6 Becoming a CEO Coach-Facilitator

When you are collecting feedback from key stakeholders, there is no need to reinvent the wheel. Any executive who has reached the level of serious CEO consideration has probably received several different forms of feedback in the past. As we discussed earlier, this memo will focus on behavioral coaching. It is assumed that the candidate has the strategic skills, functional talent, and track record of results needed to qualify for the job.

Reviewing Previous Feedback

Many large organizations make regular use of 360° feedback. This type of feedback is generally presented as a summary of numerical ratings and written comments that have been collected from direct reports and other coworkers. In most cases the respondents are not individually identified, so the feedback tends to be more honest than that provided in public. When you are analyzing 360° reports, it is important to:

• Look for trends. If scores on selected areas for improvement show progress over time, the candidate may well be a person who responds well to input—and works to get better. If the scores never improve, the candidate may be a person who has not made a significant effort to improve in the past.

• Consider environmental factors. If the candidate has been asked to turn around a difficult organization, he may have had to make decisions that were not pleasing to the employees—but correct for the company. Leadership is not a popularity contest. I used to be a dean. In reviewing research on teacher feedback from students, I learned that there was a clear correlation between the grades that students gave the teachers—and the grades that teachers gave the students. Sometimes this candidate may have given tough performance reviews or even dismissed key employees. In these cases, 360° feedback scores may well suffer.

• Find key patterns. I have reviewed thousands of 360° feedback summaries. There are almost always clear patterns in both the areas of strength and in the areas for improvement. Look for the few key areas for development that you believe will make the most difference in helping this candidate become a great CEO.

Many organizations use personality tests for evaluating and developing employees. As long as these tests are used to indicate behavior preferences or tendencies, they can be useful. If these are used to stereotype people, they can do more harm than good. Look at personality test results as a way to gauge preferences that are more likely to occur in natural or stressful situations—not evaluations of behaviors that have actually occurred. If personality tests present a consistent pattern with 360° feedback, they can be useful. If they tend to conflict with 360° feedback, I would tend to minimize their value. The way we behave—over time and as viewed by others—says a lot more about our leadership potential than the way we fill out self-assessment questionnaires.

Organizational surveys can provide an interesting picture of the “shadow” that a leader casts over his organization. If survey results, over time, for this leader’s organization differ from the corporate norm—in either a positive or a negative direction—you may learn about the type of culture that she tends to create.

Be careful how you use the anecdotal feedback that has been given to you about this candidate. A very common error that CEOs make in evaluating a candidate’s prior behavior is overreliance on anecdotal feedback. I have seen chief executives ignore positive confidential 360° feedback from multiple sources because one of their buddies regaled them with one story of inappropriate behavior. It is fine to listen to anecdotal feedback, but always consider the source. Think about the motivation of the person who is sharing the feedback. Realize that even the greatest of leaders have bad days, say dumb things, and make mistakes. Don’t let one event override years of systematic evidence.

As you have learned, the role of CEO is very different from the role of “almost CEO.” While feedback about prior history can be very useful, ideas for the changes needed in the new position can sometimes be even more valuable!

Gathering Ideas for Success in the CEO Position

While feedback about the past is a great indicator of how the candidate has led to date, suggestions for the future can help you understand what the candidate may need to do to prepare for the next level.

My own approach to developmental coaching involves asking each preselected stakeholder three simple questions:

• What are this person’s existing strengths—that will help her be a great CEO in the future?

• What are this person’s developmental challenges—that he may need to overcome in order for him to be a great CEO?

• If you were this person’s coach, what specific suggestions would you give her—either strategic or tactical—that, if followed, would help her become a great CEO?

Although these questions seem simple, they usually result in a dialogue that lasts from thirty to sixty minutes. I then write a summary report for the candidate and the CEO that covers key themes, without identifying specific sources.

In almost every future CEO summary, the strengths highlight attributes that are requirements for even being considered. For example, almost every candidate who I have met is perceived as being extremely bright. Despite what we read in the press, stupid people are not considered for CEO positions in major corporations. Basic intelligence is considered a given for the job. If the person is not perceived as extremely intelligent, coaching will not help.

CEO candidates have a history of achieving results. If they didn’t achieve results, why would they even be considered for the top job? They are almost all extremely dedicated and committed to the success of their organizations. They care about the company and its customers.

Like intelligence, hard work, and commitment, integrity should be a given. How many integrity violations does it take to ruin the reputation of even the best company? One! Executives who commit integrity violations should not be considered for the top job. In fact, they shouldn’t even be coached. They should be fired!

On the areas-for-improvement side of the summary, most comments relate to interpersonal behavior. Some of the most common challenges of future CEOs are behaviors such as winning too much, adding too much value, not letting go, not being open to differing opinions, not listening, and not developing people.

As we have discussed, at the chief executive level, behavior matters. It doesn’t matter a little more than behavior at the “next level down.” It matters a lot more.

Every company that I have worked with has corporate values. The CEO, as much as possible, needs to be the role model and example of these values. While no human can live our values all of the time, the CEO needs to live the values as much as possible—and needs to work on making corrections when his behavior is inconsistent with the values that he is preaching to others. CEOs need to walk the talk.

As the coach for the next CEO, you need to determine, along with your successor, what changes need to be made in order for her to be the role model that your company deserves.

In review summaries of specific suggestions, I often find that the little things impact the big things. For example, some candidates may be in the habit of reading messages on their cell phones while other people are trying to talk with them. While the candidate may not intend this behavior to be rude or disrespectful, this behavior is usually viewed as disrespectful by the people who are trying to communicate. One candidate actually had sidebar conversations in board meetings while board members were speaking! Although he didn’t realize how much this behavior annoyed the board members, everyone else in the boardroom did!

After you have gathered feedback about the past and suggestions for the future, it is time to figure out what your candidate needs to change—and to begin the change process.

When Coaching Your Successor, Stop and Look at Yourself!

Now that feedback has been collected and ideas for change have been generated, it is time to begin the coaching process. But before you begin coaching your successor, it is good to be aware of common problems that CEOs exhibit that limit their effectiveness as coaches. Who knows? It is possible that even you may be subject to some of these problems!

Why Doesn’t She Act Like Me?

As a rule, successful human beings tend to overweight our own strengths—and underweight our own weaknesses when evaluating others. The more successful we become, the more we can fall into the superstition trap, which, simply stated, is, “I behave this way. I am a successful CEO. Therefore, I must be a successful CEO because I behave this way!”

You, like all successful CEOs and all successful human beings, are successful because of many positive qualities and in spite of some behavior that needs improvement.

Take a hard look at your own strengths and challenges. Realize that you may have a natural tendency to forgive even large errors that resemble your weaknesses and to punish even small flaws that occur in your area of strength.

One CEO who I admired had about the best verbal communication skills that I have ever seen. His communication skills were not just strong—they were amazing. He could “work the room” like Bill Clinton and give a speech like Martin Luther King. His successor was actually better at strategy and marketing than he was. His successor was also much better at providing honest feedback. While his successor had very strong communication skills, they were never “good enough” for the CEO—since they were not as good as his! Unfortunately, this chief executive could never accept his successor. Finally, the board had to intervene: it forced the CEO to leave and appointed his successor. The successor turned out to be a fine CEO—just a different CEO from his predecessor.

What could have been a very positive succession turned out to be an unfortunate embarrassment for the previous CEO. Don’t let this happen to you!

Why Doesn’t She Think Like Me?

It is hard for successful CEOs not to believe that their strategic thinking is the right strategic thinking. As you proceed in the succession-coaching process, you are going to have to let go. It can be very hard to watch your successor make decisions that are different from yours. It is especially tough since as long as you are still the CEO, you have the power to reverse the decisions.

Your successor is going to manage the organization in the future—not you. As hard as it may be, you have to let her begin to make a bigger and bigger difference.

Ego can get in the way. In one succession case, the CEO was determined that the company should go it alone and not merge with a rival (whose CEO he couldn’t stand). His chosen successor finally began to feel his oats and pushed for a merger with the board. The board agreed with the successor. Rather than managing the change with dignity, the CEO resigned in a fit of anger. Don’t let that happen to you!

Why Doesn’t He Love My Friends?

We all tend to overvalue input from people we personally like and respect—and undervalue people we don’t love as much. Face the fact that your successor may have different personal preferences from yours. Your trusted advisers may not be his.

After the transition occurs, some of your friends will actually lose status or power—and may end up leaving the company. This is tough—both for them and for you!

One of my CEO clients reported that his good friend had provided negative examples of behavior on the part of his successor. I countered that the huge majority of coworkers were reporting very positive behavior when they evaluated the same person. The CEO reflected and realized that his friend did not want the successor to get the job—for personal reasons more than business reasons. He realized that his friend was never going to give the successor a fair chance. As he was leaving the company, he convinced his friend to leave as well—so that his successor could start with a clean slate. Do let this happen to you!

Setting Developmental Goals

After you have gathered feedback and suggestions and looked in the mirror for your own potential bias, it is time to start the process of coaching your successor.

Take all of the time that you need to have an honest, heart-to-heart session. Assure him that your goal is to help him succeed—not to watch him fail. Let him know how much you believe that he has the potential to be a great CEO. Hopefully, to become a better CEO than you! Share all that you have learned and discuss all that he has learned in the process of reviewing feedback and analyzing suggestions.

Prioritize. Work together to determine the key areas for behavior change that will lead to the maximum positive relationships with key stakeholders. In many cases, behavior that needs to be changed is very consistent in all groups. For example, almost everyone may agree that your successor needs to be a better listener. In other cases, behavioral change may need to be tailored to the stakeholder group. For example, peers may feel that your successor is too assertive, while board members report that he is not assertive enough.

The goal-setting process needs to end with clear, desired outcomes. Your successor agrees to do a great job of demonstrating agreed-upon behavior as judged by agreed-upon stakeholders. The long-run goal is simple. Your successor needs to successfully develop the skills—and build the relationships—needed to make him a great CEO.

In some cases, you, as a coach, may feel a little hypocritical. You may be asking him to do some things that you haven’t done very well yourself! There are two ways you can deal with this potential problem: (1) let him know that not only are you going to try to help him improve, you are going to ask him to help you improve; and (2) reinforce the desire for him to be an even better CEO than you have been!

In setting goals, show some flexibility. If his words for desired change are almost the same as yours, go with his. On the other hand, stand firm on the big issues that you believe he needs to tackle.

At the end of the goal-setting meeting, get his sincere commitment to change. Ask yourself a tough question: “Is he ‘for real’?”

If your successor needs to change behavior in order to develop better relationships with key stakeholders, if he is willing to try, and if he is given a fair chance, I will share a process that can help you become the coach—who helps him achieve positive, lasting change.

Involving Key Stakeholders in the Coaching Process

The next step in the coaching process involves your successor having one-on-one conversations with each of her key stakeholders. In these conversations, she will need to:

• Thank them for participating in the coaching process. Take the time to acknowledge the value of their time. Express gratitude for their input.

• Review strengths. Personally commit to continued effort in these areas of strength, and express gratitude for the positive recognition.

• Openly discuss desired areas for development. Sincerely apologize for any mistakes that may have damaged the relationship in the past, and commit to improve.

• Solicit ideas for the future. Ask for specific suggestions that can help ensure her improvement in targeted areas for change as well as general suggestions that can help in her journey to becoming a great CEO.

• Make realistic commitments. Avoid overpromising. Commit to listen to all ideas, consider every suggestion, and make a good faith effort to do the best she can to improve.

• Ask for their continued support. Let them know that she plans to follow up and get ongoing ideas for suggestions. Communicate that positive, lasting change is a process—not a program.

In preparing key stakeholders for the coaching process, you, as the CEO, need to encourage them to be honest, positive, and supportive in helping your successor prepare for the next role. You need to encourage them to focus more on helping your successor improve than on judging her behavior. Finally, you should point out that relationship building is a two-way street. Encourage them to focus on their own behavior—and to do whatever they can to build the relationship in a positive way.

Being a Coach-Facilitator, Not a “Coach-Expert”

The next step in the process is easy to understand, but hard to do. You need to facilitate the coaching process so that most of what is learned is coming from the key stakeholders—not from you. This can be tough for a hard-charging CEO who is used to being the boss!

After your successor has had a one-on-one dialogue with each key stakeholder, have a simple discussion that answers the following questions:

1. Who did you talk to?

2. What did you learn?

3. What are you going to do about it?

Assure your successor that you don’t expect him to act on every suggestion from every stakeholder. Acknowledge the fact that some stakeholders may have their own agenda—and may be providing input aimed at helping them achieve their own personal goals. This is just part of corporate life. Help him sort the wheat from the chaff.

As you talk with your successor, he will probably have a tendency to ask you what you think he should do next. This is only natural. You are the CEO and he is used to reporting to you. Fight the urge to give lots of direct suggestions. Remind him that you are going to be leaving and that many of the key stakeholders are going to be remaining. He needs to build great working relationships with them—not with you.

The greatest challenge in behavioral change is not knowing what to do—the greatest challenge is doing it! Focus most of your input on helping ensure that he actually acts on the ideas that both of you feel make sense.

As a coach-facilitator, you have a simple mission. Your mission is to help your successor achieve positive, lasting change in the behavior that is most important—as judged by the people who are most important. The success or failure of your coaching will not be determined by you—or by your successor. It will be determined by the key stakeholders who interact with your successor—after you leave the organization.

Of all of the clients who I have ever coached, the client who I spent the least amount of time with improved the most! And he was great to start with. When I asked him, “What can I learn about coaching from you?” he wisely replied, “This coaching process was never about you. It was about me and the great people in my team. Don’t make the focus on you. Make the focus on your clients.” He went on to make a comment that helped me understand why he is such a great leader. He smiled and said, “I manage tens of thousands of people. Every day that I come to work I remind myself, ‘Leadership is not about me. It is all about them.’”

If you want to be a great coach for your successor, make the coaching process all about him and his key stakeholders—not about you.

Follow-up Is Everything

By far, the most important variable in helping your successor achieve positive, lasting change is followup. And the most important follow-up is not you following up with her; it is her following up with her key stakeholders.

My partner, Howard Morgan, and I did extensive research on leadership development that involved more than 86,000 participants from eight major corporations (“Leadership Is a Contact Sport,” Strategy + Business, Fall 2004). Our findings are almost impossible to dispute. When leaders (at all levels) receive 360° feedback, discuss what they learned with key stakeholders (as has been outlined), and consistently follow up with key stakeholders over time, they are invariably perceived as substantially improving in their selected areas for development, and they are also perceived as becoming dramatically more effective leaders. Leaders who did no follow-up with key stakeholders were seen as improving no more than by random chance.

What does follow-up sound like? Your successor needs to have ongoing dialogues with each key stakeholder. In these ongoing dialogues, she needs to discuss her specific areas for development and ask for ongoing suggestions for future improvement. The asking part of follow-up may sound something like this: “Last month I said that I wanted to become a more effective listener. As a result of my behavior in the past month, what ideas would you have for me that could help me become an even better listener next month?”

What is your role in the follow-up process? You, as the CEO coach-facilitator, need to have ongoing dialogues that reinforce “Who did you talk with?” “What did you learn?” and “What are you going to do about it?”

Your role is similar to the role of a personal trainer. You need to encourage your successor to stick with the plan, keep focused on positive change, and keep following up with key stakeholders.

Just as in getting in shape, while you may be the trainer, she needs to go on the diet and do the exercise. Your successor needs to understand that you will do all you can to facilitate her positive change. She will need to do the work to achieve positive change and build key stakeholder relationships.