Operating a profitable business can be a very tricky responsibility at
most times. Despite the stress on strong team culture and the necessity to
maintain dialogue with colleagues, leadership often proves to be a very lonely
job. Not only is it difficult to identify the correct choices and decisions, at
critical times like a merger or an acquisition, it becomes increasingly challenging
to maintain a healthy and normal working relationship with the employees.
In trying circumstances, the CEO of an organization can be hugely
benefited by working with a professional coach. While discussing the role of a
CEO, it is important to realize that a business executive has to learn the
ropes of the business world by observing both the functioning of organizations
and the actions of successful business leaders. Since there is no rule-book for
a CEO, one can only depend on professional guidance from associates and
employees, or family and friends. However, to be effective as a CEO, it is necessary
to achieve continuous growth beyond the personal comfort zones. And this can be
attained through the help of a CEO Coach.
However, before a CEO Coach is even consulted, it is important to assess
whether the CEO really needs a coach. A Coach can be hired at any stage during
a business, but it is important that the CEO feels the need to be guided. If
the CEO is feeling like he/ she is stuck in a rut, and unable to make new
decisions without some new challenges and motivation, then it is time to hire a
CEO Coach to change the situation. There are some questions that a CEO must be
able to answer in the affirmative before he/ she hires a coach.
The first question would be: Is the CEO ready to bear the additional
expenses? Hiring a Coach would mean an automatic burden of extra cost. There is
really no point in hiring a Coach if the CEO is only going to see him/ her once
a week or so. In that case, the CEO is going to wonder why he/ she is paying
someone just to be asked a set of questions every week.
The second question would definitely be: Is the CEO really prepared to
go that extra mile? The Coach is going to push the CEO constantly between
meetings, to make new decisions that would improve productivity in the
organization. If the CEO is not willing to make decisions without reservations,
then all that coaching can hardly be considered a success.
The third question is: Does the CEO have any issues regarding objective
feedback? The Coach would not hesitate to point out to the CEO the follies of
his/ her wrong decisions. The CEO has to keep an open mind in order to receive
those feedbacks. If the CEO is not ready to accept blunt criticism, then maybe
he/ she is not yet ready for some real coaching.
The last question, and undoubtedly the most important one, is: Does the
CEO have any reservations about discussing his/ her problems with others? No
matter how good a Coach is, not much progress can be made if the CEO is not
willing to open up about his/ her personal reservations. There should be open
discussions about the follies of the CEO’s past decisions and why those did not
work out. There has to be free exchange of ideas between the Coach and the CEO
regarding what might have clicked in those circumstances. If a CEO is willing
to accept his/ her mistakes and work towards correcting those, it is easy for
the Coach to show him/ her the steps that need to be taken in order to overcome
those pitfalls of management.
When a CEO trusts his/ her Coach and is willing to work towards
overcoming his/ her obstacles, only then the coaching can be considered to be
an absolute success. The primary benefits that are obtained from successful
coaching sessions include:
1. CEO Coaches can provide objective advice.
Often, situations may arise that can force a CEO to behave unusually.
Any crisis may put immense pressure on the CEO, and confidentiality issues prevent
him/ her from sharing the concerns with an employee. At times like this, a
group may feel excluded, unable to identify with the actions of their leader. A
CEO Coach, in such circumstances, will be able to understand the politics and
dynamics of the organization, and yet remain uninfluenced by it, so as to be
able to guide the CEO in an objective and unprejudiced manner.
2. CEO Coaches are not emotionally or financially
attached to your business.
Managing a business can create a bond of emotional and financial
attachment with it. Any significant corporate change can make a CEO react to it
personally, and thereby deviate from the business objectives. Also, when discussing issues with the staff,
the support teams will inadvertently focus on their needs rather than that of the
CEO’s. Although organizations promote balanced corporate management, natural
instinct leads employees to place their interests before those of the company.
As a result, a CEO can hardly get the required inputs from an executive
meeting. On the contrary, the primary job of CEO Coaches is to look after the
interests of the CEO. You can therefore be assured of getting professional
advice that will help you reach your goals.
3. CEO Coaches can enhance personal development.
CEO Coaches play the role of a listener and an inquisitor. They test the
CEOs for their understanding of key issues, assess the potential strategies,
and review the proposed plan of action. CEO Coaches also act as a sounding
board, and allow business executives to judge their plans, reconsidering both
the pleasant as well as the unpleasant outcomes. In addition, by asking
questions other colleagues would deem too risky, the CEO Coaches can add real
objective value. Also, the personal flaws in a CEO such as the lack of
charisma, or the inability to effectively communicate his/ her ideas, can be
rectified by a coach.
4. CEO Coaches bring together a broad knowledge
base coupled with know-how of the industry best practices.
The process of “Incestuous Thinking” is often adopted by companies to
deal with situations of stagnant or declining revenues. This process entails
bringing together all the management teams and asking them for possible
strategies to meet the crisis. However, this process is nothing more than a
business cycle of non-growth. CEO Coaches, on the other hand, utilize their
knowledge and expertise to find the action steps necessary. Their leadership
approach can help integrate all the aspects of finance, marketing, sales, and
corporate strategy.
5. CEO Coaches can detect the problems with the
business model.
Often, higher revenue or profits effectively disguise any faults the
business model might have. If a growing company has the funds, the expenditures
and the strategies are generally not questioned. However, it has been noted
that departments can operate ineffectively at times of increasing revenues. A
CEO Coach can help identify the gaps in the business model, and assess them
efficiently so as to enhance profitability.
6. CEO Coaches can provide a higher return on
investment, together with increasing the business valuation.
CEO Coaches primarily take charge of driving the key business indicators
and the corporate decisions. These, both directly as well as indirectly, are
responsible for decreasing expenses, and increasing the profits. Also, no
matter what your business goals are, a CEO Coach can help increase the business
value by building a replicable and scalable revenue growth program. In
addition, CEO Coaches can put together a revenue capture process that will help
your business on a recurring basis.
Conclusion
CEO Coaches help business executives on the key issues and delicate
areas, using their knowledge, networks, and expertise. They teach the CEOs to
judge action plans, and make the correct decisions that will effectively move
the business forward. In fact, CEO Coaches can be referred to as the one step
that will help you go from being a good CEO to a great CEO.
Published by The 8020Strategy Group,