Bringing on new talent at the executive level has significant risks. Turnover, poor results, and change management challenges can cause significant disruption and, at times, the departure of the new executive. A classic Harvard Business School study found that outsiders often destroy value when the company is doing well. This finding fits with other studies that have shown outsiders are paid more, perform worse, and have higher exit rates.
There is a fine line between hiring someone with an external perspective that adds value and someone who disrupts the organization’s effectiveness. The risks of a new hire unintentionally destroying value are mitigated with a customized onboarding program that emphasizes culture, strategic capabilities, and relationship building.
FIVE KEYS:
Soak in the Culture
Find ways to connect the executive with long-term employees from a variety of functions and levels. Allow the executive to hear stories about their connections to the mission and learn why things are the way they are. Investing in team building with the leadership team and sharing artifacts, customer stories, failures, and triumphs all help new leaders see the uniqueness of their new environment. Provide a culture carrier to mentor and coach.
Clarify Expectations
When we do calibration calls for executive assessments, we ask what a good first year looks like. Is it relationship-building or an overhaul of a function? People naturally want to prove themselves and add value. Shared expectations are a must as research implies that new leaders focus on change without recognizing the high risk of destroying value. There is a bias towards thinking that change will be effective.
Dive Deeply into Best Practices
Often, new leaders focus on what is unusual or not working. We recommend great curiosity to understand the origin, history, and whys of practices. An unusual organizational structure or performance process may be a clue to a competitive advantage that could just as easily be destroyed as improved. A reverse mentor with longevity and excellent technical skills can be invaluable.
Build Real Relationships
Relationships are critical to fitting in and decoding the organization’s norms about how work actually gets done. Understanding where silos exist and don’t exist can be accomplished by taking the time to build genuine relationships with peers and stakeholders. A common mistake is to save relationship building for after one has a handle on the business. A personal board of directors can provide ongoing consistent feedback.
Know Why You Were Hired
Although seemingly trite or obvious, there are likely internal candidates who were not ready for the job. Understand what perspective, knowledge, or experience attracted the organization to you and intentionally build a reputation based on delivering that. Repeatedly stating this is how we did it at company Z is a mistake, but providing a clear picture about elevating an already solid data strategy can build credibility and focus.
Can’t wait to read the full Newsletter? Click here to see the whole Newsletter at once!
