“I want a raise.” With the ink barely dry on her contract and less than a year of tenure at Morgan Stanley, the young Asian woman plopped a thick stack of paper on her supervisor’s desk. “What’s that?” he asked.  With the confidence typified by the post-80s generation in China, she proceeded to lay forth an explanation of how she had researched the salaries of her peers, conducted a comparative analysis, and concluded that she was underpaid and undervalued. After all, she was a graduate of one of the finest universities, an extraordinarily talented and aggressive professional, well deserving of a fast-track promotion.  Taking a risk, her supervisor looked at her with a wry smile and stated firmly, “I’m not going to give you a raise based on this; you have to prove yourself.” Surprisingly, the risk paid off.

This moment became a splash of cold water in her face, sparking a realization which led to reflection on the value of work, which led to her staying with the job, which led to a more rewarding professional experience.  Two years later she got her raise. In the meantime, she had been in touch with her peers, most of whom had already burned out in their careers, pushing themselves forward without regard for merit or commitment, making demands and having those demands met by supervisors fearful of losing new talent. While their careers had crashed and burned, she took a learning moment and modified her approach. Her supervisor had become an effective coach whose push-back framed a learning point that would give her the balance she needed. This scenario, or something like it, is being played out in executive offices around the world in 2007.

A New Generation, Culture or Both?

Some would argue that in 21st century international business, age trumps nationality, and any understanding of how to coach Asian leaders must begin with an awareness of the generational changes sweeping the globe. Fortune magazine’s May 2007 article, “Attracting the Twenty-something Worker” presents the new work demands laid forth by Generation Y. A wave of media attention has portrayed baby boomer children as being exigent and flexible. The case in Asia is similar, though not so simple. Fast Company’s June 2007 cover story, “China’s New Creative Class” notes the emerging blend of youthful innovation and more traditional Chinese culture.

The business coach entering today’s global marketplace is challenged to address new dualities in business and culture. In Asia in particular, a radical shift toward business is blending with, but not eliminating, traditional values. The coach must meet clients in a new virtual space, which, as they say at the opening of the original Star Trek, takes us “where no man (or woman, or coach) has gone before.” The traditional Asian veneration of age as wisdom is being counter-balanced by a wave of upstart entrepreneurs. The ancient value of working for the public good is being challenged by freewheeling competition. In the midst of this revolution, what are the implications for leadership and for the field of coaching? Here are some ideas to get you started:

Four Points for Coaching Asian Leaders

  1. Get to know the ‘Emperor or Empress’; look before you leap.
    In terms of age and generational differences in Asia, highly educated professionals in their 20s and 30s working in a multi-national organization tend to be more outspoken, outgoing, and open to change than their predecessors. They admire the Western management style, whereas their parents’ generation, now in their 50s and 60s, followed a more traditional Chinese work ethic.
    In previous generations, it was typical to work very hard, be loyal to the organization, and not challenge authority. Among other influences, Confucianism was central to the belief system of the Asian psyche. These days, because of China’s ‘one-child policy,’ sometimes the child of the family has become the ‘Little Emperor.’ He has often been told by his parents that he is a genius. Sought by the best companies and headhunters, the Emperor or Empress may challenge authority constantly, dismiss organizational loyalty, and work only in the areas that foster personal advancement.
  2. Understand emerging Asian business and adapt your approach.
    The emergence of Asia as a dominant force in the world economy, with China at the helm, is rapidly transforming the culture of business. In turn, tools for coaching global leaders must be brought up to speed. Despite the Morgan Stanley tale, it’s not all about tempering the ambitions of young Asian business upstarts. In a recent report by Development Dimensions International (a firm leading in leadership talent and selection) entitled “Leadership in China: Keeping Pace with a Growing Economy,”1 a principal finding was that “more than one-half” of leaders are “inadequately prepared for their roles in the new economy.”  Critical skills found lacking were the ability to motivate others, build trust, retain talent, and lead high-performance teams. Generic as these terms may sound, they point to a gap in Asian leadership.

    Whether confronting the implications of age or culture, a balanced coaching approach is important. With little emperors or empresses who have grown up to become your clients, for example, it is important to:
  3. Develop a hybrid model for Asia meets the West; flip the model for the West meets Asia.
    In the West, the land of WYSIWIG (what you see is what you get) and ‘tell it like it is,’ a coach’s direct criticism might be welcomed by the client as being just the right medicine. In the East, ‘face’ is highly valued. It is more important not to say point blank that someone is wrong, but rather to offer options to the benefit of the individual. In the hybrid approach, you:

A 2006 survey entitled “The Dream Team: Delivering Leadership in Asia” by Korn/Ferry International,2  one of the world’s leading providers of executive human capital solutions, polled more than 300 senior executives as to what makes a business leader successful in Asia. In response to the question “Should a Western business leadership model be replaced in Asia by an Asian business leadership model?” 35.5%  affirmed that “No, globalization warrants a model that is neither Western nor Asian, but includes elements of all best practices.”

In the final run, the most successful global coach must both become a hybrid catalyst for the coaching process, and encourage the client to adopt a hybrid East-West approach for leadership. In Chinese culture, there is a fine balance that must be carefully dealt with to ensure that the right connection is made. When the coachee asks for advice, the coach should be careful about providing suggestions. The idea should not be ‘this is my advice/these are my answers for you’ but rather ‘these are different options’ and offer resources or point to best practices.

  1. Keep your focus on the client.
    Even more important than being culturally aware in the new Asian business world is to work with openness to the reality that every person on the planet has a unique background and personality. Don’t make any assumptions; try to understand the leader. Don’t assume that just because the leader is Asian he or she will have an indirect communication style. Don’t assume that young Asian leaders are all petulant children; the continuum of personality is broad and varied in every age bracket. Leaders come in all sizes and shapes. Asians aren’t always of the same ethnic background. For example, in the Greater China region, there are 56 cultures and ethnicities in Hong Kong, the mainland, and Taiwan.

    Finally, the hybrid cultural and generation approach must always make the coachee the center of the conversation. It is about how the coach can help the coachee to reach his or her goal. Once the core data is in about the coachee, including 360-degree feedback, body language, perspectives, values, culture, and background, the coach’s role involves mirroring and serving as a guide for moving forward. The coach is a neutral presence who stays positive and helps the client to keep looking into the future. With the foundation of a ‘hybrid,’ the coach serves as an important bridge for action and success in the challenging new realm of global business.

This article first appeared in Business Coaching Worldwide (Fall Issue 2007, Volume 3, Issue 3).


References:

1 Leadership in China: Keeping Pace with a Growing Economy, 2005 page 10, finding 4; Development Dimensions International Inc. Pittsburgh, Pennsylvania.

2 “The Dream Team: Delivering Leadership in Asia” 2007 Economist Intelligence Unit and Korn/Ferry International, page 4; Korn/Ferry: Los Angeles, Singapore, Shanghai.


Maya Hu-Chan

Maya Hu-Chan is an international management consultant, executive coach, author, public speaker and leadership development educator. She is the co-author of Global Leadership: The Next Generation.

Business coaching, like much else in South Africa, was isolated from mainstream professional development due to international restrictions during the years of apartheid. Thus, it is only in about the last five years that coaching has sprung to prominence in South Africa.

However, as might be expected, many of the problems and inequalities from the past remain. In 1994, South Africa held its first democratic presidential election. Although Nelson Mandela—after 27 years of imprisonment—became president, the demographic imbalances created by 50 years of dictatorial white supremacy still hang heavily on the country. In this context, coaching in South Africa faces daunting challenges. At the same time, coaches have unique opportunities to significantly engage and intervene in the on-going process of transforming the country from a racial tyranny into a free, open and democratic society.

South Africa is a land of enormous diversity. Of the 11 official languages, the main ones include English, Afrikaans, Zulu, Xhosa, Tswana and Sotho. The variety of languages reflects the country’s wide ethnic and cultural differences. Language can also represent a minefield of cultural and power politics, since it was used in the past to promote minority racial groups and suppress the majority. The white population, who are still the main beneficiaries of coaching, tend to be monolingual, or, at best, bilingual (English and Afrikaans). Africans, on the other hand, commonly speak not only English, but several African languages as well. The choice of language in professional settings is often viewed as a reflection of past power dynamics, and must be negotiated with sensitivity and tact.

In a country in which racial differences were the main driving force of daily life for so many years, it is inevitable that color still plays a major role in public discourse and personal sense of identity. This is a potent issue to which coaches must be highly sensitive, and they must learn to navigate these delicate waters with flexibility and skill.

Coaches in the developed world would probably be startled to discover how often, both in private conversation and in public debate, the issue of color predominates. The main identifiers are obviously “white” and “black.” But in South Africa, there is a third category, defined by a term that western societies would regard as offensive or unacceptable. “Colored” refers to mixed-race individuals, most of whom so define themselves. They are predominantly Afrikaans-speaking. These racialized categories are a source of personal, educational and business friction and misunderstandings. Thus, for coaches, there are minefields to negotiate when dealing with either personal or professional issues.

For me personally, this represents an unusual opportunity to be part of the changing landscape in a fledgling democracy. In other more privileged and wealthier societies, the coach probably does not encounter such raw personal hurts and structural imbalances; here, open and frank discussion is gradually dismantling them. In this sense, it is an exciting time to be a coach in South Africa, working with individuals and leaders at the cutting edge of this crucial transformation.

Multicultural and diversity issues

Difference—of gender, race, culture, language and education—creates huge challenges in any workplace. Emerging from its traumatically divisive past, South Africa is in the early stages of trying to work with these complexities and its own unique burden of history.

As currently practiced, coaching is viewed as a privilege far beyond the hopes of all but an elite few. This presents an ethical dilemma. Previously privileged executives are still the ones who benefit from all that coaching offers. The irony is that many who would also benefit are working in the same organizations, but as “previously disadvantaged” (i.e., black men and women), they may not yet qualify for coaching. Often they are not employed in sufficiently senior executive positions to qualify; with coaching they might be.

In South Africa, most organizations remain subject to male culture and assumptions. Corporate culture continues to be dominated by white male norms, language and behavior. Although women have made serious inroads through the glass ceiling and into the boardroom, most South African organizations still reflect the culture and values of a male point of view. Women face complex and difficult challenges in the workplace.

Ironically, one place where women are beginning to feel equality is in South Africa’s parliament, which is predominantly black and 50% female. However, women still face disempowering behavior and stereotypes from both female and male colleagues at work, regardless of their occupational field.

Research and development

Important academic research is underway in South Africa. A growing number of masters and doctoral students have recently completed, or are in the process of completing, current market research projects, and their papers are circulating worldwide.

Some of the difficulties in the marketplace stem from the lack of enough qualified, certified coaches to service the needs of small, medium and large organizations. Purchasers of coaching services demand measurable results, value for money, recognized accreditation, sustainable ethics, standards, and continuing professional development.

One development is the creation of the Coaches and Mentors Association (COMENSA), whose mission is to create an umbrella association in South Africa to provide for the regulation of local coaching, to develop the credibility and awareness of coaching as a profession, and to promote the effective empowerment of individual and organizational clients. One of the roles of COMENSA has been to build relationships and alliances between purchasers and providers of coaching services. This has encouraged collaboration across many different functional areas, such as the training and development of professional coaches.

A second area of development is inside organizations. Companies such as Standard Bank, Old Mutual, Woolworths, Netcare and Pick ‘n Pay are in the process of creating their own standards and competencies to regulate the hiring of external coaches, ensuring their  alignment with the specific ethics, standards and competencies of those organizations. These corporate bodies are also beginning to investigate the possibility of developing their own internal coaches.

A final development is the collaboration among business coaches themselves, who are forming alliances to offer coaching services to corporate executives and their teams.

Coach training and certification

Two key issues in South Africa today are the dearth of black coaches, plus a lingering perception that coaching is “exclusive” (i.e., not dissimilar to South Africa’s recent history under apartheid). On the other hand, there is a new range of quality coach training programs, both commercial and academic, which are often influenced or supported by international coach training programs. However, because the young, aspiring black managers are busy gaining their years of experience in the business world, many are not yet ready to step into the position of executive or business coach. They want to build their competence, expertise and credibility before tackling the task of coaching other aspirant leaders.

Another issue which has surfaced—and one of the underlying reasons for setting up an organization for coaches and mentors—is that any new profession attracts mavericks as well as pioneers. With the development of coaching as an identifiable, legitimate profession in South Africa, and with international support and pressure, some of the problems of unregulated and untrained coaches will begin to recede.

Challenges coaches face today

In South Africa four types of coaching have emerged: executive coaching, providing one-on-one services to leaders or senior management within organizations, entrepreneurial coaching, one-on-one coaching for entrepreneurs building their own businesses, management coaching as the primary way for managers to develop people and achieve results, and life coaching to support individuals wishing to make significant changes in their careers or personal lives.

The key challenge remains overcoming the legacy of apartheid. With such a diverse work force—in terms of language, race, culture and history—we still do not have enough black coaches working at senior management levels. Due to the country’s destructive history, this is only the second generation of skilled and “in demand” black business leaders. First generation business leaders were often forged in the anti-apartheid struggle.

Looking to the future

Business coaching in South Africa has a positive and powerful future. That bright future is attributable to the explosion of coaching inside organizations, the development of coach training programs, the inclusive, democratic process of COMENSA’s creation of ethical codes and standards of competence, the development of a supervisory framework, the collaboration of executive coaches, and the benefits of international partnership.

The coaching profession is still in its formative stages in South Africa, in the process of becoming a profession in its own right. Over the next few years, we will see increased regulation of coaches, with a demand for qualifications, specific standards and ethics, and recognized certification. There is an exponential explosion of coach training within the country, both academic and commercial/corporate.

Coaching is the trend of the moment. If it continues to develop at its current rate, conforming to internationally accepted standards, coaching will make a significant difference in helping to develop individuals, executives, their teams and their organizations. It will usher South Africa into the future with the very best of inclusive and transformational business practices.

This article first appeared in Business Coaching Worldwide (Summer Issue 2006, Volume 2, Issue 2).


Sunny Stout Rostron, MA

Sunny Stout Rostron, MA, is an executive coach and the author of six books, including Accelerating Performance, Powerful Techniques to Develop People (2002). She is one of the founding members of the Coaches and Mentors of South Africa (COMENSA).

Coaching seems simple enough. You help your clients define their most important long-term goals, break their goals down into short term milestones, hold them accountable, keep them focused and volià… success.

In fact, it seems so simple that if you are a potential client, why would you even need a coach to define what’s important to you and then, like a “nagging-but-loving” parent, make sure you do your homework? That’s easy. In spite of your best intentions, if you are like most people, you become distracted. A “nagging-but-loving” parent or coach may come in handy–whether it is to make sure that children get their homework done or that you make it to the goals you set for yourself.

How about you if you are a coach? You love coaching, you love helping others and dang it, if only people would hire you, they would love the results you can get for them…But to hire you, they have to find you. Oh, c’mon; that’s just wishful thinking. You have to find them and then convince them that what they need (that is, you, in order to reach the goals they set for themselves that they can’t reach on their own) is what they want.

This is called marketing and selling. Marketing is getting yourself in the position to offer your services–getting to the telephone or face-to-face conversation with a potential client. You must then sell your services in such a way that a potential client hires you.

As a potential client, you get this–you expect people to lay out their USP (unique sales proposition). But if you’re a coach, although you wholeheartedly agree with how coaching can help people define and reach their goals, you may feel a knot in your stomach about anything related to marketing and selling.

Despite knowing what you each need to do in order to become more successful, your self-defeating behavior may often get in your way. If you’re a potential client hiring a coach, or if you’re a coach committing to marketing and selling your services, you may instead either procrastinate, get defensive, make excuses, quit too soon or engage in some other self-defeating behavior. There is almost no limit to the number of ways you can defeat yourself. I’ve written two books that cover 80 of them.

Human nature doesn’t exist, only animal nature
and the human potential to not give in to it.
Unknown

Whether you’re a coach or a client, you both know that you get in your own way. What may be less clear is why you do it. Understanding how and why people in general, and you in particular, engage in self-defeating behavior will enable you to take that first step toward getting out of your own way.

Success: Two Steps Forward, One Step Back (Figure 1)

From your first breath to your last, you are stepping into the unknown. Your first baby step is daunting, yet exhilarating. The real challenge to your evolving personality occurs when you take that first step and fall down. To be successful throughout your life, you want to make sure you take two steps forward and one step back, instead of no steps forward or one step forward and two steps back.

Think of an infant taking his first step. He crawls, then stands holding onto a chair or his parent’s leg, and then ventures out into the world of homo-erectus. He steps away from any supports, balances precariously, and looks back at his parent (developmental psychologists refer to this stage with the French word, rapprochement, which means “looking back”). He feels reassured and ventures forth.

Sooner or later he falls and cries. One minute he felt like Superbaby; the next he found himself a helpless little creature. He turned out to be as fragile in the next moment as he felt powerful in the first. He looked back at his parent for reassurance (in other words, coaching–see far right column in Figure 2) that what he had experienced was a slip–it doesn’t mean he has fallen through the cracks and can’t get up and try again. Taking in his parent’s reassurance, he does get up and try again. This occurs over and over, until one day he is able to walk on his own.

When a child internalizes this new skill, a little piece of self-confidence develops and he integrates it into his evolving personality. As his personality develops into his own distinct identity, he becomes more and more an individual, and a confident one at that.

One doesn’t discover new lands without consenting to
lose sight of shore for a very long time.
Andre Gide

This process continues all the way through life. Our personalities and identities are constantly evolving in this two-steps-forward, one-step-back dance of learning–falling, pausing, refueling, retooling, and retrying. Along the way, we make mistakes and learn from them; over time, we can develop perseverance, persistence, and effectiveness.

When you make forward progress, you feel vital, effective and empowered. You seek out opportunities to test your mettle in the world. The world is one giant opportunity and your oyster to explore and enjoy.

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Self-Defeat: What Goes In, Comes Out (Figure 2)

So what happens to you when you defeat yourself? As a baby, if you take that first step into the unknown, go to take a second step, fall, look back, and your parents do not respond to you with encouragement, you become stalled. Worse, you may slide further back and regress. You feel tentative, ineffective, disempowered. You seek out any mitigating behaviors that give you relief from these feelings. You adopt so-called “quick fixes”–ways to cope that give you momentary relief from the trauma of falling from Superbaby to Powerless Baby. The problem is that quick fixes fix nothing, and actually hurt you in the long run.

What happens when Superbaby is criticized (and feels as if he has done something wrong), ignored (and feels alone in his helplessness), or coddled (and then feels confused when not coddled)? Superbaby’s reaction is fear, guilt, shame, anger and confusion. Negative messages about the meaning of what he’s experiencing begin playing in his head. He is suddenly knocked off the resilience track. He doesn’t have the self-confidence he needs to get up and try again on his own.

And instead of becoming effective, he seeks relief. Anything and everything he does in reaction to feeling “upset” triggers a negative coping reaction that works to make him feel better in the short run, but in the long run turns into a self-defeating behavior (SDB).

What’s done to children, they will do to society.
Karl Menninger

These behaviors waste time and squander his potential. Instead of seeing the world as a terrific place to explore, he views it as a terrifying place that can trip him up at every step. This causes him to stall in his life and his career. If he repeats these behaviors often enough, they become habits. Eventually they become internalized parts of his personality that are very resistant to change. That is why you must not become discouraged if you are not able to stop and overcome these self-defeating behaviors overnight. Becoming impatient with yourself is in itself self-defeating.

When you run into adversity in your adult life, the trick is to cut the endless playback loop of the old negative messages so that you can develop the inner strength and resolve to become effective in your life and work. This means replacing the abusive, critical, avoidant, neglectful, or overindulgent and authoritarian voice in your head with the voice of the supportive, authoritative role model, mentor or coach.

At first, you may want to conjure up the image and voice of that supportive person telling you to pause when you most feel like reacting or doing something impulsive. In my case, I brought to mind the image of Dean William MacNary. Dean MacNary, who passed away fifteen years ago, was an advocate for me during some difficult times I had in medical school. When I would run into stress and was about to do something foolish, I could see him in my mind’s eye making a Rabbinical shrug (despite his being an Irish Catholic) and saying to me in his Bostonian accent: “M-a-a-h-k, c’mon; take a deep breath and don’t do what you’re about to do. Let it go.” I would occasionally get into an argument with him in my mind, but “Mac,” as I and my fellow medical students called him, would usually win and prevent me from shooting from the hip and then shooting myself in the foot.

Over the years I have internalized his voice as part of my personality, but on those occasions when I want to dip into the gratitude I feel towards Mac, I’ll still imagine his Rabbinical shrug and steadying voice keeping me in line.

You might want to do the same with the people who have helped you along the way. It will help you feel less alone, and fortify you when you’re battling those impulses that could derail you from your goals. In addition, you can enlist the help of a coach so that you can begin to internalize that supportive, authoritative voice. And ultimately, you’ll replace those self-defeating messages and behaviors with confidence, motivation and determination to succeed.

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This article first appeared in Business Coaching Worldwide (Fall Issue 2005, Volume 1, Issue 3).


Mark Goulston, M.D.

Mark Goulston, M.D., is Sr. Vice President Executive Coaching and Emotional Intelligence at Sherwood Partners. He writes “The Leading Edge” for FAST COMPANY, “Directions” for the National Association of Corporate Directors’ Directors Monthly, and is the author of Get Out of Your Own Way at Work… and Help Others Do the Same (Putnam, available October 6, 2005).

Business coaching is expanding as a means of improving programs, processes, and even people. Sponsors, clients, and corporate executives–those who fund coaching activities–want to hear about successes in terms that they understand, terms related to organizational needs. Everyone might know that a coaching program made a positive difference, but someone insists on getting to the bottom-line: what did we spend and what did we get in return? The following is a brief summary of a real-life case study of a coaching intervention demonstrating measurement and evaluation, including the calculation of the return on investment (ROI)

Background

A USA-based, internationally established, prosperous hotel company, the Nations Hotel Company (NHC), sought to maintain and improve its status in the highly competitive hospitality industry. With hotels in 15 countries, 98% brand awareness worldwide, and 72% customer satisfaction rating, NHC wanted to help executives find ways to improve efficiency, customer satisfaction, revenue growth, and retention of high-performing employees. Challenged to execute this project, the Nations Hotel Learning Organization (NHLO) developed a program, including as a pivotal component a formal, structured coaching program called Coaching for Business Impact (CBI). NHC corporate executives wanted, as part of the process, to see the actual ROI for the coaching project.

Process

The NHLO first surveyed executives to identify learning needs and to assess their willingness to be involved in coaching. Most of the executives indicated that they would like to work with qualified coaches to assist them through a variety of challenges and issues, and that this would be an efficient way to learn, apply, and achieve results. The measurement and evaluation goal for the senior executive team was to assess results for 25 executives, randomly selected (if possible) from the participants in CBI. Figure 1 depicts the 14 steps in the new coaching program, from the beginning to the ultimate outcomes. For the planned ROI analysis, step #4 was critical; executives made a commitment to provide data on action plans and questionnaires.

roi

Although these steps are self-explanatory as to the coaching process, the ROI process involved gathering data throughout the coaching engagement so that evaluation results could be reported for all five levels:

To collect complete and reliable data for Levels 4 and 5, executive-participants completed action plans that included questions addressing the four business impact measures sought to be improved:

1. What is the unit of measure?
2. What is the value (cost) of one unit in monetary terms?
3. How did you arrive at this value?
4. How much did the measure change during the evaluation period? (Monthly value)
5. What other factors could have contributed to this improvement?
6. What percentage of this change was actually caused by this coaching for business impact program?
7. What level of confidence do you place on your estimate of the change attributable to this program? (100% = Certainty and 0% = No Confidence)

Using the action plan responses and collecting data through executive questionnaires, senior executive questionnaires, and company records, the NHLO obtained information to convert data to monetary values (items 1-4 above), to isolate the effects of the coaching on this business impact data (items 5-6 above), and to adjust for errors in estimation (item 7 above).

Evaluation Results

Careful data collection planning allowed the NHLO team to measure the results of the coaching program at all levels. Level 1: Reaction, Level 2: Learning, and Level 3: Application all showed positive results and comments.

Impact: To assess the business impact, the NHLO team assimilated the information on the action plans for the 22 CBI executive-participants who responded. Using these responses, the NHLO arrived at the total adjusted value of the program’s benefits as $1,861,158.ROI: The fully-loaded costs of the CBI program included both the direct and indirect costs of coaching (needs assessment/development, coaching fees, travel, time, support, overhead, telecommunications, facilities, and evaluation). CBI costs for 25 executives totaled $579,300.
Using the total monetary benefits ($1,861,158) and total cost of the program ($579,800), the NHLO developed two ROI calculations. First is the benefit-cost ratio (BCR), which is the ratio of the monetary benefits divided by the costs:

This value suggests that for every dollar invested $3.21 was returned. The ROI formula for investments in any human performance intervention is calculated as it is for other types of investments: earnings divided by investment. For this coaching solution, the ROI was calculated thus:

For every dollar invested in the coaching program, the investment dollar was returned and another $1.21 was generated. In this case, the ROI exceeded the 25% target.

Intangibles: The NHLO chose not to convert all measures to monetary values, creating a list of intangible benefits — improved commitment, teamwork, job satisfaction, customer service, and communication.

Credibility

Credibility of data and of the ROI process itself is always critical. The NHLO’s sources of data (executives and company records), conservative data collection process, isolation of program impact, adjustment for errors in estimates, use of only first-year benefits in the analysis, fully loading program costs, and reporting results at all levels made a convincing case for the CBI program.

Communication

To communicate results to target audiences, the NHLO produced three documents:

To convey a clear understanding of the methodology, the conservative process, and information generated at each level, the NHLO team held meetings with the sponsor and other interested senior executives. Conservative and credible processes and competent communication led senior executives to decide that, with a few minor adjustments in the program, they would continue to offer the coaching for business impact program on a volunteer basis. Pleased with the process and progress, they were delighted to have data connecting coaching to the business impact.

This article first appeared in Business Coaching Worldwide (Fall Issue 2005, Volume 1, Issue 3).


Jack J. Phillips, Ph.D

Jack J. Phillips, Ph.D, is a world-renowned expert on measurement and evaluation, chairman of the ROI Institute, and consultant to many Fortune 500 companies. He facilitates workshops for major conference providers throughout the world. His most recent books are Proving the Value of HR (SHRM, Winter 2005) and Investing in Your Company’s Human Capital (AMACOM, Spring 2005). Find out more about Jack’s work at http://www.roiinstitute.net.

As business, and business coaching, becomes more global, the impact of most business coaching approaches can be enhanced by giving more attention to the influence of culture.

In Coaching Across Cultures: New Tools for Leveraging National, Corporate and Professional Differences (Rosinski, 2003), I define coaching as “the art of unleashing people’s potential to reach meaningful, important objectives.” A cultural perspective in coaching can bring to the surface powerful issues and assumptions related to culture and mobilize them to unleash client potential and facilitate sustainable and positive change. The key approach is to value and explore differences rather than seeking to impose norms, values and beliefs. The coaching impact goes further than enhancing the company bottom-line. As coaches we have an opportunity to help foster the conditions of a better world.

I do not suggest that coaching from this perspective is superior or even the first perspective that one should take. However, I believe that it is a crucial perspective that has been given insufficient attention during the relatively short existence of the profession of coaching.

Groups of all kinds have cultures. Groups originate from various categories, including geography, religion, profession, organization, social life, gender, and sexual orientation. A group’s culture is the set of unique characteristics that distinguishes its members from another group. However, culture is not static — it evolves. Our individual identities are a synthesis of the cultures of the multiple groups to which we belong. On the surface level, culture concerns the language we use, our greetings, and our dress. Beneath the surface it can determine our thinking patterns and how we go about solving problems. It influences how our businesses are structured.

As coaches and executives we can use culture to unleash potential in many ways. We ignore the influence of culture at our peril because it influences thoughts, behaviors and emotions. It is pervasive, vastly underestimated, and can be a powerful force for positive change. We seek to unleash client potential by creating new ways of operating through drawing on many different approaches. We consider context, preferences, possibilities and consequences and come up with ways that work best for the client, within ethical boundaries.

A Practical Approach to Leveraging Cultural Differences

With a lever, you obtain a stronger force than the one you are exerting. Leveraging cultural differences means achieving more output with a given input. The input is human potential — individual or collective, in its rich cultural diversity. Through considering and leveraging alternative cultural orientations we can enlarge our views, our options and achieve synergy.

Although there is no set recipe to follow, I set out in Coaching Across Cultures a useful framework of The Global Coaching Process. Through this approach, coaches and clients can connect their personal voyages with those of their families, friends, work colleagues, organizations, communities and society in general. Different levels and layers of culture will interact and the ground will be uneven and shifting. In coaching conversations we aim to facilitate clarity by inviting an exploration of cultural influences. Clients can then leverage culture to unleash their potential and successfully pursue their goals. In this process we assist clients in finding new ways of operating that are meaningful and sustainable in their contexts.

The Cultural Orientations Framework (COF)
I have drawn together cross-cultural research on orientations across a range of human activities into the Cultural Orientations Framework (COF). One orientation is not right and others wrong. I invite clients to adopt an and approach, rather than an either/or.

The COF looks at seven categories. Here I give a brief example in each:

1. Our sense of power and responsibility;
There are three ways we can relate to the world in general, and more specifically to our businesses and our own careers. (1) We can seek to control. (2) We can be humble where we accept natural limitations. (3) We can also strive for harmony and balance with nature.

We encourage our clients to work with each of these. They can take responsibility for their lives, follow their dreams, and strive for excellence and advancement — a stance of control which can provide motivation and lead to positive self-fulfilling prophecies. At the same time, they can accept natural limitations of both themselves and their situations. Knowing one’s limits is not always obvious, but humbly accepting them is paradoxically within one’s control. Harmony is learning when to act and when to accept with humility what has occurred.

2. The way we manage time;
There are different cultural orientations to managing time. For example, many executives see time as a scarce resource. An alternative orientation is to view time as plentiful. For the client who sees time as scarce and gets caught in a daily flurry of activities without meaningful actions, we might discuss strategies for opening up opportunities for reflective thought — while at the same time making strategic use of their capacity for high-speed action. By viewing time in a plentiful fashion, the client may paradoxically appreciate the scarcity of time.

3. How we define our identity and purpose;
In defining identity and purpose, it is common for executives to refer to how much they do and achieve — a doing orientation. Another orientation is to stress living itself and the development of talents and relationships — a being orientation. For example, with clients whose preferences are for doing a lot at the expense of productive and meaningful relationships in the workplace, we may encourage them to try new strategies for building trusting, sustainable relationships. Not only can they then do more, but they may also receive the benefits of a richer personal and professional life.

4. The organizational arrangements we favor;
One way people differ on organizational arrangements is in the degree to which they are collaborative or competitive. In competitive cultures, the workplace is often the stage for a contest between individuals or work areas. The aim is to win. In collaborative cultures, the emphasis is more on working together. The European Union is an example of leveraging competition and collaboration. Countries strive to be the best. Governments regularly compare their performances with their neighbors’ to motivate performance – but there is also collaboration. Best practices are exchanged in all areas; science, engineering medicine, and so on.

5. Our notions of territory and boundaries;
In protective cultures, people are keen to protect their physical and mental territory. They like to keep their physical and psychological distance. In sharing cultures, people seek closeness and intimacy and in the workplace they freely discuss personal subjects as well as business matters. Clients who favor a protective approach can be encouraged towards a sharing orientation through greater self-disclosure. This can promote greater protection through establishing network relationships built on trust. The stronger network also builds productivity benefits.

6. The way we communicate;
There are many variations across cultures in how people communicate. For example, US business practice is typified by a direct communication style where the priority is to get one’s point across. In many Asian cultures, an indirect style is favored, where the priority is to maintain a cordial relationship. To leverage the two orientations, I suggest being clear and firm with the content while being careful and sensitive with the form. Some coaches hold bluntness as a virtue and will challenge clients directly as a sign of courage and honesty. This approach may well backfire across cultures. By holding to the substance but being sensitive on the process, coaches can leverage difference for the benefit of the client.

7. Our modes of thinking.
Much recent research has proven that there is a large variation between cultures on modes of thinking. For example, some cultures tend to favor analytical thinking. Analysis breaks a whole into parts and problems are solved through decomposition. In other cultures, systemic thinking is more common. Systemic or “holistic” thinking brings the parts together into a cohesive whole. Emphasis is on connections between the parts and on the entire system.

In the Global Coaching Process, I leverage the two forms for goal setting. Analytically, objectives are broken down into categories of self, family and friend, organization, community and the world. Systemically, interconnections between the categories indicate possible synergies, and the global perspective prevents losing sight of what is truly important.

Conclusion

Coaching from a cultural perspective helps unleash client potential by broadening perspectives and focusing on possibilities. A consideration of culture is a way of injecting additional passion, meaning, and variety into the coaching process by a holistic consideration of clients’ lives. My experience is that coaching from this perspective will help facilitate financial success in business for clients. In addition, when individuals accept the challenge of incorporating the cultural perspective, they take on a shared responsibility for better relationships, teams, organizations, communities, and global societies. The approach of genuinely respecting, valuing, and leveraging of difference is highly infectious. As carriers, our impact as coaches can reach well beyond the lives of our clients to truly make a better world.

This article first appeared in Business Coaching Worldwide (Summer Issue 2005, Volume 1, Issue 2).


Philippe Rosinski, Ir, MS, MCC

Philippe Rosinski, Ir, MS, MCC is principal of Rosinski & Company, a global consulting firm that helps leaders, teams, and organizations unleash their human potential to achieve high performance. Philippe has written Coaching Across Cultures (Nicholas Brealey Publishing/Intercultural Press, 2003; http://www.coachingacrosscultures.com). Philippe may be reached by email at office@philrosinski.com.


Geoffrey Abbott

Geoffrey Abbott is an executive coach and consultant, and a researcher with the Faculty of Economics and Commerce at the Australian National University. Geoff is currently based in El Salvador, where he is coaching international executives and researching the effectiveness of executive coaching with expatriate managers.

As a practicing executive coach and a professor of leadership coaching, I am often asked, “How does one get a traditional manager to rely less on power and control and become more of a coaching leader?” This is a tough question, because it sounds like the coach is being asked to change the heart and soul of another human being. And as we all know, the only heart and soul we can really change is our own! And yet, the most powerful coaching is when real transformation occurs in our coaching clients — when they realize they have learned something powerful or new about themselves. With that transformative learning, the coaching client begins to behave and relate to the world around them in an entirely different way.

In our book, Leading from the Inside Out: a Coaching Model (Bianco, Nabors, & Roman, 2002), we define coaching leadership as “…a way of being based on the commitment to align beliefs with actions. Coaching leaders communicate powerfully, help others to create desired outcomes, and hold relationships based on honesty, acceptance and accountability.”

Is there a shortcut to stimulating this kind of learning in the leader of an organization? Over the last twenty years of working with leaders from all types of organizations, my business partners and I have observed a phenomenon discussed in any basic psychology textbook — people will repeat a behavior that gets them the outcome they desire. So, there are two relevant questions: 1) what are the outcomes the leader is striving to achieve? and 2) what behaviors are most likely to achieve those outcomes?

The outcomes that most leaders expect from employees today haven’t changed much over the last fifty years. They want their employees to be accountable for their performance. What has changed is the realization that the traditional management methods of directing, advising, coercing and controlling only work in the short-term to produce desired performance. Long-term performance accountability requires coaching behaviors: influencing, teaching, questioning and enabling.

Use Inquiry and Advocacy to Communicate Skillfully as a Leader

These coaching behaviors of influencing, teaching, questioning and enabling can be seen in the conversations a coaching leader holds with others. Coaching leaders communicate to understand, not to convince; test their assumptions; ask powerful questions; question organizational and team discrepancies between behavior and outcomes; and reach agreements that lead to higher levels of performance. These leaders communicate quite differently from traditional managers. They share their reasoning, perceptions and beliefs with openness, and change their points of view if presented with new reasoning or data. They ask their employees to back up their points of view with facts and defensible reasoning.

Let’s return to the original question. “How does one get a traditional manager to rely less on power and control and become more of a coaching leader?” As a coach, a good place to start is to focus on behaviors. Such “advocacy” and “inquiry” skills can be learned, practiced and reinforced in the coaching relationship. Following is a chart of short “recipes” that coaches can help their clients to start using in staff meetings, performance discussions, planning meetings, and countless other settings.

Advocacy Inquiry
I came to this conclusion because… How did you come to that conclusion? Or
Why do you say that?
I’m making the following assumptions when I make this statement. What assumptions are you making when you say that?
The following facts lead me to believe that… What information did you consider when you came to that conclusion?
I think…because…I assumed…because… Help me to understand your reasoning/thinking here.
I see the situation as… How do you see this situation?
Testing Your Reasoning
Here’s the data I looked at. What other data would be important to look at?
I infer that you mean… Am I making an accurate inference?
I assumed that… because… What other assumptions could I make?
I came to this conclusion because… What conclusion would you come to?
Have I missed anything?

The Results of Skillful Communication

Coaching leaders communicate skillfully by balancing advocacy and inquiry. Results can be astounding. At the individual level, employees feel more valued and they are able to contribute their ideas more fully. At the team level, the promise of synergistic team problem-solving is more fully realized. At the organizational level, higher levels of performance are achieved in the bottom line. At the heart of the skills of advocacy and inquiry is the insistence on learning instead of judging. As leaders begin to focus on the behaviors of coaching leadership, they may begin to change their heart and soul and truly become a coaching leader.

This article first appeared in Business Coaching Worldwide (Summer Issue 2005, Volume 1, Issue 2).


Cynthia Roman, Ed.D, PCC

Cynthia Roman, Ed.D, PCC, is an Executive Coach and Partner with Strategic Performance Group and a Professor of Leadership Coaching at The George Washington University. She also teaches Leadership at University of Maryland, University College. She is co-author of Leading From the Inside Out: A Coaching Model (2002, Sage Publications). Read more about Cynthia’s work at http://www.strategicperformance.net.

As businesses and organizations increasingly turn to coaching for performance improvement and leadership development, questions about the value of coaching naturally arise. In addition, calculating the return on investment (ROI) of coaching can seem daunting. Here are five of the most frequently asked questions that business coaches ask about measuring the ROI of coaching.

  1. Do I have to learn finance and accounting principles to understand and effectively measure the ROI in coaching? No. Although many of the basic principles of finance and accounting aren’t required for developing the ROI in business coaching, it is important to understand issues such as revenue, profit and cost. Ultimately, the payoff of coaching or any human resources project or program will be based on either direct costs saved or additional profits generated. It’s helpful to understand the nature and types of costs and the different types of profits and profit margins.
  2. Do I have to know complicated statistics to understand ROI? No. Basic statistical processes–simple averages, variance and the standard deviation–are all that are necessary to develop most ROI impact studies. These very simple concepts are, by design, simplified as much as possible so that the ROI can be determined successfully with all types of business coaching solutions.
  3. Isn’t ROI too complicated for most business coaching professionals? No. The ROI calculation itself is a very simple ratio: net benefits divided by costs. The process follows a methodical, step-by-step sequence with guiding principles for collecting data and calculating benefits and costs. In all, six types of data are collected, including reaction, learning, application, impact, ROI and intangibles (to review, see Figure 1 at https://wabccoaches.com/2005/04/measuring-roi-in-business-coaching-an-overview/). What can make the process somewhat complicated are the many options in each step in the process. Several methods are available for isolating the effects of coaching as well as for converting data to monetary values. Selecting the data collection methods for a given coaching assignment will be influenced by the nature of the coaching engagement and the particular environment and setting. To keep the process simple and clear, the coach, the participant, and the sponsor or client organization must establish the parameters and expectations for the coaching experience at the beginning of the assignment.
  4. Shouldn’t business coaches focus on the human dynamics rather than on the numbers? Certainly, within the coaching assignment the business coach’s attention is on the coaching task and on developing rapport with the participant so that learning and change can happen. The astute coach and coaching firm will realize the need for accountability and for measurement and evaluation of the coaching engagement, including ROI. Assessing the value of business coaching and reporting that information to decision-makers enhances the likelihood of continuing and even increasing the opportunities to coach.
  5. Isn’t this just a fad? No. This methodology is comprehensive, consistent, and credible. ROI has been used as a business evaluation tool for 300 years. Although ROI has only recently begun to be used to evaluate coaching, its significance as the benchmark in measurement and evaluation is well-established and well-documented.

Measuring and evaluating the return on investment validates the critical role of coaching as a performance improvement solution. Expressing value in monetary terms puts business coaches on track to meet the growing demand for accountability.

This article first appeared in Business Coaching Worldwide (Summer Issue 2005, Volume 1, Issue 2).


Jack J. Phillips, Ph.D

Jack J. Phillips, Ph.D, is a world-renowned expert on measurement and evaluation, chairman of the ROI Institute, and consultant to many Fortune 500 companies. He facilitates workshops for major conference providers throughout the world. His most recent books are Proving the Value of HR (SHRM, Winter 2005) and Investing in Your Company’s Human Capital (AMACOM, Spring 2005). Find out more about Jack’s work at http://www.roiinstitute.net.

How do we Executive Coaches and Organizational Consultants help our clients create the cultural conditions for sustainable high performance? We need to look no further than the powerful process of coaching. We already know that coaching assists individuals to grow and develop. Imagine what would happen if the entire organization were able to tap the power, ideas, and wisdom of its own members…through people learning how to deliver and respond to feedback in powerful and healthy ways.

What is the vision of a “coaching culture”?

A coaching culture is present when…all members of the culture fearlessly engage in candid, respectful coaching conversations, unrestricted by reporting relationships, about how they can improve their working relationships and individual and collective work performance. All have learned to value and effectively use feedback as a powerful learning tool to produce personal and professional development, high-trust working relationships, continually-improving job performance, and ever-increasing customer satisfaction.

How do we know we have one? It looks like this…

The 7 Characteristics of a Coaching Culture

  1. Leaders are Positive Role Models

    Organizational cultures take their cue from its leaders at the top. They set the tone, pace, and expectations for what is right and what is wrong — what is acceptable and what is not. When leaders become skilled coach-practitioners, they transform their leadership style from being THE BOSS OF PEOPLE to THE COACH FOR PEOPLE.

    Coaching is “applied leadership,” requiring the best of what we know about contemporary leadership. Leaders who master coaching learn to create powerful, emotionally-intelligent conversations where the coach guides productive change, passion, and inspired action.
  2. Every Member is Focused on Customer Feedback

    Most modern organizations have feedback channels that capture information from the customers they serve. This is not new. However, in a coaching culture, there is a huge emphasis on expanding these feedback channels and making them truly effective at what they’re capable of doing. It becomes the responsibility of every member in a coaching culture to proactively seek, strive to understand, and non-defensively respond to the feedback and the customer who is delivering it. Everyone understands the significance of their role as it relates to the mission of serving (internal or external) customers.
  3. Coaching Flows in all directions — Up, Down, and Laterally

    In a coaching culture, coaching flows in all directions from all parties, making a networked web across the organization consisting of many connections between people in the same departments, across departments, between teams, and up and down and across the hierarchy. The key to this rich flow of coaching communications is the establishment of explicit coaching relationships.

    We know that leaders and managers, when optimally effective, provide performance and developmental coaching for their direct reports. This is a necessary component of high-performance, yet, in itself, is not sufficient to create the true high-performance cultural conditions required in today’s businesses.

    Peer coaching is the second place for creating explicit coaching relationships. Coaching relationships across the organization are established to support ongoing dialogue, learning, problem solving, and enhanced working conditions.
    Peer coaching is an invaluable element that supports learning, growth, and productivity improvements.

    Upward coaching is the third element and often the most challenging to establish. There are many reasons why. The leader/manager may either be unaware or unwilling to receive upward feedback. The direct reports might not feel safe or that permission exists to offer candid feedback even though they would like to be able to deliver it. For whatever reason, the nature of the relationship must dramatically transform if feedback is to flow freely between a manager and direct reports. Becoming coaches for one another makes this shift by creating safety, trust, respect, and rapport in the relationship.
  4. Teams Become Passionate and Energized

    The process of coaching, when learned by teams, creates egalitarian, high-trust relationships that transcend traditional Boss/Subordinate/Competitor dynamics, and moves people toward a collaborative Coach/Coachee/Partner relationship.

    In high performance cultures, people feel part of the larger whole. This enhanced feeling of connection occurs because teams make a point of opening up dialogue to explore how they are working together. Teams focus on creating connection and high trust. Trust directly supports people being able to work together more effectively and more efficiently which leads to higher performance.

    The relationships that teams create in a coaching culture can be characterized by a high degree of commitment to teammates’ success. Internal competition for the spotlight, job promotions, and accolades from top management do not become destructive. The fundamental belief is that all members of the team work for the same company. They are part of the same team. Everybody is in the same big boat together and pulls her own weight and is accountable for their contribution to team performance. They accept this truth: we can’t win unless everyone wins. My job is to make my teammates successful.
  5. Learning Occurs, More Effective Decisions are Made, & Change Moves Faster

    Coaching speeds up the personal and team learning curve by capturing lessons learned more quickly. Teams make frequent use of after-action-reviews to document any and all lessons learned. People become anxious to tap and share wisdom across the team. People learn to fail fast without fear of repercussion in what is truly a learning environment.

    In a coaching culture, it is common practice to involve everybody affected by the change in the decision to make the change, and certainly in the implementation planning. Coaching is the act of engaging people in safe dialogue where they are expected to respectfully share their candid concerns, ideas, and points-of-view so that they experience feeling part of the process and being valued as a partner.
  6. HR Systems are Aligned and Fully Integrated

    Human resource systems are comprised of talent acquisition, orientation, training, performance evaluation, promotions, recognition programs, and compensation. Coaching must be fully integrated into all the systems that impact people.

    Most organizations today have articulated organizational values that hang on the boardroom wall. Coaching cultures actively embrace and use their espoused core values as a compass to guide people and business decisions. Members of the culture are expected to observe and coach their colleagues on the extent their colleagues’ observed behaviors are congruent with the core values and guiding behaviors. This makes values relevant, useful, and meaningful to the organization.

    Coaching cultures use 360 processes to gather feedback on a regular basis. All members of the culture have personal development plans that are taken seriously, reviewed annually, and serve to significantly impact the effectiveness of individuals and teams.

    Job descriptions include a clear description of relevant coaching skills required to be successful in the job. Everyone is expected to perceive themselves as a “coach practitioner” engaged in continuous learning about what it means to be a coach.
  7. The Organization Has a Common Coaching Practice and Language

    We define coaching as “the process of helping others enhance their effectiveness…in a way they feel helped.” This comprehensive definition of coaching reflects the intention of the coach as well as offers guidance in how to organize and conduct the coaching conversation. Coaching cultures adopt a singular approach and methodology so the culture has an easily recognized, commonly understood approach. Why is this important?

    If an entire culture has a shared understanding of HOW to coach, then the coaching conversations are more easily started and sustained between people. The mystery is removed. People can connect easily and communicate with fewer distractions, making the communication much more effective. This increases the likelihood that more people will start getting more of what they want, and less of what they do not want.


The Emerging Results

Organizations have seen the powerful impact on the effectiveness of Executives who retain external Executive or utilize internal Business Coaches. They are also beginning to connect-the-dots and extrapolate the incredible power of an organization whose capacity for growth and change is enhanced through the systematic practice of coaching.

Crane Consulting is actively engaged with several leading organizations that are focused on creating their own coaching culture. We see this work as the nexus of BOTH continuing external coaching with Executives AND showing their organizations how to coach one another. Rather than reduce or eliminate the role of Executive Coaches, this transformational organizational work actually provides Executive Coaches more to work with their executive clients on…how THEY become coaches for the teams they have the privilege of leading!

This article first appeared in Business Coaching Worldwide (Premier Issue 2005, Volume 1, Issue 1).


Thomas Crane, M.B.A.

Thomas Crane, M.B.A., is an experienced OD consultant, coach, author, and speaker who specializes in working with leaders and their teams to build “feedback-rich coaching cultures” that create and sustain true “high-performance.” His book, The Heart of Coaching, is published by FTA Press, San Diego, CA. His next book, “Creating Coaching Cultures — The Next Wave” will be available in the fall of 2005. Read more about Tom’s work at www.craneconsulting.com.

Measuring ROI? In business coaching? Yes and yes.
Isn’t this just a fad? Isn’t this impossible? No and no.

As more and more organizations use business coaching as a human resources, performance improvement, and leadership development approach, many executives question its value, particularly as coaching expenditures grow. Whether the engagement takes place in the context of an internal department for coaching or through arrangement with a business coaching firm, coaching assignments and commitments are planned and executed with good intentions. Unfortunately, however, not all coaching engagements produce the value desired by either the individual being coached (participant) or the sponsor who often pays for it. It will be increasingly important that business coaches measure a significant return on investment (ROI) and show the value of business coaching in terms that managers and executives understand.

It’s Not a Fad . . .
Measuring ROI enjoys a history of nearly thirty years of application in a variety of human resource and performance improvement processes and across the full spectrum of industries and organizations. Thousands of trained practitioners implement an ROI process in their own settings and thousands of impact studies are generated annually worldwide. The methodology is the subject of many books in many languages.

It’s Not Impossible . . . 
Successfully measuring ROI for business coaching involves much more than simply assessing results achieved. The most effective ROI processes involve four phases: planning, data collection, data analysis, and reporting.

In the planning phase the coach, the person being coached, his or her manager, and the sponsor (client organization) agree on the evaluation plans and establish a baseline for expectations.

The data collection phase occurs in two time frames. Data is collected first during the coaching experience and then at the conclusion of the engagement or at an appropriate follow up time. The data collected include satisfaction and reaction, learning, application and implementation, business impact, and ROI. See Figure 1.

Evaluation Levels
Level Measurement Focus
1. Reaction & Planned ActionMeasures participant satisfaction with the coaching experience and captures planned actions
2. LearningMeasures changes in knowledge, skills, and attitudes
3. Application and ImplementationMeasures changes in on-the-job behavior and progress with application
4. Business ImpactCaptures changes in business impact measures
5. Return on InvestmentCompares coaching engagement monetary benefits to the program costs
Figure 1 – The Levels of Data

The third phase in the ROI Methodology–data analysis— isolates the effects of the coaching on the business. The process includes converting data to monetary values using conservative figures (higher figures for costs, lower figures for benefits), capturing costs, calculating the return on investment, and identifying intangible measures and benefits.

Phase four–reporting–requires reaching conclusions, generating reports, and communicating the information to target groups. This new knowledge affords all involved–from the coach and the person being coached to upper level executives in the client organization–the ability to assess the value of the coaching engagement and the opportunity to make adjustments going forward.

Final Thoughts . . .
Developing the ROI in business coaching is not a fad, and it’s not impossible. Measuring ROI in business coaching is, and will increasingly become, an imperative for organizations and coaching firms pursuing the highest standards of accountability.

This article first appeared in Business Coaching Worldwide (Premier Issue 2005, Volume 1, Issue 1).


Jack J. Phillips, Ph.D

Jack J. Phillips, Ph.D, is a world-renowned expert on measurement and evaluation, chairman of the ROI Institute, and consultant to many Fortune 500 companies. He facilitates workshops for major conference providers throughout the world. His most recent books are Proving the Value of HR (SHRM, Winter 2005) and Investing in Your Company’s Human Capital (AMACOM, Spring 2005). Find out more about Jack’s work at http://www.roiinstitute.net.

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