by Doug Gray | Jun 24, 2015 | Business, change, Coaching, Leadership, Managers, money, physicians, Success, talent, talent assessment
There is chaos in the executive coaching and leadership consulting industry.
The top 6 reasons for that chaos include 1) low barrier to entry by anyone who chooses to call himself an “executive coach,” 2) low accountability for the coaching process, 3) unclear business agreements and ROI, 4) proliferation of “certification programs” (often by self-congratulating organizations and/or universities that respond to perceived market opportunities), 5) digital overwhelm of choices at low cost and variable quality, and 6) clients or buying agents in organizations who fear taking action. My opinion is that the chaos in the coaching industry can be reduced.
So here is my effort to reduce the chaos, by providing fee ranges and best practices. Please forward this page to your colleagues.
1. Individual Coaching or Consulting Services. Fees range from $3,000- $50,000 for 6 months. Individual coaching may be defined as a customized leadership development process that enables leaders to practice new skills or behavioral outcomes. Individual consulting may be a more directive style, where we provide expertise based on world-class examples or evidence-based recommendations to accelerate your leadership development. The average executive coaching engagement is $25,000 for 6 months, about 40 hours. The average small business coaching engagement is $6,000 for 6 months, about 18 hours. Typically, an individual coaching process includes an intake, meeting with key stakeholders, written action plan with behavioral outcomes, clear measures of success/ KPIs, quantitative and qualitative assessments, satisfaction survey, and demonstrated behavioral outcomes at completion. Be wary of anyone who offers a term of engagement shorter than 6 months, because behavioral change takes time. Be wary of anyone who provides an hourly rate, because that is a transactional approach and it may be unethical (Do I really need to extend this coaching engagement if we have not met the desired outcomes within 6 months?) Be wary of additional fees for assessments, a sample intake, books, materials, or excessive travel… Only select coaches who provide tremendous value and exceed that promise. Only select coaches who guarantee results for their services. Only select coaches with many testimonials demonstrating clear behavioral outcomes. Still confused? Then call us for details or schedule a complimentary, confidential session here.
2. Team Coaching or Group Coaching. Fees range from $1,000 per person to $4,000 per person for 6 months. There is a trend toward providing coaching services that bundle clients together by team (e.g. the IT department in Houston) or by group (e.g. all district managers or all newly promoted supervisors.) Many coaches bundle these services for one reason– because the coaches then make more money. We all need to make money. However, that is not a compelling reason to bundle valuable services into a commoditized market such as “online team-coaching modules…” We do not recommend these online modules because there is no evidence that the results are significant. There is conflicting data on the significance of team coaching engagements. These programs must be customized for specific organizational needs, they must have executive sponsorship, and they must have milestones for phases of success. Yes, we can provide team coaching programs for any organization. Contact us for details or referrals.
3. Organizational Coaching or Consulting Services. Fees range from $15,000- $100,000 per person for 6 months. Fees vary by role of the leader (c-suite or a HiPo), geography (Asia or North America), and client expectations. There is massive value to any organization if you can be guaranteed access to pre-qualified coaches in New York as well as Mexico City or Paris. We are affiliated with CoachSource, the largest global provider of executive coaches, in over 1,000 in 45+ countries. These service providers can provide breadth for any initiative in any geography, thereby increasing the likelihood of your organizational alignment or new program implementation. If you are interested in a scaled solution for a specific industry or business need, then you need to select an organizational coaching service provider. We have selected and managed hundreds of executive coaches at multiple F500 global organizations since 2005. Contact us for details.
4. Organizational Assessment Services. Fees range from $500- $28,000 per person. Assessments range from an individual validated tool such as the Hogan Suite or DISC (there are over 15,000 validated assessments) to multi-rater, multi modal assessments with high predictive validity. We can provide virtually any individual or organizational assessment. Assessments are essential to leadership development. Just as you would never go to a physician until the nurse provides your vitals, we recommend using validated assessment tools to measure behavioral changes over time. We often provide assessments by themselves for your new hires or a newly promoted leaders. We always include assessments in coaching solutions, as part of the process. Contact me for details or referrals.
Since 1997, we have seen tremendous changes in the business and leadership coaching services industry. As a timely example, minutes ago I received a cold call from a “leader” in the sales coaching software industry. I quickly learned that he knew less about the industry than he should, and I excused myself from the call. You can avoid the chaos.
If you are interested in seeing trend survey reports from the coaching industry, or from our research on the relationship of positive psychology on business leaders and executive coaching, please contact us.
Now you have some pricing numbers and best practices. So what is your next step?
- You have to vet coaches. Call 3-4 of the best. Read their testimonials. Make sure that they are working on their own professional development. I have hired sales coaches at times. And business coaches at other times. The terms were clean. Their value was tremendous. I currently work with 2 of the best coaches in North America. (Perhaps I need more help than most people.) Make sure the consultants that you select focus on value, and guarantee their work.
- Take a small step: Contact us. Or call 704.995.6647. Or schedule your initial consultation here.
There is no reason to be fearful amid the chaos.
by Doug Gray | Jun 22, 2015 | change, Coaching, Leadership, Managers, strengths, talent
Hello friends,
I thought you may want to see some recent trend data for external coaching and internal coaching, by industry and size of company.
Highlights:
- After the recession, companies are investing more than ever in leadership development and key talent, with both external and internal coaching
- 39% of these 140 companies use internal coaches for leaders who are lower in the organization, and over 75% use external coaches for their senior leaders (directors and above)
- The top 3 types of coaching remain 1) development-focused coaching, 2) performance-focused coaching, and 3) 360 debriefs
- Fees invoiced at a standard or fixed rate per engagement, rather than an hourly or variable rate, have increased from 26% in 2012 to 38% in 2014
- Hourly rates for executive coaching range from $600+/hour for CEOs and direct reports to $300/hour for directors and above; naturally, those rates vary by size of the company, industry, and level of the leaders
- The top 3 topics covered in coaching engagements have not changed for many years; they include: 1) executive presence/ influencing skills, 2) relationship management, and 3) leading teams and people development
If you should have any questions, please let me know.
Doug Gray, PCC, CEO/Founder www.action-learning.com
2014_TCB_Executive_Coaching_Survey
by Doug Gray | Jul 19, 2014 | Business, change, Employment, Leadership, Managers, published articles, safety, talent
I have been asked to submit 6-8 articles for publication in Professional Safety, the professional journal for the American Society of Safety Engineers.
Here are the published titles from 2014:
1. “Succession Planning 101.” March, 2014. p. 35. PS_Article_SuccessionPlanning_3.2014
2. “Trends in Safety Leadership Coaching.” May, 2014. p. 35. PS article Trends 5.2014
3. “Smartphone Apps; Making Smart Job Decisions.” June, 2014. p. 46-47. PS Article Apps 6.14
Please forward these articles to your friends and colleagues.
Then call me to discuss best practices for your business or your self. Initial consultations are free. Contact us here.
by Doug Gray | Jul 19, 2014 | Business, Coaching, Leadership, Managers, Meetings, safety, Success, talent
Yesterday I was asked to “step in” as a speaker for the Tennessee Safety Congress on Monday, July 21, 2014 in Nashville, TN, at the Opryland Conference Center. Today is Friday. I said, “Sure. Glad to help.”
The title is “Trends in Safety Leadership” and the main points include data and examples on 1) Frontline Decision Making, 2) Privacy and Control, and 3) technology.
The powerpoint content is located here: TN Safety Congress
Share this slide deck with your colleagues and friends, then contact us.
I have also added content from recently published articles in Professional Safety, the Journal of The American Society of Safety Engineers here for your convenience.
Initial consultations are free. Please give me a call at 704.995.6647 to discuss trends at your business.
I would love to learn what you need!
by Doug Gray | Mar 20, 2014 | Business, change, Leadership, Managers, money, Personal Development, talent, talent assessment
This article was published in the March, 2014 issue of Professional Safety magazine, at their request.
Here is the pdf for you to share with others: SuccessionPlanning PS 3.2014
Here is the article:
At a recent ASSE meeting I asked, “What is your leadership succession plan?”
After a blank stare from several members I heard:
“We don’t have one. What is it, exactly?”
“You’re looking at it. I’m all we’ve got.”
Safety professionals are not alone. Let me explain what succession planning is, and provide the 5 steps you need to develop a succession planning process.
Definition
Succession Planning can be defined as a process for identifying and developing key leaders within your company. The primary purpose is to increase engagement and retention by providing a career ladder. Some people talk about “bench strength” as if it is a number- how many people do we need to replace the “first string” or senior team in the “hit by a truck and all down scenario?” (Sorry for such a morbid view for safety leaders.) Another purpose of succession planning is to create a talent development culture that affirms individual strengths and develops competencies that drive results. For instance, if you need more safety leaders with business development expertise to review proposals, then you would consider including the safety leaders on sales calls. Over time you would promote the best safety leaders who also generate new business.
Trends
By 2020 some 25% of the workforce will be baby boomers, over age 65, called the “silver tsunami.” These boomers may not be able to afford to retire. Sadly, the average retiree in the U.S. has a median household net worth of less than $190,000. And men will live to 86 years of age. Your senior leaders may be forced to continue working. Your younger safety leaders may become so discouraged that they take other positions in related fields in order to make more money or develop their careers. Look closer to home for trend patterns: There is a dearth of ASSE members in that 25-50 age cohort. Some job sites look more like country clubs- dominated by silver-haired veterans and young workers. Too many companies lack mentoring or coaching programs. My conclusion: there is a tremendous need for simple, effective succession planning processes.
How to create a succession planning process?
Imagine a wheel with 5 spokes, or a calendar item that tickles you every 5th month, or assigning these 5 steps to 5 different people. These are the 5 steps in an ongoing succession planning process:
1. Identify key roles (such as managers and above) that may require replacement in the next 3 years. List each role and each person.
2. For each role, list the job competencies and personalities that are a) required and 2) recommended. Keep it simple. Lean on your HR colleagues. Solicit updates from those in the role. We know that the best workers compensation people, for instance, have a high attention to detail. If uncertain, or if you desire confidential expertise, hire an external vendor like us.
3. Assess your current people based on their a) status now (e.g.: ready now, development needs defined, development needs to be defined) and b) potential (e.g.: skills, ability, longevity, health, etc.) Then list concerns for each person such as job performance, health risks, medical needs, family concerns, job potential, or ability to travel. Create a database or flow chart.
4. Identify a pool of potential talent. Great people are everywhere. “Talent scarcity” is a myth perpetuated by managers who choose not to invest in their people. Your primary talent pool is internal; your secondary talent pool is external. Please hire internally. Internal promotions lead to higher levels of retention and engagement at lower cost. External hires typically cost more and drive conflict (which can be a necessary motivator at any company.)
5. Use progressions of experiences to actively develop key people so that they can be “ready now” for advancement. Succession planning is not a checklist or software package. It is a series of meaningful experiences. For instance, action learning teams of cross functional managers may be selected to develop a breakthrough product. High potential managers may be tasked with a business development opportunity or leadership training experience. Senior leaders can be partnered with 3-4 “hi pos” for quarterly mentoring sessions. Note that none of these experiences is expensive. For expertise contact any external vendor with experience in succession planning and leadership development experiences. Avoid wasting money on events.
Review your metrics
You all know the value of “What gets measured leads to results” attributed to Peter Drucker. You need to know the corollary, “What gets rewarded gets repeated.” There are two parts to that maxim. If your reward compensation is not tied to succession planning, then you are wasting your time and resources. As a graphic example, one CSP recently told me about a company where they were tasked with setting up goals on an annual performance review sheet. But they did not need to ever attain those goals. If they completed the sheet they were rated “satisfactory.” They were measuring the wrong metrics. Good people left. They wasted time, money and careers.
A better metric for effective succession development is the % of vacancies that are actually filled with internal promotion vs. external hire. Your job as a leader is to encourage people to stay in your company. They must believe in your “leadership pipeline” or “career development ladder.” Pick your metaphor. In fact, at some publicly traded companies, if 45% of the promotions are external hires then it begs questions about the quality of the senior leadership team and the board. You should be developing people, not hiring externally.
The bottom line? You only have 3 options for succession planning:
1. develop succession planning internally
2. develop succession planning externally
3. ignore the inevitability with a “wait and see” approach
In reality, you only have 2 choices if you have 20+ employees. See options 1 or 2 above.
A coaching question to leave you with is: How are you identifying and developing your best people?
Bio: Doug Gray, PCC, is a leadership coach who helps safety leaders develop and retain their leaders. Reach him at 704.895.6479 or www.action-learning.com
by Doug Gray | Jan 28, 2014 | book review, Business, Coaching, global, Leadership, Managers, strengths, talent
Diversity in Corporate America.
I recently did some research on trends in diversity and leadership coaching. As you may know, an international assignment is often mandatory for high potential employees in global companies. Recent research indicates that corporate leadership teams with more diversity yield higher shareholder values. Initiatives within companies designed to identify and promote internal talent lead to higher retention and engagement rates. Global markets require experienced leaders. Many companies want to increase cultural diversity for the employees who are relocated, and for those in the host culture. There is a subset of executive coaches who specialize in supporting the diversity goals of those companies. That subset is called “diversity coaches.”
One article is an interview with Bo Razak, a senior consultant and diversity coach, conducted by Wendy Conklin, editor of The Diversity Factor (2006.) Razak specializes in diversity issues, and developing leadership skills that can support organizational missions such as increasing diversity awareness.
Razak states that executive coaching “for diversity” narrows the focus or framework to specific leadership capabilities that support the leader in developing his or her capacity to incorporate diversity into all aspects of work (37). Also, the coaching engagement may be shorter term than another executive coaching engagement. The diversity coaching engagement may focus on “leading by feeling” so that members of subordinated groups may feel supported with examples of empathy, or awareness of group identity and its effects.
Group identity is so central to Razak’s description of diversity coaching that I include his explanation. “Everyone has multiple group identities, including age, ability/ ableness, class, education level, ethnicity, gender, gender identity, nationality, race, first language, religion / spirituality and sexual orientation. In organizations and society, the extent to which we are aware of the meaning and impact of these identities is key to understanding the impact of diversity and changing the status quo.” (38)
Razak describes 4 critical factors for diversity coaches.
1) The primary factor is organizational support for diversity coaching, and diversity issues, that are tied to compensation rewards. He states that leaders need to adopt a “diversity lens” and become inclusive in language, action, and words.
2) Leaders need to become comfortable with a common language that is inclusive and enables them to discuss words like “gender” and “sexual orientation” in any strategic or operational discussion,
3) Leaders must pay attention to the dynamics of difference, and multiple perspectives from multiple group identities, by engaging a broad range of perspectives.
4) And leaders must actively solicit feedback on how they are embracing the capabilities of diversity, and make open statements that reflect awareness of multiple perspectives.
My takeaways from this article include the following:
1) My 25 year-old nephew was recently promoted into a role that required an international assignment. That experience is exciting for him, and he is young for such an assignment. I cannot imagine that he will eagerly embrace that culture; he would benefit from such a diversity coach.
2) Diversity coaching requires a systems approach to others. The coach must be aware of the layers of corporate expectations. The leaders/ coaching clients must be willing to engage in anything called diversity coaching. If it is an EEO requirement for compliance, or an extension of a training, those requirements may minimize the impact of diversity coaching. Razak states that compensation must be tied to behavioral outcomes based on the diversity coaching. That point reminds me of Peter Drucker’s maxim that “what gets rewarded leads to results.”
3) Selecting and matching coaches with leaders/ coaching clients requires a high level of awareness of group identity. But there are no rules. It may be ideal to match people from dramatically different group identities in order to be more effective. For instance, if I were being coached by a Hispanic, lesbian woman from Brazil, and I am a Caucasian, heterosexual male from the U.S., we may be well matched. Or it may be a setup for failure.
4) Diversity coaching may be a shorter-term engagement than executive coaching engagements. However, the effects of diversity coaching may be more anecdotal than measurable, and longer term rather than shorter. And in a country that is more ethnically diverse, such as Canada, diversity coaching may be more effective than a country that is more ethnically homogenous, such as Japan.
Conklin, W. (2006). Executive Coaching for Diversity: An Opportunity for Leaders to Learn and Change. Diversity Factor, 14(2), 37-42.
What are some of your takeaways from this subject?
Call me or contact me to discuss them today.
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