This article first appeared in the online business journal SuperbCrew in May 2020.
"What's the most important thing CEOs and PE firms should know about executive coaching?"
That coaching is not right for every executive you might think. If you as their leader do not have a 90%+ confidence level in their skills or abilities, hiring a coach is likely a waste of your funds. This happens sometimes when a CFO's strengths in accounting, audit, tax, treasury and other traditional areas become secondary to the company's increasing needs for strategic finance and analytics, for example.
Many CEOs and Operating Partners are committed to "do right" . . . and not just for their companies. I've been pleasantly surprised by the consistent kindness I've encountered at the top. A CEO and PE firm may have concluded their CFO or COO is not the best fit for the role at this point, despite other great qualities plus institutional knowledge. So they'd like to help the leader transform. But that's not always possible. So when they look to coaching, it's important to be realistic, and to understand the differences vs. training, mentoring and consulting.
CFO Coaching and Executive Coaching is focused on GROWING your capabilities as a leader, to equip you to do your own Problem Solving more quickly, creatively and effectively.
I've learned to be quite frank before an engagement. Now, if or when a CEO or PE firm expresses strong doubts about an executive from the start, I engage only if everyone agrees to a frank 3-way dialogue first: that "coaching is being offered in part as a way to pave the way for a soft landing for you. It can also give you the freedom to practice new skills during the transition process, without fear of failure. We'd like to partner together to raise the performance of the team in the meantime, even as we proceed to find a candidate who's a better fit for this next phase." Ouch. That's a tough conversation.
Yet most CEOs and OPs are very fair, and often quite compassionate when it comes to a leader whose character and qualities they respect. Generally, they are committed to treating him or her fairly and doing what's possible to equip them to succeed in a future role. And the individual executives are then able to make the most of the coaching that's offered.
As an executive coach, I am a change-agent.
When a client has "the right stuff" for their role, and their CEO is in alignment, I partner with them to craft a clear “shared vision” of what's needed. To challenge the process, to raise standards, and to model the way. Clients are coached to create a team where every seat is filled by "the right person, in the right job, with the right attitude". To help them enable OTHERS to act. And enable them to better encourage their team, their peers and even their CEO. Yet even so, I'm always mindful of the article in the Harvard Business Review a couple of years ago, "4 Signs an Executive Isn't Ready for Coaching".
"Who are your executive coaching clients, and what are some of the key challenges you’re helping them solve?"
The CFOs, VPs of Finance, Controllers and Finance Directors I work with are on point to deliver the growth, process improvements and cost savings that generate high multiples of EBITDA. These are the men and women charged with not just improving KPIs (Key Performance Indicators), but also writing the story that shows the value they, with the CEO and PE firm, were able to add in the years leading up to a future transaction. Most of the companies I work with have revenue between $100 Million to $800 Million, with a few in the $20 - $75M range and a couple as large as $1-2 Billion.
These leaders are typically in their mid-30s to early 50s, running fast-growing businesses – or turnarounds. And they are under a lot of pressure to perform. Some have recently been promoted to CFO. Others have been in the job a while, and now their company’s been acquired by a private equity firm: they see expectations for analytics and insights have suddenly skyrocketed. And they now know that “what got me HERE, won’t get me THERE”.
Sometimes, a CFO looks for a coach privately when thinking of making a transition to a new role. More typically, a CFO or VP of Finance seeks me out when he or she has just landed a great new role and thinks, “I need a clear, efficient process to set myself up for success in my First 90 Days. I need a plan to learn the new business, create great relationships, focus my energy, identify some early wins – not to mention, deal with the inevitable tests of my authority in a way that leaves others admiring my ability to win others over.”
Forward-thinking PE firms hire coaches to prepare C-level executives who will be taking on a new role in a few months. There, my job is to enable that leader – including female executives – to create a bigger, bolder vision of what their impact can be, and how to step into the full power of their new role from the start. In practical ways that others will buy into, and not roll their eyes.
"WHEN do CEOs or Private Equity firms hire an executive coach for a CFO or COO?"
Most often a coaching solution is sought when one or more of these situations occurs:
1. Soon after deal-close. When a Controller or CFO is asked to undergo a mind-shift and step up the game as expectations from PE firm includes a faster close, more FP&A insights, higher quality, quicker pace.
2. When the “CFO” is focused primarily on keeping the books, and needs to become more forward-looking: more strategically engaged with the business and a better partner for the CEO.
3. When a Leader is untalented with talent. When an executive is good with strategy and numbers, but not in selecting the team. He or she needs guidance to ensure the Finance or Operations group has the right person, in the right job, with the right attitude, for every role.
4. When a new hire is flaming out. Sometimes, a new hire started out well but is now making mistakes that cause the PE firm to doubt his or her capabilities. He or she is not meeting expectations, and a new approach is needed.
5. When a Leader is not ready for prime-time. Occasionally a good leader needs additional “polish” in how he or she presents to the Board, to bankers and others stakeholders: verbally or visually, or both.
6. When a CFO or other Leader is struggling with Leadership Practices. He or she may be great with strategy and numbers but rough on the team, or leads outside the guidelines of the desired culture at the company. Sometimes, our IQ is higher than our EQ (Emotional Intelligence). When a leader has both the desire and potential to grow, we can make huge strides.
7. When a firm is looking to actively promote women’s leadership, and representation in senior ranks or on the Board. Even the most talented, qualified women sometimes struggle with how to assert their power and influence in a way that won’t get them labelled “a b**ch” – a label many fear, even as senior men have gotten ever more supportive. Yet old mental models die hard, and when a female leader is fearful, she can give away much of her authority in ways that are not good for their company. As a certified WBE (Women’s Business Enterprise), and thanks to my own journey as a female executive, I have unique tools that equip women to wield the proper scope of their authority while being true to their values around kindness, respect, and delivering results in ways that are authentic.
"How do you produce good outcomes as an Executive Coach – especially for CFOs?"
First, we develop a tailored plan to achieve specific goals – such as becoming more operationally focused, leading change, improving team performance, creating capacity, or being more impactful with colleagues and in the boardroom.
Second, we may use Assessment Tools ranging from a simple StrengthsFinder and Myers-Briggs Type Indicator (MBTI), to DISC which predicts behaviors, and Driving Forces that give insights into what moves and changes a leader. We may also do a 360 Review which offers a measurable baseline from up to 18 colleagues, direct reports, managers and others (such as board members and operating partners). Then we develop targeted action steps to improve in specific areas.
I coach CFOs and other executives to use a “feed-forward” method: not the usual “feed-back” which can feel negative and evoke feelings of shame. Applying “feed-forward, we select ONE area for improvement at a time. The client then asks key stakeholders a simple question every couple of weeks. What is that?
Well, suppose the goal is to become more analytical, more strategic. You ask, “Jane, what are some ideas you have for me to become more analytical and strategic?” Whatever response that elicits, I coach leaders to reply with only 2 words: “THANK YOU”. (No excuses, or “I already tried that”, or “that’s a stinky idea.” Only a sincere “Thank you, Jane. I can’t promise to do everything, but I want to get better at this, so I do promise to do SOMETHING.”)
Most importantly, my coaching framework is very experiential. We really get to know the sound, smell, weight, taste, color or other feelings around whatever a limiting belief is. Naming it, knowing it clearly and determining to be done with it is the vital start. Then we explore, physically, creatively, courageously – what COULD it be like to be free of that? Let’s create a new metaphor – a new experience! – of living in accord with your core values.
We also identify the ways in which you are likely self-sabotaging yourself. There’s a great metrics-based assessment that reveals the strength of your 9 potential Saboteurs, and we get deeply in touch with that Inner Leader, the Sage, the Wise One who knows not only what is needed – it has the power and courage to do it.
And of course, there’s accountability. What will you do? When will you do it? Who will you be accountable to? Me, as your coach? Your boss? Your team? How will we measure progress?
Often, we also develop a CFO Dashboard to create a visual snapshot of key areas the CFO is responsible for, showing whether that area is meeting expectations, is going particularly well (in green), or needs urgent attention (in red).
Executive coaching for CFOs, COOs and other leaders is game-changing.
It’s not about incrementally edging up efficiency to do more; it’s about breaking the mold and doing things differently, better. Highly experiential learning techniques lead to breakthrough perspectives, and tap fresh energy for clients. Great coaching addresses both beliefs and habits that hobble performance and restrict growth. Coach and client craft a fresh vision together that has immediate impact, and drives lasting results.
Edith Hamilton, MBA, CPCC is a certified executive coach for CFOs and VPs in Finance and Operations, particularly recently promoted women in the C-suite. She is a former executive of Fortune 500s, and has a background in private equity. With over 25 years’ experience in finance, operations, and growth strategies in corporations of all sizes including middle-market and entrepreneurial, Edith is a catalyst who accelerates leadership growth using tailored coaching frameworks that typically have an ROI of 4x-6x.
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