An American consultancy did a study to discover whether the money its clients invested in executive coaching was getting a good return. It was not a large study, involving only 100 executives mostly from US Fortune 1000 companies. The results showed that companies that provided coaching to their executives realized improvements in productivity, quality, organizational strength, customer service, and shareholder value.

Unfortunately that survey shows only the best of the best. It doesn’t show that for many business owners hiring a coach can be a hazardous business.

Coaches seem to be everywhere these days, offering to coach us in every area of life and business. Some ‘life’ coaches remind me of that great line in Crocodile Dundee that goes something like “haven’t you got any mates?”

A business coach is often seen as someone who replaces the traditional consultant but while some of these have a great track record, many have absolutely no experience of business at all and are simply following a formula that a much cleverer person, who probably sold them a franchise, has devised.

Business coaching works best when the coaches are people of significant business experience who understand the workings of business at the highest levels. The need to influence and lead is important. The need for a robust business model is crucial. There is no mystery to how a successful business works but there are mysteries woven around why some people find it hard to do.

The best solution to increasing profitability must lie in the ability of the consultant or coach to ensure the business is functioning at optimum levels while at the same time ensuring that the business owner or CEO has the right skills to do the job. It is possible to have a good business with a poor leader but almost impossible for a good leader to get good results without having the right framework for making profit.

If you want someone to prove how business works best, choose a consultant with experience and a good track record. If you want someone to be your friend and ask how you feel about making money …… ask Crocodile Dundee.