How to Measure ROI in Coaching Engagements - YouTube

Channel: The Mufasa Coaching Practice [Pty] Ltd

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and we
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are live hello everyone and welcome back
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to another edition
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of the mufasa's daily book reading at
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noon
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i trust that you had an absolutely
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amazing
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weekend and that you've subscribed to
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our youtube channel
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the link to that youtube channel to our
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youtube channel
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is in today's description of today's
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video
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what you'll also find is the link
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to the previous readings that we did of
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the book called
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um energy leadership by bruce d
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schneider
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in the description link as well remember
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to like
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and share our video and remember
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subscribe to our youtube channel
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today we're going to be reading um the
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ninth chapter of
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executive coaching with backbone and
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heart a systems approach to engaging
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leaders with the challenges by mary beth
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o'neill
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and we're going to be reading about the
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return on investment method for
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executive coaching
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my 10 minutes is set let me start
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reading to you
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right okay
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an r an roi method for executive
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coaching
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have the client convince the coach of
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the return
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on investment unless the person who's
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on this live right now i hope you're
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well
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although executive coaching is a well
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established practice
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in the corporate environment its
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benefits are more obvious to clients
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than to the accounting department
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this chapter presents practitioners with
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a method for demonstrating
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a quantifiable return a quantifiable
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return on investment
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for their work and clients and addresses
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the needs of executive coaches
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working in the field rather than those
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of research and academics regarding
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research methodology the main focus of
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this chapter is a
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how-to method for an executive coach or
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consultant
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it's not only it not only addresses the
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issues of roi
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but also directly involves the client in
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evaluating the bottom line
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benefits of coaching an experienced
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practitioner
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who understands how organizations work
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can successfully
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implement this roi strategy
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and you like this greeting by ayanda
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there good to see you
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i use roi here as as it is
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colloquially applied in our culture
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generally to refer to the in
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financial gains that businesses business
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executives
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want to see compared to the cost they
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pay
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there's an ongoing conversation in the
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training
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organizational department organizational
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development
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and executive coaching field
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about the formula is more useful for
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clients
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rri percentages or benefit cost ratios
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each of these terms has a specific
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meaning and formula
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i prefer the benefit cost ratio
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because i think it is more accessible to
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coaches and clients
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particularly those who are just
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beginning to apply
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physical thinking to coaching
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interventions
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however when referring to the general
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discussion of measuring coaches
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effects on bottom line results i use
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the term roi because that is the
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language most frequently used
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in conversations and the media
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most practitioners i talk to are
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stymied by three dilemmas
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in identifying the roi of their work
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the first dilemma goes like this
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i work on the soft side of the business
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the development of people skills in a
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client
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how could i ever define the and measure
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that besides
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i'm completely intimidated by research
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and statistics
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it's not my thing the second dilemma
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for those who have some confidence in
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their quantitative quantitative
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skills is uncertainty about how to link
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a client's development
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to measurable business results
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i can measure the shifts in the leaders
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attitudes
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and the team's perspective on the
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leaders effectiveness
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but how do i link those to the bottom
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line
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some practitioners say i've even been
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able to measure shifts in organizational
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goals
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among those i have coached such as
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retention and promotions
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but i don't know what elements of the
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coaching and consulting efforts
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if any created the change
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the third dilemma comes from a values
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conflict
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best expressed as if i take on the
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responsibility of measurement
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then i'm doing the client's job for them
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i've stepped over the line
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i've become responsible for bottom line
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results rather than for methods
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that lead to executive development
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anything i do that weakens the client's
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sense of responsibility for results
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erodes my effectiveness if you have
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if you have experienced any of those
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dilemmas yourself
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take heart there is a way to determine
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what effect the client's changed
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behavior
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have on bottom line results of the past
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10 years i developed a coaching strategy
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beginning with the contracting phase
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that not only linked
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client development to the bottom line
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div results
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but also allows the clients to retain
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full responsibility
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for her business results linking her
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developmental challenges
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and improvements to those results so you
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will
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find the contracting phase we did read
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that's the first
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the first phase for her methodology
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which we read about
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so you'll definitely find that on our
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youtube channel
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it is in a playlist and i think it's the
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second reading
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which i will also link then to this
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description
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um of this life so you can easily access
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it
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so at the end of the live you'll go on
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to our page and it will be there for you
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to access
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the three key factor methodology
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already familiar with the first step in
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setting up executive coaching
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efforts to calculate roi identifying a
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client's three key
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factors see chapter five which we also
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read
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besides giving the client's targeted
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goal to work towards
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target key target the three
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key factors have two other
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advantages my apologies the three key
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factors have two other advantages
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firstly they identify the bottom line
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results
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and the leader and team variables that
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could most affect those results
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two all three key factors
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lists are measurable the business
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results
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are measured in time money quantity or
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quality matrix
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the leader interpersonal behavior
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and the team interactions are specific
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and observable actions
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that are verifiable in quantity did it
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happen
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how often did it happen and
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quality how well did it happen this is
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very nice
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to what extent did the behavior include
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all the components necessary
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this is another critical reason to drive
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to drive to observable behavior rather
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than using
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global terms when your client first
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creates the list
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for example be more decisive
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will never be measurable with any
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satisfaction but
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identify when the decision is going to
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be made
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declare which decision making style i am
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using
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and summarize at the end of each meeting
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what
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decisions were made give you and your
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client
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measurable sticks for decisiveness that
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can be tracked
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so it's just having clarity being clear
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and what you actually want to measure
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during your early work with your client
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and defining the
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three key factors you can tell her that
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you
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and she will return to those lists at
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the end of the
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contract to calculate your return on
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investment
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it is another reason to be thorough in
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setting up
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the three key factors on the front end
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in addition it gives you and your
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clients a checklist of bio feedback
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mechanism
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to use during your coaching engagement
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to check progress towards
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each of the three key factors
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right assessing other variables
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in order to identify a return on
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investment for the coaching engagement
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of the client
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it is essential to explore with your
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clients the other variables besides
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coaching
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that will affect the likelihood of
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success of all three key factors
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i do it early right after identifying
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the three key factors with the clients
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this will be important when a formula
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that isolates the coaching variable is
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calculated at the end of the contracting
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the coaching contract i have learned to
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ask the client to create a list of four
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kinds of variables and i think this is
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going to be the last thing we need to do
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so these are the four kinds of variables
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variables internal to the organization
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that improve the chance for success
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including the current strength strengths
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and assets of the leadership team
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and the larger organization the second
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one is internal organizational variables
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that detract
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from success the third one is variables
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external to the organization that help
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lead to successful results
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and then the fourth one is external
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variables
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that may jeopardize success
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executives need to be reminded to
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consider positive
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internal variables they are used to
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assess are used to assessing negative
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threats
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they forget that what they they forget
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what they have in their favor so
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remember what you have in your favor may
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the
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whether odds forever be in your favor
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and i think that will um conclude our
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reading for today i hope you enjoyed it
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i really did
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um as well i did i really like these um
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variables the four kinds of variables
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we should create i think we can create
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them for ourselves as well
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um enjoy the rest of your day i will see
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you on wednesday and then the last
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reading for this week will be on friday
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so just
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remember that the readings will be
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monday wednesdays
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and on fridays enjoy the rest of your
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week make sure that you do follow us on
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our
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social media platforms um our youtube
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channel as well
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you know subscribe to our uni youtube
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channel and keep an
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eye out on our facebook page for other
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relevant coaching
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um content and some other stuff that we
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are doing as well
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enjoy the rest of your week i will see
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you on wednesday