NEWS

WIRES

OTHER

Stumbling at the Top: Why Do Promoted Executives Fail?

While RHR International's groundbreaking research on Executive Integration has allowed the firm to help clients reduce failure rates for externally hired executives from 40% to less than 10%, studies suggest that leaders promoted or transferred into new roles within the same company still fail 25% of the time. The purpose of RHR's most recent research study was to pinpoint key challenges and develop strategies to increase the likelihood of success for these individuals.

Key Findings

"What is most surprising about the data is not just how many leaders were struggling, but how long they were struggling in a new role. Well past the time we would have expected them to have integrated into their new position," said Dr. Schalm. "At the 10-month mark, up to 40% are finding the transition a challenge; 20% rate it a downright disappointment."

Analysis of the data shows that five reasons seem to dominate:

• A coherent understanding of the role, how it interfaces with others in the organization, and the expectations of one's boss and others takes too long to resolve.
• The importance of re-contracting relationships, establishing influential alliances with peers, and reinforcing one's credibility with others in the new role is overlooked.
• Recognizing one's development gaps vis-à-vis operating at a new level of leadership occurs too late.
• Assumptions run rampant on all sides, interfering with open, candid dialogue and thereby decelerating the integration timeline.
• A new position is over-interpreted by the leader as an unqualified vote of confidence, leading to an unwarranted level of over-confidence and optimism. Problems and issues are dismissed too quickly and allowed to fester, leading to frustration, disillusionment and derailment.

Six Success Factors

Organizations should apply the same rigorous approach to managing their internal succession as they do their external recruitment and hiring. RHR International's research identified Six Key Success Factors that provide a road map for organizations to more effectively manage internal transition, get leaders up to speed more quickly, and reduce the likelihood of failure.

1. Role Clarity and Alignment

2. Re-contracting and Building Relationships

3. Adapting to a Sub-Culture

4. Early Wins

5. Accelerated Learning

6. Targeted Development

Methodology

In-depth interviews were conducted with 150 leaders from 59 different organizations located on 3 continents. Multiple levels and functions were represented, with 35% coming from the CEO, Executive Vice President, Senior Vice President ranks and 38% from the Vice President ranks. Sixty-nine percent of those surveyed were in a new role due to a promotion. Participants ranged from 1 day to 36 months in role. Thirty-one percent were female; no gender differences in the quantitative data were reported.

For more information, please contact Dr. Schalm at rschalm@rhrinternational.com or download the complete research summary report: "Stumbling at the Top: The Challenge and Complexity of Internal Leadership Transitions."

ABOUT RHR INTERNATIONAL

We are a firm of management psychologists and consultants who work closely with top management to accelerate individual, team and business performance. We focus on five key areas of client need - Executive Selection and Integration, Accelerated Executive Effectiveness, Senior Team Effectiveness, Management Due Diligence and CEO Succession. We have been proven difference-makers for more than 65 years, unique in our combination of top management focus, psychologists' perspective and high-level business acumen.

RHR International has offices in Belgium, Brazil, Canada, China, France, Germany, Italy, Switzerland, United Kingdom and United States. The company is headquartered in Chicago, Ill. For more information, please visit our Web site at www.rhrinternational.com.

RHR International
Jeff Durocher, 630-766-7007