This isn't just about succession in the family business; of course, that in itself is quite a challenge.

How do we as first or second generation owners get our sons and daughters ready to take over the helms of the business? Do they really want to? Are they competent enough to do it? These questions and many more often dominate your thoughts as you contemplate stepping aside and allowing the next generation to take over.

There are numerous issues and challenges facing the privately held family owned business when it comes to succession.

If you are not a family run business, you still are not home free. You face many similar issues and challenges centered on attracting and retaining top talent to insure your succession plans to carry on the business are successful. This isn't just about, "Who will be the next CEO."

Succession planning should be a critical core initiative in your strategic planning process for every key management position within your company. I have written numerous articles in the past on coaching and mentoring skills. These are very definitive skills that are a must for successful leadership. But, coaching and mentoring by you and your managers even if they have been trained, and the majorities aren't, may not be enough.

Coaching as a Best Practice

Many of the more successful companies recognize this challenge and are turning to a process (now an industry) that was once considered a fad or highly suspect with regard to the benefits provided. I am talking about executive coaching.

Executive Coaching is fast becoming recognized as a way to compliment and enhance the succession process at most executive levels. Although most executive coaching has occurred at the CEO and President level, companies are now beginning to realize the value provided at all executive management positions including team coaching. In fact, coaching now occurs at many levels in the organization including front line sales management.

Executive coaching may soon be entering the arena of "Best Practice" in this business century. Just a few years ago, many corporate executives pooh-poohed the idea of coaching as just a fad or psychobabble aimed at eroding the bottom line. The common objection was, where's the ROI, return on investment? Even those more progressive companies that welcomed innovation and creativity still considered it a luxury expense.

That is not the case today. Companies are now beginning to realize that their really is a strong ROI for executive coaching. You see, one-on-one executive coaching is not the same as attending a leadership seminar for five days and paying $5000. Leadership seminars and retreats without follow-up coaching and accountability can simply be considered entertainment, in my opinion.

Executive coaching does provide a tremendous return on your investment. Studies have indicated that executive coaching returns more than $5 for every $1 spent, 500 percent, in significant financial and intangible benefits to the company. When the financial benefits of employee retention were rolled into the mix, the ROI was nearly eight to one, 788 percent.

The growth in executive coaches from 1995 to 2009 has risen by five hundred per cent. Today we have over 10,000 executive coaches doing business in the US.

Executive Coaching is about You
 
Executive Coaching is personal. It is about developing a personalized program to help you deal with the numerous challenges faced each day... predominantly in your professional life but balance in your personal life is a contributing factor to success.
 
 An executive coach believes and demonstrates that the power is in the questions and not in the answers. You as the client are recognized for your abilities and the success you have generated. You have strong insights into your business and much more knowledge about that business than your coach.
 
The objective of the executive coach is to challenge and stimulate your thinking...  to cooperatively explore various options... allowing you the executive to make the final decision as to the appropriate course of action. 
 
Why Consider Executive Coaching or Team Coaching?
 
The answer to that question is simple: In most cases, what is good for the individual or the team is also good for the company. When help is needed separating the forest from the trees, the forest is generally within the confines of the company. When making decisions from a position of stress, stress is normally ascribed to the requirements of the job, and stress relief usually allows the job to be done better, faster, and with much more enthusiasm.
 
The higher you are in the management hierarchy, the more solitary the decision-making base becomes. Regardless of your experience, you can use a third party whose future does not rest on one decision or an action. Sometimes listening to yourself explain an issue, defend a position or just brainstorming provides the kind of clarity that is often missing in your normal day to day thought process.

An effective coach will concentrate on one thing: improving your performance or your team's performance as leaders. This is not an easy task because they effectively must help you help yourself by guiding you or your team in making the most out of your natural abilities and finding ways to improve upon or work around independent weaknesses.

Many coaches, including myself, may request that the executive allow them to interview the management team to get a perspective on leadership within the organization that is not singularly biased by the executives' personal opinion. Additionally, utilizing a personality profile test like the Winslow is highly recommended.

Coaching is about success – not Failure
 
Coaching is not reserved for problem managers. It is frequently sought by top performers whose organizations value their growth potential. Regardless of your motivation for hiring a coach, the following guidelines are important to consider:
 
Establishing Ground Rules
 
Confidentiality ---- A coach must observe client privilege similar to what attorneys practice. Sharing information with upper management must be approved by the person being coached. Remember, coaching is about success not failure. If a client is not coachable, the coach has an obligation to cancel the arrangement.
 
Expectations ---- The individual goals must always be in alignment with the corporate goals. This is rarely a problem but all parties must be clear on their expectations.
 
Communication ---- Reference confidentiality, however, information gathering is often necessary. Interviewing of management team members may be necessary but must be approved up front.
 
Objectives ---- Objectives are set during the initial coaching call as precall prep work is discussed. Focus on weaknesses and behavior modification is generally part of this process.
 
 
If you would like to explore the coaching process, e-mail rick@ceostrategist.com for a thirty minute coaching discussion at no cost to you.

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