functions may be quite different. Your business strategy may be heavily dependent on technological innovation. So you certainly need innovative, creative people in key functions of the organization; but I wonder whether you need that for your, say, heads of Supply Chain or Finance? Or you could have a business strategy with a key focus staying one step ahead of the competitors. Strategic marketing is a key organizational skill; but again, is it critical for all areas of the organization?

So where am I going with this? Be clear on the few cultural competencies that you require of all of your senior management. And then do a reality check, do you have that now?!? Next, look at individuals who are normally high-performers. Could strengths, motivations, and behaviors lead them, with the right experiences, to be a star in some portion of your company's universe? If so, talk with them. Build an agreement about the experiences and development that will enable that person to flourish. You may find that you have more high-potential candidates than you thought.

Looking forward to more questions that I can answer. Send them to me at Sherry@ReadSolutionsGroup.com.

Developing High-Potential Employees

In this article, we explore the role of coaching in the development of high-potential employees and its link to retention of these key staff members.

What is a high-potential employee? A generic definition is an individual expected to excel at a position X levels above their current role. Companies often make this more specific to their needs, incorporating a specific leadership level, within a particular time horizon, and most importantly, based on the foreseeable needs of the business. High potential employees demonstrate capabilities in the functional requirements of the business and their specific roles (can do), the personal motivation and drive to excel now and in the future (will do), and the behaviors that ongoing delivery of results (how do).

Marshall Goldsmith, as one of the world's foremost executive coaches has identified the key characteristics and needs of high potential employees (known as hi-pos) ("Coaching Free Agents" audio presentation). Hi-pos see themselves as free agents running their careers as "ME, Inc.", not limiting themselves to being a corporate employee. Retaining and developing these hi-pos brings special requirements. When dealing with hi-pos as free agents, it is most effective to:

1. Treat the high-potential employee, not as a subordinate, but as a partner in their work and career.


2. Recognize that "team-player" from their perspective means that this is a win-win result.


3. Deal openly with their self-interest.


4. Demonstrate candor in your interactions.


5. Go out of your way to demonstrate flexibility (see Mass Career Customization for more suggestions in this area).

A well-designed and implemented high-potential program include systems for identification, communication about being viewed as a high-potential, moving through clearly defined roles in the organization, mentoring by senior leaders, accelerated development, and continually feedback.

Coaching has the goal of accelerating leadership growth and delivery of business objectives. Adults learn most effectively through a cycle of experience - reflection - generalization - experimentation. A coach, whether an executive coach or the manager, consciously moves the person through these phases. In the case of a successful outcome, no matter how large or small, the employee will learn through receiving positive, concrete feedback in combination with the opportunity to reflect and gain their own insights. Useful questions to begin this dialogue include:

• Would you like to give yourself feedback here?


• Tell me about one new thing you learned about yourself through this project.


• Tell me about the two challenges you faced and overcame.


• What new skills or management muscles did you discover, develop or strengthen through this project?
  
  

When a high-potential employee is placed into a stretch assignment, the opportunity for less than stellar results and even failure are greatly increased. It is critical that the high-potential program provide a sponsor, champion or person otherwise capable of providing a safety net. Failure, or less than expected success is an enormous opportunity for learning. By applying similar questions to the above, the hi-pos can reflect on their experience, identify the strengths that supported them, the areas of growth that are needed, and put in place a plan for developing new habits, behaviors and/or skills.

While the effective focus is on building on strengths, there are often areas that may limit performance now or into the future. Rather than tell people what they did wrong, lead them to their own insights. It is best to start with asking for permission to engage in a discussion on how you might be able to help the person fulfill their potential. Once the issue is identified, it is often best to have the employee develop awareness of how others work and behave, and then to compare what they observe to their own style. Ask the person to pick one specific change and work with them to implement the change.

High-potential employees are strongly engaged in their own development and careers. When you, as a manager, company or coach, work with people to develop their capability and deliver stronger results, they become more engaged, more effective and exhibit higher retention rates.

As a final note, effective ways of working with high-potential employees and those identified in research on Gen Y'ers (see Retaining Young Talent). Perhaps the lesson is that management and leadership skills need to evolve in order to get the best of our people in today's world.

What are your thoughts on effective ways of dealing with high-potential employees and young talent?