sterling price, managing director cbiz human resources outsourcing & consulting
TRANSCRIPT
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New Leader Integration:
Improving the Odds of Success
Sterling Price, Managing DirectorCBIZ Human Resources Outsourcing & Consulting
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It is a process to enhance the probability of success for a new leader
It is designed to shorten the time it takes for a new leader to make a meaningful contribution to their organization
What is New Leader Integration?
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By identifying and addressing:
Company culture
The unspoken rules
Communication pathways
Informal power structure
How Does This Happen?
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Institute of Executive Development Study
320 executive participants in 18 industries
Time for new leaders to become productive: 6 – 9 months
30% of respondents said it took over 9 months
Over 30% of new leaders from the outside failed within the first two years
Over 20% of new leaders from inside the company failed to meet expectations within two years
Why is the New Leader Integration Process Needed?
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Interviewed 210 CEO’s and Presidents:
Failure rate of outside executives: 40% – 50%
First three months largely determined ultimate success or failure of the new leader
6.2 months before a new leader is contributing more value than he/she is using
Michael Watkins – Harvard Business SchoolAuthor of “The First 90 Days”
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Study done by a leading HR consultant, Brad Smart:
Approximate cost of new executive failure is equal to 24 times their base salary
Factors include:1. Lost productivity of work team2. Search fees3. Base salaries4. Relocation expenses5. Signing bonuses6. Stock options7. Other bonuses
What Does this Cost an Organization?
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New blood/new ideas
Candidate has a history of success
They bring different experiences to the table
Don’t have on organizational blinders
Don’t have preconceived notions about people, operations or structures
Why Do Companies Hire Outside Executives?
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Not familiar with organizational structure, informal networks of information and communication
Not familiar with the corporate culture
Not known within the company and therefore do not have established, trusting relationships
Barriers to Outside Hires
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Shorten the time for a new leader to contribute
Avoid costly, career limiting mistakes
Minimize staff turnover and productivity declines due to leader change
Accelerate team development between new leader and direct reports
Sustain new leader’s early success over time
What is the Value of the New Leader Integration Process?
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Ideally the process begins prior to the new leader’s start date:
1. Interview stake holders: Boss (or Board of Directors) Peers Direct reports
2. Documentation of data
3. Debriefing with new leader
4. Kickoff meeting with direct reports
5. Follow up:30 days60 days90 days
Process Overview
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Organization’s culture
Boss’s values
Leadership traits he/she values
Current state of the business
Communication requirements
How performance will be measured
Deal breakers
Specific projects that require attention
Boss or Board Interview
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Organization’s culture
Where new leader should focus
How boss likes to be communicated with
What decisions boss likes to be involved in
How/when new leader should interact with them
What are the deal breakers in this company?
Peer Group Interviews
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Organization’s culture
What’s working
What’s not working
Where should the new leader focus be
Expectations of new leader
What should new leader know about you
What do you want to know about new leader
Direct Report Interviews
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Other stakeholders who might be interviewed include:
Key customers
Key supplier executives
Key donors
Board of Trustees
Alumni association
Other Potential Interviews
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The data collected in all the interviews are consolidated into a report for the new leader
The information is put together by interview group so the new leader can easily process it
The report is not shared with anyone but the new leader
Documentation
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Share the information collected in the interviews
Compare & contrast the data
Identify areas of concern that will require extra attention
Prepare for the direct report meeting
New Leader Debriefing
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Facilitator provides process overview
Facilitator introduces new leader
New leader’s opening remarks
New leader addresses questions, and concerns discovered during interviews
New leader and direct reports interact – questions and dialogue
New leader’s moving forward message
Closing remarks
Direct Report Meeting
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Depending upon who brought the facilitator into the organization, follow up may be appropriate
Provide basic information about how the process went
No confidential information is shared
Provide closure for the stakeholder
Stakeholder Follow Up
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New leader follow up is important
Ideally, these meetings take place 30, 60 and 90 days after the direct report meeting
Coaching centers around: Information from one-to-one meetings
Addressing the critical issues identified in the interviews
When reality differs from expectations What adjustments need to be made
Coaching Follow Up
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The time frames provided below are approximations, depending upon the number of interviews required
Interviews 2 – 3 daysDocumentation 1 – 2 dayLeader Debriefing 1 dayDirect Report Meeting .5 days30 day Follow Up .5 days60 day Follow Up .5 days90 Follow Up .5 days
Time Table
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Sterling PriceManaging DirectorHuman Resources Outsourcing & ConsultingCBIZ Human Capital Services
One CityPlace Drive, Ste. 570 St. Louis, MO 63141Direct: (314) 692-5863 | Cell: (636) 699-6641Email: [email protected]
Contact Information