Onboarding Leaders

© Merryck & Co 2012

Onboarding LeadersMitigating risk, accelerating performance for external leadership hires

HRPS Strategic Talent Management ForumOctober 22, 2012

© Merryck & Co 2012 2

Welcome

The Context

The Challenge

The Discussion

Q&A

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The Context

ExCo Executives in the Fortune 500 and S&P 500 1990 2010

Promotions since entering workforce 1 11.4 7.1

Years per role (pre-ExCo) 1 3.6 4.4

Companies per career 1, 2 2.1 5.3

Revenue under management 1,3 $123 MM $1.3 B

CEOs promoted from within 4 62% 77%

Connections/relationships to manage 1,5 ~20 ~50-70

1) Merryck & Co data 1998-20122) WSJ July 6 2010, Joanne S Lublin, “CEO Tenure, stock gains often go hand in hand”3) Merryck & Co data 1998-2012; CNNMoney.com, Fortune 500 Statistics4) SpencerStuart 2010 CEO Transitions, March 20115) Merryck & Co data, 1998-2012; Booz & Company 2010 10-yr CEO Succession Study Retrospective

The scope and stakes of business leadership have increased by an order of magnitude.

© Merryck & Co 2012

The ContextN

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Great leaders create much higher net income.

($1.2MM)

$2.4MM

$4.5MM

Bottom 10% Middle 80% Top 10%Poor Leaders Good Leaders Great Leaders

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Zenger, Folkman, Edinger, “How Extraordinary Leaders Double Profits”, Zenger-Folkman, Inc., 2010


The Challenge

The complexity of upper echelon jobs increases exponentially, whereas a leader‘s development happens Incrementally.

The nature of dynamic problems defies predictable patterns of coaching or training.

• Traditional leader development is based in case studies and scenarios – useful, but predictable

• At $B-level, the primary “predictable” is unpredictability

• $B leaders need to anticipate, consider and react from a VUCA perspective

The next generation of leader development will empower those with the most influence to respond with greatest perspective, understanding and impact.

Traditional leader development happens at a different pace than the VUCA nature of top job demands.


The Challenge

Leadership is a mindset, not a skillset.

• A top executive’s year is defined by 8-10 problems that:

• No one could anticipate– and the leader could not have been “trained” for

• Require quick, decisive responses

• Will require multiple levels of near-simultaneous relationship management

• Integration to a new organization adds an additional layer of ambiguity and complexity to that baseline challenge.

“When a new leader comes in with fresh thinking, we’ll say to him, ‘That’s a really great idea!’ Then he’ll leave the room and we’ll say to each other, ‘Who does he think

he is?’.” – EVP HR, $30B financial services organization


The Challenge

The stakes have increased by an order of magnitude in one generation…and the needle continues to point up.

No standard training exists to prepare for today’s top roles…the magnitude of the job is bigger than any one executive.

Few top execs want training anyway – they are smart, accomplished, savvy…they need an increased capacity -- a means to draw upon a greater depth of experiences than they have personally faced.

The situation in a nutshell:External hires face the steepest learning curve of all – they must fast-track into a culture as well as a role.


The Conversation

The right integration of an external leader increases Leadership MagnitudeTM at the same time it ensures effective retention.

Leadership MagnitudeTM expands perspective, influence and impact across the full reach of an organization.

Executive

Handling unprecedented complexity, pace and volatility

Company

Effecting change throughout the chain of management – from BoD to shop floor

Marketplace

Expanding influence throughout investor, customer, supplier and partner relationships


Conclusion

In a VUCA world, every company faces increasing pressures to ensure external leaders join, stay, and fast-track their contributions.

Complexity, stakes and relationships have grown by orders of magnitude – we need to foster a complementary growth in Leadership MagnitudeTM.

For external hires, it’s not enough to have an onboarding plan. There must be a parallel integration plan that ensures the leader’s ability to create meaningful impact.

1. 2. 3.


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Conclusion

Everything I got from my Merryck mentor I could have learned on my own...if I could have lasted long enough in the job

to learn it.– Current client, PE-owned company, June 2012


Who is Merryck?

Over 15 years, Merryck has become the proven global vehicle for delivering Leadership Magnitude

TM

Has run a $750MM - $120B P&L

Is chosen for ability to identify strengths, and define and help develop the blind side

Mentoring 1-on-1 with a former C-level executive who:

Is trained in-depth to support with questions and perspective —not to take on the job

Is up to speed on the company’s issues and the executive’s dynamic role


For further discussion:

David Reimer, Chief Executive Officer

[email protected]

1-888-MERRYCK

www.merryck.com

Documents

Onboarding Leaders