Coaching is, at its core, a deeply human endeavor. It’s a skill that requires empathy, curiosity, and an ability to connect with others on a personal level. Effective coaching demands patience, insight, and adaptability, making it a uniquely human process. Yet, as artificial intelligence (AI) tools like Copilot and ChatGPT become increasingly advanced and widely used, the potential to integrate AI into the coaching process is becoming more apparent. Rather than viewing AI as a replacement for human coaches, we see it as a complement—a tool to augment the learning experience and extend the reach of coaching.
Our approach, inspired by our company’s founder Dr. Peter Jensen, is rooted in the idea of AI as “the coach’s coach.” Instead of attempting to replicate the nuanced human interactions of coaching, we’re leveraging AI to sustain learning and assist leaders as they progress toward coaching mastery. AI becomes a tool that helps leaders get comfortable with coaching and sharpens their skills, rather than replacing the critical role of a human coach.
Drawing inspiration from “The Coach’s Coach”
Dr. Peter Jensen has been known for decades as “the coach’s coach.” Over 35 years, his focus has been on empowering coaches rather than stepping into their shoes. He works to help them improve their craft and support their teams more effectively, offering guidance, insights, and tools to help them reach their potential. His role isn’t to be the head coach, but instead to act as a mentor and resource for those who are.
This philosophy guided us as we considered the potential of AI in leadership and coaching development. What if every leader had access to an AI-powered coach in their pocket—one they could turn to for advice, guidance, and practice whenever they needed it? This vision drives our integration of AI as a tool that complements and supports, rather than competes with, human coaches.
Understanding AI’s role in the learning curve
The learning curve is a familiar concept in skill development. It illustrates how people acquire new skills over time, beginning with an initial uncomfortable phase of struggle and slow gains, progressing through steady improvement, and then hitting the final grueling ascent to achieve true mastery. AI’s role is most valuable in the intermediate stages, where learners have built a foundation and consistent practice and support can help them to make big leaps up the curve.
High touch to learn
At the beginning of the learning curve, learners are stepping into unfamiliar territory, and progress can be slow and frustrating. At this stage, motivation, encouragement, and a safe environment to make mistakes are critical. This is where the presence of a human coach is indispensable. Human interaction provides the emotional support and expert guidance that learners need to build confidence and take those first steps.
“The goal of this high-touch phase is to equip learners with a solid foundation and prepare them to apply their new skills independently.”
For example, in our 3×4 Coaching program, leaders regularly report discomfort with delivering corrective feedback and therefore delay or outright avoid it. In the classroom, we are able to set them up in pods with their peers and, through a triad exercise, show that giving “negative” feedback can be a positive, developmental experience. With the encouragement (and accountability) of their peers, participants take the first steps up the learning curve and start to build confidence.
This is not much different than learning to ride a bicycle. Initially, the learner needs someone to hold the bike steady, provide feedback, and offer reassurance. This hands-on support is essential for achieving balance and overcoming the fear of falling. Similarly, in leadership development, learners benefit greatly from in-person workshops or coaching sessions where they can practice new skills, ask questions, and receive real-time feedback. The goal of this high-touch phase is to equip learners with a solid foundation and prepare them to apply their new skills independently.
High tech to transfer
As learners move past the initial hurdles, they enter the middle phase of the learning curve. This is the growth phase, where they’ve gained a basic understanding but need consistent practice to refine their skills and build confidence. At this stage, AI can play a crucial role in supporting learners’ development.
AI tools excel at providing scalable, consistent support during this phase. They can simulate real-world scenarios, offer constructive feedback, and serve as a resource for learners to practice and refine their skills. Our pilot programs have confirmed the value of this approach. Leaders who have used our AI tools report that these tools help them apply what they’ve learned in their training programs. For example, our AI tools have been instrumental in helping leaders simulate coaching conversations, deliver feedback effectively, and prepare for performance reviews. By practicing in a non-judgemental, low-stakes environment, they gain confidence and improve their skills before applying them in real-world situations.
AI as sustainment
AI is particularly effective at supporting sustainment. To understand this, it’s helpful to distinguish between two types of motivation in the learning process: the motivation to learn and the motivation to transfer.
“People are motivated to learn when they encounter new ideas, engaging experiences, or compelling stories.”
The motivation to learn is rooted in intellectual curiosity. People are motivated to learn when they encounter new ideas, engaging experiences, or compelling stories. This type of motivation often requires a human touch—someone who can inspire and captivate learners, sparking their interest in the subject matter. These are areas where human coaches excel. They can create dynamic, interactive learning experiences that draw learners in and motivate them to engage with new concepts.
The motivation to transfer, on the other hand, is about applying what has been learned in a real-world context. This requires an environment where learners feel supported and confident in their ability to succeed. Motivation to transfer comes from having access to resources, someone to turn to for advice, and a sense of accountability. These are areas where AI shines. By providing tools and guidance for application, AI helps learners bridge the gap between theory and practice.
AI can simulate coaching conversations, offer tailored feedback, and provide reminders to keep learners accountable to their goals. It creates an environment where learners can experiment, refine their skills, and build confidence in their abilities—all while supporting their long-term growth.
The future of coaching
The integration of AI into coaching enhances rather than replaces the role of human coaches. While human coaches inspire curiosity, build foundational skills, and connect on a personal level, AI excels at providing scalable, consistent support during the critical growth phase of skill development. This complementary relationship allows learners to benefit from both personalized guidance and accessible tools for practice and refinement.
By blending the strengths of human connection and technological capability, we create a sustainable, accessible coaching model. Human coaches can focus on motivation and expertise, while AI supports learners in applying and mastering new skills. This balanced approach ensures coaching remains effective and widely available, fostering a culture where both learners and coaches thrive in an evolving landscape. 15,000 athletes will compete in 878 events across 54 sports at the Paris Olympic and Paralympic Games. To help you narrow in on what to watch, we asked our network of elite athletes, coaches and influencers to share the stories they’re most excited for. Here’s what they said.
Martha McCabe
3x Olympic swimmer, Founder, Head to Head
It might sound silly but one of the things I’m most excited about is for the athletes to experience a ‘normal’ Olympic Games.
After an extremely challenging, delayed and socially distanced, Tokyo Games in 2021, this will be the first chance for summer athletes since 2016 to experience that real Summer Games feel. From socializing in the athlete village, to getting out into Paris after they compete to soak up the Games energy, it’ll be incredible!
On the performance front, Summer McIntosh is the one to watch in swimming. She’ll have stiff competition with Australia’s Ariarne Titmus, and USA’s Katie Ledecky (among others!), but she’s proved she belongs with the best, and I think she’s got a great shot at some seriously well earned Olympic medals.
I’m also really excited to see Josh Liendo lead a quickly improving men’s swim team. He, along with a few other young Canadian men (like Ilya Kharun) have proven that they’re not afraid of the big boys on the world stage, so I think they’ll be ready to leave their mark for Canada too.
When to watch
Summer McIntosh: July 27 – August 4
Josh Liendo: July 31, August 3, August 4
Ilya Kharun: July 31, August 3, August 4
Karen O’Neill
CHIEF EXECUTIVE OFFICER, CANADIAN PARALYMPIC COMMITTEE
There is incredible momentum leading into the Paris Paralympic Games.
It signals to many Paralympic athletes a competition post-COVID, whereby their planning and preparation have been more within their control. For many, it is a chance to come back following the Summer Games in Tokyo with focus and determination to perform.
Athletes heading into these Games are now in the final qualification period to secure a nomination to Team Canada. There are many exciting stories, with numerous first-time athletes heading to Paris. For some veterans, like the Women’s Goalball Team, it means securing a nomination for Team Canada.
Let’s all cheer on Team Canada in this fierce and exciting competition from August 28 to September 8!
When to watch
Paralympic Games: August 28 – September 8
Women’s Goalball: August 29 – September 5
Debbie Low
CHIEF EXECUTIVE OFFICER, CANADIAN sport institute ontario
For me, one of the most exciting sports to watch at the Paris Olympic Games will be Women’s Beach Volleyball, featuring the Team Canada duo of Melissa Humana-Paredes and Brandie Wilkerson.
I worked with Melissa’s dad at Ontario Volleyball when I was starting my career in sport management, and these two talented athletes have been supported by Canadian Sport Institute Ontario (CSIO) throughout their careers.
Paris 2024 will be Melissa and Brandie’s second Olympic appearance, having both competed at Tokyo 2020 with different partners. Melissa and Brandie teamed up in 2022 and have since made the podium at numerous international and professional beach volleyball tournaments. They are currently ranked 4th in the world.
Melissa is also a former World Champion and a two-time Commonwealth Games Champion, having won the FIVB Beach Volleyball World Championship in 2019 and the Commonwealth Games in 2018 and 2022, all with her former partner Sarah Pavan.
When to watch
Women’s Beach Volleyball: July 27 – August 9
Anne Merklinger
CHIEF EXECUTIVE OFFICER, Own The Podium
Canada Basketball is set to make history at the 2024 Olympic and Paralympic Games.
For the first time, Canada has earned Olympic qualification for the women’s team, the men’s team, and the 3×3 women’s basketball team. This milestone highlights the growing strength and depth of basketball in Canada.
The women’s, men’s, and 3×3 women’s basketball teams are heading into Paris with significant momentum. Each team has demonstrated exceptional skill, determination, and teamwork throughout the qualification process, providing a strong foundation as they prepare to compete on the world stage.
Additionally, both the men’s and women’s wheelchair basketball teams will compete at the Paralympic Games. Known for their competitive spirit and resilience, these teams add to Canada’s robust presence in basketball.
With no regrets and a steadfast focus on winning, Canada Basketball is poised to make a substantial impact at the Paris Olympics and Paralympics, representing Canada with pride and inspiring future generations.
When to watch
Men’s Basketball: July 27 – August 10
Women’s Basketball: July 28 – August 11
Women’s 3×3 Basketball: July 30 – August 5
Men’s Wheelchair Basketball: August 29 – September 7
Women’s Wheelchair Basketball: August 29 – September 8
Mel Davidson
4x gold medal winning coach
Canada has recently become a basketball nation.
Five teams will represent Canada in Paris: three Olympic teams (Men’s, Women’s, and Women’s 3×3) and two Paralympic teams (Men’s and Women’s). The Women’s 3×3 team, featuring the top three FIBA Women’s 3×3 players, won a nail-biter in their final Olympic qualifying game to secure their spot.
The Men’s team, qualifying for the Olympics for the first time in over two decades, is riding high after beating the USA to win bronze at last year’s world championships. With their most talented roster ever, the big question is whether they can build on the team approach developed over the past four years.
The Women’s Wheelchair basketball team has an experienced and talented roster capable of medaling in Paris. However, after three coaching changes in three years, the question is whether their current stability will allow them to gel in time for a deep run at the 2024 Paralympics.
When to watch
Men’s Basketball: July 27 – August 10
Women’s Basketball: July 28 – August 11
Women’s 3×3 Basketball: July 30 – August 5
Men’s Wheelchair Basketball: August 29 – September 7
Women’s Wheelchair Basketball: August 29 – September 8
Rosie MacLennan
2x gold medal winning trampoline gymnast
Jacqueline (Jackie) Simoneau is an artistic swimmer heading into her third Olympic Games.
Known for her grace and precision in the water, Jackie has been a key figure in Canadian artistic swimming for years. After competing in the Tokyo Olympics, she decided to retire and pursue a doctorate in podiatric medicine, demonstrating her dedication and versatility both in and out of the pool.
In 2023, Jackie made the surprising decision to put her studies on hold and rejoin the national team. Her return has been nothing short of remarkable. At the 2024 World Aquatics Championships, she played a pivotal role in helping Canada qualify a full team and a duet for the Paris 2024 Olympics. Her leadership and experience have been invaluable to the team, inspiring her teammates and contributing to their overall success.
Jackie’s most significant achievement came when she made history by becoming the World Champion in the free solo routine. This victory marked the first time a Canadian had won the title in 33 years, cementing her legacy in the sport. Her comeback and subsequent triumphs have not only elevated her status but also shone a spotlight on Canadian artistic swimming on the world stage.
When to watch
Artistic Swimming: August 5 – August 10
Garry Watanabe
Principal trainer & sport lead, Third Factor
I’ll be watching the team rowing events, where brief yet intense races unfold in just 5-7 minutes.
These events are a captivating showcase of teamwork, skill, and endurance, as athletes push themselves to their absolute limits in the pursuit of victory. The synchronization and power displayed by the rowers create a thrilling spectacle that never fails to inspire.
Rowing demands both physical strength and mental resilience, with athletes enduring massive pain and exhaustion while maintaining perfect coordination. This combination makes rowing one of the most challenging and compelling sports to watch, drawing viewers who appreciate the dedication required to excel.
For a deeper insight into the preparation and commitment involved in rowing, I highly recommend The Four-Year Olympian by Jeremiah Brown. This book provides a gripping account of Brown’s journey and the immense effort needed to compete at the highest level, offering an inspiring story of perseverance and achievement.
When to watch
Rowing: July 27 – August 3
What could you achieve if every leader in your organization had a coach in their pocket – one they could access at any time to craft the perfect piece of feedback, prepare for a difficult coaching conversation, or get personalized advice for coaching their team?
“PJ” is our AI coaching companion that helps leaders apply their coaching skills by offering customized support whenever needed. Developed in partnership with The Modern Office Company, this intuitive and friendly chat bot is the latest advancement in sustainment for our flagship 3×4 Coaching program.
What is PJ?
We’re calling PJ The Coach’s Coach. It’s a tool designed to help leaders work through coaching challenges and get advice on applying the 3×4 Coaching model, our framework of 3 plays and 4 skills that exceptional coaches use to deliver results and build commitment.
At its heart, PJ is an AI chat bot developed by Third Factor and The Modern Office Company. With a license, you can ask PJ questions and discuss just about anything related to coaching. PJ has been trained in the 3×4 Coaching model and can help you use questions, listening, feedback and confronting to build clarity, improve competence or give recognition.
What really excites us is that PJ is a true coach. Unlike other chat bots that jump straight into giving advice, PJ first listens to understand and asks clarifying questions to get to the heart of every issue. A conversation with PJ flows like a conversation with a real coach – acknowledging the very real challenges of leadership, building clarity about what’s really going on, and generating practical strategies for applying the coaching skills.
What can PJ help with?
PJ is designed to help with just about any coaching challenge. Whether you need help building clarity around an issue, delivering difficult feedback, or finding the right way to recognize a team member’s efforts, PJ is there to help.
Here is a list of sample prompts you might give PJ across a variety of categories:
Work through challenges
My direct report seems unmotivated and I’m not sure why
I’m struggling to build a relationship with a new team member
I’m not sure how to best coach someone with more experience than me
Prepare for a Conversation
Help me prepare for a challenging conversation with my direct report
I need to have a team discussion to clarify performance expectations
How should I deliver feedback on something that I didn’t directly observe?
Enhance skills
Give me a scenario to practice using the BID feedback model
What are strategies for improving my active listening?
How can I get more comfortable with having tough conversations?
Generate ideas
What are some simple but personalized recognition ideas for my team?
What are approaches to identify my team’s strengths and weaknesses?
I’d like ideas for quickly building relationships with new team members
Coach in different contexts
How do I coach someone from a different generation than me?
What are strategies for coaching someone who doesn’t report to me?
How do I adjust my coaching for in-person vs. remote team members?
Deepen coaching knowledge
Can you explain the concept of ‘developmental bias’ in more detail?
Does the BID model work for both reinforcing and corrective feedback?
What does it mean to use emotion as a fuel for change?
See PJ in action
PJ is trained to coach you through problems rather than just giving answers. After you explain what you need, PJ will ask clarifying questions to understand the nature of the coaching challenge. It will then help you discover how to apply the coaching plays and skills to address the issue and help you create a detailed action plan.
Here’s a real conversation with PJ about a team member’s punctuality to give you an idea of just what PJ can do.
How do I get access to PJ?
PJ is currently in a closed Beta and not available to the general public. If you want to try PJ and give us feedback on how to improve, send us an email explaining your coaching challenge and why you think PJ could help.
Welcome to our summer reading list for 2024. The team at Third Factor has once again come together to recommend their top reads from the past year. Whether you want fiction, non-fiction, or even a cookbook filled with new recipes to try, you’re sure to find something new and interesting on this list.
This year, we’ve included a special recommendation from our new AI coaching companion, PJ. What does a virtual 3×4 Coaching expert recommend you read this summer? Scroll down to find out.
Ask will teach you how to read other people’s minds. Okay, maybe not literally – but author Jeff Wetzler shows convincingly that, with the right questions and the right approach to listening, we can get incredibly good at knowing what others are thinking. The book opens with a sobering look at how bad we are at intuiting others’ thoughts and feelings, and how easy it is to stay on the surface without ever benefitting from the thoughts and opinions that others truly hold, but may be reluctant to share. Wetzler lays out a highly practical framework for curiosity, packed with great questions and tips for listening. As someone who speaks for a living, I am always looking to get better at listening – and this has been an incredibly helpful book.
I highly recommend “Hidden Potential” by Adam Grant, especially for its take on team dynamics. The book shows that team success isn’t just about picking the most skilled people but about building the glue that holds everyone together. This resonated with my experience with Canada’s National Basketball Team. Their World Cup success wasn’t just about talent but their unity and teamwork, leading to their first Olympic qualification in over 20 years. Grant’s insights reflect what I’ve seen firsthand in sports.
Alexis Ullerick, Program Logistics & Materials Lead
I heard Pooka Lakshmin speaking about “faux self-care” on the Ezra Klein podcast and was very intrigued so I picked-up her book. It’s very thoughtfully written with examples from Lakshmin’s clinical practice and her own experiences. She points out that self-care shouldn’t be something to add to your to-do list but behaviour changes in your everyday life. She breaks down the four key elements of self-care: boundaries, self-compassion, getting to know yourself, and asserting your power. She even explains how the more we practice these concepts the more we can impact change on a larger scale. I am already working on incorporating tips from the book, and I feel off the hook for not being into meditation or yoga.
Christopher Gentile, Director Strategic Partnerships & Accounts
As someone who isn’t a big fiction-reader (but loves history!), The Amazing Adventures of Kavalier and Clay is an epic novel that blends history, adventure and human emotion into a masterpiece. It’s set against the backdrop of World War II and follows the journey of Joe Kavalier and Sam Clay, two cousins, as they move from Europe to navigate the world of 1930s America. Joe Kavalier, a talented artist and escape artist, escapes Nazi-occupied Prague to seek refuge in New York City, where he teams up with his cousin Sam Clay, an ambitious writer, to create the iconic superhero “The Escapist.” As they rise to fame, they encounter love, loss and challenges while facing their own personal struggles, relationships and identities. Chabon does an excellent job bringing the streets of New York City to life, as the layers of complexity to each character makes for a beautifully crafted and captivating story of friendship, creativity and strength in the face of adversity. It’s a fun, nostalgic and uplifting read for summertime.
A senior executive at Stripe and former senior executive at Google, Johnson has made an impact in some of the biggest and fastest growing companies in the world. The book is full of incredibly practical advice and tools. More importantly, it helps leaders understand how to deliver on a key challenge: leading with both empathy and accountability. If you get the audio version, as an added bonus, the author personally reads the book, which in my experience, truly makes the words come to life.
“Leaders Eat Last” by Simon Sinek is an essential read for anyone aspiring to become a better leader in their organization. Sinek explores the core principles of leadership that build trust, foster collaboration, and drive innovation within teams. By creating a culture where employees feel valued and empowered, the book offers actionable insights that can transform your leadership style and significantly improve team dynamics and performance. Embrace these principles to inspire and lead your organization toward sustained success.
“Demon Copperhead” is a compelling novel that reimagines Charles Dickens’ “David Copperfield” in modern Appalachia, following a resilient and sharp-witted kid named Demon navigating tough times, poverty, and additiction. It’s a powerful story about overcoming adversity and offers deep insights into human resilience and empathy.
This is a book about the practice of paying attention and refining our sensitivity to tune in to the more subtle notes. This is not a book you read and put on a shelf. You can pick it up any time as it is dripping with wisdom, for life, art and creativity. I love everything about this book, from the person who suggested it and bought it for me through to the texture of the creative cover and silky pages in between. Rubin suggests that living in discovery is at all times preferrable to living through assumptions. I like that perspective.
With summer just around the corner and my daughter’s wedding fast approaching, I’m diving into the Love and Lemons Cookbook for some culinary inspiration. This cookbook is a treasure trove of effortless and delicious vegetarian recipes, perfect for the special occasion at our cottage. With many vegetarians among our guests, I want to ensure that the weekend is filled with delightful and satisfying meals. If anyone has favorite meatless recipes to share, I would love to hear them! Let’s make this celebration as tasty as it is memorable.
For a deep dive into the psychology of change and how to guide others through it, “Immunity to Change: How to Overcome It and Unlock the Potential in Yourself and Your Organization” by Robert Kegan and Lisa Laskow Lahey is a fantastic choice. It explores why people resist change, even when it’s in their best interest, and offers practical steps for identifying and overcoming those internal barriers. It’s particularly insightful for coaches working with individuals facing significant personal or professional transitions.
“Remarkably Bright Creatures” by Shelby Van Pelt is a delightful read. This heartwarming and immensely readable novel explores the power of connecting with other living creatures and its impact on our lives. With a clever storyline and a touch of mystery, it’s perfect for a feel-good summer read. If you enjoyed “A Man Called Ove,” you’ll love this book.
Many websites use affiliate links to make money when you buy something from Amazon – we don’t. Feel free to follow the links provided or pick up the book you want from your favourite local bookseller. As our business continues to grow, we are very excited to welcome Chris Gentile to the team as Director, Strategic Partnerships & Accounts.
Chris joins us from the Smith School of Business at Queen’s University, where he managed client relationships for customized executive education programs – many of which were delivered in partnership with Third Factor. Before Queen’s, Chris oversaw strategic partnerships at EF Education First, a private education firm focused on developing professionals through educational travel.
Chris holds a Bachelor’s degree from the University of Toronto, and a certificate in Adult Learning & Development from the Ontario Institute of Studies in Education (OISE) at UofT.
Chris has shown a true passion for helping organizations develop their workforce for the future and working with thought-leaders to develop innovative solutions that drive lasting change. We’re excited to see him continue to build on his success with Third Factor.
New manager development programs are often a surprising “problem child” in the Learning & Development portfolio.
The recent Association for Talent Development (ATD) report sponsored by Third Factor, “New Manager Development: Building a Foundation for the Future,” highlights a critical gap: while 70% of organizations have new manager development programs, most fail to realize their full potential with 77% reporting only moderate success or worse.
Successful
Unsuccessful
No program
Helping new managers transition from individual contributor to people leadership roles is vitally important for the performance of not only those managers but everyone that reports to them as well. But with the large population of managers in most organizations, Learning & Development (L&D) is often tasked to execute these programs at scale and on a shoestring budget. Add in the time pressures on new managers, and it can feel near impossible to deliver impactful leadership development programs for this audience.
We know how challenging this mandate can be, so we’ve collected some practical strategies from leading organizations that we partner with to help get the value out of your investment in new manager development.
Leadership at the Helm: Building Top-Down Support
The ATD report underscores the importance of senior leadership in new manager development. Most of the organizations surveyed indicated that a lack of either resources, senior leadership support, and/or prioritization were challenges to training new managers. So how do you build that critical support at the top of the house?
01.
Pick your moment and leverage business needs to advance new manager training.
02.
Enlist your partners to sell your vision for new manager training internally.
03.
Get senior leaders directly involved in training to underscore its importance.
First, pick your moment. When organizations make significant investments in new manager development, it typically comes at a time when there is a clear business need – for example, a new strategy, a culture transformation, declining engagement scores, or high turnover. Use these windows of opportunity to demonstrate how Learning & Development can help turn conceptual business plans into real action by driving the right behaviors in managers.
Second, enlist your partners. You need every tool in your arsenal to build the strongest business case to senior leaders for investing in new manager development. Involve HR or internal business partners as well as your third-party vendors to help demonstrate to senior leaders the value and expected outcomes of these programs. Hearing directly from your leadership team about a strategic transformation they are driving from transactional to advisory services, for example, will enable your vendors to design programs that directly support those needs.
Finally, start small and get senior leaders directly involved. One L&D team that we work with is driving a multi-year rollout of a two-day in-person program to help managers build coaching skills – a significant investment of time and resources. But it all started with just one session focused on the C-Suite team. Through that firsthand experience, the CEO and his team became passionate champions of the program. They not only committed to funding a broad program rollout, but the CEO now speaks directly to every cohort of managers that goes through the program. His involvement sends a strong message about his commitment to manager development and also reinforces the connections between the content and their business priorities.
Balancing Learning Formats
Training a large population of new managers can be costly. For many organizations, it’s just not feasible to offer in-person experiential learning programs to all new managers.
In fact, the ATD report notes that asynchronous learning channels are the most common offering made available to new managers. We often hear from L&D leaders about the benefits of asynchronous learning for creating custom learning pathways and offering flexible programs that work around the busy schedules of new managers. Yet there is always a desire to incorporate some of the benefits of live, in-person learning experiences as well.
Increasingly, organizations are looking at blended learning formats to provide the scale and cost effectiveness of asynchronous learning but with some of the human connection and energy of live or in-person programs.
A financial services company that we partner with offers an asynchronous program that enables managers to learn coaching skills through a series of self-paced videos. But to enhance the experience through peer support and live discussions, managers are placed into learning cohorts that proceed through the program as a community. A live virtual kickoff provides context about the program, introduces managers to others in their cohort and builds energy around the learning journey they are about to start on. Midway through the program, cohorts reconvene for a live application lab to work through any questions and challenges as they start applying the skills in their work environment. And upon completion of the program, managers have access to 1:1 coaching and a library of resources to support ongoing skill development and application.
“The most successful new manager development programs that we see always place a strong focus on practical application.”
Whether asynchronous, in-person, or a blended format, the most successful new manager development programs that we see always place a strong focus on practical application. New managers are often completely underwater balancing their priorities of delivering results while also developing their people.
In fact, time constraints on new managers were the most common challenge cited in ATD’s report. Most new managers simply don’t have the time, energy, or interest to dive deep into theories on motivation and performance. Instead, they need a few practical tools that they can implement immediately, opportunities to practice new skills, and strategies to focus on actions that will have the greatest impact so that they see immediate results and build confidence.
Measuring What Matters: The Art of Success Metrics
You’ve heard it a million times – “how are we measuring the impact of this program?” When it comes to reallocating investment or cutting costs, new manager development programs are an easy target if they can’t demonstrate impact. Effective metrics not only demonstrate program effectiveness but also ensure the program remains relevant, impactful, and aligned with evolving business priorities.
ATD’s report highlights a similar issue: 87% of respondents cite a lack of metrics to track the program’s results as a challenge to new manager training. While most organizations do assess program effectiveness, many focus on participant satisfaction and use informal conversations rather than quantitative or outcomes-based measures. So how can you incorporate impactful metrics without creating an overly complex science project?
Most important is systematizing and quantifying participant feedback with a short, standard feedback form for every participant to complete. In our experience, taking a few minutes to do this at the end of sessions before participants return to their other work is the best way to drive response rates and specific feedback. In addition to participant satisfaction, include one or two questions tied to target outcomes – for example, participants’ confidence in their ability to apply the skills in their daily work.
With a basic feedback system in place, start looking at longer-term metrics and impacts. A large energy organization that we work with administers a final survey approximately three months after leadership development programs on how participants are applying their learnings and the resulting business impact of those actions. These concrete examples offer powerful impact stories that are highlighted to the company’s most senior leaders.
Another financial services organization surveyed the direct reports of program participants and found that more than 85% noticed an improvement in their leaders after completing the manager development program – a metric that helped build ongoing support and expansion of the program.
Transforming Insights into Impact
As the ATD report highlights, new manager development programs are a critical aspect of the L&D portfolio and yet there are very real challenges to making them effective and impactful. These strategies offer a blueprint to help ensure the investment in these programs delivers real value for the business and for your people.
Sitting across the table in an office in central Manhattan, a top financial advisor with one of the world’s largest wealth management firms didn’t mince words: “The investment business is dead. I want to be my clients’ life coach and personal CFO.”
It was a provocation, but one that gets at the heart of the epochal shift happening in wealth management. For the affluent and high net worth segments, what was formerly a transactional business rooted in investment tips is rapidly shifting to an advisory business rooted in planning for a life well-lived.
The stakes are well understood: firms that can make this shift at scale faster and better than their peers will emerge as winners in a once-in-a-lifetime $84.4-trillion intergenerational wealth transfer. Those who can’t make the shift will be forced to compete with increasingly capable, low-cost transactional platforms.
Having different conversations
At the heart of the transition is equipping financial advisors with the skills, technology and resources to have different conversations with their clients.
"The top advisors are doing something totally different," shared one manager. "No one wants your opinion on "which stocks should I buy right now?" Instead, success increasingly hinges on an ability to execute four categories of conversation – which tend to be progressively less comfortable for advisors:
Conversation 1: Help clients articulate financial goals
e.g. "I want to retire in 30 years with a $200k annual income" – and then develop a plan to reach those goals that leverages the full balance sheet – cash management, investments, and debt. In almost all firms, these conversations are supported by planning tools that advisors have access to but the comfort level with discussing cash management and debt is often not as high as with investments.
01
Conversation 2: Surface potential derailers
e.g. "what if you are incapacitated and unable to work?" – and help mitigate them by using insurance and other risk management tools. These conversations can be risky themselves. As one executive struggling to get advisor uptake on insurance put it: "advisors often don’t want to get caught in a conversation that creates more fear than hope."
Estate planning, tax, and financial literacy skills for the next generation. Beyond the unique expertise required to navigate these areas, these conversations can be infused with inter-family tension, especially when a prized asset like a cottage hangs in the balance. No client wants the transfer of their wealth to result in rifts amongst their children. As a result, advisors are sometimes hesitant to insert themselves into what feels like a fraught discussion.
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Conversation 4: How to lead a life well lived
The best advisors provide access to expertise and experiences that support clients in living long, meaningful, healthy lives that allow them to enjoy the benefits of their financial freedom.
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Taking stock of the list above can be overwhelming. “What is most different from three years ago,” shared one advisor, “is the amount of things you need to know – from planning, to asset management, legal, mortgages, insurance, and so on.” And sitting above the array of new technical and product expertise is a heightened level of conversational skills required to build client relationships in which individuals feel safe to discuss highly personal matters – hopes and fears that they often have not shared even with their family or close friends.
Better conversations at scale
In every wealth management organization, there are high performing advisor teams already having these conversations with their clients. The challenge is doing it consistently and at scale. Even planning conversations, the first and most straightforward of the four categories above, are not yet happening with consistency. As of 2023, JD Power reports that only 57% of full-service wealth management clients say they have a financial plan in place. So how do we scale excellence? Our experience points to three key leverage points for seizing the opportunity:
01.
Level up field coaching to both role model the new kinds of conversations we want advisors to be having with their clients, and to surface and overcome barriers to the adoption of new products and technology.
02.
Equip advisors with the leadership skills to manage bigger teams.
03.
Become exceptional matchmakers to team up advisors with complimentary businesses and skill sets.
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We’ve put these ideas in a handy one-page document you can take to go.
LEVELING UP FIELD COACHING – FROM DASHBOARDS TO BEHAVIOR CHANGE
Just as client conversations are shifting from transactional to advisory, so too must internal coaching. In their conversations with advisors, field managers are the critical role model for the types of curious, developmental conversations we want advisors to have with clients.
Historically, field coaching has been dashboard driven – focused on identifying and rewarding high performers and highlighting areas of under-performance to those lagging. As advisors are asked to have new and more uncomfortable conversations with clients that touch on planning for death or disability, surfacing hopes and fears, and shaping legacy – simply highlighting metrics and asking for ‘more’ is not sufficient.
Similarly, driving technology adoption at scale in wealth management is not like rolling out a new, mandatory operating model at McDonald’s. As one consultant put it: “this is an incentive-based business, not a rules-based business.” Field leadership plays a crucial role in helping advisors see the value in new technology and understanding the role it can play in enabling their success, and that of their clients.
To drive new conversations and speed adoption of new technology, field managers need the coaching tools to go beyond dashboard metrics to get at the underlying drivers and blocks of behavior change.
This requires equipping field managers with:
Strong relationship building skills – in the high autonomy environment of wealth management, the strength of the relationship determines the level of influence.
A deeper understanding of what drives behavior change (or resistance) – managers need to have a mental model of where resistance comes from and how to overcome it. This is what allows them to be curious rather than judgmental in the face of push-back and dig deep to understand the block they need to remove to change behavior.
Exceptional questioning, listening and curiosity skills – finally, helping field leaders strengthen their ability to have discovery conversations that seek to understand advisors’ hopes and fears rather than ‘objection handle’ their concerns. Again, this provides role modeling for the types of client conversations we aspire to have.
In our experience, building these skills is best accomplished by identifying an initial cadre of field managers who have both the interest and capacity to become stronger coaches – and investing disproportionately in their development. The results driven by this group can serve as a strong incentive for other managers, and the individuals targeted can serve as internal champions. For example, in one organization we work with, 17 branch managers were nominated by their regional directors to receive extra training and 1:1 support from a master coach for a 12-month period.
EQUIPPING ADVISORS TO LEAD BIGGER TEAMS
A survey of the conversations advisors are being asked to navigate makes it clear that no one has the skills to do it alone. World-class advisory is a team sport and organizations need to support advisors in building larger teams with a diverse range of expertise that cuts across debt, insurance, estate planning and more – with the client service, risk, and back-office functions to support it all running smoothly.
“Advisors all want a team – but they don’t want to manage a team.”
From the advisors’ perspective, downward pressure on fees means they need bigger teams to serve more clients in order to make the same compensation. And bigger practices are more highly valued when the time comes for an advisor to sell their business down the road. It seems like a win-win. And yet, as a seasoned coach to financial advisors put it, “advisors all want a team – but they don’t want to manage a team.” Most advisors pride themselves on their subject-matter expertise and their relationship and selling skills. Managing a team and dealing with the administrative burden from growing headcount is rarely aligned with their areas of core competence. And while some of these responsibilities can be delegated to an office manager, ultimately the leader is responsible for building a compelling vision and team culture that attracts and retains top talent.
More consistent success with creating bigger teams requires that organizations help advisors build people leadership skills. High performing advisors will not get committed to doing things they don’t feel competent at. Training for advisors must go beyond product, sales and client service skills to encompass setting them up for success with ever-growing teams.
BECOMING EXPERT MATCHMAKERS TO TEAM UP ADVISORS
Finally, beyond equipping individual advisors to grow their teams, firms must become experts at developing a repeatable model for combining the practices of individual advisors into teams with multiple advisors.
“Advisors with different backgrounds and skills produce the best performance when teamed up, but those differences can also produce tremendous friction.”
Research by McKinsey has shown conclusively that “team-based wealth management advisors outperform sole practitioners on almost every metric.” Specifically, teams in which the advisors bring a diversity of skills and backgrounds produce the best advisor team performance.
Beyond performance, teaming up advisors also provides more redundancy, allowing advisors to live more balanced lives, and aids in succession planning – a critical priority as a generational shift occurs over the coming 10-15 years.
Accessing these benefits is easier said than done. Advisors with different backgrounds and skills produce the best performance when teamed up, but those differences can also produce tremendous friction and lead to combustion that is both costly and demotivating.
To access the advantages of team performance, wealth management organizations need to bring science to the art of matchmaking to achieve a higher hit rate and fewer blow-ups. This requires:
Using psychometric data, not just business data, to identify strong teams – two practices may look like an obvious match based on their client lists but be unworkable due to the personalities of the advisors. Using psychometric tools gives organizations a clearer, data-driven view of whose distinct styles will be complimentary vs. combustible.
Having tough interpersonal conversations up front – using the same psychometric data, organizations can increase eventual success rates by having tough, data-driven conversations up-front that surface and plan for likely sources of conflict based on each advisor’s unique style.
Building the skill of collaboration – collaborating with someone different than you is a learnable skill that can be improved with practice. Providing advisors with up-front models for working through conflict and effectively working together can head off potential derailers down the road.
There has never been a moment of so much opportunity and risk in the wealth management industry. The firms who can pair a team-based structure with high quality field coaching and technology that enables advisors to confidently broaden the conversations they have with clients are those who stand to gain from volatility and win the hearts, minds, and wallets of the next generation.
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About the authors
Dane Jensen
Dane is the CEO of Third Factor, an acclaimed speaker, instructor at the University of North Carolina, and a regular contributor to Harvard Business Review. Learn more
Garry Watanabe
Garry Watanabe is an expert on coaching and performance psychology with a wealth of experience working under the peak of pressure in both business and sport. Learn more
Roughly one quarter of organizations say their new manager training programs are extremely or highly successful, but an equal number report their programs as only slightly successful or not successful at all.
Key reasons for investing in training for new managers include better individual performance (85%), continuity of organizational culture and values (69%), and better team performance (62%).
Top focus areas for new manager training include communication skills (93%), providing feedback (92%), and performance management (91%).
91% say their new managers just don’t have enough time to invest in development programs.
Third Factor has partnered with the Association for Talent Development (ATD) on exciting new research that reveals how organizations approach training for new managers. The report draws on a sample of 287 organizations seeks to understand why organizations do or don’t invest in training for new managers, how new manager training is approached, and the common trends in the most successful new manager development programs.
In today’s rapidly evolving business landscape, the importance of new manager training is highlighted by a notable statistic: 70% of organizations have a development program for new managers, and among those without, 54% plan to introduce one within the next two years. This trend underscores a growing recognition of the crucial role new managers play in organizational success. However, transitioning from an individual contributor to a managerial role is a journey filled with challenges. Managers must not only manage tasks but also lead people, a shift that requires a fundamentally different skill set and mindset.
Successful new manager training programs can be hard to come by
While about a quarter of organizations consider their programs extremely or highly successful, another quarter view them as only slightly or not at all successful. This suggests a broad spectrum in the effectiveness of such programs across different organizations, highlighting the need for tailored approaches and continuous improvement in managerial training practices. It underscores the importance of not just having a training program in place, but also ensuring its relevance, effectiveness, and alignment with organizational goals.
The good news is that the report shows 78% of organizations actively measure the success of these programs. The most common method used is assessing participant satisfaction. However, high-performing organizations often go further by evaluating long-term impacts such as the retention rate of managers and their contribution to organizational performance. This approach underscores the importance of not only implementing development programs but also rigorously assessing their outcomes to ensure they meet organizational goals and contribute to long-term success.
Performance and culture are the most desired outcomes
When developing training programs for new managers, organizations are unsurprisingly focused on performance – but the question of whose performance is most important raised our eyebrows.
While 85% of organizations want their new manager development programs to enhance individual performance, only 62% include team performance in their goals. While enhancing a manager’s skills is essential, it’s crucial to recognize that a manager’s success is inherently tied to their team’s performance. Focusing solely on individual managerial skills without equally emphasizing team leadership and development can create a disconnect. This approach may lead to managers who excel individually but struggle to foster a high-performing team, ultimately impacting the broader organizational effectiveness.
Fortunately, continuity of organizational culture and values is also a top outcome for new manager development. Some 69% of organizations rely on new manager development programs to ensure that leadership is aligned with the core principles of the organization. This alignment helps in maintaining a consistent organizational ethos, which is essential for long-term success and identity.
The most important skill for new managers? Communication.
The skill new manager training programs focus on above all others is communication, with 93% of organizations prioritizing this in their development programs.
In our 3×4 Coaching program, we teach that coaches use four key communication skills to develop their people: questioning, active listening, feedback, and confronting. Feedback also made the list of skills, with 92% of new manager development programs dedicating time to giving people information about their performance.
While performance management (91%) is another top focus area, the communication skill of confronting didn’t make the list. Questioning, listening and feedback are useful and necessary skills, but aren’t always the best tools when a valued performer needs to make a non-optional change to their behaviour.
Teaching new managers skills for managing challenging conversations is a worthwhile investment. Giving younger leaders the opportunity to learn and practice the skill means they will be better prepared to confront problem behaviors when they reach a more senior position. By thinking of communication skills for new managers as an investment in the future, organizations can strengthen their entire leadership pipeline.
Finding time is a top challenge in training new managers
The primary challenge in this developmental journey, as reported by 91% of organizations, is the lack of time for new managers to participate in training programs. It’s no secret that new managers are expected to hit the ground running, often having been selected for their aptitude for the role and prior success in a non-leadership role.
The rub is that the bias toward execution, rather than leadership, is actually counterproductive. While managers at this level need to be adept at leading their people while being responsible for their own work product, putting emphasis on the former in the earliest days could set them up for a career-long belief that their individual productivity is more important than that of their team. This misprioritization can also lead to a situation where managers are underprepared for their roles. Moreover, the pressure of managing operational tasks while also trying to develop people management skills can lead to burnout and decreased effectiveness.
Just as new managers need to skillfully coach their people in the flow of getting things done, their own leadership training needs to happen in the flow of work. Training programs need to be flexible and easily integrated into the daily workflow of new managers. This might involve bite-sized learning modules, on-the-job training, and leveraging technology for accessible and engaging learning experiences. Additionally, creating a culture of continuous learning and providing ongoing support and resources can help new managers adapt to their roles more effectively and efficiently.
Equipping new managers for success
The research from Third Factor and the Association for Talent Development presents a valuable opportunity for improvement in new manager training. This study offers a roadmap for organizations to refine their leadership development strategies, emphasizing the integration of training into daily work, a comprehensive focus on communication skills, and prioritizing team success alongside individual performance. By embracing these insights, organizations can significantly enhance their outcomes, nurturing leaders who are well-equipped to meet the challenges of the modern business world.
You can download the full report from the ATD website.
At its heart, PJ is an AI chat bot developed by Third Factor and The Modern Office Company. With a license, you can ask PJ questions and discuss just about anything related to coaching. PJ has been trained in the 3×4 Coaching model and can help you use questions, listening, feedback and confronting to build clarity, improve competence or give recognition.
What really excites us is that PJ is a true coach. Unlike other chat bots that jump straight into giving advice, PJ first listens to understand and asks clarifying questions to get to the heart of every issue. A conversation with PJ flows like a conversation with a real coach – acknowledging the very real challenges of leadership, building clarity about what’s really going on, and generating practical strategies for applying the coaching skills.
Chris joins us from the Smith School of Business at Queen’s University, where he managed client relationships for customized executive education programs – many of which were delivered in partnership with Third Factor. Before Queen’s, Chris oversaw strategic partnerships at EF Education First, a private education firm focused on developing professionals through educational travel.
Chris holds a Bachelor’s degree from the University of Toronto, and a certificate in Adult Learning & Development from the Ontario Institute of Studies in Education (OISE) at UofT.
Chris has shown a true passion for helping organizations develop their workforce for the future and working with thought-leaders to develop innovative solutions that drive lasting change. We’re excited to see him continue to build on his success with Third Factor. 
