Why Every CEO Needs a Peer Group and Business Coaching

As Chair of a Vistage CEO Peer Advisory Board in Northern Virginia, I have the opportunity to interact with many CEOs, Presidents, Founders, and Owners of companies and non-profit organizations.? In the course of explaining what I do and what is Vistage, I learn about CEO priorities, goals, and concerns. In that context, I would like to share some insights on why Every CEO needs a peer group and business coaching.

The information I’m providing is drawn from Vistage research and other sources referenced.

Vistage International, the world's largest CEO coaching and peer advisory organization for small and midsize businesses, was founded in 1957 by businessman Bob Nourse. Nourse's idea was to bring together executives from different industries to share their knowledge and experiences to help each other solve business problems and make better decisions. He called the group "The Executive Committee" (TEC) and made sure members kept their conversations confidential. When the group needed more information, Nourse would bring in experts to share their perspective. The formula worked, and TEC grew beyond Wisconsin into other countries by the 1960s. In 2006, TEC changed its name to Vistage.

Vistage members participate in monthly, private advisory board meetings led by an accomplished executive coach called a Chair. That is my role.? The Chair helps members challenge each other to think critically and share expertise to arrive at better decisions. Members also have access to expert speakers, personalized coaching sessions, and international networking. Vistage's vision is to help high-integrity leaders make great decisions that benefit their companies, families, and communities.

As of January 2023, Vistage has a history of 65 years and more than 45,000 members in 35 countries representing nearly every industry across a range of small to large businesses.

According to Vistage research, many business leaders and CEOs feel a sense of loneliness at the top and turn to business coaching for guidance. Executives often feel like all of the big decisions are all on them — and they don’t always have a board of directors or objective group of colleagues to lean into. Those who have others to turn to wonder if there’s a bias or agenda to the input they receive — or if their peers have the kind of experience to be of high service.

When CEOs have a coach they can rely on, along with a CEO peer advisory group, it’s a powerful combination that delivers impressive results.

What is business coaching?? Business coaching is one of the best ways to grow your business faster, become a better leader and set a clear vision for your business — and an action plan for achieving it. ?A business coach is an accomplished leader who generally has enjoyed decades of success as a CEO, top executive or business owner. Also referred to as an “executive mentor,” “CEO coach,” or “Chair,” your business coach should have formal training in mentoring others and should follow a structured framework for success. Business coaches understand a leader’s personal and professional life and associated issues are intertwined and can impact on that person, both negatively and positively. ?Consequently, the coach should pursue a holistic approach to coaching and encourage clients to address any issues they are facing. ?Business coaching can help you clarify your thinking, establish priorities for your work, help you make more informed decisions, and hold you accountable — and on deadline — for agreed-upon results. Your business coach can also be a great source of support, a trusted ally and someone to help you identify your blind spots — obstacles to growth that we all have but usually prefer not to know about.

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What is a Peer Advisory Group? A peer advisory group or CEO peer advisory group is a highly-focused, specialized network of support comprised of fellow business owners and executives from non-competing organizations. Through the structured environment of a peer advisory board, leaders work together to tackle tough subjects and topics, helping unlock better decision-making skills, increased profits, and many other benefits for the individual and organization. ?The CEO peer advisory group represents a unique opportunity for executives to share experiences, offer insights, and give and receive advice. By participating in a business peer advisory group, you’ll be optimally positioned to navigate challenges, create solutions, and achieve your goals, whatever they may be.

Six reasons CEOs should Join a Peer Advisory Group:

1. Gain perspective
2. Challenge confirmation bias
3. Think bigger
4. Learn more
5. Solve challenges
6. Share ideas?

Four benefits of Peer Advisory Groups:

1. Accountability
2. Confidentiality
3. Networking
4. Increased profits

Executive coaching makes a difference. A recent Forbes article (https://www.forbes.com/sites/jonyounger/2024/07/22/is-coaching-part-of-your-freelance-future/) summarized ?data that highlights the value of executive coaching:

• An HBR study noted, ?“A strong coaching culture is correlated with high-performing organizations, including success at large-scale strategic change.”
• A Conference Board survey found 63% of organizations using coaching found it increased managers’ effectiveness.
• A Center for Creative Leadership survey found 98% of coaching clients received “practical, realistic, and immediately usable input" from coaching..
• A MetrixGlobal survey found executive coaching produced a 53% increase in productivity, 48% increase in work quality, and 22% reduction in costs, attributable to better leadership skills and decision-making.
• An ICF Global Coaching study found 72% of coaching clients improved their communications and 71% improved interpersonal skills. “70% of these people experienced higher performance at work, and 67% felt they had better work-life balance.”
• Gallup reports that “Managers who are coached are better equipped to create engaging work environments. This engagement is closely linked to employee satisfaction and retention.”

?If you are interested in exploring the Vistage appoach, CEO coaching, and the Peer Advisory Board model, contact me.? ??[email protected];? https://www;linkedin.com/in/rjkolton/; 703-623-8279