Depending on the source, 40% to 60% of executive hires fail in the first 6-12 months on the job. It has been said that the failure and departure of a newly placed executive can cost between two and three times the executive’s annual salary. For every leader that fails, there are many others who survive but never realize their potential. Implementing an executive on-boarding program is critical to the successful integration, retention and performance of new leaders.
Effective executive on-boarding programs have certain common denominators. They tend to be long-term (up to 12 months). They provide multiple sources of support (internal and external). They are customized to the individual and often provide coaching resources to shore up development areas that surfaced during the selection process. Key stakeholders are identified and held accountable for creating and implementing a clear plan to integrate the newly hired executive within the organization. During the on-boarding period, an individual plan for growth and performance is developed, deliverables are jointly defined for the first three months, and ongoing feedback is given so that course correction is possible. New executives are also placed on cross-functional teams to gain strategic perspective.
Emphasis is placed on helping the new executive understand the history and culture of the organization, assessing the current state of things, building relationships and pursuing easy wins during the first three months versus putting a “stake in the ground” by driving major change. Often a mentor is assigned to the new leader to support the on-boarding process and learning plan, identify or develop structured networking activities, and assist the newly hired executive in navigating the cultural and political landscape of the organization.
Hiring managers play a key role in the successful on-boarding of executives. This includes delivering proactive communication – messages that address underlying emotions and help to create buy-in among internal employees who will be directly impacted by the hire – and minimizing surprises to eliminate potential distrust toward and avoidance of the new hire. They should facilitate relationship-building with established team members. They should create and articulate clear role definition for team members to avoid confusion, overlap, and turf wars.
New executives should also create a plan to facilitate success during on-boarding and discuss it with hiring managers. Plan components may include:
1. Assessment of Current Situation – Stakeholder meetings; team / employee meetings; business or function and team assessment; short-term and long-term objectives; early wins
2. Accelerated Learning Plan – Cultural dynamics; industry knowledge; technical Knowledge or skills; transition to the next level of leadership
3. Alignment Strategy – Goals and timelines; communication plan; team member role clarification
4. Followership – Team-building; on-going stakeholder relations
5. Corporate Championship – Identification and relationship-building
Given that many executives fail in their new roles, we believe that executive on-boarding is an essential process to avoid unnecessary anxiety and cost, and to facilitate the successful integration, retention and performance of new leaders.