News, Advice & Insight About Executive & Organizational Development
From WJM Associates, Inc.
September - October 2006 - Vol. 5 Issue 5
Welcome to WJManagement Advisor, a bi-monthly newsletter about executive and organizational development from WJM Associates, Inc., a leading human resources management consulting firm. Delivered via e-mail and archived on our Web site www.wjmassoc.com, WJManagement Advisor presents issues and trends affecting the successful development of organizational leadership as well as strategies for executive career growth.

We hope you find WJManagement Advisor useful and welcome your comments. Send comments to our editor Tim Morin at tmorin@wjmassoc.com.

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Executive Coaching in China

By Jeff Hasenfratz

The increasing number and size of  U.S. multinational corporations (MNCs) in China over the last 28 years has spawned a corresponding need to provide "on the ground" support for executive development.  Coaching, which until recently has been largely used to support North America and Europe-based MNC executives, is increasingly being implemented to effectively address the development needs of their counterparts in China.

According to Dr. Kenneth Lieberthal, a member of the National Security Council during the Clinton Administration, China is going through a scope and pace of change the world has never before seen.  Speaking in Shanghai last autumn, Lieberthal noted that China is undergoing four simultaneous changes: marketization, urbanization, privatization, and globalization.  

These changes, resulting from China's decision to open itself increasingly to Western economic and cultural forces, are a challenge not only for local Chinese but also for China-based executives of U.S. MNCs.

These executives, General Managers and above, typically come to China from Asia (outside China), or the U.S.  Many are Chinese "returnees" from the U.S. or other countries.  Their geographic responsibilities include parts of China, the entire country, or, increasingly, the Asia/Pacific region.  Business responsibilities may include a portion, or entire scope, of the company's activity.

As in other parts of the world, coaching in China is used to help executives identify and reach more of their potential.   Similar too are the key elements of any quality coaching process: rapport building, data gathering, goal setting, coaching, and feedback.  The coach's experience, the "chemistry" between coach and executive, the executive's motivation to change, and MNC support are also critical to a positive outcome.    

In my own experience, executive coaching in China tends to be currently focused on development needs associated with leadership, often "executive presence" and other forms of communication.  Coaching is also used to assist executive onboarding, and to support staff development and retention.

Executives who have been in China awhile often lament that headquarters doesn't understand what it takes to be successful in "our part of the world".  Back at headquarters, seniors and peers can't understand why their high-potential colleague in China can't understand (or worse, won't listen to) their views. 

In this situation, coaching has been used to support improvements in the leader's executive presence.  Coaching support has led, for example, to action on "active listening" goals.  It has also enabled the executive to present his China market experience in the form of a conversation with (rather than a lecture to) headquarters' colleagues.

Improving executive presence can be tough, even when the executive has the chance to return to headquarters periodically to interact with colleagues there.  Improving other forms of communication can be even tougher, however.  A case in point:  interacting effectively on conference calls with peers and senior colleagues from a variety of cultures.

For "returnee" executives in particular, even those who have spent a few years in the U.S., the challenge of communicating effectively with colleagues from non-Confucian cultures can be daunting.  How can executives express a point of view, especially one which challenges the views of colleagues, in a way which allows for effective interaction and a felt need to show respect?

Coaching has been used in this situation to help executives identify ways to strike a balance, ways which have included building relationships with key colleagues in settings other than conference calls.  Having built closer relationships, executive then tend to have the confidence to engage in group dialogue more effectively.

Coaching in China also has its challenges.  Chinese executives may not be as comfortable with coaching as their U.S. or Europe-based colleagues.  They may perceive it less as a development vehicle than as a means of remedying their "faults".  Worse, it may be seen as a prelude to dismissal.

In addition, given the value Confucianism places on hierarchy, Chinese executives may find it difficult to "slot" the coach psychologically.   For example, as a partner in the executive's development, the coach is clearly not a subordinate.  If the coach is seen as a peer, however, he or she may be perceived as insufficiently capable of providing the support the executive feels is needed.  If the coach is seen as a superior, then the executive may expect to be taught, rather than coached.

Given these cultural nuances, successful coaching of Chinese executives may well require a longer rapport-building period than appears to be necessary in the U.S.   Coaching relationships also tend to involve business mentoring as well as coaching.

Even taking cultural differences into account, the ROI from using coaching for executive development in China appears to be strong.  Such returns include greater productivity and effectiveness, higher retention potential, and a mitigation of derailment risk.

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WJM Associates Faculty member, Jeff Hasenfratz is a Shanghai-based executive coach and Mandarin speaker who has made his home in Asia for 14 years.  Jeff leads WJM's Chinese executive coaching practice and is a founding member of the Hong Kong Coaching Community.

WJM's highly experienced faculty of over 100 professional coaches, located throughout the world (including China and Japan), provides local expertise and the maximum adaptability in complementing the personality, developmental needs, corporate culture, industry, personal background and even the language of the executive being coached.


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Managing Your Company's Reputation


By John Doorley

It is a truism that just about every problem brings with it an opportunity.  Such is the case with the reputation scandals that continue to plague corporations.  The opportunity is for those departments at the epicenter of organizational reputation management to do just that - start to manage reputation.  Those departments are, usually, Human Resources and Corporate Communications. Although CEOs agree that reputation has a value -- is an asset -- few firms actually treat it as such. Most companies do not have a system in place for regular, periodic accountability on variations in reputation, yet without such a system opportunities will be missed and problems will become magnified.  Measurement, acknowledgment and planning make possible proactive behaviors and communications to take advantage of reputational opportunities and minimize problems-- thereby building reputational capital.

Can Reputation be Managed?

The proposition is simple: If the two components of reputation(performance and communication) can be managed -- why can't reputation itself be managed? There are many organizations that list "reputation management" as a service offering, especially since the Sarbanes-Oxley Act became law in the wake of U.S. corporate scandals.  Yet most of them are actually providing reputation measurement or crisis communications services and offer little in the way of proactive management of a company's reputation.  They do not produce a plan that aims to manage reputation as other assets are managed - including the plusses and the negatives associated with any asset.    And one thing is certain, as recent business scandals have demonstrated in the sharpest relief: reputations can surely be mismanaged, and in many cases, not managed at all.  There is a clear need for a new approach.

Is Reputation an Intangible Asset?

As nebulous as reputation can seem, it has real, tangible value that can be measured. Companies with the better reputations attract more and better candidates for employment, pay less for supplies, gain essentially free press coverage that is worth as much if not more than expensive advertising, and accrue other benefits that actually contribute to profits.  So the historical view of reputation as an intangible asset is the wrong view.  It follows that those who believe reputation can be managed -- perhaps not totally, but which asset can be? -- must establish a plan to do so, as they would for any other asset.

Comprehensive Reputation Management

"Comprehensive Reputation Management" (copyright 2003 John Doorley) provides a formal structure for managing reputation.  It is a way for an organization to get its arms around this asset, and a way to manage reputational problems, vulnerabilities and opportunities.  It has been vetted before the leadership of The Conference Board, many industry leaders and CEOs, numerous academic researchers, and heads of corporate communications at 30 major companies.

Comprehensive Reputation Management = A long-term strategy for measuring, monitoring and managing an organization's reputation as an asset.  Comprehensive Reputation Management is to reputation what risk management is to other assets.  This strategy results in the management of an organization's performance and behavior, as well as its communications.

The Comprehensive Reputation Management methodology is applied to the major areas of an organization-for example, finance, human resources, investor relations, manufacturing, marketing and public affairs. Each area gets involved in a process that is a way of approaching total reputation management -- performance/behavior + communication -- and is distinct from brand management (the marketing value of a name) or corporate identity programs (which usually boil down to institutional advertising).

What this process delivers is a practical and actionable Reputation Management Plan.  This is a strategic performance/behavior and communication plan to move the images various constituencies hold about the organization closer to the intrinsic identity (what the organization stands for).   The very act of having to list reputational assets and liabilities helps the various units of the organization focus on reputation management. The Comprehensive Reputation Management Plan includes: a summary of the internal and external reputation audits; measures of reputational capital; a statement of reputational challenges and potential problem areas by company or organizational unit; the respective goals and opportunities, and corporate or organizational message strategies. With objectives, strategies and timelines, the Reputation Management Plan becomes a strategic guide for units of the organization to follow, short -and -long term.

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John Doorley is clinical assistant professor and director of the M.S. Degree Program in Public Relations and Corporate Communications at New York University. Formerly head of corporate communications at Merck, when it was routinely named "America's Most Admired Company" (annual Fortune Magazine poll), he is co-author, with Helio Fred Garcia, of a book on Reputation Management to be published in October.  With Professor Doorley, WJM offers Comprehensive Reputation Management services to its clients.

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New WJM Team Member

Kathryn Kohler has recently joined WJM team as VP-Strategic Consulting.  Kathy is a strategic development executive with a successful 25-year career in wide-ranging, high profile corporate and consulting positions.  Kathy's career has focused primarily in the Financial Services arena where she has extensive market knowledge and competency in the areas of mergers and acquisitions integration, growth strategy, global marketing, corporate reputation and brand.  As a management consultant, Kathy has had pleasure of working with many of the world's largest financial services firms impacting over 60 senior level projects for 20 major clients including Chase, American Express, Prudential, Verizon, Lord Abbett, Guardian, TIAA-CREF, Legg Mason, BlueCross BlueShield, etc.  Kathy has a terrific ability to initiate and build long-standing client relationships.  Her true talent is the ability to listen, study, synthesize, determine the best course of action, build a plan and "painlessly" execute.  Kathy is a persuasive presenter, skilled negotiator and accomplished at developing collaborative teams.

Welcome Kathy!


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About WJM Associates

Headquartered in New York City, WJM Associates is a recognized leader in the fields of executive and organizational development. WJM has a Faculty of over 100 experienced executive coaches and consultants delivering coaching, assessment and other organizational effectiveness services throughout the world. To learn how we can help you, visit www.wjmassoc.com, contact one of our Account Directors toll free at 1-877-667-4647 or e- mail us at tmorin@wjmassoc.com.

Sincerely,

Tim Morin
WJM Associates Inc

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Web: http://www.wjmassoc.com


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