Business Coaching and Consulting: Unraveling the Mystery By Traci Matt Associate Editor As the electrical rebuilding industry struggles to find its place in the New World Order, consultants and business coaches are potentially critical resources for shops fighting to keep their doors open. But what is the difference between a consultant and a business coach, what can they do for a rebuilding company, and how much should you expect to pay? Rebuilder Ronnie Charnes, president of ACC Rebuilders in Memphis, Tenn., has experienced the good, the bad and the ugly when it comes to business con- sultants. He hired his first consultant back in the 1980s when no one had even heard of a business coach. This consultant, who was familiar with the rebuilding industry and how the economic trends of the time were cutting into the market, was a wild success. “He advised us to get out of remanu- facturing for parts stores and stay in spe- cialty manufacturing. We trimmed our business way back and it paid off. We paid him $1,500 a day but it was worth every penny,” said Charnes. “(He) knew our industry and how it should operate and was a great help and encourager to us. It made all the difference to have him in our company.” They even called on this consultant later for advice in purchasing another company, which “proved successful because he knew and understood our market.” Fast forward ten years, and Charnes’ experience wasn’t so good. “We felt we again needed some direction for our business. Based on recommendations from others we invited another consultant. He said he could help us accomplish our goals,” said Charnes. “His approach was radical and sugges- tions made were inconsistent with our entire operation. He caused internal tur- moil rather than consolidate and unify our operation. Because of the bitter feel- ings, nothing was incorporated into our company. This man knew nothing of the industry and because of this we would hesitate to bring in another consultant without fully investigating their knowl- edge of our industry.” According to ActionCOACH Caroline Smith, Overland Park, Kan., it is vital to differentiate between business consult- ants and coaches. “If I were a consultant, it would be important for me to be familiar with your industry,” said Smith. “A consultant usually comes into a company, assesses the situation, then produces a report with findings and leaves it up to the owner to implement the suggestions. As a coach, my approach and toolbox work with any business. I will work with the owner to assess the business, set goals, hold the owner accountable, teach strate- gies, and show how to test and measure. “As a coach, I don’t consult. I don’t do the work for you. I will teach you how to realize that (business) potential, by giving you the knowledge, the tools, the vision, motivation and challenge to take both you and your business to the next level, and to ultimately enjoy the financial and lifestyle benefits that come with it.” Smith said she is often asked by veter- an business owners what she could possi- bly teach them about their business. “My reply is ‘absolutely nothing.’ If you have built your business successfully then you are unquestionably the expert in your field. There is nothing I can teach you — about your business. What I can do though is give you a completely objective view of your business, work with you to enable you to tap into the knowledge and experience gained from working with thousands of businesses, the knowledge of what has really worked in those businesses, and introduce you to a way of thinking about your business that will change the way you approach things.” Kay Cannon, Master Certified Coach and president of the International Coach Federation (ICF), agrees that a business coach does not necessarily need to be familiar with rebuilding to be effective in your small business environment. “While it is not important to work with a coach who has experience in the automotive business, it is important you hire someone who subscribes to a code of ethics, has coach-specific training and, even better, has earned a credential from the International Coach Federation.” Cannon said the ICF offers a free referral service via their Web site at www.coachfederation.org. “Small business success hinges upon using resources wisely to create and sustain outstanding customer loyalty and satisfaction. Working with a coach can help a small business improve cus- tomer service, productivity, morale, and employee retention. A coach can also help small business owners to make better decisions, handle difficult situa- tions with ease, and exceed business goals,” said Cannon. Not a Flash in the Pan The $1.5 billion business coaching industry added credentialed members to its ranks at a record-setting pace last year all around the world. According to The Worldwide Associ- ation of Business Coaches (WABC), the origins of business coaching can be traced to the leadership development programs of the 1980s. C