Bernadette M' Crompton, B'BusMgmt, M'B'A'

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Business Management Discipline A Basis for
Business and Executive Coaching Practice

• Bernadette M. Crompton, B.Bus(Mgmt), M.B.A.
• RMIT University, School of Management
• Kosmas X. Smyrnios, PhD, MAPS
• RMIT University, School of Management
• Evidenced-based coaching A cross disciplinary
  perspective
• Sydney Australia, 8-9 October 2005

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Outline of Presentation

• Introduction
• Aim of Presentation
• Business Management Evolution to a Discipline
• Coaching A Framework
• Organisational Growth, Leadership, Coaching
• Co-Dependent Functions of Organisations
• Theory to Practice Case Vignettes
• Coaching and its Future Survival

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Introduction

• Organisations from authoritarian, rule based, to
  collaborative management, knowledge economy
• Todays environment competitiveness,
  globalisation, technology, economic upheaval
  (Delmar, Davidsson, Gartner, 2003)
• Organisational pressures on strategy, leadership
• Executives looking for faster ways to innovate,
  keep pace no time for traditional training
• Theoretical programs rejected by executives in
  favour of short relevant learning (Bennis
  OToole, 2005)

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Introduction cont..

• Coaching emerged as alternative to training
• Coaches from business, consulting, mentoring,
  counselling, psychology, etc. (Greene Grant,
  2003)
• However, coaching not a regulated profession
• Numerous coaching articles/mainstream books
• Few empirically based texts, usually from authors
  with psychology background (e.g. Kilburg, 2000)
• Should coaches have background in business to
  practice business and executive coaching?

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Aim of Presentation

• Outlines classic and contemporary business
  management theories, some lacking empirical
  rigour, adopted by coaching
• We posit that business/executive coaches should
  have a solid understanding of business management
  discipline, and consulting and mentoring
  frameworks
• Aim of paper to demonstrate how business
  management discipline underpins coaching practice
  within business organisations

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Business Management Evolution

• What is the purpose of business organisations?
• To produce/sell goods/services for customer
  wants/needs (Porter, 1980)
• Business management discipline founded in 70s
• Many well known business theories not empirical,
  but building blocks for later research (e.g.
  Alderfer, 1969)
• 1950s quality movement improved performance
• Systemic thinking view of internal management
  and external environment (Porter, 1980 Ohmae
  1982)

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Evolution and Learning

• Consultants filled economic shortages but
  short-term and not learning focused (Block, 2000)
• Authoritarian rule still prevalent in 70s
• Worker dissatisfaction not addressed and needs
  understood until double loop learning and
  learning organisation (Agyris, 1976 Senge, 1992)
• Mentoring resulted in positive outcome for
  productivity, performance, career (Kram, 1988)
• Coaching emphasis on goal setting, learning,
  development, performance, skill enhancement
  (Witherspoon White, 1997 Zeus Skiffington,
  2000)

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Coaching A Business Framework

• Many proprietary models used in coaching (Grant,
  2005)
• Coaches using business discipline as a basis with
  consulting skill and mentoring experience, better
  able to diagnose issues, situations and impacts

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Stages of Growth/Influencing Factors
(Delmar et al., 2003 Sperry, 1994)
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Coaching in Organisations

• To be effective, coaches need to understand the
  business environment and impacts
• Appropriate questions will unearth executive and
  organisational gap between reality and desires
  (Porter, 1980 Ohmae 1982)
• Organisations seize opportunities to satisfy
  customer wants/needs within external context and
  internal constraints
• Success is dependent on production outcomes,
  process driven techniques, peoples behaviour

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Organisations Co-dependency
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Co-dependency Context
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Context Establishing Goals

• Mnemonic GROW (goals, reality, options, when)
  used by coaches, however no measure (Whitmore,
  1996)
• Many business models identify goals, strategy
• Goal setting fundamental to business, ubiquitous
  with highly motivated individuals with
  self-confidence built on goal progress (Locke,
  1996)
• SWOT (strengths, weaknesses, opportunities,
  threats) for assessment (Stanford Research
  Institute)
• Five-forces (suppliers, substitutes, buyers,
  entrants, competitors) identifying opportunities
  (Porter, 1980)

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Case Vignette 1 Context

• P.G. was owner of start-up business
• 2 years developing integrated database management
  software application
• Keen interest from 3rd party vendors, but none
  purchased software application
• P.G. had been offered consultancy job
• tempted as funds running low but taking job would
  allow less time for software development
• Sought coaching to work through direction

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Coaching for Context

• Coach encouraged P.G. to think about vision for
  future, commitment to personal/business goals
• SWOT analysis gt P.G. technician, perfectionist
• Five-forces gt 6 month opportunity for application
  in marketplace before competitors
• P.G. approached 3rd party vendor as free test
  site
• Financial questioning, P.G. took 3 days
  consulting
• Milestone agreement, met twice month x 6 mths
• After 6 mths P.G. had taken on equity partner
  with funding allowing P.G. full time in business

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Co-dependency Production Process
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Production and Process Outcomes

• Manufacturing, packaging, delivery to be done
  cost effectively for organisation to make profit
• Processes with systems, models, procedures, help
  people understand/carry out expectations
• Balanced scorecard (financial, customer,
  processes, leaning) outcome based framework
  (Kaplan Norton, 1996)
• Operational effectiveness achieved when
  activities integrated, linked synergistically,
  and consistent with strategy (Kaplan Norton,
  1996 Porter 1996)

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Case Vignette 2 Production/Process

• D.W. owned successful packaging/distribution
  business with line of 120 products
• 26 employees most were loyal, well trained
• Business grown slowly over 10 years
• D.Ws vision to double sales revenue
• D.W. not sure on strategy to take
• e.g. increase prices, product range or volume?
• Vision not communicated to employees
• Sought coaching to help achieve vision

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Coaching for Production Process

• Coach helped D.W. realise awareness of which
  products were profitable/not-profitable
• D.W. had no business plan, nor customer profiles
• Agreement meet for 12 mths, fortnightlygtmthly
• Ohmaes strategic framework, balanced scorecard
• D.W. engaged employees to map chain of events and
  log service calls to identify customer demand
• D.W decided on combination strategy to increase
  prices, eliminate non-profitable, service to
  spend
• Introduced new products gt12 mths 50 profit

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Co-dependency People
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People Culture and Leadership

• Organisational culture is set by the
  characteristics of the founder with leaders
  having different styles (Covey, 1989 Drucker,
  2005 Tannenbaum Schmidt, 1973)
• Organisations consist of three communities
  executives, technicians, operators (Schein, 1996)
• Communication, open/closed relationships,
  different ways people learn is fundamental to
  organisational success (Luft, 1961 Mumford,
  1995 Senge)
• Coaching can allow executives to engage in
  personal reflective space (Block, 2000
  Clutterbuck Megginson,1999)
• Disturbed personality psychologist better
  (Arnaud, 2003)

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Case Vignette 3 People

• K.R. newly appointed Director of Operations for
  3rd party supplier organisation
• Organisation quick growth over 5 years via
  acquisitions gt cultural discord undercurrents
• K.R. responsible for Customer Service area
• K.Rs. previous role Manager Information
  Technology
• tensions between IT customer service
• K.R. articulate, efficient and task orientated
• Requested coaching to improve leadership
  capabilities, and manage people

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Coaching for People Behaviour

• Coach and K.R. agreed to work on leadership/
  management capabilities, and items as they arose
• K.R. had homework/or reading after each session
• Sessions focused on K.Rs. values, strengths, fit
  with organisation, leadership and learning styles
  (Cover, 1989 Drucker, 2005 Mumford, 1995
  Tannenbaum Schmidt, 1973)
• Coach helped K.R. understand dynamics between
  Customer Service and IT areas (Luft, 1961
  Schein, 1996)
• At sessions K.R. talked through issues, role
  played with coach, or engaged in reflective space

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Coaching and Future Survival

• Paper reviewed established business management
  theories and research
• Proposed coaches be grounded in business
  discipline, consulting and mentoring frameworks
• Vignettes business theory to coaching practice
• In some cases coach with psychology background
  better suited to executive
• Opportunity for researchers to take hold of
  theories from business management field
• Coaching will only become a profession and
  credible if grounded on investigatory research