Executive and Individual Coaching
Bella Vita Consulting
Midlothian, VA 23112
(804) 744-0992
How
boards can ensure success for the new CEO
You've hired a new leader.
If you think your work is done, think again!
by
Sharon Machrone
and
Linda Dini Jenkins
The search is finally over. After months and months of meetings, post mortems on the departing CEO, pinpointing the critical needs for a successor, considering inside candidates, meeting with search firms, conducting what seems to be an unending round of interviews-not to mention hammering out all the details of compensation and bonus structures-you've finally found the perfect CEO for your organization.
Congratulations! You've just spent tens of thousands of the company's dollars to make all this happen. Now that the new CEO has arrived, the board's job is finished, right? Well, not quite. Actually, it's only begun.
Now it's imperative the new executive has every chance to become wildly successful on the job-and as quickly as possible. But, you say, "I and all my fellow board members have invested so much in this selection, we're sure we've got the right person. Shouldn't she be able to hit the ground running?"
While this is a natural expectation (or a hope), the board should ask itself if it's a completely reasonable one. Wouldn't even the most gifted new executive need a little orientation getting assimilated into the organization?
This is where the relatively new phenomenon of executive coach can help. Consider this scenario: An international leader in widget production, your company has been losing ground steadily to the competition in recent years. Fortunately, your new CEO is an expert at putting lagging companies back on top. Unfortunately, this particular individual's expertise is in the US market, and he has very little experience dealing with the broader international marketplace.
To help your new CEO get up to speed in this area, you offer the services of a coach who specializes in international business, and if possible, one familiar with the widget industry. Result? Accelerated learning in the area of foreign trade and investment, and a chance for all board members to rest a little easier in the knowledge that your new leader now is on a fast track to success.
What? Can't find a coach who understands both the international marketplace and the widget business? Look first for a coach with broad international business expertise and augment that help with a subject matter expert to serve as a coach on the specific topic of widgets, as needed. And remember that the product expert could well come from inside the organization.
Coaching
is not just for jocks any more
No doubt you've heard the analogy: If a professional athlete can benefit
from a personal coach, why shouldn't a professional executive? And it's
true. But let's take a look at what professional coaching is.
First, let's consider what coaching is not. It is not "training." Training tends to be more general and less personal. Coaching, on the other hand, allows the client to receive information from a personal and focused point of view. Everything relates in the context of the client's job and the very specific areas he or she is trying to address.
Coaching is not therapy. Some people see the line between personal therapy and coaching as being unclear. While personal issues may certainly be touched upon in the executive coaching process, the focus should definitely be kept on job content, leaving personal issues for another type of professional.
Also, a coach is not the same as a "mentor." Mentoring usually requires a long-term commitment and connection between the mentor and the individual. Coaching is usually a short-term relationship, and coaches don't deal so much with the specific how-to's of the job as much as they do with expanding the executive's awareness of how he or she can be most effective in the organization.
How
the game is played
So, now that the board and the new CEO agree that establishing a coaching
relationship is a great idea, they face a number of thorny issues.
First, who retains the coach? While points of view may vary in the coaching community, our experience has shown that the coach should be retained by the CEO and paid for by the company. The relationship is strictly between the coach and the CEO. Any reporting back to the board by the coach is done only at the request of the CEO, who is the client.
For example, when the directors want an opinion on how the new CEO is handling things, board members should ask the CEO directly, observe the response and offer feedback. If the board isn't getting the information it thinks it should, it has brought to the surface an issue between the board and the CEO, not between the board and the coach. Although the conversation may be about how the coach is helping, it is not about asking the coach questions that should be answered by the chief executive. Think doctors and lawyers: The coach abides by the same rules of client confidentiality.
Of course, a CEO coach can-and should-accept input from the board, which may say something like: "It's been three months, and we haven't seen any activity in the international widget operation." In our opinion, the coach would then do two things: First, suggest that the board make the inquiry directly to the CEO. Second, tell the CEO that a concern has been raised, encouraging him/her to go to the board directly to discuss their concerns.
In fact, one of the things a coach should do is to help open up channels of communication between the two parties, helping the chief executive and directors design ways of talking to each other, requesting help or support, and voicing concerns or ideas. A good CEO coach can also help the CEO forge relationships with the rest of the executive staff. The coach can ask questions of the staff that the CEO might find difficult to ask initially, gathering information and impressions from the executive staff that might help the CEO to manage each individual.
In some cases, a coach might even offer assessments of certain executive team members. These are things, however, that should be negotiated up front with the CEO client. The nature of the relationship between the coach and the CEO must be clear to everyone the coach talks to.
How
to find a good coach
Perhaps the CEO has someone she has worked with in the past who can be
retained if the primary issue is initial assimilation or general organizational
issues. But if the coaching focus is going to be more product- or function-oriented
focused, the board might want to do some research and locate a list of
experts. But the final decision will ultimately be the CEO's.
There are lots of good coaches in the marketplace today, and several reputable coaching organizations even have Web sites and can make referrals to someone in your particular area of need. Get referrals by asking other directors or senior executives if they've had good experiences with professional coaches. Be sure to extend the offer to let the CEO find his or her own coach as well, though if you're involved in the selection process, remember, once again, that the executive, not the board, is the client. The board is the conduit and facilitator, and the company the bill-payer. Using this format, everybody wins.
Coaching-What's in It for You?
For the board
While the board's role is to help its CEO be successful, your new chief executive probably isn't going to be comfortable turning to you for advice, counsel and guidance right away. Having a coach gives the new executive another avenue for exploring ideas, addressing immediate problems, planning and prioritizing, all with a level of independence and discretion that might not be available otherwise. A coach can help the chief executive accelerate his or her assimilation into the organization and get right down to the business at hand, i.e., managing and watching over the bottom line. And that's good for you.
For the CEO client
It's lonely at the top, and even the most experienced professional can use a sounding board. A coach can help gather information from staff relating to hopes and expectations and a coach can also help the new CEO tweak his/her leadership style, matching it with the needs of the organization. A good CEO coach can also provide another set of eyes for looking ahead and revealing potential problems and opportunities, helping the client CEO stay focused and on track, especially during those critical early days.
For
the company
Any change in leadership
can be very disruptive to an organization. Coaches can help CEOs design
the conversations and communications needed with the general employee
population, thus minimizing uncertainty and second-guessing at all levels.
Once the message goes up and down the organization that the new CEO respects
open communication, and is willing to admit that he or she doesn't own
the truth, productivity and morale will certainly rise quickly and the
company will begin operating on the highest professional plane.
This article appeared in the December 2000 issue of Directorship.
©2008 Bella Vita Consulting. All rights reserved.