New Leader Integration:

Improving the Odds of Success

Sterling Price, Managing DirectorCBIZ Human Resources Outsourcing & Consulting

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?

By identifying and addressing:

Company culture

The unspoken rules

Communication pathways

Informal power structure

How Does This Happen?

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?

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”

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?

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?

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

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?

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

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

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

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

Other stakeholders who might be interviewed include:

Key customers

Key supplier executives

Key donors

Board of Trustees

Alumni association

Other Potential Interviews

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

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

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

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

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

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

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: sprice@cbiz.com

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