CEOs need help. Today’s business leaders have to contend with industry competition, changing consumer behavior, new technology, and fears of an impending recession. With the sands beneath their feet shifting, there’s never been a more uncertain time to be a CEO. CEO turnover increased by 12.9% in 2019 over 2018, according to a survey by Challenger, Gray and Christmas, Inc. There were 1,640 CEO transitions last year, compared to 1,452 in 2018, representing the highest total since tracking started in 2002. This greater uncertainty and turnover has driven an increase in the number of coaches offering to help executives succeed.
Coaching is a booming industry that shows no signs of slowing down. In 2016 there were 53,300 coaches working worldwide who generated $2.4 billion in revenue and these numbers continue to grow. The field of coaching is highly variable. Since there is no regulation about who can call themselves coaches, many have vastly different backgrounds and trainings; the result is a cluttered field of people claiming they can help executives. How can you determine whom to count on for such an important job?
The decision to hire a coach to work with a CEO is an important one. Companies invest millions of dollars and thousands of hours on selection and training for their top executives, all of which can go down the drain if there is an unexpected exit or termination. Finding a coach with proper training and qualifications should be priority number one.
There is a subset of coaches who have experience in the business world, and are trained as psychologists, holding a PhD or PsyD in psychology. This means at least five years of study and a wide variety of experiences in multiple fields. In addition to having business experience, psychologist coaches have experiences working with groups, families, and individuals with areas of focus including work, family, and self-management.
These qualities give psychologist coaches deep knowledge of the roots of human behavior and motivation, and unique insights into another human being’s inner and interpersonal world. Through their training, psychologists become experts in creating sustained behavioral change. Psychologist coaches combine their expertise with their knowledge of business to understand the complex strategic, organizational and psychological needs of CEO clients. They use these insights to help CEOs analyze, process and make decisions in their fast-paced, VUCA world.
The question of which coach to pick can be simplified by understanding what coaches can provide, and what clients can expect from their coaches. The list below shows four “hats” that psychologist coaches wear when working with their CEO clients:
- Truth Teller. Every CEO — especially a founder CEO — needs someone to tell them the truth; for many reasons, their employees cannot fulfill that role. Coaches provide honest feedback, and offer a confidential space for executives to bounce around new ideas. Without this kind of support, CEOs may be operating with incomplete information because their employees are afraid to tell them vital truths. The outside perspective of a coach allows them to be bold and free enough to tell a CEO where they’re going wrong, and help guide them towards a fix.
- Grounding Agent. CEOs can succumb to emotions and the seduction of overly positive feedback; a psychologist coach helps them stay grounded. Being CEO means wielding immense power. The influence that CEOs have over the people around them can be exhilarating. Anybody in such a position of power might become narcissistic. With a big head can come clouded judgment. CEOs who have “drunk their own Kool-Aid” may take unnecessary risks, speak or act thoughtlessly, and hurt morale. Psychologist coaches help keep CEOs grounded, practical, and pragmatic by helping them understand and master their egos.
- Trusted Advisor. CEOs are often replaced because they “don’t know what they don’t know.” A strong psychologist coach helps them navigate choppy waters and manage changes. Psychologist coaches help leaders identify and eliminate blind spots. They are able to see organizations holistically and figure out what the missing links are. Bringing this information to their CEOs, psychologist coaches help their clients highlight areas outside of their expertise for development, shoring up weak points for when challenges arise.
- Focusing Lens. Even experienced CEOs can get distracted by competing areas of focus. A psychologist coach helps them concentrate on strategy, organization, finances, people, and their emotions – simultaneously. With so many people and details competing for attention, and so much to keep track of, the psychologist coach helps the CEO to prioritize and give attention to what is essential for their companies as well as themselves.
By wearing one or more of these four hats, psychologist coaches can help CEOs sustain themselves in tumultuous times. Reducing CEO turnover means less money lost in search and development, lower severance payouts, and better safeguards on intellectual property. Successful and long-tenured CEOs improve corporate stability and general morale. People want to know that there is a competent captain at the helm. Investment in CEO success through coaching is an insurance policy against disaster. Psychologist coaches really can help CEOs weather the storm.
References:
CEO turnover up 22% over last year, the report shows by Valerie Bolden-Barrett.
Challenger Survey: CEO Turnover Repor Most CEO Changes on Record.
International Coach Federation (ICF): ICF Global Coaching Study.
CEO Report: Turnover Up 22% Over Last Year by Challenger, Gray & Christmas.
Written by William H. Berman. Here’s what you’ve missed?
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