Consulting Rainmakers

This coach only gets paid when your sales go up

David Scott · Rambutan ·

David Scott is the Founder and Leader of Rambutan. This Consulting Rainmakers episode, hosted by Mikulas Zach, is about one idea, in David's words: This coach only gets paid when your sales go up.

Can a coaching or consulting firm tie its fees to client results?

David Scott: Yes. The client names the business improvement they want, such as higher sales or margin, and pays for the coaching only once that result is achieved.

In this conversation, David explains why a coach should sell outcomes instead of hours, what AI can and cannot do as a coach, and how frustration quietly impairs the way people think.

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About David Scott

David Scott ran Tesco superstores and worked in senior roles at Iceland Foods and Somerfield before he left food retail, partly to see more of his young family and partly because something about the consultancies his teams hired felt wrong: when their advice did not work, the client still paid and was told it was their own fault. He went on to found Instil and then Rambutan, which he has led for 18 years. Rambutan coaches CEOs and leadership teams and delivers training, and its coaching is tied to business results such as a 10% rise in sales or half a percent on net margin, with clients paying only when those results arrive. David is accredited with the International Coaching Federation and estimates he has held around 20,000 coaching conversations over 30 years. Through the Civility Saves Lives work, Rambutan is approaching 10,000 medical professionals trained in the UK.

Expect to learn why having a great product is only half the battle when you start out, how a coaching engagement is contracted and run, why good coaches do not give advice, why a session that ends after ten minutes can be the most valuable one, how to reflect on yourself without judgment, why poor behaviour in a hospital can cost lives, and much more…

David Scott: LinkedIn · Website

Chapters

  1. 0:00Cold open
  2. 0:33Welcome
  3. 0:44Leaving Tesco To Start His Own Firm
  4. 2:53Who Is Going To Buy It
  5. 3:52Coaching Paid Only On Results
  6. 5:57Can AI Replace A Coach
  7. 8:53How A Coaching Engagement Works
  8. 12:15What Younger David Did Not Understand
  9. 15:49Less Is More, The Dentist Story
  10. 19:28Self Reflection And Emotional Intelligence
  11. 22:03Civility Saves Lives
  12. 25:07Where To Find David Scott

Transcript

Machine transcript of the conversation between David Scott and Mikulas Zach, lightly cleaned. Spelling of names and terms may be off.

Mikulas Zach

Sitting down with me today is David Scott, the founder and leader at Rambutan. David, thank you for coming on today.

David Scott

It's my pleasure, Mikael. It's good to meet you.

Leaving Tesco To Start His Own Firm

Mikulas Zach

So you ran Tesco Superstores for close to six years and then you founded two firms back to back. when did you decide, David, that kind of the corporate track was was done for you and what made you ready to kind of start on your own?

David Scott

That's a good question. I'm not sure I was ready when I actually started. I think that came sometime after that. But what caused me to do it was I had a young family at the time. And certainly in the UK, food retail is a very, very hours demanding role. So I was sometimes leaving the house at six in the morning and not getting back and not seeing my youngest. I only had one child then. not seeing her at all for maybe four or five days on the bounce and I thought this is wrong. And then also as a senior person in retail we did spend a lot of money on consultancies and it really intrigued me how if the consultant gave us some advice and it didn't work we still had to pay and it was our fault. That just seems morally wrong as a model. So I just wanted to do something a bit different and get more time with my, I've now got three children, get more time with my one child at the time.

Mikulas Zach

I think you mentioned something really interesting at the at the start, which is that you didn't know that you were ready. And I think it's a problem that a lot of us have, and just humans in general, is that we wait for the perfect moment, but it never really arrives. so tell me how do you go about taking action on things and what would be your advice if there is someone that's kind of you know, on on the edge of the chair, thinking about making the big leap, the big decision. What would be your advice?

Who Is Going To Buy It

David Scott

So I think when I said I wasn't ready, I thought I would be a very good consultant and a very good coach. But I realized that's only half and it might not even be half of the battle. What you need to think about is where is my market? Who's going to buy this? what's it worth to them? What does it do for them? Not, I'm a great coach, can I come and see you? What does great coaching get you as a business leader if I'm coaching you? So it's that first period with me sitting there thinking, I'm great, so the phone will ring. You can't do that. You've got to get out there, get you a bit like yourself with your podcast. So the first six, eight months were very quiet. and I realized, well, I didn't have a plan to actually get contact with clients. that would be my biggest piece of advice if starting off. you got a product and do you know who's going to buy it?

Coaching Paid Only On Results

Mikulas Zach

so David, you currently do one on one coaching and also advise CEOs and leadership teams. what is kind of the biggest misconception that people have when you start working with them around leadership?

David Scott

biggest misconception. I don't know if there's a big misconception. think the thing that refreshes them the most in terms of they go, wow, really, David, that's interesting, is that rather than provide coaching and send a bill for coaching, what we do and what I do is work out what will improve in their business as a result of coaching. So rather than saying, do you want 10 coaching sessions? If you're saying, I don't know, do you want your sales to go up by 10 %? Do you want your... net margin to go up by 0.5 % and then what we do is we guarantee that so we say actually we will do some coaching but you'll only pay for the coaching when you get your 10 % or when you get your half percent on margin and people find that really refreshing so I guess that leads us to answer your question. The misconception is that you get coached and you sit down and you are coached and you learn some things and absolutely going sure there's a bit of that but actually what it really is about is you behaving in a way that gets you closer to your goals. So I guess that's the misconception that people have.

Mikulas Zach

Hmm. And I think this is really, really interesting because you giving what I understand is a guarantee of some sort makes you look like you can actually, you know, put yourself out there in a way where you understand that you will be able to help them and you actually believe it because a lot of people I think don't believe it that they can help other people. They just you know send the bill as you were saying earlier. so how do you look at AI in the work that you do? Because I know a lot of people can make the arguments that you now can have basically AI coach you very simply and give you the strategy and the decks if you just ask it about your situation. So have you also seen that with some of your clients?

Can AI Replace A Coach

David Scott

Definitely and I am a big fan to be honest I use AI myself to help me figure things out as long as you get your prompt really accurately and you tell it what you want to be coached in and tell it things like give me one question at a time and then respond to my answer rather than I'm a big fan but what it doesn't do and can't do and I don't know when the day will come that it will be able to do is it can't notice a flicker of an eye or a hand gesture to the mouth that a good coach will notice and then come back to the words you were saying at that point and say, tell me again about misconceptions, Nicholas, because that's interesting. And the coach will have spotted something in the body language demeanor, the way their eyes are moving and know how to hone in. So I think it's almost like being a skilled conversationalist in what is not being said. And I think AI at the moment needs something to be said. So I think that's the differentiator. But I'm not, I think it's brilliant. I think it's brilliant. And I think the main benefit to me is I think coaching in the way we do it, the people who would benefit the absolute most in society are the least likely to be able to afford it. So big corporate companies can afford to pay for coaching for their executives and deliver business results. But actually the average person on the street, to use an English term, can't afford it. And actually AI gives them an option there that's free. It's not perfect, but it's far, far better than no option. So I think that's the beauty of AI. And that's something we're looking at at Rambutan to say, can we do something with that so that we can encourage people to use it? it depends on your style, but it's a thinking partner. It challenges you. gets you to think about different alternatives that you haven't thought about. I think that's brilliant. Absolutely brilliant.

Mikulas Zach

Mm. Yeah, I think also there is like a very thin line when it comes to what AI should do and what it shouldn't do. Because you know, at the same time it can give you answers for basically anything, but then the question is, you know, how good are those answers and are they true? Because a lot of the times I I talk to it, I give it the prompt and the context, and then it tells me something that I know isn't true, so I ask it again and then it Tells me that, you know, I I so I'm sorry, Mikulas, but I I didn't know or you were right. so how do you usually kind of go when it comes to coaching people? What is kind of your your process? Do you have any frameworks around coaching people?

How A Coaching Engagement Works

David Scott

So we are all accredited coaches. So I'm accredited with the International Coaching Federation. So they have a framework of best practice, if you like. The main thing that we take from that is there'll always be a contracting session up front, like a chemistry contracting session. So I think it's really important that the coach and the coachee really feel that they can work together. So we do that free of charge because that allows us to not take the assignment as well because it's about the coach and the coachee agreeing. So always be that. And then the contracting bit will always be around some really stringent discussion around. what are the objectives we are working here? We absolutely clear together that these are the objectives. And then what are our rules of engagement? So, for example, confidentiality will be a big one. Bizarre because of your example of AI. one of our ground rules is probably going to be that we don't give advice. So as coaches, we do not advise or give answers. So we will challenge you to think so. We get all that set out in the first session so people really understand what the experience is. And then the format is basically start each session, remind ourselves of the objectives that we're working on, remind ourselves of the ground rules, pick a subject within those objectives, explore it, close down the coach. E then goes away and does some things before the next session to put some things into practice and brings back any learnings, reflections, challenges from that into the next session. So the next session starts with objectives, ground rules, and then how have you got on with the things we were talking about last time, Mikael Hauss. So that's how that's the general format. That can take the format of at its longest. sort of 12 months, maybe 10, 12 sessions over a 12 month period of about 90 minutes a session. But equally it could be really short because the person might have a very specific objective. So if their specific objective is, I've got my first ever presentation to the executive board and I want some help putting it together, well, that's not gonna take a year. That's gonna take a session, couple of sessions. So once you're clear on the objective, know, the duration of it. And then the other thing that goes into our process is, any insight that we can gather that would help. So I might ask you, have you had a recent 360 degree report that I can look at? Have you got any psychometrics that I can look at? Are there any people who you'd like me to speak to as coach to gather some feedback that will really help our journey together? So you try and get some inputs onto it as well. As regards to what each session conversation goes like, I must have had 20,000 of these over the last 30 years. There's never been two that are I mean, I'll say similar, but only very marginally similar, all completely different. Because as a coach, you are reacting to what you are hearing and what you are seeing and what you are feeling, and you're not giving advice. So they're all completely different.

What Younger David Did Not Understand

Mikulas Zach

David, tell me you've been you know, you're approaching the twenty-year-old mark with the company. so what would your younger David not understand about what you do today?

David Scott

What would my young bidet not understand? What a great question. I think younger David would have gone into a coaching assignment with a plan and of sure it would have the ground rules on and it would have the objectives but then there'd be a plan for the session. And that I think was a comfort blanket for younger David. And I remember thinking, I hope I've got enough to last the 90 minutes. Because they're paying for 90 minutes. And that's the fact, they're not paying for 90 minutes. They're paying for a business improvement. And if that business improvement takes one minute, and they genuinely get a business improvement, then you've saved them. 89 minutes and they got their improvement. So I now I go in with a blank sheet of paper. little, lots of thought and then read the notes from any notes from last time. But it's not about filling the time or filling the space. I had a coaching session on Monday and we were 10 minutes in and I asked the coach, he's a managing director of an engineering company. And I asked him a question and he said, let's just stop there today. That is the most profound thing I need to think about. just, like 10 minutes. It hadn't occurred to him, nobody had ever asked him that question before. I think something you sent me before was about, in the run up to this, you said about things where you see things that others don't, or I see things that others don't. I think coaches see things that others don't. And that carefully placed question makes the person go like, I had to hit them across the head with a... a heavy object they go whoo and if they're saying stop after 10 minutes younger David would have gone no no I've got your book for 90 I need to do something else now and it's like no you don't you don't need to do anything else it's not about time that make sense?

Mikulas Zach

No, it it does. So you now your current David looks more at the impact that the e advice will have on, you know, the client's business rather than filling out the time that he has on his contract. so I think that's That's also like very interesting that I think especially now with AI and everyone trying to produce more things, push more results, not always more is better. And I think what you just described is really important because giving ten pieces of advice it doesn't make you a better coach than giving only one that will, you know, lead to the biggest impact. because there are always things that you can improve, I think. so that's also I think a very very good skill to have is identify, you know, as a coach, what sort of things will really drive it home, if I can say it like that.

Less Is More, The Dentist Story

David Scott

Yeah, absolutely. an interesting anecdote, and I don't know if it's the same in your country, but this one gets said in England a fair bit when talking about the subject. It's like, if you went to the dentist and you were going to get a filling and the dentist said, it's 250 euros for that filling. And you said, how long does it take? And he says, a minute. you'd probably say I'm not paying $250 for a minute in which case the dentist would then say I can do it I can take longer if you like I could take an hour if you prefer it's like why would you do that and think it's that and and less is not less is definitely more in coaching definitely more I love the way you put that it's definitely more Sometimes it literally is just creating a space. I've got an example for you actually. my coach, one of the coaching courses I did to become accredited, there was a person on there who was one of the tutors. And there was quite a few people with probably about eight different languages spread across a group of about 15 people in the cohort. And this person was, the tutor was demonstrating a technique. And the person who was, mother tongue was German, was in English, then he started struggling. He said, I don't know the German struggling, not the English word. And she said, just speak German. So he carried on speaking German and she just held the space and was nodding. And then he said, he said, it came back into English and said, that was incredible. That was incredible. That was really helpful. I didn't know you spoke German. And the tutor said, I don't. So she was doing nothing other than holding a space, but showing physically like you're doing now that she was listening but she wasn't listening and interpreting or anything because she didn't understand the language. That's an extreme example I grant you but yes that space that less is more.

Mikulas Zach

Yeah, it's very similar to your example with the dentist. It's very similar here in Czech Republic where you, for example, go you know, someone washes your windows or your your car, a vacuum s does a deep cleaning of your car and he finishes an hour earlier. And a lot of the times they go like you only it it didn't take you two and a half hours It took you one and a half hour. so let me pay you twenty five percent less because you didn't take as much time and as much effort. But what people don't understand is that you know, as you were saying, spending more time doesn't really mean that it will be done better, really. so yeah.

David Scott

Mmm. It's the outcome, it? It's the outcome. In your example, is the car beautifully clean and are you happy with it? yes, well that's what you're paying for. It's the outcome, not the input.

Mikulas Zach

Hmm. Yeah. And you know, I I think that's what a lot of SMBs in general don't do well, is that they sell like directly their time. So they tell you that this will take 90 minutes and and they don't sell kind of the desired outcome as you would say it in like a B2B space sales. so it's David, what sort of advice would you give to people that are looking to get better at self reflection? Because I think you self reflected very well at the beginning where you talked about what would your younger David you know not know. So how do you go about doing self reflection yourself?

Self Reflection And Emotional Intelligence

David Scott

So there's two parts to that question. The first part is how did I learn it, I guess, which is I read a lot of books and lots of the books I read were around the subject of emotional intelligence. And depending on which book you read and which author, they're sort of, generally speaking, there's an agreement that the key pillars of emotional intelligence are self-awareness, one. self control or mastery to awareness of others three and control or mastery of others four. That's kind of the key building block. So I read a lot. I read a lot about how to self reflect, how to be self aware, how to listen to what you're saying to yourself. And I got into the habit of doing that. So after an event, anything really, whether it be a social party or a coaching session or whatever, to just stop and go, let's just reflect on that. but not judge. think taking the judgment out of reflection, going, that was awful, I did a really bad job. That's not helpful reflection. That's helpful reflection has been specific. So what did I say? What reaction did I get to what I said? What was I thinking? How was I feeling at the time? How was how I was feeling reflecting in my body language or tone? So I read a lot and I would recommend, if you're going to be in my world, despite the fact that you don't give advice, you need to be a prolific learner. Because there are so, for every book I've read, it tells me that there's another 20 I'll never get a chance to read. Because there are so many books in this space. But leadership, could build a small city out of the number of books on leadership, All varying opinions, all brilliant. So I think keep on. Keep on learning and start with books around you. Start with books around yourself. And then the second part of question is, what do I do now? We actually do training as well as coaching and we teach self-reflection. And we teach it in the context of the UK. We teach in a healthcare setting. So there is a global movement, not a Rambutan movement, a global movement that's proven the link between medical outcomes and people being kind to each other. It's called civility saves lives. So it's proven that in a hospital context, this is global data, not UK data, if there is a culture of poor behavior where people aren't speaking to each other effectively or maybe they're swearing at worst or shouting. that that causes the other person on the receiving end's cognitive ability to reduce by 61%. So you're in an operating theatre and there's a patient on the table and you're screaming at someone, swearing at them and then you ask them how many milligrams of morphine do we need? Well you've caused that person to have 61 % deficiency in their mental ability to answer that question and that is proven has caused medical problems and death, how we teach in that context is we say the first thing you need to do when you're self reflecting is notice what triggers you. So it could be at work, could be driving a car, it could be someone cuts in front of you in a car park when you thought that was your space. Notice when you're triggered and then analyze how you're feeling and you literally analyze it by saying, I've noticed I'm feeling frustrated about that other driver. And then you're realizing that if you're feeling frustrated or angry or many negative emotions, is you accepting that you have a 61 % reduction in your cognitive ability. So whether or not the other person's right or wrong to do whatever they did, if you keep that frustration, you are a lesser version of yourself until that frustration's gone. Especially if you need to do things like think, logic, clear. If you need to have a fight, it's fine. because it doesn't shut that part of the brain down. If you need to run away, that's fine too. You've got adrenaline in your system. It's designed for that. But if you're not having an actual fight or actually running away, you're impaired. So notice when that happens and then analyze the thoughts that would keep you in that state. And they're often, I refer to them as the two Achilles heels, they're often where you're applying judgment. that's just Nicholas he always does that that's a judgment so if I'm say that about you I'm gonna keep frustrating with you because I'm judging you it's either judgment or it's justification I can't believe he said that when I got up especially early today to get into the office and whenever you're doing that to yourself you hold on to the negative emotion which as we've said is impairing you. So that's an actual process that we teach en masse. We've trained, I think we're approaching 10,000 medical professionals in the UK as part of this program. yeah, it's something we're very, very hot on at Rambutan.

Civility Saves Lives

Where To Find David Scott

Mikulas Zach

So that's not a small number, David. if people would like to take the fast ticket is what I call it, what's the best place for people to reach you out, reach out to you and get in touch?

David Scott

Well, if you, if it generally is the Rambutan website, so www.rambutan.biz. If you're interested in that particular subject, there's a case study on our website that talks about that very training that I'm talking about. And there's also some podcasts about it on there and some blogs on there. So if anyone's genuinely interested in that subject, look on the Rambutan website, first call or look on the Rambutan website, find my name and click email and just ping me an email and I can send you some stuff.

Mikulas Zach

Amazing. Well, I will leave links down below on David. And thank you guys for listening. And David, thank you for sharing your insights.

David Scott

My pleasure, great to see you.