
Risk Assessment Quiz Question:
What CDR Risk Factor does this cartoon depict?
(Those of you with low Amusement & Hedonism scores may wish to ignore...)
(Answer: Upstager)
Leader rating and development programs are among the hardest to sell with ROI. A dollar spent on assessment may save three dollars in retention. A dollar invested in training may lower recruiting costs by five times that amount. The good news is that better-developed leaders produce superior results, thus increasing compensation, and lowering turnover. Word gets out, and top talent begins pursuing the company rather than the other way around.
Top Management will generally be committed to implementing the strategic changes to transform the enterprise and increase shareholder value. Jay Cross of the Internet Group reminds us that the top-line can be just as important as the bottom-line. Top-line = sales, revenues, out-surviving the competition, increasing market share, building brand, staying in the game and holding on long enough to score, reinventing the business. Executives focus on two things: strategy and outfoxing the competition.
The Saratoga Institute found that the key factors separating high-performing companies from those that try to compete are:
Leadership development programs are valuable because they impact all of the above.
Questions to Answer
Prior to implementation, specific issues should be addressed to prepare an organization for ROI justifications post-implementation. These a priori issues include the following:
We can extrapolate behavior changes into measurable business once the above are codified. Look for significant differences in performance ratings—from Time 1 to Time 2. These differences might be in new product development, new clients/business, teams working together in more productive ways, increased client satisfaction and retention, etc. All of the aforementioned are potentially value-laden and will assist in making the Business Case.
Next Steps
Once the questions bulleted above are answered, an ROI research plan can be designed for determining the business value of the leadership development program.
It is easy to put a dollar-figure on a hard benefit (e.g., new clients) but difficult for a “soft” benefit (e.g., improved morale). If an item simply can’t be quantified, it can be included in a nonfinancial analysis and ranked among the financial impacts. Further, two similar departments, one that participates in the program and one that does not, can be compared on relevant variables. A customer survey might also be advised to capture perceived differences.
~Kim
2009 Sherpa Executive Coaching Survey
“Executive coaching means: regular meetings between a business leader and a trained
facilitator, designed to produce positive changes in business behavior in a limited time frame.”
- who coaches are—trained facilitators (not consultants, counselors, trainers or mentors.)
- what coaches do—produce positive changes in business behavior.
- when things happen—on a set schedule with a limited time frame.
In 2007, the European Foundation for Management Development adopted this definition in communication with its members in seventy countries.
Executive coaches, as a general rule,
- do not share their own experience (as do mentors),
- do not give advice (as do consultants),
- do not impart specific knowledge (as trainers do) and
- avoid personal issues. (the role of a counselor or therapist or life coach)
I disagree with most of these “general rules” especially when we are using an assessment like the CDR and feedback.
In the Sherpa Executive Coaching Survey, I disagree with their position that “in person” coaching was better than by telephone. Personally have had great results using the telephone when using CDR —what are your thoughts?
Matt M. Starcevich, Ph.D.
Matt –
Thanks for submitting this link to the survey and for sharing your insights.
I also disagree with most of the 2007 European Foundation for Management Development’s Executive Coaching Guidelines you sited.
Specifically, executive coaches may share experiences – while this needs to be limited – sometimes real world stories can be useful. Next, when using assessments and having clear insights regarding a persons strengths, risks, vulnerabilities, challenges and gathering information about their performance, it is the role of the coach to explore and sometimes offer ideas and potential advice when appropriate. Last, knowledge can be shared though the coach certainly does not want to become a talking head so to speak.
I do agree that executive coaches need to stay away from personal issues and if a client is obviously having significant emotional or personal problems, it is time to suggest they talk to a counselor/therapist or EAP advisor.
Again Matt – thanks for sharing!
Hopefully, the above nuggets will spark your interest in participating in this blog by discussing your issues, questions and sharing your success stories as well. We welcome (CDR) certified coaches, other executive coaches, leaders and those with a professional interest or calling in talent and leader development.
Have a great day!
Nancy