Coaching with a Purpose

TTI Performance Systems, Ltd. 4What isBusiness Coaching?The definition of coaching depends onwho we ask:“Partnering with clients in a thoughtprovokingand creative process thatinspires them to maximize their personaland professional potential.” 1“Executive coaching means regular meetingsbetween a business leader and a trainedfacilitator, designed to produce positivechanges in business behavior in a limitedtime frame.” 2“A short to medium-term relationshipbetween a manager or senior leader anda consultant (internal or external) with thepurpose of improving work performance.” 3Because very different coaching processesare used by sports coaches and personallife coaches, it’s important to distinguishbusiness coaching from those initiatives.While some sources still emphasize the useof business coaching as being just for leaders,an up-to-date definition acknowledges itsusefulness for staff at all levels.From a business perspective, theprimary purpose of business coachingis to improve employee performance inareas directly connected to achievinggoals that fuel company performance.Coaching ROI—TheConcrete Results ofSoft Skill MasteryMeasures of impact such as increased salesfigures, cost savings, reduced staff turnoverexpenses and other business results arehighly desirable indicators of coachingsuccess when they’re available and directlyattributable to the skill enhancement andbehavioral changes attained in the coachingprocess.But for many participants it is difficult todirectly connect company financial changesto coaching, especially in the short term. Inone global study of nearly 2000 coachingparticipants, only 40% were able to providedata to confirm that their company hadexperienced financial changes due tocoaching. But of those who did, the medianreturn was 700%, “indicating that typically acompany can expect a return of 7 times theinitial investment.” 4Considering that the benchmarks andassessments used in a best-practice coachingprocess are tools that market leaders alreadyuse, their cost effectiveness is superb. Theyassure that coaching stays job-focused,a crucial distinction that makes a hugedifference in ROI. “Typically, return oninvestment of job-related coaching is 8 to 1.” 5©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 4

TTI Performance Systems, Ltd. 5Participants report experiencing a chain of impact in whichimproved decision making, ability to delegate, managementexpertise, self-management and other aspects of performanceimpacts their teams, peers and direct reports, causing favorablebusiness outcomes. Coached employees often experienceimproved communication which then greases the skidsfor better collaboration; and as a result, for example,enjoy better team problem resolution or enhancedcreative innovation. As convincing as these experiences are forthe coachee and those around them, they don’t lend themselves tobeing easily distilled into metrics.A good indicator that coaching participants remain convinced of thevalue coaching returns is that “93% would recommend the type ofcoaching and specific organization that provided the coach.” 6Similarly, “96% of clients indicated that they would repeat thecoaching experience given the same circumstances that lead themthere in the first place.” 7Who Gets Coached?Who gets coached depends on the ‘why’ of coaching atthe organizational level. After all, if a course correction of aremedial nature is needed at the individual or team level to addressspecific problems, the recipients of coaching are already identified.By contrast, a proactive use of coaching in a high-performanceatmosphere starts with an examination of the organization’sstrategy for competitiveness. Simply put, the goal is to improveorganizational results by aligning individual performance withbig-picture strategy. Which company-wide performance goalsabsolutely must be accomplished in order to achieve growth?Who gets coached is determined by identifying the key individualswho can impact organizational goals by hitting their ownperformance targets. Does fulfilling the business’ strategic plancall for accelerating leadership development, assuring successionreadiness, or preparing high potential employees for advancement?The best practice process outlined here also addresses these needs.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 5

TTI Performance Systems, Ltd. 6It is important for leaders to be aware that until recently, thecoaching process was primarily identified as a solution for aderailing employee or other workplace problem, stigmatizingrecipients. As Figures 1 through 3 show, this is no longeraccurate, but perceptions sometimes lag behind progress.Figure 1 – Who Gets Coached?North American InternationalHigh potentials 59.5% 72.3%Executives 41.6% 53.1%Problem employees 37.4% 29.7%“Coaching, A Global Study of Successful Practices, Current Trends and Future Possibilities 2008 - 2018,” p.63,American Management AssociationFigure 2 – The Purpose of CoachingRespondents cited the following as frequently or a great deal being the reasonsfor implementing a coaching plan:North American InternationalTo improve individual performance/ 78.5% 87.3%productivity:To improve organizational performance: 55.5% 61.4%To address leadership development/ 62.7% 81.7 %succession planning:To increase individual worker skill levels: 60.3% 60.0 %To address specific workplace problems: 43.7% 37.7%“Coaching, A Global Study of Successful Practices, Current Trends and Future Possibilities 2008 - 2018,” p. 56,American Management AssociationFigure 3 – The Purpose of CoachingThe top 3 reasons coaches are engaged is to:48% – Develop high potentials or facilitate transition26% – Act as a sounding board12% – Address derailing behavior“What Can Coaches Do for You?” by Diane Coutu and Carol Kaufmann, HBR Research Report, January,2009, p.92, Harvard Business Review©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 6

TTI Performance Systems, Ltd. 7Early leadership and management communication can counteractthis perceptual roadblock to set the stage for coaching success.Establishing a positive context within the company culture assures thatcoaching is viewed as a growth-oriented process extended to importantcontributors.For employees at all levels, there is a profound difference betweenthe old-school “shape up or else” impetus for coaching and today’sguided and monitored growth process. The difference is substantialbefore the coach and coachee ever meet. Coaching for improvedperformance establishes a positive, incentivized experiencefor the recipient, grounded on improved performance whichcould lead to recognition and advancement. Given recentlimitations on salary increases and bonuses and widespread employerconcerns about a top performer exodus as more jobs become available,leaders who position coaching as the cultivation of high potential staffmay find that coaching helps to bond key talent to the organizationwhile boosting performance.How are Coaches Selected?Figure 4 - Criteria for Coach SelectionRespondents frequently or a great deal use:North American InternationalBusiness experience 68.4% 70.8%Recommendations from a trusted source 59.1% 59.1%“Coaching, A Global Study of Successful Practices, Current Trends and Future Possibilities 2008 - 2018,”p. 57 - 58, American Management Association“A full 50% of the coaches in the survey indicated that businessesselect them on the basis of personal references.”“What Can Coaches Do for You?” by Diane Coutu and Carol Kaufmann, HBR Research Report, January 2009,“How Do You Pick a Coach,” p. 96, by P. Anne Scoular, Harvard Business Review©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 7

TTI Performance Systems, Ltd. 8Criteria for selecting a coach varies, but most consider the followingbusiness experience: a relevant coaching specialization, priorexperience coaching in that area, industry experience specific tothe business at hand, or experience in business, law, HR, teachingor sports. Figure 4 shows that references from a trusted source arefrequently cited as well. This may explain why so many participants(93%) select a coach who is external to their organization. 8The Match is CriticalJust as performance success is directly related to the quality ofmatch between the employee and the job, the match betweenthe coach and coachee is critical to the success of the coachingprocess. Both the coach’s expertise and their ability to connectwith the coachee matter, as shown in Figure 5. In a 2010 HarvardBusiness Review report on coaching, “The survey data support thisemphatically: Willingness and good chemistry were by far the mostfrequently cited ingredients of a successful coaching relationship.” 9Figure 5 - Matching Coaches with EmployeesRespondents frequently or a great deal use:North American InternationalCoaches’ expertise or issue to be solved 73.7% 92.5%Personality as a criteria to match 45.5% 66.7%“Coaching, A Global Study of Successful Practices, Current Trends and Future Possibilities 2008 - 2018”, p. 49,American Management AssociationThis is consistent with a large global study conductedby the International Coach Federation in which 96%of respondents rated personal rapport, personalcompatibility and the coach’s confidence as three of thetop four critical considerations in choosing a coach. 10At first glance this may be surprising, but given the duration ofthe relationship and the up-close sharing of challenging worksituations, it is logical. Individuals need a high trust relationshipboth to rely on the coach’s discretion regarding confidential mattersand to take in and act on coaching feedback. This comfort level is so©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 8

TTI Performance Systems, Ltd. 9crucial to a successful relationship that it mayfurther explain the preference for a coachfrom outside the employee’s organization.The effectiveness of the coachingprocess (96%) rounded out the topfour considerations. The level of coachspecifictraining (89%) followed, withthe level of formal education/schooling(71%) trailing behind. This denotes lessfocus on traditional aspects of a coach’sbackground than on a relationship andprocess that can generate results. Providingan opportunity for the employee to meetthe potential coach and learn what processhe or she proposes is highly advisable. Ademonstrably effective process whichincludes measurements of success is theorder of the day. “Coaching people to breakold habits, stimulate creative thinking andestablish an integrated process that setsclear ways to achieve sustainable resultsand increased profits is essential to businessstrategy development.” 11 Given what is atstake, the importance of choosing acoach who is empowered with the bestprocess and tools and who can tap intothe participant’s drive to succeedis vital.Elements of theBest PracticeCoaching ProcessCoaching is traditionally based ontimely feedback, as the coach usesobjectivity and experience to guidethe employee from the sidelines whileevents unfold in the workplace. Thisinterchange is the heart of coaching. Bestpractice coaching has taken a big stepforward to situate this ongoing dialoguewithin a clearly defined framework frombeginning to end. This framework acts as aroadmap, assuring that the employee, themanager and the coach are united at keytouch points along the way.Each point is absolutely necessary forsuccess, because they serve to clarifyeveryone’s understanding of the specificareas where the employee needs to growin order to meet their goals. They also setshared expectations of the scope of thecoaching relationship, the employee’s actionsand how success will be measured. Usingthis framework, it is possible to measure theprogress of the coaching process. It requiresa job benchmark, a comprehensiveassessment of the person’s behaviors,motivators and personal skills and thedesired performance goals.Figure 6 - Coaching Key Process: Job BenchmarkKey Accountabilities Job Assessment Gap Action Plan Post-Assessment©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 9

TTI Performance Systems, Ltd. 10Key Point 1:The BenchmarkThe coaching process must stay focused on creatinggrowth that leads to superior performance. There are skills,attitudes and behaviors specific to every job that enable a person toreach the job’s goals. Leaders must ensure that the employee andcoach start with an analysis of the job’s requirements to plan theirwork together, as seen in Figure 7.Figure 7 - The Job Benchmark:A Picture of Ideal Performance64% of Best-in-Class companies develop profiles for ideal candidates and newjob roles based on forward looking business strategy.57% of Best-in-Class companies use competency-based assessments.“Competency assessments were the number one enabler ofworkforce planning identified by Best-in-Class organizations,demonstrating the importance of assessing against an agreed-todefinition of what success looks like now and in the future.”“Strategic Workforce Planning, Winning Scenarios for Uncertain Times” by Mollie Lombardi, Justin Bourke,January 2010, p.17 & p. 9, Aberdeen GroupThe job benchmark is a clear picture of what superior performancein the job looks like. It is the bedrock of the coaching process sinceit sets an objective standard against which the employee will bemeasured. TTI Performance Systems, Ltd. has created a patentedprocess designed to remove the common biases associated with lessdisciplined employment practices. It is a comprehensive, objectivedefinition of the job that exists independently of any one personoccupying the position, created by a team of subject matter experts.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 10

TTI Performance Systems, Ltd. 11Figure 8Key Accountabilities ExampleRegional Sales Manager• Manage sales force to deliver the sales/numbers and provide coverage for thelarger sales organization.• Develop business plans and key accountplans where applicable.• Demonstrate industry and marketknowledge, and implement/execute anengagement model for addressing theirlocal market.• Recruit, develop and manage a strongteam of talented product specialists.Includes providing coaching andleadership for their team members as wellas taking action/moving out people whoare not performing.• Educate the larger sales organization—teach people specifics about thetechnology that they need to know,conduct some sales training, and marketinternally to the larger sales organizationto create interest and enthusiasm.With the help of a trained facilitator, the teamof experts identifies and ranks the optimummix of behaviors, attitudes and personal skillsthat any person would need to reach superiorperformance in that job. They define,prioritize and weigh the key accountabilitiesof the position, as shown in Figure 8. “KeyAccountabilities are essential to superiorperformance and are the foundation of thejob benchmark. Similar to performanceobjectives, they are a more detaileddescription of why the job really exists.” 12When coaching is used to prepare ahigh potential employee for a lateralmove or advancement, the person mayalready be meeting performance goalsin the current position. In this case, thefoundation of the coaching process will be thebenchmark for the next job they are intendedto occupy. The focus of coaching will be toassure that they have the skills necessary toramp up quickly and be successful in the newposition, which may very well require newskill acquisition or at the very least, a higherlevel of mastery.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 11

TTI Performance Systems, Ltd. 12Key Point 2:The Pre-CoachingAssessmentWith the job benchmark established,the employee can now be evaluatedto get a detailed picture of how theirattributes match the job’s profile ofsuccess. A comprehensive assessmentshows the employee’s workplace behavior,what motivates them to action and theirlevel of mastery of 23 universally recognized,job-related personal skills listed in Figure 9.Since these factors are also the basis for thejob benchmark, comparing the employee’sassessment to the benchmark produces a gapreport which will serve as the basis for thecoaching process.The gap report shows at a glance whichskills the employee has already masteredand reveals which qualities are still neededfor success. “Identifying these gaps is thetop strategy identified by Best-in-Classorganizations for workforce planning, andcompetencies can play a large role in helpingto define, assess, and then plan to bridge anygaps between what types of employees will beneeded to drive the business forward in thefuture and the talent available today.” 13Producing growth in this gap area is whatbrings the employee’s performance in linewith the benchmark and with the company’soverall strategic plan. This is what makes itpossible to target the specific growth areasthat can reliably move the person towardperformance goals and to measure successfulprogress. For many participants, growth isjump-started by the immediate increase inself-awareness that the assessment debriefprovides. Because the goals of the coachingrelationship are generated from quantifieddata, the coach is empowered to deliverspecific, constructive feedback that ties backto the job benchmark and keeps the processon track.Figure 9 - Job-Related PersonalSkills for Superior Performance• Analytical Problem Solving• Conflict Management• Continuous Learning• Creativity/Innovation• Customer Service• Decision Making• Diplomacy• Empathy• Employee Development/Coaching• Flexibility• Futuristic Thinking• Goal Orientation• Leadership• Management• Negotiation• Personal Effectiveness• Persuasion• Planning/Organizing• Presenting• Self-Management (time and priorities)• Teamwork• Written CommunicationTTI Performance Systems, Ltd.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 12

TTI Performance Systems, Ltd. 13Figure 10 - MotivatorsUtilitarian: A drive for a practical returnon time or money spent to accumulatewealth and what is useful.Theoretical: A drive for knowledge,discovery and continuous learning.Individualistic: A drive for personalpower, influence and control oversurroundings.Aesthetic: A drive for beauty, form andharmony in objects, nature or experiences.Traditional: A drive for an orderly, wellestablished,unified structure for living.Social: A selfless drive to help others.Key Point 3:The CoachingAction PlanClearly communicating the purposeand goals of the coaching process isimportant to achieving a successfuloutcome. It’s essential that there is a sharedunderstanding in place for the coachee, thedirect manager and the coach so everyoneagrees on their expectation for progressand on what will signal a successfulcoaching initiative.Coaching Action PlanMeeting ScheduleTTI Performance Systems, Ltd.Figure 11 - BehavioralCharacteristics• Organized workplace• Analysis of Data• Competitiveness• Urgency• Customer Oriented• Versatility• Frequent Change• Frequent Interaction With OthersCoaching FeedbackSkill Acquisition GoalsGuided Learning GoalsDurationBusiness GoalsTTI Performance Systems, Ltd.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 13

TTI Performance Systems, Ltd. 14The Plan of Action should include thefollowing considerations:Meeting ScheduleWill the coach and coachee meet in-person,have scheduled phone calls or both? Willthey communicate between scheduledmeetings via phone or email? Althoughcoaching tends to be face-to-face (58% inNorth America, 80% Internationally 14 ),it can take place over the phone, via weboptions or as a combination of all three.Coaching FeedbackWhat kind of information will the employeeshare with the coach when seekingsituational feedback? How will feedback beprovided to the employee?Skill Acquisition GoalsBased on the gap report, which specificskills will the coach and coachee work ontogether? Improvement in these areas willbe a measure of progress.Guided Learning GoalsWhat specific training activities will theemployee undertake based on the gapreport? Since skill acquisition is practicebased,it is important that the employeecomplete learning modules to understandthe targeted skill but does so in tandemwith activities to practice them. Completionof these learning modules and activities is ameasure of progress.Progress CommunicationHow and at what intervals will progressbe shared with the person’s employer? Thiscould include the direct manager, HR and/or others, and it should include anagreement about what aspects of coachingconversations will be kept confidential.DurationOver what time period will the coachingrelationship be conducted? The end datewill determine when success is measured.Business GoalsWhat specific performance goals areanticipated to be impacted by the end of thecoaching process? These will be a measureof coaching success.With the Action Plan clarified,coaching harnesses an individual’sdesire to learn in ways that willimprove their performance andgives them the guidance to buildcompetencies by practicing themon the job. The personal skills requiredfor superior performance on the job maybe understood through a conventionallearning process, but they are only masteredthrough experience and practice. Becausecoaching provides feedback in real time asevents unfold, the person benefits from anaccelerated skill acquisition process.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 14

TTI Performance Systems, Ltd. 15Key Point 4:Post-coaching Assessment—The Concrete Results of SoftSkill MasteryDetermining the success of coaching depends on howclearly the status quo was defined and goals wereestablished at the beginning. Considering that precise aspectsof performance were targeted for growth, performance reviews orappraisals can be one source of confirmation that the coachee hasindeed improved. If the duration of the coaching relationship islong enough, the attainment of business goals such as improvedsales, cost savings or other productivity targets can be used. Thecoach, the direct manager and peers can provide observations ofenhanced behaviors (or the absence of undesirable behaviors) andexamples of increased demonstration of skill mastery, which can befurther confirmed using a 360 survey.Likewise, one tangible measure of coaching success is that thecoachee has met goals to participate in seminars, trainings orindividual learning modules that inculcate a deep understandingof personal skills and how profoundly they contribute to superiorperformance. 15 A motivation for continuous learning and a highlevel of personal accountability are two attributes that employersfrequently cite as highly desirable and necessary for success onthe job. High potential employees will have made the most of theopportunity to grow and will see it as the career-accelerator it is.But using a post-coaching assessment to analyze the effectof coaching on individual performance can be the mostprofoundly rewarding measure of progress, as it easilydemonstrates the areas where coaching has producedgrowth. The revised gap report produced by a post-coachingassessment is a detailed measurement of coaching success and isthe hallmark of a superior coaching process. According to a HarvardBusiness Review Report of January 2009, fewer than one-third©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 15

TTI Performance Systems, Ltd. 16of coaches provide any kind of quantitative data on behaviors. 16This is surprising, given the ease of doing so when a best-practicecoaching process is employed. Since the availability of businessintelligence metrics in other areas has turned the spotlighton coaching, this is the most logical, immediate method toquantify results.ConclusionBusiness coaching is more vital than ever for competitiveorganizations with a wide range of talent needs, from successionplanning and leadership development to aligning talent withthe strategy for boosting overall company performance. For thecoachee, the experience has transitioned from something one has todo to become something one gets to do and is the mark of a valuedcontributor. For the organization, job benchmarks in tandem withvalidated assessments and targeted professional developmentassure that coaching is on track to further the organization’sperformance going forward. The best-practice coaching processinfuses what is already a high impact relationship with clarity,focus and objective measures of success. In conjunction with goalachievement measures, this process readily demonstrates the powerof coaching to boost growth that elevates performance.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 16

TTI Performance Systems, Ltd. 17Endnotes1. International Coach Federation website:http://www.coachfederation.org/2. “2010 Executive Coaching Survey,” Special Reporton Earnings, p. 3, Sherpa Executive Coaching3. “Coaching, A Global Study of Successful Practices,Current Trends and Future Possibilities 2008 -2018,” p. v1, American Management Association4. “ICF Global Coaching Client Study,” Final ReportJune, 2009, p.78, International Coach Federation5. Bill J.Bonnstetter, TTI Performance Systems, Ltd.,http://www.ttiassessments.com/solutions/areasof-expertise6. “Maximizing the Impact of Executive Coaching:Behavioral Change, Organizational Outcomes,and Return on Investment,” by Joy McGovern,Ph.D., Michael Lindemann, Ph.D., Monica Vergara,M.A., Stacey Murphy, Linda Varker, M.A. &Rodney Warrenfeltz, Ph.D. The ManchesterReview 2001 Volume 6 Number 1, p.87. “ICF Global Coaching Client Study,” Final Report,June, 2009, p. 66, International Coach Federation8. “ICF Global Coaching Client Study,” Final Report,June, 2009, p. 32, International Coach Federation9. “How Do You Pick a Coach?” by P. Anne Scoular,p.96, January 2009, HBR Research Report,“What Can Coaches Do For You?,” HarvardBusiness Review10. “ICF Global Coaching Client Study,” Final Report,June, 2009, p. 38, International Coach Federation11. Society For Industrial & OrganizationalPsychology, Inc., http://www.siop.org/workplace/coaching/coaching_toc.aspx12. “Selecting Superior Performers Under the Law,”by Bill Bonnstetter, TTI Performance Systems,Ltd., http://www.ttiassessments.com/research13. “Strategic Workforce Planning, Winning Scenariosfor Uncertain Times” by Mollie Lombardi, JustinBourke, p. 9, January 2010, The Aberdeen Group14. “Coaching, A Global Study of Successful Practices,Current Trends and Future Possibilities 2008 -2018,” p. 54, American Management Association15. TTI TriMetrix Professional Development Plan, TTIPerformance Systems, Ltd., www.ttiassessments.com/solutions/products-and-assessments.16. “Does Your Coach Give You Value for YourMoney?” by David B. Peterson p. 93, January,2009, HBR Research Report, “What Can CoachesDo For You?,” Harvard Business Review©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 17

TTI Performance Systems, Ltd. 18About TTITTI Performance Systems, Ltd. is the worldwide leader in personaland professional assessment tools. With years of research andvalidation, TTI assessments are time-tested and proven to providetimely solutions for today’s business challenges. Through a networkof over 7000 Value Added Associates, TTI tools are utilized in over50 countries and 26 languages to help businesses and organizationseffectively manage their most valuable asset—people.From recruitment to retention, TTI Performance Systems is aconstant resource for new ideas and business applications. As aleader in the marketplace, we ensure the status of TTI assessmentsin the future by carefully managing our intellectual propertyand protecting the research and advancements TTI has made inthe field. With several patents, copyrights and trademarks, TTIproducts are guaranteed to stand the test of time. Our staff is anexpert resource in the assessment industry and continues to stayabreast of industry changes to enhance and expand the product lineto provide unique solutions for the challenges businessesface everyday.©2010 Target Training International, Ltd. 102110 Coaching with a Purpose: Is Your Coaching Job Related? | 18