Ensuring New Leader Success (15 October 2002)

Imagine the stress and frustration of a manager with high turnover, faced with having to do more him or herself, having to train more people, having to work longer hours, and knowing that targets are looming that are looking tougher to achieve. If you’re responsible for the results of newly appointed or promoted managers, this article will provide you with some strategies for ensuring their success.

Think back to the last time you started a new job. Perhaps it was a well-earned promotion, or even joining a new organisation. Remember the excitement, the anticipation, the adrenalin?

Now ask yourself: "What do I know now that would have been really useful when I started in that role?" Your answers might include "the top priorities of the role", "my boss's expectations of me", or "who to side with to ensure my agenda gets through". The answers come easily now that you've been through it, right?

But, in case you've forgotten, the challenges for those moving into a new role, particularly a leadership role, can appear severe, and often are. You may be one of the 40% of newly appointed leaders who, as research suggests, voluntarily resign or are asked to leave within the first 18 months of their appointment. If you are, you'll no doubt agree with me when I suggest that most companies' support structures for newly appointed leaders are woefully inadequate.

Harsh call? Consider this - I recently met senior manager from one of Australia's premier stockbroking firms who had been wooed from another company at great expense. The interview process promised the opportunity to "work closely with the CEO on important strategic issues." In the first month following his appointment, he had met with his boss, the CEO, only once.

Lacking clear direction, he haphazardly decided and worked on what he thought was important. Needless to say, what the CEO thought was important was entirely different and two more months down the track, the CEO (in their second meeting) shelved the senior manager's work to date. Three months in, no runs on the board, and the frustration level on both sides was running high.

Six months later, the senior manager left the company disappointed and frustrated. The CEO, let down and pressured because results weren't being delivered, put it down to "poor performance". Sound familiar?

According to a survey of 826 Human Resources Managers by consulting firm Manchester Inc, the most common reasons why newly appointed leaders fail include failing to build partnerships and teamwork, being unclear about their boss's expectations, and lacking the required political savvy. Add to the mix the new leader's dilemma of needing to get early runs on the board versus learning how the place works, and you have a tall order indeed.

The cost of losing one of your employees is estimated to be between 1.5 and 3.5 times their salary, according to HR Consultancy MICA. That's a lot of money for someone who's not there. And that doesn't take into account the "hidden costs" of lost knowledge, flexibility or the impact on the organisation's effectiveness.

Perhaps most importantly, you can imagine the stress and frustration of a leader with high turnover faced with having to do more him or herself, having to train more people, having to work longer hours, and knowing that targets are looming that are looking tougher to achieve. Then there are the effects on the organisation's culture.

If you're responsible for the results of newly appointed managers, would you rather play the sink or swim game, or would you prefer to have a high degree of assurance that you'll get the results that you need and expect?

Many would say, "Get out of their way and let them do what we hired them to do. We pay them a premium because they've proven in their past job they can deliver." And of course, it's easier to just let them get on with things because we're all busy enough as it is, right?

This approach, while common enough, is risky business. Past success is no guarantee of future success - just ask any fund manager. The environment that your new leader is moving into will be foreign in many respects - the politics, the agendas, the priorities. How can you be sure they'll assimilate quickly and successfully?

Let me suggest an alternative approach. Take a proactive approach to managing your risk. Provide your new hires with the support they need to thrive and survive in their new role, and for you to insure your investment. After all, you don't really want to be looking for a replacement in twelve months, do you?

What does such support look like? The secret weapon in the war for talent is an effective "on-boarding" process. This process goes way beyond the standard induction process of meeting with the key people, going through procedural documents and being shown which cup is yours in the tearoom. It's a structured process that requires an investment of time up front to develop a strong foundation from which to work from. Typically the new leader, their boss, and other vested parties, play an active role, guided by a professional coach who is retained to facilitate the process and accelerate results. What are those results? A faster and better ROI, with less risk of turnover or being in damage control. The key ingredient is to have an effective Induction Coach.

One organisation that The Catalyst Group has been working with and has seen these results is Alcoa. Earlier this year, leaders within Alcoa operating units identified various scenarios where it was crucial for a newly appointed manager to get up to speed quickly and achieve early results. Working with a coach from The Catalyst Group, each of the managers engaged in the Catalyst Induction Coaching Programme that helped them clarify their goals and priorities, map the political territory that they were operating in and develop a strategic approach to their success.

The managers set milestone goals, which they reviewed along the way with their coach. This complete process allowed each of the managers to feel as though they were making progress, and enabled them to stay focused, rather than become overwhelmed by information and politics. Their discussions with their own bosses were productive and strategic, rather than fire fighting after the fact, because their priorities were made clear.

Newly hired leaders need ongoing support. To expect them to do it on their own is risky. Training courses help, but the real learning comes on-the-job, and often the learning is around the subtleties of the role and the environment in which it exists. Having an effective on-boarding process maximises your return while minimising your risk.

As mentoring authority Howard Hendricks says, "There is nothing more common than unfulfilled potential". So when you're looking to promote or hire a new leader, and it's critical that they succeed, consider what else you should do to ensure that they can.

by Digby Scott

© The Catalyst Group 2002

The Catalyst Group works with organisations to ensure that their newly appointed leaders have the greatest chance of success. We provide Induction Coaching services, as well as consultancy services to help our clients develop their own on-boarding processes. Call us on +61 8 9385 0888 or visit www.thecatalystgroup.com.au

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