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Famous Executives Who Had Executive Coaches

Posted on May 27, 2020 at 9:15 PM

If you have considered getting an executive coach, you would be in some good company. According to a 2013 survey by Stanford Graduate School of Business professors, 51 percent of senior executives reported they "receive coaching or leadership advice from outside consultants or coaches." Among those are some big names. Here are some of the most high-profile executives who have worked with a coach.

Steve Jobs, Co-founder and CEO of Apple - The late Steve Jobs had a reputation as being a demanding and difficult leader. He was also inquisitive. In a moment of self-reflection, he brought in executive coach John Mattone for an assessment and a couple of coaching sessions. You can read Mattone's description of those sessions on an article on LinkedIn. 

Marc Benioff, Founder, Chairman, CEO of - Benioff counts legendary coach Tony Robbins as a valued partner, with this endorsement: "Tony Robbins and his strategies and his tools have been at the core of our culture from the beginning. He has been one of the critical keys to's leadership in cloud computing and its growth into an over $6 billion company."

Brian C. Cornell, Chairman and CEO, Target Corporation - Cornell has worked with famed coach Marshall Goldsmith and endorsed him this way: "Marshall is an amazing coach who helped me become a better leader and a better person. He has a unique blend of intelligence, insight and practical steps to improve performance. As he says in his new book Triggers, there is a big difference between understanding and doing. We all understand what to do, but Marshall gives us the tools to actually change for the better."

Roger Enrico, CEO of Pepsi - The late Roger Enrico became the CEO of Pepsi in 1983 at the age of 38. He would stay with Pepsi until he retired in 2001. Like Steve Jobs, Enrico also got coaching from John Mattone. Enrico valued coaching so much he launched a program at Pepsi where he personally coached a group of nine proteges at a time in a structured, 18 month-long program he started and personally led.

Goldman Sachs - The Wall Street firm that has produced many distinguished alumni --including four recent US Secretaries of the Treasury -- values coaching so highly they have embedded it in their executive development. Here is a description from their website: "Our nomination-based leadership development programs provide vice presidents and managing directors with skills training, individual coaching and networking opportunities to help them to continue to grow in their careers. In addition, we offer our most senior leaders executive coaching, leadership acceleration initiatives and other training through Pine Street, our internal leadership academy." They explain further - "Through the years, Pine Street also moved in the direction of offering fewer, more experiential programs targeted at critical points in a partner’s career, with a strengthened focus on executive coaching and executive assessments."

Hiring an executive coach can be a worthwhile investment for executives of all types. A coach can be an independent sing board to pressure test ideas, brainstorm, and prepare for crucial conversations. A coach can provide feedback to help find blind spots to work on. A coach can also help a client set a self-development plan and keep them accountable for following it. For those seeking to continue climbing up the ladder, it can provide a valuable competitive edge over executives who insist on a "go it alone" approach. For executives content with where they are, coaching can be a great way to make work more enjoyable ... for themselves and everyone who works with them.

Executive Coaching in a COVID World - 5 Predictions

Posted on April 17, 2020 at 8:05 PM

Like all industries, the COVID-19 pandemic is having an impact on the executive coaching industry. It will also shape the executive coaching industry in the future. As a strategy consultant turned executive coach, here are five trends I see emerging.


1 - Cutbacks in Spending - The pandemic has probably launched a serious recession and recessions mean organizations and individuals slash expenses. Coaching will take hits. Some existing coaching relationships will be cancelled or put on hold. New coaching engagements will come in slower. This will be the immediate, obvious effect.


2 - Validation of the Value of Coaching - Executives are in crisis management mode right now. COVID is accelerating the need for leadership, stress-management, decision-making, and creativity from executives. Executives who already have coaching relationships may find that coaching to be especially valuable during this crisis management. Having a coach as an independent sounding board to talk through those issues can be particularly helpful. Executives who are benefitting from coaching right now may become loyalists and evangelists for coaching in the future.


3 - New Needs for Coaching - Executives are going to be challenged even after the initial crisis-management phase of COVID ends. Leading teams is going to be a different challenge going forward, at least until there is a vaccine for COVID. How do executives work through the difficult decisions they need to make in the face of the recession? What conflicts will bubble up from communication breakdowns from teams who don't see each other in-person as much, if at all? What do employees, who feel scared and disconnected, need from their leaders these days? How do executives maintain their relationships with their bosses, customers, suppliers, and other stakeholders in the new world? Coaches will be invaluable resources and sounding boards to executives to work through issues like these. Organizations and individuals who can afford an investment in coaching will likely see good returns on that investment.


4 - More Comfort with Virtual Coaching - Video communications channels like Zoom have exploded in use over the last months due to the social distancing required by COVID. Many executives who may have been slow adopters of video conferencing have been forced to become users. As they feel more comfortable with video-conferencing's ability to replace face to face meetings, these executives may start seeing other potential uses of video conferencing too. Executive coaching, which is often phone or video-conferencing based, may start getting on the radar of many executives who never thought about it before.


5 - Niches Become Even More Important - Coaching will likely migrate even more to virtual meetings over in-person meetings. Why meet in person when you can talk over the phone or video? Some coaching clients will realize they are not constrained to find a coach in their same city. They will search for expertise and fit over proximity. Why settle for choosing between coaches in your city when you can search for the exact right coach for you anywhere on the globe? Coaches who have mastered a deep, well-defined niche will benefit. Coaching customer niches can be vertical/industry-based (e.g., financial services executives), horizontal/profession-based (e.g., ex-consultants transitioned to corporate roles), or highly-specialized (e.g., doctors dealing with private equity suitors.) Coaches who have deep expertise in a niche can serve anyone in the world. Language and time zones will be the main barriers to overcome in global coaching relationships.


If you are a coach, it is time for some coaching. How is your coaching practice going to weather the current COVID storm? How can you thrive in the post-COVID world? What powerful questions would you ask if you were coaching yourself?

5 Private Equity Predictions in this Recession

Posted on March 26, 2020 at 2:25 PM


According to the Global Private Equity (PE) Report 2020 by Bain & Company, uninvested PE funds - "dry powder" - hit a record high of $2.5 trillion in December 2019. More than half of it sits in North America. What will happen with PE firms, and their massive reserves, during the coming recession in the United States? Here are five predictions based on my reading of the latest Bain report.


1 - PE Firms Planned for this Recession - Most PE general partners believed the economy had peaked (57%) or already entered recession (14%) when surveyed in December 2019. While PE firm leaders may not have foreseen the speed and cause of this Coronavirus recession, many had plans for when the recession hit. Those planners may be ready to act fast.


2 - Dry Powder to Target Distressed Companies - $830 billion of the $2.5 trillion in PE dry powder is targeted for buyouts, according to the Bain report. Many fundamentally healthy companies that were attractive targets before the Coronavirus will be suffering financial distress during this crisis. Those companies may become less expensive to acquire than they were just months ago. During the 2008-09 recession, for example, EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) multiples of deals that did go through shrank. With an investment horizon of several years instead of several months, PE firms may see attractive buying opportunities.


3 - Dry Powder to Reinvest into Existing Portfolios - Companies within PE firm's existing portfolios are also being hit financially by the Coronavirus impact. These portfolio companies may need cash infusions which may present opportunities to PE firms to increase equity or buy debt. The recession provides opportunities (or needs) to double down on their initial investments where they still see value.


4 - Consolidation to Largest Funds - In the last recession of 2008-09, about 1/4 of private equity funds stopped raising capital. This recession may prove to be similar, especially since the PE market has become crowded and competitive through the last several years. A reduction in PE firms would likely mean less competition for acquisitions, investors, and PE professionals.


5 - Funds Seek Extensions - In the last recession, both the number and average value of buyout deals dropped dramatically for two years before increasing again. PE firms could be left holding years of uncalled capital and may need to seek extensions this time around.


Every industry is being challenged by the economic impact of the Coronavirus pandemic. The Private Equity industry is unique in that is has $2.5 trillion in capital waiting to be used at a time when many places need capital. It makes for an interesting year.



7 Best Books about Management Consulting

Posted on March 1, 2020 at 5:45 PM

There are about 700,000 management consultants in the USA, according to Statista. While from from the biggest industry, management consulting does cast a big shadow because of the impact, scrutiny, and alumni it generates. Since I started my business career as a management consultant with Bain & Co., I've read many books about the industry. Not only did these books make me a better consultant, they have made me a smarter client of consulting too.


Here are the seven books I recommend to anyone who is, or wants to be, a management consultant. These books are also useful for people who work with management consultants as a client, or with ex-consultants as colleagues.


1 - The Lords of Strategy by Walter Kiechel III - This book from 2010 gives a historical overview of how the strategy consulting industry grew in the powerhouse it is today. It reads more like a novel than a technical manual, especially as it tells the often intertwined stories of the founders of the traditional leaders in strategy firms - McKinsey, Boston Consulting Group, and Bain. It tells the story of how some of the frameworks that MBA students learn today - e.g., the learning/experience curve, the growth-share/"cash cow" matrix, the Five Forces Model - emerged from people in the consulting world. If you are someone who finds insights from reading history, this is the book to read on the history of the consulting industry.


2 - The McKinsey Way by Ethan M. Rasiel - This 1999 book, along with its follow up book in 2001, The McKinsey Mind, offer insights into how the most famous strategy consulting firm works. It describes the process, and several of the frameworks, that McKinsey consultants are taught to use to crack big strategic problems for clients. These are especially useful if you are considering working with McKinsey, either as an employee or as a client.


3 - The Silent War: Inside the Global Business Battles Shaping America's Future by Ira Magaziner - This 1989 book introduced me to the idea of management consulting. As an economics student before then, I had thought mostly about business as economic theories and trade policies. This book showed me the power of individual corporate strategies in driving business value. The author, a former Rhodes Scholar, shares several case studies from his career as a management consultant. He writes them more as compelling human stories than as dry business cases. The book is old and the examples are dated, but I remember it decades later, which says something about it. Read an old review here.


4 - Turnaround by Mitt Romney - Before he was a governor, presidential nominee, and senator, Mitt Romney started his career as a consultant with Bain. In this 2004 book, Romney tells the story of how he led the effort to save the 2002 Winter Olympics in Salt Lake City, after scandal and financial mismanagement threatened to torpedo them. The story reads like a memoir, but the management lessons and techniques that Romney learned as a consultant are constant themes. From cost-cutting to finding new revenue to driving organizational change, Romney had to lead his team through it all. It is an insightful way to see how someone steeped in consulting actually used those lessons to successfully turn-around an organization as the leader. As a bonus, Romney shares many stories from his Bain days in the book as well.


5 - The Elegant Pitch by Mike Figliuolo - Full disclosure - the author and I are friends, co-authors, and colleagues, and we teach a course based on this book. That said, I would recommend this 2016 book anyway. It teaches a framework to communicate big ideas in a succinct and compelling way. The author is a McKinsey alum, but the framework is much the same that I learned, used, and taught at Bain. By applying the process described in the book, you can avoid the "analysis/paralysis" that many organizations have where meetings are strangled by 50-page slide decks that have no clear point and generate no decisions.


6 - Death by Meeting by Patrick Lencioni - While not exactly a book about consulting, the author is a former Bain consultant and his lessons come from the experience. Lencioni's books are written as fables, with each telling a fictional story designed to teach leadership lessons. This 2004 book was the first that introduced me to his whole series, which have been remarkably successful.


7 - The 10 Day MBA: A Step-By-Step Guide To Mastering The Skills Taught In America's Top Business Schools by Steven Silbiger - Not every consultant gets an MBA. This book is a good overview of what an MBA entails if you didn't go to business school. While it won't teach you everything an MBA learns, it will give you the overview so you know what you have missed. It gives you just enough content on the topics to enable you to at least understand a conversation about the topics. The 4th edition of this book came out in 2012.



5 Ways Marketers Alienate Customers - And How to Avoid Them

Posted on February 25, 2020 at 2:40 PM

4Ps. 5 Forces. 3 C's. Marketing professionals learn many frameworks in business school and beyond. One framework is missing, however - how to avoid alienating customers through marketing practices that can go wrong. As more companies move to subscription-based models, the lessons from poor customer experience in industries like financial services, cable television, and mobile phones can provide lessons in how to avoid bad customer experiences. Here are the five biggest areas where marketers need to minimize the risk of harming their customers.


1 - Penalty Overuse - Penalties for things like late payment serve a valid purpose to shape customer behavior. The ability to levy penalties also creates an "easy money" temptation for service providers. If you are relying on penalty fees for things like late payments for a substantial part of your profit, you are courting risk because you are creating incentives to impose penalties beyond their valid purpose. If you are charging a penalty fee to terminate an account, for example, that may be a lazy way to fight customer attrition.


Recommended Action - Look at two metrics - the percentage of your profits that come from penalty fees and the the amount of penalty fees your customer service reps are reversing. If those are higher than expected, that can be a sign that you are imposing too many penalty fees.


2 - Product Perplexity - As technology drives product innovation, it also can drive complexity. Complexity can be a good thing if it moves toward mass-customization, where everyone gets a product tailored for their needs. Product complexity can be a tempting cloak to sneak bad customer deals into a product too, though. If you bury changing terms, teaser rates, hidden fees, and other "gotcha's" into your terms and conditions, you are opening yourself to alienating customers down the road. If you make it hard to figure out that total cost of your service, you are asking for complaints.


Recommended Action - Monitor your customer complaints to see where over-complexity is driving an inordinate share of your customer complaints. Re-engineer those out of your product offerings.


3 - Channel Inconsistency - Marketing often means offering different products to different customers. But if you are not providing a consistent marketing experience as your marketing plan intends, you are also courting trouble. For example, if your call center reps have a lot of individual discretion in setting prices without adequate policies and procedures, you are opening yourself to risk of unfair or biased treatment of some customers over others. If you have lots of affiliates marketing your product without clear direction and supervision, you are opening yourself to having your product pitched in ways in your name that are "off-script." Multi-channel strategies can be effective, but they take work to ensure they are delivering on the marketing intent as designed.


Recommended Action - Create clear policies and procedures for all your marketing channels - especially third party affiliates. Train everyone involved and hold them accountable by regularly auditing their performance against those standards.


4 - Vulnerability-Based Targeting - Marketing 101 teaches us why supermarkets put candy and other impulse buys next to the cash register - they are hitting customers when and where they are most vulnerable while waiting to pay. It can be tempting for marketers to focus too much on customer's vulnerabilities instead of on their needs. Left unchecked, clever merchandising tactics can evolve into marketing practices described as "predatory targeting." If your market targeting starts to look like it is based on consumer vulnerabilities more than distinct needs - e.g., "going after" the elderly or those with limited English-language proficiency - you are exposing yourself to risks of being seen as a predatory marketer.


Recommended Action - Consider getting an outside, independent audit of your marketing efforts to assess your risk of being seen as targeting vulnerable populations.


5 - Incomplete Accountability - Sales incentives are core to marketing strategies because they work. Sales agents sell more because they are rewarded for doing so. Risks emerge when the incentives that sales agents see do not include the full cost of their actions. If a sales person isn't held accountable for customer dissatisfaction after the sale, they may have a temptation to go "off script" and say whatever they need to to close the sale. If your sales performance metrics don't include things about the resulting default rates, attrition rates, and customer satisfaction, you are asking for trouble. And this goes not just for your own employees, but for your marketing partners and vendors too.


Recommended Action - Assess your sales performance metrics and incentives to see if they are balanced to include accountability with customer satisfaction post-sale.


While not a complete list of risks, these are the handful of practices that probably drive the bulk of customer alienation today. If you assess and manage your risks in these areas, you should avoid a lot of pain in the future.

Photo by Moose Photos from Pexels

10 Insights from the 2019 Chief Learning Officer (CLO) Exchange

Posted on January 19, 2020 at 2:55 PM

Last month, I attended the CLO Exchange in San Diego, a conference of the top learning and development (L&D) leaders from about 50 companies in the United States. Together, these companies employ about 2.3 million employees in the US and 3.8 million globally. It was an intense three days of information-sharing, brainstorming, and networking. While the companies represented were not a random, perfectly-representative sample of CLOs, they still offer a useful snapshot of the demographics and interests of the senior-most learning executives in the USA. Here are the biggest 10 insights I gleaned from the meeting.


1 - "Leadership / Executive Development" is the Clear #1 Focus - When asked a free-form question about their top priorities for the coming year, 40 percent of the group mentioned leadership or executive development as one of their top priorities. This was far and away the top area mentioned. The need was described several different ways, such as: "elevate leadership capabilities at all levels," "roll out tiered leadership learning journeys, customized to the experience/leadership maturity level of the individual," "bridge leadership skill gaps," and "build the leadership bench."


Recommendation -> If you don't have leadership development as one of your priorities, reconsider your priorities. Leadership is like air and water - you don't appreciate how important it is until it isn't there. Leadership takes continual development to keep pace in the face of organization growth and executive attrition. If you haven't added or refreshed your leadership development in a while, start looking for good training and other programs now.


2 - Developing a "Learning & Development Culture" is the #2 Focus - The second most prevalent priority mentioned was to develop a learning and development culture in their organization. This builds on the momentum that has re-labeled the field from "training" to "learning and development." L&D leaders want to weave continuous learning and people development into the fabric of their organizations' cultures as an everyday value, not just as a task that has to be done.


Recommendation -> Recruit your senior-most executives to talk about the importance of continual learning as the key to organizational success. Arm them with some data and stories of how successful leaders in your organization grew from L&D efforts. Ask them to think about how training and development efforts personally helped them on their own career and leadership journeys.


3 - E-Learning is Everywhere - The third most mentioned priority was the need to offer learning through new digital channels to meet clients needs in more flexible ways. Sometimes this means having a blended approach to training, where an e-learning channel complements other traditional channels, like instructor-led training. Sometimes it means offering e-learning as an alternative or replacement.


Recommendation -> Review your existing programs to see where e-learning could be a valuable addition, replacement, or complement to your existing inventory. Explore growing e-learning channels, such as LinkedIN Learning, as an additional channel to spur learning and development. Often, LinkedIN Learning is already available to your users but they are not aware it is there and they can access it.


4 - On-Boarding is Core - Fifteen percent of attendees said working on their on-boarding/orientation process was a priority. On-boarding and new employee orientation are often a core responsibility of L&D teams. Since it touches every employee and creates a first impression, it is kind of like the base of the hierarchy of needs. You have to make sure your L&D team consistently excels in its role in on-boarding and new employee orientation.


Recommendation -> Before you ask to grow your L&D footprint, make sure you are crushing the basics. Delivering great on-boarding/orientation can be the table stakes your top executives will want to see before you ask for their support to expand and innovate your L&D efforts.


5 - Asked for L&D's ROI? You're Not Alone - Fifteen percent of these L&D leaders said finding a way to measure the return on investment (ROI) in training was a priority for them in the coming year. There doesn't seem to be a one-sized-fits-all silver bullet for measuring the value and outcomes from training.


Recommendation -> This is a tough one, as it's hard to argue against knowing your efforts' ROI. As data continues to get more accessible to measure the effectiveness of programs like online marketing, expect the demands to quantify the ROI of L&D to increase. Think through a high-level approach and philosophy to responding to the question to avoid getting dragged down a data wormhole. With leadership development, for example, start by painting a picture of what happens if you make no investment there. Your best strategy may be to focus on delivering great learning and development results and stand by your overall record as proof of your worth.


6 - LMS/LXPs are Still Rolling - Fifteen percent of the L&D leaders mentioned something with their Learning Management/Experience System as being a priority for the year. For some, it was getting the most out of their existing system. For others, it was rolling out a new system. The vast majority of L&D leaders didn't mention their LMS/LXS as a priority though.


Recommendation -> Before making a big investment in upgrading or getting a new LMS/LXS, make sure you are getting the full use of what you already have. Because they can be complex, included features in LMS systems can often be untapped.


7 - "Microlearning" is the new "Gamification" - The word "gamification" was only mentioned once with the L&D leaders, while "microlearning" came up with about ten percent of them. The biggest interest was in delivering training in small bites to workers on the front line (e.g., retail, food service) when they had time, and the need, to consume it.


Recommendation -> Read up on "microlearning." It will probably be the next learning buzzword that makes it into the management mainstream. Get smart about it before your boss does.


8 - L&D Leader Job Titles Center on "Director" - "Director" was the most prevalent job title at 37 percent, with "Senior Director" at 12 percent, "Assistant/Associate Vice President" at 12 percent, "Vice President / Senior Vice President" at 8 percent, and "Head of" at 10 percent. Four percent were "Assistant / Associate Director" and another 10 percent were "Manager" or "Lead." Only 6 percent had the title "Chief Learning Officer."


Recommendation -> If the leader of your L&D efforts has a title below "Director," consider upgrading it to align with their peers in other organizations and demonstrate that you value the role.


9 - "Learning" and "Development" Have Replaced "Training" - Only 15 percent of attendees had the word "training" in their title, while the word "learning" was in 53 percent and "development" was in 47 percent.


Recommendation -> If you still have the word "training" in your team and job titles, consider updating it to "learning" or "development." "Training" is an input. "Learning" and "Development" are the desired outcomes of training.


10 - Women are Well-Represented in L&D Leadership - Two-thirds of the representatives were women, and one-third were men. In other words, women outnumbered men two to one in this group of leaders.


Recommendation -> Look to your L&D team as a center of excellence in developing women leaders. Consider L&D leaders as you look to fill executive roles outside L&D. Look to L&D for mentors to help grow women leaders in other areas of your organization.


There were many other issues that were also shared as top priorities by at least a few of these L&D leaders, such as employee engagement, artificial intelligence and virtual reality, diversity and inclusion, and succession planning. Perhaps the most important lesson I learned at this conference is how strong the L&D community is. Because L&D doesn't typically center around trade secrets, L&D leaders are open to talking and helping their peers in different organizations. Conferences like the CLO Exchange can be a great way to connect with your L&D peers to share best practices and realize you are not alone in the challenges you are facing.

Photo courtesy of Rene Asmussen on



7 Core Skills for Employee Development Plans in 2020

Posted on December 5, 2019 at 5:35 PM

You get the mass email from HR and feel a familiar dread - "Has it already been a year? Performance management time again?" At a minimum, you probably have to write your self-appraisal and goals for the next year. If you have people reporting to you, you have to write appraisals and goals for them as well. That means more work for you, without any more time to do it. Ouch!

The good news is that there can be a payoff to that investment, particularly in the goal setting for the next year. In addition to performance goals, you should also add goals to improve key skills required for the job and career track. As automation continues to change the workplace, training will be an essential way for people to stay competitive in the workforce. Here are seven core skills trainings that should be included in employee development plans in 2020.

1 - Problem-Solving - Work that is predictable and programable can be done by a machine. Work that includes problems that cannot be solved by machines requires humans. Problem-solving is a core skill that people need to master. Problem-solving means diagnosing a problem and identifying and assessing potential solutions. A great method to solve problems comes from an old source - the centuries-old hypothesis testing process many of us learned in high school science class. Elite consulting firms train their new hires to use this scientific method to solve business problems. 

2 - Communication - Figuring out solutions to problems is critical, but if you cannot communicate those solutions to others, you will not be effective. Elite consulting firms train their professionals in a standard structure to communicate complex ideas in an effective and efficient way. This method can help you communicate your ideas clearly and concisely, which will improve your chances of success. 

3 - Teamwork - People get trained before working with complex technology. Humans are more complex than any technology, and working effectively in teams requires training too. It takes work to set team goals and coordinate individual roles and responsibilities around those team goals. Done poorly, teamwork can drive stress, poor results, and inefficiency. Done well, teamwork can be a fantastic force multiplier. 

4 - Decision-Making - Identifying problems and possible solutions are great, but if you cannot decide between the options, you will be stuck. Decision-making is a skill that can be improved by learning and applying a proven process. Some decisions need a lot of input and time, while others just need to get made quickly. 

5 - Conflict Resolution - People at work compete for finite resources like time and money. People have different opinions on which strategies are the best. Conflict in the workplace is a natural outcome of activity. In fact, if you don't see conflict at your work you may need to worry that there is not enough activity or engagement. It takes skills to ensure conflict is a healthy dynamic instead of a destructive force at work. 

6 - Leadership - If you master the above five skills, chances are you will succeed as an individual performer and be considered for advancement to leadership roles. If you are already leading teams, you always have an opportunity to take on larger leadership roles. Leading people at work is a skill that can be learned and improved. 

7 - Strategic Planning - In addition to learning to lead people at work, you will need to sharpen your strategic planning skills to be an effective leader. You don't have to be a visionary to be a strategic planner. A good strategic plan can also come from a good strategic planning process that generates ideas from your team and prioritized them against your goals. Strategic planning is as much about deciding what not to do as it is about deciding what to do. 

You spend a lot of time on your annual performance management process. Make sure you get a payoff for that work. Use your self-appraisal and development plans to ask your manager for trainings like these that will help you succeed. If you lead people at work, recommend these trainings as needed for your people as you assess their opportunities for improvement. Performance management often focuses on the past. These trainings can show a path forward to future success.

5 Ways to Measure the Value of Corporate Training

Posted on November 3, 2019 at 2:15 PM

I was at a summit of Chief Learning Officers (CLOs) and one of the most common challenges they mentioned was the need to demonstrate a return on investment from training. Unlike investments in "hard" assets like facilities and equipment, investments in "soft" skills through training can be hard to calculate. At budget request time, CLOs can find themselves at a disadvantage to their colleagues who can point to more easily measured improvements in their operations. Here are five ways that CLOs can communicate the value of training in a concrete way.

1 - A/B Testing - One of the CLOs described how he rolled out training to call centers in a controlled testing way. The company decided to invest in training their call center employees in new soft skills like showing empathy and de-escalating emotional conversations. In the roll out, the CLO held off training one call center to be the control in the experiment they could use to isolate the effects of the training. After the training was delivered, they tracked changes in key metrics like customer satisfaction, retention rates, and employee turnover at each of the call centers. Because they kept one call center out as the control in the experiment, they were able to claim the improvement in metrics was due to the training.

Implementation Tip - Ensure the internal clients agree with your testing plan, especially that the site picked as the "control" in the experiment is comparable to the other sites. Plan to roll out the training at the control site at a set time - e.g., 6-12 months later.

2 - Tie to Performance Appraisal Metrics - Since employee appraisals often have common competencies that are scored across all employees, they can provide a way to quantify a "before versus after" impact of training. Identify the competencies that a training is aimed at improving. Gather and compare the before versus after scores on those competencies for training attendees. Compare the change in scores to a similar set of employees that have not had the training (i.e., your "control" in the experiment.) If you have had enough employees go through the training, the comparison can be a solid way to show results on competencies that matter.

Implementation Tip - If you have a hard time mapping a training to competencies your employees are measured against, reconsider the training in question to find one more directly applicable.

3 - Compare it to the Compensation of Students - Identify the cost of the training per person trained and the average annual compensation per person trained. Express the cost of the training as a percentage of their compensation. For example, if a training costs $1,000 per student and the average annual compensation of students is $50,000, that means the training represents two percent of their annual cost. That two percent becomes the one-year "break-even" point for the training investment. That means that if it sounds reasonable that the training will make the students at least two percent better at their job on average, the training is a positive investment.

Implementation Tip - The investment in training is a one-time cost but the benefits should last more than just one year. Comparing the one-time cost to the combined compensation over multiple years can make the break even point be much lower.

4 - Ask Students to Appraise Value - After the training is completed, ask the students to assess the value they received. Beyond the usual survey questions, ask them how much they would pay to get that training. Give them a few relevant costs as reference points, like the average cost of a college course or other corporate trainings they are familiar with. Those will give them comparison points to set a value on the training. While not scientific, they may provide a useful customer insight with dollar signs attached.

Implementation Tip - Choose your reference points wisely. Find one that everyone goes through and can relate to, such as new employee orientation or mandatory trainings.

5 - Get Key Student Testimonials - In the post-training surveys, ask students if they would recommend the training to others. Ask them to write a sentence or two that you can use as a recommendation for others to take the course. Just like customer testimonials are important on many consumer purchases, use those testimonials to demonstrate the value of your training courses.

Implementation Tip - Keep a running list of all the employees you have trained and identify the ones over time who rise up through the organization. Highlight those testimonials when discussing the value of your trainings to show a senior level of support.

Fighting for training dollars at budget time can be stressful for everyone, especially Chief Learning Officers. It can seem impossible to point to a concrete return on investment calculation for a new training in soft skills. The best way to show the expected return on investment from a new training can often be to point to the historical results from other trainings like it.

Note: Photos are from and 

8 Steps to Better Quarterly Performance Review Meetings

Posted on October 1, 2019 at 3:55 PM

You see the upcoming meeting on your calendar and feel a familiar dread. "Has it already been three months?" Of all your meetings, this is the one that takes (wastes?) the most time. How many people attend these meetings? How many people-hours does it take to put the slides together each time?

When done well, Quarterly Business Reviews (QBRs) or Quarterly Performance Reviews (QPRs) can be an essential way for leaders at different levels of an organization to stay in synch and demonstrate good governance. When done poorly, they can be a soul-sapping waste of time. If you are involved in QBRs, here are 8 steps to make sure your organization's QBR's are effective.

1 - Identify Your Audience's Goals - Who is the main audience for the meeting - e.g., the Chief Executive Officer (CEO)? What do they most need, and want, to learn from this meeting? They probably sit through several of these each quarter and don't want a primer on your business again. They definitely don't need to hear how busy you are. Perhaps they just want to see the results in your area - especially discussing where results are not as expected. Perhaps they want advance warning of risks and bad news so they can try to manage them. Perhaps they want to hear good news so they can share it. Perhaps they want to hear what is top of mind with your customers or employees. Anticipate the handful of things your audience is probably going to focus on and plan your meeting around those. Reviewing notes from previous QBRs can be a good start to identify themes that recur.

2 - Identify Your Goals - As an organizational unit presenting a QBR, it can be one of the few times you get the CEO's attention focused on your team. Make sure you meet their needs listed above, but don't forget to incorporate your goals for the meeting too. Perhaps you need to tee up a decision or a resource request you need from them. Perhaps you want to give your team members exposure and recognition. Maybe you want to plant seeds with the CEO to test the waters for your future plans. Whatever your goals are, plan the meeting so you make sure you get to them. The last slide should be titled "Next Steps" and include those to make sure everyone is talking about the same outcomes from the meeting.


3 - Start with a Summary - Start your meeting with an executive summary that covers the goals you and your audience have. If done well, it may be the only slide that you get to and lead to the outcomes you, and your audience, want. If you worry about your meeting going off on unexpected tangents, having a well crafted executive summary can help you get back to the main points of the presentation. If you are technically savvy, inserting hyperlinks in the on-screen presentation to navigate from and back to your executive summary can be a great way to keep the meeting on point.


4 - Standardize the Slides - If you treat every QBR as a new presentation, that will burn a lot of resources to produce the slides. Create a dashboard for your key metrics that you will show each time and just update the data. Where you don't have numbers, think about creating a stoplight chart of red, yellow, and green circles to show where things are tracking against expectations. Start each new QBR with the last version and just edit it with updates. Not only will that save you time, it will also train your audience on what to expect to see in these meetings. It will also focus your new slide creation to be just on the new goals you have for this meeting.


5 - Confirm the Attendees - One good thing about QBRs is that they can be scheduled far in advance so planned absences can be avoided. As you are scheduling it, ensure that all the right people from your side are committed to be there that day in-person. Principals only - don't let people send their deputies to represent them. If it is important enough for the CEO to be there, it is important enough for the team heads to be there in-person too. This is important to ensure accountability for the information being presented and to be able to commit to the next steps coming out of the meeting.


6 - Anticipate the Questions - You may not want to invest the time to do a trial run of your meeting, but it is worthwhile to anticipate the question that may arise. As you circulate the slides with your team in the preparation stage, encourage people to share the questions that come to their mind from the content. That will identify holes you need to fill and inconsistencies you need to fix. It can also make sure you figure out how to steer the conversation back to the goals that you and your audience have.


7 - Track the Follow-Up - Assign someone in the meeting with the duty of capturing the next steps that come out of the discussion - especially the requests coming from the CEO. Capture those on paper, a word processor, or a flip chart and share those with the group at the end of the meeting. That way everyone can agree on exactly what the next steps are and a deadline and accountable person for each. Once the meeting is over, send out those next steps as an email to all the attendees at the meeting. Assign someone to check in on the status of the next steps. Complete the circle by starting the next QBR with a reminder of the next steps from the last one and the results against each since then.


8 - Share the Story - Make your QBR a platform and reminder to regularly communicate about performance down through the rest of your organization. People want to hear how they are doing and how their work fits into the larger goals of the organization. You have just invested a lot of time to create your QBR, so use it to keep your rank and file connected too. You may want to simplify and edit the content before you share it more broadly. Introduce the content as a letter from the team leader and include appropriate comments from the CEO about the work of the team, especially the kudos.


The next time you are in a QBR, do this math equation in your head: (number of people in the meeting) x (average annual salary / 2,000) = the hourly salary cost of your QBR meeting. Like an iceberg, that will just be the cost you can see above the surface, so multiply that times maybe 5-10 to capture the hours spent preparing for the meeting. You may be surprised at the cost. These meetings are big investments, so taking the time to ensure they are effective can be a great investment too.

Private Equity Demystified - 10 Ways it is Like Investing in a House

Posted on September 1, 2019 at 4:55 PM

Private equity firms seem to have received increased attention over the last several years. Globally, private equity firms made about 3,000 deals worth $582 billion in 2018 ... but are still sitting on a record high of $2 trillion of capital waiting to be invested, according to Bain & Company's Global Private Equity Report 2019. While the names of some of the largest private equity companies are becoming more familiar to the public - e.g., Bain, KKR, Carlyle, Blackstone - an understanding of what these firms actually do can still seem elusive. A helpful analogy comes from the biggest financial purchase that most people make in their lives - their home. Here are ten concepts that you learn as a homebuyer that can help you understand private equity.


1 - A House Sale is kinda/sorta like A Private Equity Deal - Both are big and complex transactions. Selling a home is a major financial and lifestyle decision for most people. The equity in a house is often a family's biggest financial asset. Beyond finances, a homeowner has invested a lot of their life turning a house into a home. They also have to figure out a new place for them, and maybe their family, to live after they sell. Private business owners who are selling their company to a private equity firm can feel the same way too. Their business may be their biggest financial asset. They may have invested a lot of their careers building the business and have an emotional attachment to it. They might also have to figure out what they - and family members in their company - will do for a job after they sell their business.


2 - Real Estate Investors are kinda/sorta like Private Equity Firms - House-buyers tend to target their searches to certain types of homes in certain neighborhoods instead of looking at every house for sale. Savvy house-buyers (or their real estate agents) may even network to get leads on houses ripe for sale that are not yet on the market - e.g., empty nesters looking to downsize. Private equity firms also know what type of companies they want to buy. They may focus on a specific industry or geography where they have expertise. For example, there are twenty private equity firms today that are focusing on buying ophthalmologist (eye doctor) medical practices in the USA, according to Ophthalmology Times. Savvy private equity firms may also use their networks to look for companies ripe for sale that are not yet on the market - e.g., business owners seeking to retire and cash out.


3 - Real Estate Agents are kinda/sorta like Business Brokers and Bankers - Because home sales are such big transactions, many people pay real estate agents to help them sell their house. Private companies looking to sell sometimes use business brokers or their bankers to help them find a buyer and negotiate a deal.


4 - Rent is kinda/sorta like EBITDA - One way to determine the value of your home is to view it not as a home, but as an asset that could generate a stream of income each year in the form of rent you could get if you didn't live there. A private company's value can be assessed by the stream of income it produces each year too. Private equity buyers typically focus on that stream of income and define it as Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). EBITDA measures a company's underlying profitability once you strip out its tax, accounting, and capitalization situation.


5 - Using Price per Square Foot is kinda/sorta like Using EBITDA Multiples - A popular way to estimate the value of your house is to look at the price per square foot (or meter) that comparable houses in your area have recently sold for. Once you find a price per square foot, you can multiply that times your house's square footage to get an estimated value. Private equity firms do a similar assessment to figure out the value of companies. Once they get an estimate of what the EBITDA income stream from a business looks like, they know what a range of multiples of EBITDA buyers often pay for similar (comparable) companies. EBITDA multiples are often in the 2-5x range, depending on many factors. So a company with an annual EBITDA of $10 million could theoretically be valued between between $20-50 million.


6 - Real Estate Appraisers are kinda/sorta like Business Valuation Firms - Before issuing a mortgage, a bank will often require the homebuyer to get an independent assessment of the value of the house being purchased. There are experts called real estate appraisers who specialize in doing these calculations. Private equity firms typically do the valuation estimates themselves. Business owners looking to sell sometimes hire specialists in business valuations to help them get an independent understanding of their company's market value.


7 - House Inspection is kinda/sorta like Due Diligence - After a house sale and price are agreed to, the buyer will often make their offer contingent on a home inspection. The seller will often hire an expert in home inspection to do a thorough search through a house to list all the flaws. Before the sale closes, the house buyer may require the home seller to fix those flaws or lower the price to compensate the buyer for the problems. When private equity firms make an offer to buy a company, they also make their offer contingent on an inspection process they call due diligence. Due diligence can inspect assets, financial records, and all other aspects of a business. Any flaws, holes, or skeletons in the closet that come out can make them lower their offer or back out of the deal altogether.


8 - Mortgages are kinda/sorta like Leverage - When people buy their first house, they may put up 20 percent of their own money as a down-payment and borrow the remaining 80 percent in the form of a mortgage with a bank. They might find debt to be scary, but they borrow because they don't want to wait for years or decades to have the money saved up. They want to live in a house now while they need it and bet they can pay back the debt along the way and/or when they sell. Taking on mortgage debt may also enable them to take advantage of tax breaks that can come with paying interest on a mortgage. A private equity firm often does a similar thing when it buys a company. It may only pay 20 percent of the purchase price from its own funds and then borrow the rest from a bank. They do that so they can buy 5-times (1 / 20%) as many similarly priced companies with the money they have available to invest - i.e., leveraging their money. Borrowing may also allow them to take advantage of a tax break if interest can be deducted as a business expense.


9 - Rehabbers / Flippers are kinda/sorta like Private Equity Buyers - When house rehabbers (or flippers) are looking to buy a house, they are looking for a house they can buy at a low price that has potential to be worth much more - like a house in need of repair in a nice neighborhood, or a small house on a big lot. They take out a mortgage to cover most of the purchase cost. They invest their own time and expertise to quickly improve the things in the house that will generate the most value - e.g., expanding its livable space, updating key areas like bathrooms and kitchens. Then they sell it. If they are good, the resale price gives them a tidy profit after all their costs, including borrowing costs and the costs of their time and effort, are covered. Everyone wins, because a house that was not at its full potential just got improved and made more valuable. Private equity buyers do a similar thing with companies. They look for companies that have potential to generate more profits and that they can get for a good deal. They borrow most of the money from a bank to buy the company because they want to use their own money to buy as many companies as they can. They use their management expertise to improve the financial performance. Sometimes they even combine small companies they have acquired into a bigger one that is worth more than the sum of its parts. Once improved, they put the company back on the market within a few years and hopefully sell it for a profit.


10 - Live-in Rehabbers are kinda/sorta like Management Buy Outs - House rehabbers often do not want to live in the house they are rehabbing. It is messy and noisy and uncomfortable with all the work being done and all the newcomers wandering through the house. Some private equity deals are like being a live-in rehabber. This is when the owner of the acquired company (or maybe their senior leaders) decides to stay and be part of the rehab of their company. They have to manage all the improvement work and take responsibility for it getting done. It can be stressful to rapidly make big changes in the company, but they will have financial incentives to get all the work done in time. But if they do a good job, they will share part of the profits from a sale at a better price in a few years.


Every industry has bad actors. Some house rehabbers probably want to cut holes in the walls, strip out all the copper pipes, wallpaper it over, and put the house back on the market right away at a higher price, while pocketing the money from selling the copper pipes. Maybe they could get away with that for a while but people would probably get wise to them eventually. Banks would stop lending to them and real estate agents would quit bringing prospective home buyers to their properties. The same is true with private equity. There are probably horror stories of bad actor private equity companies that have come in and pillaged assets of a company they acquired. Perhaps they made a mistake, and purchased a company without a future and are salvaging what they can. My guess is people would eventually get wise to them as well and quit selling to them, lending to them, investing in them, or buying from them.


My first home purchase was from a real estate rehabber/flipper. He bought a house that I would not have lived in and fixed it up enough so I wanted to live in it. In other words, he created some new value that I was happy to pay for. I count that as a win-win.


My career as a consultant and coach has also led me to work with and know people on both sides of private equity deals - buyers and sellers. Like any endeavor that seeks to create a lot of financial value, the work can be hard and stressful. But I have found the people in the private equity space to be great to know. I count that as a win-win too.