Not Just Another Hire
Replacement of a senior executive is a common, but disruptive, process in many organizations. However, it is usually approached as a "recruit and select" problem, an approach which not only often fails, but misses an opportunity for significant positive change across the organization.
Our Analysis:
A leadership transition is a pivotal moment - an opportunity for transformation.
In 2000, an article in the Harvard Business Review cited an 80% failure rate of newly-hired executives – a huge loss in any organization but especially significant in the non-profit and small business sectors, where large numbers of idealistic and creative boomer-founders are preparing to retire.
The Center for Creative Leadership (1996) cites the top three reasons for failure of the new executive as being: failure to build relationships, lack of clarity in the role, and culture fit challenges. All sources identify executive transition as a risk for the organization.
Tim Wolfred, founder of CompassPoint's Executive Transitions program and an interim executive director sixteen times, points out that the basic problem he sees is that too often, boards push ahead with a typical hiring process.
Our Approach:
We focus on minimizing risk, leveraging the opportunity for innovation and renewing Board/employee commitment.
It contains these critical success factors:
- Organization readiness, transition, and innovation
- Board consensus on key leadership challenges
- Strategic context for the organization and its leadership
- Competency based profile/selection criteria, including culture fit
- Key stakeholder and employee engagement
- Leadership team development
- Retiring executive closure and "new" executive integration