Sometimes, even the coach needs
coaching. CEO coaching is an integral
step to change an organization for the better. After all, change must start at the top,
and the top should recognize strengths and,
more importantly, weaknesses that a company must overcome to compete effectively
and grow.
“A lot of times, CEOs are experiencing a
level of pain or are looking to raise the bar,”
says Bill Willbrand, member, Brown Smith
Wallace LLC. “They know something can be
improved and realize they have to change to
accomplish that.”
Accepting that change is necessary in
order to boost the bottom line, attract talent,
fix or streamline an operations problem,
expand the company, or attend to any number of areas in a company. How you effectively work with a “coach” or adviser to
embrace and execute change in the organization is the key, he says. Like therapy, the
first step is to admit there is a problem or
opportunity, and then be willing to take
sometimes-uncomfortable steps to change.
Smart Business spoke with Willbrand and
John Wunderlich, a senior consultant with
Brown Smith Wallace, about the benefits of
CEO coaching and how change effected
from the top can reignite employee morale
and jump-start a company’s performance.
How does a CEO know when to seek coaching
and execute change in the business?
You may have been focusing on growing
the top line, and your bottom line doesn’t
budge or it drops or moves up imperceptibly, and something inside you says, ‘Wait a
minute. We work so hard, and we increased
our revenue 50 percent compared to last
year. This doesn’t make sense.’
Another sign that you may need a coach to
help you ignite change is the loss of a key
person in the organization that has been
with your company for a long time. Maybe
two or three managers leave before you
wake up and realize there is a trend occurring. It means that something is rotting at
the core of the organization.
Or, you may seek a coach to assist with
succession planning, which involves quite a
bit of change as you prepare the company to
pass down to another generation or to sell.
What steps should a CEO take after identifying a problem?
First, you must really want to embrace
change, and recognize that if you continue
to do the same things, you will get the same
results. Also, it’s important for most CEOs
and their employees to get some instant
gratification — fast results, whether
improved sales, more efficient operations or
a happier work force. CEOs need to seek
out the ‘low-hanging fruit’ to get momentum
going.
The best framework for moving forward
with a plan to change is to get all key people
on board. This includes managers and
employees who play critical roles in your
operation. For instance, a manufacturing
company may invite a shop worker who
knows the operation in and out to the table.
During this initial meeting, which generally
should be off-site, initiate a mini-strategic
planning session where strengths and weaknesses are identified. The weaknesses are
actually the most important. A company
that can successfully address weaknesses
head-on and overcome them will improve.
How can a CEO measure the success of new
initiatives?
You must identify the critical success factors for your organization. A critical success factor is any measurable occurrence that
must happen for a project to meet its goals
and objectives. These factors revolve
around your organization’s strengths and
weaknesses.
For instance, if your production lines are
not as efficient as they could be, a critical
success factor is to manufacture more
products with less manpower in less time.
Then, you establish key performance indicators (KPI), which are leading indicators.
These are real-time measurements, such as
how many products are produced per
minute. By measuring KPIs and setting
goals, you can evaluate your progress
toward improvement.
This manufacturing example can be
applied to any industry. The change process
is different for every company — and so are
the critical success factors and KPIs. Also,
KPIs and critical success factors will
change over time — this is a fluid process.
The nice thing about KPI is that you are
measuring performance during the process
rather than after, like in accounting when
you reflect on past numbers and make historic observations. Because this method of
tracking and measuring success is ‘right
here, right now,’ you always know where
your company stands.
How will the CEO know if the rest of the
organization is embracing the plan?
The most obvious sign is meeting goals
and driving key performance indicators.
Your measurements should tell you
whether your company is headed in the
right direction. Also, as you delegate roles
to managers and employees, and everyone
in the organization gets involved in the
process, you will find that you have more
time to plan and strategize what’s next. If
you can take a vacation, are having more
fun at work and are putting out fewer fires,
the business is running behind you and supporting you. The plan is working. You
should notice improvements in your organization within 60 days if your people are
truly embracing change.
BILL WILLBRAND is a member at Brown Smith Wallace LLC. Reach him at [email protected] or (636) 754-0200.
JOHN WUNDERLICH is a senior consultant at Brown Smith Wallace LLC. Reach him at [email protected] or (636) 754-0214.
