APEX LEADERSHIP CONSULT

Realising Potentials, Enhancing Performance

Financial Performance Index

Dr. Chuma Osuchukwu • Aug 01, 2022

The Critical Success Factor in Business Part 1

How well is your business doing? This is not a cliché. 

I would like you to think about it before you respond to my question. This is because 57.4% of small and medium sized businesses fail every year because their owners overlooked 4 main areas of their businesses. I will discuss these four areas in turns and in different posts. The bit I will focus on today is the Financial performance index. 

I am Dr Chuma Osuchukwu, a transformational business coach. I have helped over 70 businesses in the last year alone to avoid the pitfalls that many businesses fall into. I have been the CEO of Apex Leadership Consult since 2006 and have consulted for hundreds of small and medium sized businesses since then. I have also been a senior academic, teaching in and leading business programmes in various UK universities over the years. I am currently an external examiner to two top UK university business schools. 

The financial performance of a business and its role in meeting the interests of its stakeholders is easy to see. When we speak of financial performance index, we are referring to the measure of your business performance deduced from the financial information your business generates. 

'What you cannot measure, you cannot improve' is a popular saying in business. It is applicable more in the financial side of your business than in any other area. Due to its quantitative nature, your financial side of business is easy to read and understand. You can tell how well your business is doing based on your business' financial ratios among other things.

Through the outcomes of your financial ratios you can see where your business is in relation to your short term obligations, its ability to generate revenue and the profitability of your individual item sales. It is also useful for you to compare your business position with your competitors and your industry standards. 

All financial ratios are important, but I will recommend that you keep an eye on the following areas; operating efficiency (cost control), solvency (meeting your debt obligations on ongoing basis), liquidity (easy conversion of assets to cash to meet debt obligations) and profitability (net margin).

The following financial tools are useful if you wish to use them in your business: ratio analysis, comparative financial statements, common size statement and Benchmarking analysis. 

Did you find this helpful.

If you would like practical help in your business, book a free strategy session today https://calendly.com/plans-and-packages/15min and we will respond to your needs.  

info@apexleadershipcentre or call +44(0)800 689 5717 (free toll). 

by Dr Chuma Osuchukwu 29 Jan, 2024
Stay Calm and Professional : When in a situation with a toxic boss, your response to their behaviours that threaten your wellbeing is likely to be one of the long determined human responses to exposure to danger, which is, the fight, flight, freeze response or the fourth response which has recently been identified and that is to *Feign. To feign means to hide from the threat. This is a situation where you are not fighting your toxic boss, you are not running away from the situation and you are not frozen by its impact on you but you are simply hiding from it or ignoring it and hoping that it will go away by itself. The fact is, it is not going to go away. If anything, the situation could worsen. You have to do something about it. To begin this process of dealing with a toxic boss, your first response should be to maintain your composure and professionalism when you observe the signs, I discussed in my earlier post. Avoid reacting emotionally or engaging in confrontations that may escalate the situation. Document Everything : Then keep a detailed record of your interactions with the toxic boss and this includes emails, meetings, and any specific instances of maltreatment. This documentation can be valuable if you need to escalate the issue later. Seek Support : Speak to trusted colleagues or friends about your experiences. They may offer valuable insights, advice, or emotional support to help you cope. They may also be invaluable witnesses to collaborate your narrative if you decide to escalate the matter later. Establish Boundaries : Set clear boundaries with your toxic boss. Politely assert your need for personal space and autonomy while expressing your willingness to collaborate and communicate constructively. Confront the Issue : If you feel comfortable and safe doing so, consider discussing your concerns with your toxic boss, using the “I" statements to express how their behaviour affects you and propose potential solutions. The use of “you” statements may come across to your boss as accusative and may likely put your boss on a defensive position. Where this approach does not yield the desired outcome for you, then you may wish to escalate the issue with the next step. Speak to HR or Higher Management : If the situation doesn't improve and becomes unbearable, reach out to your human resources department or a higher-level manager to report the issue and present your documented evidence at the appropriate time to support your claims. Consider Your Options: In some cases, it may be necessary to consider finding a new job or transferring to a different department or team within the organization if the toxic environment persists and starts affecting your mental and emotional health. * Feign is a terminology the author coined as the fourth human response to threat or perceived threat to existential wellbeing. Dr Chuma is the founder and CEO of Apex Leadership Consult. He is a leadership, business and team coach. If you like this post, follow for more.
by Dr Chuma Osuchukwu 29 Jan, 2024
Is your Boss toxic? Few symptoms of a toxic boss: Micromanagement : When your boss has the tendency of micromanaging every aspect of your work, it is pointing to someone who may be insecure in themselves and if not checked would most certainly project that insecurity to you by insisting on having a say in every decision you make no matter how small that decision is. For more on micromanaging see my blog on the 3 Fears of micro managers. Lack of Communication : Toxic bosses can resort to passive-aggressive behaviours in place of open, constructive, developmental and honest communication with you. Favouritism : Toxic bosses often work with the principle of divide and rule, choosing to show favouritism and preferential behaviours to certain employees while unfairly criticizing or ostracizing others. Blame-Shifting : They are masters at blame shifting when things go wrong. They take credit when things are going on well but shift the blame to their subordinates, refusing to take responsibility for their own mistakes or decisions when things go wrong. Bullying and Harassment : In extreme cases, they may engage in bullying, harassment, or discriminatory behaviours creating a hostile work environment. These symptoms are not exhaustive but are strong indicators that you are most probably in a toxic relationship with your boss. If you like this post, follow me @Drchuma for how to deal with a toxic boss.
by Dr Chuma Osuchukwu 04 Dec, 2023
Small fishes swim in the same ocean that sharks, whales and other large aquarian creatures operate in and are exposed to the vagaries of such terrains. Similarly small businesses function within the same business environment as medium and large businesses and are often affected by the activities of the bigger ones. Business environments, as a result, affect the way small businesses operate. Some problems that medium and large businesses deal with routinely due to their sizes and resource capacities can easily become complex problems for small businesses. Resolving these complex problems will require a structured approach. The sequence below is intended to give small businesses a structure to make sense of the complexities that come with their business environments. A complex problem, at first, might appear overwhelming to small business owners. To make sense of complexities require some sort of structure, if you like, a method in the madness, to unravel the interlocking complexities and systematically solve it. The short structure below will help you as a business owner, to deal will the ever-increasing complexities in today’s business world. The first step is your ability to remain calm in the face of the overwhelming situation. This is easier said than done, though but an essential part of resolving complex problems. The ability to stay calm can help you stabilise and save your business, in the same way that Formula 1 drivers are able to recover from imminent crashes by focusing on where they intend to go rather than where their vehicles are heading for a crash. Then, start by trying to define the problem. Small fishes swim in the same ocean that sharks, whales and other large aquarian creatures operate in and are exposed to the vagaries of such terrains. Similarly small businesses function within the same business environment as medium and large businesses and are often affected by the activities of the bigger ones. Business environments, as a result, affect the way small businesses operate. Some problems that medium and large businesses deal with routinely due to their sizes and resource capacities can easily become complex problems for small businesses. Resolving these complex problems will require a structured approach. The sequence below is intended to give small businesses a structure to make sense of the complexities that come with their business environments. A complex problem, at first, might appear overwhelming to small business owners. To make sense of complexities require some sort of structure, if you like, a method in the madness, to unravel the interlocking complexities and systematically solve it. The short structure below will help you as a business owner, to deal will the ever-increasing complexities in today’s business world. The first step is your ability to remain calm in the face of the overwhelming situation. This is easier said than done, though but an essential part of resolving complex problems. The ability to stay calm can help you stabilise and save your business, in the same way that Formula 1 drivers are able to recover from imminent crashes by focusing on where they intend to go rather than where their vehicles are heading for a crash. Then, start by trying to define the problem. Define the Problem: A well-defined problem is a problem half solved. Define the complex business problem you are facing by identifying the scope (size), impact (effect on your business) and urgency of the problem. The clearer the definition of the problem, the easier it becomes with the subsequent stages below. Gathering the relevant data and information to understand the problem thoroughly will help you in gaining clarity with the problem. Stakeholder Analysis: Identify all the stakeholders involved, including internal and external stakeholders. Understand their interests, concerns, and perspectives regarding the problem. Then prioritize stakeholders based on their level of influence and importance or power. Ansoff matrix is a useful tool you can use to do this. Root Cause Analysis: Analyse the underlying causes of the problem. Look beyond the symptoms to identify the fundamental reasons why the problem came about in the first place. You may be pleasantly surprised that what you though initially was the root cause of the problem is only a symptom. Useful tools like the "5 Whys" or Fishbone diagrams can help you to explore the root causes of the problem. Data Gathering and Analysis: Good data gathering is key to quality finding in support of your understanding of the problem. Rigorous analysis will produce quality findings to base the rest of your structure on. As Ronald Coase has noted, “torture the data, and it will confess to reality.” There are many useful tools out there to help you with your data gathering and analysis. You may find the Box and Whisker plot, Control chart, Histogram or Scatter diagram useful tools among the host of others. Data-driven insights to identify patterns and trends is a good practice in solving complex problems for small businesses. Generation of Solutions: Complex business problems are rarely solved by individual genius. Assemble relevant stakeholders (internal and external) for brainstorming and idea generation. Resist any form of judgment or evaluation of the ideas that are coming through at this stage. Allow for both short-term and long-term solutions. Evaluation of Solutions: Then lay out all the ideas and start your assessment of each potential solution's feasibility, cost-effectiveness, and alignment with business goals. Consider potential risks and benefits associated with each option. Then prioritize solutions based on their potential to address the root causes of the problems you have earlier identified. Decision-Making: At this stage of the process, involve key stakeholders in the decision-making process and select the most suitable solution and develop an action plan. Clearly define roles and responsibilities for executing the plan. Implementation: The stage of implementation is crucial as it is the stage that brings to life, the solutions you have crafted alongside your team. Communicate the chosen solution and action plan to the relevant teams and departments. Allocate necessary resources and monitor progress closely. Ensure that you make adjustments as your monitoring flags up issues along the way. Feedback and Adaptation: As you set the machine of solutions in motion, continue to gather feedback from stakeholders and teams. Be open to adapting the plan if unexpected challenges arise. Maintain flexibility and agility in your approach. Evaluation and Learning: It is time to learn. The learning you acquire in this process can be invaluable in subsequent challenges along the way. Once the solution has been implemented, evaluate its effectiveness in addressing the complex business problem. Identify lessons learned and best practices that can be applied to future problem-solving. Communication and Transparency: It is useful to maintain open and transparent communication with stakeholders and teams throughout the process. Share progress updates and outcomes, whether positive or negative. Continuous Improvement: The experience gained from resolving the complex business problem is an added asset in your toolbox that will help you to refine your business processes and decision-making strategies in future. Ensure that your organization is better prepared to handle future challenges. I am open to your comments and contributions on how to help small businesses deal with the complex problems in a VUCA world. Dr Chuma Osuchukwu, MBA, PhD is a business and leadership coach. He is the author of the Learning Leader and the 5 Perspectives of Change Leadership. Dr Chuma is the founder and CEO of Apex Leadership Consult.
by Dr Chuma Osuchukwu 21 Aug, 2023
It is obvious that when leaders learn and apply those essential leadership skills, it's like adding the perfect tools to an auto mechanic's knowledge base, – their performance invariably improves. But here is what might not be as obvious; just because a leader excels at one aspect of their role, like coming up with visions or strategies, doesn't mean they will automatically be as effective in all the other leadership tasks too. It's like having a great vision-caster who struggles to connect with their team on a personal level. Now, let's talk about a big challenge in leadership – rallying the troops behind a vision and strategies. This whole thing hinges on a leader's ability to understand and form strong bonds with their team members. This is where a crucial skill called cultural intelligence (CQ) comes in. Cultural intelligence is all about how well you can adapt and work well with others from different cultural backgrounds. While CQ is not just for leaders, it is a great asset in leaders’ toolkit, given their different levels of interactions with people in their organisations. It helps leaders to effectively harness the potentials in their teams. Think about today's work scene – it's a real melting pot of cultures. Teams are not all cut from the same cloth anymore. It is important to note that everyone brings their cultural perspectives to work every single day. These perspectives shape how they see things, hear things, experience things, and even how they do things. We know that leaders cannot possibly understand every single person they work with, especially when there is a mix of different cultural backgrounds. But here's the important thing; leaders should really make an effort to boost their CQ. Here are four key capabilities that can help leaders to immensely improve their game and connect better with their teams. These abilities are drive, knowledge, strategy, and action. * Let's break them down: • Drive is all about a leader's motivation to thrive in a culturally diverse setting. It's about embracing the fact that the work world has taken on a global dimension, and instead of trying to avoid it, leaders should fully embrace and understand it. • Knowledge means that leaders should actively learn about the cultures present in their organizations. They need to dive into researching these cultures, comparing their similarities and differences with their own, and understanding how these cultural factors impact things like business operations, interactions between people, and even things like language rules and nonverbal mannerisms. • Strategy is like a leader's game plan to navigate this diversity and minimize conflicts that might arise in a culturally diverse workplace. • Action is all about putting that research into practice. It's about adjusting communication styles – things like tone, gestures, facial expressions – and adapting behaviours during interactions with others. This requires leaders to be flexible and open to change. And let's not forget, leaders should always remember that effective leadership and a creative culture go hand in hand. They are great partners in progress. Dr Chuma Osuchukwu is the author of The Learning Leader and the 5 Perspectives of Change Leadership, 3rd Edition. Get a copy here: https://tinyurl.com/2cahx6hc *Ang et al, 2008. Handbook of Cultural Intelligence. New York: ME Sharpe.
by Dr Chuma Osuchukwu 10 Aug, 2023
Leaders’ decisions stir the lives of people within their spheres of influence in various directions. Leaders are in control of the decisions they make but what they do not have control over is the consequences of those decisions in the lives of people. That calls for careful considerations and sober reflections before major decisions are made. To mitigate some of the major outcomes of those decisions, if they turn out to be like a car swerving out of control, leaders need to bear in mind and accept that their decisions are not laws set in stone. This means that a leader must be prepared to revisit, review, refresh and revise decisions when it becomes necessary to do so. Leaders should also accept that there is hardly any major decision that have far reaching consequences for the led that will have the support of everybody. It is fair to say that leaders are aware of this, but some find it difficult to accept it. For such leaders, opposition of any kind presents a frustrating experience and may be viewed as a cog in the wheel of progress. For those leaders, opposition or disagreement with their decisions might seem like an attack on a good cause. Constructive opposition carries a message. It is part of the leadership process and makes for good governance if engaged with appropriately. This is because no leader has the monopoly of wisdom to possibly cover all the dimensions of an issue while making a decision. Often opposition highlights those loopholes in the issue under discussion. Leadership can quickly degenerate into dictatorship in the absence of opposing voices. Therefore, the value of opposition in leadership is high and demands attention. It acts as a check and a balance for the leader, which is a good and safe thing for all concerned. It helps the leader to reflect and refine decisions made. Though it may be uncomfortable for the leader making the decision, it makes room for modifications on decisions or even a change of plan. For the dissenting voices, modification of leadership decision makes that decision easier to buy into. Take for instance, the various voices that have been raised on the Ultra Low Emission Zone (ULEZ) policy from the office of the Mayor of London. The conflicting voices have come from various quarters. The leaders of different boroughs, the Labour party, the Conservatives, protesters on the streets, climate enthusiasts, the courts etc, all have their own views on the decision the Mayor of London made in terms of scope and timing for the implementation of the ULEZ policy. As a result, few changes appear to have been made to the initial decision. That is the value of collective leadership. In situations that create conflicting views and clash of authorities, it serves the leader and the people well when the leader sets apart personalities and personal considerations. This helps the leader to focus on the messages of the opposing voices with a view to achieving a win-win situation. Achieving that win-win situation, requires few paradigm shifts for all concerned but more for the leader who takes the final decision. The leader needs to detach emotionally from the initial considerations that led to that decision. At that point the decision should cease to be ‘my decision’ and become ‘our decision’. As long as it remains ‘my decision’ the emotions of and attachment to that decision are still with the leader and it will be difficult for that leader to look at that decision objectively because the leader still owns it. It should be emphasised that it is a strength, not weakness for a leader to reconsider a decision made when factors that were not in view when that decision was made come to light, often from the opposing voices, for the greater good of all concerned. This can only happen if the leader adopts the mindset of negotiation that is not hinged on defending the decision already made but with a view to reviewing that decision through the lenses of others in the negotiation. The way to achieve this position, is contingent on two broad ways: First, the leader should adopt the Learning Leader’s mindset and second, use perceptual positioning to get into every party’s shoes with a view to fully assess and understand their perspectives. When practiced on regular basis, this will help the leader to make effective decisions that enrich the lives of people. This is the value in good governance. Dr Chuma Osuchukwu is the author of T he Learning Leader and the 5 Perspectives of Change Leadership, 3rd edition . Get your copy here: https://tinyurl.com/2cahx6hc
by Dr Chuma Osuchukwu 13 May, 2023
Reaching a significant level of success in your coaching business involves a combination of personal development, professional expertise, and effective marketing. Here are some key steps to help you on your journey: Master your craft: Continuously learn and develop your skills in coaching, leadership, and business management. Stay up to date with the latest trends, research, and best practices. Attend workshops, conferences, and seminars, and consider pursuing relevant certifications. Develop a niche: Identify and specialize in a specific area of coaching where you can leverage your strengths, passions, and expertise. This will help you stand out in the market and attract clients who are looking for specialized guidance. Build your personal brand: Cultivate a strong personal brand that reflects your values, expertise, and unique selling proposition. Establish a professional online presence through a website, blog, and social media platforms. Share valuable content, insights, and success stories to demonstrate your credibility and build trust with your target audience. Network: Build relationships with other professionals in your field, as well as with potential clients and referral sources. Attend industry events, join professional associations, and participate in online forums and communities. Networking can help you learn from others, gain visibility, and acquire new clients. Develop your coaching skills: Hone your listening, questioning, and communication skills to become an effective coach. Learn different coaching methodologies and tools to facilitate the growth and development of your clients. Practice empathy and emotional intelligence to better understand and support your clients. Create a results-driven approach: Focus on delivering tangible results for your clients. Establish clear goals, develop tailored action plans, and track progress. Continuously refine your approach based on client feedback and results to ensure your coaching remains relevant and impactful. Offer a range of services: Diversify your offerings to cater to different client needs and preferences. Consider providing one-on-one coaching, group coaching, workshops, webinars, or online courses. This can help you reach a broader audience and increase your income. Leverage testimonials and referrals: Encourage satisfied clients to share their experiences and success stories. Request testimonials, case studies, and referrals to help build credibility and attract new clients. Automate your systems: This eases your operations and ensures that other people can get involved in your business and replicate what you do. Perhaps, this is one of the best keys to upscaling your coaching business. Personal development: Set aside time for self-reflection, meditation, or journaling to maintain your balance and growth. Seek mentorship: Find a mentor or coach to help you navigate your own professional journey. Continuous improvement: Learn from your experiences and regularly evaluate your coaching practice to identify areas for improvement. Invest in your own growth: Seek out mentorship, coaching, or professional development opportunities to further your own growth as a leader and coach. Reflect on your successes and challenges, and continuously refine your approach and offerings. Stay persistent.
by Dr Chuma Osuchukwu 10 Jan, 2023
In part one of this series, I mentioned that every organisation is susceptible to crisis but that your mindset as a leader is fundamental in determining the organisational approach to every crisis . I also suggested that your mindset can in some cases be the trigger for the crisis . The importance of a leader’s mindset is underscored by the impact it can have on the organisation if it becomes a bigger problem than the crisis itself. The leader’s view and approach can turn the crisis into an opportunity or threat for the organisation. As demonstrated in part one of this series, every crisis changes your organisation in some way but the course of that change is linked to your mindset as a leader. The change your organisation experiences is a good and desirable one, if it makes your organisation better than it was prior to the crisis. In this part two , I will be highlighting a leader with a different mindset from that of part one in relation to organisational crisis. This will, hopefully, help you to assess whether your approach to your organisational crisis, past or current, is the bigger problem than the crisis itself and if so, what you can do about it . If you are working to either stem or use crisis moments as opportunities for the development of your organisation, I will invite you to explore this brief article with me . Clear and Compelling Vision Image yourself leading an organisation that has a very clear and compelling vision but only on paper. The vision is so good on paper only because no one cares about it or follows it in the tactical or strategic decisions made in the organisation. The consequence of this lacklustre organisational attitude to its vision is low staff morale, employee underperformance, unresolved conflicts across the organisation and blame culture among other toxicities. Everyone adopts the herd instinct for fear of victimisation and reprisals. This complicated situation can be best described as a house of confusion and despair. This paints the picture of an internal crisis as opposed to the crisis in part one. It is doubtful if you as the leader of this organisation will view this crisis as an opportunity given the overwhelming, intricate and interwoven issues here, yet it could be. Leadership Mindset Your mindset as the leader of this organisation is possibly that ‘the vision of the organisation is clear enough for everyone to understand and follow.’ Your assumption is probably that ‘I paid them to do the job, they better get on with it’ or you could be assuming that all the employees are self-motivated and will instinctively know what to do to achieve the organisation’s vision once they see it. This good intentioned belief could well be the problem. It is most probably the main issue because you have overlooked the fact that a vision only works if it is worked on. The leader may also have ignored the process that translates the vision into reality. A vision may be the organisational compass, but it needs hands and legs to take the organisation to its destination. Limited or no actions will, therefore, frustrate the good intentions of the leader as well as the organisation as a whole. With this mindset, it is difficult to see how the leader can view this crisis situation as an opportunity even though there may be some opportunities there. The point I am trying to make here is that a leader who chooses to adopt a Laissez faire attitude towards running your organisation can easily precipitate an internal crisis irrespective of how good your vision is. Confronting The Situation To confront this situation and successfully turn it into an opportunity, a different mindset is needed. The mindset that created the problem will not be sufficient to solve it. I will suggest a mindset of accepting responsibility and accountability as the creator of this problem in the first place and resolving to fix it. So, a mindset of ‘I created this mess, I will clean it up’ will go a long way. It is a mindset that brings positive changes to the organisation and if this mindset engenders some actions towards the resolution of this crisis, then the crisis is an opportunity rather than a threat. With this mindset in place, you and your executive coach can then begin to make sense of the whole situation by isolating its various constitutes to analyse them in depth, synthesize them and devise a workable plan to respond to the situation accordingly. This approach will enable you to see opportunities in an otherwise threatening situation. The opportunities can range from a critical review of the organisation's vision, barriers to its effective implementation, change of attitude to work, to prompt and effective conflict resolution. The opportunities in here are many and can be tapped into with a different and effective mindset.
by Dr Chuma Osuchukwu 07 Nov, 2022
Following recent reports from major print and digital news media like Reuters, Wall Street Journal, Financial Times, BBC, Sky, CNN, etc, the UK economy is on the edge of recession. Some of them even claim that the UK is already in recession. The Financial Times of November 3, was very direct when it reported that ‘the BOE’s [Bank of England’s] 0.75 percentage point increase to 3 percent took interest rates to their highest point since 2008.’ It further added that ‘even if interest rates stay on hold at 3 percent, the BOE still forecasts a recession for five quarters, based on higher energy prices and mortgage costs.’ This means that the recession is likely to remain with us till the first quarter of 2024 at the least, following the BOE’s forecast. The question then is, what does this mean for leaders in all sectors of the UK economy and how can executive coaching intervention help leaders and organisations to wade through this wave of recession that has now become a reality? Recessions compel leaders and organisations to adopt the usual cost cutting measures like, laying off staff, minimising or suspending capital expenditures, renegotiating terms with suppliers, putting new investments on hold, etc. These short-term strategies are designed to buffer the immediate effect of the recession, which on their face value are good measures but there is corporate existence after recession. Going by previous recessions, many leaders seem to focus entirely on the survival of their organisations during recessions but could there be other ways apart from survival strategies to ensure that organisations thrive after recession? There are pertinent questions that must be addressed as the short-term measures are being put in place. For example, would leaders be able to hold in tension, the short-term decisions of organisational survival and strategic decisions of organisational growth and productivity? Yes, growth in a period of general economic decline and less consumer demand is possible! In the survival strategies, how would the core staff members be motivated enough to shoulder increased responsibilities as a result of layoff of their colleagues, and still maintain their mental health? The panic that results from the effects of recession on organisations can sometimes lead to actions that sabotage organisations’ performance, productive and progress. The good news here is that, contrary to general expectations, recession is not all about bad news of shrinking GDP, price increases, lowering of production of goods and services etc. The impact recession has on an organisation is dependent on the measures or lack of measures that are put in place as it is becoming evident that recession is here with us. It needs to be borne in mind that recession does not affect every organisation in the same way. While some decline, others thrive in recession and the question is why? What do the organisations that thrive in recession do or avoid doing that others that decline are not aware of? While the leaders that panic and take short term decisions and actions at the expense of strategic decisions often get adversely affected, the leaders that do what sometimes appears counter intuitive, take advantage of the opportunities that recession creates. During this recession, that is likely to be more than a year-long in duration, if the forecast of Bank of England is correct, leaders that are creative and innovative with their decision making, those that focus on holistic thinking, will be well positioned to take advantage of great opportunities in the recession. For such leaders, one of the major things to focus on at this time is leadership development. This is where executive coaching comes in. Executive coaching has been shown to be a very effective leadership development intervention in and out of recession. The leaders who do not engage with executive coaching may not have familiarised themselves with the benefits that personal experience and research have validated as being incredibly useful to leaders and their organisations in times like this. These benefits include: • Enhanced performance in relation to direct reports. Leaders who engage in executive coaching not only experience higher and better performance themselves, they engage better with those they line manage. • Executive coaching challenges leaders to think creatively as ‘desperate situations demand desperate measures.’ In times of recession, leaders would need to enlarge their capacity by engaging with ‘external brains,’ that is, executive coaches that are not in the situation with them so that they can bring in fresh perspectives to activate the minds of the leader and collaboratively create new ideas and new outcomes for the organisation. • Executive coaching enhances the influence and authority of the leaders who carry their teams or organisations into creative solutions at a faster pace, sometimes through unorthodox ways, to keep their organisations afloat and progressing during this period of economic downturn. Whatever format, sounding board, challenger, professional mirror, facilitator, etc, the executive coach helps the leader prioritise competing demands. • Executive coaching is a cost effective intervention that returns huge ROI and delivers on specific strategic objectives. The return on investment is quantifiable and easily assessed to determine its contribution to the development of the organisation. • It brings about the development of a coaching culture within the organisation. The purpose of this is to create more leaders, not followers. In the coaching culture, things get done because every leader is taking initiatives towards the realisation of the organisation’s vision even in precarious times. • Leaders are assured of high confidentiality and personal attention on complex matters during this crisis period. The leader’s confidential matters are sealed and help give the organisation, a competitive advantage in normal as well as in crisis times. I can go on listing all the benefits of executive coaching for leaders and organisations, many of which you already know or have benefitted from. The important thing, however, is that from experience, it is better to start working with an executive coach who can think creatively and innovatively with you to put the necessary strategies in place before the wave of recession gets to your organisation. Is this helpful? Dr Chuma Osuchukwu is an experienced Executive Coach. He is a former diplomat and the CEO of Apex Leadership Consult, London. He can be reached on Drchuma@apexleadershipcentre.ac.uk. Want to know more about Dr Chuma, read here .
by Dr Chuma Osuchukwu 04 Oct, 2022
A leader asked me this question one week ago and we had a long discussion on this. I then decided to write this article to express my views on this question to as many leaders as possible who may be asking themselves this same question. Hope you find this one minute read, worth your time. A Leader’s Perspective “I never cease to be amazed at the power of the coaching process to draw out the skllls or talent that was previously hidden within an individual, and which invariably finds a way to solve a problem previously thought unsolvable.” – John Russell, Managing Director, Harley-Davidson Europe Ltd. Credible Media Perspectives Executive coaching is like the proverbial taste of the pudding resting in its eating. Some executives might be wondering (especially in the United Kingdom, where coaching is just picking up pace as opposed to the United States where the value of coaching is well known), why they should invest in executive coaching. This line of reasoning comes because some of the leaders got to where they are currently without the help of coaches. Consider for a moment these three remarks from Business Wire, Harvard Business Review and Fortune. Business Wire put it this way: “The Business demand for coaching is nearly doubling each year. Out of the $80 billion being currently spent on corporate education, FLI Research estimates that $2 billion is spent on executive coaching at senior executive levels in Fortune 500 companies.” Prior to the Business Wire report, the Harvard Business Review had written this: “Many of the world’s most admired corporations, from GE to Gold Sachs, invest in coaching. Annual spending on coaching in the US is estimated at roughly $1 billion Dollars.” Fortune , then brought in the statistics: “In a recent study, training alone improved leadership skills by 22%. When combined with Executive Coaching, improvement jumps to 77%.” Why Executive Coaching? Getting to the top of a leader’s career is an incredible feat but remaining at the top very challenging. Pushing to the top is a goal that requires laser focused determination, and a good number of senior leaders would attest to a certain sense of emptiness or confusion that shows up, albeit, temporarily, as soon as they get to the top of their careers. The question that often envelops the mind of some leaders as soon as the goal of getting to the top is achieved, is, so what’s next? This can be an agonising experience that can linger for days, weeks, months or even years in the mind of a leader. That question is so powerful that it could keep some leaders awake at night because it creates an uncomfortable feeling and a certain sense of emptiness around the leader. The reason for this is obvious. The leader is trying hard to draw from his/her past experiences to make sense of the new challenges that are confronting them. Paradoxically, this sense of not knowing is one of the most productive feelings for a leader to have because it creates discomfort and attempts at resolving this discomfort gives birth to creativity. Experiential Leadership and Executive Coaching From experience, many leaders can attest to times in their careers, where things or processes that were once effective, no longer works. This means that what took you to where you are currently, may not be able to keep you there. This is the dilemma of leadership but a great place be in order to re-calibrate for the next intentional and deliberate move. An executive may choose to stay there until he/she figures out how to procced or enlist the services of an executive coach to serve as a facilitator or a midwife to help the leader give birth to the greatness within. Leaders who want to let go of some of their old assumptions and presumptions in order to embrace new ways of thinking and performing have a need for executive coaching. This is because a competent executive coach will take you to where you may not be able to take yourself to. This is not because the coach knows more than you but because he/she understands how to get you to access your internal resources. The role of the coach is to help you to learn not to teach. Executive coaches do not teach, they facilitate. They are your special aides enroute to a greater you. You may be a great leader, but to maximize your capabilities, you must become a learning leader. A competent executive coach is aware that the abilities and skills you have relied on to get to where you are is only the tip of the iceberg. The coach knows that you have reservoirs of abilities that you have not yet accessed and may not be able to tap into them on your own. The job of the executive coach, therefore, is to focus on your potentials to draw them out and power your performance. A competent executive coach is a skilful user of questions to stir and help you discover your unexpressed abilities. You Get What You Chose. The Power is in your hands to choose what you want to get out of an executive coaching experience. It is important to determine from the outset in your contractual terms with your coach what you would like to get out of your coaching experience. Doing that would enhance clarity for you and your coach. It is important to define clearly the approach you want the coach to adopt. Are you looking for typical coaching processes, a sounding board/sparing partner, advice or mixed approaches (integrative approach)? This will position your coach to focus on the direction you are willing to go or the direction you are not willing to go but need to go in order to achieve your desired outcomes. The choice is yours and the benefits of your coaching experience, that of your organisation and those you lead. Is this helpful? Dr Chuma Osuchukwu is a Business and Executive Coach. He is a former diplomat and the CEO of Apex Leadership Consult, London. He can be reached on Drchuma@apexleadershipcentre.ac.uk. Want to know more about Dr Chuma, read here.
by Dr Chuma Osuchukwu 05 Sept, 2022
Having explored some of the challenges a Chief Executive Officer promoted from within the organisation could face in the last post, we now turn our attention to the Chief Executive Officer who has been hired from outside an organisation and the likely challenges those undertaking the role could face in carrying out their responsibilities. Some of the challenges we identified with the CEO promoted from within, may still be applicable to the CEO who is coming from outside of the organisation. However, there are some unique challenges that the CEO coming from outside should be aware of and the need to mitigate them. We will highlight these unique challenges here in today’s post. You don’t know what you don’t know until you know what you should know. Leaders can only function consistently with the knowledge they have. As a leader coming from outside of the organisation, you are the new ‘kid on the block.’ Every other person in the organisation knows the system well and may have settled into it except you. So, you are coming into a system with a number of blind spots. Quality information gathering is, therefore, very crucial for you at this early stage of your engagement. As a newly hired CEO, you might discover that: • the culture of your new organisation differs radically from what you were used to elsewhere. This compels you to learn at a very fast rate how this culture works and what you need to do with it. You may wish to go with it, moderate aspects of it or change it entirely. No one reserves any time for you to learn before delivering results expected from you. This is a huge challenge. • different pressure groups within the organisation would be scrambling to connect with you at the earliest possible time of your engagement with their ‘goodwill messages’ and perhaps, their ‘hidden’ agenda. Knowing where to ‘pitch’ yourself or who to rely on at this critical stage of your tenure can be quite challenging. It could set your tenure on the right course or create a bumpy ride for you. Evaluating the various voices, you hear and coming up with your unique ways of doing things can also be a challenge. An independent voice is useful at this point to help you think through issues and reflect on the various things that are happening at the same time. • you may be confronted with internal stakeholders who would want you to run the organisation in line with the system they are used to. Doing the contrary could produce passive resistance which you must find a way to resolve or overcome. • you would be juggling the expectations and interests of major external stakeholders • everyone is eager to hear your vision for the organisation. At what point do you unveil your vision for the organisation? Have you had the time to study the peculiarities of the current vision and why there should be a change of direction? • You may need to adjust your executive presence to have a strategic fit with the organisation you are now in. • your board members have different ideas of how things should work in your organisation. How do you deal with that? You need an effective board to be successful in your tenure. So how do you do proceed with these challenges if you encounter any of them or even all of them? An external executive coach, who has the qualifications and the experiential knowledge of what you are experiencing would be a good ally to work your way through this crucial period of your engagement with a new organisation. The executive coach will create the enabling environment for you, explore things with you, challenge you and help you to think and reflect at a very deep level on these leadership existential issues. The coach is there to offer you an honest, objective platform to view the complexities of your role and explore the various components of your leadership matrix. An external executive coach is a trusted ally who you can rely on to explore and evaluate your thoughts and ideas with a view to collaboratively develop and achieve your desired outcomes. These are challenges no doubt, but often times, they are not as daunting as they appear at first glance when you have the right resources. If you would like practical help on this or on related issues in your organisation, I will be happy to help. Dr. Chuma Osuchukwu is a former diplomat, a business and executive coach, Leadership and Management consultant, an academic and the author of the best selling book ‘The Learning Leader and the 5 Perspectives of Change Leadership' (2nd edition). He is a Senior Fellow of the Higher Education Academy, Fellow of the Institute of Leadership, Fellow of the Institute of Management Consultants, etc. He is the CEO of Apex Leadership Consult, a coaching and mentoring organisation. He can be contacted through Drchuma@apexleadershipcentre.co.uk
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