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A relatively new management tool,executive coaching has proven its value toCEOs facing complex business and personalchallenges. Behind every successfulintervention are a successful professionalcoach and a receptive, committed CEO. Thisauthor describes when and how a coach canhelp a CEO, and what a coach and CEO mustdo to work effectively together.

By Murray Axmith

Murray Axmith is a principal, with BarryAdamson, of Axmith & Adamson Consulting,which provides coaching services for seniorbusiness leaders.

A relatively new management tool, executivecoaching has proven its value to CEOs facingcomplex business and personal challenges. Behindevery successful intervention are a successfulprofessional coach and a receptive, committedCEO. This author describes when and how acoach can help a CEO, and what a coach and CEOmust do to work effectively together.

Executive coaching is a relatively new area ofmanagement consulting that has emergedprimarily because of the increased pressure onsenior executives. Pinning down exactly whatexecutive coaching entails is difficult, because thereare probably as many definitions as there arepractitioners.

There are, however, two key attributes present inthe practice of executive coaching. The first is itsoverriding purpose-that is, to enhance theindividual executive's contribution to

Ivey Business Journal May/June 2004

Executive coaching: A catalyst for personalgrowth and corporate change

organizational performance. If coaching can't bedirectly and positively correlated to performance,it will eventually become just another forgettablemanagement fad.

The second attribute involves ownership-theexecutive, not the coach, owns the decisions andactions arising from the coaching process. As inany true coaching relationship, it is understoodthat the coach does not bring function-specific oroperational solutions to the table, unlike manyother types of consulting.

Executive coaching is most often used byorganizations in the following situations:

• Assisting a newly appointed leader to make asuccessful transition into a key role,particularly when the individual is new to theorganization;• Helping a valued executive with a specific

performance problem to develop new skillsand make necessary, often difficult, behavioralchanges;• Assisting a high-potential employee to fast-

track by developing his or her leadership skillsin order to expedite their readiness for a moresenior role;• Acting as a confidant to senior executives

(especially CEOs) as they wrestle with difficultstrategic and operational decisions. As both asounding board and devil's advocate, the coachhelps the executive analyze issues, generate andtest different courses of action, identifyobstacles and move toward successfulimplementation.

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Given the intense pressure and onerousresponsibilities shouldered by most CEOs, it isnot surprising that executive coaches are indemand. This article will describe four typicalsituations in which an executive coach can help.It will then outline theconditions and requisitefactors that enable anexecutive coach and asenior executive to worktogether effectively.

1. The encroacher

The CEO of a largecommunications company was working 70 hoursa week, and as a result he was tired, tense and short-tempered. By the CEO's own definition ofleadership-"the ability to inspire others to worktoward objectives which they have come to acceptas their own"-this individual was clearly failing.He was a living example of, "How can I hope toinspire others when I feel burnt out and uninspiredmyself?"

After considerable discussion with the CEO, theexecutive coach observed a common pattern ofbehaviour. The CEO was using his direct reportslike executive assistants, distracting them fromfocusing on their own priorities andresponsibilities. At the same time, he wasencroaching on areas of the business that wereclearly the functional responsibility of his directreports, causing duplication, resentment andanimosity.

The executive coach suggested that the CEOmeet with each of his direct reports to beginbuilding a trusting relationship. Prior to themeetings, each person was told to draw up a listof what the other should do more of and less of,and what each should stop doing altogether. Theyalso drew up what is known as an empathy list-what they thought would be on the other person'slist. Facilitated by the executive coach, the

meetings allowed the CEO and direct reports todiscuss how they could support each other anddo a better job. Throughout this process, eachperson had the right to convene a meeting todiscuss any friction.

The meetings helpedthe CEO and directreports to realign theirresponsibilities. TheCEO also learned that heneeded to nurturehimself and realign hiswork-life balance. Thetoxicity that had been

affecting interpersonal relationships was greatlyreduced, if not totally eliminated.

The human resources VP adapted the processand made it work for the entire organization. Thecompany was totally revitalized, because peoplewere able to talk openly about their problems andconcerns, eliminating a lot of role confusion,redundancy and interpersonal stress.

2. The reluctant stock promoter

Many CEOs and their boards say their primaryrole is to create long-term value for shareholders.But a recent study by DBM, a human resourcesconsulting firm, shows that over the past decadethe average tenure of CEOs at any oneorganization has dropped from 10 years to lessthan three years. This puts an enormous amountof pressure on CEOs to produce in the short term.

The CEO of a manufacturing firm found himselfat odds with his board when his companyexperienced successive quarters of flat earnings.He had factored flat earnings into his business plan,but the board wanted to keep the share pricebuoyant. For one thing, the board membersthemselves held many stock options (as did theCEO), but they also wanted to avoid a drop inthe share price so the company could use shares

The human resources VP adapted theprocess and made it work for the entireorganization. The company was totallyrevitalized, because people were able totalk openly about their problems andconcerns, eliminating a lot of role confusion,redundancy and interpersonal stress.

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rather than debt in an acquisition.

The CEO became disconnected from his ownfeelings because the board wanted him to put apositive spin on a mediocre performance, ratherthan talk about the real risk factors facing thecompany. The board decided that if the numbersweren't going to meet expectations, they wantedan announcement that focused on cuttingexpenses, staff layoffs, cutbacks on research anddevelopment, and possibly selling off non-corebusiness assets.

After considerable dialogue with the executivecoach, the CEO strongly urged the board to staythe course on what he believed to be a soundbusiness plan. He felt the company's performancewould be seriously undermined by the board'sproposed actions. The CEO wanted the board toallow him to focus on the fundamentals of thebusiness and highlight the real risk factors in hispresentation to the financial community. Hebelieved that this was a better way to developcredibility with investors for the longer term.

The CEO lost his battle with the board, andsoon after he left with a severance package. He isnow the CEO of a private company where themajority owners appreciate his candour and don'tworry about a daily share price. He is able to focushis efforts on the real issues facing the business,and a lot of his stress has disappeared.

3. Pollution dilemma

The CEO of a Canadian-based multinational inthe natural resources industry had been agonizingfor years over his company's pollution record andthe costs of a cleanup. Part of the problem wassolved when Canada signed the Kyoto Protocol,because he then had no choice but to follow thetimetable and standards in the accord. But acomplication arose because the company hadplants in two countries that were not signatoriesof the accord. The question was, should he go

ahead with the cleanup in Canada and simplyignore problems outside the country?

The executive coach introduced the CEO to avalue-driven decision-making process in which ameasurement of the impact on all key stakeholdersis included in the criteria for reaching a decision:Does the decision treat employees, customers,investors, suppliers and the community withrespect, appreciation and integrity?

On the advice of the executive coach, the CEOassigned the human resources manager to surveykey executives at the plants outside Canada todetermine what was at stake. The human resourcesmanager, in turn, consulted with the plantmanager, production manager and personresponsible for marketing and sales at each plant.The HR manager found that all stakeholderswould be affected by the decision, includingemployees, customers and investors -many ofwhom were local. As a result, the CEO decidedto clean up all of the company's plants in Canadaand abroad, to a standard that will actually exceedthe Kyoto Protocol. The costs will be offset bygreater employee pride and loyalty, increasedappeal to investors and an enhanced communityimage.

4. The boss from hell

This CEO would have no trouble qualifying forinclusion in the Worst Bosses List. As the head ofa medium-sized financial services company, he isvery demanding and does whatever it takes toproduce results, such as intimidating his staff andberating them in front of others. His toxicityaffects the whole organization. The company hadachieved good financial performance, but atsignificant cost: It was losing key people, andothers were getting sick.

The CEO had developed a tough exterior todefend his soft, sensitive side, a defence mechanismthat behavioral scientists refer to as "reaction

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formation." He felt that if he showed his sensitiveside to his subordinates, he would not be able tocut it as a strong leader.

The CEO recently had a wake-up call to changehis style-he suffered aheart attack and has takena year's leave of absence.We are working closelywith him, the company'sVP of human resourcesand an industrialpsychologist to seewhether he has thepotential to change hisleadership style so that itis consistent with his underlying, people-sensitivenature. The strategy includes role-playing to helpmodify his behaviour to suit the circumstances.In addition to external support, the humanresources VP will "shadow" the CEO in meetings,providing feedback and counsel in private.

The conditions for successful executivecoaching

It may be useful to look beyond these individualcase studies, to identify some fundamentalconditions that make for successful coaching atthe CEO level.

1. The CEO must be receptive to new waysof looking at problems and solutions. He mustbe willing to look at whether he is "doing the rightthings" in terms of the company's strategicdirection, and is "doing things right" in relationto operating policies and day-to-day businesspractices.

The coach plays an important role in helpingthe CEO to review his or her underlyingassumptions. Are there new developments or aparadigm shift that require a different way ofthinking about the business? At the same time,the coach encourages the CEO not to disregard

his own intuitive responses to the changingbusiness landscape. Applied intuition oftenunderpins what turns out to be a very wisedecision.

At the heart of goodexecutive coaching is theability to askprovocative questions.The coach must beprepared to challenge theCEO's thinking andjudgment at any time.And the CEO mustgenuinely believe thatnew challenges add

significant value to the problem-solving process.

2. The CEO must agree that the coach willact as an "ego check." A strong and healthy egotypically leads to considerable ambition and highachievement. At times, however, the CEO's egomay rev up, slip into overdrive and have a negativeimpact on his normally good judgment andinterpersonal relationships. When the coachsuspects that this is happening, he or she must beprepared to confront the CEO in a supportivemanner. The CEO must be willing to examinethe motives underlying this behaviour, as well astheir impact on others. For example, the CEOwho equates his self-worth with his net worth maymake decisions that result in high short-termreturns for himself and other senior executives,but the decisions may not be in the longer-termbest interests of the company and its shareholders.

3. The CEO must feel and exhibit "valuesharmony." If the CEO's role -and requiredconduct in that role -is not consistent with hispersonal values and beliefs, the resultingdissonance can be extremely stressful. We knowthat people can alter their overt behaviour withoutchanging their underlying belief system…but atwhat price? The executive coach must be alert tothis potential problem.

At the heart of good executive coaching isthe ability to ask provocative questions. Thecoach must be prepared to challenge theCEO's thinking and judgment at any time.And the CEO must genuinely believe thatnew challenges add significant value to theproblem-solving process.

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If the CEO's behaviour manifests "valuesdissonance," the coach must encourage him toconfront the issue rather than ignore it, althoughthis is often the harder route. Sometimes, the bestsolution is the one chosen by the CEO in example2 above: He moved to an organization where thedemands of leadership were more in harmonywith his personal values.

4. The coach must have the right background,credibility and skills. Someone who coachessenior executives requires superior cognitiveability, self-awareness, high levels of empathy,strong impulse control and sound judgment, aswell as loads of wisdom and the patience of Job.Most of the time an additional criterion comesinto play: CEOs want to work with a "peer,"someone who brings real-world businesscredentials to their role and who knows what it islike to reside in the corner office where the buckstops.

One talent of the good executive coach deservesspecial mention -that is, the ability to make theCEO feel comfortable talking about what iskeeping him awake at night. This helps the CEOand the coach to identify and focus on the highest-priority issues early in the relationship.

As a coach, I build this trust by disclosing upfront some serious difficulties that arose in mypersonal and business life during my early days asthe CEO of my own company. I explain how Idecided to obtain outside professional assistanceto help me overcome the problems and go on tobuild a highly successful international business. Ihave found that this personal disclosure serves asa powerful relationship-builder and as a model ofthe kind of frank discussion that forms thefoundation of any worthwhile coachingrelationship. The complexities of the challengesfacing executive coaches who work at the CEOlevel are on a par with the complexities challengingCEOs, which explains why my partner, Barry

Adamson, and I act as coaches for each other.

Recent developments in the business communitygive reason for cautious optimism about CEOconduct. The revelations of corporate malfeasanceand executive greed, and a more moderate stockmarket, have led to more realistic expectationsamong the investment community. Perhaps morethan ever before, investors are looking forcredibility, transparency and integrity, not onlyin financial reporting but also in the waycompanies are being managed from the top ondown.

Another positive development is the growingnumber of companies that are encouraging open,two-way communication between managers andtheir direct reports. This allows both parties tosupport each other in doing a better job, and addstrust to the supervisor-subordinate relationship.

More CEOs are using value-driven stakeholderanalysis to assess the potential impact of importantdecisions on their customers, shareholders,employees and the communities in which theyoperate. Given the perilous debut of the 21stcentury, we expect that the emerging field ofexecutive coaching will play a significant role inhelping CEOs meet the challenges of managingtheir businesses and responding to the needs ofstakeholders.