Stop Managing, Start Coaching: 5 Transformational Shifts To Boost Employee Effectiveness

employee effectiveness


Stop Managing, Start Coaching- 5 Transformational Shifts To Improve Employee Effectiveness-04

In recent years companies have learned that coaching their employees instead of managing them is a powerful tool to boost team performance and employee effectiveness.

However, some business owners hear they should be coaching and instantly raise an eyebrow.  That, my friends, is a big mistake.

Employee effectiveness and coaching for improvement should echo in your company's hallways!

Many companies, in the quest for higher profits, disregard that achieving their goals depends on their employee effectiveness and team performance.

The truth is nobody likes to be managed like they are a child. As Verne Harnish explains in his book "Scaling Up: How a Few Companies Make It... and why the Rest Don't"; [page 69].  "People join companies. They leave managers. Therefore, to keep your team happy and engaged, you need one thing above all else: GREAT MANAGERS => COACHES.".

Verne Harnish quote

When employees are coached in a way that proves you have their best interest, that's a different story. For one, coaching your employees cultivates an environment of collaboration and mutual respect rather than control and criticism. Unfortunately, many employees feel the latter from their managers.

By acknowledging this and incorporating coaching and training into management strategies, businesses can harness their employees' inherent talents and foster their well-being, increasing productivity.

In this blog post, we will explore deeper the benefits of coaching/training your employees instead of managing them.  By the end of this article, the power of providing training to your employees will be clear as day.

Without further ado, let's dive into the advantages:

1- Creates a learning culture within your company

Employees appreciate being coached more than being managed because it shows their managers trust them and believe in their potential.

When their company invests in them like this, the organization values their growth and development. Verne Harnish stresses the vital importance of learning and development as an analogy to describe how not training and developing employees is like not having or upgrading software in your hardware.

When you build a learning culture within your teams with opportunities for training, professional development, coaching, mentoring, and access to resources and tools that can help them improve their skills and advance in their careers, it sends a message that they are essential to the company and that their contributions are valued.

During the webinar about "The #1 Performance Driver for a Thriving Business", Verne Harnish explains the importance of having a "learn it all" instead of a "know it all" team culture as Microsoft did with Satya Nadella.

Watch webinar "The #1 performance driver for a thriving business"

 Next up…

2- Builds trust and a growth mindset that attracts A-players

Higher job satisfaction, motivation, and engagement are a direct result of a company that coaches their employees. This leads to better performance and retention of talented employees that we call the A-players. To succeed in today's business landscape, fostering a culture of growth and development within your organization is crucial to attracting those top talents.

A training/coaching culture embodies this by providing a space for vulnerability, introspection, and personal and professional development. As Chris Mursau explained in our last workshop: "When you hire people who ignite, exhibit or even embody your core values, there is going to be more energy, it is going to be more fun, and it will be easier to attract other A-players. A-players attract A-players.".

Watch webinar:  "Assemble Your Dream Team: The 4 Steps to Attract, Train & Retain A-Players"

3- Next level communication: "Stop demotivating; start de-hassling"

Realize your company's objectives are hindered without authentic connections among team members. It's not just about having a group of individuals who happen to work together but a team that connects and thrives together.  The strength of your team is not only measured by productivity and efficiency but also by the bond among members.

It's hard to create a bond when you feel micro-managed. "The best managers/coaches are less concerned about motivating their people and more concerned about NOT demotivating them" [Page 72 of "Scaling Up: How a Few Companies Make It... and why the Rest Don't]. 

employee effectiveness examples

Enhancing self-awareness and interpersonal communication through coaching your employees is one of the best ways to strengthen your team.  It's like a boot camp for team relationships, pushing them to grow, communicate better and learn together. 

With improved communication, you'll observe a spike in engagement, participation, and collaboration, making achieving your company's vision and goals easier. [Thus, once people understand their roles and contributions, coaches will set clear and consistent expectations about the outcomes of their team's work.  Defining the what and not the how great managers/coaches give employees the autonomy to find their ways of achieving these goals. [Page 72 of "Scaling Up: How a Few Companies Make It... and why the Rest Don't]. 

4- Expanded Skill Sets and helps people play to their strengths

Another benefit of training/coaching your employees is that it allows team members to develop new skills, build on ones they already have, and play to their strengths. This can help increase the team's overall capabilities and ensure everyone contributes to the best of their abilities! 

A strength isn't just something your employee is good at; the reality is it's only a strength if it gives that employee energy. It's not a strength if it's something they are good at but drains the life out of them. Thus a key function of great coaches is helping individuals focus more on activities that give them energy and not the activities that drain them, even if they are naturally good at them.

So, never stop learning!

effective employee

5- Creates a safe environment

Influential leaders understand that their team members are not just employees but human beings with their own emotions and personal experiences that affect their performance daily.

The ability to guide your staff through these ups and downs separates true leaders from just managers. By implementing coaching and training programs, managers create a safe and confidential environment for employees to ask questions and learn without feeling judged. 

There are no stupid questions, only the chance for the employee to improve. Employees feel this and appreciate it. Employees love when their leader shows empathy and gives them all the tools they need to succeed.  And that's just the tip of the iceberg of the value coaching can have on your team's performance. 

Do your employees generally feel unexcited and uninspired? In his book "Worth Doing Wrong",  Arnie Malham speaks about the importance of maintaining a culture of constant learning among employees to guide you toward the kind of cultural leadership that will catapult your workforce’s energy and effectiveness. 

Worth Doing Wrong Video Learning Suite by Arnie Malham

Now, we understand you may have some doubts about coaching your employees instead of managing them, so let's address those: 

1- Budget restraints 

One familiar doubt is that bringing outside coaching for every team member is too expensive.  While that may be true depending on the current revenue of your business, when you consider the potential benefits of coaching for your team, it becomes clear that the investment is worth it.

In fact, many studies show the effect of organizational culture on employee perception. The research made by the International Coach Federation found that companies that invest in coaching see an average return on investment of 5.7 times the cost of the coaching. 

Top-performing companies know that investing in culture on how to be an effective employee and leadership development can pay off dramatically. In our ebook "How a Strategic Focus on Training Delivers ROI", you will learn to build executive and employee learning programs that can generate up to a 300% Business ROI.


how to improve employee efficiency

2- Time Consumption

Another doubt that some business owners may have is that coaching is time-consuming and takes away from other essential tasks.  We'd argue that coaching will save a ton of time in the long run when your team works more efficiently and effectively and feels more valued.  

We believe you could reasonably expect a minimum 300-600% return on your $70,000 investment over the next 12-18 months. That would amount to a $210,000-$420,000 boost to your gross profit or an additional net profit of $140,000-$350,000 to the bottom line. This would increase your net bottom line from 3% to 4.4-6.5% assuming static sales revenue.

This simple calculation clearly shows that making a sustained commitment to training can result in big payoffs and an increase in bottom-line profitability.

The ROI of Your Training Investment

Graph ROI of education

3- Coaching is not relevant to my business industry

Finally, some business owners may doubt that coaching is not appropriate for their industry or that it is not relevant to their business. The truth is coaching can be effective in any industry and for any business. At Growth Institute, we've successfully coached companies in almost every industry imaginable (construction, equipment suppliers, accounting, water treatment suppliers, software, and many more).

With coaching and training, your team can identify the specific challenges that your business is facing and develop strategies to overcome them. In summary, coaching can be a vital instrument in enhancing company employee effectiveness strategies. It assists teams in overcoming barriers, promotes communication and teamwork, and expands skill sets.

Although some business owners may have reservations about the impact of coaching and training their employees, it becomes a no-brainer when you look at the overwhelming advantages.

We know you want your team to demonstrate outstanding employee effectiveness examples and results but you are unsure where to start?

1- Try Our Flagship Program: Master Of Business All Access

studies of the effect of organizational culture on employee perception

In our opinion, the most significant performance coaching tip available on the market would be to test drive our flagship program MBD All Access.

At Growth Institute, we are not just a training company, everything is about implementation. When a company grows, you think things should get easier but they actually don’t, they become more complex. There are more people, more processes, and more infrastructure, which together can lead to an increase in drama. More things can go wrong with more moving parts, leading to bad decisions such as mishires, inadequate strategy, and bad execution.

By empowering your organization and your people with the right tools, templates, and support, MBD All Access is in our opinion the biggest bang for your buck on the market to boost team performance.

Everything you need to Accelerate Growth, Drive Implementation, and Maximize Revenue is found directly in the MBD All Access Program. MBD All Access is the Growth Institute's entire learning platform at your fingertips to coach your organization instead of managing it. 

This puts you in the driver’s seat and gives you the freedom and confidence that your team has what they need to succeed.

This revolutionary program provides training on every aspect of the business.

Here's what you can expect with MBDAA: 

  • Tailored curriculum to drive improvement with your People, Strategy, Execution & Cash to ensure the business doesn't rely solely on the CEO.
  • A global growth community of best-selling authors, business coaches, and leaders of scaleups provide support and guidance.
  • Cutting-edge tools and training that puts real-time ROI, deliberate practice, and results above everything else!
  • Weekly live group coaching calls with the Master Business Courses plus non-stop community support from other leaders worldwide.

Plus, much more!

Everything you need to scale your business lies within our MBD All Access Program, we leave no stones unturned.

 If you want to learn more about MDBAA, click here to schedule a call with a strategist.

On this call, there is no pressure to buy anything.

It will be like two friends having a cup of coffee, and even if you decide it's not the right fit, you'll still walk away with some actionable steps to improve your situation immediately.

Now start coaching, and stop managing!