Mentors often impact their mentee’s career in a life-changing way. Because of this profound influence, they have a responsibility to embody certain characteristics and behaviors.

How do they excel in mentoring leadership?

And what steps can they follow to ensure a successful relationship?

Nancy Girres, executive coach and peer advisory board facilitator, and Steve Sager, a Vistage Chair, share their insights on the best mentoring practices.

Why mentors matter

Mentors help develop current and future leaders while acting as a trusted resource. A skilled mentor helps others “see something that they didn’t even know was possible inside themselves,” says Girres.

Research confirms that mentors make a difference. According to a 2019 survey by CNBC and SurveyMonkey, 91% of workers who have a mentor reported being satisfied with their jobs. In the August 2020 Vistage CEO Confidence Index survey, 86% of CEOs said that mentors are a critical component of their career accomplishments.

Mentoring and leadership skills

An effective mentor focuses on both professional and personal development. They help mentees build qualities like confidence and competence — vital characteristics of a great leader.

Sager explains that mentors encourage confidence by pointing out successes. They can also help with goal setting and planning.

“We can get great confidence just by going through the thought process of planning,” he says.

A mentor can help identify gaps or missing skills “that would completely open a door that’s not open now,” Girres says. What’s missing could be a lack of confidence, “or something that I see in the way you show up in your body language — little things like eye contact.”

5 things the best mentors do

Mentoring leadership requires intentional action. While each mentor has their own experience and personality to draw from, there are common behaviors that yield effective results. Here are five things great mentors do.

1. Focus on the relationship

For Sager, a strong relationship is the key to a successful mentorship.

“The role that the mentor has to play is that of having a strong relationship, and really understanding what the vision is, and what the goals and challenges are of the individual they’re working with,” he says.

To facilitate a strong relationship, the mentor should foster trust, openness, and a willingness for both parties to be vulnerable.

Mentors must also focus on what Sager calls “empathetic accountability.” He holds his mentees responsible while supporting and understanding their challenges.

Girres says that chemistry is a vital component of this relationship and can be built through shared values.

“We connect easily because we see the world the same way,” she explains. “If the core values aren’t the same and we don’t connect, we can’t build trust.”

2. Challenge mentees

Mentors challenge their mentees to take crucial risks, which Girres compares to learning to ski or snowboard.

“If you didn’t fall down, you probably weren’t pushing enough,” she says. If you play it safe, you won’t advance, whether you’re skiing or leading a company. “To become an expert, you have to push the edges, and you have to fail.”

One thing great mentors don’t do is give their mentees the answers. Girres embodies this quality by asking mentors questions that lead them to their own discoveries.

Sager believes that a good mentor has to be supportive while challenging their client.

“A good mentor has to do both,” he says. They should offer empathy while calling out behaviors or mindsets that prevent them from moving forward.

3. Share their experience

Girres explains that the primary way she builds trust with a mentee is by sharing her own mistakes.

“Probably even more than I share my wins, I’ll talk about the ways that I failed. Like, ‘If I could have a do-over, here’s three mistakes that I made and how I can help you prevent those mistakes,’” she says.

Sager stresses that there’s a balance to sharing your experience without making the conversation about yourself. “I think this is part of the magic and the chemistry [of mentorship], is knowing when to insert those points.” He says to use your own experiences as a tool to help your mentee.

“Rather than saying ‘me too, aren’t we alike,’ you’re saying ‘I hear you.’”

4. Inspire passion and servant leadership

The Robert K. Greenleaf Center for Servant Leadership states that servant leaders “place the primary emphasis on the well-being of those being served.” This style is very different from a leader-first mentality.

Sager says that if a mentor isn’t focused on serving others, their work suffers.

“If we’re in this for some ulterior motive, it reveals itself very quickly,” he says. “Either in the quality of the work or the energy and the heart we bring to it.”

By emphasizing service, mentors can inspire a passion for helping others. Servant leadership can also make the work rewarding for mentors. “I don’t know anything better than doing the work that I do,” says Girres.

5. Possess a growth mindset

The best mentors have a growth mindset and continue to expand their knowledge as they inspire their mentees to do the same.

“I don’t know how you stay relevant if you’re not always learning and growing,” says Girres. She feels that mentors have a responsibility to stay in tune with topics and resources relating to leadership.

Sager agrees. “There’s nothing more inspirational to a person on a team — or a person seeking guidance — than to see the leader invest in themselves.”

Doing these five things is one sign of an effective, inspiring mentor. They’re also things that Vistage Chairs do. “If you do these kinds of things and have this desire and passion for helping others achieve their best version of themselves, that, in a sense, is what Vistage Chairing is all about,” says Girres.

Sager says that when a Vistage Chair takes these actions, “we have an amazing group of individuals who are committed to each other, to work with and for each other, in a way that produces results.”

The post The best mentors do these 5 things first appeared on Vistage.

So you’ve taken a bow and stepped off the stage, gracefully completing your long and successful career. But just like a musician giving a concert, the show’s only over if you want it to be. You can always come back for an encore.

Many executives come out of retirement — or dodge it completely — because they know they’ve got more left to do. Encore careers can take many forms.

For Vistage CEO coaches George Glover and Niels Lameijer, who both had held chief executive roles, the choice was simple: executive coaching.

Here’s what their encore careers mean to them, and a few tips to help decide which kind of second act may be best for you.

What is an encore career?

For most people, an encore career begins after the first has ended, whether that means coming out of retirement or beginning a new path immediately after an exit. It’s for people who feel like they still have more to give — or who aren’t content sitting still.

Glover ran into that feeling during a nine-month sabbatical he took to support his wife’s battle with cancer. In between getting his wife to appointments and bussing his kids to swim meets, he found himself with a lot of free time. “I was missing something,” he says. “I don’t do well if every day is a Saturday.”

When a Vistage recruiter contacted him about getting into executive coaching, Glover knew right away it was the kind of fulfilling work he had been itching for. And so, his encore career began.

Lameijer, on the other hand, never left the figurative stage before returning for his encore. For him, it was just a change in direction that meant getting to use hard-earned wisdom in a new way.

“It’s about being able to give back, to share some of what I’ve learned, and to guide other leaders into great levels of success,” he explains.

So, how do you find an encore career that resonates with you?

1. Know what you want

An encore career can take you in many directions. When deciding which path to follow, both Glover and Lameijer agree that it’s important to consider what you want to get out of your secondary endeavor.

Do you enjoy the free time of retirement, but want to contribute to ventures that inspire you? Consider joining the board of directors of an organization that interests you and that could benefit from your guidance. You’ll still have plenty of time to hit the golf course on a weekday.

Does additional cash flow matter, or are you happy to volunteer? Getting involved in nonprofit work can be emotionally fulfilling if you’re not concerned with finances. Plus, many nonprofits tackle some of the most pressing and community-oriented issues out there — it’s a great way to leave a lasting legacy.

Or maybe you’ve got a business idea that you never got a chance to launch. Now’s the time to do it — it will likely be a far smoother lift-off now that you’ve got decades of experience under your belt. And it’s never too late to join the entrepreneurial race.

Most importantly, “You have to have a purpose that resonates with you and that you firmly believe in,” Glover says. For both him and Lameijer, that purpose is coaching the next generation of business and community leaders.

2. Embrace community

Over the course of your career, you’ve surely built a robust network and found your place in your community — both professional and personal. When it comes to defining your encore career, that preexisting network is valuable. Leveraging it is a great way to find the kinds of opportunities you’re looking for.

For many former execs figuring out their next step, the most appealing opportunities are centered around giving back. For Glover, that was the No. 1 motivation behind his return to the workplace.

Lameijer also sees this advantage in executive coaching. “When you get to work with somebody longer, you really get to make an impact.”

And that impact, he says, reaches not only the CEOs he coaches but also all their employees — and even their families — who benefit from having a growing, confident, and well-balanced leader. “It’s a ripple effect.”

The rewards run in both directions. Glover and Lemeijer both consider it a privilege to work with what Lameijer calls “the top athletes of the business world.” Knowing that their guidance helps shape the next class of executives is gratifying.

“With Vistage, there’s a really high passion for the work and a deep caring for the community,” Lemeijer says. “That’s something that really attracted me.”

3. Be intentional

“The No. 1 thing in terms of preparing for an encore performance is intentionality,” Glover says. An encore career, even if it’s not full-time, should be approached with the same amount of care and dedication as an initial career.

For Glover, that means giving his full attention to his mentees, which sometimes entails turning down other offers and opportunities. “If I say yes to all these other things, that means I’m saying no to spending more time serving my members,” he says.

It’s the same for Lemeijer. He recommends researching whatever possibility most attracts you before going all-in. Talking to people who are already doing the kind of work you’re considering or immersing yourself in the community before sealing the deal are great ways to make sure it’s a good fit and something you can truly commit to.

At a concert, the encore is often the best song of the night. If you go into your encore career knowing your strengths and how best to use them, it just might end up being your greatest hit, too.

The post 3 steps for starting an encore career first appeared on Vistage.

Nacho De Marco was a technical project manager based in Buenos Aires, Argentina, when a chance opportunity changed his life.

It was 2009, and an acquaintance reached out because they needed a team of software engineers for a project. De Marco contacted his friend, Paul Azorin, who previously did similar freelance work, and the two decided to take on the project.

With that decision, BairesDev was born.

“It’s not that we had in mind that we were going to become entrepreneurs,” De Marco said. “It was more of a coincidence than something we knew since we were kids.”

The two co-founded the company and continued taking on side projects through 2010 when they left their full-time roles to devote their attention to BairesDev.

Today, BairesDev is a leading nearshore software development and staff augmentation business. The company employs more than 4,000 professionals throughout 40+ countries — 90% of which are based in Latin America. BairesDev’s annual recurring revenue in 2022 was $338 million, a 71% increase from the previous year.

What makes BairesDev’s ascension more remarkable is the company was fully bootstrapped with no external funding. De Marco, who is CEO, talked about that decision, the pros and cons of bootstrapping, and whether he would make the same decision if he could do it over again.

‘Provide opportunities for talented people’ 

Vistage: In an interview with TechCrunch, you said “We didn’t just want to build a company — we wanted to provide opportunities for talented people, many of whom come from remote areas in Latin America.” Why was that important?

Nacho De Marco: I’m originally from Argentina, and I like my home country for a number of reasons, but not necessarily for having a lot of opportunities. The reality is there are not a lot of quality jobs.

We figured out a way in which we could solve problems for U.S. companies that have more pressure to compete in a global market. We could solve their problems and help them build software faster and better. At the same time, we kind of solved a bit of a problem in Latin America by giving access to quality jobs.

V: Why did you decide that bootstrapping your company was the right decision as opposed to pursuing venture capital or private equity money?

NDM: VCs and private equity firms at the time wouldn’t touch Latin America. There were a few exceptions, but for the most part, it was impossible to get any capital. Raising money at the time was simply not going to happen. We also didn’t have any connections in the U.S., so we used personal funds. We invested about $10,000-$20,000, which was probably about 50% of our overall net worth at the time.

Bootstrapping 101

V: What are some benefits of bootstrapping your company?

NDM: I think the pros have a lot to do with efficiency. The only boss you have are your clients, so you have to serve your clients really well. If you do, good things happen, and there’s no conflict of interest that may arise when you have investors. If you focus on your clients and you get them a good service or a good product, and you focus on what matters the most, you’ll make it out alive.

V: What are some downsides of bootstrapping your company?

NDM: When you have raised capital you can sometimes pivot, and it’s reasonable for that to happen in an early-stage company. You may have 18 months of runway and you can still survive, even if you produce poor results, which is not a luxury bootstrapped companies have when they start.

Another advantage of raising capital is sometimes those companies will have contacts. They’ll get you access to experts or advice that you may not be able to get anywhere else. Finding that help early on in your career as an entrepreneur is not easy.

V: Were there early concerns that the company wouldn’t succeed?

NDM: Absolutely! That was the reason we waited almost two years to quit our full-time jobs. That first year, I think I made about $3,000 in the entire year — definitely not very lucrative.

Any external factor could have destroyed us. We started right after the ‘Great Recession’ of 2008, and there were still companies not doing well. If some of our clients went bankrupt or couldn’t pay our invoices, we would have probably disappeared by now. There was a little bit of luck involved.

Solving problems at home and abroad

V: Looking back at the success of the company, what are you proudest of?

NDM: From a business point of view, BairesDev is a business that actually solves a problem, not just for the Latin American community by giving them quality jobs, but for American companies. On the personal side, me and Paul are still friends. We still love each other, and we’re still having fun.

V: If you could do it all over again, would you bootstrap your company?

NDM: In the situation where I was, I was coming from a middle-class family in Argentina, which was not particularly the safest place. The economy changes all the time, and sometimes companies go bankrupt, even if they did everything right. We got lucky. One of those swings in the economy could happen at any time, and we could have been bankrupt. So from a safety perspective, I would probably not have bootstrapped. I think I would have bootstrapped if I would’ve been in the U.S., where there’s more stability.

Paying it forward

V: You’ve had this incredible bootstrapping success story, so why was it important for you to launch BDev Ventures, a VC investment firm?

NDM: My main problem when I started the company was that I needed to get clients. Imagine a guy in Latin America trying to get clients in the U.S. with absolutely no network. I don’t think many VCs will hand clients to you, but that’s exactly our thesis with BDev Ventures and what we do. Having someone that will give you cash, and on top of that, give you clients and revenue, is something I believe is super valuable. If we had had what BDev Ventures now offers at the time, we would’ve taken it without a doubt.

V: What advice would you give an entrepreneur considering bootstrapping?

NDM: You’ve got to be really focused on making sure there is a market fit. Bootstrapping has a lot to do with having one single boss, which is your client. As long as you keep listening to them and understanding what they like and what they don’t, I think you’re going to do a good job.

The post How bootstrapping your company can lead to big business first appeared on Vistage.

Many companies are implementing DEI — diversity, equity, inclusion — initiatives to live true to their core values. Fostering a culture of belonging from employees to customers, these good intentions also make good business sense.

“Countless studies like the McKinsey reports show that diverse organizations are more innovative and creative, leading to overall improved business performance,” says Andrew Adeniyi, a Vistage speaker and founder of AAA Solutions. “Embracing DEI strategies can boost a firm’s competitive advantage in the marketplace.”
For many organizations, DEI joins D&I (diversity & inclusion), DIB (diversity, inclusion, belonging) and other terms to describe, “It’s the right thing to do.”

DEI has become a useful tool to help businesses fulfill their social corporate responsibility or, some say, moral obligation to society. But what exactly does DEI mean in the workplace?

When everyone ‘attends the party’

Diversity describes having employees who represent the range of human differences and acknowledging and valuing what makes people different, says Adeniyi. “Equity equates to promoting fairness by removing barriers that impact performance and growth,” he continues. “And inclusion occurs when people feel seen, heard, valued, and respected.”

Managing director of Wejungo Susie Japs likes to use a social gathering analogy when describing the DEI mindset to her small to lower-middle-market clients.

“Diversity is when everybody, no matter who they are, attends the party,” says Japs. “Equity is when everyone contributes by bringing food or creating the playlist. Inclusion means all are invited to participate in the fun and no one is left out.”

Quicker problem-solving, innovative thinking, better teamwork, and more effective communications are just some of the benefits businesses can reap from achieving DEI work environments, Japs says.

In a world filled with people of all stripes, companies that don’t consider diversifying their workforce or promoting equitable policies could fall behind the curve.

Because in today’s competitive job market, not only are DEI efforts key to attracting top talent but they are also essential to retaining top performers across all industries, Adeniyi says.

“Today’s younger generations truly care about societal issues like Black Lives Matter,” he says. “Job candidates are asking potential employers about their DEI strategies and what they are doing to uplift people in their community.”

However, successfully cultivating DEI in an organization requires more than lip service from top executives. “Announcing you are going to implement DEI and then not following through with a solid plan may be worse than not doing anything,” says Japs. “Lack of credibility and loss of trust can be the result.”

Additionally, the one-off celebration of holidays or starting a DEI book club is likely not going to result in a sustainable DEI blueprint that makes a tangible difference, according to Adeniyi.

Here are six ways leaders can take more action on doing DEI better from the get-go:

Find your organization’s unique north star

DEI isn’t a one-size-fits-all proposition. Organizations intent on building DEI into their workplace must first define how these concepts relate to their core values and their specific employee base.

“Executives need to ask what DEI means to their company,” Japs says, “DEI looks different for every company and it should. There isn’t one template that everyone follows.”

In fact, the stereotype of what diversity looks like in the workplace may vary widely. For example, Japs says, in a company with an all-Black staff, diversifying might actually mean hiring other people who don’t look like existing employees.

Recruiting more workers who are underrepresented in a company, like military veterans, maybe another way to effectively use DEI strategies, says Adeniyi.

Japs recommends leaders take the time to think through why they need a DEI plan. Is it because of pressure from the board of directors? Is the company having trouble recruiting top talent? Are there problems with employee retention due to a toxic work environment?

“Once they find their DEI North Star, executives can intentionally begin to create a customized roadmap to guide them on their DEI journey,” Japs says.

Gather useful intel early and often

Lack of data is one of the pitfalls many organizations face when designing DEI plans. Says Adeniyi, “Some firms don’t even have an idea of the simple demographics of their workforce.”

Surveying an organization’s workers early on to gauge employee sentiment about diversity and inclusion, says Adeniyi, can provide important insight.

Focus groups and interviews with every department provide opportunities for employees to express their views on what a company is doing right or wrong on the DEI front.

“Taking into account the many voices in an organization leads to the development of smarter goals and more focused DEI action items from the very beginning,” says Adeniyi.

Measuring the climate of a company and evaluating processes also allows for the establishment of metrics to track success and identify bottlenecks once DEI efforts are set into motion, according to Japs.

Create and work toward intentional aims

No matter what DEI action items executive teams set for their organization, each goal needs to have an owner, purpose, and effective plan for achieving it. With this approach, businesses have a better chance of realizing their objectives and sincerely showing their commitment to DEI, says Japs.

If a company intends to hire more women, for example, then doing so requires having enough women in the pool of interviewees to select the most qualified individuals, says Japs. “The point is not to find just any female but the best candidate for the job.”

In this scenario, the owner of this goal would be able to provide solid data on how they are attracting more women to interview, says Japs, and demonstrate increased outreach numbers as evidence.

In terms of DEI deadlines, committing to hitting quarterly goals ensures they will get done, according to Adeniyi.

Japs agrees. “A lot of companies strive for annual DEI goals, but they often get lost forever in the busyness of doing business.”

Executives must take responsibility

Advancing DEI in an organization squarely sits on the shoulders of the leadership team. For DEI efforts to flourish, employees must feel that upper management is all in. If not, losing worker trust in DEI commitments could seriously ding employer brands.

Some 40% of workers said they would consider leaving their company for broken DEI promises, according to a report from Deloitte.

“All successful DEI programs start at the top, with the CEO and/or board of directors,” says Adeniyi.

While many businesses like to hand off the responsibility for implementing DEI to human resources, Japs says that’s not often ideal. “In my experience, HR is usually the least successful in leading DEI efforts because they either don’t have the autonomy or resources to do so effectively,” says Japs.

Assigning a champion who will take ownership of seeing DEI programs through to successful implementation is the best bet, according to Japs. “My suggestion for leadership would be either select an operations leader or form a committee of people from all departments to take charge of the process.”

Training is just the beginning

Organizations often roll out employee training as part of their overall DEI strategy. Learning to speak a common language helps but diversity training by itself is not going to solve problems or shift a culture, Adeniyi says.

“Education alongside human-to-human interaction and someone leading the charge is what moves DEI policies and procedures,” says Adeniyi. “Also the willingness to engage in courageous and sometimes uncomfortable conversation is all part of how growth occurs.”

Adeniyi recalls one consulting client’s employee who thanked him for not making him feel bad for being a white man during a DEI training session. “Shaming people is not the point of DEI.”

Training alone often has workers and management “checking off” the DEI training box and then immediately having fleeting memories of what they learned.

Engaging employees beyond mandatory training takes ongoing effort. Employee feedback surveys and periodic updates can go a long way toward reconnecting employees to the common mission of creating a more diverse and inclusive environment together, says Japs.

“Report back to employees,” she says. “Remind them what DEI means to them and your company.”

Ask employees for suggestions or their participation in enhancing DEI. “For companies looking to hire new graduates to bring new ideas, for example, perhaps start an internship program and have employees step up to be mentors,” suggests Japs.

Never too late to start

While many companies have already embarked on full-fledged DEI efforts, those that have not still have time — but don’t dilly dally, says Adeniyi.

“If you are just starting to think about a DEI strategy, it’s a little like saving for retirement when the best time was 10 years ago,” he says. “But the second best time to start is right now.”

What companies should not do is wait until DEI becomes a non-negotiable in the workplace and all their competitors are way ahead of them.

For newbies to DEI, however, it may take five to 10 years to fully benefit from the value of these efforts and that’s OK. “Just be patient,” says Adeniyi. “It really is never too late to start.”

The post Diversity, Equity & Inclusion: How leaders can take action on DEI first appeared on Vistage.

During the transition from the C-suite to executive coaching, there are a number of common mistakes that can put a new coach’s career on the back foot.

Highly experienced Vistage Chairs Marty Stowe, Steve Johnson and Kurt Graves learned some lessons the hard way. But with perseverance, their peer advisory groups, and one-to-one coaching endeavors, they found success. Now, they’re sharing their insights in the hopes of easing the way for others.

Here are five of the biggest mistakes they say executive coaches can make.

1. Confusing coaching and consulting

First and foremost, anyone trying to break into executive coaching must understand that it is fundamentally different from consulting work.

In a consulting relationship, a client comes in with a problem they are paying to have solved. In a coaching engagement, a mentee comes with a problem they need help figuring out how to solve for themselves.

Or as Stowe puts it, “Consultants answer your questions. Coaches question your answers.”

Moreover, the relationship between a coach and their mentee is far less transactional than a consulting gig. Treating an executive coaching client in the way one would a consulting customer can mar the relationship. That’s because coaching is based on trust, sincerity, and the coach’s desire to help the mentee find their own solutions and become the best leader they can be.

Coaching also requires more of a commitment to a single person. Graves compares how his consulting engagements would end with the completion of a particular job scope, while his coach-mentee relationships are renewed every month and can last for years. “It’s completely different,” he says.

2. Letting ego get in the way

As former CEOs and business leaders, many coaches are used to being in the spotlight. But executive coaching is a form of servant leadership that requires a willingness to cede the stage.

“Executive coaches are great guides, and they never forget that they are not the hero,” Stowe says. “The client is the hero.”

A coach’s job is to prioritize their mentees’ voices and get comfortable with taking a backseat in a discussion.

“It’s not the easiest thing in the world to submerge your ego in the group or submerge your ego in the conversation,” Johnson says.

It’s necessary to be able to admit when you’re wrong and to not take it personally when a potential mentee doesn’t quite click.

“It was very, very difficult for me to adjust to selling my services as an individual coach because there was too much attachment to my ego, and I took ‘no’s’ really hard,” Graves admits. Fortunately, he found that letting go of his ego became easier over time — and his roster flourished.

3. Thinking you know it all

“Coaching is all about not knowing. It’s about curiosity and questions,” Graves says. A good coach should go into every conversation open to the possibility of learning something new.

Listening — carefully and consistently — is essential to good executive coaching. A coach who thinks they already have all the answers is usually not a great listener.

Though it is a mentor’s job to draw on lived experience and offer hard-earned wisdom, a mentee will just as often have a fresh perspective to share.

“To me, coaching and mentoring is a continuum that has no beginning and no end,” Stowe says. “It’s just a constant relationship.” One that requires humility, openness, and no small amount of mutualism to thrive.

4. Failing to be flexible

When juggling numerous mentees, it can be tempting for an overwhelmed coach to approach each meeting with a formulaic structure. Too much structure, however, can bar coaches from getting to the heart of the matter. Instead, coaches must go with the flow of the conversation and tailor their approach from person to person.

The individualized nature of executive coaching discussions means that one size does not fit all. “Ultimately, you want them to grow and do the work and figure it out for themselves,” Johnson says.

Sometimes, Stowe explains, flexibility means being willing to go the extra mile. Offer comfort during personal hardships; cancel another meeting and stay on the call a little while longer; don’t cut a productive conversation short.

In a career centered around relationships, executive coaches who cannot adapt to the unique needs of each mentee will often find themselves struggling to keep their clients.

5. Holding back

At the heart of the coach-client relationship is honesty. It’s important to never compromise that. For some coaches, the urge to be the nice guy can cause them to avoid raising tough truths that need to be discussed. That’s a mistake.

“You can’t sugarcoat anything,” Johnson says. “If it’s going to be a difficult conversation, it’s always good to start with, ‘I think both of us is going to find this a bit difficult.’”

Sometimes a coach must sit with an uncomfortable silence or ask the same question twice. Effective coaching involves holding clients accountable. Both sides, therefore, must speak frankly without ulterior motives. For most executives, getting the unvarnished picture is a rarity — and not something a quality coach shies away from.

“That’s what they’re paying for,” Stowe says. “They’re paying me to tell them what they need to hear — not what they want to hear.”

By avoiding these mistakes, executive coaches can make a smoother transition from the C-suite to their new careers.

The post The 5 biggest executive coaching mistakes to avoid first appeared on Vistage.

In a competitive job market, first impressions are crucial — whether it’s the impression you get from a job candidate or the impression a candidate gets of your company. And that first impression begins at the job interview.

Selling your company to candidates

During an interview, remember you’re not only interviewing an applicant, but that applicant is also interviewing you. Candidates want to know if your company is the right fit for them. So, they are just as invested in the process as you are.

What you absolutely don’t want is for an interview to go so badly that a prospect tells others about their terrible experience.

Spreading their unhappiness about your company via word of mouth would be tough, but a candidate could also post a negative review online. This can hurt your employer’s brand.

Let’s go through some tips on what an optimal interview process should involve and the steps that should be taken to ensure success for everyone.

1. Know your company inside out

While this may seem like an obvious tip, it’s important to understand and be able to share why you know the company is amazing. Be able to discuss:

• Company culture, mission, vision and values. Candidates want to be sure their potential employer’s values align with theirs. So, when diving into this topic, share examples of how leadership is currently implementing those values.
• Benefits package. This is where an applicant may really perk up their attention, so be very detailed about the benefits your company offers. This could include health and dental insurance, paid time off and retirement options, to name a few.
• Extras. In addition to standard benefits, don’t forget to highlight other perks. Is there on-site daycare? Wellness programs? Bonuses? Whatever the case, make sure you speak up on things that can help your company stand out.

While these are only a few examples, at the end of the day, candidates simply want to know, “What’s in it for me?” So, avoid a high-level overview and provide full details instead.

2. Be ready for questions

Your interviewee may be highly sought after and therefore could have many offers. Spend time thinking through questions candidates may have. Your answers to their questions could be the deciding factor in whether they choose your company over another.

Here are a few to consider:

What’s your favorite aspect of working for the company?

Show your enthusiasm and excitement from the start when answering this question. If you stumble or stall when trying to answer, it could come off negatively to the prospect. Don’t give them a reason to form a less-than-stellar opinion of your company.

Why do you come to work each day?

If you receive this question after having explained your favorite thing about working at the company, then the candidate wants more information. Some responses could include:

• Work-life balance
• Opportunity for growth
• Wonderful co-workers

3. Compile all information about the role

Oftentimes, the person handling the interview process may not be the same person who manages the new employee. If this is the case, you want to have a detailed conversation with the hiring manager and team members so you know all the requirements for the position. Be sure to ask:

• Who’s on the team?
• What are the daily tasks?
• Is there specific technology?
• What are the types of projects?
• Is travel involved?

It’s almost definite that the interviewee will ask some or all of these questions. Knowing the answers will help ensure you can provide clear answers.

4. Know who you want to hire

From the very beginning, define the type of job candidate you’re looking for. This way, you have some objective, consistent standards by which to measure all applicants.

• Also, while you’re focusing on asking questions, just know the applicant is also focusing on you. If you show signs of ambiguity about what you want, this could cause the interviewee to hesitate. So, understand these important points about the position ahead of time:
• Required key factors for the role
• Additional qualities that would add value to the role
• Skills and qualifications that would make someone the right fit
• Factors that determine if someone would align with company culture and values

Want to learn more about how to hire the right people and win top talent? Join Sheryl LaPlace, human resource consultant for Insperity, for our Jan. 20 webinar on attracting and retaining talent. You can also visit insperity.com/vistage or email alliance@insperity.com to learn more.

This story was first published on the Insperity blog.

The post 4 interviewing tips to make your company shine first appeared on Vistage.

We have an appetite for simplicity. We tend to gravitate toward things that are easy to understand and implement. Cognitively, we are wired to seek out patterns. For this reason, there is also a proclivity for one-size-fits-all solutions. Apply the formula from “Good to Great” or “The Great Game of Business.” It worked for other companies, and it will for us.

But let’s face it, the underlying needs of a business change as it evolves. In no discipline is this truer than strategy and strategic planning. When calculating how to formulate a strategy, it is critical to consider a company’s life stage (please forgive the generalizations):

Startup Phase

When a company first launches, there is almost a singular focus on product. The offering is limited.

Every manager is a generalist, managing multiple functions and initiatives. There is an agile approach to doing things, where the company tests its thesis and has a collision with reality. The entire company functions like an A/B market test, just trying to figure out what works.

At best, startups operate quarter to quarter, just trying to generate enough cash to survive or make it to the next round of financing.

Because managers of startup companies don’t have much time for planning, they gravitate toward easy-to-use templates and downloadable forms for strategy.

Maturity Phase

Once a company becomes established ($5-$10 million in revenue), its systems start to mature. As its initial product achieves market adoption, the focus shifts to distribution.

There are limited expansions into product extensions. As these companies tend to be resource-constrained, they cannot support a C-suite or VP-level department head for human resources, information technology and operations. Instead of having a Chief Financial Officer, the company is more likely to have a controller or bookkeeper.

Such companies are still likely to use templates for strategy. They may use a facilitator, but their version of strategy is often limited to a set of goals and objectives for the following year.

Their attempt at a growth plan is aspirational but void of analysis that proves or disproves the company’s ability to sustain growth. Many of these companies have a strategic plan but no strategy, or a strategy and no strategic plan.

Mid-Market Phase

When companies become more sizable (more than $25 million) they gain the wherewithal to hire professional management. Often, these managers come from larger companies with more sophisticated systems. Such managers demand a strategy.

They expect their strategic plan to include four critical components — where you will win, how you will win, capabilities to win, and system to win. Let’s consider where you will win as an example.

To properly articulate a target market requires a study of addressable market and its subsets of serviceable market and obtainable market.

If you cannot quantify the size of the market you are addressing, the strategist cannot make data-driven decisions on where and how to grow. This is the level of analysis required, and it is not easily provided by templated “operating systems.”

But perhaps more important than the level of analysis is that professional managers are not operators. VP-level executives don’t run the day-to-day of a business; they oversee a function and have the bandwidth for planning. That is, not only do they have a greater aptitude for it, but they also have time for it. Professional managers feel less threatened by strategic consulting firms and are more likely to bring them in for help.

Such companies spend months collecting inputs such as employee engagement studies, net promoter scores, market analysis and competitor analysis. It is at this time in a company’s life cycle when strategic planning can be the most impactful.

Enterprise Phase

Once a company grows larger, it tends to go public to secure cheaper capital (and often to provide a payday to its founders). Public companies have dedicated strategic planning teams that can create analyses, plan business and budgets, and execute acquisitions.

Yet strategic planning within public companies is also difficult because of the shuffling of executives and the pressure created by reporting. Ironically, these companies go full circle and revert to managing things quarter-to-quarter. It’s the companies that fight through this tendency that sustain growth.

So, where do you want your planning to be?

Make data-informed decisions

As described, mid-market companies invest in a more robust level of analysis. While more junior managers will dismiss analysis as too time-consuming, it’s a trap to execute well with the wrong strategy. Require that your team zero in on target customers, value proposition and building out capabilities.

Remain agile

Larger companies can also take a page from startups. While such companies may not be managing for survival, they remain nimble and iterate based on their collision with reality.

Create a cycle

While larger companies may need more rigor around budgeting and the like, companies of all sizes should find a system, cadence, and repeatable cycle. While the level of time and investment may change, having a repeatable system is critical to a company’s success.

The post Why the strategy that got you here won’t get you there first appeared on Vistage.

Change is rarely met with enthusiasm. Usually, the first response is lackluster; it takes effort to unlearn what is comfortable.

However, using a change management framework encourages the people impacted to adapt to a new process and increases the success of implementation.

For example, switching expense reporting platforms may seem like a simple change. But think back to the last time you traded in one process for another.

There are likely to be a few frustrating moments while learning where functions exist in a new dashboard. It takes time to rewire the brain. And if the new process is not intuitive, there is a greater chance that employees may not like the change.

When you use a change management model, it helps you anticipate resistance and establish a plan for guiding your organization to successful implementation.

What is Change Management?

Change management is a framework to execute a significant internal or external shift in its processes, culture, technologies or other critical operational aspects.

“It is staying ahead of change so that your entire team can deal with change effectively rather than just leading from the top,” says André van Hall, speaker and author of “The Curiosity of Change.” “It takes initiative and challenges the status quo before you are the victim of it.”

More specifically, change management focuses on the people side of change, says Dave Collins, founder and CEO of Oak and Reeds. He divides change management into two categories:

• The leadership competencies it takes to lead individuals through change.
• The leadership skills needed to lead teams or organizations through a transformation.

“Leading people requires emotional intelligence and understanding how change disrupts people’s patterns differently,” Collins says. “At the organizational level, it is about understanding how to be strategic and come up with an execution and communication plan.”

Types of Change Management

Many theories and methodologies exist for approaching organizational change. Collins relies on two to help leaders with change management — The Kübler-Ross Change Curve and the Beckhard-Harris Change Equation.

The Kübler-Ross Change Curve is based on the six stages of grief and acknowledges that change can trigger emotional reactions.

• Shock and denial
• Anger and frustration
• Confusion and depression
• Acceptance
• Problem-solving
• The new normal

“People must do two things, whether it’s a personal or work change; they have to let go of the old way before they can embrace and learn the new way,” Collins says. “If you short circuit the ‘letting-go’ process, you get a lot of frustrated people maybe secretly hoping they can throw enough sand in the gears that change doesn’t work and they can go back to the old way, the way they are comfortable with.”

Leaders can get frustrated because they are usually further along the curve than the rest of the team. So, while leaders may already be at stages 4-6, their teams may only be in stages 1-3.

“That disconnect can cause a lot of anxiety and hurt feelings. Be patient and allow people the processing time and trust that they’ll get through it,” Collins says. “Most people will, but some folks never get through it.”

Then you need to have hard conversations about individuals who are unable to change and operate in the new environment. It’s important to ask, “Are we okay with a lower level of performance or that they never really got excited about it?”

Why is Change Management Important?

Change is unavoidable. The world is continually changing, and businesses must evolve for sustainability and growth. By managing change, you can stay on top of internal or external shifts rather than being surprised by them.

While change can be painful, the results can improve workflows to enhance employee experiences, lower project expenses, improve company culture, mitigate risk and increase the organization’s ability to overcome obstacles.

How to Deal with Resistance to Change in an Organization

Collins uses the Beckhard-Harris Change Equation to help leaders overcome resistance to change. In the 1970s, researchers Richard Beckhard and Reuben T. Harris found that large, complex organizations aren’t good at changing, and perhaps more importantly, they are not good at predicting the likelihood that a change will be successful.

“Very often, leaders think, ‘Oh, this is going to be easy. We’ll get through this in three months,’” Collins says. “Their predictive power was almost worse than their ability to change.”

The Beckhard-Harris Change equation emerged from the researchers and Collins encourages leaders to use this to overcome resistance to change.

Dissatisfaction x Vision x First Steps > Resistance

Dissatisfaction starts by pointing out the things that are broken, annoying or not operating well. This boils down to clearly identifying the why behind a change. When this goes unsaid, people can get frustrated that it is simply changing for the sake of change.

Vision highlights how things will be better or more efficient if the change is implemented correctly. Explain what is getting better and how the company is going to be more profitable.

“It’s not just talking about the bottom line, like how will this affect our numbers, but how will people feel better,” Collins says. “How will they be less stressed? How will they be more engaged? I teach the Change Curve first, so people understand much of change is emotional processing. If you can speak in that language well, you’re going to help people through those emotions and get to acceptance.”

The last variable is First Steps. The more difficult you make the first thing people have to do, the harder it is for them to execute.

“Change is not a ‘rip the band-aid off.’ You need to get people going little by little,” Collins says.

For example, if you’re implanting a significant IT change, the first step should be to log in and upload a profile picture rather than re-uploading all the data into a new platform.

“When the variables on the left (dissatisfaction, vision and first steps) are greater than the power of your resistance, your change will probably work,” Collins says. “The idea is to increase the power of these three variables working in your favor.”

Communication plays a critical role when executing any type of change management, especially when facing resistance.

“Share information and expect your team (everybody) to take initiative so you can push decision-making as far down the organization chart as possible,” van Hall says. “The benefit is that when ten members accept the responsibility of ensuring their area is not only operating at peak efficiency, but also staying ahead of changes.”

3 Steps in the Change Management Process

A robust communication plan is central to implementing change. Three steps guide the details contained within that plan.

1. Make a list of all stakeholders.

“Very often leaders leave out a good chunk of stakeholders that aren’t immediately obvious,” Collins says. “Remote work, hybrid work, bringing people back into the office, or not, is an example that has come up a lot. There are a lot of stakeholder audiences that need to be involved.”

Using the example of a mid-level manager returning to the office, those stakeholders include direct reports, IT staff, clients, cross-functional partners, vendors, the individual’s family, kids, and friends.

“You don’t have to spend all day thinking about people’s family, but for some of these changes, it’s a huge effect and may be harder to manage that side of things than necessarily your teammates, who you’ll just be talking to slightly differently,” he added.

2. Answer two key stakeholder questions.

• What do they have to do as part of this change?
• What’s in it for them if the change is successful?

“It becomes so much easier to create a coordinated communication campaign when you answer those questions, and the logistics become very clear,” Collins says.

3. Acknowledge change is occurring rather than pretending its business as usual.

“Don’t put your head in the sand and pretend nothing is changing; recognize that these changes are happening,” Collins says.

Change Management Best Practices

Change, even with good management, is hard. But when you use these best practices you can help limit resistance and build momentum to increase the chances of a successful implementation.

1. Create a culture of safe collaboration and free thinking.

“Realize that in most industries, it is our least paid employee, so that is delivering the product or service,” van Hall says. “Train them, coddle them, develop them, and have high expectations in return.”

2. Share information early and often, don’t hoard information as a leader.

“You’re better off treating people like adults, telling them hard news early to give them more time to process,” Collins says. “Share news, share clear information early and often. Be patient with yourself and with your people.

3. Stop taking yourself so seriously!

van Hall encourages leaders to accept failure as teachable, rather than punishable moments.

4. Step back and let creativity kick in.

“Once people accept the change, step back and let their creative brains run. Allowing people to implement and personalize the change can happen in ways you didn’t expect,” Collins says. “That’s people taking ownership and that is what those emotions look like when people are engaged and feel bought in.”

The post What leaders need to know about change management in 2023 first appeared on Vistage.

According to the Q4 2022 Vistage CEO Confidence Index survey, 61% of CEOs report that hiring challenges impact their ability to operate at full capacity. While hiring and retention continue to remain top of mind for CEOs, budget planning for the new year has brought new pressures with wages and compensation.

In fact, the November 2022 WSJ/Vistage Small Business CEO Survey revealed that 54% of small business leaders plan to adjust compensation through merit increases, and the same proportion plan cost of living adjustments. One-third (33%) of CEOs plan to award bonuses, while 10% plan to increase benefits.

To help CEOs tackle the challenge of how to keep their employees satisfied and retain top talent, we invited 3 Vistage members, A.J. van de Ven, Sara Patrick and Nate Ankrom, to share their unique strategies on how they plan to adjust wages and compensation in the coming year.

Highlights of their recommendations from this webinar include (password required):

• Create a comfortable work environment: Staying competitive is not done solely through having the highest pay offerings. Additional benefits such as extra PTO, monthly staff lunches or offering a 4-day workweek can boost employee satisfaction and incentivize them to stay for the company culture more so than their pay rate.
• Be transparent with company pay rates: Although it can be a tough conversation to have, being honest and clear with your employees about why their pay is what it is as well as guiding them through what steps they could take for a higher pay grade will motivate them and allow them to trust you as an employer. Conducting a comp study with a third party will provide reliable data you can benchmark against.
• Support employee development: Take the time to invest in your employee’s career development through career pathing. Have their managers discuss their short and long-term goals as well as develop a plan for how they can progress to a higher role within the company.

Our panelists took some time to answer the following questions that came from the audience during this webinar:

1. How have you handled situations where loyal, longtime employees are underpaid compared to hiring a new employee for the same role?

SARA: MRO conducted a comprehensive compensation study in 2019 and established a pay philosophy that incorporates pay bands for each role/position. This resulted in some long-time employees getting fairly significant increases. We committed to conducting these comprehensive studies regularly and are doing so again in 2023. This also means that we are pay practices are equitable across the organization, regardless of the hire date.

NATE: On a case-by-case basis. Only a couple of instances. Ironically, they are also not enjoying the values and culture shifts being made. Moreover, both the staffers who have lamented their frustrations have remained.

A.J.: As with MRO, Calsense’s new benchmark resolves those issues long-term. However, in the past, this was certainly an issue. In fact, as recently as last year, we hired two new staff members, with the same title as a tenured team member, at a higher rate than the existing one was paid. The reason for the discrepancy was less driven by market prices and more by the quality of that team member. He was an important asset, but the new team members brought more experience than he had, despite his tenure. It was a difficult discussion when he called us out on it, but we had a good conversation and explained what he could do to move up in his pay. He’s since committed to doing so and remains with the company.

2. How is your bonus system structured?

NATE: We do not have a formal bonus system. We do have a 3% maximum and anything above that requires examples of the goals in performance. It also requires three more signatures to go above 3% from HR, CFO and myself. Those who do not wish to grow understand that we will not provide additional funds unless we are performing a COLA companywide.

A.J.: At Calsense, we use our incentive structure to increase total earnings based on both individual and company performance. The company aspect is both to reward all employees as the company grows as well as protect the company in the event sales slump. Each role has three bands of incentive comp, based on where the individual is on the pay scale. For example, it may be 5% of the total base, 10% and 15%. Half of the incentive comp is based on company growth and the other half is based on their performance using quantitative metrics.

3. How do you balance the different aspects of compensation across employees who may value them differently?

SARA: In addition to salary and incentive pay, MRO offers both a conventional health insurance plan and a high deductible health insurance plan. We offer 401K matching at 50% up to the IRS limit, which allows for those early in their careers to contribute as much or as little as they can, while those further along in their careers tend to maximize the contribution. Over 90% of staff contribute to the 401k plan. Additionally, MRO offers 4 hours of paid volunteer time and has a staff committee that identifies and sponsors group volunteer opportunities throughout the year.

NATE: We have the conversation. Some come out and tell you that time off is more important than income. So we provide more days off or balance of days/pay or pay.

A.J.: Similar to MRO, Calsense works to offer comprehensive benefits beyond pay. We’ve found it’s easier to both hire and retain top talent by offering benefits typically only found in larger organizations, such as 401(k). Some unique benefits include:

• 4-days of volunteer time off per year
• 12 holidays plus the week between Christmas and New Year off, with pay
• Tuition and student loan reimbursement of up to $5,000 each, stretched out over several years to ensure retention

Beyond those, there are some employees who have indicated they prefer either a higher base and smaller incentive or vice versa. In these cases, we work to show them the value of what we’re offering and have gotten no pushback afterward.

4. What are some ways to reduce compensation for overpaid employees?

SARA: When we conducted our comprehensive compensation study reviewing all of the roles in the organization, we committed to staff that no one would have their compensation reduced. We had 5 instances where long-time staff members exceeded or nearly exceeded the established pay band for their roles. As part of our pay philosophy we adopted the ability for managers at their discretion to provide year-end spot bonuses to individuals who met/exceeded their established pay band. Ultimately, 2 of the 5 individuals pursued different roles within the organization which allowed them the opportunity for increased pay.

NATE: This is dependent on the situation. We have three employees who are well over. They understand that they cannot make any more based on benchmarking data for our region/nation/sector and the performance output. These are difficult conversations that we must have. So far, they have remained. Yes, we run the risk of losing them but at a lower cost to fill the gap of their exit.

A.J.: We have not reduced compensation for overpaid employees after conducting our benchmark study. We’ve explained to them what the pay scale is, where they are in relation to it, and what they need to do in order to grow if they want to make more money. We’ve also allowed them to remain eligible for their incentive pay.

5. How do I know if wages and salaries are at their optimum valuation, and how do I develop a bonus structure that works for us?

SARA: MRO contracted with Willis Towers Watson to conduct a comprehensive compensation study, which included salary and incentive pay. We chose WTW based on their knowledge of our industry and ability to translate specific roles and responsibilities to analyze compensation competitively. As part of this study, we also adopted a documented Compensation Philosophy that was shared with all staff. The Compensation Philosophy discusses pay bands and time to reach the mid-point.

NATE: Start with benchmarking your organization to the industry you serve regionally and nationally. Determine where you need to come up or where you have an issue to discuss with your team member on their pay hitting the ceiling. The bonus structure that I’ve seen before always tied it to annual performance goals and meeting the objectives of the company’s strategies. I’ve also seen it as a percentage of their salary typically — floor personnel is weekly, supervisors are monthly, managers are quarterly, and the ELT is either half-year or annually.

A.J.: Calsense partnered with Human Capital Resource Partners after interviewing three different comparable firms. Although there’s no guarantee that the pay scales are accurate, some basic benchmarking against Glassdoor and Salary.com showed alignment, at least at the national average level. As for the bonus structure itself, the study didn’t provide a structure, but it did give enough insights for the leadership team and me to model different approaches. Our Director of Finance & Accounting was critical in that process, working up different approaches based on various past scenarios that we felt could occur in the future.

6. Curious if any of the panelists are using some form of open-book management or employee financial education of the business.

A.J.: Calsense is doing so. We have several financial acumen exercises we run with all of our team members. In fact, just last week during our annual conference, we did one where teams were given a series of transactions for a fake business and they had to build a P&L based on the information. Other exercises included giving everyone a hundred pennies, telling them they just made a dollar in revenue and walking them through the process of getting to a profit number. During all-hands in-person meetings, our Director of Finance & Accounting also has a binder with last year’s financials in it. Anyone interested in reviewing them with her can do so, but they’re not allowed to take photos and they’re reminded that the information is to be kept confidential. We’ve found that this level of financial transparency has resulted in more ownership thinking within the staff.

7. For those experimenting with traditional schedules, was your recently implemented work week (4-day or otherwise) a success? Have you heard from the employees if they enjoy it, more than just helping with gas prices, do you think they have a better work-life balance?

SARA: MRO has a hybrid environment where 95% of staff are expected in the office 2 days per week. We have discouraged Friday afternoon meetings and established Flexible Fridays where most people have worked 40 hours prior to noon on Friday and take the afternoon off. We piloted this Flexible Friday approach between Memorial Day and Labor Day in 2022. The boost in morale was huge and there was no lost productivity.

A.J.: Calsense’s 4-day work week has been a smashing success. As you mentioned, they certainly like the reduction in fuel expenses. More importantly, though, they love that they have a three-day weekend every week (and four-day weekends when there’s a holiday on a Monday). They’ve spoken about the additional time they get to spend with family and friends, get errands done, and so on.

8. For those who have incentive plans based on company and individual growth, what types of goals or measurables do you offer employees whose jobs are more administrative in nature?

SARA: MRO’s incentive pay is based 50% on corporate goals, 25% on department goals, and 25% on individual goals. All staff members have individual development plans which establish short-term and long-term professional goals. For administrative staff, individual goals may be based on skills-based training and education, improving accuracy in documentation (minutes, external communications), or expanding knowledge of corporate functions.

AJ: Non-revenue generating roles are always the most challenging to build metrics around. Everyone, from our shipping/receiving coordinator to our CEO, is on the same incentive program, which is a combination of company and individual performance. Some of the more administrative metrics include days sales outstanding, aged receivables, aged payables, number of inbound calls that go unanswered during business hours, budget to actual expenditures for their department, new social media followers, and so on. We generally focus on ratios and/or trailing twelve months for the measurements, both to handle correlated changes and to remove seasonality and unexpected spikes such as a successful marketing campaign or a large order in one month.

About the panelists:

A.J. van de Ven, President and CEO of California Sensor Corporation dba CALSENSE

A.J. van de Ven is the president and CEO of smart irrigation technology pioneer Calsense which designs products and technologies to enhance water management efficiency and contribute to a sustainable future by saving the world’s most precious resource: water. A.J. has over fifteen years of experience in the landscape irrigation industry with extensive involvement in all aspects of the business. In this webinar, A.J. will be sharing how Calsense has conducted an in-depth salary study for all roles across the organization to ensure they remain competitive in the marketplace while also helping their employees to see their value add to the company’s growth.

Sara Patrick, President and CEO of Midwest Reliability Organization

Sara Patrick is the president and CEO of the Midwest Reliability Organization (MRO), a regulatory agency that operates as a cross-border Regional Entity under the delegated authority of the North American Electric Reliability Corporation (NERC). Sara joined MRO in 2008 and has served as President and CEO since 2018. In this webinar, Sara will share MRO’s unique strategy of paying out 100% of their annual bonus incentive for all as well as an additional year-end bonus and a parking stipend for all.

Nate Ankrom, President of Genuine Machine Products Inc

Nate Ankrom is the president of Genuine Machine Products Inc, a build-to-print precision component and assembly contract manufacturer serving the Aerospace and Defense Industry Base. As a third generation in Manufacturing with a demonstrated history of working in the aviation and aerospace industry, Nate will share how Genuine Machine Products is providing additional holiday time off and absorbing insurance increases.

The post How 3 CEOs use wages and compensation to drive retention first appeared on Vistage.

Imagine hiking a mountain from base to summit. During steep ascents, you may have moments of doubt. During long, flat stretches, you can catch your breath … but loneliness can set in. And what if there’s a dramatic change in weather, or danger presents itself?

Every expert mountaineer knows you should never go it alone. You’ll climb higher and go further with an experienced team. Plus, it’s a whole lot more rewarding to share the journey with peers you trust and respect.

The same is true in business.

Throughout my career, I’ve had the pleasure of working with peak performers — leaders of small and midsize businesses who want to take their companies to the next level. In fact, it’s how I first discovered CEO peer advisory two decades ago.

Peer advisory groups are like sounding boards. Business leaders from a range of industries and backgrounds come together to troubleshoot issues, share best practices and receive and offer unbiased feedback with an experienced mentor leading the charge. It’s like having your own personal climb team on your leadership journey.

If you’re looking to scale to a higher elevation in business and life, here are the top 6 time-honored benefits I’ve seen great leaders gain from CEO peers:

1. Gain perspective

World-class leaders seek diverse perspectives on important decisions from trusted peers. They find other CEOs and business leaders who’ve tackled similar issues in different industries. These peers understand the nuances and challenges of the C-suite and bring fresh perspectives unhampered by institutional knowledge. Hearing from CEOs outside their company and industry allows leaders to honestly share any challenges and receive genuine, objective and unbiased feedback.

2. Combat insular thinking and confirmation bias

Great leaders are high on curiosity and low on ego. These leaders are the first to admit they don’t have all the answers and also the ones who believe most that a breakthrough is on the horizon. They are inquisitive, welcome new ideas from trusted sources that challenge their thinking, and are eager to explore.

Confirmation bias can occur when leaders have already made up their minds about a situation and then seek out answers that validate their point of view. Peer advisory groups help leaders to actively work to prevent that from happening, as CEOs come together with those who they know will challenge their position.

3. Think bigger

Leading people and teams can too often be focused on the most pressing issue of the moment, instead of the big picture. Maybe it’s replacing a key hire, launching a new product, reducing costs, or chasing incremental growth. Taking time away from day-to-day operations allows leaders to step back and focus on key strategic decisions with peers.

4. Learn more, faster

One of the most powerful tools in peer advisory groups is an exponentially expanded knowledge base. Listening to different approaches, perspectives and experts can encourage leaders to think outside the box. When CEOs make a deliberate effort to learn from those with diverse backgrounds and experiences, they can tap into new ways of thinking — fresh perspectives that challenge the status quo.

5. Get under the issue

Some leaders may discover that they are thinking about a challenge in a way that doesn’t get to the true underlying issue. If you tell a friend you have an issue with delegating assignments, they might give you a new technique to try. However, a well-trained coach will listen closely and ask great questions that get to the root of what’s holding you back.

6. Give and take

As a Vistage member, I’ve learned as much from listening to others process their issues, as I have from seeking input. When you’re listening closely to others, it often unlocks a solution for your business that you might not have considered.

While you can certainly attempt to hike a formidable mountain on your own, it’s good to know you have options. If your goal was to climb Mt. Everest, you’d hire a guide and climb with a team who knows the mountain and supports your journey. World-class leaders understand the same is true in business.

Peer advisory groups equip CEOs and business owners with the tools, resources and guidance so they can make great decisions. Leaders who surround themselves with executive peers who offer differing points of view — and push them to achieve their next peak of success — create a fundamental condition for leadership growth.

This story first appeared in ACBJ.

The post 6 reasons why CEOs should join a peer advisory group first appeared on Vistage.