Buying Success Insurance

4. So, what can a CEO do to ensure that this misguided thinking and resulting failure don’t take place?

a. Be aware of the problem and its enormous cost to the organization. Treat it like any other $2.7 risk to the company.

b. Buy insurance…some form of on-boarding process.Hire a coach who's worked with executive on-boarding before. It's the best investment (and cheapest) to insure the risk

c. Engage Human Resources. HR should not just in hiring executives, but also make sure there’s an orientation/on-boarding process in place before executives arrive. Oftentimes, it’s up to the individual business sector, executive assistant, or worse yet no one to set up a comprehensive organizational introduction. In fact, many executives are merely introduced at a working meeting or executive conference. That’s the extent of on-boarding before such new executives are asked to dive into often heated and contentious negotiations without any background or cultural lay of the land.

Next Post...watch for more that the CEO do ensure the success of a new executive.

You're Both Wrong!

This is the third of a number of posts about on-boarding for executives:

3. Who is at fault for this failure rate?

a. The company or organization thinks: We invested a lot in this executive. He or she will figure out what has to be done.

b. Incoming new executives think: I’ve done this before; I’m smart enough to figure it out. What got me here will get me to the next level. Everyone wants to see some immediate results.

c. WRONG! A pox on both houses.

(This Q&A appeared in CEO Magazine in June, 2009)

The Cost of On-Boarding if NOT Done Right

This is the second of a number of posts about on-boarding for executives:

2. What are the stats regarding such on-boarding when it goes bad?

a. In his book, The First 90 Days, Michael Watkins of the Harvard Business School states the blunt, disturbing truth: “Studies have found that more than 40-50% of senior outside hires fail to achieve desired results. Estimates of the direct and indirect costs to a company of a failed executive-level hire range as high as $2.7 million.”

b. In my experience as an executive coach, I’ve watched new executives come in like a freight train, turn the place upside down and take down walls before they know which ones are load bearing and which are merely cosmetic. Typically, their “death spiral” begins very early on and can take as little as a year and sometimes two for them to finally be ejected as a threatening organism to the tribe. Peers, subordinates, and even the very bosses who hired them will foment or back such a rejection—directly or indirectly.

On-Board Coaching Starts Here

On-boarding is a critical issue for executives matriculating from other companies. Because the failure rate is so high (40-50% within two years), it's an important topic for all companies. This week and next will be devoted to this topic of executive coaching.

This is the first of a number of posts about on-boarding for executives


1.What does on-boarding mean, relative to new executives?

a. Whenever you bring a new executive (or anyone for that matter) into a company, it’s as if he or she were entering into a tribe. Such tribes (companies and organizations) all have a distinct culture and hierarchy, both official and, more importantly, unofficial. I sometimes describe culture as the organizational unwritten attitudes, behaviors and rules that are strictly enforced.

b. As a new executive comes onboard and enters into the corporate culture and power structure, the entire organization tries to figure out, very quickly, if this new person will be a threat or an asset.

c. The time frame for critical decisions (threat vs. asset) by the organization varies but the first 6 months (especially the first 3 months) are the most important. If executives are brought on board in a thoughtful, concerted way, they have a much better chance for success.

Ken Blanchard Praises Transparent Leader

This is the final post regarding The Transparent Leader:

Ken Blanchard, national bestselling leadership author, has just endorsed my newest book, The Transparent Leader, focused on the success of women:

“Steve Gladis knows that honest and open communication between people is the key to successful working relationships. The Transparent Leader is a story about how simple it can be to improve your leadership style by learning to listen to, trust, and open up truthfully to those around you at every level. Read this book and be a better leader!”
- Ken Blanchard, coauthor of The One Minute Manager® and Leading at a Higher Level

The Transparent Leader

This the first of several postings this week regarding my new, just-released book: The Transparent Leader: Clear and Effective Leadership Communication.

Written as a business leadership fable, The Transparent Leader is the story of a smart emerging leader, Stephanie Marcus, as she navigates the challenging world of business. Fortunately, she meets Lou Donaldson, who acts as a friend, informal coach, and mentor as he guides Steph through the complicated business ecosystem in which she finds herself. Throughout the story, Steph learns about clear leadership communication as she also adapts and changes and becomes a more transparent—clear and open—leader. At the same time, she learns Lou’s personal story, which helps her fully appreciate his wisdom. An especially good read for women in leadership positions.

Create a Culture of Candor

This the third and FINAL of several postings this week regarding the June issue of the Harvard Business Review.

What’s Needed Next: A Culture of Candor by James O’Toole and Warren Bennis (HBR June, 2008, 54-61)

According to the authors, in particular Warren Bennis, who is a world-class mind and Professor at USC, candor in organizations has always been and will be critical to those very organizations themselves. The authors say in a sidebar: Why Good People Do Bad Things: “….ethical problems in organizations originate not with a “few bad apples” but with the “barrel makers”—the leaders who, wittingly or not, create and maintain the systems in which participants are encouraged to do wrong.”

Their advice is simple and straight forward:

--Tell the truth. Leaders must tell people what they need to hear, not what they want to hear. A record of candor is the only standard.

--Encourage people to speak truth to power. Leaders must create systems that allow people to tell the truth without retribution, or no one will tell you when your pants are on fire!

--Reward Contrarians: Listen to all sides. Don’t dismiss people’s value just because they don’t agree and thank them.

--Practice having unpleasant conversations. Getting good at having truthful, respectful conversations that leave people undamaged is a skill that’s only learned by practice.

--Admit your mistakes. Give people permission to be human—just like you are.

--Build organizational support for transparency. Protect people who tell the truth (not only whistleblowers) but create a culture of candor.

--Set information free: Become a transparent organization and give everyone the data…unless there’s some compelling reason not to. Remember: The truth shall set you free!