THE IMPORTANCE OF CREATING EXECUTIVE INTEGRATION
Overview
Successful business executives know that setting a company's strategic direction is critical for business success. However, setting the direction is only the beginning; implementing strategies and focused programs to reach the goals are even more critical. The same holds true when a new member of the management team joins a company. Recruiting and the decision to hire are obviously important, but ensuring a good fit and success within the company are the strategies that deliver the greatest value.
Companies that do not provide targeted, measurable processes for acclimating the new executive can be surprised at the negative effects: loss of team focus during the transition, communication failure due to misaligned expectations, and the costs of missing key market opportunities as the management team focuses inward to address issues that arise related to the new executive.
The financial impact can be huge. Estimates put the first-year direct and indirect costs of a senior leader at over $750,000...an investment that vanishes if the new hire leaves within the first 12-18 months1. With historical rate of executive failures to be estimated as high as 50%2, the cost of failure is significant.
Why do new top-level hires fail?
- Difference of key skill sets and experiences between existing leaders and the new hire.
Often, new executives are hired to extend the company's capabilities and help define new strategic directions. But hiring for these skill sets in an organization that does not share these core competencies often creates friction. As a result, the change agent who was hired to facilitate the organizational transition is unable to create the relationships required to contribute to the success of the company. - Difference in working style.
The working relationship between the team and the executive are critical to meeting both operational and strategic goals. When differences are not managed and brought into alignment through a coaching and communication process, small differences in style can create big problems throughout the organization. As a result, the team loses momentum and a shared vision; the disruptions contribute to loss of morale and lack of staff retention within the team. - Lack of attention to cultural norms.
Each organization has a unique culture that represents the values, processes and styles of the business. Without an in-depth understanding of the culture, a new hire can easily fall into a trap of "we don't do things that way" that erodes confidence and trust. Whether the culture is in need of re-alignment or is a centerpiece of productivity, a new executive who is not guided in understanding the culture is unable to thrive within it. - Lack of clearly defined success factors.
By articulating the key areas where success is critical, hiring executives and newly placed leaders can agree to measurements of success for the role. Keeping the focus of the work on achieving the defined goals helps new executives and the leadership team make decisions that contribute to achieving these goals. Issues of skills, working style, and culture may be managed more readily if the new executive demonstrates success in meeting goals early in the process.
How can newly placed leaders succeed?
LLS Consulting addresses these needs with the Program for Executive Excellence, a custom program specifically designed to address these risks and facilitate the success of new executive hires.
1 Development Dimensions International (DDI), Executive Resource Management White Paper
2 ibid
3 Peter Cappelli, “A Market-Driven Approach to Retaining Talent,” Harvard Business Review, 78 (2000), p. 104
4 Corporate Leadership Council, “Integration and Assimilation of Mid-Career Hires,” December 2001
