by Doug Gray | Apr 26, 2017 | action learning process, Business, Coaching, Leadership, Leadership Coach Nashville, Managers, money, organizational leadership, positive psychology
There is too much confusion regarding return on investment (ROI) for your investment in business coaching.
Let me clear the confusion by describing two sides of the ROI coin, and share an example of a coaching client who demonstrated a 300 % ROI from his investment.
One side of the ROI coin states “If you cannot demonstrate ROI from any initiative, then it will not be funded.” That makes business sense, and has defined most decision-making models. Examples abound from Peter Drucker’s famous maxim “If you cannot measure it then it does not exist” to Alan Weiss’ maxim “The only measure that matters is improved results of the client’s condition.” My corollary is, “Behavorial outcomes or performance outcomes can always be measured quantitatively (with numbers) or qualitatively (with descriptions).”
The other side of the ROI coin states that human behavior is inherently complex and unpredictable, therefore measuring that complexity is impossible. The notion of accurately measuring the impact of that change is impossible (even with artificial intelligence gathered from big data sets.) My corollary is, “The pace of change is slower today than it will ever be in the future, so respond to the challenges today.” What are you waiting to measure? Organizational psychologists distinguish between True Measures (T, an absolute from Aristotle), actual measure (t) and degree of error (%e). One formula to measure that complexity is T = t(%e). The main point is that complexity can be measured within ranges of acceptable error.
My experience is that ROI can be measured and must be measured. Here is the formula that I use, adapted from my good friend John Mattox’s (2016) book, Learning Analytics; Measurement innovations to support employee development. (Yes, my testimonial is on the back cover. I strongly encourage anyone interested in ROI to purchase and study this book.) Another great resource is the ROI Institute, founded by Jack and Patti Phillips.
Here is version 1 of the formula I use: ROI = (benefits-cost)/ cost. For instance, if the benefits of coaching investment for 12 months are $20,000 in new revenue, and the cost of coaching was $10,000, then the ROI of that investment was ($30,000-$10,000) or $20,000/ $10,000 or 200%. Pretty impressive ROI, right? But coaching was not the only reason for that new revenue of $30,000, therefore that 200% ROI number is not valid.
Version 2 of the formula I use is ROI = (benefits x % attributed to outcomes)/ cost. For instance, if the benefits of coaching investment for 12 months are $30,000 in new revenue, and the percent attributed to coaching was 40%, and the cost of coaching was $10,000, then the ROI of that investment was ($30,000 x .40 = $12,000-$10,000) or $2,000/ $10,000 or 20%. A more accurate assessment, perhaps, but 20% ROI is not as impressive. Version 2 is also called adjusted ROI.
Here is a real example from one of my clients that illustrates how to assess the ROI of business coaching:
| |
2015 |
2016 |
2017 (expected) |
| Products |
$200,000 |
$190,000 |
$250,000 |
| Services |
$20,000 |
$55,000 |
$70,000 |
| |
$220,000 |
$245,000 (+10%) |
$320,000 (+23%) |
| % attributed to coaching |
20% ($44,000) |
20% ($49,000) |
20% ($64,000) |
| – Cost of coaching |
$12,000 |
$12,000 |
$12,000 |
| ROI of coaching |
367 % |
408 % |
533 % |
The bottom line?
- The ROI of your business coaching investment can be measured based on behavioral outcomes and performance outcomes.
2. The ROI of your business coaching investment with Action Learning Associates is guaranteed to be positive. Since 1997, we have provided that guarantee, and it has been true 100% of the time.
What are you waiting for?
Call Doug Gray, PCC, today at 615.905.1892 or contact us here.
What are you waiting for?
Download this list of services and investment levels now:
by Doug Gray | Apr 9, 2017 | Business, Coaching, Leadership, Leadership Coach Nashville, Managers, organizational leadership, Personal Development, positive psychology, strengths, talent
The American educator John Dewey (1938) stated, “We do not learn from experience… we learn from reflecting on experience.” That fact remains unchanged (for at least the last 79 years) because it describes the need to reflect on how leaders develop. For instance, a leadership shortage may be described by demographic shifts (millennials or global diversity), insufficient training (after promotions) or discouraging mindsets (low engagement or trust measures). In response to that shortage, leaders need to practice desired behaviors more frequently (Kouzes & Posner, 2016). Consider this example. When I recently asked a room full of leaders, “How many of you describe yourself as a leader?” only about 10% raised their hands. My experience is that many potential leaders do not regard themselves as leaders, largely because they do not trust their personal experiences. Leaders can learn from experiences, but not all experiences are meaningful (Yip & Wilson, 2010). This short paper explains how the two top processes of leader development can be applied to executive leadership. Those two processes, 1) challenging assignments and 2) developmental relationships, described 64% of leader development experiences in the United States 24 years ago (McCall, Lombardo & Morrison, 1998) and are just as critical today.
Challenging assignments
As a species, humans have always adapted to environmental stimuli. As leaders, humans adapt to environmental stimuli with internal change (Schein, 2010). When I ask leaders to share their “personal best leadership story” the results may range from parenting to global reorganizations. The unifying characteristic of those stories is that they describe challenging assignments; all leaders model initiative, take risks and innovate new behaviors (Kouzes & Posner, 2016). One useful framework for practicing more leadership behaviors includes these five steps: 1) model the way, 2) inspire a shared vision, 3) challenge the process, 4) enable others to act, and 5) encourage the heart (show appreciation and celebrate successes; Kouzes & Posner, 2016). That framework focuses on learning leadership behaviors, like a road map, and consequently I have shared that framework with dozens of executive leaders. Any leader cited throughout history (in any reference book or in any story) has embraced challenging assignments.
So, what are useful challenging assignments? Yip & Wilson (2010) list five types of assignments; 1) increase in job scope, 2) creating changes, 3) job rotation, 4) stakeholder engagement, and 5) cultural exchanges. Examples of an increase in job scope include redesigning roles or responsibilities, adding people or budget to a current assignment, a career succession pipeline or a job succession ladder. Examples of creating change abound as leaders respond to technological changes, market adaptations, global choices of suppliers and providers, diverse stakeholders, demands for improved efficiency, effectiveness or new outcomes. Examples of job rotation include formal systems with regular shifts, as physicians and healthcare leaders often do when training, or informal rotations when leaders shadow colleagues in a different work group or culture. Examples of stakeholder engagement include cross functional teams (sales and operations) or new market negotiations (vendors, clients, government officials) designed to develop awareness of cultural complexity and the need to negotiate desired outcomes. Examples of cultural exchanges include foreign assignments, foreign responsibilities, cultural awareness assessments, organizational culture development, language skills, and understanding of global leadership behaviors.
The next question may be, “how do leaders increase their probability of success in challenging assignments?” The answer includes feedback from developmental relationships.
Developmental relationships
No leader succeeds alone. We all need meaningful relational feedback such as coaching, peer or group mentoring, or one-on-one mentoring. Yip & Wilson (2010) list three types of developmental relationships; 1) constructive managers, 2) difficult relationships, and 3) other venerated leaders. Examples of constructive managers include regular one-to-one feedback sessions, performance reviews, based on critical organizational competencies or developmental states validated by a career development plan. Examples of difficult relationships are those conflicts or disputes that were handled poorly, remain memorable as instructive reminders of “what not to do next time”, or lessons from unethical or inappropriate behavior. Examples of relational feedback from other venerated leaders may include a mentoring session from an elder or historically wise leader, or an exemplary role model in a community or organization.
How do leaders increase developmental relationships? The most effective answer is to actively seek out wise mentors and regularly ask for feedback. As Kaplan (2007) states, the person in the mirror may be able to respond to seven key questions with candid feedback. However, my experience is that executive leaders require external, objective relationships with experienced mentors and coaches who can “speak truth to power” or model new desired behaviors. The most requested topics for executive coaching engagements have not changed for many years; those topics are (1) executive presence and influencing skills, (2) ability in leading teams and people development, and (3) relationship management (TCB, 2014). Managers and supervisors may be able to provide insights into those topics, but only executive coaches can observe and recommend new desired behaviors.
The coach training industry is now estimated at 53,500 global coach practitioners and over $2B in annual revenue, with 115 accredited coach training programs (ICF, 2016). The International Coaching Federation (ICF) hosted the largest global survey (n=15,380, with 38% non-members) of coaching practitioners (internal, external or both) and managers or leaders using coaching skills (within Human Resources, Talent Development, or any line of business; ICF, 2016). That survey identified the top future obstacles for coaching as (1) untrained individuals and (2) marketplace confusion (ICF, 2016). The survey also identified the top future opportunities for coaching as (1) increased awareness of the benefits of coaching, and (2) credible data on ROI/ROE/outcomes (ICF, 2016). Those findings suggest a significant need for research on the efficacy of coach training.
Conclusion
When Dewey revolutionized American educational systems, he caused leaders to challenge the status quo and provide developmental relationships for students. In a similar way, leaders have always accepted challenging assignments and sought candid, relational feedback of their performance. In recent months I have applied the model from Kouzes & Posner (2016) to several executive leaders because it focuses on frequency of desired leadership behaviors. If we assume that any leader needs to 1) model the way, 2) inspire a shared vision, 3) challenge the process, 4) enable others to act, and 5) encourage the heart (show appreciation and celebrate successes; Kouzes & Posner, 2016), then we can help more leaders to increase the frequency of desired leadership behaviors. In other words, we can help leaders practice leadership.
Contact Doug Gray, PCC, for details at 615.905.1892 today.
References
Dewey, J. (1938). Experience and education. New York: Macmillan.
ICF (2016). 2016 ICF Global Coaching Study; Executive summary. International Coaching Federation.
Kaplan, R. S. (January 2007). What to ask the person in the mirror. In On managing yourself (pp. 135- 156, 2010). Boston: Harvard Business Review Press.
Kouzes, J.M. & Posner, B.Z. (2016). Learning leadership; The five fundamentals of becoming an extraordinary leader. San Francisco, CA: Wiley.
McCall, Lombardo & Morrison (1988). The lessons of experience; How successful executive develop on the job. (reference not included in text, but cited on p. 64). In Velsor, E.V., McCauley, C.D. & Ruderman, M.N. (2010). Handbook for leadership development, 3rd Ed. San Francisco: Jossey-Bass.
Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). San Francisco, CA: Jossey- Bass Publications.
TCB (2014). The 2014 Executive Coaching Survey. The Conference Board, Report #R-1568-14-RR.
Yip, J. & Wilson, M.S. (2010). Learning from experience. Pp. 63-95. In Velsor, E.V., McCauley, C.D. & Ruderman, M.N. (2010). Handbook for leadership development, 3rd Ed. San Francisco: Jossey-Bass.
What are you waiting for?
Download this list of services and investment levels now:
by Doug Gray | Feb 23, 2017 | Business, Leadership, Leadership Coach Nashville, Managers, organizational leadership, positive psychology, talent assessment
Organizational Consulting and Leadership Coaching
We understand the challenges that executive leaders face. We are experts in individual and organizational behavioral change. Since 1997, we have consulted with hundreds of leaders using the 3A process of (1) assessment, (2) constructive actions, (3) accountability. Our purpose is to help leaders flourish as they achieve business outcomes.
Theoretical models
- Positive psychology (PP) can be defined as the science and practice of well-being or flourishing. Prior to 1998, over 70% of psychological research focused on mental illness. Since 1998, a better balance has resulted from new scientific studies in mental health.
- Psychological capital (PsyCap) is a developmental state comprised of hope, efficacy, resilience and optimism. Our research confirms that PsyCap can be developed, and explains up to 71% of engagement scores and 65% of job satisfaction scores.
Value to you
- Modeling evidence-based practices in behavior change
- providing a confidential assessment of individuals and teams
- adding a third party, objective, supportive perspective to your leadership team
- increasing accountability of each leader’s personal and professional goals
- improving specific skills related to each leader’s role, such as supervisory or managerial skills, interpersonal communication, executive presence, conflict resolution, productivity
- sharing world-class techniques from superb organizations that have done similar work
- reviewing strategic business decisions related to operations, customer service, marketing, management or financials
- being a sounding board for communication issues
- preventing problems, thereby avoiding more expensive, time consuming or embarrassing actions
- supporting each leader’s growth past any limiting beliefs
Scope of services
Individual executive leadership coaching typically requires at least 6 months of engagement for over 40 hours. All coaching service levels include an intake session, individual quantitative and qualitative assessments, 360 interviews, written behavioral action plans, milestone meetings with stakeholders, constructive actions, and accountability. We have a network of executive coaches throughout the U.S. All consulting and coaching services are guaranteed.
Expected outcomes
- Develop leadership capacity in areas that are key to each leader’s success
- Drive organizational performance through tactical execution, deliberate practice of desired behaviors, and focused strategic thinking
- Leverage each leader’s strengths and mitigate risks, so that each leader can increase the probability of achieving key organizational outcomes
- Increase retention of desired executive leaders
- Our clients have experienced up to 1,200% return on investment, up to 60% increase in productivity, and up to 300% revenue growth. There are 100+ client testimonials at action-learning.com and on social media. Your outcomes need to be defined.
Next steps
- For products and services visit action-learning.com
- To schedule a meeting or conversation contact:
Doug Gray, PCC doug@action-learning.com at 615.905.1892 today
The bottom line
Action leads to learning.
All leaders require executive coaching at times.
Your most critical investment is to retain your desired employees.
What are you waiting for?
Download this list of services and investment levels now:
by Doug Gray | Feb 23, 2017 | Business, healthcare, Leadership, Leadership Coach Nashville, Managers, organizational leadership, physicians, positive psychology, strengths, talent assessment
Leaders practice leadership, just as physicians practice medicine. Here are some details.
Health Care Consulting and Leadership Coaching
We understand the challenges that executive leaders and physicians face. We are experts in individual and organizational behavioral change. Since 1997, we have consulted with hundreds of leaders using the 3A process of (1) assessment, (2) constructive actions, (3) accountability. Our purpose is to help leaders flourish as they achieve business outcomes.
Theoretical models
1. Positive psychology (PP) can be defined as the science and practice of well-being or flourishing. Prior to 1998, over 70% of psychological research focused on mental illness. Since 1998, a better balance has resulted from new scientific studies in mental health.
2. Psychological capital (PsyCap) is a developmental state comprised of hope, efficacy, resilience and optimism. Our research confirms that PsyCap can be developed, and explains up to 71% of engagement scores and 65% of job satisfaction scores.
Value to you
• Modeling evidence-based practices in behavior change
• providing a confidential assessment of individuals and teams
• adding a third party, objective, supportive perspective to your leadership team
• increasing accountability of each leader’s personal and professional goals
• improving specific skills related to each leader’s role, such as supervisory or managerial skills, interpersonal communication, executive presence, conflict resolution, productivity
• sharing world-class techniques from superb organizations that have done similar work
• reviewing strategic business decisions related to operations, customer service, marketing, management or financials
• being a sounding board for communication issues
• preventing problems, thereby avoiding more expensive, time consuming or embarrassing actions
• supporting each leader’s growth past any limiting beliefs
Our scope of services
Individual executive leadership coaching typically requires at least 6 months of engagement for over 40 hours. All coaching service levels include an intake session, individual quantitative and qualitative assessments, 360 interviews, written behavioral action plans, milestone meetings with stakeholders, constructive actions, and accountability. We have a network of executive coaches throughout the U.S. All consulting and coaching services are guaranteed.
Your expected outcomes
Develop leadership capacity in areas that are key to each leader’s success
Drive organizational performance through tactical execution, deliberate practice of desired behaviors, and focused strategic thinking
Leverage each leader’s strengths and mitigate risks, so that each leader can increase the probability of achieving key organizational outcomes
Increase retention of desired leaders
Our clients have experienced up to 1,200% return on investment, up to 60% increase in productivity, and up to 300% revenue growth. There are 100+ client testimonials at www.action-learning.com and on social media. Your outcomes need to be defined.
Your next steps
For products and services visit us a twww.action-learning.com/action-leadership-store/ or here
To schedule a meeting or conversation contact:
Doug Gray, PCC here or call 615.905.1892
The bottom line
Action leads to learning.
All leaders require executive coaching at times.
Your most critical investment is to retain your desired employees.
What are you waiting for?
Download this list of services and investment levels now:
by Doug Gray | Jan 22, 2014 | change, Coaching, Employment, healthcare, Leadership, Managers, organizational leadership, Personal Development, positive psychology, Sales, Success, talent, talent assessment
Doug Gray, PCC, is a Leadership Consultant and Executive Coach.
Coaching and Consulting Experience
Since 1997, Doug has partnered with hundreds of executive leaders in the Healthcare, Energy, Manufacturing, IT, Construction and Financial industries. He is quick to say that he has “just enough expertise to support leaders, without too much complicating industry-specific knowledge.” His clients agree. Doug typically uses customized assessments to assess organizational and individual strengths. A popular speaker and facilitator, Doug loves to facilitate experiential leadership training programs and strategic planning retreats. His recent speaking topics include “How to Apply Positive Psychology to your Business” and “How to Increase Employee Engagement.”
Doug knows how to manage and lead teams. Doug brings a unique background as an educator, administrator, and non-profit director to his clients. That background enables him to help leaders who are passionate and need his direct, supportive expertise. He is regarded as an expert facilitator using Action Learning methodology. And he will bring strategic focus, humor, and proven expertise to maximize your consulting investment.
A representative list of leadership coaching engagements and clients include:
- CFO and 20 leaders in finance and accounting, Fortune 500 energy construction company, who needed to embrace a redesign without losing productivity
- team of EVPs tasked with redesigning the IT needs of their F100 healthcare company
- MD struggling with burnout who needed confidential consulting (e.g. anonymity from his employer and insurer)
- CEO in a technology company recently promoted to replace the founder
- President and 18 members of executive leadership team, Fortune 500 energy construction company, who needed to demonstrate alignment within 6 months
- SVP and site managers at a nuclear power construction site who needed to increase alignment with business partners and avoid negative media
- SVP in functional but de-centralized group who needed to assimilate 20 leaders, using action learning methodology in direct meetings, coaching, and SharePoint to drive accountability
- Small business owner of a franchise who needed to fire an employee after 11 years of good service
- SVP, global bank, who needed to reorganize a division
- VP, global bank, seeking career opportunities
- newly hired VP who needed to develop radical transformation of a functional group that required external coaching and team building leadership training using a customized app
- Newly promoted director who lacked interpersonal skills to manage 33 people
- Founder of an IT company who was not able to develop new business
Business/Organizational Leadership Experience
Doug has been a successful business owner since 1997; he knows the challenges and “what works.” He co-developed the Leadership Development Institute at the University of Maryland, College Park and taught there for 7 years, and he is a former adjunct faculty member at several colleges including NC State University. He directed a non-profit agency in Washington, D.C. for 9 years and grew it 900% while managing 120 people. As a former world-class athlete, Doug knows that the rigor of change requires regular support from experienced consultants, plus a dash of humor.
Education and Training
Doug’s graduate research at Dartmouth College included development of an assessment to determine risk tolerance and risk aversion. That theme of mitigating risk in business and leadership has prevailed in his continued learning from clients and colleagues in the safety, consulting, executive assessment, and leadership development industries. He is certified in the Hogan suite, DISC, several 360’s, several EI assessments, and 5 coaching certification programs. Since 2000, Doug has been a Professional Certified Coach (PCC) with the International Coaching Federation. A perpetual learner, he is a doctoral candidate at the Chicago School of Professional Psychology in Organizational Leadership. His research interests include the effect of positive psychology on business leaders, managers, and executive coaches.
Publications and Appearances
Doug loves to share his expertise as a speaker, facilitator and a writer. As a keynote speaker, he has addressed annual meetings, executive retreats, and nonprofit leaders. As a facilitator, he has partnered with clients to design experientially memorable leadership training solutions that range from boot camps to strategic off-sites to contests using customized mobile apps. As an author, he has frequently been published in journals ranging from the American Society of Safety Engineer’s Professional Safety to Financial Advisor to webinars and hundreds of guest blogs.
He is a published author of articles on leadership development, physician burnout, healthcare, analytics, safety and productivity. Doug has published two books: Passionate Action; 5 Steps to Creating Extraordinary Success in Life and Work (2007), and Adventure Coaching; A Guidebook for Action-Based Success in Life and Work (2006) that can be purchased here and here.
Consulting Value Proposition
“Developing smarter leaders. Faster.”
Doug will not waste any of your time or resources. He expects you to achieve great results. And he always guarantees exceptional value.
Call him now at 704.995.6647 or contact us here or schedule your initial consultation here.
For biographies on other Action Learning Associates, Inc leadership consultants and executive coaches, contact us here or review the list of our partners here. We also provide scaled solutions for any-sized organization, anywhere in the world.
by Doug Gray | Jul 29, 2013 | action learning process, Business, change, Coaching, Leadership, Managers, Meetings, money, organizational leadership, Personal Development, Sales, talent
Action Learning is a behavioral change process model that works 1) for groups and 2) for individuals.
For groups, Action Learning occurs when stakeholders use real problems to acquire learning and implement system-wide solutions.
For individuals, Action Learning is a behavioral coaching methodology that applies the same 4 steps.
The Action Learning change process model includes four steps:
1) decide what breakthrough requires you to invest resources,
2) act with a talented, cross-functional team and executive endorsement,
3) reflect on steps achieved, and
4) connect or expand the results across business or functional lines, to new markets or clients.
We have facilitated organizational Action Learning change using both virtual and direct processes:
1. Technology processes: SharePoint, Action Item task lists, virtual teams, e-coaching and e-consulting, digital consulting and short implementation teams.
2: Direct meeting processes: assessments, facilitation in a series of workshops, coaching and consulting, project initiatives, leadership off-site retreats, strategic reorganization
For a summary of consulting fees and investment levels for organizations click here, and for individuals click here.
Our Services typically include:
Assessments (e.g. individual, group, organizational, strategic)
Qualitative or Quantitative 360 assessments
Organizational Culture Assessments
Leadership competency assessments
Leadership consulting and behavioral coaching (e.g. individual, team or group levels)
Strategic planning and organizational redesign
Videography
Shadow Coaching
Facilitation, training, retreats or workshops
The result is that the Action Learning process helps individuals and groups become true learning organizations.
What are you waiting for?
Download this list of services and investment levels now:
Please contact us or call immediately at 704.995.6647 or schedule your initial consultation here.
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