The latest recession is particularly treacherous because it's so broad, hitting Wall Street, Detroit, the housing industry and other pillars of the economy.
Among the lessons seared into the hides of Chief Executive Officers (CEOs) is this one: Resist the inclination to hunker down and wait out the troubles. Remaining proactive and decisive improves your company's competitive position as the economy begins to recover. John Thompson, vice-chairman of the headhunting firm Heidrick & Struggles, says it's particularly important in a downturn for CEOs "to bring an extraordinary sense of urgency."
While the Great Recession is tough on just about everyone, rookie CEOs are faced with what will likely be the biggest crisis of their careers. Employees, investors and board members looked to them for guidance, but their task is complicated by swooning stock prices and, often, mass layoffs. "It's easy to look like a great leader when everything is going well," says executive coach Marshall Goldsmith.
Why Every CEO Needs a Coach
Not all the newly minted chief executives make it through the flames. A record high 1,482 chief executives resigned, retired or stepped down from public and private U.S. companies in 2008, according to Challenger, Gray & Christmas, which helps laid-off executives find work. An additional 1,227 left their jobs in 2009.
Every Chief Executive Officer (CEO) is "on the stage" the majority of his or her work life but needs pre-performance quiet and confidential time to be creative, bounce their ideas off someone in a safe environment, and explore the unintended consequences of their future actions. Engaging in a personal coaching conversation is a refreshing opportunity where the CEO can be completely open and creative in a confidential and safe place.
When asked what was the best advice he ever received, Eric Schmidt, Chairman and CEO of Google, recognized it was from John Doerr, who in 2001 said, "My advice to you is to have a coach." Schmidt initially resented the advice, because after all, he was a CEO. He was pretty experienced. Why would he need a coach?
CEO Schmidt asked himself, "Am I doing something wrong?" His argument was, "How could a coach advise me if I'm the best person in the world at this? But that's not what a coach does. The coach doesn't have to play the sport as well as I do. They have to watch you and get you to be your best. In the business context a coach is not a repetitious coach. A coach is somebody who looks at something with another set of eyes, describes it to you in [his] words, and discusses how to approach the problem."
Schmidt said, "Once I realized I could trust him and that he could help me with perspective, I decided this was a great idea. When there is [a] business conflict you tend to get rat-holed into it. [The coach's] general advice has been to rise one step higher, above the person on the other side of the table, and to take the long view. He'll say, 'You're letting it bother you. Don't.'"
When a person faces a challenge and becomes stuck, he or she may seek the services of a personal coach. Once this commitment is made, the person begins to experience a different, more hopeful, world as his or her perceptions evolve in meeting the personal challenge. Professional coaches understand that the success of a coaching engagement depends on the willingness of the person-being-coached to commit to his or her personal development process.
Source: BLOOMBERG BUSINESSWEEK, March 1, 2010 and FORTUNE, July 6, 2009