5 Signs It’s the Perfect Time for Executive Coaching

Harvard Business Review recently posted an article “4 Signs an Executive Isn’t Ready for Coaching.”  While not every executive needs a coach, this practice can be transformational and help a leader ascend to a higher level of performance.  With over thirty years of international coaching experience, Career Partners International (CPI) provides trusted advisors to thousands of executives.  Our team highlights five excellent opportunities to partner with an executive coach:

  1. Organizational Changes

Change can disrupt the status quo.  Even senior leadership teams that have previously worked well together can be thrown into disarray when impacted by organizational change. If there are already areas of dysfunction within the team, then change can exacerbate it, making it even more difficult to achieve goals and meet deadlines.

Expert coach led executive coaching and senior team facilitation can help leaders assess where they are, acknowledge and address their personal barriers, constructively surface and address individual or group conflicts, and help them to develop team cohesion, whilst re-embedding commitment to shared objectives.

On a practical level it can also have an immediate impact by raising the skills and competencies of team members and helping them to identify and address issues that are impacting the effectiveness of the change journey.

-Lynne Hardman, CEO, Working Transitions, London, UK

  1. Improve Interpersonal Skills

 CEOs have long benefited from working with external executive coaches. Jack Welch was an early example of a success story in terms of making incredible changes to his demeanor as well as his effectiveness as a leader, changes that were the direct result of taking advantage of executive coaches back in the day when he wanted to transition away from his reputation as “neutron-Jack.”

CEOs are often reluctant to show their vulnerability, let alone their weaknesses to anyone in the company, and understandably find it difficult to discuss these areas internally.  It is rare for CEOs to receive ongoing necessary constructive feedback about their performance as a leader. Who is going to volunteer to provide it? Sure, they are typically immersed in data regarding bottom-line results, but what about day-to-day positive reinforcement and timely feedback about potential dysfunctional behavior?

That’s where an executive coach comes in. Ideally, we recommend matching a CEO with a seasoned external resource who can establish a supportive relationship. In addition to being available as a neutral third party to challenge the CEO’s thinking, the coach can solicit feedback on the CEO’s behalf and deliver it in a way that can be heard and reacted to.

– Joan Caruso, Managing Director, The Ayers Group, New York, USA

  1. Stepping into a New Role

 Taking the leap into a new position in the C-suite requires a different set of skills than most have used in the past.  As in sports, executives can improve their performance by having a coach. Coaches can lead executives to their state of excellence. Coaching helps professionals to enhance their self-awareness as well as to develop competencies that improve their performance and increase employability.

Following a promotion, new executives may experience doubt or conflicting plans of action.  A mobilizing factor to seek a qualified coach is the need to stay steady and make progress. A coach also helps when professionals are in crisis regarding their jobs, in doubt about what to do, or even when they intend to implement projects for which they lack experience.

-José Augusto Minarelli, CEO, Lens & Minarelli, Career Partners International Brazil

  1. Seeking Alternative Viewpoints

An openness to, and acceptance of coaching is one of the most valuable traits for an executive to bring to the table.  Understanding that there is always room to improve oneself has led to extremely impactful coaching engagements.  An experienced coach can provide viewpoints that may not be readily available within an organization.  Once a leader has acknowledged they may be operating with blind spots, opportunities to identify weaknesses and enhance strengths present themselves.

A coach can help foster a leader’s natural curiosity as well, providing new perspectives and creative ideas to help the organization excel.  Coaches may be able to provide suggestions for unique literature or other sources of information on leadership and organizations.  A coach’s viewpoint, through direct interaction with the executive and communications with their team, can provide an unbiased perspective and highlight new opportunities for growth.

-Margarete Dupere and David Brendel, Executive Coaches at Camden Consulting, Boston, USA

  1. Professional & Personal Development

Many executives have already experienced the value of having a coach and seek out this benefit throughout their careers.  Having a professional coach keeps them at the top of their game and allows them to explore new avenues of development.  They recognize the importance self-awareness and self-development have on their success as a leader.  By being open to observation, reflection, and committing to an action plan they gain an elevated perspective on issues within the organization.  A trusted partner is a key tool in this executive’s kit, one they know elevates their performance personally and professionally.

-Nance MacLeod, Executive Coach, Career Compass, Toronto, Canada

While executive coaching isn’t a silver bullet, a trusted advisor can often help unlock potential to go from good to great.  As Joan Caruso says, “My guess is that if your CEO golfs, he or she has a golf pro, if they play tennis they have a tennis pro, so why not have a leadership pro in the form of an executive coach?”  For over 30 years, CPI has helped organizations and individuals realize their full potential and sharpen their competitive edge.

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Audit Committee Members Share Tips for Better Management Presentations and Engagement

While wearing a lot of oversight hats, the audit committee often interfaces with different members of the management team. It may be challenging for those members of management to present to the board, especially since some of these individuals may only have a handful of opportunities to do so each year. And there is a lot of room for improvement in those presentations, according to directors.

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Out of eight management roles, directors rank the presentation skills of only two as excellent, the chief financial officer and general counsel. It’s critical that executives hone their presentation style, polish their overall executive presence, and provide helpful and manageable pre-read materials. Doing so will impact the audit committee’s effectiveness and the audit committee’s impression of both the presenters and the functions they lead.

We synthesized feedback from directors about how senior management can better engage with the audit committee. Here are five tips they gave for those members of management to succeed.

  1. Invest in your relationships. Schedule a meeting with the audit committee chair to get his or her impression of your role, its value to the company, and your presentation skills. As you further develop your relationship, you should continue to ask for feedback and coaching on how to improve. By forming relationships, you become a valuable asset—one that the audit committee can look to for expertise and help in what are often complex areas that may present unpopular messages. Also be sure to talk to other members of the executive team. They can provide insight into director personalities and dynamics. They might also be in the room when presenting and could have some good tips. 
  2. Know your audience. Audit committees (and boards) are different than other audiences. It’s important to balance the right level of detail, insight, and impact without being too granular. Be sure to effectively convey risks and concerns in terms directors can relate to. Audit committees generally have some sort of financial reporting background, so they’re comfortable with related topics. If, however, you are presenting on something more technical (like cybersecurity or emerging technology risks), it’s important to find the balance of educating the audit committee and achieving the objectives you have for your presentation. In general, the audit committee is looking for insights. That might be trends or themes, or concerns or challenges.
  3. Be thoughtful when preparing pre-read materials. Make sure any materials sent ahead of the meeting are easily digestible, especially if there are important messages to relay or critical decisions that will need to be made. If pre-read materials are not clear or are cumbersome to get through, the committee could misinterpret the message or focus on the wrong areas. If a presentation requires a regular cadence, it is important to develop a dashboard or some consistent reporting mechanism that will make it easy for audit committee members to monitor the activity. It is also important to work closely with the chair to develop reporting formats that are fit for their purpose. If you are presenting a new topic, like a tax matter or an investigation update, you will want to think about how audit committee members might read that data when you’re not there to walk them through it. It’s important not to send information that could be interpreted incorrectly. You want to provide enough detail to give them the background but save some insights for the in-person discussion. 
  4. Be strategic with your time. It should be clear that once the management team is in the room, the audit committee is ready to hand the reigns over to that team to lead the discussion. Pre-read materials should have had an executive summary that highlights what will be discussed—and the pre-read should not be repeated. Instead, the key risks and critical matters that require discussion and decisions at the meeting should be highlighted. The main objectives should be communicated up front, and you summarize and reinforce key points throughout. Be prepared for any questions (and reactions), as well as for any changes in the meeting direction.
  5. Focus on your message. You should scrap the jargon, know your material, and be engaged with your audience. Presenting is important, but make sure you are also asking the committee for questions and commentary. The focus here should be that the committee hears and understands management’s messages.

If the person presenting is a senior management executive like the chief information officer, chief audit executive, or head of tax, he or she may only end up presenting to the audit committee once or maybe a few times a year. When that person does present,  they’ll want to make sure those interactions are helpful and effective. Suggesting these tips to your senior management team will help your audit committee get the information it needs. These tips will also help give the management pipeline a chance to share ideas and interact with people who are deeply invested in ensuring that the entire company succeed.

For more on how to management should interact with the board, read our Executive Coaching series.

Executive Coaching is a Leader’s Secret Weapon

Successful organizations recognize the advantage of ongoing development for leaders and the benefits of providing situational coaching.  Career Partners International (CPI) helps leaders achieve their goals with an emphasis on providing meaningful executive coaching services that meet the unique circumstances and needs of the organization.  CPI Executive Coaching participants report a 95% satisfaction rate, resulting in highly engaged executives and real-world improvements.

CPI offers Executive Coaching across the globe in virtually all industries.  Coaches possess extensive experience, training, and education employed to facilitate each coaching engagement.  World-class coaches utilize a variety of assessments including 360 reviews, observation, and direct feedback to support each participant.

“When I was being coached, I had only been with the company for 8 months. The company was undergoing organizational and leadership changes. My challenges included dealing with evolution and ambiguity, daily business issues, and learning a totally new industry. There were new faces and new products, as well as cultural differences in the US and Asia (at that time were quite different). My CPI coach was able to point out culture issues for me to pay attention to and worked with me to analyze the feedback reports and focus on areas for improvement.”  –VP of Marketing

Forward thinking organizations embrace coaching as a core component of their leadership development strategy aimed at exceeding business goals.  Beyond the personal improvements that come with a successful coaching engagement is the value this practice brings to the organization.  Employees of coached executives show higher levels of engagement and improved work performance.  Hewitt reports highly engaged firms have a total shareholder return 19% higher than average, while low engagement results in a 44% decrease in returns.  Executive coaching results in more effective leadership, increased workforce engagement, and improved returns.

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Resilience: Building an Essential Corporate Capacity

Editor’s Note: This is the first in a series exploring the board’s role in corporate resilience.

Resilient companies produce impressive results. They have shown positive earnings and sales growth during recessionary years, improved their corporate image by effective strategic responses to natural disasters, raised dividends for several consecutive decades, and won back market share against low cost and online competitors. They also invest wisely. By one estimate, “…for every dollar invested in resilience before a disaster, there is a four-dollar savings in the cost of recovery response in the wake of the crisis.”

The examples mentioned above support the claim that organizational resilience is an important concept for corporate boards and senior executives, but companies often don’t include it in executive planning exercises. Instead, many mistakenly categorize resilience as disaster recovery plans or business continuity plans, leaving the details to mid-level operations.

Others see resilience as a part of corporate succession planning, risk management, or other programs that are important. However, in today’s dynamic, disruptive operating environments, organizational resilience requires that companies integrate features that others’ plans and programs lack.

To succeed, leadership, supported by the board, must resource and incent resilience into the infrastructure and the culture of the company. Similar to other cultural paradigms like workplace safety, resilience matures and becomes integral to people, processes and technology. Suggestions for doing so follow.

What is resilience?

Most importantly, resilience involves strategy. It’s not just a plan. It includes two critical concepts: organizational capacity and the ability to “adapt and grow from a disruptive experience.”

Judith Rodin, former president of the Rockefeller Foundation, includes the following concepts in an excellent definition of resilience made in a speech from 2014:

“Resilience is the capacity of any entity—an individual, a community, an organization, or a natural system—to prepare for disruptions, to recover from shocks and stresses, and then to adapt and grow from a disruptive experience.”

In sum: Be prepared to bounce forward better.

Effective organizational resilience requires strategy that spans vertically and horizontally across the organization. “Resiliency requires alignment in all levels of management and all lines of business,” said Israel Martinez, CEO of Axon Global, where his team is charged with cyber risk and resilience strategy for the Japanese government and private sector leadership as they prepare for the Tokyo 2020 Summer Olympic Games. “It integrates risk; governance; policies; principles; partners such as supply chain; technology and most of all a culture.”

At maturity, resilience represents value as an organizational capacity—a core characteristic of the corporation. At this stage, it requires a continuous improvement process so that it remains effective as a core value. The distinguished venture capitalist Ray A. Rothrock notes that resilience needs to be treated as a “positive business asset” and resourced accordingly. Demonstrating effectiveness in a company’s resilience allows leadership to innovate confidently knowing that calculated risk mitigation strategies are in place. This impacts valuation and reputation, which are core to boardroom concerns.

The mantra “adapt and grow” requires actions that are different from yesterday’s. Many approaches to resilience focus on returning to the status quo ante, such as disaster recovery, but this isn’t enough. Today’s definition of organizational resilience is closer to Nassim  N. Taleb’s notion of being “antifragile.” Taleb, distinguished professor of risk engineering at New York University’s Polytechnic Institute, is the famous author who introduced us to antifragile resilience characteristics that insulate or even benefit from “black swan” risks in his 2014 book Antifragile: Things that Gain from Disorder (Incerto). His concept builds on principles such as “…things [that] benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty.” Resilience strategy should incorporate similar concepts and principles such as the ability to recognize disruptions, mitigate shocks, and adapt to accelerating change with agility.

Preparedness is the principal muscle that implements resilience. Unexercised, resilience’s value to the corporation diminishes. Over time, preparedness provides a higher return on investment (ROI) than reactive approaches, and its value is multiplied when it includes partners outside of the company. Therefore, to maximize outcomes in crises, the preparedness principle requires leadership to incentivize proactive and collective exercises with communities, governments, and stakeholders at all levels.

As former New York City Mayor Rudolph W. Giuliani notes in Leadership, it wasn’t the plan that helped New York recover after 9/11—it was the planning processes, and the pre-crisis exercising of the plans. Within this framework, preparedness drives the effectiveness of resilience. Resilience cannot be effective as a static concept. It requires practice with action. Preparedness exercises feed the continuous improvement process that must anticipate a dynamic environment, from accelerating technologies, to socio-cultural factors, to changing workforces, expanding cyberattack surfaces, and climate change.

As with other boardroom enterprise initiatives, resilience requires cultural considerations across the enterprise. Resilience depends on understanding growing interdependencies within and among societies—such as links among power, telecommunications, transportation, and water infrastructures. These will become more important as we build smarter, more connected cities and societies.

Getting to good

Enterprise Risk Management (ERM) integrates across core functions such as corporate succession planning, continuity of operations, supply chain management, and cybersecurity. But resilient corporations demand more. Daniel Newman of Broadsuite Media Group points out that companies must build both business resilience and cultural resilience. The former depends on technology and systems, while the latter is “the ability to maintain composure and an effective business image regardless of the situation.” In Rothrock’s words, “Resilience is about standing up to do business while effectively fighting back and winning.”

Figure 1. Conceptual diagram for measuring vulnerability and resilience (expanded from KANG Shian Chin, et. al. (2014); based on Richards, Ross, Shah, & Hastings, 2009. Click image to review original.)

As shown in Figure 1, components of resilience, such as acceptable performance and extent of degradation, can be assigned measures of effectiveness (MOEs) and tracked. Within the company there may be several such curves—for sales, cybersecurity, backlogs, etc. But leadership also must define an overall measure of corporate performance. Proctor & Gamble Co., for example, has defined total shareholder return as their “measure of value.”

Metrics will be explored in more detail in a future installment of this series, but there is no silver bullet solution. A resilient culture is built on a foundation of ethics, principles, and governance, as well as compliance—not blind adherence to checklists, but a structure that assesses damage and prioritizes meaningful responses when things go wrong. Collectively the measures must promote continuous improvement and use stresses and shocks to strengthen the organization against operational impacts from cyberattacks and other challenges. Beyond predictive analyses, strategic foresight and scenario planning are important.

Building the capacity for resilience: the board’s role

Successful corporate directors are keen to build resilience. Only senior leadership, supported by the board, has the breadth of vision and the experience to address these issues comprehensively. Far more important than compliance checklists, the board members’ strategic impact on business and cultural resilience can help leadership build valuation through quality control incentives and measurements like MOE.

NACD’s Robyn Bew explains in the 2017 Report of the NACD Blue Ribbon Commission on Culture as a Corporate Asset what a resilient company culture looks like and roles the board can play. These will be explored in the remaining parts of this series, which will examine:

  • Why does resilience matter now more than ever?
  • How is resilience different from conventional approaches to ERM?
  • How can companies build resilient capacity and integrate it into corporate culture and practices? What does “good” look like?
  • What should the board’s role be? What questions should boards be asking?


Oversight of Workplace Dynamics: The Labor Model

Jim DeLoach

Jim DeLoach

The so-called war for talent has been waged and chronicled for so long that reference to it has become trite, but the battles continue in earnest. A top risk for many years, the conflict has become increasingly complex and even more competitive as demographics shift, new technological capabilities emerge, and the pool of needed talent falls short of demand. As these disruptions alter traditional labor models, today’s organizations are being forced to cope with a future that is looming large on the horizon.

Nearly 30 years ago, Irish author and philosopher Charles B. Handy introduced his idea of the “shamrock organization.” Just as the most common clover leaf has three leaves, this organization consists of three components:

  1. A professional core of well-qualified, hard-to-replace, and highly compensated leaders, managers, and technicians with the skills underlying the entity’s core competencies and essential to its continued growth;
  2. A contractual fringe of self-employed individuals and specialized organizations that provide essential capabilities to perform work on a project-by-project or outsourced basis and are compensated on results; and
  3. A contingent workforce of flexible, part-time workers whose employment is temporary and scaled up and down to address peak staffing periods arising from events and developments, such as an enterprise resource planning (ERP) system upgrade, unusual merger and acquisition (M&A) activity, major business process changes, or dramatic shifts in demand for company products and services.

According to Handy’s The Age of Unreason (Harvard Business School Press, 1989), in effect, the shamrock organization is a “core of essential executives and workers supported by outside contractors and part-time help.”

Over the past 30 years, demographic, social, and technological market forces have shaped the components of Handy’s model in interesting ways. Handy asserts that, while this labor model “has existed in embryo … what is different [now] … is scale.” Whereas the second and third leaves of the shamrock may have been smaller in the past, they are much larger today—and are still growing. They will continue to grow as the risk of disruption increases, customer loyalty grows fleeting, workplace demographics continue to shift, the service—or “gig”—economy expands, and the war for fit-for-purpose talent intensifies. It’s an omnipresent trend toward a talent ecosystem that warrants director attention.

As the world of work changes, the board has a role in ensuring that management is making the appropriate adjustments. Below, we pose several questions germane to board oversight, with emphasis on two of the three dimensions of the evolving labor model: skills and scale (our next blog discusses technology, which is the third dimension):

  1. Do we have an eye on the demographic, social, and technological trends affecting the labor model? Shifts in demographics, the availability of skilled talent, and the effect of technology on work, jobs, wages, and society at large should be assessed continuously over time. The board should be briefed periodically on this intelligence.
  2. Does the board utilize sources other than management for insights about market trends affecting the labor model? Relying on multiple intelligence sources is a smart play in all aspects of a board’s oversight, particularly this one.
  3. Given the evolving market trends, do we have processes in place to evaluate their implications to our labor model? Has management thought about separating noncore activities from the essential tasks of operating the business with the objective of improving focus on mission-critical activities? What are the benefits and costs to the organization if any or all of these noncore tasks and functions were performed by external workers or firms? If the business case dictates action, what specific changes should be made to the labor model (e.g., how, why, and within what time frame must the enterprise transform it)?
  4. Do we consider the economics, opportunities, and risks associated with outsourcing noncore activities? Providers of managed business services and business process as a service can offer options, particularly if the activities in question are not associated with strategic capabilities underlying the entity’s core competencies and the provider can perform the activities better at lower cost.
  5. Have we considered applying all three elements of the shamrock model? Is management positioned to hire, develop, and manage the labor pool in each shamrock category in an optimal manner? In the digital age, management can focus on understanding and harnessing technology’s role in supporting and shaping each pool considering its unique challenges.
  6. Do we have the right human resources partner? As management plans to implement process improvements and addresses the resource needs to support key initiatives, important talent management questions arise. What specific forms of expertise are needed For instance, an ERP implementation requires finance professionals with technology and change management skills, and a digital transformation initiative requires data scientists. How do we resource these efforts? Does a traditional outsourcing relationship meet the need? Do we need help in deploying individuals and firms on the contractual fringe or on a contingency basis? As management addresses these and other questions in building the enterprise’s talent ecosystem, management may unleash significant value through an external partner who offers new capabilities and solutions through deep knowledge of the company’s people, processes, technology, and culture.

Directors should be cognizant of changing workplace dynamics and how management’s handling of them can have significant implications for the organization’s long-term viability. The economic drivers, technological advancements, and shifting generational expectations affecting the traditional staffing model are forcing companies to rethink how they are approaching staffing and talent development. Boards can play a catalytic role in stimulating this process.

Jim DeLoach is managing director of Protiviti. 

Report Finds Modest Increases in Director Pay, Notes Implications of Tax Law

Compensation for directors continues its slow and steady upward creep, but not everything is expected to be business as usual over the next couple of years.

The 2017–2018 Director Compensation Report—the 19th annual report on board pay authored by the compensation consulting firm Pearl Meyer and published by the National Association of Corporate Directors (NACD)—finds small pay increases and notable changes in the operating environment that could have a trickle-down effect on director pay in the near future.

Growth Across All Company Sizes

The report’s authors analyzed director pay information found in proxy statements or other financial disclosures filed with the U.S. Securities and Exchange Commission for fiscal years ending between Feb. 1, 2016, and Jan. 31, 2017. In all, Pearl Meyer analyzed data from 1,400 companies across 24 industries.

Across all companies included in the analysis, median director pay increased a modest 4 percent over the prior reporting year. Looking at companies by market capitalization, the smallest increases went to directors of micro-sized companies (those with revenues ranging from $50 million to $500 million), where median pay grew just 2 percent, from $120,286 to $123,230 (see Figure 1).

Small and medium-sized companies tied for the largest year-over-year median pay increases at 6 percent. That brought director pay up to $166,278 at small companies (those with revenues between $500 million and $1 billion), and to $192,250 at medium- sized ones (those with revenues between $1 billion and $2.5 billion). The low- to mid-single-digit increases in median director pay have been fairly consistent over the past six years, according to the report.

Committee Service and Pay

Most companies continue to provide additional compensation to directors for their committee membership. As is consistent with previous years’ data, members of the audit committee—which has a median of seven meetings annually, the highest of any committee—garner more than members of any other committee, no matter the company size (see Figure 2).

Fees paid to audit committee members could increase in the next couple of years, according to the report. The committee’s already high workload could increase as companies navigate the financial ramifications of the new tax law.

The New Tax Law and a Changing Environment

The Tax Cuts and Jobs Act of 2017, introduced by congressional Republicans late last year and signed into law by President Donald J. Trump, is having wide-ranging effects on businesses. Board pay programs are likely to change as a result of the law, the report states.

This is particularly true when it comes to the practice of deferring director fees. Deferral of compensation that gets paid out in the form of director fees has, over time, become something of a signal of good governance. Delaying payouts is seen as helping align directors’ interests with the long-term interests of shareholders. The practice was meant to provide potential tax relief to directors who were, at the time of their board service, employed full time: by deferring their director pay until after retirement, they could presumably take advantage of lower post-retirement tax rates.

Enter the new tax law. Under the law, personal income taxes will decrease for upper-income levels. That means deferring director fees until later to enjoy lower tax rates on those fees may be less enticing.

For more information about the latest director compensation practices, read the full article about the compensation report in NACD Directorship magazine. The full 2017–2018 Director Compensation Report is available to NACD members at NACDonline.org/directorcomp. Information about joining NACD is available here. A supplemental publication, Director Compensation: Summary Statistics, provides additional compensation data and is available at PearlMeyer.com

Career Transition Participants Thrive With High-Touch Coaching

Career Partners International (CPI) is pleased to announce phenomenal outplacement participant satisfaction continues into 2018.  With a Net Promoter Score (NPS) of +78, CPI proves that a high touch approach to outplacement services yields the best results for participants and for clients.  NPS is a globally recognized, customer satisfaction benchmark that measures how likely a customer is to recommend the service to a friend.

As a global industry leader and trusted advisor for 30 years, Career Partners International maintains a people centered approach to career management along with a leading edge digital career portal. CPI provides comprehensive outplacement services in the strictest confidence with integrity, compassion, and respect for all individuals. These highly personalized programs ensure employees remain brand advocates, regardless of their career direction.

Much to my delight, there was incredible support offered by each member of the Career Partners International staff. I landed a wonderful job with a successful and growing company within three months!”   V. Geiman, Plant Manager

While other organizations offer an exclusively online delivery model, CPI still provides direct, individual participant support with an industry low coach to participant ratio of 30 to 1.  This unique approach allows coaches to focus on each participant’s needs.  With an industry leading average time to re-employment of 2.73 months, and 80% of participants landing at equal or greater compensation than their previous position, it’s no surprise that participants recommend CPI to others.

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